The Slovenia Times 140

The Slovenia Times, Slovenian magazine in English Language, volume 8, number 140, EUR 4,80

GUEST STAR 2010 REPORT May 2011

REAL ESTATE

Building for the future

Investments in global equities bringing a higher dividend yield.

Multiply your savings with equities issued by top-rated growing companies that pay above-average dividends and share their business successes with their investors.

KD Equity Income Mutual Fund

KD Equity Income (KD Delniški dohodkovni) is a new mutual fund. Transformed from the KD ID Investment Company, it has recently joined the family of 17 funds managed by the KD Funds (KD Skladi) Management Company. Although not yet part of the Umbrella Fund, KD Equity Income complements the range of investment opportunities for both existing and new investors. The Mutual Fund invests in shares with a higher dividend yield in all markets and different sectors. It is the first investment fund to pursue this type of investment policy in Slovenia.

The Mutual Fund is suitable for investors who:

• want to invest in equities (shares) of top-rated rated growing companies that pay above-average dividends and share their business successes with investors; • have a financial situation that allows them to assume higher risks coupled with higher return expectations (on a risk scale from 1 to 10, the risk associated with the Mutual Fund is estimated at between 7 and 8, i.e. higher risk); • want to keep their assets invested for a longer time period (from five to 10 years or more).

Further information For additional information on saving options, please call the free hotline 080 80 24, send an e-mail to nasvet@kd-skladi.si or contact any of the financial advisers at the KD Funds subscription offices listed on the website www.kd-skladi.si. You are also invited to join the Mutual Fund online using a qualified digital certificate at our web office www.kd-skladi.net.

Why invest in the KD Equity Income Mutual Fund?

• The stability of your savings is underpinned by the best companies The Fund will invest in growing global companies that are leaders in their respective sectors and, in addition to enabling capital gains, also pay out a substantial profit in the form of dividends. For investors, this type of investment generally represents a lower risk because the share prices of issuers with stable and growing dividends are subject to less fluctuation in global markets. The Fund will primarily choose companies in more mature sectors (health, telecommunications, energy, supplies).

• The future lies in going global Initially, the KD ID Investment Company only placed assets in shares issued by Slovenian companies. Later it expanded its investments throughout the European Union region. The transformation into a mutual fund has now opened new possibilities for investing in global capital markets. In the future, the KD Equity Income Mutual Fund will gradually replace its Slovenian holdings with global equity investments.

• Basic diversification of investments As a global fund without a specific geographical or sectoral focus, the Fund is suitable as a base of any investor’s portfolio, in particular since it will seek highpotential investments in all markets and thus enable optimum diversification.

• A portfolio hedged with derivative financial instruments The Fund’s assets will be hedged against market risk with standardised put options whose underlying ranges from equities and equity indices to index funds. In this way, the Fund will be hedged against significant declines in the value of equity investments.

Invest for a reason The KD Equity Income (KD Delniški dohodkovni) Mutual Fund is managed by KD Funds – Management Company LLC (KD Skladi, družba za upravljanje, d. o. o.), Celovška cesta 206, Ljubljana. You can find information about the Mutual Fund in the Prospectus including the Fund Rules and the Simplified Prospectus. The investor is entitled at any time to request the Simplified Prospectus, the Prospectus including the Fund Rules and the most recently published annual and semi-annual reports free of charge. These documents are available free of charge at all Management Company subscription offices, and in e-format on the website www.kd-skladi.si, along with a list of subscription offices.

The KD Equity Income (KD Delniški dohodkovni) Mutual Fund emerged from the transformation of KD ID, Equity Investment Company, plc (KD ID, delniška investicijska družba, d. d.) into a mutual fund. Details of the investment company and its business operations before the transformation into a mutual fund are available on the Management Company’s website. In the first two years following the transformation from an investment company into a mutual fund, the Management Company must charge all investment coupon holders who at the moment of the transformation were shareholders of the Investment Company a redemption fee should they wish to redeem their holdings. In the first and the second year following the transformation the redemption fee amounts to 12% and 8% of the investment coupon value, respectively. * All investors who agree to the KD Equity Income (KD Delniški dohodkovni) Mutual Fund Rules on the basis of a duly completed subscription form, or those who have become investors in the Mutual Fund as shareholders of the Investment Company upon its transformation into a mutual fund and have presented all the necessary details to the Management Company, and whose payments arrive in the Mutual Fund’s current account in the period from 21 April 2011 after 00:01 up to 1 September 2011 until 00:01 a.m. inclusive will in this period not be charged the subscription fees specified in the Mutual Fund Prospectus including the Fund Rules and published on the website www.kd-skladi.si. Discounts do not accumulate. Where several special benefits or discounts are offered, only the discount that is most favourable to the investor will be applied.

CONTENTS 3

May 2011 Business Partners

POLITICS

6

School system on the reform path

10 12

ECONOMY Redundancy worries for Črnomelj factory NKBM capital increase causes concern

FDI 15 16 17

Slovenia presents its investment projects to investors in London A match made in heaven for Inles and Ertl Glas Innovation special: A tissue that makes you feel better

18 Embassy diaries

Real Estate special 20 Overview of the real estate market 22 Woes continue in the construction industry 24 Interview: Ana Filipov, Schönherr law firm 26

Wood and furniture industries are fighting for survival

28

H.E. Andrew Page and Howard Swan give their view on golf in Slovenia

30

Regional overview: Croatia, Montenegro and Serbia

32

Crunch time for retail real estate in Slovenia

34

Rental market in Slovenia’s Alps has potential

36 39 40 41 44 46 47

LIFESTYLE Interiors under Slovenes Unique wooden products The Capital: Ljubljana Castle Guest Star Report Dine with Style: Otoče Castle Style news Column: Andja Marić

48

The Event Guide

Najmanjša dovoljena velikost logotipa je 25 mm.

T I P O G R A F I J A & I LU ST R A C I J A

Avtorja: Domen Fras Maja B. Jančič

Naročnik: Skai Center d.o.o., Šmartinska 154, Ljubljana

Projekt: Celostna grafična podoba Kristalna palača

Faza: Projekt za izvedbo

Datum: Oktober 2008

SLOVENSKA CESTA 5, SI–1000 LJUBLJANA +386 1 426 80 57 /8 E: mail@aparat.org T/F:

SPORTS 52

EBEL league Ice Hockey review

54

Every picture tells a story May 2011

Vsebina: Barvni Logotip angleška različica

PANORAMA

source: STA, Slovenian Press Agency

The Downfall With DeSUS out of the coalition, the minority government faces a situation with many possible outcomes.

Photo: BOBO

4

It has all began with executive committee of the Pensioners’ Party’s decision that party leave the ruling government coalition. The party president Karl Erjavec highlighted DeSUS’s opposition to the pension reform and the reasons that led to resignation of its member Duša Trobec Bučan as minister for local government and regional development.

Trobec Bručan stepped down over alleged lack of trust in her work. Erjavec added that DeSUS, which started the term of the incumbent ruling coalition with seven MPs before two decided to become independent deputies, would nonetheless try to act in a constructive manner in parliament.

DeSUS deputy group head Joško Godec stressed that the decision had also been backed by all of party’s MPs, whereas Roko Žarnić, a university professor who took over as the environment and spatial planning minister, said that he planned to stay in politics although his time as minister seems to be ending.

After DeSus, Zares as well decided to cut into the government. However it was not the party itself, but Gregor Golobič, who has announced that to

step down as well as the party leader and as a minister of higher education, science and technology. He will probably resign before the referendum on the pension reform, planned for early June. PM Pahor responded by urging Golobič to think twice before stepping down or at least until after the incoming referendum triplet. Pahor also said he saw no reasons for his own resignation, arguing that he is responsible for the stability of the country.

Slovenia is not in a political crisis, but only faces a coalition crisis, which it can overcome, Pahor said after a meeting of his party. Meanwhile, two independence figures, Spomenka Hribar and Ivan Oman, told Pahor should resign, but that a snap election is not a solution.

President Danilo Tuerk called for a solution to the crisis, possibly before the summer recess, favouring early elections as the best possible way out.

Turk also noted that the pension reform, which is facing a referendum, should not be tied to the faltering support for the government. He urged all political parties to take a step back and think about political interests after the referendum.

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The government’s reform efforts suffered a severe setback when voters rejected the mini jobs law in the 10 April referendum with a landslide 80%, with a third of the electorate turning up to vote. The immediate consequence is that the law, which would have abolished student work in its present form and introduced a new type of short-term employment, extending it also to pensioners and the unemployed, will be shelved and parliament may not pass similar legislation for a year. This was hailed by the biggest opponents of the law, students and trade unions, which called the vote a defeat of the government’s method of social dialogue. But far more important is what the vote presages for the pension reform, the linchpin of the government’s reform drive, which is expected to be put to referendum shortly. There is unanimous agreement that the pension reform law stands no chance of being confirmed, while the same fate will also befall the unpopular act on the prevention of undeclared work, which will be put to voters on 5th June.

More broadly, the outcome highlights the government’s inability to make much needed changes in the face of popular discontent and an opposition bent on undermining its every move, no matter how necessary it may be in order to kick-start economic recovery. The immediate aftermath of the vote thus saw calls for early elections, but PM Borut Pahor rejected this option, saying that the government will push ahead with what it deems is good for the country, no matter what the popular verdict is. This could mean a government relegated to caretaker role for the remainder of its term, exactly what the main opposition Democrats (SDS) proposed in their first reaction to the vote.

Editor-in-chief Jaka Terpinc editor@sloveniatimes.com

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UNDER THE PRESS 5 “As a citizen, I am concerned that politicians, many businessmen and other elite members of society behave as if they were only acting in a play, one which they can leave at any time.

Their play is about scoring against each other, and they are losing any touch with the reality of this country. This leads to catastrophe.

It’s also tragic that all of us watch their lousy performance and react to it. Instead, we should simply leave the theatre and let them play only with each other.”

The Judiciary

Unwanted Judge The National Assembly failed to appoint Rado Bohinc, legal expert and chancellor of the Primorsko University, as Constitutional Court judge. The rejection came as a surprise, after all coalition deputy groups promised to support him, but the secret ballot showed that three coalition deputies voted against him. The opposition was happy with the outcome, as it objected Bohinc’s appointment, accusing him of acting against Slovenia’s independence during the country’s battle to break away from former Yugoslavia. The SDS also accused him of issuing unfounded decisions reinstating the status of the erased (citizens of former Yugoslavia who were deleted from Slovenia’s permanent resident register) during his time as interior minister between 2000 and 2004.

Medicine

Assimilation Plan?

Homeopathy Legalized

Several Slovenian political parties have voiced harsh protest over the proposed new Hungarian constitution, which they believe excludes ethnic minorities in Hungary with a wording making them part of the Hungarian nation. Such assimilation attempts are unacceptable, they point out. According to the senior coalition Social Democrats and the opposition Democrats and People’s Party, striking minorities out from the constitution is a grave violation of European standards and a number of international treaties. The parties pointed at the 1995 Framework Convention for the Protection of National Minorities of the Council of Europe (CoE) and other minority protection documents of the international institution. Also they adressed the authorities in Hungary not to pass such constitutional changes in their vote expected in mid-April.Some 3,000 Slovenes live in Porabje, an underdeveloped region in the south-west of Hungary. The minority is struggling with a lack of funds and unresolved issues regarding the use of the Slovenian language in schools, official institutions and the media.

First homeopathic remedies have become available in Slovenia as the national Agency for Medicinal Products and Medical Devices approved their sale. Slovenian pharmacies have been preparing for their arrival for years, with more than 300 chemists having completed training in homeopathy.

Homeopathic remedies, which usually come in the form of granules or a solution, will be issued without prescription and are intended for self-treatment. Under the complimentary and alternative medicine act, passed in 2007, homeopathy can be practised in Slovenia by doctors who have got training in homeopathy and obtained a licence in line with this law. However, once licensed as a homeopath, a doctor in fact loses his doctor’s license, preventing him from practising conventional medicine, which is seen as a problem in Slovenia.

Photo: BOBO

Minorities

Law expert Miro Cerar in “Objektiv” on bad political behaviour

“Figuratively speaking, a citizen feels no safer because of a hundred kilos of heroin that the police has seized, since it doesn’t happen in his own environment. He is more interested in whether he is going to have bike stolen, his home burgled, or be mugged on his street. White collar crime is not seen as something that would threaten his security.”

Police Director Janko Goršek in “Dnevnik”, on why white collar crime doesn’t affect the image of Slovenia as a safe country.

“Be aware that years ago there was much speculating about the danger for Slovenian companies moving their manufacturing to China, where they would find cheap labour.

The reality facing Slovenia and Europe is just the opposite: Slovenes will become cheap labour for the Chinese.”

Gregor Golobič to journalists on the ultimate consequence of failing reforms.

Head or Tail?

The Slovenian central bank Banka Slovenije issued 12,000 commemorative two-euro coins bearing the image of Franc Rozman Stane and a fivepointed star. Franc Rozman was a volunteer in the Spanish civil war, where he became a battalion commander. Having returned home, he joined the Patrisan resistance against Germans and in July 1943, he took the helm of the High Command of the Slovenian partisan army with the rank of lieutenant general. He died in November 1944 in an accident while testing new mortars. The Coins sparked protests by political organisations who see the partisans as communist revolutionaries rather than occupation resistance.

Opposition leader Janez Janša called the issue a provocation on the 20th anniversary of Slovenia’s independence.

“During the cold war, things were particularly complicated for Yugoslav journalists because we did not belong to any side. We had to pay attention not to enrage the Russians more than Americans.

But it was not always like that.

During the Soviet invasion of Czechoslovakia, we indulged in criticism of the attack.”

Legend of political journalism Jurij Gustinčič, on reporting during the cold war.

Photo: BOBO

Numismatics

6

A WORD FROM THE EDITOR

POLITICS

Educational reform

Dictatorship of discontent

By Jaka Terpinc Several months ago, the newspaper Delo published a survey in which random Slovenians were asked about their preferences on energy issues. 73 per cent of those surveyed agreed that the future of power should ultimately be green, meaning focused on the sun, wind and water. However, 60 percent of respondents to the same questionnaire also supported the investment into TEŠ 6, another block of a coal operated thermal plant – a dirty energy of earth and fire. Where’s the logic, you may wonder?

The whole issue has already got sucked deeply into the vortex of bad political habits: multi-million building contracts promised, hopes for regional development raised, and ambitions for power over “power”. It is interesting that the political supporters of the coal plant have somehow gained the mantle of the good guys against the Zares party who, along with the environmentalists, have openly opposed the plan. For its previous affairs, Zares is known as a “greedy bastard”. And the tree-huggers? Who cares!

This controversy is characteristic of the Slovenian democratic attitude. We somehow sense the need for thorough changes in taxation, pension system, labour policies and so on but the distrust for the current government generates an eternal standstill.

And then, there is the referendum law.

When the fathers of the nation created Act 90 of the Slovenian constitution, they were probably a bit over-euphoric at the transition to a democratic society. What they didn’t take into account is the elitist argument that sometimes a democracy should be protected from its own “people”. Because of this act it is very easy for a group of MPs or ordinary citizens to call for a referendum on basically any lawmaking issue. To make things even worse, the referendum decision is binding to the government even if the turnout is as low as three per cent, which somehow corresponds to the minimum number of citizens signed under a referendum request. Above all, referendums are very expensive.

Our short history reveals fifteen more or less ridiculous, and generally lowly attended, referendums: whether shops should be open on Sundays (the results of that poll were widely ignored) and whether single women should be allowed a bio-medical insemination were two of the highlights (or lowlights). Not to mention two referendums on media acts, which essentially consulted a hypothetical Mr Alojz K., a retired car mechanic from Kobjeglava, on how to assemble the programming council of the national broadcaster. Obviously, in many cases the majority of people lack any idea of what the question is actually about or just don’t care. Since you cannot expect Alojz K to analyse the law he is voting on, it all goes down to political interpretations with essentially demagogic and simplified campaigns, full of ideology that play on ethos, pathos, and – mostly – fear.

