SPECIAL MAPIC EDITION High street retail
Retail investment volumes
MAPIC guide
11-18
WWW.WBJ.PL
8 pages of real estate news and analysis
VOLUME 19, NUMBER 44 • NOVEMBER 12-17, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
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Big deals
Knock-out punch? Foodcare’s brands, including the Black energy drink, have been seized
Since 1994 . Poland’s only business weekly in English
Investment volume in Polish retail centers has reached €1 bln this year and has surpassed the value of office deals 11, 15
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Plus: • PMI up again • Un-British Poland • Coal mining woes • Kraków Olympics? • Putin enjoys victory • Interest rates on hold • Government reshuffle • Treasury takes control • Pension reform illegal?
In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Finance & Economics . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . . . . .10 Lokale Immobilia . . . . . . . . . .11-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Sports . . . . . . . . . . . . . . . . . . . . . . .22 Lifestyle . . . . . . . . . . . . . . . . . . . . .23
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Business . . . . . . . . . . . . . . . . . . . .6-8
Snooping and schmoozing Energa surge While in Warsaw last week to talk spying and security, John Kerry looked to polish the US’s image 4
The IPO of Poland’s thirdlargest utility will take place by year-end
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NEWS
www.wbj.pl
IN THE SPOTLIGHT
Numbers in the News
The legality of the pension reform plan
The European Commission announced last week that it has launched an in-depth audit of the z∏.804 million state financial aid granted to LOT Polish Airlines. The EC will check if the aid will help LOT become viable without future public financing and will examine the company’s own input into the restructuring.
NATO Secretary General Anders Fogh Rasmussen visited Poland on the occasion of the Steadfast Jazz exercises. Polish President Bronis∏aw Komorowski stressed that Steadfast Jazz was one of NATO’s most important training exercises and that Poland was happy to host it alongside the Baltic States. Over 30 countries are involved in the exercise, including 28 NATO members as well as Finland, Sweden and Ukraine. Some 6,000 troops are involved in the training, including 3,000 soldiers from Poland. ●
85 is how many companies were declared bankrupt in October, according to Euler Hermes.
53.4 was Poland’s manufacturing PMI score for October, higher than expected.
Quote of the Week “There wasn’t a single year when I did not think about leaving the post [of Finance Minister].” Jacek Rostowski on his tenure as finance minister, as quoted by Gazeta Wyborcza last week. With a cabinet reshuffle billed for later this month, rumor has it Mr Rostowski could be one of the ministers to go.
Figures in focus FDI leaders Top 10 countries of FDI inflow to Poland (for 2012, in € millions) 3,500 3,000 2,500 2,000 1,500 1,000 500
Event:
Web:
The Belgian Days are organized by the Belgian Business Chamber together with the Embassy of Belgium in Warsaw and the Economic Representations of Brussels, Flanders and Wallonia. They feature both cultural and business events in two Polish cities. Warsaw and Poznaƒ belgium.pl
11-22 WARSAW CLIMATE CHANGE CONFERENCE Event:
Location: Web:
The 19th session of the Conference of the Parties to the UNFCCC and the 9th session of the Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol. National Stadium, Warsaw unfccc.int
13-15 MAPIC
Web:
This leading international retail property event delivers three days of meetings, expert-led conferences and an exhibition for industry leaders targeting all types of retail property. Palais de Festivals, Cannes, France mapic.com
16
WARSAW DEBATES
Event:
The Warsaw Debates will tackle political, economic, cultural and academic topics. Esteemed guests from Poland and France, including Polish ministers of labor, environ-
Event:
Location:
Location: Web:
ment and treasury, MPs and MEPs from both countries and several others will discuss important matters. Royal Castle, Warsaw ccifp.pl
Akron Investment
THE SUSTAINABLE INNOVATION FORUM
Alior Bank....................................................8
Event:
For the fourth year running the forum brings together leaders from business, government, finance and NGOs to discuss innovation, accelerating green growth and sustainable development. InterContinental Hotel Warsaw climateactionprogramme.org
Allianz Real Estate ..............................11, 15
28-29 ADMINISTRATIVE DIRECTORS FORUM Event:
Location: Web:
This conference addresses many administrative issues, including efficient car-fleet management, purchases and logistics, document management systems, innovative IT solutions and cost-optimization. Novotel Warsaw Airport wydarzenia.nf.pl
DECEMBER 3-4 NEW EUROPE GRI 2013 Event:
Location: Web:
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NATO chief in Poland for Baltic exercises
Beata Socha
is Poland’s unemployment rate, according to Eurostat methodology. According to the methodology of Polish statistics office GUS, the unemployment rate is 13%.
Un
Polish financial group Getin Holding has signed an agreement to acquire 100% in Romanian International Bank (RIB). The value of the deal has not been disclosed. The takeover is subject to approval from several entities, including Romania’s financial supervisory authority. RIB will be the fifth foreign bank in the Getin Holding group.
non-state property from legal entities and transferring it to a state organizational unit, and therefore is classic expropriation.” Polish law only allows such expropriation when an important public purpose is at stake or appropriate restitution is provided in return. “The government argues that the assets held in OFEs are not the property of OFE members,” said Ma∏gorzata Surdek, partner at CMS Cameron McKenna legal firm. “Even if OFEs are privately managed, the contributions they get from
10.4%
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Getin Holding buys Romanian lender
The government’s controversial pension system reform proposals, set to be implemented in 2014, may be illegal, experts – and even government lawyers – point out. The crux of the matter is whether the planned transfer of 51.5 percent of the assets held in private pension funds (OFEs) to the state-run social insurance institution (ZUS) constitutes expropriation of private assets. According to the State Treasury’s Solicitors Office, the reform “entails taking away
is where the budget deficit stood in October after jumping from z∏.29.6 billion in September due to debt-service payments.
Ge
Poland’s lower house of parliament rejected a proposal to hold a referendum regarding the minimum school age. The two coalition parties took a stance against the referendum, while all opposition parties voted in favor. The motion had been put forward by an NGO against lowering the obligatory school age from 7 to 6 years old. The reform is being gradually implemented after a reform adopted in 2009.
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Sejm rejects education referendum
pensioners are mandatory dues, just like tax, and are thus public money.” But European jurisprudence begs to differ. “The European Court of Justice has previously ruled that any assets transferred from the public sector to a private entity, such as OFE, lose their public status and become private assets, unless the state had stipulated the return of these assets,” Ms Surdek explained. Despite the reforms’ dubious legality, the government is holding firm. “It’s simply a necessity,” National Bank of Poland president Marek Belka told the Polish Press Agency. “We need to be aware that without these changes budget policy would have to undergo dramatic changes in the next few years.” Unsurprisingly, the Prime Minister’s Economic Council has also voiced its support for the reform. However, the head of the Council, Jan Krzysztof Bielecki, stressed that their recommendation is based only on economics, and does not take legality into account. But if international funds which have invested in OFEs demand compensation for the assets transferred to the public system, the reforms may not even be economically sound. According to Ms Surdek, such demands could result in the state paying out hundreds of millions in damages.
z∏.40 billion
Fra
State aid for LOT under EC scrutiny
NOVEMBER 12-17, 2013
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The 9th annual New Europe GRI will bring together board- and C-level real estate investors, developers and lenders active in CEE. They will discuss the region’s challenges and opportunities in the sector. Hyatt Regency hotel, Warsaw globalrealestate.org/NewEuropeGRI
LOT ..............................................................2 Markit Economics ......................................9 Maspex ........................................................8
Atrium European Real Estate ............11, 15 Millward Brown ........................................13 Banco Espirito Santo ..................................8 Noble Securities........................................19 Blackstone ................................................15 Nordea Bank ..............................................9 BOÂ ..............................................................8 BofA Merrill Lynch ......................................8 Pan European Core Fund..........................17 Bogdanka ..................................................19 Panattoni Europe ......................................16 BRE Bank ....................................................8 PGE ..............................................................6 Bulanda Mucha Architekci........................13 CBRE........................................11, 15, 17, 18 PKO BP ........................................................8 Citi Handlowy ........................................8, 19 PKO TFI......................................................17 CMS Cameron McKenna ............................2 PKP Cargo ..................................................8 Colliers ......................................................14 Deka-Immobilien Global ..........................11 Polimex-Mostostal ....................................17 Energa ........................................................8 Polish Defense Holding ..............................6 Euler Hermes ..............................................2 Polskie LNG ................................................6 First Property Group ....................11, 13, 15 Foodcare ......................................................8 Roland Berger ............................................6 Futureal Management Poland..................15 Scala IRP Capital Partners Poland ..........11 Getin Holding ..............................................2 Skanska ....................................................11 HSBC ..........................................................9 Huta Stalowa Wola ......................................6 Smyk ..........................................................13 Inter IKEA ............................................11, 15 Tristan Capital Partners............................15 Invesco Group ......................................11, 15
Twitter ........................................................19
Ipopema Securities ....................................8 Jones Lang LaSalle ................11, 13, 15, 16 UBS Investment Bank ................................8 JP Morgan ..................................................8 UniCredit......................................................8 Katowicki Holding W´glowy ........................6
Vantage Development ..............................16
Kompania W´glowa ....................................6 LHI Leasing ..............................................13
Warsaw Stock Exchange ......................8, 19
London & Cambridge................................15 X-Trade Brokers ........................................19
4
NEWS
www.wbj.pl
NOVEMBER 12-17, 2013
Heads to roll this fall Prime Minister Donald Tusk can wait no longer – a cabinet reshuffle will go ahead before the end of November Changes are afoot in the cabinet of Prime Minister Donald Tusk, with the government shakeup billed to take place after the ruling Civic Platform’s (PO) national convention planned for November 23. The cabinet reshuffle will see winners and losers, with the occasion generally seen as a litmus test as to who manages to remain in favor with the PM, and those who are in the doghouse. This time will be no different, with ministerial names already being cast into one group or another.
Out with the old, in with the new According to sources quoted by Polish Radio last week, a number of ministers can expect to retain their posts, among them Treasury Minister W∏odzimierz Karpiƒski, Transport Minister S∏awomir Nowak, as well as Foreign Minister Rados∏aw Sikorski. On the other hand, pundits expect Health Minister Bartosz Ar∏ukowicz to be sacked, with odds on that the education and sport ministers, Krystyna Szumilas and Joanna Mucha respectively, will also get the boot. Jacek Rostowski, who has been finance minister since Civic Platform came into power in 2007 and who is a member of Mr Tusk’s vanguard, has said he believes thorough changes in the government are necessary.
Indeed, he may want to relinquish his post after running Poland’s finances through the global crisis. “There wasn’t a single year when I did not think about leaving the post,” he told Gazeta Wyborcza last week. According to pollster CBOS, Ministers Mucha, Rostowski, Ar∏ukowicz, as well as Donald Tusk himself scrape the barrel of Polish opinion, although it will be up to Mr Tusk to bring ministers to task in his policy speech at the PO convention.
Coalition partner not pleased Changes in the government have not pleased some, however, not least the head of the junior coalition partner, Economy Minister Janusz Piechociƒski from the Polish
COURTESY OF FLICKR/M. ÂMIARKOWSKI/KPRM
Politics
Prime Minister Donald Tusk is on the lookout for new cabinet members People’s Party (PSL), who says it’s not the right time for a cabinet reshuffle. Changes should be made in January, he told Polish Radio, after work on the pension and budget reforms are completed. As WBJ was going to press, representatives of Poland’s ruling coalition parties – PO and PSL – were expected to meet on November 11 to discuss the state budget, pension reform, EU issues and the government reshuffle. The meeting was originally scheduled for last Wednesday
evening, although according to PSL leaders it was their idea to postpone the meeting. They claim that such important talks can’t be done in the current tense political climate.
Now or never? The proposed changes could be a boon for PO, which has been trailing in the polls for a number of months. If Mr Tusk makes the right decisions, then it could give the ruling party a chance to fight back, easing pressure on Mr Tusk himself and strengthen-
ing his position in the party. On the other hand, winter is traditionally seen as a bad time for PO in the polls, so all that time and energy spent on a cabinet reshuffle before the winter frosts set in could be a futile exercise. One thing is certain, however: Civic Platform needs to regain support and fast if it is to do well in the European parliamentary elections in 2014 and domestic parliamentary elections in the year after that. John Beauchamp
Politics
Bugs, bombs and baguettes John Kerry’s visit to Warsaw centered around spying, defense and good oldfashioned imagepolishing
bilateral trade agreement also came up during the visit, and Mr Kerry maintained that the wiretapping scandal should not affect the ongoing talks between EU and the US.
COURTESY OF THE US STATE DEPARTMENT
PR move US Secretary of State John Kerry met with both Foreign Affairs Minister Rados∏aw Sikorski and Prime Minister Donald Tusk during his visit to Poland last week. Talks centered around defense and security issues. The visit came amidst a flurry of reports in European media revealing that the US National Security Agency has been spying on world leaders. “We’re all in this together ... and we have to strike the right balance between protecting our citizens and, obviously, protecting the privacy of our citizens,” Mr Kerry said after meeting with Polish Foreign Minister Rados∏aw Sikorski. “We have agreed on closer
John Kerry bought a baguette in a Warsaw bakery. No word if he enjoyed it consultation between our special services on how to fight common threats,” Mr Sikorski said when asked about the US
National Security Agency’s alleged spying on Poland. Mr Kerry also reconfirmed his country’s plans regarding
missile defense in Poland. The system should be in place “around 2018,” he said. The topic of the EU-US
To some, Mr Kerry’s visit was a disappointment. “He came here because our opinion about the US has changed,” said former Polish Ambassador to the US Janusz Reiter in an interview with TVN 24. “After so many mistakes that the country has made, the US is not as well-liked here as it was previously.” Others complained that the single issue most important to Poles – namely abolishing the requirement that Poles obtain a visa before traveling to the US – was not discussed. “Mr Kerry wanted to sound out current business trends in Poland. There will be many tenders announced in Poland, and American companies will be
happy to participate in them,” said Law and Justice MP Witold Waszczykowski, referring to the planned modernization of the Polish army on which the government wants to spend z∏.139 billion by 2022. For many, Mr Kerry’s visit resembled a campaign-trail stop. He took a walk down the Krakowskie PrzedmieÊcie street in central Warsaw, stopping to speak with passersby and shake children’s hands. He even bought a baguette at a bakery along the street. Yet there was a gaffe as well: the secretary called former Prime Minister Tadeusz Mazowiecki a “former foreign minister” after he laid a wreath at the grave of the recently deceased statesman. The visit to Warsaw was Mr Kerry’s only stop in Europe on a tour in which he continued on to countries in North Africa and the Middle East. Kamila Wajszczuk, Jacek Ciesnowski
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6
BUSINESS
www.wbj.pl
NOVEMBER 12-17, 2013
Energy
Coal mines in deep financial hole Poland boasts huge deposits of coal, and it fuels some 80 percent of its energy production with the resource. Nevertheless, the country’s coal companies are finding it increasingly difficult to maintain profitability. The biggest coal producers in the country, state-owned Kompania W´glowa and Katowicki Holding W´glowy are in dire financial straits. According to Central Statistics Office data, the entire sector
SHUTTERSTOCK
The Treasury is considering ways to save Poland’s failing coal mines and the thousands of jobs they support
Mining firms are sitting on tons of unsold coal lost z∏.24 million in H1 2013. The Economy Ministry is trying to work out how to save the companies from going bankrupt and leaving thousands of employees jobless. The ministry has asked consultancy
Roland Berger to prepare an audit of the sector and propose various solutions on how to improve mining companies’ conditions. One such solution could include splitting the mining
giants into smaller companies and then grouping them with state-controlled energy producers and providers, Dziennik Gazeta Prawna reported. Currently, imported coal can be cheaper by some $50 dollars per metric ton than its domestic variant. By integrating coal mines into their holdings, utilities could use the coal they would now own. This, at least on paper, would give the mines a stable cash flow. As it stands, the mines are having trouble finding buyers for their product. Kompania
W´glowa alone is sitting on over 5 million tons of unsold coal. However, this move would increase producers’ costs, as the coal would be more expensive than imports. The Treasury hopes that utilities’ profits won’t be affected significantly and that mines could be saved that way. Nevertheless, this plan would not exclude the possibility of closing the biggest moneylosing shafts.