In the current situation, the referendum has become an instrument of extortion. There is no need to repeat that we are dealing with a government lacking in any credibility and an opposition which constantly reminds one of the story of the scorpion and the frog. The level of governmental authority has actually become the measure for the quality of its acts: when the “little labour act” went down the referendum drain, the results matched the government’s ratings in polls.

Three more referendums have been set to June: On pension reform, prevention of undeclared employment and on declassifying the archives. Meanwhile, the government seems to have given up on the family law, well aware that the act on equalising homosexual families has no chance of withholding the referendum threat.

When Prime Minister Borut Pahor introduced his term as a period of “unpopular” yet inevitable changes, he probably didn’t account for such resistance. Now he’s probably been singing “should I stay or should I go,” knowing that the trouble won’t go away whatever he does.

Despite vocal speculations it should be reviewed, the referendum act is not likely to go either. Amendments to the constitution require a two third majority in parliament and there is probably more than a third of deputies who just love to play with referendums. editor@sloveniatimes.com

New School Deal Slovenia’s education system is facing significant changes, aiming at higher efficiency and better results. After two years of expert activities, it’s now up to politicians to pass the reforms.

by Tjaša Pureber

I

t has been more than 15 years since Slovenia has made any serious systematic interventions in its educational system at the levels of primary and secondary schools, apart from some minor shifts in different more or less successful directions. However, the new reform that was introduced at the beginning of April, and already caused some consternation among experts, will be a major milestone that will with no doubt have lasting effects on the educational system as we know it.

It is expected that questions such as the abolition of free preschool for a family’s second child will be at the centre of the public debate around the new reform.

However, the most important question remains whether or not this reform will contribute to the excellence of the pupils’ achieve-

ments, since they usually fall in the middle of the comparable countries.

The so-called Bela knjiga (White Book) of school reform was prepared by a group of 20 experts that were appointed with this task almost two years ago by Minister of Education and Sport Igor Lukšič.

They finished the document in the early April.

Safely in the middle

It is often heard among Slovenian politicians that the key challenge of the country’s future lies in a well-educated labour force, which can provide extra value on the global market. Nevertheless, the numbers show that Slovenia has been investing less and less in basic education every year since 2005, and has now, with a little over five percent of GDP, sunk below the OECD average of approxi-

POLITICS 7

Second baby free of charge: not any more

Photo: BOBO

With these numbers in mind, the reform will start at the beginning of the educational chain – preschools. Trends show, that in the previous decade there are more and more children enrolled in preschools every year, which correlates to the rising number of working mothers. Approximately, 70% of preschool age children were attending such schools in 2009. However, a closer look into the numbers show, that there are only 40% of children of aged one year attended preschool, while more than 90% of children aged six years attended preschool.

Presently, if a family has a second or more children in the preschool at the same time, they only have to pay for the first one.

This was one of the measures to encourage young people to have more children, introduced by now leading opposition party SDS in the previous government. Of course, now they are the most vocal critics of the new reform that will abolish this right. Instead, the reform proposes that second and other children would have 50% discount if they attended preschool at the same time as the first child.

Photo: BOBO

mately six percent of GDP invested into formal education.

What is perhaps even more worrisome, according to international research, is that Slovenian pupils usually reach a little over average, compared with the knowledge of their peers in comparable countries. For instance, according to the OECD PISA research project, Slovenian pupils fall in the average range in all three major subjects: reading, natural sciences and math. The most problematic is the reading literacy, where the results are in constant decline.

They have reached their lowest point in 2009, with Slovenia below both OECD and EU averages.

Another problem is that Slovenian children do not attain high levels of excellence. Only 0.3% of pupils are in the top of their generation, whereas the OECD average is 1.0% and the EU average is 0.6%.

Marks will come sooner

Primary schools will see the most changes if the reform passes with little modification. One of the key innovations is the introduction of numerical marks in the third grade, which is a year sooner than in the present system. The experts we spoke with agree with this change, saying that the material pupils have to learn is not as difficult in the third grade as it is in the fourth. Therefore, pupils will likely be faced with better grades in the third grade, which will contribute to a less stressful passage from one marking system to another.

They are also making significant changes in the learning of foreign languages. The first foreign language will be compulsory in the second year and optional in the first. The second foreign language will not be obligatory, which is considered to be a deeply flawed proposal by many experts and teachers.

There will be more external testing of the pupil’s knowledge as well. Reformers are proposing one exam at the end of first three years and then another two at the end of sixth grade and eighth grades.

Furthermore, they are proposing smaller class sizes in the last two grades for the main subjects of math, Slovenian and foreign languages. At this point, it should be mentioned that Slovenian primary schools have nine grades.

Pupils are usually around 5 or 6 years old when they enter primary school and 14 to 15 when they go to secondary school.

Dividing pupils

One of the more controversial proposals of the new education reform are the divisions of students into different levels in secondary school in the key subjects that are part of the Matura, the special exam at the end of four years of high school, which also serves for entry to university. Critics observe that it is unclear who will be the sorting students into different levels and according to which

Can the school system under Education minister Igor Lukšič make a move towards excellence?

criteria. Reformers respond that There are also proposals for sigthey are only giving their expert nificant changes in the vocational opinion, but that implementation training secondary schools. Those is not their responsibility. They schools that were offering threedefend the proposed change with year programs will now transthe fact that last year only 43% of form to a four-year curriculum. At all students were enrolled in gim- the same time, they are cancelling nazija – secondary schools aimed the programs that were offering a at preparing students for univer- “three plus two years” program. sity. In their opinion, we cannot Moreover, there will be more opexpect excellent knowledge from tions for those who attend such all of them, but the best should schools to get more preparation, have opportunities to develop if they decide to write a Matura even further. exam, which will enable them to The question is of course, how enter university. to ensure that those who need Public debate on the reforms more time to grow in their knowl- of education system will be over edge skills will be able to so if by the end of May, when it is exthey are sorted into groups for pected that the reform will enter “bad students”, and of course how into governmental and later parwill this affect their psychological liamentary procedure. Until then, state, which is most vulnerable in it can undergo significant chang2011_M_Bank_SLOtimes_101x70mm_S_FINAL_TISK_popr.pdf 1 3/16/11 3:25 adolescence. es.

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Economy

FACTS AND FIGURES

source: STA, Slovenian Press Agency

Prime Minister Borut Pahor has called on his political opponents to support pension reform in any upcoming referendum on the issue.

Reiterating that reform was inevitable and would be even harder to implement in the future, Pahor said rejection of the proposals would send a signal to financial markets that Slovenia was incapable of modernisation. The Prime Minister and his supporters believe that if the system is not changed, Slovenia’s credit rating could suffer meaning higher credit cost and in turn severe authority measures.

Although trade unions have collected enough support for a referendum to be called, Pahor is hopeful that they will ultimately decide not to call the vote: “Perhaps the masters of this decision will stop to consider whether this is truly the most useful act”.

Photo: BOBO

Final Appeal

The head of the country’s biggest union association has however indicated that the only the annulment of reform would stop it from forcing the referendum. “The unions’ goal is not a referendum, but to prevent the implementation of a reform that is unfriendly to most workers,” ZSSS boss Dušan Semolič said in response to Pahor’s appeal. “We cannot give in here because such is the will of the people now, so this is no longer the union’s cause”.

The standoff between the government and trade unions is such that most believe a referendum will take place – and that the government will lose. Many are concerned by the costs that will be involved in this outcome. Head of the junior coalition Pensioners’ Party (DeSUS) Karl Erjavec asserts that the government will “lose the referendum; what is more, the referendum will cost

ZSSS boss Dušan Semolič

EUR 4m, which could go into the pension purse instead.”

Pahor’s appeal for support came just days after his government suffered a humiliating defeat when its mini jobs act, a part of the economic reform package, was rejected in a referendum.

Food industry

Retail

Agriculture

Retail

Žito Opens Four Bakery Shops

Tuš Holding Sells Supermarkets in Serbia

Lobbying for CAP Reform

Bids for Mercator Extended

Tuš Holding has sold all of its six supermarkets in Serbia. The stores were sold to Idea, a company owned by Croatian food group Agrokor. According to the holding, the firm also took over all employees although one shop has been closed. The sale comes after the retail chain Tuš, the holding’s primary business, was reported to be having trouble in paying its suppliers and the holding reached a deal with banks on a seven-year moratorium on loans. While the Celje-based group has been tight-lipped about its debts and dealings with banks, the daily Dnevnik reported back in September that total debts of Tuš Holding amount to EUR 670m and that it had EUR 6.6 of outstanding liabilities for every euro in capital.

The holding did not disclose the financial details of the sale to Idea.

The Slovenia Times

Slovenia has reservations about reform of the European Union’s common agricultural policy according to one of its government’s ministers. Agriculture Minister Dejan Židan presented the concerns when he met with European Agriculture Commissioner Dacian Ciolos last month. He says the two biggest challenges for Slovenia are the abolition of “historical entitlements” and support for disadvantaged areas. Historical entitlements (which depend on the value of subsidies paid in a reference period) affect 30 percent of farm production in Slovenia, especially cattle breeding. Židan says Slovenia is therefore seeking a gradual transition to a “non-historical” system that would allow for other mechanisms to offset the expected loss of income for farmers. The minister has also been lobbying hard for some sort of preservation of payments for less favoured (especially mountainous) areas as 74 percent of Slovenia’s farmland is in those areas, where the cost of producing food is higher and therefore requires subsidies. Židan has said that the European Commission is now going to examine the proposals he put forward.

Bids for a 23.34 percent share in Mercator have been extended past the previous deadline, the stake’s current owner has announced.

Beverage group Pivovarna Laško says that “due to changed circumstances in the process of sale” it has “thanked some bidders for their cooperation while continuing negotiations with the others.” Bids for the stake in Slovenia’s leading retailer have been submitted

by Croatian food and retail group Agrokor and investment funds Mid Europa Partners and Warburg Pincus. Unofficially, negotiations only continue with Croatia’s Agrokor.

Mercator shares sliding (in EUR per share) 200

Source: LJSE

Slovenia’s leading bread and pasta maker Žito has opened four new bakeries. The shops, based in Ljubljana and Koper, will offer traditionally baked bread without additives. According to Žito chairman Toni Balažič, the firm has developed 60 new products for the shops and aims to promote healthy eating among Slovenians. “We want to increase the share of the healthier and better bread that also has a higher added value.” Žito, which bakes between 70 and 80 tonnes of bread each day, plans to open six more such bakeries in the coming year.

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21 Apr 11

9 Economic growth

Gaming industry

Labour

Home appliances

IMF Downgrades Growth Forecast

Management of Troubled Casino Steps Down

Unemployment Remains at Record Level

Gorenje Introducing Premium Brand

Source: IMF

Modest GDP growth 2,5 Slovenia

The board of gaming company Casino Portorož has resigned.

Chairman Marjan Bolka and management board member Dušan Mes tendered their resignations last month. Their departures come a month before the end of their terms and amid speculation that the state-owned company is in serious financial trouble. It recorded a EUR 1.7m loss in 2010 alone.

According to the daily Dnevnik, state-owned funds KAD and SOD had made a cash injection conditional on an overhaul of the management.

2 Euro area

1,5

1

Energy

Decision on New TEŠ Generator Delayed 2010

2011

2012

The operator of Ljubljana’s Jože Pučnik Airport has posted a fall in profits. Aerodrom Ljubljana recorded EUR 4.28m of net profit in 2010, a 30 percent fall. Revenues remained steady at EUR 33.88m. The firm says its results results were affected by the financial troubles of the company’s main partner, Slovenian flag carrier Adria Airways. While Jože Pučnik Airport saw a slight drop in passengers in 2010, the share flying with Adria Airways did increase by 1.6 percentage points to 77.7 percent.

The number of flights fell by 6.4 percent to around 42,600 in 2010.

On the other hand, the volume of transported cargo increased by 20.8 percent to around 17,300 tonnes.

Number of unemployed keeps going up 120,000

100,000

60,000 Jan 09

Plans to build a new generator at the Šoštanj coal-fired power plan have been postponed once again due to fresh concerns about the project. According to the economy minister Darja Radić, an inspection of TEŠ’s operations suggested “quite a number of serious reasons to suspect” that laws were violated and revealed the . However, the minister adds that the suspicions were not so serious as to warrant the project being suspended. The government now plans an audit of the EUR 1bn-plus project and a postponement of the decision on the state guarantee needed for a loan from the European Investment Bank (EIB).

Gorenje is to launch a premium brand of kitchen appliances.

Gorenje+ is being launched in a bid to boost the sales of upmarket products with higher value added.

Head of marketing Aleksander Uranc says the strategic brand will in the long run become Gorenje’s leading European brand.

Gorenje+ will be launched in Germany, Austria, Russia, Ukraine, Scandinavia, the Czech Republic and Slovenia this spring.

Automotive industry

80,000

Feb 11

Marketing

Mobitel Named Best Advertiser

Logistics

Aerodrom Ljubljana’s Profits Drop

The number of Slovenians registered as unemployed remained at a record level in February, the Statistics Office has revealed.

Some 12.3 percent of the population were out of work in the second month of 2011. The figure of 115,608 was an increase of 476 over January and a 15.9 percent year-on-year increase. The unemployment rate among men and women remained level at 12 percent and 12.7 percent respectively.

Meanwhile, the number of people in paid employment grew by 0.1 percent to 727,833 in February, down 2.9 percent year-on-year.

Source: SURS

The International Monetary Fund (IMF) has downgraded its projections for Slovenia’s economic growth in 2011. The Fund now forecasts two percent growth this year, down on the previous estimate of 2.4 percent. It does foresee 2.4 growth in 2012, however. The projections of growth are somewhat above the eurozone average, where economic growth is anticipated to stand at 1.6 percent in 2011 and 1.8 percent in 2012. The IMF’s longer-term predictions tell a similar story: it forecasts a 1.9 growth for Slovenia for 2016 while the eurozone average stands at 1.7 percent.Inflation in Slovenia is projected to stand at 2.2 percent this year and 3.1 percent next year.

The average for the eurozone is expected to be 2.3 percent in 2011 and 1.7 percent in 2012.

Mobile operator Mobitel has been named best advertiser and Futura DDB best advertising agency at the 20th Slovenian Advertising Festival. Futura DDB tied for first with Publicis in points, but it won by virtue of having received more awards in individual categories.

Mobitel was honoured for having “surpassed traditional limits of advertising” and underpinning all of its activities with a distinct corporate communication. The award for advertising personality of the year went to Janez Rakušček, creative director of agency Luna\TBWA.

Car Part Makers Establish Green Partnership Representatives of eight Slovenian car industry companies have formally established a partnership to find green methods of transport.The SiEVA (“Synergic Eco Safe Automobile”) partnership includes Cimos, Hidria, Iskra Avtoelektrika, Iskra Mehanizmi, Kolektor Group, Mariborska livarna Maribor, Polycom and TPV. The joint company, modelled after similar associations around the world, will be headed by the vice-president of the management board of industrial group Hidria, Miloš Šturm. The partnership will associate know-how, potential and infrastructure for developing new solutions in the field of advanced internal combustion engines, hybridisation and electrification of vehicles, safety, comfort and production excellence.

Automotive industry

Adria Mobil Boosts Sales Camper and caravan maker Adria Mobil has announced a growth in sales.

The Novo Mesto-based firm says it sold more than 8,800 vehicles last year to post EUR 203m in net sales revenues, up 27 percent year-on-year, and a EUR 7.5m net profit. It says that it sales and market share on the European market is increasing even though the market itself is shrinking. The company invested in development EUR 3.9m last year, which is 35 percent more than in 2009, and launched five new products.

May 2011

10 ECONOMY

Danfoss Compressors

Compressed Workforce It was last November that Danfoss Compressors – a Danish firm with a successful Slovenian arm – was formally taken over by a German holding. The new owner declared a commitment to driving its acquisition forward to further success. But five months later and the picture for workers at the compressor manufacturer is bleak. With significant layoffs announced, most now fear for their futures – while the government fears for the Slovenian region the company has called home.

By Claire Read Photo: BOBO

kia and it is this move which will leave most of Secop’s Slovenian employees without a job.

Søholm says the decision has been taken to better meet ongoing fierce competition and challenges in the global compressor industry.

But, predictably, worker organisations are dismayed. The head of Slovenia’s largest trade union association has rejected all the arguments made for the relocation.

Dušan Semolič of ZSSS says that the corporate tax rate in Slovenia is lower than that in Slovakia; that labour costs at the Črnomelj plant are low; and that employment legislation in the country is not as rigid as it sometimes implied.

Broken promises: only six months after taking over Danfoss Compressors, the German holding Aurelius AG announced it is to make up to 300 workers redundant this year alone, with more redundancies to follow in 2012

Cheaper location: Aurelius AG is moving the production to Slovakia

T

hose who go to the website of AURELIUS AG are offered a very simple explanation of the organisation’s purpose. The site states simply that it is “an industrial holding with a long-term investment horizon”.

Anyone reading on will learn that the German group’s focus is on taking over companies “with potential for development”. A little later the holding asserts that its “responsible actions and sustainable concepts focus on the benefit of all stakeholders.”

One suspects that the Slovenian employees of Danfoss Compressors – taken over by AURELIUS AG late last year and renamed Secop – would struggle to agree with the last part. Last month, it became clear that most of them are going to lose their jobs. Some 250 to 300 will be made redundant this year. Another four hundred or so will go in 2012. Once the process is over, the workforce will have shrunk by two thirds.

A shock

The news of the layoffs was greeted with confusion. Under the management of the Danish firm Danfoss, the Črnomelj-based Slovenian wing had generated 40 percent of the group’s total revenues.

In 2010, it produced and sold some 4.5 million compressors generating an estimated revenue of EUR 154m and a pre-tax profit of EUR 8m. Efforts to improve efficiency and develop an improved product – made after a tough, loss-making 2009 – seemed to be paying off.

Indeed, when the takeover by AURELIUS AG was announced it barely made headlines. The statements by the holding all emphasised continuity, explaining that the newly-renamed Secop would continue to do business with its previous owners Danfoss and that the takeover would not affect the staff on a day-to-day basis. The firm’s managing director issued an upbeat message: “With AURELIUS as our new shareholder,” Mogens Søholm said, “we have found a good partner who will support us in further developing and growing our business.”

Fierce competition

Half a year later and it is clear that AURELIUS does not believe that such development and growth can take place in Slovenia. Instead, it plans to relocate the bulk of production to SlovoThe Slovenia Times

Political concern

Pol it ica l leaders a re worried by the move too. The mayor of Črnomelj, Mojca Čemas Stjepanovič, believes that the redundancies might affect the South Eastern region more than the bankruptcy of clothing giant Mura affected Prekmurje. She estimates that once the relocation has been completed, unemployment in Črnomelj will reach 15 percent.

The government seems to be taking such warnings seriously.

Following the announcement of the layoffs, it adopted a set of temporary development measures for municipalities along the Kolpa river. It has also agreed a EUR 20m development promotion programme. And it has committed to helping Secop find a strategic partner to take on the workers who are not being made redundant – something the compressor manufacturer says it is keen to do.

“We believe that seeking a strategic partner for our components manufacturing provides a sustainable perspective to a large number of employees in Črnomelj,” says Søholm.

The fact remains that, even if such an investor is found, there will be far more workers who lose their jobs at Secop than keep them. But at this worrying time for Črnomelj, the feeling is that something is better than nothing.

Carefree travel abroad The Summer is rapidly approaching and with it time out, travel, the seaside… Mobitel’s carefree price plans make sure that you can relax when using your mobile abroad as well.

Come the Summer many of us take trips, embark on shorter or longer travels or just go laying about some nice beach. When we are travelling abroad, our mobiles are indispensible accessories. But due to often rather expensive roaming charges many are still cautious when using their phone overseas. The concern, however, is unnecessary as the charges are continually decreasing. More to the point, it is now possible to easily make a reliable cost estimate when making a call – Mobitel users are charged the same price regardless of the roaming operator network. By setting network search to ‘automatic’ on a device we can be assured of the best reception possible and always at the same rate. Yes, roaming is most affordable in EU countries of the Eurotariff zone, but the prices are also reasonable in Croatia and other favourite tourist destinations.

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When abroad we still tend to make most use of the more basic mobile services – namely making phone calls and texting. Mobitel has therefore introduced price plans that enable a bulk purchase of minutes or texts, so enabling better cost control for customers. Mobitel is now offering Talking Hour and 100 Texts price plans for the EU and the Balkans (including Bosnia and Herzegovina, Croatia, Montenegro, Kosovo, Macedonia and Serbia). Choose the Talking Hour price plan and you’ll get 60 minutes of incoming and outbound calls and videocalls. Opt for the 100 Texts plan and you’ll receive 100 texts to be used within the charging period. To activate the desired price plan just fill out the Additional Services form before your departure.

Even when abroad you may have times when you want to use mobile internet, for instance for checking email, finding local services to

Mobitel is now offering Talking Hour and 100 Texts price plans for the EU and the Balkans (including Bosnia and Herzegovina, Croatia, Montenegro, Kosovo, Macedonia and Serbia).

Choose the Talking Hour price plan and you’ll get 60 minutes of incoming and outbound calls and videocalls. Opt for the 100 Texts plan and you’ll receive 100 texts to be used within the charging period.

decide which tourist attractions to see or just for browsing newspapers. Yet, due to high data transfer charges in the past, people today are still quite sceptical about using mobile internet in foreign networks. But with Mobitel data plans for abroad it is possible to make sure that at the end of the month the bill will not be a surprise. There are three plans to choose between: Internet Abroad S with 10 MB data transfer; Internet Abroad M with 30 MB data transfer; and for the most demanding users Internet Abroad with 100 MB data transfer. In short, it is easy to pick the price plan which best suits your needs.

The impressive selection of mobile services gives you the chance to select additional functions. In this way you can choose diverse and accessible modern technologies even when travelling abroad on holidays, business or just go for a nice sunbath on a sunny beach.

For more details on Mobitel’s price plans and services abroad visit www.mobitel.si.

For more information on Mobitel services and special offers visit www.mobitel.si, your nearest Mobitel Centre or, if you are Mobitel user, call the Mobitel Customer Support Centre for free on 041 700 700 (from abroad +386 41 700 700).

12 ECONOMY

Finance

In a State A capital increase has taken place at Slovenia’s second largest bank – and with it a major debate over state involvement in the banking sector. While all acknowledge the additional funds will help NKBM accelerate crediting of businesses and also expand into foreign markets, many are critical of the what they see as bythe-back-door state participation in the increase.

Ba Maja Dragović

percent stake. The Capital Assets Management Agency (AUKN) took advantage of the state’s preemptive right, as an existing owner, to purchase shares. But it did so by transferring the purchase right to state-owned power utility Gen Energija, national grid operator ELES and postal company Pošta Slovenije. The three firms reportedly bought EUR 20m, EUR 7.5m and EUR 20m worth of fresh shares respectively and, in so doing, ensured continued and strong state involvement in NKBM.

Photo: BOBO

Political meddling?

Not without consequence: many are worried that AUKN’s involvement in NKBM capital increase will impact badly on Slovenia’s image as an investment destination

Economy Minister Darja Radić has argued that the agency’s decision to carry out the capital increase on behalf of the state runs contrary to previouslystated government policy.

I

t was on 4 April that NKBM launched the first stage of its capital increase, valued at some EUR 132.4m. Existing owners, and subsequently other investors, were invited to subscribe to just over 13 million new shares to be double-listed in Ljubljana and Warsaw. The result was a muchneeded influx of money into Slovenia’s second largest bank – in the first round investors bought over eight million fresh shares, worth a total of EUR 64.45m. In the second round of the increase, 15 percent of shares were made available to smaller investors in Ljubljana and Warsaw and the rest to domestic and foreign institutional investors.

There was one big potential investor which, officially speaking, decided not to participate in the recapitalisation: namely, the state. Having recently supplied Slovenia’s largest bank NLB with fresh investment, the government took the decision to step back from the NKBM capital injection. And yet some fancy footwork has ensured that the state will retain its significant influence in the bank in which it has owned a fifty one

This move by the guardian of the state’s capital stakes in companies has quickly become a very hot political potato. Allegations have flown that Finance Minister Franc Križanič interfered in the decision-making process at AUKN, urging the body to find a way to purchase shares. Križanič has strongly rejected the claims.

He is not the only one issuing denials over the matter – Prime Min-

ister Borut Pahor has been forced to defend himself against suggestions that he allowed himself to be manipulated over the capital increase. The premier says the agency’s management presented legal and economic reasons for state participation in the increase; reasons which convinced him that the agency’s decision was the right one. He has assured the public that AUKN remains a politically independent body.

But even some within Pahor’s own government are unconvinced by his claims. Economy Minister Darja Radić has argued that the agency’s decision to carry out the capital increase on behalf of the state runs contrary to previouslystated government policy. Gregor Golobič agrees. The Minister for Higher Education, Science and Technology says “the prime minister is very wrong in this case”.

“The move of the agency, which is obviously sponsored by the Finance Ministry, is an irresponsible, harmful action which runs

ECONOMY 13 ture investments,” the company added.

Source: LJSE

NKBM shares losing value (in EUR per share) 12

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Comfort_Class_165x210.pdf

3 Jan 2011

21 Apr 2011

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Those in the Slovenian banking industry, meanwhile, are concerned that the agency’s actions could harm the image of the sector.

“Treating NKBM, which wants to get listed on a foreign stock exchange, in this way can cause the bank a lot of damage, which gives a bad impression about the entire banking system and financial stability in general,” believes France Arhar, chairman of Unicredit banka Slovenije.

NKBM may now have the additional capital that its management has long argued it needs. But the question many are now ask22.04.2011that 09:47 ing is: at what cost?

ELES expressed hope that AUKN would task the company to sell the shares “as soon as possible”, and with profit.

“Otherwise we’ll be forced to take out a loan in the amount of the value of NKBM shares to finance our future investments,” the company added.

contrary to the past talks of the government,” Golobič argues. “[The agency] has decided to pursue some non-transparent logic of a not yet drafted government strategy on the financial sector while completely ignoring all priorities that have been agreed upon as part of the energy policy”.

There are also fears that the move could be harmful to the three state companies which have bought shares in NKMB. Those worries seem to be borne out by a press release issued by ELES. The firm, which confirmed it had purchased EUR 7.5m of fresh NKBM shares in line with the agency’s decision, expressed hope that AUKN would task the company to sell the shares “as soon as possible”, and with profit. “Otherwise we’ll be forced to take out a loan in the amount of the value of NKBM shares to finance our fuC

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May 2011

14 FOREIGN DIRECT INVESTMENT

FDI

NEWS IN BRIEF

source: STA, Slovenian Press Agency

US Investors Learn about Slovenia A number of American investors have learnt more about opportunities in Slovenia thanks to a special conference.

US-Slovenia Business Bridge – jointly organised by the US Embassy in Slovenia, American Chamber of Commerce in Slovenia (AmCham) and the Public Agency for Entrepreneurship and Foreign Investments (JAPTI) – was attended by around 40 US investors, who learnt about both national and smaller-scale projects.

Opening the two-day business conference, Development and European Affairs Minister Mitja Gaspari said Slovenia needed to be more operative and ready for change – not merely talking about what should be done, but actually taking action. Tomaž Lovše, head of AmCham, expressed a similar sentiment. He expects Slovenia to become one of the ten most developed countries in Europe but stresses that in order to achieve that the country must become more competitive as well as more open to foreign investment.

US Ambassador Joseph Mussomeli emphasised the many advantages of the nation to those looking for investment locations. He pointed out that Slovenia observes the rule of law; that it is much more open and predictable than other parts of

the world; and that its workforce is creative and speaks English. He also emphasised its excellent geostrategic position, though acknowledged that Slovenia must make more of this.

The second day of the conference was devoted to the entrepreneurial potential of Slovenia. A panel was organised at which two Slovenian firms presented explanations as to how they had managed to attract US capital. The cases of Ataco and Zementa, both IT firms, were very different – one was a start-up investment while the other was a growth investment – and according to the event organisers this was important.

Foreign direct investment (FDI) from the US accounted for EUR 69.2m or 0.68 percent of the total FDI in Slovenia in 2009, putting the US in 14th place among foreign investors in the country. A total of 75 companies with American capital are present in Slovenia, including computer giants IBM and Microsoft as well as tyre maker Goodyear and fast food chain McDonald’s.

Automotive industry

Trade with Germany

Slovenia’s Exports Surge

Revoz Remains Slovenia’s Top Exporter

German Delegation Visits Slovenia

Source: SURS

Exports Slovenian exports surged in February but the trade gap is growing ever wider, new data from the Statistics Office has shown. Exports showed a 20.2 percent year-on-year increase SKB net profits (in EUR ‘000 000) in February to EUR 1.58bn but the 2000 trade gap nearly doubled over the month before with imports up 21.4 1500 percent to EUR 1.72bn. This puts the trade gap at EUR 135m and the export-import coverage at 92.1 1000 percent. Over the first two months of 2011 exports rose 22.4 percent 500 year-on-year to EUR 3.1bn, with imports up 23.1 percent to EUR 0 Oct 10 Nov 10 Dec 10 Jan 11 3.31bn.

Logistics

Chinese Interested in Railways A delegation from China has visited Slovenia last month to discuss plans for a second railway track between the port of Koper and the transport hub of Divača.

The delegation, included representatives of the Chinese Railways Ministry and two railway infrastructure companies. The Slovenian Transport Ministry has declared itself happy with the visit but emphasised that no concrete agreements were reached at what it says was the first meeting of the group.

JAPTI (Public Agency for Entrepreneurship and Foreign Investment) is a business facilitator providing free information and advising services for foreign investors: • • • •

“I think it was useful for the participants to see the different strategies and to realise that attracting investment isn’t a one-path story,” explains Sarah E Gjorgjijevski, Political-Economic Officer at the US Embassy in Ljubljana.

Gjorgjijevski says the event attendees were impressed by the potential of Slovenia but cautions that investors need to see concrete results before deciding to invest. “[American investors] were very excited about [what is happening in Slovenia] especially on the entrepreneurial side,” she says. “They see a lot of potential with the high-growth firms. That said, what needs to happen in Slovenia is that it has to develop domestically first in terms of investors. Once investors are able to see that these firms have grown successfully in the Slovenian market, and in some cases the regional or even the global market [they will look to invest too].”

Information on business opportunities, legislation, taxes and incentive Information on industrial sites and local suppliers Links with industry and local authorities Arranging visiting programmes to the most suitable locations The Slovenia Times

Car assembly plant Revoz remained Slovenia’s biggest exporter in 2010 according to new data prepared by the Delo newspaper. The Slovenian subsidiary of French car maker Renault exported EUR 1.3bn-worth of goods last year. It was followed by home appliances maker Gorenje with EUR 1.1bn-worth of exports and drug maker Krka with EUR 855.8m. The top ten was rounded out by steel group SIJ (EUR 488.8m), energy producer Holding Slovenske Elektrarne (EUR 446m), aluminium maker Impol (EUR 375.4m), energy group Petrol (EUR 360m), car parts maker Cimos (EUR 346.5m), SIJ subsidiary Acroni (EUR 299.7m) and industrial group Kolektor (EUR 297.1m).

A business delegation from the German state of Saarland has visited Slovenia. The delegation met representatives of the Slovenian-German Chamber of Commerce as well as Viljem Pšeničny, state secretary at the Economy Ministry. According to Gertrud Retzen, the head of the Slovenian-German Chamber, Slovenia is attractive for German investors.

She adds, however, that German companies would like to see incentives in the form of tax cuts, subsidies and a more friendly business environment. Trade between Slovenia and Saarland, which is located in the South West of Germany, is currently fairly modest. Exports reached EUR 34m in 2010, which amounts to only 0.26 percent of Slovenia’s total exports, while imports stood at EUR 67m, accounting for 0.61 percent of the total.