Why so expensive? The price of coal in Poland is high for a few reasons. Mining giants have tens of thousands of miners on their payroll, all members of restive unions that have managed to keep salaries
high and benefits generous. Miners employed in statecontrolled companies usually receive the equivalent of 14 monthly salaries, plus other bonuses and incentives. As a result Kompania W´glowa fears that in February, when it is due to make one of the additional monthly salary payments, it will simply run out of money. The cost of excavating coal is also rocketing as deposits in existing mines are wearing thin. To get to what’s left, miners need to dig deeper, significantly increasing costs. Developing new mines would bring the prices down, but that in itself is a lengthy and costly process. Jacek Ciesnowski
More CEOs fired from state-controlled companies The supervisory board of Polish Defense Holding (PHO) has dismissed the company’s chief executive Krzysztof Krystowski. Deputy CEO Marcin Idzik will now perform his duties. Mr Krystowski is the latest in a line of managers dismissed from state-controlled entities. The firing comes on
the back of the dismissal of two PGE executives, Bogus∏awa Matuszewska and Wojciech Ostrowski, both vice presidents on the management board of Poland’s largest utility. Rafa∏ Wardziƒski, CEO of Polskie LNG, the company responsible for building an LNG terminal in ÂwinoujÊcie, was also given the boot.
Reasserting control In most cases the reasoning behind the firings was not revealed, but they could be seen as an attempt by the Treasury to reassert control over companies that have not followed along with its plans. Sources quoted by Polish media claim that Mr Krys-
towski’s vision for consolidation of the defense sector differed from the one presented by the government. Mr Krystowski allegedly wanted his company to be at the center of the new defense group. The new government strategy is to create a new sector holding – Polska Grupa Zbro-
jeniowa. The new capital group will include PHO, the Huta Stalowa Wola steel mill and 11 other weapons manufacturers. The plans don’t put PHO as the main company within the group. In the energy sector, PGE withdrew from the decision to build two new coal-fired power generation units, each
with a capacity of 900 MW, at the Opole facility, saying that the project would be unprofitable. A few weeks later, Prime Minister Donald Tusk overturned the decision, forcing the company to sign a letter of intent to start the project. Kamila Wajszczuk, Jacek Ciesnowski
8
BUSINESS
www.wbj.pl
NOVEMBER 12-17, 2013
Utilities
Energy drinks
WSE braces for Energa surge
Foodcare takes a punch to the gut
The Treasury is to offer a nearly 35 percent share of one of Poland’s biggest clean-energy utilities
Energa’s IPO is set to be the biggest on the Warsaw bourse this year shares. Banco Espirito Santo, BofA Merrill Lynch, Citi, DM PKO BP and UniCredit have also also been billed as joint bookrunners. Biuro Maklerskie Alior Banku, DM BOÂ, DI BRE Banku and Ipopema Securities are also managers of the offer. The offering will be directed to individual investors, Polish institutional investors and selected foreign institutional investors. Grupa Energa is Poland’s third-largest energy distributor in Poland in terms of volume
to end users, with over 2.9 million individual and commercial clients over a grid spanning some 77,000 square kilometers, around 25 percent of Poland’s surface area. Energa is one of the biggest vendors of clean energy in Poland. In 2012, 36 percent of renewable energy produced in Poland was sold by the company. Energa’s power plants can produce 1.3 GW of energy. Last year it sold some 28 TWh of electricity. Kamila Wajszczuk, John Beauchamp
Court enforcement officers have seized the assets of one of Poland’s biggest foodstuffs producers, Foodcare, including its popular brands such as energy drink Black and Frugo juices. The move stems from a September court ruling ordering that Foodcare pay z∏.10 million in compensation to Dariusz “Tiger” Michalczewski’s Equal Chances foundation. Mr Michalczewski and his foundation are also suing for an additional z∏.22 million. The dispute dates back to 2010, when Mr Michalczewski’s Equal Chances foundation terminated its contract with Foodcare. The contract allowed the company to produce, sell and promote the energy drink under the “Tiger” brand. The boxer explained that he had to terminate the contract because Foodcare halted pay-
COURTESY OF FOODCARE
COURTESY OF ENERGA
Major Polish utility Energa has announced its plan to carry out an initial public offering in the fourth quarter of 2013, depending on market conditions. The State Treasury will offer a 34.18 percent stake in the company (some 141,522,067 shares) in the deal. No new share issue is planned for the purpose of the IPO. The value of the flotation may be some $700 million (around z∏.2.2 billion), according to information obtained by Bloomberg. This would make it the biggest offering on the Warsaw Stock Exchange this year, following the z∏.1.4 billion share offer in October by PKP Cargo, Europe’s second-largest rail freight company. Meanwhile, the upcoming IPO in Energa could value the company at between z∏.6.4 billion and z∏.10 billion, market sources told Reuters last week. JP Morgan and UBS Investment Bank have been appointed global coordinators and joint bookrunners. Dom Maklerski PKO BP will offer the
The producer of the popular Black energy drink has had its brands seized as a result of a legal battle with a former boxing champion
Foodcare’s real estate will also be seized by the court enforcement officers ments of licensing fees to his foundation. A few months later, Mr Michalczewski signed a similar deal with foodstuffs producer Maspex. For some time two different energy drinks called Tiger were on the market – leading Mr Michalczewski and his foundation to sue Foodcare. For its part, Foodcare says it will appeal the ruling. The
company claims that it will be able to continue manufacturing and selling its products. Both Tiger and Black (endorsed by another famous boxer – Mike Tyson) are popular products in the sector, with both brands each controlling about 20 percent of the energydrinks market, which is valued at z∏.825 million. Jacek Ciesnowski
FINANCE & ECONOMICS
NOVEMBER 12-17, 2013
9
www.wbj.pl
Production
PMI inches up as exports set record Conditions in Poland’s manufacturing sector continued to improve in October, according to the most recent manufacturing PMI figures. The index came in at 53.4 in October, up 0.3 points from Poland’s 53.1 score in September, HSBC and Markit Economics said in a press release last week. The reading was higher than analysts’ expectations of 52.8. October was the fourth consecutive month with a headline
PMI reading higher than 50, which indicates improving business conditions. A figure below 50 indicates deteriorating conditions. October’s reading featured a record-high increase in new export business. New export orders rose for the fifth consecutive month and their increase was the highest since June 1998. Manufacturing output increased for the fourth month running. The volume of goods in stock declined for the 19th month in a row. “The PMI index has improved little in October compared to the previous month,” said Agata Urbaƒska-Giner, CEE economist at HSBC, “but
Headed for recovery Manufacturing PMI readings for Poland (October 2011- October 2013) 55
50
45
40 Oc t. No ’11 v. De ’11 c. Ja ’11 n. Fe ’12 b. Ma ’12 r. Ap ’12 r. ’ Ma 12 y Ju ’12 n. ’ Ju 12 l. Au ’12 g. Se ’12 p. Oc ’12 t. No ’12 v. De ’12 c. Ja ’12 n. Fe ’13 b. Ma ’13 r. Ap ’13 r. ’ Ma 13 y Ju ’13 n. ’ Ju 13 l. Au ’13 g. Se ’13 p. Oc ’13 t. ’13
Record new export orders offer a hopeful sign that Europe is also on its way out of economic doldrums
Source: Markit Economics
it continued to show improving business conditions in manufacturing for the fourth month in a row and remains at the highest
RPP to leave interest rates unchanged until mid-2014 Poland’s Monetary Policy Council (RPP) kept interest rates on hold at their November meeting. The decision was in line with analysts’ expectations and with statements made by RPP members over the past month. The reference rate therefore remains at its historic low of 2.5 percent.
What economists found interesting was National Bank of Poland head Marek Belka’s announcement that rates should be kept at their current levels for several months. “Considering the current statistical data as well as the projection of GDP and inflation that confirm low inflation-
ary pressure and the expected moderate economic recovery, the Council assesses that NBP interest rates should be kept unchanged at least until the end of the first half of 2014,” he said, adding that the declaration received unanimous approval from all of the memKW bers of the RPP.
level since early 2011.” Ms Urbaƒska-Giner stressed that output and employment indices inched
down in the survey, while input prices grew. “This still points to weak demand and highlights how vulnerable growth recovery still is at this stage,” she said. Nevertheless, the high level of exports is welcome news and suggests that the EU, and specifically Germany, Poland’s largest trading partner, is entering sustained recovery. “The record high subindex for new export orders in Poland’s PMI tells much about pace of recovery in Germany and euro area,” tweeted Piotr Bujak, chief economist for Poland at Nordea Bank, after the figures were released. Exports have led Poland’s
economic rebound after a period of slow growth that began last year and continued through the first half of this year. However last week the Gdaƒsk Institute for Market Economics released a study in which it found that domestic demand – which had largely powered Poland’s economy during the 2009 economic crisis – was the main factor behind strong GDP growth in Q3. The two factors combined – stronger export figures and increased domestic demand – would indicate that Poland’s economic growth is ready to rev up again in the coming months. KW, AK
Piechociƒski: Poland may have trade surplus in 2013 Poland may record a surplus in foreign trade by the end of this year, Deputy Prime Minister and Economy Minister Janusz Piechociƒski said last week. If that were to occur, it would be a first for Poland in its recent history. Mr Piechociƒski said that data provided by statistics office
GUS for the first eight months of 2013 support his view. In January-August, Poland’s foreign trade deficit was €990 million. Exports grew by 6.1 percent year-on-year and imports fell by 0.9 percent y/y. Throughout 2012 Polish exports grew by 4.9 percent (or €6.8 billion). Last year’s export
value was 23.4 percent higher than in 2008, before the financial crisis hit. “We will need a surplus of exports over imports for at least several years,” Mr Piechociƒski said. He added that growing exports signal that government promotion programs are workKW ing.
10
OPINION & ANALYSIS
www.wbj.pl
NOVEMBER 12-17, 2013
Mazowiecki’s miracle It
was a hot day and a tense moment. As Poland’s first postcommunist prime minister, Tadeusz Mazowiecki, laid out his government’s ground-breaking program, he wobbled and appeared to faint. While the packed parliament speculated nervously, Mr Mazowiecki slipped out of a side entrance to get some fresh air in nearby Ujazdowski Park in central Warsaw. “Who’s that?” a child playing in a sandbox asked his mother. “Nasz premier,” she replied – “Our prime minister.” That was not a phrase that had been readily used to describe Poland’s communist leaders over the previous four decades. When Mr Mazowiecki returned to the podium, he apologized and, with his customary dry wit, suggested that the Polish economy was as unsteady on its feet as he was. He was right.
Road to recovery Communism had left Poland politically and economically bankrupt. Marxist ideology had become all but a facade; not even party apparatchiks pretended to believe it. Poland’s economy, close to outright collapse, struggled to meet citizens’ basic needs, let alone repay foreign loans. It fell to Mr Mazowiecki, the
Catholic journalist and opposition activist, to be modern Poland’s first non-communist prime minister and to start the road to recovery. Though he was in office for less than 17 months, from August 1989 to January 1991, he managed to set Poland on a path toward a market economy and NATO and European Union membership. In the final weeks of communist rule, Mr Mazowiecki helped to establish a model for negotiated political transition that still informs, inspires, and guides other societies on the cusp of change. I am proud that Poland, thanks to the expertise gained in the Mazowiecki years and after, can provide advice to the European Union’s eastern and southern neighbors, as well as countries like Tunisia and Burma. Gaunt and gentlemanly, Mr Mazowiecki had served as an advisor to Lech Wa∏´sa, the leader of the Solidarity movement. He had seen the movement swell to more than nine million members in the heady days after the August 1980 Gdaƒsk Shipyard strike – and, like the rest of the movement’s leadership, had been interned when General Wojciech Jaruzelski declared martial law and banned Solidarity 16 months later. The union survived as an underground
operation, printing discussion documents and organizing rallies. Gradually, the balance of advantage swung away from the communist leadership – especially after Mikhail Gorbachev took over as Soviet leader
“Mr Mazowiecki helped to establish a model that still informs, inspires, and guides other societies on the cusp of change.” – and back toward Solidarity. Exhausted, the Polish communist regime agreed to sit down to talks with Solidarity. The negotiations, known as the Round Table Talks, led to the communist world’s first competitive – though not entirely free – parliamentary election, on June 4, 1989. Five months before the fall of the Berlin Wall and Czechoslovakia’s Velvet Revolution, Poland had negotiated its way out of totalitarianism. But the Mazowiecki government faced a nearly impossible task: building democratic political institutions while resuscitating
the country’s torpid economy.