Division for FDI Verovškova 60 1000 Ljubljana Slovenia tel.: +386 1 5891 870 fax: +386 1 5891 877 e-mail: fdi@japti.si www.investslovenia.org

FOREIGN DIRECT INVESTMENT 15

UK-Slovenia investment forum

London Calling Last month, Slovenian Prime Minister Borut Pahor travelled to London to speak at a forum on investment in his country. Finance offered a damning verdict on his performance: “Even worse in English than in Slovene” was the daily paper’s take on the Prime Minister’s remarks at the event. The view on the ground, however, was very different with attendees and organisers alike declaring the forum a real success.

By Claire Read

T

he capital city of the United Kingdom is nothing if not cosmopolitan. Walk any distance in London, travel on any bus or train, and the chances are that you will hear many languages spoken in addition to English. But even notoriously open-minded Londoners might have wondered why there was quite so much Slovene being spoken near Liverpool Street station on a sunny Tuesday last month.

The answer lay a few steps away at the headquarters of the European Bank for Reconstruction and Development. It was in these impressive surroundings that politicians, businesspeople and diplomats gathered for a special forum on UK-Slovenia investment.

The event, which showcased the wide range of investment opportunities in the South East European country, was initially the brainchild of staff at the Embassy of the Republic of Slovenia in London but its potential was quickly recognised by colleagues at the British Embassy in Slovenia.

“At present I don’t think British awareness of investment opportunities in Slovenia is great enough,” explains Andrew Page, the British Ambassador to the country. “That was the reason for holding the forum. If we can get a number of British investors looking at Slovenia, that spreads the word about the country as an investment destination.”

Plenty of opportunities: over 100 British investors attended the conference, intrigued by a number of “good projects” Slovenia has to offer

Well attended

And there is no doubt that a number of investors were looking at Slovenia during the forum. Some 200 people attended the event and a common refrain at refreshment breaks was the highly impressive nature of the delegate list. Amongst those who attended sessions focused both on the general appeal of Slovenia and on three key areas of potential – logistics, tourism, and information technology – were representatives of international

firms JPMorgan, PricewaterhouseCoopers and Morgan Stanley; of banks HSBC, Deutsche Bank and ING Bank; and of the London Stock Exchange, UK parliament, and UK Trade and Investment.

The powerful delegates were met by powerful speakers. The event was opened by Borut Pahor (he left midway through the day for a brief meeting with British Prime Minister David Cameron and Deputy Prime Minister Nick Clegg); Finance Minister Franc Križanič who gave an overview of the Slovenian economy; and Transport Minister Patrick Vlačič who detailed the many logistics projects planned. All offered the same message: Slovenia is open to foreign investment; offers a gateway to the Western Balkans; and has an array of investment opportunities on offer, not least those presented by the planned privatisation of currently state-owned businesses.

Success and surprise

Good language skills: Prime Minister Borut Pahor gave a good. realistic overview of investment environment in Slovenia and, unlike what Finance daily claimed, his English was flawless

Most delegates seemed impressed with the message and the day. As a result, there was genuine surprise when news broke at lunchtime that daily newspaper Finance had run a story criticising

Pahor’s efforts to reach out to potential investors in the UK. Most dismissed it as an attempt to generate headlines, but there was concern it would serve to overshadow the impact of the event.

In summing up that impact, Ambassador Page cites a conversation he had with one potential investor at the forum: “This participant hadn’t previously been aware of the Aeropolis project [the plan to develop 80 hectares of land next to Ljubjana’s Jože Pučnik Airport, providing hotel accommodation, office space and logistics facilities],” explains Page. “This investor has already been involved in very similar large scale logistics plans linked to an airport in another part of Europe and is potentially very interested to look at the opportunity in Slovenia.”

The organisers are realistic, however – while the forum might have served to raise awareness of Slovenia the real proof of its success will be how many British investors come to the country to find out more, and how much investment ultimately ensues as a result.

Critics and fans of Pahor alike will be waiting to see what happens in that regard.

May 2011

16 FOREIGN DIRECT INVESTMENT

Interview: Andrej Mate, president of the board, Inles

Heart of Glass In Ribnica, Austrian glass manufacturer Ertl Glas is building a new 5,000 square metre production facility. One of the main reasons for the company’s decision to open a production facility in the southern Slovenian town is the demand for its product by local company Inles, Slovenia’s largest manufacturer of windows and doors. Inles’ president of the board, Andrej Mate, says that the new facility is exciting not only for his company but also for Ribnica and Slovenia as a whole.

Photo: BOBO

By Maja Dragović

What do you think attracts foreign investors to Ribnica?

Foreign investors coming to Ribnica is a result of local companies having worked on internationalisation for many years.

Usually foreigners decide to invest here based on trust, knowing the people and their abilities. Of course, the economic and market conditions play a significant role too, especially when we know that Slovenia in general can be quite unattractive to foreign investors.

Ribnica has a number of successful companies, while only 70 kilometres away in Črnomelj businesses are having problems.

Why do you think that is?

The essential reason is that the economy in Ribnica hasn’t been too affected by the crisis. It’s also because of the nature of the businesses here. Most of us manufacture finished products rather than individual components which other companies then incorporate into finished products. That has meant that many of the firms in Ribnica have actually managed to increase revenues and improve results during the crisis.

What sort of products does Inles make and for whom?

At Inles we have a very varied structure of customers and The Slovenia Times

are not dependent on a few major partners. We produce unique custom-made products with very short delivery times and difficult logistics. A large number of our products are made and installed the same day.

Generally, Inles’ main customers are developers of family houses, so we manufacture a lot of products in order to replace old doors and windows. In addition, we have solutions and products in the areas of historic protection, and we also sell an increasing number of products to manufacturers of prefabricated houses.

What impact will the arrival of Ertl Glas have on the business environment in Ribnica?

The arrival of the foreign investor Ertl Glas in Ribnica will have multiple effects. Firstly there is the effect on Inles that, since 2002, has been buying virtually all its glass from the Austrian company. Secondly there is the impact on the local and wider environment as 80-100 people will be gradually employed by the company. There is also the possibility that in the next few years the investment will continue with the development of additional programmes related to glass. Ertl Glas already has three factories in Austria and two in the Czech Republic, so it is one of the largest manufacturers of building windows in Europe. It is also worth mentioning that this is the largest new foreign industrial investment in 2010 in Slovenia, which also received the largest share of funding from the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI).

How will cooperation with Ertl Glas influence Inles’ revenues?

Cooperation with Ertl Glas will not have a direct impact on Inles’ revenues but it will have a significant impact on reducing the cost of glass, as well as leading to a

Leader: Inles is Slovenia’s biggest producer of doors and windows

better and faster service. Inles will provide a variety of services for Ertl Glas, which will influence the rationality of operations of both companies.

When will production begin at the new facility?

The production of windows will be launched in June this year. The first production of glass will be for Inles only, although [in time] probably part of the products will be for customers in Austria.

Very soon after production will begin for some other Slovenian buyers, and possibly for some in Croatia.

What were Inles’ sales like in 2010?

Last year the entire Inles group generated about EUR 30m of revenue. We exported 80 percent of manufactured products.

Which are Inles’ most important markets?

Inles exports to over 20 countries. Our main market is Germany, exports to which account for around 45 percent of all sales revenue. Other important markets include Austria, Switzerland, Italy, Greece, Benelux, Russia, USA, Japan, Finland, Kosovo, Croatia and of course Slovenia.

What are your plans for the future?

Inles has very ambitious development plans for the future. Just this year we started a two-year investment cycle for updating the production of timber and woodaluminium windows and front doors. Based on this new technology we will also develop new programmes which will to an even greater extent meet the technical requirements of the market in terms of energy efficiency, durability, quality and design improvements.

In addition we expect to successfully market a product which we have developed and patented together with Ertl Glas. In the next few years, we will also try to integrate photovoltaic solutions into our products.

Innovation SPECIAL 17

Paloma

Not to be Sneezed at One of Slovenia’s most popular brands is soon to announce a product which it says will shake up the sanitary paper product market. Such talk might typically be dismissed as public relations nonsense from a company looking to boost sales. But when Paloma revealed that its latest napkin is the brainchild of a famous Slovenian inventor both eyebrows and interest were raised.

I

n December, Slovenia’s leading manufacturer of sanitary paper products made an intriguing announcement. Paloma was, its chairman announced, to manufacture “a napkin with added value”. Bojan Rajtmajer went on to explain that full details could not yet be disclosed due to patent protection but said that the napkins would be a welcome tool in hotels, restaurants and cafes where they would cut costs at the same time as improving the wellbeing of customers.

Rajtmajer was less tight lipped about who was behind this innovation. It turned out that it was none other than renowned Slovenian inventor Peter Florjančič, a sprightly 92-year-old who already holds 400 patents. Upon coming up with his idea for a “revolutionary napkin”, Florjančič reportedly contacted Paloma immediately and the firm responded with similar speed: signing contracts with the inventor and producing prototypes of the new product.

Public announcement due

A public an nouncement as to exact ly what ma kes t h is new napkin so unique is expected any day now.

Whatever the idea proves to be, there is no doubt that it is regarded as central to Paloma’s ongoing plans. And those plans are ambitious ones: Rajtmajer wants the firm to become the leading tissue manufacturer in the region. A specific target of becoming one of the top five hygiene product producers in Europe by 2015 has been mentioned.

There are hurdles to overcome if that vision is to turn into reality. Last year was a hard one for the 138-year-old firm, with record pulp prices meaning it recorded a loss of around EUR 3m. There has been a recognition that productivity per employee needs to be boosted and simultaneous plans implemented to reduce the 800odd workforce – those who retire from the firm will no longer be replaced.

Even so, Rajtmajer believes that the firm needs a EUR 20m capital injection if it is to reinforce and strengthen its position. He has expressed confidence that a partner to provide this money will be found before the first half of 2011 is out. But it is tough to erase memories of the previous, failed, search for such a partner. Back in April 2009, the firm published

Photo: Dreamstime

By Claire Read

bids for a capital increase and attracted five interested parties – all of which subsequently pulled out.

Belt-tightening... and optimism

In spite of this worrying history and the belt-tightening, there is optimism at Paloma. The effects of efforts to streamline operations are starting to be felt and pulp prices are now expected to fall (it is notable that the last time prices were last relatively low, back in 2009, the company posted a net profit of EUR 3m). And while consumption of Paloma products is dropping in Central, Eastern and South Eastern Europe, it is on the up in other markets. In 2009, almost half of the firm’s sales revenues were generated in Western Europe. By 2015,

No more runny nose: Paloma is looking to develop a tissue that will serve as a remedy for winter colds

the company aims to have annual net sales revenues of EUR 111m, a significant increase on the EUR 85m which has been the average result in recent years.

The “revolutionary napkin” is expected to play an important part in this sales increase – it is believed it will bring in another EUR 10m in revenues in 2012. Whether that figure can be reached remains to be seen but certainly one would be a little foolish to bet against a new creation by Peter Florjančič.

This is the man who has given the world – among other things – plastic injection moulding machines, perfume spray bottles, and the plastic photographic slide frame. It is fair to say that he is not an average individual: in his youth he faked his own death to avoid fighting in World War II; won an Olympic medal in skiing; and appeared alongside Marlene Dietrich in an uncredited role in The Monte Carlo Story.

In spite of his incredible exploits, Florjančič remains modest: “There are millions of inventors like me,” he says. “But I was fortunate to come up with products that sell on the market.” Paloma will be hoping that his latest invention continues that trend.

May 2011

18 DIPLOMATIC SOCIETY

EMBASSY DIARIES British embassy

Russian embassy

Hungarian embassy

Countdown to the Olympics

Liszt Evening Exhibition on Gagarin’s Space Feat

A new exhibition in Ljubljana is encouraging Slovenes to learn more about the London Olympics. British Ambassador to Slovenia Andrew Page opened “London 2012: Be A Part Of It” at the beginning of April. The photo exhibition tells the story of the Olympic and Paralympic Games that will take place in London next year. The opening was attended by several Slovenian athletes as well as president of the Slovenian Olympic Committee Janez Kocijančič.

An exhibition to mark the anniversary of the world’s first space flight has opened in the centre of Ljubljana. “Gagarin – Skies Are Black, Earth Is Blue” is being held at the newly-opened Russian Centre of Science and Culture and celebrates the 50th anniversary of Yury Gagarin’s flight into space. The exhibition was opened

by Culture Minister Majda Širca while the guest of honour was Russian cosmonaut Yuri Ivanovich Malenchenko. The exhibition is a part of a larger one dubbed “The First Man in Space” which will be on display in October at the Cultural Centre of European Space Technologies.

The Hungarian Ambassador to Slovenia István Szent-Iványi and his wife Dora Veress have organised a piano concert by world-renowned Hungarian pianist Gergely Bogányi.

Bogányi played selected works by Ferenc Liszt, celebrating both the 200th anniversary of the composer’s birth and the Hungarian presidency of the European Union council. The pianist, widely regarded as the best interpreter of Liszt’s music, gives concerts at the most prestigious concert venues all over the world.

British embassy

Young British Musicians Support Greenwich-Maribor Link Five gifted young musicians from the UK have given concerts in Slovenia. Clarinettist Gordon Curtis and the Brodowski String Quartet played for crowds in Maribor, at Pule Estate in Dolenjska and at Klasična Gimnazija Šentvid in Ljubljana where they also gave a workshop for talented musicians at the school. The concerts were promoted by the British Embassy and British Council and are part of a programme aimed at strengthening links between Maribor, the European City of Culture 2012, and Greenwich, one of the sites of the London 2012 Olympics. All five musicians are studying at Trinity College of Music in Greenwich.

German embassy

German Companies in Slovenia Satisfied with 2010 Results

Russian embassy

Strengthening Cultural Ties Slovenian Foreign Minister Samuel Žbogar and his Russian counterpart Sergei Lavrov officially opened a new Russian Centre of Science and Culture in Ljubljana last month.

Lavrov said he hoped the centre would become a venue for interesting cultural events connecting both countries and thus furthering cooperation in arts and culture.

The centre was formed under the agreement on opening science and cultural centres signed by the two countries during the visit of Russian PM Vladimir Putin to Slovenia in March.

The Slovenia Times

American embassy

American Days in Ljubljana The American Embassy in Ljubljana has once again sponsored the annual event dubbed “America Days”. The event celebrates special segments of US history and culture with the Slovenian community through music and art, dance, informative lectures, exhibitions and other events. The US Ambassador to Slovenia Joseph A. Mussomeli gave a speech to a full house at the opening of the event, which will conclude on 15th May with a Mundo Ninos concert and workshop as part of the Druga Godba festival.

German firms in Slovenia were satisfied with 2010 and are cautiously optimistic about 2011 according to the results of a survey conducted by the Slovenian-German Business Chamber. However, they are less pleased with the economic situation in Slovenia, especially with defaults on payment.

The majority of those surveyed felt that taxes are high or too high and also expressed criticism of productivity, motivation and skills. More than half do not expect the situation to improve in 2011, though there are no major cuts in workforce planned. The survey suggests that companies exporting to Germany and other countries are much more optimistic than those operating solely in Slovenia and South-East Europe.

American embassy

US Attorney General visits Slovenia US Attorney General Eric Holder has visited Slovenia to take part in the Balkans Justice Ministerial. Holder gave the opening remarks at the event, which was organised by the Slovenian Justice Ministry. The Attorney General also met with the Slovenian Prime Minister Borut Pahor, Justice Minister Aleš Zalar and Interior Minister Katarina Kresal during his trip.

New Appointment System for Routine Consular Services at the British Embassy, Ljubljana With effect from 1 June 2011, the Consular Section at the British Embassy will introduce an appointment system for non-emergency Consular Services.

British embassy

Minister Jelušič Decorates Defence Attaché Lt Col Gibson Former British Defence Attaché Lieutenant Colonel Derek Gibson has been awarded a medal for international cooperation. The medal, presented by Slovenian Defence Minister Ljubica Jelušič, is in recognition of Gibson’s contribution to strengthening defence relations between Slovenia and the UK. The Lieutenant Colonel took up the position in 2007 and was involved in many important events. He was also instrumental in bringing the Red Arrows, a famous British air force aerobatic team, to Slovenia. Gibson has been replaced by Lt Col Ian Stafford of the Royal Regiment of Scotland.

Netherlands embassy

To make an appointment, please send an e-mail to: consularenquiries.ljubljana@fco.gov.uk stating the service you require.

You should also include your contact details so that the Consular Section can reply with your appointment time, or contact you for further information if necessary.

For general consular enquiries you can also contact us by phone on +386 (0)1 200 3910

If you require urgent consular assistance during office hours (08.00-16.00, Mon-Fri) please contact the consular section by phone on the number above.

Dutch Books with the Best Design The Netherlands Embassy has organised an exhibition as part of the UNESCO programme “Ljubljana – the world book capital”. The exhibition focuses on the Dutch graphic design of thirty selected books and was organised in conjunction with De Best Verzorgde Boeken Institution and the International Centre of Graphic Arts. It was opened by the Ambassador of the Netherlands Jos Douma, head of the culture department at the Municipality of Ljubljana Uroš Grilc, and director of Nevenka Šivavec art centre.

Services for which an appointment will be required include Birth/Death Registrations, Notices of Marriage, Certifying copies of documents and other routine notarial acts.

British embassy

British Minister of Justice in Slovenia The British Justice Minister has travelled to Slovenia on the invitation of his Slovenian counterpart.

Kenneth Clarke met Aleš Zalar last month and the two discussed strengthening Slovenian cooperation with the UK on justice issues.

The ministers also exchanged experiences and good practices in various justice fields, among others the construction of prisons. Both ministers share the view that there are no open bilateral issues in the judiciary between the countries.

The British delegation also met Prime Minister Borut Pahor, top officials from the Corruption Prevention Commission, and representatives of the Ministry of the Interior.

If you require urgent consular assistance outside of office hours, you should call the Global Response Centre on +386 (0)1 200 3922 There may be times when the Consular Section has to close at short notice. If you are travelling a long distance to apply for a consular service, you might wish to telephone first to make sure the section will be open.

May 2011

20

Photo: Dreamstime

REAL ESTATE SPECIAL

At Last Some Hope Everyone knows the recent story of the housing market: boom, bubble, recession, bust. It is Slovenia’s story too and it has led to a static market, with its primary actors content to sit and wait for better days. Now, at long last, it seems those days may be coming. Sure, recovery is not equal across all regions in the country. But sales are on the increase and some major projects are under way in Ljubljana and due to be completed soon. This is creating a more positive mood amongst agents, developers and investors alike.

By Aleš Šinkovec

T

he end of last year was promising for the Slovenian housing market. At last, sales started to pick up. During the last three months of 2010, developers The Slovenia Times

sold 405 new apartments, which is the highest number since the first quarter of 2008. Promisingly, this was a nine percent quarterly increase and a drastic 81 percent in-

crease over the worst quarter at the beginning of 2009. Real estate developer iProjekt was the most successful in terms of sales towards the end of 2010 and the good times

seem to be continuing. The firm says it sold 24 apartments in the first six weeks of 2011 alone.

Agents are also feeling the change: “The real estate market in

REAL ESTATE SPECIAL 21 Slovenia is increasingly buoyant with enquiries and sales increasing significantly compared to last year,” says Justin Young, owner of Slovenia Estates real estate agency.

“Many, including me, believe that this is just about the best time to buy and to take advantage of stagnant prices and what is very much a buyer’s market.”

Get real

Sales may have seen drastic shifts but, more significantly, the price of property is also shifting to more realistic levels. In 2010 house prices fell by 8.9 percent; the price of forest land by 7.3 percent; and agricultural land was 5.1 percent cheaper. Meanwhile prices for business premises fell by 3.4 percent, building plots by 1.6 percent and second-hand houses by 1.8 percent.

The price readjustment is not yet entirely complete, however.

Some sellers are reluctant to accept a lower price. The result?

Their properties remain unsold while they play the waiting game.

“Some desperate sellers have reduced prices but most are waiting to see what buyers will do,” explains Young. “The ‘buying’ season has only just begun so sellers are not in any rush to reduce their prices. However those that overpriced their property in

the first place will have no option but to get real if they wish to sell this year.”

Igor Horvat of RE/MAX Slovenia says agrees that there has been a waiting game going on: “Between the end of 2008 and the beginning of 2009, sales stopped completely.

Sellers were not willing to lower their prices and buyers were waiting for a reduction. This created a heavy atmosphere where everyone was simply waiting.”

Foreign impact

The inflated prices also saw demand from foreigners dry up. As Young explains: “Slovenia was no longer a reasonably priced place to invest. Prices grew too high too quickly and certain properties were clearly overpriced”.

However, this too is now changing with a significant number of foreigners returning to the market. In recent months Slovenia Estates has registered increased interest from Russian buyers as well as those from the UK, Italy and Ukraine.

The only way is up

So what is in store for the sector in 2011? Some sources suggest slight drops in prices, and others suggest a marginally positive change.

Price of apartments by region (in EUR per square meter) Studio

One-Bed

Two-Bed

Ljubljana

3,117

2,759

2,558

Three-Bed 2,5

Central Slovenija

2,363

2,148

1,91

1,795

J Primorska

3,133

2,956

2,551

2,574

Gorenjska

2,078

1,892

1,702

1,561

S Primorska

1,602

1,928

1,67

1,646

Savinjska

1,49

1,299

1,232

1,163

Dolenjska

1,731

1,44

1,323

1,423

Notranjska

1,354

1,321

1,245

1,173

Podravska

1,295

1,246

1,206

1,206

Koroška

1

1,037

1,006

883

1,086

934

1,056

1,002

Posavska

1,286

1,056

1,036

1,207

Pomurska

1,202

1,081

1,072

1,072

Zasavska

Source: Slonep.si

“The real estate market will continue to stabilise and move forward,” predicts Young. ”We have seen the worst.”

At Stoja Trade real estate agency they are not as optimistic: “We don’t expect any dramatic changes in the housing market, but as a proactive company we constantly see business opportunities, with prospects of good performance and new successes”.

One of those prospects is the many properties seized by banks

due to loan defaults. These have not yet been released on to the market due to fears that doing so would cause a significant drop in the value of such properties.

However, the banks are expected to start offering seized and unsold housing gradually during 2011 at market-adjusted prices which, many believe, will cleanse and stabilise the sector.

Whatever happens, the only way for Slovenia’s real estate market is up.

“

The district of Varaždin offers investors clear information on land rights, structured documentation for land-use and a wealth of experience with investors from Austria, Germany and Italy. We also hold ICPR certificates issued by the European Union. These certificates provide a reliable indication for European investors and a guarantee that our region is safe and absolutely prepared for investment.

“

PREDRAG ŠTROMAR, GOVERNOR OF THE DISTRICT OF VARAŽDIN

WHERE THE NEW EUROPE IS BUILT. 24 – 25 MAY 2011, MESSE WIEN, VIENNA WWW.REALVIENNA.COM

In cooperation with:

Supported by:

May 2011

22 REAL ESTATE SPECIAL

Construction

No End in Sight Spring has brought no end to the woes of Slovenia’s construction industry. On the contrary: recent weeks have seen even more insolvencies among building firms. As it becomes clear that this is the worst crisis in the sector in decades, the government is promising to help the faltering industry.

By Maja Dragović

Deep troubles: construction companies are going through a record number of bankruptcies which are likely to continue throughout 2011

T

he problems in Slovenia’s construction sector are now so deep that Prime Minister Borut Pahor last month called a meeting specifically dedicated to the crisis. Pahor declared that before deciding on how best to help the troubled industry it was important to identify where the biggest problems lay. The meeting highlighted that there are in fact no shortage of issues. Many officials and business representatives described problems with outstanding payments to subcontractors. According to the Chamber of Commerce, subcontractors alone are looking at EUR 600m to EUR 700m in exposure to debt due to insolvency proceedings. Interestingly, it has become apparent that the state is one of the late payers, with EUR 33m in outstanding payments.

How low can you go?

Some also raised the connected issue of unrealistically low bids in public tenders. With cost often the main criteria in public procurement, contractors are offering to carry out jobs at unreasonably low prices and sub-contractors aren’t being paid as a result.

The Slovenia Times

As well as discussion of the problems, there was a look at the opportunities open to the sector.

Environment and Spatial Planning Minister Roko Žarnič believes that the number of planned national projects such as the new generator at the power plant in Šoštanj, the transport infrastructure-related third development axis, railway infrastructure, a gas pipeline and an overhead power line are can all help restore the construction sector.

Insolvencies continue

But these projects will come too late for many companies. Recent weeks have seen yet more insolvencies. Joining big names like SCT and Vegrad is Eurogradnje, which employed 36 people. It filed for bankruptcy at the beginning of April. The firm leaves one large unfinished project in Medvode but company director Klemen Gantar says all other projects have either been finalised or are about to be. He blames the insolvency on non-paying investors.

At the same time as Eurogradnje was coming to an end, the bankruptcy of GPG was being adopted in the courts. This firm has been

making the same sort of headlines as SCT and Vegrad thanks to suspicions of manipulating their books.

The list of collapsed companies doesn’t end there. Gradis Hiše, the subsidiary of Gradis Celje which was the first major construction company to collapse, has also gone bankrupt. CPM, the Maribor road company which lost the contract to build the Makrovec tunnel, went into bankruptcy proceedings in February. Another Maribor-based company, MTB, has been in proceedings since mid-March.

In the face of so many collapses, the government is now making legislative changes. Laws have been adopted which tackle payment defaults. There have been changes to the act on public procurement dealing with direct payments to subcontractors.

Changed too is the act on value added tax, with a view to promoting timely payments of invoices through tax penalties. Together with the act on the execution of judgments in civil matters, claims insurance, and changes to insolvency legislation, the position of creditors in receivership and debt restructuring proceedings should have improved. But Finance Ministry State Secretary Mateja Vraničar has stressed that it will take a while for the full effects to be felt.

At the meeting devoted to the sector last month, participants agreed to draw up an action plan and examine the possibility of setting up a construction directorate, while the Chamber of Commerce and Industry (GZS) could establish an expert council.

In the meantime, those in the know predict that the construction sector’s woes are far from over, with little change in demand and further insolvencies expected in 2011. For now it seems the best bet for those Slovenian construction firms which manage to avoid bankruptcy is to turn away from their crisis-ridden home market and try to penetrate foreign markets.

Photo: Dreamstime

Photo: SCT

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Poslovna cona A 2, SI-4208 Šenčur, Slovenia T: +386 4 279 18 00 I F: +386 4 279 18 25 E: protim@r-p.si I www.protim.si

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SERVING INTERNATIONAL COMPANIES IS OUR DAILY BUSINESS

24 REAL ESTATE SPECIAL

Interview: Ana Filipov, Schönherr law firm

A Changing Sector Schönherr, one of the top corporate law firms in Central Europe, was one of the first foreign law firms to enter the Slovenian market in 2001. One of the major areas in which its team of 14 lawyers works is real estate and construction. According to Ana Filipov, one of the firm’s specialists in the area, the precise nature of that work has changed significantly in recent years.

By Maja Dragović and Claire Read the insolvency or cease to exist. It could also be argued that the state and local communities should help to overcome the crisis – with further investments in infrastructure, help acquiring transactions abroad, expediting residential construction and so on.

Being present and active at international real estate fairs is a good opportunity to get in touch with possible investors. Too many times we Slovenes forget that such events are networking events and are meant to be used as such. We must not forget that developers are not alone here.

The Slovenia Times

The economic downturn has hit the Slovenian real estate market and construction industry hard. How has this affected your work?

Firstly, the portfolio of our clients has changed. Previously we mostly acted on behalf of investors but now the number of developers and banks to which we render services has grown. Also, prior practice largely involved counseling on issues arising from the purchase of real estate. In the last two years we have had more and more requests to advise on restructuring of debt, insolvency and enforcement proceedings.

What is the way forward now for the real estate and construction sector?

I believe firstly the industry itself has to adopt some changes.

If a company has liquidity problems and also a number of unsold apartments the firm should consider offering those properties for a price that would be acceptable on the market. Further, companies that are insolvent should take the appropriate and statutorily requested steps to either overcome

What is the most common criticism you hear from your clients about the real estate environment in Slovenia?

From a legal point of view the criticism used to relate to the length of registration proceedings.

There have been some improvements in this regard – most of the existing registers are now publicly available online and entries into the land register do not take years as they used to. But proceedings to acquire a building permit still take too much time and since the recent change of the Building Act the comments on too many possible parties in such proceedings and a lot of questions relating to possible revision of already final building permits.

Slovenia is not known for large commercial investments.

Why do you think this is?

There are a few reasons: the smallness of the country, high prices of real estate, lengthy proceedings to acquire consents and subventions, tax burdens, costs, and very employee-friendly employment legislation.

What can Slovenian developers do to attract more institutional investors?

I believe it is of utmost importance to do proper research on what the institutional investors are looking for. In most cases it’s being able to secure an entire office building, retail or logistic centre and being able to secure lease agreements for at least five consecutive years with tenants of good standing. They also want to be informed about the potential of a particular site, and to know whether the opportunity is a sin-

gle one or whether there is the chance to build a portfolio. But none of this will help unless contacts are made. Being present and active at international real estate fairs is a good opportunity to get in touch with possible investors.

Too many times we Slovenes forget that such events are networking events and are meant to be used as such. We must not forget that developers are not alone here.

Among its other tasks, the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments (JAPTI) does a fantastic job helping Slovenian companies presenting abroad.

Can Slovenia meet the requirements of institutional investors seeking commercial developments?

Yes, it definitely can. If I have listed obstacles in attracting foreign investments, I also have to stress the benefits – Slovenia is a member of the EU and NATO, within the Euro and Schengen area and a politically and economically stable country with a good rating. However, it does seems that the commercial developments I know of that are currently on the market are not yet completely satisfactory to potential institutional investors.

At a recent conference on Slovenian investment opportunities in London, one British investor complained about the difficulties foreign buyers have in obtaining loans in the country. What is your view on this?

In principle, Slovenian banks act rather traditionally and are a bit stiff when granting loans and requesting securities to ensure the repayment of the loan. I cannot confirm this relates only to foreigners but it is clear that if creditworthiness is taken as a primarily condition to grant a loan, a foreigner with no income within Slovenia cannot have much chance of obtaining the money.

Investment opportunity

AMUSEMENT PARK ABOUT THE PROJECT The SiPark project is realising a modern concept for an amusement park. Degraded land is going to be used to create a place with added value and participants in the project will be offered unique opportunities – both financially and in terms of fun.

INVESTORS We are searching for a buyer of the whole project or a strategic/capital partner.

SiPark is spread over 30 hectares of landscape and is divided into several segments: a real estate project; a tourism project; a commercial project; an entertainment project; an eco awareness project; a wellness project; a culture project; an education project; a sports and recreation project; and a high technology project.

On the surface there will be a lot of green areas and camping facilities. Thirty or more houses will be on site and will not simply offer sleeping facilities – they will represent European and other countries, offering a unique way to depict a country’s appearance as well as its cuisine, tourism and trade. Additional facilities within the project will include syllabus trails, a spa, a hotel and an amusement park designed for recreation and adrenaline rush with an emphasis on a specific Slovenian literature topic. Meanwhile part of the land will remain unchanged so the desert will also be an attraction for visitors. The entire area will put great emphasis on the protection of nature.

SiPark is a starting point for the promotion of nature and natural resources, which are in the area’s vicinity. Here begins the Natura 2000 area and Krakovski gozd (forest). This area is also known for bird nesting grounds of the rare and protected bird species Čebelar (beekeeper). The area is known for its vineyards and wine product, especially the famous Cviček wine that is unique to the Posavje and Dolenjska regions.

LOCATION SiPark is located along the major European transport corridor, corridor X. It is one hour’s drive from Ljubljana and half hour’s drive from Zagreb.