Shock therapy success One of the Mazowiecki team’s greatest achievements was the introduction, led by Finance Minister Leszek Balcerowicz, of fast and far-reaching market reforms and privatization. The “shock therapy” of the Balcerowicz Plan unsettled Poles, but it brought the country’s terrifyingly high inflation under control. Mr Mazowiecki backed Mr Balcerowicz, and the success of economic reform underpinned Poland’s relatively smooth political transition. Indeed, despite some initial hiccups, the positive effects of economic reform quickly became apparent. Poland recorded impressive growth. Within 20 years, GDP increased fourfold, while exports increased more than 10-fold. Once a peripheral European country economically and politically, Poland has become one of Europe’s leading states and a coshaper of its future. The Round Table Talks and the political transition overseen by Mr Mazowiecki marked a period of compromise that had advantages and disadvantages. The advantages included a rapid political changeover and the assistance of some of the former com-
Rados∏aw Sikorski
munist elite in building a free, democratic, and pro-Western state. The disadvantages included the lack of a clean break between Poland’s authoritarian past and its democratic present. The price of a smooth transition was also that many members of the communist regime – including Mr Jaruzelski – were not held accountable for their crimes while in power.
A place in the history books At the time, I was critical of the path Mr Mazowiecki was taking. I believed that Poland’s transformation could be accomplished faster and more effectively. But this never tarnished my high opinion of him. On the contrary, looking back on that era, it is amazing how much was achieved within such a short amount of time. Together with Mr Wa∏´sa, Mr Mazowiecki was a founder of Polish independence. His place in the history books is guaranteed. It is thanks to him that Poles can be proud that theirs was the first Soviet Bloc country to free itself of communist tyranny. We have not looked back since. ● Rados∏aw Sikorski is Poland’s Minister of Foreign Affairs. Copyright: Project Syndicate, 2013. Project-syndicate.org
Putin: enjoying his victories while he can Stratfor
R
ussian President Vladimir Putin notched another public relations victory Wednesday when Forbes magazine named him the world’s most powerful person. Every year, the magazine publishes a list of the heads of state, financiers, philanthropists and entrepreneurs who “truly rule the world,” so it is little surprise that the US president ordinarily ranks No. 1. Indeed, Barack Obama has topped the list every year of his presidency, save for 2010, when Chinese President Hu Jintao surpassed him following the financial crisis in 2009. But a lot has happened in 2013 that apparently swayed Forbes’ opinion. The magazine had this to say when it bestowed the (admittedly symbolic) title on the Russian president: “Putin has solidified his control over Russia while Obama’s lame duck period has seemingly set in earlier than usual for a two-term president – latest example: the government shutdown mess. Anyone watching this year’s chess match over Syria
and National Security Agency leaks has a clear idea of the shifting individual power dynamics.” Certainly, Russia has become strong and relatively stable since the chaos that followed the fall of the Soviet Union. More recently, it has been quick to point out its foreign policy successes and US failures. Russia has gloated that it was the country to find a peaceful solution to the crisis in Syria, preventing a US-led international military intervention. Moreover, Russian news agencies, especially those tied to the Kremlin, have been actively promoting the NSA security leaks that are complicating foreign relations for the United States.
Manifold goals Russia’s goals in promoting its successes are manifold. First, Moscow is trying to portray the United States as weak and untrustworthy. This comes as Russia is also trying to expand its influence into its periphery, particularly Central Europe, where many
countries have turned to the United States for protection over the past decade. Moscow is slowly dispelling the notion that the United States is a reliable defender that is able to stand up to Russia. In addition, Russia hopes the leaks over the NSA spying scandal will weaken Washington’s alliance system, particularly with European heavyweights such as Germany and France. Second, Russia is trying to present itself as a viable alternative to US global authority. Mr Putin most famously did so in his September oped in The New York Times, in which he harshly criticized American exceptionalism. The article was written as world powers were negotiating a solution for Syria. Russia wants to be seen as a global decision-maker and power broker, and its regional and global expansion has registered with many Russo-wary states, such as Turkey and Poland. Last, Russia is making a large show of strength in the world to
divert attention from its various domestic problems. Mr Putin’s rationale is that the stronger his country looks on the outside, the longer it will take the rest of the world to realize the weaknesses on the inside.
Trouble at home Despite massive energy revenues, the Russian economy is stagnating, with a projected growth rate of only 1.8 percent. Projections suggest that growth will remain slow for the next three years. By comparison, the Russian economy has grown by 3.4 to 4 percent annually in recent years. Russian energy may suffer more in the coming years from competition in liquefied natural gas developments and shale gas production, creating an uncertain future for the government’s largest source of revenue. Russia is also currently experiencing elevated levels of social unrest. A more politically vocal generation is rising in the country, as are tensions among ethnic and religious groups.
Over the past month alone, Russia has seen anti-migrant and anti-Muslim riots by nationalists, subsequent riots by Muslims and migrants and a militant attack outside the Caucasus region. Meanwhile, after 15 years of domination by Mr Putin, the Russian political system is showing signs of atrophy. The are growing discrepancies among the Russian elite, who care more about preserving their positions than they do about the state. And yet there is no system in place that can bring the next generation of Russian leaders into the fold. Russia is a country that is only as strong abroad as it is at home. Right now, Mr Putin is projecting Russia’s strength outwardly, knowing that there are serious domestic threats to that strength. In short, Mr Putin is enjoying the moment while he can. ● This edited version of “Putin: enjoying his victories while he can” is reprinted with permission of Stratfor Stratfor.com
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LOKALE IMMOBILIA
SPECIAL MAPIC EDITION Why do malls beat out high street retail?
13, 14
CBRE’s Mike Atwell talks retail repositioning
W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t
Allianz RE eyes Poland Property investment and asset manager Allianz Real Estate is planning to increase its presence in Poland’s retail real estate market, the firm’s CEO Roland Fuchs said. The strategy includes financing commercial investments and acting as a direct investor. This year, the company has acquired real estate worth €1.4 billion. Allianz is the main shareholder of a consortium that took over Silesia City Center in Katowice for over €400 million earlier this year. ●
In this issue Retail investment . . . . . . . .11, 15 Atrium 1 sold . . . . . . . . . . . . . . .11 MAPIC guide . . . . . . . . . . . . . . . .12 High streets . . . . . . . . . . . . .13, 14 Plac Zamkowy controversy . . .16 Panattoni expansion . . . . . . . . .16 Vantage’s retail projects . . . . .16 Manhattan distribution sold . .17 Polimex’s asset-stripping . . . . .17 Mike Atwell interview . . . . . . .18
Retail investment
Retail transaction volume exceeds €1 billion
After a year with a strong focus on prime assets in major cities, experts expect an influx of capital to smaller cities
The recently finalized sale of Wola Park to Inter IKEA for an undisclosed sum has likely put the volume of retail investments closed so far in 2013 past the €1 billion threshold. “The volume of transactions closed this year so far is approximately €1.150 billion in the retail segment alone and has, for the time being, surpassed that of the office segment,” Agata Seku∏a, head of retail investment at Jones Lang LaSalle told Lokale Immobilia. The biggest deals this year include the Silesia City Center shopping mall in Katowice and Galeria Dominikaƒska. in Wroc∏aw, Silesia was purchased by a consortium
led by Allianz for over €400 million, while Galeria Dominikaƒska was acquired by Atrium European Real Estate for €151.7 million. There is another major sale in the pipeline, Kraków’s Galeria Kazimierz for €180 million to Invesco Group. “We believe that this year the overall transaction volume, regardless of the sector, will exceed €3.2 billion, which means it will be on a par with pre-crisis 2007. This is not as high as the record year of 2006 when transaction volumes exceeded €5 billion, but still, 2013 shows a very optimistic and encouraging picture,” Ms Seku∏a said.
areas with a catchment over 100,000 people. There are certain areas of the investment market which are ignored: the non-core, valueadd assets.” However, a central location and a large catchment area are no longer enough for funds to feel confident
about their investment. These days performance is crucial for retail schemes. “Before the crisis, investors were willing to buy centers that were still under construction or recently completed. Now, the first thing a major institutional investor looks at is the performance
history of the scheme,” Ms Seku∏a said. A good center needs to have a stable position in the market, preferably with at least a few years’ experience and good footfall and revenue levels. It also has to be fully or nearly 100 percent Continued on p. 15 ➡
Prime in demand What kind of assets are investors looking for? According to Ben Habib, CEO of First Property Group, investors looking to acquire properties in Poland focus on “retail schemes in
The sale of Silesia City Center in Katowice grossed over €400 million
Office
Skanska sells Atrium 1 for €94 million Swedish developer Skanska has sold its Atrium 1 office scheme for €94 million to German real estate fund Deka-Immobilien Global. The building, located on Al. Jana Paw∏a II, near the Rondo ONZ roundabout in the center of Warsaw, offers 18,000 sqm of office space on 15 floors. The developer said it was looking for a buyer for the project in July of this year. In late October CBRE was appointed as the leasing agent of the building. The building, scheduled to be completed in early
2014, is currently 75 percent leased. Poland’s third-largest lender Bank Zachodni WBK will be one of the major tenants in Atrium 1. In September, the bank signed a 12year lease for 12,200 sqm in the new scheme, the biggest lease in Poland in years. Atrium 1, which Skanska Property Poland calls its “flagship” project, features a number of energy-efficient solutions. The geothermal heating and cooling system, with probes reaching a depth of 200 meters below ground level, will cut operating costs by 20 percent, Skanska said.
The scheme is LEED Platinum pre-certified. The building will be able to accommodate 2,000 people and will be the latest addition to a complex of commercial buildings that the company has been developing along Al. Jana Paw∏a II since the 1990s. Skanska Commercial Development Europe constructs office, logistics and commercial buildings. The company operates mainly in metropolitan areas in the Czech Republic, Hungary, Romania and Poland. Beata Socha
COURTESY OF SKANSKA
A €15 million deal that would have seen Scala IRP Capital Partners Poland take over the Makrum shopping center in Bydgoszcz has fallen through. The deal fell through because Scala failed to obtain funding for the purchase before the October 30 deadline set out in the preliminary sales agreement. According to the agreement, Scala IRP Capital Partners Poland was to pay the €15 million for the purchase of Makrum in two installments. Up till now it had only made a down payment in the amount of z∏.100,000.
NOVEMBER 12-17, 2013, LI 18/44
COURTESY OF IMMOFINANZ
Makrum fails to sell
18
Atrium 1 is set to be delivered in Q1 2014
Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription
12
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LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
NOVEMBER 12-17, 2013
MAPIC guide
Polish companies mark their presence at MAPIC 2013 On November 13-15 the city of Cannes, France will once again become the key meeting point for retailers, developers, investors and consulting firms interested in retail property. This year MAPIC will shine a spotlight on four of the world’s most promising retail destinations: Brazil, India, Russia and China. Last year the event attracted 8,200 participants from 69 countries, including 2,430 retailers and 335 investment companies. Over 3,260 companies have registered to participate in this year’s MAPIC event, including nearly 120 Polish firms. Poland has always been a strong participant at the MAPIC event. Last year there were 32 exhibitors from Poland, as well as 61 retailers, eight of which were attending for the first time. Nine investment companies from Poland were also present. The event has been organized since 1995. It features tailored meetings, expert-led conferences and an exhibition for industry leaders targeting all types of retail property: city and shopping centers, factory outlets, leisure areas and transit zones.
Polish exhibitors at MAPIC 2013
Panels to check out
Want to meet up with a Polish firm at MAPIC? Here are the Polish exhibitors and where to find them Name Atrium Poland Real Estate Management
Activity
Stand at MAPIC
shopping center developer
R30.33
retailer
R36.09
As Central Europe becomes a more developed market, where are the opportunities? Time:10:00-10:45 am, location: I Agora, Level -1, Aisle 08
Auchan Pologne
shopping center developer
R30.03
Speakers will discuss the future shape of the retail market in Central Europe. They will answer the question of which other CE markets may emerge and if they can draw capital away from Poland and the Czech Republic. Experts will also discuss the increasing role of asset management of retail properties.
consulting
22.02
Speakers
Colliers International
consulting / agency / property management
12.16
• Ronald Dasbach, managing director, Multi Developement Central & Eastern Europe (Czech Republic)
Cushman & Wakefield Polska
consulting / agency / property management
13.02
DTZ Polska
consulting / agency / property management
23.11
Echo Investment
developer / property management
11.10 / 13.09
Fashion House Group
retail park / factory outlet developer
10.02
property management
12.30 / 14.27
shopping center developer / property management
R36.09
shopping center developer
12.12 / 14.01
consulting
20.01
shopping center developer / property management
LR5.03
Projects to be presented
shopping center developer
R34.15
• AlHazm – Al Emadi Enterprises (Qatar)
Media Saturn Holding Polska
retailer
R30.11
Pradera Management Poland
asset management
21.07
• Machelen – Uplace (Belgium)
retail developer
11.14
• Zelenopark – PGP Development (Russia)
logistics/retail developer / consulting /
BNP Paribas Real Estate Poland Carrefour Polska CBRE
Forum Gliwice Immochan Nieruchomosci
R29.01
agency / property management
• Jonathan Hallett, managing partner Central Europe & Eastern Europe, Cushman & Wakefield (Czech Republic) • Frederik Kramer, general manager real estate and expansion, Peek & Cloppenburg (Germany) • Martin Sabelko, managing director CEE, CBRE Global Investors (Czech Republic)
Discover 5 shopping center projects Time: 3.30-4.30 pm, location: I Oxford Room, Level -1, Aisle 11
Inter Ikea Centre Polska Jones Lang LaSalle Klepierre Management Polska Mayland Real Estate
Five developers will present their shopping center projects to retailers, investors and operators followed by a networking break to meet with the speakers:
• Empire Outlet – EWB Development (USA) • Galeria Piaseczno – Immochan (Poland)
Ptak
Source: MAPIC
COURTESY OF GTC
Galeria Pó∏nocna
Two shopping malls, Galeria Wilanów and Galeria Pó∏nocna, will offer, respectively, 61 and 64 thousand sq m of retail space. The malls are designed to be fully open to their surroundings focused on leisure activities and green areas. The developer has already signed letters of intent with LPP SA and Cinema City International for a total of 16.7 thousand sq m of retail space in each of the mall. GTC expects to start the construction process in 2014 and complete each investment in 20 to 22 months from the commencement date.