The desert

PARTNERS & FUTURE PARTNERS Centre for Entrepreneurship and Tourism Krško, Municipality of Krško, AMZS, Local Community Krško, Tourist Association of Raka, Philosophical Faculty/Department of Library Science, Biotechnical faculty/Department of Botany, Biotechnical faculty/ Department of Wood Science and Technology, Turistica in Koper, Faculty of Sciences and Engineering/Department of Geology, Eco Schools etc.

cots are chicken Kati and rooster Pepi. Slovenian stories will be told with a new, modern approach.

The company’s mission is to promote science involving innovations in real estate as part of the project itself.

The point is to offer customers a haven of fun as well as all forms of relaxation in one place.

ECOLOGY & SCIENCE The ecology element is seen as the main part of the project. Everything in SiPark is based on ecofriendly technology, including ecological approach and innovations.

Culture in the SiPark is a bond of the whole project.

All segments are interwoven through the rich cultural heritage of Slovenian literature. The main mas-

FUTURE In 2012 the opening of the first part of the project (the desert) is planned. In 2012 it is planned to invite one or more investors to join the project. Plans are to have the whole SiPark fully operational within the next five years. Subsequently, SiPark’s business model is going to be replicated abroad.

SiPark, Slovenian Park of Tourism Ltd, CKŽ 137, 8270 Krško Telephone: +386 (0)41 422 459 info@sipark.si, www.sipark.si

26 REAL ESTATE SPECIAL

Wood and furniture industries

Fighting for Survival The wood and furniture industries were once been a flagship of the Slovenian economy. Yet with the real estate and construction sectors struggling, it is hardly surprising that the demand for furniture has dried up too. Now companies are looking for ways to reignite the industry, conscious that they can no longer compete on price alone.

By Maja Dragović Euro, and where consumers are willing to spend some money on furniture.”

Zupanc adds that Slovenian firms simply “cannot sell our brands in the west.” The reason?

Cost.

New technologies: modern attitudes to the environment bring wood products immense opportunities but more investments are needed

S

lovenia’s wood processing industry has been weathering a storm. In 2009, total revenues in the industry amounted to EUR 969m, a significant decrease on the EUR 1,191m of the previous year and not far off the expenditure figure of EUR 982m.

Net revenue from sales in the domestic market fell by 8.7 percent and on foreign markets by 16.1 percent. The industry ended the year with a net loss of EUR 6.1m. The closely-linked furniture manufacturing industry has not been faring much better. Domestic sales revenues fell by 19.9 percent in 2009, leading to a net loss of EUR 18.3m for the financial year.

“The Slovenian wood manufacturing industry was badly hit by the crisis, especially in the part of the production of furniture, where its production halved,” explains Bernard Likar from the Association of Wood and Furniture Industry at the Chamber of Commerce.

According to Marjan Ferčec of the wood and forestry trade union, one effect of this struggle has been falling numbers of employees in the industry. Twenty years The Slovenia Times

ago there were 40,000 people working in the wood processing and furniture sectors. Today that number is closer to 16,000 and layoffs continue. Ferčec warns that without fresh capital input companies will be forced to continue cutting costs by cutting employees.

The need for investment

Certainly one of the reasons for the industry’s decline is insufficient investment. Analysis by the Ministry of Economy has shown that seven times less money is invested in the Slovenian wood processing and furniture industry than is invested in the same sector in Austria.

There are some companies that are trying to buck the downward trend. Eight small Slovenian firms and three institutes have recently established a joint development centre for the creative furniture industry. The centre is expected to help the companies to invest more in product development, with an emphasis on new design, new construction and upgraded technology. Called RC 31, it has won state and EU funding in a public call and its aim is to promote Slov-

enian furniture firms on foreign markets.

“The main thing is the market,” explains Aleš Zupanc, chief executive of furniture producer Alples, one of the companies in the consortium. “We are thinking mainly about south eastern Europe, where we can sell Slovenian furniture brands. The primary targets include the Czech Republic, Slovakia and Hungary, which have a decent GDP and have adopted the

“Our problems are similar to construction firms and other labour-intensive industries, where it is becoming more difficult for us to compete with developing countries’ cheaper labour costs,” explains Igor Milavec, the director of the Association of Wood and Furniture Industry.

Many feel that since the Slovenian industry cannot realistically compete on price, companies should focus their attention elsewhere. Minister of the Economy Darja Radić, for instance, has suggested firms need to focus on design and production of high quality products with their own trademarks.

Milavec, meanwhile, sees opportunities in the increasing focus on the environment: “Environmental threats bring wood and wood products tremendous opportunities,” he argues.

Now it is down to these struggling industries to capitalise on those opportunities and, in so doing, bring an end to the crisis that has dogged them in recent years.

Net profit/loss in wood processing and furniture industries (in ‘000 EUR) 25 20

Furniture porduction

15 10 5 0 -5 -10

Wood processing

-15 -20 1999

2009

Source: Slovenian Chamber of Commerce

Photo: BOBO

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28 REAL ESTATE SPECIAL

Interview: Andrew Page and Howard Swan

The Nature of Golf The appeal of the lovely town of Otočec was boosted yet further a few years ago when a new golf course opened in the area. It was designed by British architect Howard Swan, who says his prime aim in developing course was to preserve the natural environment. According to Andrew Page, British Ambassador to Slovenia and a keen golfer, Swan succeeded.

By Maja Dragović

Joining the top class: Andrew Page (left) and Howard Swan (right) agree that Otočec golf course just needs a modest club house for it to be able to hold major championships

Why did you decide to focus your career on golf course design?

Howard Swan: I thought it was great fun to be a horizontal architect rather than a vertical one. It is much more fluid, much more exciting to work with nature than with hard structures that go into the sky. I also happened into it because my father was a green keeper and then a landscape architect.

Every place, whether on the macro level of a country or the micro level of a site, is different because you are dealing with nature.

There is the British style of a golf course, which revolves around preserving nature, and the American style, which is more about adapting nature to the needs of man. Which category does Otočec fit into?

Swan: I believe that we have to have respect for what nature has given us and I think it would have been unfair for me to come to Otočec and disregard nature.

There have been only two great architects of golf courses in our history: God and Mother Nature.

We have no right to change the countryside. We may change the The Slovenia Times

use of the countryside to a different pursuit, but its form must remain. Hence at Otočec we tried to conserve the natural environment as much as we possibly could. In Otočec, the land moves so wonderfully with the valleys and the hills and you have the framing of it with the woodland.

Where did you get inspiration when you designed Otočec golf course?

Swan: It is entirely by walking around it. You gain [inspiration] from your intimacy with the site, with nature. It is easy to sit down with a plan in front of your computer and do something. But you have to be there to touch, smell it, see it, feel it, and hear it.

What is so unique about Otočec?

Andrew Page: The reason I liked Otočec so much to begin with is its great combination of lovely tennis courts, a lovely golf course and a magnificent castle. I love tennis and golf, and I love a good restaurant and the restaurant is great in the castle. The setting is glorious too: the nature is lovely. You

have this wonderful contrast of different greens, especially at this time of year. The lime greens of the new leaves against the dark greens of the fir trees and the evergreens, beautifully planted out.

Some of the vistas leading up to the hillside where you’ve got the vineyards etched into the countryside are just stunning. And there are lovely churches on top of the hills with pink roofs, and all those beautiful cuckoo-clock houses built into the countryside like model villages. So the views are lovely. As a golf course, I think it is very challenging and the most difficult course in the country because of the rolling hillside which is tough for a golfer. Quite often you have to make quite difficult calculations and use your judgement which makes it much more interesting than just a flat course.

All it now needs is a decent club house which would unable the course to hold high-quality international championships.

Swan: Otočec has no golfing history like Bled has. Those people who know that Slovenia has golf courses know one place and that is Bled. However, Bled golf course needs to be renovated because it is old and tired while Otočec is in its youth but needs a clubhouse.

Do you think there is an aspiration in Slovenia to become a golf destination?

Page: I think the Slovenian Ministry of Economy and the Slovenian Tourism Board are conscious of the fact that golf represents an opportunity. Down in Portorož they are very conscious that it would add greatly to the attraction of the town as a tourism destination if they had a decent golf course. They have identified a location where they could have it.

They need to get the permission of the Ministry of Agriculture to go ahead and I very much hope it would [give that permission].

Aside from Kempinski Palace – which is the finest hotel in the country – there really isn’t as high a quality of five-star infrastructure in Portorož to keep the guests and the tourists entertained during their stay.

Swan: At the moment, the attraction for international golf tourism in Slovenia is not related to the coast unlike most of the other parts of Europe. In countries like Spain, Portugal or Turkey, most of the golf courses are on the coast.

The biggest market for golf tourism today are the Irish, the British, the Germans and the Scandinavians who like to play golf in better weather than they have in their home countries. In order to make a destination for golf, you need to have a cluster of golf courses.

Having a golf course in Portorož presents a great opportunity.

What is the most demanding aspect of Otočec golf course?

Page: The combination of valleys and hills. Also, pretty well every hole has trees on either side meaning there isn’t a lot of room for error. If you are prone to hooking and hitting it to the left or slicing and hitting it to the right, you are going to be severely punished.

And that is how a golf course should be.

Swan: It is the elements of nature that are the great things in Otočec. Because you change direction a large number of times to play the round, you either follow the sun, or the sun follows you. Then there is the wind which is a real challenge because sometimes it is behind you, sometimes it is across you and other times it is against you. It is those elements that make you think how you play the game.

What is your favourite golf course to play?

Swan: Without any doubt the best course where I have played is the one at St Andrews – because of its tradition, its heritage but also its design. My favourite golf course that I have designed is on the very small island of Eriska, off the west coast of Scotland. It has a lovely hotel and it the simplest, most natural, cheapest nine holes you can imagine. And it is an utter delight to walk around and play golf or even not play it.

Page: One of the things about golf courses is that what you remember are the circumstances

in which you played and that can bring back very happy years.

For me, that makes my favourite course one in Norfolk, England.

My father comes from there and we used to go up there for family holidays every year. I started playing golf in my teens. One of the great courses on which we used to play quite often is the Royal West Norfolk golf club in Brancaster, very much one of the top 50 or top 100 in lots of people’s favourite golf courses. What is so lovely about it is that it is so natural and it’s simply a case of sand dunes.

Indeed, the coast is being eroded by the sea and the course is in danger from that. There are some wonderful holes where the water from the sea will fill up various channels of the course at high tide and completely change the nature of the course. It is the naturalness of the course that is its charm.

Some would argue that golf courses are ruining nature. How would you respond to that?

Swan: One of the greatest defenders of nature in the world are open spaces which are golf courses. The way they are managed is important though as they can be over manicured. There are some arguments, with some justification, that this is artificialising nature. But we all have a greater

Photo: Terme Krka

REAL ESTATE SPECIAL 29

Challenging: with its valleys and hills, Otočec offers tremendous pleasure to golf lovers

regard for the environment than we used to have. Twenty percent of golf courses in Great Britain are in areas of landscape importance, some with very high classification where they are protected. Such golf courses are great contributors to conserving and protecting what nature has provided.

We need to make people better aware that golf courses are not destroying nature but the complete opposite. I am currently involved

with six Nordic governments on a project to make golf more accessible and make golf courses more multi-functional. It is important not to deny people the opportunity to enjoy the beautiful landscapes of golf courses – we should allow them to walk around or ride around golf courses on bicycles or on horses.

Page: Just take Otočec. If we hadn’t had a beautiful golf course carved out of what used to be a

forest, how many fewer people would have had a chance to admire the lovely Dolenjska countryside. And it is not like you can’t spare a bit of forested land when over 60 percent of the country is forested. It helps bring income into the country and it makes jobs when you are creating a golf course. So long as it is managed in a sustainable way, it can be for the enjoyment of many people, and not just golfers.

May 2011

30 REAL ESTATE SPECIAL

Regional overview: Montenegro

Tourism Boost Montenegro’s current economic conditions may not be the best one the country remains one which garners a great deal of interest from the media, including the BBC. The interest is understandable: the tourist season is just around the corner and the property market is feeling the effects.

By Mateja Novak

T

he f i n a ncia l cr isis has caused a real crash in property prices in Montenegro.

According to data from international real estate firm Savills, most properties have lost approximately a third of their value since the credit crunch. Prices are now a long way from the peak of around EUR 3,000 per square metre seen in 2007.

But the signs are that recovery is on the way. Montenegro’s real estate agencies have reported an increase in transactions from late

2010 into the first few months of 2011 as well as some modest price increases, with some transactions achieving EUR 2,000 per square metre.

Tourism factor

One of the main reasons for the increased activity is Montenegro’s growing tourism sector.

Whilst overseas travel and tourism numbers contracted by five percent across the world in light of the financial crisis, in Montenegro the numbers have kept going

up. In 2009, the number of visitors was up by two percent compared to 2008. The trend continued last year: in the first 11 months of 2010 more than 1.2 million tourists visited Montenegro, five percent more than in the same period in 2009.

Wit h tou r i sm goi ng f rom strength to strength, it is of little surprise that holiday homes along the Montenegrin coast are still the most popular amongst those investing in property. Most of those buying are from overseas. Accord-

Regional overview: Croatia

Steady Going After a steady price decline since 2008, Croatian house prices have finally stabilised. According to real estate firm CentarNektretnina, the average price of advertised houses in January 2011 was up 0.4 percent on the previous month. January’s price increase was the third consecutive monthly increase. The recovery is far from complete, however – prices were still 3.8 percent down on the same period in 2010. From a peak in September 2008, house prices in Croatia have on average fallen 11 percent to October 2010.

By Mateja Novak

The Slovenia Times

dictions are made for Zadar, even though rental yields there are significantly lower than in the other two cities.

It all means Croatia’s current property market can be summed up in five words: steady but not yet spectacular.

Source: Oglas.hr

The recovery may be starting but agents do not expect house price rises to return to the momentum of pre-crisis years, due to high levels of non-performing loans in the banking system – 9.5 percent of all loans.

In terms of the rental market, gross rental yields in Zagreb are moderate, at around 5.5 to six percent. Here too few changes are expected. In the words of the Business Monitor report for the Croatian property market in 2011: “Given that rents and yields appear already to have stopped falling, we are not looking for meaningful changes in either over the next year or so. To the extent that rents do move from late 2011 onwards, we expect that capital values will change similarly.”

The report envisages that rental yields in Split and Zagreb will move sideways through the 20112014 forecast period. Similar pre-

Average apartment prices in Croatia (in EUR) Zagreb Split Zadar Osijek Rijeka

Split

1,965 2,455 1,799 1,112 1,609

Photo: Dreamstime

I

n January this year, the average price of flats in Zagreb was EUR 1.825 per square metre, which is 2.3 percent down on January 2010 but up by 0.4 percent from December 2010. House prices in the capital followed a similar pattern: down 8.5 percent on the year before, but four percent up from the previous month at EUR 1.163 per square metre.

Meanwhile property prices in Croatia’s most popular destination, the Adriatic coast, remain almost level. The average price of a seaside cottage or apartment was EUR 2.055 per square meter in January 2011, up by 0.2 percent from the previous month and down by only 0.3 percent from a year earlier. The average price of houses was EUR 1.564 per square metre, the same as in December 2010 and down only 0.7 percent from the same period in 2010.

Photo: Dreamstime

REAL ESTATE SPECIAL 31 ing the Central Bank of Montenegro, the total inflow of direct foreign investments in Montenegro amounted to EUR 58.8m in January this year, of which 15.3 percent was in real estate.

Data from Kotor municipality shows that 115 deals involving foreign property buyers have been completed in the area since the beginning of 2011 (63 transactions were concluded in February alone). Russians remain the most active buyers of Montenegrin property, with locals are almost absent from the market.

According to Julia Titova, chief executive of Rentsale company, the activity in Kotor reflects the overall situation on the market.

“The municipalities of Herceg Novi, Tivat and Budva are also gradually becoming more active,” she says. “In 2010, property transactions in Montenegro slid by 10 times, compared to the peak indicators of 2008. This year,

transactions may increase twoor threefold in comparison to the preceding year.”