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Ada Mall in Belgrade will offer 36 thousand sq m of retail space. GTC plans to start this development also in 2014 and again complete it after 22 months. Since the 1990s GTC has developed 12 retail projects throughout the region (Poland, Czech Republic, Croatia, Romania and Bulgaria) and is now successfully managing 10 shopping malls with a total of almost 280,000 sq m of retail space. ●
BROUGHT TO YOU BY GTC
Galeria Wilanów
COURTESY OF GTC
GTC, one of the leading commercial real estate developers in Central, Eastern and Southern Europe, is set to launch two simultaneous retail projects in Warsaw, Poland and a project in Belgrade, Serbia.
DAILY EXECUTIVE DIGEST
S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p l G e r m a n v e r s i o n : w w w. p o l e n a m m o r g e n . p l
NOVEMBER 12-17, 2013
LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
Retail
Warsaw’s high street potential
Luxury issue High street retail is usually associated with upmarket luxury brands, such as Prada or Versace. Warsaw, despite having the highest purchasing power out of all Polish cities, is still a long way from reaching the living standards of London and Milan. There are those who see a bright future for Warsaw’s highend retail. “There are still few upmarket brands present in Warsaw, but that will inevitably change,” Ben Habib, CEO of First Property Group told Lokale Immobilia. There are already Giorgio Armani and Gucci stores in the Vitkac department store near Plac Trzech Krzy˝y. The most recent addition to Warsaw’s upmarket landscape is Louis Vuitton’s store, which opened in July, also in the Vitkac center. But are the top international brands really the way to go for Polish high streets? JLL retail investment expert Agata Seku∏a seems skeptical, “People who can afford to shop in these upmarket stores usually can also afford to fly out to Paris, Milan or London, where they can choose between dozens if not more luxury brands.” Ul. Chmielna is however not
Cohesion and strategy Some of the limitations to the development of high streets in Warsaw are institutional in nature, such as the lack of a coherent zoning plan for the capital’s center. “Each investor receives different land development conditions, there is no coherence. One developer builds in a certain style, another ruins it,” said Andrzej Bulanda, partner at Bulanda Mucha Architekci, the architectural studio which designed Chmielna 25. Mr Piàtek admitted that a good zoning plan is necessary, particularly one that would be permanent in nature and not subject to ad hoc changes. The lack of clear strategy is a national issue, according to professor Bogdan Ja∏owiecki from the University of Warsaw, representing the Centre for European Regional and Local Studies EUROREG. “In France city zoning in Paris is a statelevel issue. In Poland, the state is not in the least interested in Warsaw,” Mr Ja∏owiecki explained.
Parking problem Another problem in Warsaw is the lack of sufficient parking. Developers and city officials disagree as to what the city’s strategy for underground parking in central locations should be. Mr Piàtek said that building underground garages, like in Western European cities, may not be economically feasible, as “there is fear that these garages will not be popular, because they will be too expensive compared to the cheap street parking, on which there are legally mandated price limits,” Mr Piàtek said. LHI’s CEO disagreed, saying, “Public parking should be planned for 20-30 years and not short-term. Of course, at first you may have to subsidize it to make prices accessible to Varsovians.”
A matter of convenience Another barrier to the development of high-street retail could be the solidified position of shopping centers on Warsaw’s retail map. Some experts say that Warsaw will never have high streets similar to those in Western Europe. “Poles really took to shopping malls and got accustomed to them. They like shopping in places sheltered from the rain, with convenient parking. High streets have some lim-
LHI’s Chmielna 25 offers 3,800 sqm of office and 1,700 sqm of retail space on one of Warsaw’s high streets itations: you have to move around on foot, carrying all your purchases,” Agata Seku∏a from JLL said. According to data compiled by Colliers, 80 percent of people living in major cities prefer to do their shopping in shopping malls, while only 9 percent said that high streets were their favorite shopping destination (see story p. 14). Apart from an unfavorable climate for shopping outside, there is also the issue of insufficient space. “In Poland high
streets cannot accommodate these large-format anchor tenants,” Ms Seku∏a added. According to the JLL expert, high-street retail therefore develops in small hubs. “There is the Plac Trzech Krzy˝y area with the more luxury brands. … The Nowy Âwiat [near ul. Chmielna] area has more restaurants but there are also clothing brands there. There are also some high-end brands in the Vitkac center,” Ms Seku∏a added. Beata Socha
Chmielna shopping What type of stores do people coming to ul. Chmielna visit? 100 80
* clothing, sportswear, children’s clothing ** mobile phones, tablets, laptops
60 40 20 0 Cl oth ing * Gr oc Ele ery ctr on i Fo cs otw ea To r ile tri es M Mo ob Ba i bil le d nk s en e etw vice s* or ks * Op ervic e tic ian s Tra sto r ve la e ge nc Ins y ura nc e Ot he r
Experts and developers agree that Warsaw suffers from a shortage of high-street retail space. The reasons are manifold. For one thing, the amount of space on top retail streets is limited. Moreover, research shows that Poles still prefer to shop in shopping centers. All this begs the question: is there really room for high-street shopping in Poland’s capital? The Polish subsidiary of the German firm LHI Leasing has announced plans to develop several new projects along ul. Chmielna, one of the high streets in Poland’s capital. The fund recently opened an office/retail building called Chmielna 25, its second scheme on that street after the Nowy Dom Jab∏kowskich office project, delivered in 2011. Chmielna 25 features 3,800 sqm of office and 1,700 sqm of retail space. The retail area has already been leased to children’s clothing and toys retailer Smyk, scheduled to open its new flagship store there on November 29. But this is just one small project on a street that needs thorough refurbishing and many more similar schemes to become a truly European high street. Or does it?
targeting luxury brands, but is more focused on entertainment, restaurants, and to some extent culture. “There are more people on ul. Chmielna at 10 pm than at 10 am,” said Grzegorz Piàtek, the head of Warsaw’s architecture and city planning department.
COURTESY OF LHI
High streets in Warsaw are developing slowly, but is that really a problem given that Poles prefer to shop in big malls anyway?
Source: Millward Brown
Walking distance As many as 12 million people visit ul. Chmielna each year, more than half of whom say they come to shop, according to research conducted by Millward Brown for LHI. Each week there are 233,000 people walking along the street, located in the very heart of Poland’s capital. On weekdays the number of men and women visiting the street is very similar, with 63 percent of all the pedestrians aged 20-39. At the weekend, the street transforms into a meeting place for younger people, particularly women. As many as 73 percent of all the visitors are female and the 20-29 age group constitutes 54 percent of the traffic. The research also shows that the people who frequent the street usually have high spending power. Over 50 percent of those polled declared that they have sufficient income for all their everyday expenditures as well as for savings. The catchment area of the street is also quite substantial, with 10,500 people living within a 10-minute walk and 22,500 within a 15minute walk. The number of people working in the area is even more impressive: 83,000 people work in offices located within a 10-minute walking distance, and 175,000 within a 15-minute walking distance. The new subway line currently being constructed along ul. Âwi´tokrzyska will make the accessibility of the street even better. ●
www.wbj.pl
13
14
LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
www.wbj.pl
NOVEMBER 12-17, 2013
Retail
High streets in need of revamp The limited offer of retail stores and the poor state of some of the buildings hamper the development of major retail streets in Polish cities Unclear ownership status, unattractive building facades and lack of a consistent strategy for high streets are some of the main obstacles hindering the commercialization of Poland’s high streets, according to Colliers’ latest retail
report. Other reasons why high streets continue to lose against shopping centers include low quality of retail space, difficulty adapting the premises to tenants’ needs, restrictions imposed by curators of historic buildings as well as insufficient parking. Despite all the inconvenience, companies continue to show interest in central locations, particularly luxury brands, mainly because of the large crowds of pedestrians who frequent high streets and
Where do you prefer to do your shopping? 1% 2%
the prestige that central locations give.
Shopping preferences Even though high streets fall far behind shopping centers as the favorite shopping location, with only 9 percent of residents declaring they prefer to do their shopping in high streets compared to 80 percent that choose malls, the proportions are reverse when it comes to eating out. According to the data compiled by Colliers, as many as 94 percent of major city dwellers
Where do you prefer to go to a restaurant or cafe?
Improving the shopping experience Customers in five major Polish
When I do shopping on high streets, it is because...
6%
8%
prefer high streets to shopping malls when looking for a restaurant or a cafe. This generates a lot of traffic in major city streets, at least some of which translates into higher revenue for high-street stores. In fact, 63 percent of people who shop in high streets say they “just happened to be there,” and only 33 percent of high street shoppers “went there on purpose.”
4%
9% 33%
63%
80% 94%
Shopping center
High street
High street
I just happened to be there
Internet
Outdoor market
Shopping center
I went there on purpose
Other
It depends Source: Colliers International
cities have a long list of complaints about their high streets. Varsovians mainly complain about the inaccessibility of high streets to drivers. They also find the layout of high streets confusing, which makes it difficult to find good stores, especially if you don’t shop there often. The residents of Kraków, one of the most touristy cities in Poland, complain about crowds in high streets as well as elevated prices caused by tourist traffic. They would also like to see a wider range of products available in high street stores, in particular niche boutiques. Wroc∏aw’s high streets are dominated by restaurants and cafes (37 percent of all stores), fashion stores (13 percent), financial institutions (10 percent). The southern city’s inhabitants also complain about an unsatisfactory offer, too many grocery stores and second-hand stores which
undermine the prestige of high streets. Residents of the western city of Poznaƒ believe that their high streets are in dire need of major refurbishing and cleaning before they can become attractive to upmarket brands. Finally, TriCity inhabitants would also like their main retail streets to be more accessible to cars. They also complain about tourist crowds and the small range of brands available in high streets. However, a positive trend is occuring. The inhabitants have already noticed an improvement and they expect a further development of high streets. Moreover, respondents frequently expressed the opinion that they would prefer to go shopping on high streets if only their character and offer changed, which indicates that Polish high streets do have potential.
“As many as 94 percent of major city dwellers prefer high streets to shopping malls when looking for a restaurant or a cafe.”
BKS
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LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
“The cities which attract the most interest for office investments are Warsaw, Kraków, Gdynia and Wroc∏aw. Investors have less appetite for secondary cities which carry a greater liquidity risk. One risk to look out for is your property being out-positioned. Even if your property is currently the leading retail center in the town there is a risk of being out-positioned by a newer scheme. Shopping centers reliant on an outof-town catchment are particularly vulnerable. The planning system in Poland is also more fluid and unpredictable than an investor might like. It is not unheard of for competing retail schemes to be granted permits in close proximity to each other, creating trading difficulties for tenants. As far as investor attitude to geography is concerned, there seems to be an east-west split on either side of Warsaw. Investors tend to prefer western Poland, with the eastern part often overlooked. There is a good case for certain parts of eastern Poland as well, for example in cities like ZamoÊç, with growth coming on the back of cross-border trade. And if the reserves of shale gas in the south-eastern part of Poland are exploited, that region could well experience above average growth.” Agata Seku∏a, head of retail investment CEE, Jones Lang LaSalle: “Cities between 100,000 and 400,000 inhabitants offer a well-developed retail segment. Unfortunately, at present these cities are attracting less interest from investors. The last shopping center sold in cites of that size was the Alfa shopping center [recently renamed Aura] in Olsztyn, purchased by British fund Rockspring in early 2012. We hope to see more investment transactions in cities of that size in the nearest future, which shall be driven by their potential, quality of existing product and limited availability of product in major agglomerations. But each center has to match its catchment. A city with 50,000 inhabitants has retail potential but not for a 40,000-sqm three-storey mall with an entertainment offer and high-end brands. There is room for a center with a good food offer, a DIY, electronics and cosmetics store, as well as a good selection of fashion brands. It has become visible though, that some cities suffer from oversupply, particularly, where two or more developers decided to deliver their retail schemes at the same time in comparable locations. A knock-on effect in such cases, is that retailers may face difficulties in deciding which center to choose.” ●
Strong regional market Practically all major deals this year are concentrated in major Polish cities. “Investors look at opportunities in all the major regional cities – Wroc∏aw, Poznaƒ, ¸ódê, Kraków, Szczecin, Katowice and Tri-City – very similarly,” Ms Seku∏a said. Each major regional city in Poland has its own characteristics, though. Wroc∏aw, for instance, is the second wealthiest city in Poland, behind Warsaw. At the same time, there is a rather large amount of retail space in Wroc∏aw. In Katowice, saturation of the retail market is the lowest, even with the recently opened Galeria Katowicka, Ms Seku∏a explained. Kraków is the second most populous city in Poland
Cities 200,000-400,000
Major agglomeration
Total
2012
169,330
87,030
38,600
83,417
378,377
2013*
133,900
7,500
15,000
311,100
467,500
2014*
175,350
108,150
150,877
64,190
498,567
*forecast
Source: Jones Lang LaSalle
lot of interest in shopping centers in Warsaw, which, justifiably, exceeds the rest of Poland. The Varsovian population and its wealth keep increasing, which means the retail scene can only get better and better,” Mr Habib said.
Understanding Poland Similarly to the office property market, retail deals are also dominated by foreign funds, such as Allianz, Atrium, Inter IKEA, Tristan, Blackstone, London & Cambridge and Invesco. “Large German funds have a strong presence in the market. Basically, the closer the location of the investor is to Poland, the better understood Poland is,” Mr Habib explained.
The bedrock of the market The head of First Property Group, which recently increased its ownership in Blue Tower, an office building located in Warsaw’s CBD, by another 19.7 percent stake to bring it up to 48.2 percent, believes that what the Polish market really needs is Polish money. “The ‘record’ volumes of investments by Polish investors in H1 2013, which represented 17 percent of the entire investment volume, may be higher than before, but it is still too low,” Mr Habib said. According to the CEO of First Property Group, international capital is far less
Looking for a shopping mall? Volumes of retail transactions 2003 -2013.
2,500 * Forecast
funds’ presence on the real estate market is so small, Ms Seku∏a from JLL pointed to legal restrictions limiting the involvement of pension funds in the property market. “Polish pension funds’ involvement is still marginal. This year, we haven’t seen a single transaction in retail with Polish capital, the JLL expert added.” Then there are also private equity funds, slowly gaining their foothold in the market. “[Transactions made by] private equity funds are usually much smaller in volume. They tend to invest ‘under the radar.’ These are usually transactions that don’t make the headlines,” she explained.
What’s in store? Will retail transaction volumes continue to be strong? Some say there may not be enough prime properties to satiate investors’ demand. They might be forced to look at properties they have thus far considered sub-prime. “There are limited acquisi-
tion opportunities for retail projects in the biggest cities and investors are increasingly seeking product outside of them,” Ms Seku∏a said. However, experts agree that next year Poland will see even more transactions than this year, but likely smaller in size. “Next year we are unlikely to see any sales on the scale of Manufaktura [sold in 2011 for €390 million] or Silesia City Center [sold in 2013 for €412 million], but there will certainly be plenty of retail transactions through the year. In my view there is now an increased focus on retail and there is a good chance it could beat this year’s volumes.” Mike Atwell, CBRE’s head of capital markets in CEE said. “I am seeing more investors focusing on retail and there will no doubt be opportunities through 2014. The challenge as ever, is the pricing expectations between buyer and seller,” Mr Atwell added. Beata Socha
COMMERCIAL DEVELOPMENT FOR SALE WARSAW, POLAND, UL.TASMOWA 5
2,000 1,500
OVER 9,500 SQM OF LAND WITH OVER 4,100 SQM OF BUILDINGS OF POSSIBLE INTEREST TO INVESTORS AND DEVELOPERS.
1,000 500 0 13 *
Ben Habib, CEO, First Property Group:
Cities 100,000-200,000
12
We’d rather enter a city with an existing shopping center and create a project that could become dominant in that market or different from its competition rather than enter a city where there is no one yet but there is no potential either.
Cities <100,000
20
“We focus on cities with a population of above 100,000. We believe these cities have potential for development. We are skeptical, however, when it comes to cities with some 50,000 residents. The purchasing power and the variety of tenants in such cities is too small which makes these projects just too risky.
Year
11
Anna Malarczyk-Arcidiacono, managing director, Futureal Management Poland:
15
New retail stock by cities (in sqm)
20
Lokale Immobilia asked a developer, an investor and an advisory expert which areas in Poland have the best potential for retail development.
www.wbj.pl
Major cities dominate 2013 pipeline
20
Less appetite for secondary cities
risk as long as it is reflected in the price,” Ms Seku∏a explained. Additionally, rent rates have to reflect the market value and can be neither too high, nor two low. If undervalued, the yield on investment will be insufficient: if overpriced, they will not be sustainable in the long run. Despite the growing density of shopping malls in major cities, developers are continually looking to build new ones, or expand on existing schemes. “There are a lot of already existing projects which are ready for expansion or refurbishing. These projects have some important advantages: they already exist so it’s easy to review what their results are and who their clients are. Based on that data, you can prepare a new strategy for them,” Anna MalarczykArcidiacono, managing director of Futureal Management Poland said.
4 20 05 20 06 20 07 20 08 20 09 20 10
er, a buyer of such a product will most likely come from a different, more opportunistic group willing to accept more
20 0
leased. “It doesn’t mean that centers under construction will not find a buyer. Howev-
03
➡ Continued from p. 11
20
NOVEMBER 12-17, 2013
Source: Jones Lang LaSalle
and has a very strong retail market. The city also attracts the most tourists out of all Polish cities. This generates some retail particularly in Galeria Krakowska, which is located next to the railway station. Still, Poland’s numberone location for retail investments is Warsaw. “There is a
stable. It ebbs and flows depending on extraneous factors, whereas Polish investors investing in Poland are much more likely to be stable long term investors. “Polish money could and should be the bedrock of the Polish market,” Mr Habib emphasized. When asked why Polish
DEVELOPMENT POTENTIAL FOR
OFFICES, HOTEL, SERVICES, LOCATION IN HIGHLY DEVELOPING DISTRICT
CONTACT: PKM DUDA S.A. UL. KLOBUCKA 25, 02-699 WARSZAWA TEL. (+48) 22 319 94 00 EMAIL: TASMOWA@PKMDUDA.PL
16
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LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
NOVEMBER 12-17, 2013
Office
The planned Warsaw Old Town construction project has worried UNESCO and has led to a city hall dismissal The recently announced launch of a new office project opposite the historic Royal Castle in Warsaw, and near the Zygmunt Column, has raised a substantial amount of controversy. One of the major issues with the planned scheme, called
“Business with Heritage,” is its proximity to the capital’s Old Town, which is on UNESCO’s World Heritage List. The World Heritage Centre in Paris should be contacted each time there are plans of renovation or construction work involving the listed buildings. In this case, however, the World Heritage Centre in Paris was not informed of the construction plans and sent a letter of concern.
According to professor Andrzej Rottermund, chairman of Poland’s UNESCO Committee and director of the Royal Castle Museum, the World Heritage Centre is likely to send inspectors. Warsaw City Hall has said that consultations with the World Heritage Centre are not necessary. It argues that the plot is not within the area delineated by UNESCO in 1980. A portion of a non-historical building on that plot would be pulled down for the
Panattoni ¸ódê East to expand by 11,300 square meters Industrial real estate developer Panattoni Europe will expand its Panattoni Park ¸ódê East by 11,300 square meters. The current tenant, TERGMediaexpert, a company specializing in the distribution of white goods, is expected to take on the additional warehouse space. At present TERG-Mediaexpert holds some 12,000 sqm at the site, although this will now grow to 23,300 sqm in total. The investment is being undertaken as part of a phase which sees the construction of
a fourth unit which is expected to be completed in May 2014. “We are very pleased that for the second time we have had the pleasure of advising TERG-Mediaexpert in choosing a suitable location for a warehouse unit,” said Tomasz Mika, director of industrial and warehouse space at Jones Lang LaSalle in Poland. Panattoni Park ¸ódê East is a modern distribution and logistics complex which offers some 140,300 sqm in warehouse space, with that area now forecast to grow to almost
160,000 sqm. It is located near the A1 highway which will eventually run from Gdaƒsk to Cieszyn and onto the Czech Republic, making it a attractive for logistics and distribution companies. Panattoni Europe is currently undertaking five investments which will offer a combined space of 120,000 sqm. Since 2005, when Panattoni started investing in CEE, the developer has built 1.9 million sqm in Poland and the Czech Republic. John Beauchamp
construction of the office complex. The building permit for the new scheme has also raised some eyebrows. It was issued by Jolanta ZdziechNaperty, head of the department of architecture and construction in Warsaw’s ÂródmieÊcie and mother one of the project’s designers – Bartosz Naperty. Ms Zdziech-Naperty was dismissed from her position following the controversy. She said that she did not inform her supervisors of the possible conflict of interest because her son’s role in the project was not crucial. Aleksandra S∏abisz
COURTESY OF GLAUBICZ GARWOLI¡SKA CONSULTANTS
New scheme on Plac Zamkowy marred by controversy
Warsaw officials claim the scheme will be raised outside the area protected by UNESCO
Vantage Development plans two new shopping centers Wroc∏aw-based developer Vantage Development, predominantly active in the residential segment, will develop two new shopping centers, one in Zielona Góra and one in Wroc∏aw. The Grona Park shopping mall in Zielona Góra will offer 3,000 sqm of retail space plus 1,000 sqm of office area.
The developer has already obtained a building permit. The center in Wroc∏aw is still at the design stage, with construction on both schemes scheduled to be launched in spring 2014. “We are currently in the process of commercializing the space. We are close to closing the deals with anchor
supermarket, electronics and fashion tenants,” company representative Szymon Matuszyƒski told daily Gazeta Wyborcza. Vantage Development recorded 5.5 million in profit in the first half of 2013, 12.2 percent more than in the first six months of 2012. BKS
NOVEMBER 12-17, 2013
LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
Logistics
COURTESY OF LIEBRECHT & WOOD
Manhattan distribution center sold for €30 million
Manhattan distribution center has 29,000 sqm of warehouse space
The new owner now has two logistics centers located within a 1 km radius, encompassing some 64,000 sqm of warehouse space in total CBRE Global Investors has acquired the Manhattan Business & Distribution Centre in Warsaw on behalf of the Pan European Core Fund for about €30 million. The facility was sold by Akron Investment Central Eastern Europe II. The Manhattan Business & Distribution Centre is an office and logistics facility located in the W∏ochy district of Warsaw, 2 km from Chopin Airport and 1 km from the A2 east-west highway. Comprising 29,000 sqm of warehouse space and 11,500 sqm of office space, its tenants include Will-
son & Brown, Konica-Minolta, Xerox, FujiFilm, Kolporter, Euro-Net and Velux. This is the second acquisition made in Warsaw by the PEC Fund, with the first being the Warsaw Distribution Centre (35,000 sqm of warehouse space), whose transaction was completed in December 2012. Both distribution centers are located 1 km apart and complement each other in the requirements of different tenants. Warsaw Distribution Centre has been designed for tenants looking for smaller business space, while the Manhattan Business & Distribution Centre mainly attracts medium-sized to large tenants. “The purchase of this center shortly after the acquisition of the Warsaw Distribution Centre demonstrates the interest of the PEC Fund in the logistic market and its sustained commitment to the
region,” said Richard Everett, PEC Fund Manager. “With these two assets, we have also been able to create a comprehensive offer to tenants looking for quality warehouse and office space in this attractive location,” he added. The properties offer warehouse and office space from 400 sqm up to 10,000 sqm. “The acquisition of this centre demonstrates the continued attractiveness of Central and Eastern Europe to pan-European real estate investors. We believe that two transactions by the PEC Fund carried out in less than one year demonstrates the revived interest in the region and will be one of many to follow,” said Martin Sabelko, managing director of CBRE Global Investors Central and Eastern Europe. Kamila Wajszczuk, Jacek Ciesnowski
Construction companies
Polimex-Mostostal sells assets worth more than z∏.110 million The troubled construction firm has negotiated a deal with its creditors and agreed to sell off its non-core assets for at least z∏.600 million Troubled construction company Polimex-Mostostal has agreed to sell over z∏.110 million worth of assets as part of the company’s asset-stripping and restructuring process. The firm will sell z∏.85.55 million in real estate holdings to Warsaw-based Molina group and a stake in one of its subsidiaries worth z∏.25 million to a Polish investment fund. The company previously said it would raise about z∏.200 million from the sale of its real
estate by the end of the year. The biggest of the transactions is the sale of Polimex’s stake in its subsidiary Zarzàd Majàtkiem Górczewska for z∏.25 million to Merkury – Fundusz Inwestycyjny Zamkni´ty Aktywów Niepublicznych, a subsidiary of PKO TFI. ZMG’s holdings include a hypermarket and an office building in Warsaw’s Wola district. The real estate sold to the Molina group include a 56,000-sqm plot in Kraków (for z∏.11 million), a 24,000sqm plot in Katowice (z∏.7 million) as well as several other properties, mainly in Warsaw and Kraków. Polimex-Mostostal, one of the main casualties of Poland’s road construction hangover,
has been on the verge of bankruptcy for years. One of the company’s subsidiaries, Centrum Projektowe PolimexMostostal filed for bankruptcy on November 6. In late October the company managed to negotiate a deal with its creditors. The firm agreed to sell off some of its assets by the end of 2013 in exchange for another extension on its payment deadlines. Polimex is now scheduled to repay the remainder of its debt between 2016 and 2019. One of the conditions for the deal is that the company raises no less than z∏.600 million by the end of 2015 through the sale of its noncore assets. Thus far it has sold property worth z∏.258 million. Beata Socha
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17
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LOKALE IMMOBILIA – SPECIAL MAPIC EDITION
NOVEMBER 12-17, 2013
Retail market
The great repositioning Andrew Kureth: We’ve seen a couple of large retail centers open over the past two months. What does Poland’s development pipeline look like now? Mike Atwell: In the majority of Poland’s largest big cities, the development pipeline for major retail schemes is nearly done. Prior to those two big schemes opening recently – Galeria Katowicka [which opened in September] and Poznan City Center [which opened in October] – the last big shopping center to open in a major city was actually Kaskada in Szczecin in 2011. So there have been a couple of years without a “big city’’ major shopping center opening. Why is that? The key reason is that each of the major cities has already seen a lot of development and some cities are reaching saturation point. All the major cities have a very good offering of retail centers from the bestin-class regional shopping centers to earlier hypermarket galleries dotted around the cities. Will we see more development in smaller cities then? When it comes to the small and medium-sized cities you can get situations of oversupply in some cases while in other cities there are opportunities. Some cities are over-shopped and others are under-shopped. The challenge is identifying the good opportunities in what is still a very competitive market. So where are the development opportunities? In my view the opportunities lie in some of the older schemes which haven’t been renovated, refurbished or updated. Only 25 percent of Central and Eastern Europe shopping center space that is over six years old has undergone refurbishment or repositioning. So there’s going to be a lot of activity in this sector targeting improvements to these older first- and second-
generation shopping centers. Is that where will we see investors become active? The core investors are still very active and seeking out core, prime city center schemes or major regional centers. I do however believe there are good opportunities in the firstand second-generation shopping centers as long as they have strong trading performance and a good track record. This will allow investors with strong asset management skills to create value and enhance the performance of these centers. That sort of asset will be traded to an opportunistic, value-add investor and we are starting to see more of these investors entering the market. So in my view the opportunities are in identifying a center where you can roll up your sleeves, work on releasing, repositioning, reconfiguration, and refurbishment – to take it from being a core-plus/opportunistic type shopping center and improve its quality and make it appeal to more core investors. You should be able to enjoy the yield compression on exit, because you improved your center, and there is the possibility of rental growth. However, you’ve got to be absolutely dead certain on your competition, the analysis, the trading potential. Do you think we will see any of the big headline deals like the sale of Manufaktura in 2012 or Dominikaƒska and Silesia City Center earlier this year? Those are the last three big prime deals. Prime, major city, dominant, top-class retail is extremely difficult to buy now, because it’s all traded or it’s held by a long-term investor. Take Warsaw – there is more development pipeline in Warsaw – the city can take it. But, you’ve got Arkadia, Z∏oty Tarasy, Mokotów – they won’t trade. Unibail owns those and will not sell, so there’s a great city like Warsaw, great poten-
tial to try and invest into it, but you can’t acquire the assets. And that’s the same in Poznaƒ: Stary Browar, that will not trade. Other big cities, like ¸ódê: Manufaktura, and Galeria ¸ódzka – all have long-term holders. In Kraków: Krakowska and Kazimierz now, longterm holders. So the opportunity to buy prime retail is really very difficult, due to pure scarcity of product, but we hope to find some opportunities. So then won’t we see developers looking to create more product to satisfy investor apetite? No – developers should create retail product off the back of consumer demand. Retail should only be developed if there is genuine consumer demand to support that retail. But isn’t Poland – and especially Warsaw – undersaturated? Warsaw, yes. But there are different stories depending on the city. Kraków is on the lower end of GLA relative to population, for example. Across the country there are some cities which are around saturation, some which are over. Nevertheless, saturation based on spending power should be part of the analysis, rather than just population base. There are still development opportunities, but it’s really more looking around some of the regional cities. There has been a lot of retail development over the last 10 years. And I think we’re going to see less new product coming through, and more repositioning and improving of existing centers. The investor demand, though, is very strong. Poland’s retail story is good. Poland’s story is good. Poland is right up there on the wish-list of investors. On a European level, the top destination is London, then it’s France, Germany, and then Poland. So if there is no prime product for them to buy, where will the core investors go? The problem is that the core buyer will only invest in core product – so they are more challenged. It is much more
COURTESY OF CBRE
Mike Atwell, head of capital markets in CEE at CBRE tells Lokale Immobilia why the development pipeline for large shopping centers is drying up in Poland and where the opportunities for investment are now
Mike Atwell, head of capital markets in CEE at CBRE, says that activity in the retail market in the near future will be led by repositioning core-plus assets difficult for them to find core prime product. And unless they change their investment views – which is unlikely – it’s going to be the core-plus, value-add, opportunistic investors that capitalize on those opportunities. We are working with some of the European funds which will look at these assets which may not be “core-core” but
hypermarket is within the investor’s ownership or held by the hypermarket operator.
good-quality and can be enhanced to create core product.