Positive trends

There are also positive developments in sectors related to real estate. The Montenegrin Minister for Sustainable Development and Tourism, Predrag Sekulić, has announced that Ryanair is prepared to begin services to both Podgorica and Tivat in September this year. The arrival of low-cost flights to Montenegro will have immense an impact on the tourism industry as well as the holiday rental market on the country’s coast. In addition, the International Monetary Fund forecasts Montenegro’s economy to grow 4.5 percent in 2011, and more than five percent in both 2012 and 2013.

Things are definitely looking up for this small country on the Adriatic coast.

Picking up: in February this year there were 63 transaction involving foreign buyers in Kotor municipality alone

Regional overview: Serbia

Catching up With the residential market remaining slow, the focus of real estate in Serbia is currently on office and retail property. Yet these two sectors are not without their problems either.

By Mateja Novak

R

ecent years have seen a significant growth in the development of office property in Serbia. The economic crisis may have slowed development slightly – some firms put projects on hold due to financial difficulties – but 2010 still saw a large number of office spaces added to the market in Serbia’s capital. The Bluehouse, VIG Plaza and Belville II projects were all completed and meant businesses had yet more office space to choose from.

The problem is that few are actually filling that space: according to the King Sturge property consultancy, the occupancy of office property, which is mostly concentrated in Old and New Belgrade, remains low. This in spite of the fact that the supply remains relatively limited in comparison to other capital cities in Eastern Europe.

That is expected to change in the coming years when the projects which were put on hold during the crisis are restarted and ultimately completed.

Demand for prime logistics space, meanwhile, remains high in both Belgrade and the surrounding areas. Lack of modern industrial supply is hampering growth somewhat but particular interest has been seen from food retail distribution chains and pharmaceutical companies.

Retail market

Demand for retail space is increasing too. A number of large international retailers are now looking for space in the Serbian capital and its outskirts. Here, however, the problem is too little quality space.

“Over the past year, we have seen demand for retail space gaining some momentum again,” explains the King Sturge property consultancy. “However, the retail market has seen a significant decrease in turnover, with landlords fighting increased vacancy rates and rising rent arrears. International retailers are mainly located in the core high street and modern

retail schemes. The main barrier for retailers, other than recessionary uncertainty, has been the lack of adequate modern retail space.”

The consultancy also says that there is a growing focus away from high street retailing to quality in-town mall and retail park developments, which offer more

reasonable pricing as well as a controlled and measured tenant mix.

With investors and buyers becoming more quality aware, Serbia and its capital will have to focus on quality rather than quantity if the real estate sector is to experience a true recovery.

Serbia’s top 10 shopping centres by size City

Scheme Name

Size GLA (m2)

Year

Developer

Belgrade

Shopping Center

43.000

2009

MPC Holding

Belgrade

Delta City

28.000

2007

Delta Holding

Belgrade

Mercator Center

22.000

2002

Mercator

Mercator Čačak

18.000

2005

Mercator

Novi Sad

Čačak

Mercator Novi Sad

16.000

2007

Mercator

Kragujevac

Ronda Center

14.000

2008

Mercator

Niš

Mercator Center

14.000

2008

Mercator

Indjija

TQ Center

8.000

2010

Tradeunique

Belgrade

Zira

7.000

2007

Verano Group

Novi Sad

Novi Bataar

7.000

2006

Delta Holding Source: King Sturge consultancy

May 2011

32 REAL ESTATE SPECIAL

Commercial property market

A Slow Separation Retail and real estate have long been separate businesses in the developed markets of Western Europe.

Retailers try to sell as many goods as possible, which were bought at the lowest possible price, with as few expenses as possible. Real estate businesses, however, deal with the development and management of highquality projects in top-notch locations which will ensure stable long-term profit in the form of rent. In Slovenia, that separation hasn’t traditionally been present – but times are changing.

By Mitja Terče ing of the economy. The financing of property changed from El Dorado to the land of plague over night. The real estate business is capital intensive and traditional real estate companies are absolutely and relatively indebted.

After just over a year of the crisis in the US, Slovene retailers discovered that they are, in comparison to foreign companies, in too much debt and that considering the current bank requirements and, of course, also bank capabilities, they cannot expect to incur new debt with regard to property.

Financial calculations: Mercator is looking to sell some of its impressive real estate portfolio

D

ue to its recent past, undeveloped market, small size, and tendency towards property ownership, Slovenia is far behind the developed West when it comes to separation between retail and real estate.

Everyone in Slovenia wants to own – or already does owns – their home, office, warehouse, store, or shopping centre. For Slovenian citizens and businesses, renting has always been the second or worst option.

Austrian attitude

In the field of commercial property, this mentality and work eth-

ic came to Slovenia via Austrian commercial real estate companies such as Mid Investicije, M2 with Supernovas, Hypo with Qlandia and SES with City- or Europarks.

In most cases the anchor tenant was the grocery retailer Spar, a company already familiar with such an arrangement from experiences abroad.

The largest Slovenian commercial property company BTC was also influenced by the Austrian model, and broke new ground among real estate companies. In turn, BTC inspired entrepreneurs in small towns who developed and rented out smaller shopping

Big offer: more than two million square metres of commercial real estate is available to investors The Slovenia Times

centres – which, on the most part, were not on a par with global standards. Meanwhile Mercator, Tuš, and Mercur, as the largest retailers in Slovenia, developed and financed properties for their own use.

Changes

Times change and so does the property market. Joining the European Union and the European Monetary Union were the first major developments which served to increase foreign interest in Slovenian real estate. At that time, due to the excessive amount of cheap money offered by banks and leasing companies, these investors were unsuccessful. Real estate development became a national sport in Slovenia; one in which everyone saw an opportunity for fast profit. This created a vast gap between real estate prices and rents, which did not ensure the anticipated profit. The traditional tendency towards the ownership of “family silverware” and the difference between a four percent interest rate and a nine percent anticipated profit of foreign funds were the main reasons for the rejection of offers. At this time, Mercator began to take a more serious approach to its real estate and Tuš established a new company to deal with its property.

Times changed again when the financial crisis hit Slovenia. Banks began to slowly limit the financ-

Seeking foreign investment

In light of the financial crisis, Slovenian commercial companies have been seeking out foreign real estate investment trusts to buy their real estate or work with them to develop new property. As opposed to the Croatian company Agrokor, which is already pursuing this actively, Slovenian success in this area has so far been limited. Partly, the reason for this is the profit, which foreign investors expect to be approximately eight percent for the best properties.

However, investors are mainly concerned by the economic and legal environment in Slovenia, as well as the quality of the real estate. They are primarily interested in shopping centres, a larger number of different types of stores, or a larger warehouse or logistical capacity. Due to troubles abroad, Hypo with its Qlandia centres is also among those seeking investors.

In the Slovenian market, more than two million square metres of commercial real estate is available to investors. Business deals between local commercial companies and foreign investors are to be expected soon. They will surely be a great introduction into the further division of labour among commercial and real estate companies and the arrangement of the market in a similar manner to other developed western countries.

Tuš Domžale

ShoppiNg CeNTer

your opporTuNiTy

y r T u N i T p o p

To beCome a parTNer of SuCCeSS STorieS

o

www.tus.si

Best location in town

ShoppiNg CeNTer Tuš Domžale CaTChmeNT area: 105.000 people gba: 20.106,67 m2 gla: 11.753,78 m2

Center Domžale

garage wiTh 342 parkiNg plaCeS opeNiNg: 2013 reNovaTioN The olD iCoN ShoppiNg CeNTer iN The TowN CeNTer of Domžale

Tuš NepremičNiNe d.o.o. resljeva ulica 16 / 3000 Celje / Slovenia e: matjaz.dimec@tus.si / p: +386 59 733 000 / f: +386 59 733 625

34 REAL ESTATE SPECIAL

Alpine potential

Ain’t No Mountain High Enough Slovenia’s location and its small size confer a number of advantages, not least the fact that wherever you are within the country you are only a short drive away from the mountains or coast, or from Italy, Croatia or Austria.

This in turn makes the country a year-round tourist destination, and property in the mountains an attractive prospect for investors looking for rental income. There is still a way to go, however, before the number of foreign buyers – traditionally the main investors in these areas – returns to pre-crisis levels.

By Mateja Novak

W

hen it comes to Slovenia’s mountains, the most popular places for tourists and investors alike are Bovec, Kranjska Gora and the areas around Bohinj. These spots have long been established as tourist destinations but their property potential developed mostly in the new century. The novelty of the places attracted a number of foreign investors as well as local ones.

“Before the crisis, the majority of investors came from Italy, England, Germany as well as Slovenia,” says Jure Zagar, a developer from Kobarid near Bovec.

The popularity of the place before the crisis was immense, and consequently the prices of properties followed a strong upward trend, with some reaching more than EUR 5,000 per square metre.

However, since the crisis, prices have fallen dramatically.

“The prices have fallen by as much as 20 percent if not even more,” explains Zagar.

Return of the foreign buyer

Apartments »PRI NAS«

Foreign buyers had all but disappeared from the mountain areas’ real estate market in recent

The Slovenia Times

Good location: it is important to be near attractions or activities for a property to have a good rental potential

years. 2011, however, has seen some of them making a return.

Justin Young, founder of real estate agency Slovenia Estates, says that he has recently had a number of enquiries from Russian, British and Italian buyers. The properties they were looking at were “quality properties, either renovated or newer alpine style, bright and

with views of mountains, and with good all year round access.”

Most of the buyers were looking for a holiday property, “although some clients are considering a permanent move,” adds Young.

Optimism for the future?

With all the latest indicators, the future of real estate market

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in the mountains is looking much brighter than its recent past. According to Zagar, opportunities are great due to the strong tourism potential of such areas.

“The potential of the real estate market in the mountains is immense, especially in terms of rental investments such as cottages and residential developments,” explains Zagar. “The unspoilt nature of Slovenia’s mountains where a person can really rest, enjoy great weather conditions both in the winter and in the summer, is a great guarantee of the places’ popularity as a tourist destination in the future,” says Zagar.

However, even though there is great potential in tourism, Young believes that the space for growth of the rental market in the mountains is very limited.

“If a property is close to a ski resort it will always be easy to rent it out. However, if it is located in a more remote area, it can be hard to rent out in either summer or winter,” explains Young. “There need to be attractions or activities close by as people renting in the mountains are looking for such things.”

But whichever way the real estate market moves, the beauty of Slovenia’s mountains will always remain the same.

Interior design

What is in(side)?

Guest Star 2010 Report Otocec Castle Restaurant Dine with Style

36

Interior Design

Home Beautiful Home

Everyone wants his or her living space to be practical and look good. Generally speaking, Slovenes achieve that goal in the same way as their counterparts in the rest of Europe. Take a closer look, however, and one spots a few novelties.

It was natural for one of the most forested European countries to develop a strong wood processing industry. Sadly, the Slovenian furniture industry is still overcoming the shocking transition from a self-contained market to an internationalised and very competitive one. Slovenian homes with furniture installed at least two decades ago would display a

very similar set of cabinets, almost exclusively of domestic brands, many of which are now long-gone. These items were considered solid and reliable with designs perfectly up-to date with western trends. But as companies from abroad came knocking Slovenians accepted their wares with open arms, leaving the domestic industry to either innovate or die.

Photo: BOBO

Ljubljana furniture fair.

The Slovenia Times

One of those companies which has not only survived but flourished is Svea, a firm particularly well known for its kitchens. Since it is difficult to compete in the low-end class, they have focused on a middleupper range of products, offering a complete, “all inclusive” service from consulting and measuring to final installation, all included in the price of the product. Moreover, they offer customised kitchen sets similar to those made by small carpentries but with much stronger technology and knowledge base. The effect of this thorough and long-term branding is that Svea kitchens are now a definitive status symbol among Slovenes.

Svea has also conquered foreign markets – including the highly demanding markets of the Netherlands and Belgium – through its cooperation with particular European furniture stores and establishment of 25 of its own boutiques.

Taste in shapes and colours Svea commercial director Tim Tomažin is proud to say that his company is not only in line with current trends, but also shaping them.

When it comes to kitchens, modern designs of clean horizontal lines seem to prevail, despite a rich range of traditionally designed sets. In his opinion, a well developed taste in interior aesthetics typically follows global trends.

Few are better placed to confirm Tomažin’s view that Jo Wieden, general manager of Harvey Norman in Slovenia. The company is an Australian one which has now been in Slovenia for some years. Wieden says the only real differences between the two countries relate to climate and living space: “Slovenians enjoy quality and value for money in much the same way as Australians do. “ Furniture choices may depend on climate but of course it’s not something which is closely linked to seasonal trends. That means that the effect of sales and special offers is not as drastic as with skirts and shoes. This doesn’t mean buyers don’t respond to discounts. Harvey Norman gets particularly busy during the half-year clearances.

The Ikea Factor

Bargains are of course the stock-intrade of Swedish giant Ikea, a brand familiar to anyone who has a young family or has just bought their own place. The firm doesn’t yet have a store in Slovenia but its products are still ubiquitous thanks to the number of shops just across the border in Graz, Klagenfurt and Vilesse.

These stores attract large numbers of Slovenes, mostly the young, who want their homes to look trendy at a good price – and who don’t mind assembling their furniture themselves.

37

Guest Stars in Interior Design

How do those in the creative arts go about decorating their homes? Two nominees in the recent Guest Star awards explain their views on Slovenian tastes in interiors as well as revealing their own preferences.

Visual artist Uwe Laysipen On my arrival in Ljubljana in 2009 I noticed and was quite amazed by the Slovenian taste for interior design, especially in terms of commercial design – shops, restaurants, cafés and so on. After some time I was of course invited into people’s homes. There I noticed two main characteristic design differences and I guess they have to do with “taste” and “money”. Some of the places were furnished and built in clean, hygienic, cool Ikea-catalogue style.

Others were amazing well thought out, built, furnished and decorated to a higher life-style ambience.

I personally tend to favour rather minimal, functional interiors with very good quality furniture, kitchen, bath and objects. Light off white walls, light rooms, preferably with high ceilings. In my home I like to move. Rooms are room in which to move, to live – not spaces to be stuffed with objects and stuff on the walls or around like in museums.

Open space and light are most important to me. Old buildings in good shape, renovated with good materials are what I like most.

My own place has wooden floors, good, solid and simple wooden tables and chairs. A very good bed and mattress is important as

well, the same as a light spacious bathroom with window and plants.

And of course, there is a very good kitchen furnace and equipment.

Then one or two comfortable leather chairs. A few very good and pleasant lights with dimmers. A plasma TV, a working table and chair. Closed bookshelves. No art works on the walls.

One of my favourite furniture stores and mail order companies is Manufactum. I buy little and tend to come by things by chance, wherever. I dislike Ikea and would only go there to help somebody carry his/ her stuff.

The last time I travelled in Rajasthan, India I enjoyed finding old materials and wooden craft objects which I bought and took back home with me.

Singer Hannah Mancini

It seems to me that Slovenian taste is pretty eclectic and also very prac-

tical. Some take a more traditional approach and others appreciate very modern design. There isn’t really any one typical aesthetic that I’ve seen used the most in interior design here. Exterior-wise, I would just say that there is a more cottage-like look to many homes here in Slovenia. I love the old flats in the centre – hard wood parquet floors, high ceilings and so on; those features that are prevalent in many European flats in general and I especially like it when they are kept up well and mixed with modern elements. I suppose I would like to see a little more variety in architecture of the family homes here.

In my home I have tried to implement a mix of old and new. I love a lot of natural light; rich, lively colours and unexpected drama yet I still prefer a look that doesn’t take itself too seriously. I want to live comfortably in my home and not worry that my furniture will be damaged by my five year old. So we choose

May 2011

38 to them, like delicate sea fans and big sea shells from Los Angeles. I also love a beautiful outdoor space, whether it’s a balcony with lots of plants and flowers – which is what we have – or a garden. A nice place to sit and enjoy the morning sun when the weather allows is definitely a luxury I cherish. Our furnishings are a combination of antiques and artwork passed down from family and more modern elements like a giant modern bookcase, lighting, furniture and other more modern accessories we brought here from America and also found in Europe.

pieces that look nice, but that you don’t have to worry will be somehow damaged with a kid in the house.