Why are hypermarkets so keen to reduce space? The downsizing is a cost-efficiency. It’s cost-driven because their margins are so thin. If they are trading off a 15,000sqm store and they can actually trade off of 6,000 or 12,000, that’s a huge cost saving for them. They probably need less storage space than they once did. Logistics has improved enormously and hypermarkets find themselves requiring less space than previously. So it has to do with IT, logistics, efficiencies of space. They just don’t need such large space. And they are so cost-driven that they are exploring any way to save, including downsizing space and reducing rent.
So what do you think will drive retail activity over the next 12 to 18 months? One big issue is that some hypermarket retailers are very keen to reduce their size, which actually offers an opportunity to a shopping center owner to work with a hypermarket operator and look at options of downsizing that hypermarket, re-leasing that space to new higher-quality tenants, which improves the tenant mix. One of the challenges here is whether the
What effect is e-commerce having on Poland’s retail market? A lot of people believe it will have a huge impact. There is certainly some impact but I do not believe that it will not have a major impact on the success of shopping-center retailing. That’s because shopping centers are about leisure: entertainment, spending time with friends and family. E-retailing is generally focused on products that can be purchased electronically, or
“Poland’s story is good. Poland is right up there on the wish-list of investors.”
which can easily be ordered online or delivered to your door, such as music, books, even black and white goods. If a retailer who has been hit by the impact of e-retailing is suffering, then the shopping center owner runs the risk of having to replace that tenant. If the center is performing well then there should be little problem in finding a replacement tenant that is most likely to be more of a fashion or leisure orientation. So we will probably start to see the tenant mix in centers evolve as the impact of e-retailing filters through onto the high street and retail centers. We will see less of those retailers who strive best with online sales (music, books, etc.). But I still foresee strong demand for comparison fashion, casual, footwear, cosmetics and leisure retailing in strong performing centers. On the European level as a whole our view is that e-retailing will not have a big impact on overall shopping center activity because still, it’s about leisure. People still like to go to the shop, to try on their clothes, to browse. You can browse a lot on line, but our research shows that in Europe it’s a very small percentage of shoppers who do so. Shopping centers will certainly remain the top retailing and leisure destinations. ●
MARKETS
NOVEMBER 12-17, 2013
www.wbj.pl
Stocks report
world stock indices DJIA
NASDAQ
15,593.98 (Nov 7 close)
S&P500
3,857.33 (Nov 7 close)
0.31% (for the week)
FTSE100
1,747.16 (Nov 7 close)
-1.59% (for the week)
DAX
6,708.42 (Nov 8 close)
-0.53% (for the week)
-0.39% (for the week)
Volatility is back
NIKKEI 9,078.28 (Nov 8 close)
14,086.80 (Nov 8 close)
0.78% (for the week)
-0.81% (for the week)
CHANGE: 16.26% (year to Nov 7)
CHANGE: 23.94% (year to Nov 7)
CHANGE: 19.47% (year to Nov 7)
CHANGE: 11.30% (year to Nov 8)
CHANGE: 16.71% (year to Nov 8)
CHANGE: 31.80% (year to Nov 8)
52-week high: 15,797.68
52-week high: 3,966.71
52-week high: 1,775.22
52-week high: 5,605.60
52-week high: 9,193.98
52-week high: 15,942.60
52-week low: 12,471.49
52-week low: 2,810.80
52-week low: 1,343.35
52-week low: 6,875.60
52-week low: 6,950.53
52-week low: 8,619.45
¸ukasz Wróbel Noble Securities SA Last week investors who might have disliked the recent low volatility on most global markets couldn’t complain about the lack of unexpected events leading to dynamic swings in asset prices. The interest rate cut by the European Central Bank was predicted by only 3 out of 70 economists taking part in a survey conducted by the Bloomberg news agency and immediately translated into a lower exchange rate of the euro in relation to most currencies. On Wednesday the Polish Monetary Policy Council announced it would keep the record-low cost of credit at least until mid-2014, six months longer than it had stated previously. The NBP head also suggested that if the government’s planned pension reform is postponed, it would lead to drastic cuts in public spending or an increase in taxes.
Major indices WIG
53,305.36 (November 8 close)
WIG30
2,653.63 (November 8 close)
08.11
07.11
06.11
05.11
04.11
31.10
30.10
29.10
28.10
25.10
24.10
23.10
22.10
08.11
07.11
06.11
05.11
04.11
31.10
30.10
29.10
28.10
25.10
2,500
24.10
50,000
23.10
2,560 22.10
51,000
21.10
2,620
18.10
2,680
52,000
17.10
53,000
16.10
2,740
15.10
54,000
14.10
2,800
11.10
55,000
21.10
52-week low: 2,286.99
18.10
Change year to November 8: 1.12%
17.10
52-week low: 43,159.57
16.10
52-week high: 2,729.38
Change year to November 8: 10.80%
15.10
Change for the week: -0.84%
14.10
52-week high: 54,536.95
11.10
Change for the week: -0.56%
Top 5 REGNON LSTCAPITA POLCOLORIT WANDALEX DMWDM
Closing 0.02 2.18 0.12 2.16 0.26
% change (week) 52-week high 100.00 0.05 63.91 2.29 33.33 0.12 32.52 2.17 23.81 0.35
52-week low 0.01 0.35 0.07 1.06 0.17
Top 5 BOGDANKA INGBSK KERNEL ASSECOPOL LOTOS
Closing 128.10 117.70 43.00 51.95 38.45
% change (week) 12.37 4.16 3.64 3.26 1.99
52-week high 136.74 123.50 72.35 52.70 45.45
52-week low 92.95 82.30 41.00 37.76 32.42
Bottom 5 INTAKUS CALATRAVA K2INTERNT MOSTALEXP MOBRUK
Closing 0.01 0.02 10.89 0.14 18.00
% change (week) -50.00 -33.33 -27.40 -26.32 -23.40
52-week low 0.01 0.02 7.79 0.12 18.00
Bottom 5 CCC HANDLOWY GTC EUROCASH PZU
Closing 119.90 111.70 7.64 45.50 454.00
% change (week) -7.77 -5.98 -4.26 -3.91 -3.16
52-week high 141.60 130.00 10.25 66.56 466.90
52-week low 58.16 80.89 6.58 38.17 340.50
52-week high 0.02 0.43 20.99 0.49 60.00
2,509.11 (November 8 close)
mWIG40
52-week high: 2,628.36
Change for the week: -1.36%
52-week high: 3,572.51
Change year to November 8: -4.46%
52-week low: 2,177.02
Change year to November 8: 33.97%
52-week low: 2,383.61
08.11
07.11
06.11
05.11
04.11
31.10
30.10
29.10
28.10
25.10
24.10
23.10
22.10
21.10
18.10
17.10
16.10
15.10
14.10
Adam Narczewski X-Trade Brokers DM SA
11.10
08.11
07.11
06.11
05.11
04.11
31.10
30.10
29.10
28.10
3,200
25.10
2,300
24.10
3,280
23.10
2,360
22.10
3,360
21.10
2,420
18.10
3,440
17.10
2,480
16.10
3,520
15.10
2,540
14.10
3,600
11.10
2,600
Rates on hold till mid-2014
3,441.22 (November 8 close)
Change for the week: -0.79%
3 600
SOURCE: WSE
08.11
07.11
06.11
05.11
04.11
31.10
30.10
29.10
28.10
25.10
24.10
23.10
22.10
08.11
07.11
06.11
05.11
04.11
31.10
30.10
29.10
28.10
318.0
25.10
13,000
24.10
326.4
23.10
13,400
22.10
334.8
21.10
13,800
18.10
343.2
17.10
14,200
16.10
351.6
15.10
14,600
14.10
360.0
11.10
15,000
21.10
52-week low: 296.29
18.10
52-week high: 352.36
Change year to November 8: 5.15%
17.10
52-week low: 9,660.90
349.32 (November 8 close)
16.10
Change year to November 8: 39.78%
NewConnect Change for the week: 0.11%
15.10
52-week high: 15,023.33
14.10
14,721.00 (November 8 close)
11.10
sWIG80 Change for the week: -1.39%%
Macroeconomic data from the US also caught markets by surprise. First, GDP growth picked up in Q3 to 2.8 percent (vs a forecast of 1.9 percent), and then on Friday the job market showed signs of strength as employers added more than 200,000 jobs in October (vs a forecast of 120,000). This shows that the US government shutdown didn’t have any major impact on payrolls. Despite the signals, equities failed to rise above the recent peaks. On the Warsaw Stock Exchange, mixed earnings reports gave investors some reasons to take profits. Bank Handlowy disappointed with earnings, falling by more than analysts expected. Its shares lost more than 5 percent. Meanwhile Bogdanka beat expectations and was rewarded with a share price increase of more than 10 percent in 5 days. ●
Currency report
Other indices WIG20
19
After two weeks of low volatility we finally saw some larger movements in the currencies market. We have central banks to “thank” for the change in circumstances. The European Central Bank cut interest rates by 25bp down to 0.25 percent, the lowest level in its history. There are still risks that growth and inflation will remain low in the euro zone. The EUR/USD had no other choice than to take a dive, from levels just above $1.35 it tumbled to its weekly lows of $1.33 in order to rebound by the end of the week to the $1.34 region. In order for us to see lower levels, the support of $1.33 needs to be broken. The z∏oty reacted to the ECB’s decision as well as to the Monetary Policy Council
(RPP) announcement. In its very “specific” forward guidance strategy, Marek Belka (RPP President) announced that interest rates would remain low at least until mid2014. That is good news for mortgage holders as well as for the stock market. Traders’ reaction was strong. The EUR/PLN, which has been trading close to its weekly lows of z∏.4.16, jumped to levels above z∏.4.19. The USD/PLN, after experiencing a corrective movement down to z∏.3.08, increased to z∏.3.13. In the upcoming weeks, the z∏oty market will be volatile and we could see some depreciation (EUR/PLN to z∏.4.24, USD/PLN to z∏.3.18) but the currency should regain value towards year-end. ●
currency rates 3.1698 08.11
SOURCE: NBP
07.11
3.1336 06.11
05.11
3.1241
3.1384 04.11
3.1
31.10
3.1045
0.0956 08.11
07.11 0.0954
3.1538
100JPY/PLN
3.2
0.0953 06.11
0.0957 05.11
04.11
0.0951 31.10
3.3806
3.3979 08.11
0.095
0.0956
RUB/PLN
0.100
07.11
3.3877 06.11
3.4004 05.11
04.11
3.3875 31.10
4.9582
5.0026 08.11
3.37
3.3950
CHF/PLN
3.41
07.11
4.9738 06.11
4.9723 05.11
04.11
4.8872 31.10
3.0844
3.1133 08.11
4.8
4.9413
GBP/PLN
5.1
07.11
3.0896 06.11
3.0981 05.11
3.0975 04.11
08.11
07.11
06.11
05.11
04.11
31.10
3.0507
08.11
07.11
06.11
05.11
31.10
USD/PLN
3.13
3.02
31.10
4.16
04.11
EUR/PLN
4.20
20
THE LIST
www.wbj.pl
NOVEMBER 12-17, 2013
Construction & Real Estate
Shopping Malls Rank
Ranked by GLA
1
2
3
4
5
6
7
8
9
10
11
12
13
13
15
16
17
18
19
19
Company name Address Tel./Fax E-mail Web page
Manufaktura ul. Drewnowska 58, 91-002 ¸ódê 42 664-9260/42 664-9290 wynajem@manufaktura.com www.manufaktura.com Arkadia Al. Jana Paw∏a II 82, 00-175 Warsaw 22 331-3400/22 331-3401 arkadia.recepcja@unibail-rodamco.com www.arkadia.com.pl Port ¸ódê ul. Pabianicka 245, 93-457 ¸ódê 42 298-1212/42 298-1117 portlodz@ikea.com www.portlodz.pl Bonarka City Center ul. Kamieƒskiego 11, 30-644 Kraków 12 298-6001/12 298-6002 bonarka@trigranit.pl www.bonarkacitycenter.pl Targówek Park Handlowy ul. Malborska 51-53, 03-286 Warsaw 22 334-4571/22 334-4592 kontakt@domoteka.pl www.targowek.parkhandlowy.pl Silesia City Center ul. Chorzowska 107, 40-101 Katowice 32 605-0010/32 605-0012 dorota.szczesny@ece.com www.silesiacitycenter.com.pl Park Handlowy Bielany ul. Czekoladowa 5-22, Bielany Wroc∏awskie, 55040 Kobierzyce 71 360-7734/71 360-7738 www.bielany.parkhandlowy.pl Park Handlowy Matarnia ul. Z∏ota Karczma 26, 80-298 Gdaƒsk 58 769-9444/58 799-9449 joanna.kwiatkowska@ikea.com www.matarnia.parkhandlowy.pl Magnolia Park ul. Legnicka 58, 54-204 Wroc∏aw 71 338-4466/71 338-4456 magnolia@mmgm.pl www.magnoliapark.pl Franowo Park Handlowy ul. Szwedzka 6, 61-285 Poznaƒ 61 879-9913/61 879-9913 joanna.kwiatkowska@ikea.com www.franowo.parkhandlowy.pl Centrum Handlowe Janki ul. Mszczonowska 3, 05-090 Janki 22 711-3000/22 711-3003 janki@apsysgroup.pl www.chjanki.pl Galeria Echo Kielce ul. Âwi´tokrzyska 20, 25-406 Kielce 41 332-1290/41 332-1063 galeria.sekretariat@echo.com.pl www.galeriaecho.pl Centrum Handlowe Karolinka ul. Wroc∏awska 152/154, 45-835 Opole 77 462-4800/77 474-3336 biuro@ch-karolinka.pl www.ch-karolinka.pl Centrum Riviera ul. Kazimierza Górskiego 3, 81-304 Gdynia 58 669-9480 biuro@centrumriviera.pl www.centrumriviera.pl Centrum Handlowe Europa Centralna ul. Pszczyƒska 315, 44-100 Gliwice 32 778-5000/32 778-5001 mnb@ec-management.pl www.europacentralna.eu Centrum Handlowe Krakowska 61 (CK61) Al. Krakowska 61, 02-183 Warsaw 22 538-9743/22 538-9798 biuro@estatefellows.com www.ck61.pl Z∏ote Tarasy ul. Z∏ota 59, 00-120 Warsaw 22 222-2200/22 222-2202 info@zlotetarasy.pl www.zlotetarasy.pl Galeria Mokotów ul. Wo∏oska 12, 02-675 Warsaw 22 541-3000/22 606-0756 info@galeriamokotow.pl www.galeriamokotow.pl Blue City Al. Jerozolimskie 179, 02-222 Warsaw 22 311-7000/22 311-7001 info@bluecity.pl www.bluecity.pl Galeria Krakowska ul. Pawia 5, 31-154 Kraków 12 428-9900/12 428-9920 galeria@galeria-krakowska.pl www.galeria-krakowska.pl
GLA (sqm) / GBA (sqm)
Super - / Total number of Hypermarket (sqm) / parking spaces / Number of shops / Shopping mall Roofed parking Annual visitors (sqm) spaces
www.bookoflists.pl
Leasing agent
Managing company
Selected tenants (name: space leased – sqm)
Year opened
126,000 159,000
28,000 98,000
3,000 -
300 20,000,000
Apsys Polska: Marek B∏´dowski, mbledowski@apsysgroup.pl, 22 701-9200
Apsys Polska: S∏awomir Murawski, smurawski@apsysgroup.pl, 42 664-9260
Real; Leroy Merlin; Cinema City; Pure; Zara; C&A; Van Graaf; Empik; Almi Decor; RTV Euro AGD
2006
111,900 287,000
30,200 80,000
4,300 4,300
270 21,000,000
Unibail-Rodamco: najem@unibailrodamco.com
Unibail-Rodamco: Anthony Vesin, arkadia.recepcja@unibail-rodamco.com, 22 331-3400
Carrefour: 18,400; Leroy Merlin: 11,800; Saturn: 5,627; Cinema City: 4,985; Peek & Cloppenburgh: 3,635; Holmes Place; H&M: 2,787; C&A: 2,221
2004
103,000 118,935
WND 83,688
4,500 2,350
WND WND
Inter IKEA Centre Poland: Anna Ratajczak, anna.ratajczak@ikea.com
Inter IKEA Centre Group Poland: Andrzej CieÊlik, andrzej.cieslik@ikea.com
IKEA: 33,000; Leroy Merlin: 11,176; Saturn: 5,082; Zara: 1,790; C&A: 2,477; H&M: 1,812; Reserved: 1,563; Marks & Spencer: 21,118
2010
92,940 234,000
20,621 72,319
3,200 2,580
180 12,000,000
TriGranit Management Polska: Natalia Pradelska, npradelska@trigranit.pl, 22 333-7188; Joanna Pó∏koÊnik, jpolkosnik@trigranit.pl, 22 333-7186
TriGranit Management Polska:Andrzej Seliga, aseliga@trigranit.pl, 22 333-7184
Leroy Merlin; TK Maxx; Peek & Cloppenburg; C&A; H&M; Zara; Empik; Smyk Megastore; Martes Sport; KappAhl
2009
90,600 100,000
2,000 16,600
4,600 -
115 5,500,000
Inter IKEA Centre Poland: Dorota Samulska, dorota.samulska@ikea.com, 22 711-2344
Inter IKEA Centre Poland: Olivia Skrzyƒska, olivia.skrzynska@ikea.com, 22 334-4571
IKEA: 23,100; Leroy Merlin: 14,800; Jula: 6,300;TK Maxx: 3,000; Sports Direct: 3,000; Smyk: 2,400; Piotr i Pawe∏: 2,000
2006
85,508 159,974
14,905 70,603
3,373 1,656
310 15,054,756
ECE: Piotr Kubis, piotr.kubis@ece.com; Wioleta Kalisz, wioleta.kalisz@ece.com, 22 310-6000
ECE Projektmanagement: Ewa Marcinek, e.marcinek@ece.com, 32 605-0010
Tesco: 14,905; Saturn: 5,681; Cinema City: 4,903; Van Graaf: 3,905; Smyk: 2,300; Pure: 1,997; C&A: 1,950; H&M: 1,845
2005
80,000 91,500
16,794 WND
4,000 WND
WND WND
WND
Inter IKEA Centre Poland: Ewa Kolondra, ewa.kolondra@ikea.com
IKEA: 16,568; Tesco: 16,794; Alma: 2,747; RTV Euro AGD: 1,148; OBI: 13,400; H&M: 1,988; McDonald’s: 2,000; CCC; Calzedonia; Cubus
1998
77,778 WND
2,928 WND
2,152 1,156
59 4,006,182
Inter IKEA Centre Poland: Kinga Zab∏ocka, kinga.zablocka@ikea.com, 22 711-2300
Inter IKEA Centre Poland: Andrzej Hnatiuk, andrzej.hnatiuk@ikea.com, 58 769-9444
IKEA; TK Maxx: 2,873; OBI: 13,400; C&A: 2,265; MediaMarkt: 4,047; Sport Direct: 2,166
2005
77,595 120,000
15,341 62,254
3,018 -
230 9,500,000
Master Management Group: Micha∏ Masztakowski, leasing@mmgm.pl, 22 584-5940
Master Management Group: Tomasz Waszkiewicz, t.waszkiewicz@mmgm.pl, 663-307-501
Tesco; Helios; Saturn; Peek & Cloppenburg; H&M; Reserved; C&A
2007
74,580 WND
11,846 15,972
3,000 -
28 WND
Inter IKEA Centre Poland: Ma∏gorzata Âwidziƒska, malgorzata.swidzinska@ikea.com, 22 711-2300
Inter IKEA Centre Group Poland: Andrzej Hnatiuk, andrzej.hnatiuk@ikea.com, 58 769-9444
IKEA; Carrefour: 11,636; Decathlon; OBI: 11,526; RTV Euro AGD: 1,263; McDonald’s: 2,000; Jula: 3,200; Smyk: 3,192; Jysk: 1,100; Sports Direct: 1,800
1995
73,000 82,000
28,000 45,000
2,700 -
100 6,000,000
Valad Europe: Artur Kudliƒski; Apsys Polska: Agnieszka Wójcik-Schabowicz, aschabowicz@apsysgroup.pl, 510-020-033
Apsys Polska: Anna Walerych, awalerych@apsysgroup.pl, 22 711-3000
Real; Leroy Merlin; Saturn; Cinema City; Go Sport; H&M; Reserved
1999
70,612 159,000
12,910 57,702
2,300 2,300
238 9,196,116
Echo Investment: Jaros∏aw Tutaj, jaroslaw.tutaj@echo.com.pl, 664-900-213
70,000 77,000
32,953 37,057
2,600 WND
123 WND
Mayland Real Estate: Anna Fabianowska, Mayland Real Estate: Iwona Malik, imalik@channa.fabianowska@mayland.pl, 22 546-9853 karolinka.pl, 77 462-4800
70,000 138,000
WND WND
2,500 WND
240 WND
Mayland Real Estate: Agata Pytlewska, agata.pytlewska@mayland.pl, 22 546-9809
67,000 80,000
10,776 27,000
2,300 -
100 WND
Helical Poland: Robert Gietko, rg@helicalpoland.pl, 605-451-060
EC Property Management: Monika Magner, mm@ec-management.pl, 32 778-5000
Tesco; Jula; SportsDirect.com; Castorama; Saturn; New Yorker; Ski Team; Jysk; Carry; RTV Euro AGD
2013
66,400 78,978
68,840 1,750
2,100 230
WND WND
NAI Estate Fellows
NAI Estate Fellows
Real; MediaMarkt; Komfort; Witek’s; Rusticano; Kolorowy Dom; Acerys
WND
66,212 159,626
5,115 61,097
1,132 1,132
206 WND
DTZ: El˝bieta Powichrowska, elzbieta.powichrowska@dtz.com, 22 222-2200
DTZ: Tomasz Hofman, tomasz.hofman@dtz.com, 22 222-3000
Multikino; Saturn; Van Graaf; Carrefour; Marks & Spencer; H&M; Zara
2011
62,317 85,343
5,273 57,044
2,200 WND
WND WND
Unibail-Rodamco
Unibail-Rodamco
Cinema City: 6,370; Carrefour: 5,273; Peek & Cloppenburg: 3,649; Empik: 1,763; Holmes Place Energy: 1,722; Go Sport: 1,360; Zara 1,310
2000
60,000 185,000
4,150 59,000
2,200 400
200 8,000,000
Zarzàd Blue City: Ron Melchet, Reshef, blue.city@bluecity.pl, Piotr i Pawe∏; Saturn; Zara; TK Maxx; C&A; ron.melchet@bluecity.pl, 22 311-7000; Jones Blue City: Yoram 22 311-7000 Royal Collection; Marks & Spencer; Toys’R’ Us Lang LaSalle
2004
60,000 130,000
4,982 60,000
1,400 -
270 WND
ECE Projektmanagement Polska: Ryszard Wysokiƒski, ryszard.wysokiƒski@ece.com, 12 428-9900
2006
ECE: Piotr Kubis, piotr.kubis@ece.com, 22 310-6068
Echo Investment Property Management: Zara: 1,594; TK Maxx: 1,594; Euro RTV: 1,532; Grzegorz Czekaj, H&M: 1,804; Bershka: 501; Pull & Bear: 347; grzegorz.czekaj@echo.com.pl, 41 332-1290 Stradivarius: 396; Douglas: 374; Sephora: 349
Real: 13,239; RTV Euro AGD: 1,003; Decathlon: 3,606; H&M: 1,650; TK Maxx: 3,312; Leroy Merlin: 10,530; Meble Agata: 9,184; Smyk Megastore: 2,300
Real: 17,000; Saturn: 3,500; Van Graaf: 3,000; Mayland Real Estate: Marek Ciszewski, Zara: 2,200; Reserved: 2,200; mciszewski@centrumriviera.pl, 58 669-9480 Helios: 2,900; TK Maxx: 2,200
Carrefour; Saturn; Peek & Cloppenburg; Zara; H&M; C&A
2002
2008
2013
THE LIST
www.wbj.pl
Rank
NOVEMBER 12-17, 2013
Company name Address Tel./Fax E-mail Web page
19
Stary Browar ul. Pó∏wiejska 42, 61-888 Poznaƒ 61 859-6022/61 859-6021 biuro@starybrowar5050.com www.starybrowar5050.com
60,000 WND
WND 112,000
1,000 800
210 WND
Fortis Nowy Stary Browar
22
Poznaƒ City Center ul. Stanis∏awa Matyi 2, 61-586 Poznaƒ 61 627-0190 biuro@poznancitycenter.pl www.poznancitycenter.pl
58,000 168,000
WND WND
1,564 1,164
238 WND
TriGranit Management Polska: Piotr Nalepa, pnalepa@pl.trigranit.com, 692-711-628
TriGranit Management Polska: Kamila Kiersikowska, kkiersikowska@trigranit.pl, 692-485-415
Saturn; TK Maxx; H&M; Piotr i Pawe∏; Toys ‘R’ Us; Royal Collection; Pure Jatomi Fitness; Stradivarius; Bershka; Pull & Bear
2013
23
Millenium Hall ul. Kopisto 1, 35-315 Rzeszów 17 770-0700/17 770-0703 informacja@milleniumhall.pl www.milleniumhall.pl
56,612 108,195
WND 54,617
WND WND
WND WND
Tomasz Tyczyƒski, tomasz.tyczynski@marma.com.pl, 500-253-003
sekretariat@milleniumhall.pl, 17 770-0702
WND
2011
24
Centrum Handlowe Atrium Koszalin ul. Paderewskiego 1, 75-736 Koszalin 94 344-6910/94 344-6918 koszalin@aere.com www.atrium-koszalin.pl
55,352 WND
9,963 44,108
1,600 470
125 WND
Atrium Poland Real Estate Management: Atrium Poland Real Estate Management: Ewa Castorama: 8,768; Multikino: 3,097; H&M: Katarzyna Dzieciàtko, kdzieciatko@aere.com, Machowska-Górna, koszalin@aere.com, 1,800; MediaMarkt: 4,335; C&A: 2,015; New 22 458-2002 56 658-8845 Yorker: 1493; Reserved: 1,083; Pure: 1,243
2008
25
Centrum Handlowe Atrium Promenada ul. Ostrobramska 75C, 04-175 Warsaw 22 611-7171/22 611-7272 promenada@aere.com www.warszawa.promenada.com
55,209 WND
4,030 WND
1,741 WND
209 WND
Atrium Poland Real Estate Management: Atrium Poland Real Estate Management: Alma: 4,030; Cinema City: 6,600; H&M: 2,342; Mariusz Majkowski, mmajkowski@aere.com, Micha∏ Bogaczyƒski, promenada@aere.com, Zara: 1,562; Go Sport: 1,550; Reserved: 1,034; 22 458-2069 22 611-7171 Royal Collection: 885
1996
26
Galeria Malta ul. Abpa Baraniaka 8, 61-131 Poznaƒ 61 658-1000/61 658-1020 biuro@galeriamalta.pl www.galeriamalta.pl
54,000 140,050
WND WND
1,900 WND
167 7,300,000
Neinver: Joanna Bieniek, jbieniek@neinver.com, 22 820-1200
Neinver Asset Management Polska: Tomasz Wojsz
WND
2009
27
Janki Park Handlowy Pl. Szwedzki 3, Janki, 05-090 Raszyn 22 711-2436/22 711-2302 inter@ikea.com www.janki.parkhandlowy.pl
53,600 60,000
2,400 16,200
2,300 830
50 3,400,000
Inter IKEA Centre Poland: Dorota Samulska, dorota.samulska@ikea.com, 22 711-2344
Inter IKEA Centre Poland: Olivia Skrzyƒska, olivia.skrzynska@ikea.com, 22 711-2436
IKEA: 25,000; Praktiker: 7,600; Jula: 4,500; Piotr i Pawe∏: 2,400; Gravitan: 1,800; RTV Euro AGD: 1,600; Komfort: 1,300
1995
28
Galeria Katowicka ul. 3 Maja, 40-097 Katowice 32 414-1290/32 414-1290 kontakt@galeriakatowicka.eu www.galeriakatowicka.eu
53,000 WND
1,841 WND
1,200 1,200
220 WND
Cushman & Wakefield: Anna Hofman, anna.hofman@eur.cushwake.com, 22 820-2020
Peek & Cloppenburg: 3,800; Multikino: 3,590; Neinver Polska: Agnieszka Pyzanowicz-Francke, Zara: 1,714; Reserved: 1,427; C&A: 1,713; RTV kontakt@galeriakatowicka.eu, 32 414-1290 Euro AGD: 2,245
2013
29
Zakopianka ul. Zakopiaƒska 62, 30-418 Kraków 12 293-3100/12 293-3101 biuro.zakopianka@dtz.com www.parkhandlowy-zakopianka.pl
52,846 69,805
22,899 29,947
WND WND
80 5,329,934
Balmain AM: Pawe∏ Materny, pawel.materny@balmain-am.com, 22 206-4050
DTZ: Dorota Szafraƒska-Czubaj, dorota.szafranska-czubaj@dtz.com, 22 222-3000
Decatlon; Cinema City; Intersport; RTV Euro AGD; Abra; Vision Express; CCC; Rossmann
1998
30
M1 Centrum Handlowe Czeladê ul. B´dziƒska 80, 41-250 Czeladê 32 296-2552/32 296-2559 m1czeladz@metro-properties.pl www.czeladz.m1-centrum.pl
52,468 67,362
24,873 27,595
1,680 -
106 WND
Metro Properties: Wanda Bakalarczyk-Pióro, leasing@metro-properties.pl, 22 500-0041
Metro Properties: Borys∏aw Niênik, 22 5000000
Real; Praktiker; MediaMarkt; TK Maxx; Martes Sport; Reserved; Venezia; Gino Rossi; Promod
1997
31
Centrum Handlowe Atrium Targówek ul. G∏´bocka 15, 03-287 Warsaw 22 675-8000/22 675-8080 targowek@aere.com www.atrium-targowek.pl
51,996 WND
20,690 31,306
1,790 372
136 WND
Atrium Poland Real Estate Management: Emilia Grabowska, egrabowska@aere.com, 22 458-2031
Atrium Poland Real Estate Management: Leszek Sybura, targowek@aere.com, 22 675-8000
Multikino: 5,845; H&M: 2,086; Zara: 1,437; RTV Euro AGD: 1,061; Smyk: 824; Empik: 662; Reserved: 823; Marks & Spencer: 640
1998
32
Centrum Handlowe Korona ul. Boles∏awa Krzywoustego 126, 51-421 Wroc∏aw 71 350-1300/71 350-1301 korona@apsys.pl www.centrum-korona.pl
50,000 55,000
21,500 28,500
2,200 850
74 6,000,000
Valad Europe: Artur Kudliƒski; Apsys Polska: Agnieszka Wójcik-Schabowicz, aschabowicz@apsysgroup.pl, 510-020-033
Apsys Polska: Izabela Turkiewicz, iturkiewicz@apsysgroup.pl, 71 350-1300
Real; Cinema City; Decathlon; RTV Euro AGD; Fitness Academy; Go Sport; CCC
1999
33
M1 Centrum Handlowe Zabrze ul. Plutonowego Ryszarda Szkubacza 1, 41-800 Zabrze 32 373-7551/32 373-7559 m1zabrze@metro-properties.pl www.zabrze.m1-centrum.pl
49,112 66,125
28,300 20,800
3,780 -
105 WND
Metro Properties: Wanda Bakalarczyk-Pióro, leasing@metro-properties.pl, 22 500-0041
Metro Properties: Grzegorz Mojszczak, 22 500-0000
Real; Praktiker; MediaMarkt; TK Maxx
1999
34
Galeria Jurajska Al. Wojska Polskiego 207, 42-202 Cz´stochowa 34 399-1160/34 399-1216 galeriajurajska@gtc.com.pl www.galeriajurajska.pl
49,000 102,000
3,375 45,625
2,000 1,800
165 WND
Jones Lang LaSalle: Teresa Pieczonka, teresa.pieczonka@eu.jll.com, 660-730-372
GTC: Piotr Myszka, pmyszka@gtc.com.pl, 34 399-1160
Alma; Inditex Group; LPP Group; RTV Euro AGD; TK Maxx; Peek & Cloppenburg; TruTrusardi iTerra; Intersport
2009
35
Pasa˝ Grunwaldzki Pl. Grunwaldzki 22, 50-323 Wroc∏aw 71 335-8770/71 335-8778 pasazgrunwaldzki@echo.com.pl www.pasazgrunwaldzki.pl
48,700 75,000
2,700 46,000
1,400 1,400
250 10,500,000
Echo Investment: Marek G∏adki, marek.gladki@echo.com.pl, 41 333-3212
Echo Investment Property Management: Maciej Sanetra, pasazgrunwaldzki@echo.com.pl, 71 335-8777
Inditex; H&M; C&A; Saturn; Empik; LPP; Intersport; Multikino
2007
36
M1 Centrum Handlowe Kraków Al. Pokoju 67, 31-580 Kraków 12 299-2753/12 299-2759 m1krakow@metro-properties.pl www.krakow.m1-centrum.pl
48,629 64,069
28,500 20,200
1,358 -
111 WND
Metro Properties: Wanda Bakalarczyk-Pióro, leasing@metro-properties.pl, 22 500-0041
Metro Properties: Krzysztof Kucharski, 22 500-0000
Real; Praktiker; MediaMarkt; TK Maxx; H&M; Sephora; Venezia
2001
37
Galeria Ba∏tycka Al. Grunwaldzka 141, 80-264 Gdaƒsk 58 721-8550/58 721-8555 galeria@galeriabaltycka.pl www.galeriabaltycka.pl
46,400 110,000
3,300 36,200
1,050 WND
194 10,200,000
ECE: Marcin Zió∏kowski, marcin.ziolkowski@ece.com, 22 310-6067
ECE Projektmanagement Polska: Marcin ¸ukasiewicz, marcin.lukasiewicz@ece.com; Andrzej Wàsowicz, andrzej.wasowicz@ece.com, 58 521-8511
Carrefour; Saturn; Peek & Cloppenburg; H&M; Reserved; Zara; Intersport; New Yorker
2007
GLA (sqm) / GBA (sqm)
Notes: GBA = Gross Building Area, GLA = Gross Leasable Area, WND = Would Not Disclose. Research for The List was conducted in November 2013. Only 37 selected shopping centers are listed here. Reported in cooperation with the Polish Council of Shopping Centers. The full list will be published in the Directory of Shopping Centers PRCH available at http://prch.org.pl/, Book of Lists 2014 and www.bookoflists.pl.
Super - / Total number of Hypermarket (sqm) / parking spaces / Number of shops / Shopping mall Roofed parking Annual visitors (sqm) spaces
Leasing agent
Managing company
Selected tenants (name: space leased – sqm)
Piotr i Pawe∏; Zara; Bershka; Nike; Royal Fortis Centrum 50/50 Project: Renata Gralec, Van Graaf; River Island; r.gralec@starybrowar5050.com, 61 859-6071 Collection; Reserved; Empik; Tommy Hilfiger
21
Year opened
2003
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to online@bookoflists.pl. Copyright 2013, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
22
SPORTS
www.wbj.pl
Soccer
NOVEMBER 12-17, 2013
Olympics
A hard-working hero Kraków officially Union in Chorzów. Mr CieÊlik scored both goals for Poland and led his team to a 2-1 victory. At the height of communist oppression there wasn’t a nation that Poles hated more, and with Lev Yashin, the thenbest goalkeeper in the world (possibly of all time) in their ranks, Mr CieÊlik’s feat was that much more impressive
COURTESY OF WIKIMEDIA COMMONS
Gerard CieÊlik spent his whole career with one club – Ruch Chorzów – for which he scored 178 goals, making him the top scorer for the club in its history. The majority of the goals (168 of them) were scored in league matches, making him the third-best scorer in the history of the Polish top-tier league. He won three championships with his side and played in 45 national team games in which he scored 27 goals. After he ended his career, he worked for Ruch in various capacities, first as a trainer, then moving to scout, to manager until he was finally named honorary president of the club. The most famous moment of his career was the World Cup qualifying game in 1957 against the Soviet Gerard CieÊlik in his youth
and he was lauded as a national hero by Poles. Raised during the time when World War II was ravaging Poland, like many of his compatriots living in Silesia he was forced to serve in the Wehrmacht. “In the morning we fought the Americans and in the evening we were surrounded by the Russians, that’s how quickly the front lines changed,” he wrote in his biography. He fled the German army, reached a US military camp and was promptly handed over to the Russians. He was supposed to be sent to a Siberian Gulag, but luckily he was spared such a cruel fate. Although he was a first-class soccer player, he lived in completely different times, meaning he had to work as a fulltime metal craftsman to support his family for most of his career. He was rewarded for his endeavors though, and in 1999 was awarded with the Commander’s Cross of the Order of Poland Reborn. Jacek Ciesnowski
submits Olympic bid Poland wants to host the Winter Olympic Games in 2022 along with Slovakia A week before the final deadline for submitting bids, Polish officials and their Slovak counterparts turned in their joint proposal for Kraków, along with Zakopane and the Slovakian resort of Jasna to host the 2022 Winter Olympics. The bid marks the first step in a long and expensive race to host the event. The International Olympic Committee will announce its final decision in July 2015. Kraków – which will be the headline host city – will compete against such cities such as Almaty in Kazakhstan, Beijing (along with Zhangjiakou to the northwest), Lviv in Ukraine, Oslo, and probably also Munich. Kraków would be the main host of the games, holding the opening and closing ceremonies as well as various iceskating events, bobsled and luge. The southern city of Zakopane would host skijumping, biathlon, snowboarding and cross-country skiing
SHUTTERSTOCK
Gerard CieÊlik, one of the best Polish soccer players in history, passed away on November 3, aged 86
Will Kraków host world’s best athletes in 2022? events. Slovakia, meanwhile, would hold most of the ice hockey games and all of the alpine skiing events. Geography could work in Kraków’s favor, as the next two Winter Olympics will be held in or near Asia: in Sochi, Russia in 2014 and in Pyeongchang, South Korea in 2018. But while location is one advantage, a lack of decent infrastructure is Kraków’s biggest drawback. While most of the city’s sporting arenas are either already in place or
currently being constructed, the region needs a huge boost in road infrastructure. The road from Kraków to Zakopane is one of the worst in the country and is often congested. Organizers don’t want to reveal how much the Kraków games could cost. Initial reports put the figure at around €5 billion, but that’s excluding the cost of infrastructure not directly connected with the games, such as roads and hotels. Jacek Ciesnowski
LIFESTYLE
NOVEMBER 12-17, 2013
www.wbj.pl
Concert
Exhibition
Tricky treat
Un-British Poland Gerald Howson – A Very Polish Affair Ongoing until December 31 The History Meeting House ul. Karowa 20 Warsaw
Tricky on the upcoming tour. Tricky has prepared a special treat for his fans as well, holding a competition in which people can record their own vocals over an instrumental track written by the artist. The best attempts were handpicked and rewarded with an opportunity to perform live onstage at a local fixture. Apparently the entries were so good that some of them will be invited to work with Tricky in the future on an album. Jacek Ciesnowski
Ticket prices start at z∏.110 (Wroc∏aw) and z∏.125 (other cities). For details on shows visit trickysite.com/live-dates
Tricky
Back in 1959, British photographer and painter Gerald Howson spent three weeks in Poland. He was sent here by The Queen magazine to chronicle genuine daily life during the height of the Cold War. Armed with two cameras and a portable darkroom, he visited Lublin, Kraków and Warsaw, taking hundreds of pictures in the process. “He knew about the war tragedy of Poles, but he was not aware of many details of this drama. Strolling along the streets ... he refrained from any photographic judgments. He just observed and photographed everything that in his mind looked un-British,” said exhibition curator Bogdan Frymorgen. Unfortunately Mr Howson’s pictures never saw the light of day – until now. The magazine that sent him to Poland decided not to run the article that the photos were supposed to have accompanied, and were hidden from public view for 50 years. Even so, they managed to
COURTESY OF GERALD HOWSON
Adrian Nicholas Matthews Thaws, better known as Tricky, is back with a new album and a new tour. Just six months after releasing “False Idols,” he will embark on a mini-tour across Poland. Between November 17 and 20 Tricky will visit Wroc∏aw, Warsaw, Kraków and Poznaƒ. Tricky, a trip-hop pioneer, rose to fame in the mid-1990s, primarily as a member of Massive Attack and then later on as a solo artist. His biggest success so far was his debut album “Maxinquaye.” With this latest album, he is revisiting his
roots. “This new album I’ll stand behind every track. I don’t care whether people like it. I’m doing what I want to do, which is what I did with my first record. That’s what made me who I was in the beginning. If people don’t like it, it don’t matter to me because I’m back where I was,” the musician defiantly proclaimed in a statement. Although a solo artist, Tricky often relies on a strong female voice for his albums. This time he opted for several different vocalists, choosing Francesca Belmonte for the most prominent role. Ms Belmonte will also accompany
SHUTTERSTOCK
Tricky Various cities November 17-20
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Mr Howson’s photos showed a side of Poland the communist authorities didn’t want the world to see cause some controversy. At the time, one Polish diplomat who saw the pictures called them “ a disgusting collection of dreary film frames,” furious that they depicted a destitute country with people living in hardship, a blatant contradiction to the official communist propaganda claims of the time.
Finally, everyone is now able to see Mr Howson’s photographs, which show a world unknown not only to the Brits, but also to most modern Poles as well. The exhibition is accompanied with a Polish-British album, a catalog and an application for the iPad. Jacek Ciesnowski
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