I have a white leather couch that cleans up surprisingly well! What doesn’t make me feel at home is having to constantly worry you will damage something, or homes that are too dark.

For our place we just have a lot of our books and personal items such as little treasures from places we’ve been to... I have brought some special wallpapers with special textures and graphics and other decorative items that have a kind of ocean feel

Column: Irena Hlede

Behind the Front Door Although Slovenes can’t deny their historical agricultural background, so much has changed over the past century: today, over half of population lives in cities, including, of course, in the capital Ljubljana. As with most of other capital cities, Ljubljana represents an exception. We can’t avoid the fact that for a long time it was the location of the only Slovene university. It hosted most foreign business representatives, ambassadors and of course, the seat of the government. All of this resulted in much higher living standards and a much more discerning taste, on average, of the inhabitants of the city.

In the flats and houses of Ljubljana, we can find much elegant and contemporary furniture and equipment, often from the hands of extremely skilled and ambitious Slovenian carpenters. Of course, collaboration of interior designers is often present, too. Some of most prestigious areas of the city are filled with elegant apartments and villas, competing among each other on the level of contemporary elegance of their interiors.

The middle class follows them with very modern, simple and fresh (but much cheaper) furniture often bought at globally known IKEA. However, we shouldn’t forget the many highly qualified, designdriven Slovenian furniture producers: wood has always been a very important export product of Slovenia, so it is quite obvious that we also have many excellent craftsmen.

The rest of Slovenia is following the capital quickly, but with slightly more traditional orientation, often seeking symbols of traditional luxury with classical images and details, lots of brass decorations and large, heavy and intricately detailed pieces in dark solid wood.

Unfortunately we can also find, especially in recent years, an overly strong influence of living The Slovenia Times

styles and patterns coming from other parts of the world through contemporary media, especially television. The lack of awareness of national tradition and low self-confidence as members of one of the smallest nations in Europe often leads in to an uncritical copying of some very distant role models.

Another feature of Slovenian interiors market is overly large homes. There’s still an attitude that every couple should make sure that each of their children are provided with their own homes, especially (as much as possible) in individual houses. That’s why average individual houses are very big, often much bigger than the needs of their owners. Well, we can’t deny there is an important role of the fiscal policy of the Slovenian government in all of this. The changes for these policies are already on the horizon, but without any evidence of practical effects yet.

What else can be seen from the contemporary habits of Slovenian homeowners? Of course there is a need to show something new and contemporary – keeping traditional, slightly worn old furniture is often considered a sign of poverty.

Everything tends to be new: lights, curtains, suspended ceilings, windows and doors etc. The question of comfort is often secondary, leaving more space for a trendy look.

Another noticeable difference is the lifecycle period of the furniture, which is quite longer than typical, especially in Western Europe, often reaching much longer than ten years to make a change.

In most developed countries, this period is most often five years, rarely to ten. The reason is the lower living standard of the average Slovenian employee in comparison to his European colleagues. He’s able to invest in furniture and home a comparable sum of money from the beginning,

but he’s often short on cash to take care of unnecessary additions and details and, of course, to make a change in a very short period.

As I’ve already mentioned, Slovenia has very welldeveloped timber industry with factories producing everything: kitchens, cabinets, upholstery, chairs, tables, etc. We also have many excellent craftsmen, some of them already on the verge of becoming small factories. Creative designers are not in question, either, with many international awards as proof. Of course, it is the easiest way for Slovenian investors to buy from Slovenian producers, but this issue always falls under the weight of a crisis.

This is also our current situation: we have many Slovenian furniture factories in deep trouble, but it’s very rare that private investors would support them only from loyalty reasons – everybody is looking out for themselves today.

What would be conclusions of those reflections?

First of all we’d have to build up stronger commitment of all Slovenian citizens towards our history and tradition – it is a contemporary trend in most developed countries, and I’m deeply convinced that following it would bring our society a stronger visibility. Second, we’ll have to rethink matters of life cycling and recycling of furniture and to search solutions for it. Third, we’ll have to rethink also the issues of locality towards the Slovenian timber industry in the light of a source of jobs for Slovenian workers and of Slovenian industry as a producer of final products, not merely exporter of raw materials. These are questions concerning our government, but as we are the ones who vote them, we’ll also have to rethink our own ways of thinking and acting.

Irena Hlede is the editor of Klik – a magazine for quality and sustainability in architecture and design

39

Arts & Cr afts

Uniquely Yours

Each home has a certain character, which is mainly reflected in its furniture. Wood is a pure material with the power to convey various messages – so long one knows how to bring out these potentials. There are some designers who know the secret and thus the dividing line between craft and art.

By Polona Cimerman

It is not surprising that it is wood that stirs the imagination of designers in Slovenia, the third most forested country in Europe. Dejan Pfeifer, a designer of unique wooden products in his company Studio Drevo, says he feels very close to nature and, for him, wood is the most natural and domestic material: “With each piece of wooden furniture, a piece of something fresh, healthy and innovative comes to your home from the forest.”

Wood is also a fundamental element for independent wood designer Matija Hiršenfelder, who has been intrigued by it ever since he was a child: “First it was the smell that attracted me. Later on, I started to collect beautiful pieces in order to later turn them into something nice and special.”

Uniqueness as a rule

Both designers feel that furniture does not mean lifeless objects.

“Wood is alive, especially if we co-exist with it and take care of it,” believes Hiršenfelder, a wood expert who, besides his unique furniture design, also takes great interest in restoration, continuing “A wardrobe is never just that – a wardrobe. It has a special purpose which needs to be respected and sought after with design and wood treatment. ” Pfeifer bases his creations on the philosophy that “All things that are unique or perfect are very simple, just like life. That is why I create with love, which I breathe into each unique product. I’m convinced that a well-designed product has to offer people a different view of life and convey well-being and happiness.”

He specializes in first-class, handmade furniture through which he supports ecological and ethical thinking.

Details are what matter and distinguish the unique pieces from manufactured ones. The designers are more flexible, they can listen to the clients’ wishes and demands and can create a piece with an added value. “Ideas come after I talk to the customer and get to know what message they want their furniture to tell. But always I create from within myself,” says Hiršenfelder whose designs are marked by soft, curved lines.

In sync with nature

In creation, nature serves as inexhaustible inspiration. “I get ideas mostly from nature, sometimes the source is a bird’s nest or a spider web,” says Pfeifer, who believes the only limits of human imagination are the limits of wood design.

Both designers use mostly Slovenian wood for their products. “It gives each product its own original story as well as excellent characteristics of a top-quality material. Fruit trees like walnut, cherry and pear offer unbelievable aesthetic and functional values,” according to Pfeifer.

“There are 85 different kinds of wood in Slovenia, and some of them are widespread. I use them to make the furniture even more special,” adds Hiršenfelder.

Dedication to nature in terms of ecology is also what characterizes both designers, since they avoid the use of the chemical coatings, such as lacquer. Instead, they use flax oil or beeswax, and thus retain the natural patina the product gains through the years of use. “One can thus literally feel the wood and the product,” says Hiršenfelder.

Trademark potentials

Many users and customers recognize the value of unique furniture designs. “My designs are used by children who play with ecological toys in naturally furnished rooms and, of course, adults who express high expectations of living standards,” says Pfeifer. “My products are used privately and in public places, too.” His unique pieces are found in homes all over Europe and also in North America and Australia.

Hiršenfelder mostly caters for the needs of Slovenian clients; however, he has pleasant business experiences with Japan through which he formed an opinion on the uniqueness of the Slovenian design. He asserts that, “Slovenians should be more aware of their own wood treasures and should build their own design brand. I think the distinctive characteristic of the Slovenian furniture is the softness of lines which is an expression of the Slovenian soul and mentality.”

Looking at the innovative artistic work of both designers, Slovenians really have something uniquely special to show and also to boast of.

May 2011

40

The Capital

Old Charm for Modern Times Once a feudal palace, now a public institute - Ljubljana castle looks better than ever events.

as LJ- KARTICA mm 6/24/10 15:12 Page 1 with- 113x155 a handful of exciting upcoming

By David Aleksander

Ljubljana tourist card

• free admission to the main sights • free public transport, boat ride, funicular, tourist train • other attractive free services 24 hours: € 23.00 • 48 hours: € 30.00 • 72 hours: € 35.00 Sales outlets: • Tourist Information Centres and major hotels

The Slovenia Times

www.visitljubljana.si

Towering over the bustling streets of the Slovenian capital, the Ljubljana Castle, one of Slovenia’s most valued tourist attractions, was converted into a public institute following a decision by the Municipality of Ljubljan. The move was seen as integral in ensuring that Ljubljana’s iconic landmark continues to provide the necessary setting for various cultural and other events, following the castle’s intensive remodelling and growing appeal as a diverse venue in recent years.

The challenges now facing the new public institute revolve around coming up with a well-rounded programme of events that will both respect the castle’s identity and yet offer an ever greater variety of events to both domestic and international visitors. The challenge will be how to unite the cultural, tourist and catering aspect of the castle under one roof in order to turn this historic landmark into Slovenia’s number one tourist attraction in the near future. Under the new scheme the funicular and a permanent exhibition of Slovenian history will become part of the castle’s management regime. The former, carrying over 200,000 passengers per year, was built towards the end of 2006 and despite initial doubts proved a worthy investment, uniting the old town and the Castle Hill, thus relieving the

number of tourist buses and cars.

The later has been opened since last June and covers the Slovenian history from the earliest traces of human activity (200,000 BC) to the pivotal events following Slovenia’s declaration of independence in 1991.

A novelty that will most likely prove popular with both foreign and domestic visitors is the introduction of the Castle Day celebrated on 16th May every year. The day marks an important event when more than a century ago the Municipality of Ljubljana bought the castle from the provincial government. This year the Castle Day will be observed a day earlier (on 15th May); visitors will be treated to a free tour of the Virtual Museum, which in May will celebrate its 10th anniversary.

The earliest mention dates from 1144 when the castle was used as the seat of the Carinthian dukes Spainheims.

Today, the castle serves many purposes, from hosting weddings as well to numerous cultural events and exhibitions. Visitors will be surprised to find that the entry to the castle courtyard is free of charge –one can relax by sipping one’s favourite beverage or enjoy a piece of cake in the midst of historical surroundings. A guided tour takes the visitor around the castle premises, giving you a chance to feel the breath of history and learn interesting facts about the castle. Medieval jails, the old Gothic chapel, the beautifully renovated halls, a 2,000-year-old Roman well and much more are there for the visitor’s viewing pleasure; to top it all off, ascend the castle tower and bask in the marvellous vista of the Slovenian capital.

A Stellar Line-Up

At the seventh Guest Star award ceremony, Slovenia’s international stars were brought closer to the sky than ever, with the event being held on the Ljubljana Castle hill. Among the sixteen nominees, each and every one a star of their own right, four names shone even brighter.

Organizers

Partners

Text by Polona Cimerman, photos by Alenka Slavinec Guest star winners with Justice minister AleĹĄ Zalar and The Slovenia Times CEO Brane Krajnik

Communication Partner

Automotive Partner

Media Partners

Host

Awards by

May 2011

GUEST STARS 2010 Ayhan Öztürk, Turkish Airlines General Manager for Slovenia – Guest Star 2010 in Economy I was shocked when I heard the final results, but it feels very nice to win. I was a bit nervous before the announcement and I tried to think of a speech, but then I completely forgot it due to the great joy of winning.The entire campaign was very honourable and well-organised and I liked it a lot. I’m extremely honoured. I think I’ve done good things for Slovenia and I promise to keep doing them. In my opinion, there’s an excellent cooperation between the countries on many levels, not just in the aviation business.

Hannah Mancini, singer/songwriter – Guest Star 2010 in Culture It feels remarkable to be honoured and recognised for my contribution to the Slovenian society. I’ve never expected anything before moving to Slovenia, but living here turned out to be so much more than just being involved in the music industry. I see the award as a huge honour. I enjoyed myself throughout the campaign and I was very impressed with the way the organizers treated us. Also, the programme on the final event was wonderful.

The excellencies: Ahmed Farouk, Anunciada Fernández de Córdova, Nicole Michelangeli, Andrew Page

Guest stars in sports were busy training so they have sent representatives instead. Only Andrea Massi managed to Show up and took the prize.

Andrea Massi, ski coach, head of Team to A-Maze – Guest Star 2010 in Sports This is the first award I’ve ever won in Slovenia, and it really means a lot to me. It is an honour for a coach to see that his efforts are being recognized.

I was not able to be present during the campaign due to ski trainings and competitions, so there were problems with getting in touch with me. However, the organizers were extremely kind and managed to make the best of it.

The evening started by launching more than 200 guests from diplomatic, financial and entertainment circles into the orbit with the promise of meeting the other stars along the way. The evening’s host, singer Anđa Marić took everybody on astar-filled journey, organised by The Slovenia Times and Radio Slovenia International with the aim of honouring the most notable foreigners who most influenced Slovenian society in the previous year.

The three-month-long campaign culminated in an award ceremony that gave birth to four new stars from four categories – Culture, Diplomacy, Economy and Sports. For the first time, the final results consisted from two parts in which 40% of votes came from the public and 60% from the expert jury composed of authorities from the media outlets of Delo, Dnevnik, Pop TV and RTVSlo.The organizers received around 10,000 public votes which tell of the candidates’ ability to activate the voters.

Star-struck

The winning names were kept secret until the very end of the event,during which the nominees or their representatives were Ahmed Farouk, Ambassador of Egypt – Guest Star 2010 in Diplomacy Winning is a great feeling and this is the first award I’ve ever won in my diplomatic career. Diplomats are not very familiar with awards, they’re usually just working. However, the most important thing since my arrival to Slovenia is that I have felt a welcome guest here ever since my first week. The campaign was very nice and well-organised and so was the award ceremony. I’d like to congratulate the The Slovenia Times and also express my thanks to them, my colleagues, family and my team.

The Slovenia Times

Singer, songwriter and The Slovenia Times’ Legal alien Andja Marić was an excellent host.

The highlight of her stage presence was a singing performance - not to mention the elegant Versace dress by XYZ Premium store.

Three musicians and a visual artists: Guest stars in culture - Uve Laysipen, Carlos Yoder, Lasanthi Manaranjanie Kalinga Dona and Hannah Mancini.

The business people: Louise Chatwood, Klemens Nowotny, Ayhan Öztürk and Christof Johannes Droste

given a chance to tell a little bit about themselves and their views on various matters – some of whom did so in perfect Slovene.

The four winners received crystal bowls made by Kristal Rogaška; each of the candidates, from fourteen different countries, was greeted with a warm applause.

“The message of Guest Star is much more than merely a competition. It is about reciprocal trust and intercultural understanding, which are extremely important. The 16 nominees are inspiring ambassadors of their own countries, who bring a touch of multiculturalism to Slovenia,” says project manager Irena Kržan.

The night continued over delicious Vivo Catering treats and exquisite wines from selected winemakers Miro Vino, Jeruzalem Ormož, Vinag d.d. and Marof. The merry mood stretched to the dance floor, too, where guests were able to enjoy exclusive cigars from Havana Cigar Point shop by the company Camelto.

The event once again lived up to its reputation of being one of the highlights of the year, uniting Slovenians with its most honourable expatriates and thus creating long-lasting memories with an important message for the future.

Srečko Trglec, Editor-in-Chief of RadioSi, a co-organizer of the event.

May 2011

44

Dine

wit h St yle Otočec Castle Restaurant Grajska cesta 2, Otočec Tel: + 386 (0)7 384 89 00 booking.grad-otocec@terme-krka.si www.castle-otocec.com

Otočec Castle Restaurant

Open Every day until midnight Price range seven-course tasting menu – EUR 55 daily menu: three-course – EUR 26 four-course – EUR 33 five-course – EUR 39 Reservations recommended Menu of the evening Foie gras and a foie mousseline with a quince and red peppercorn compote Confit of pulled-off the bone fish with a wild garlic coulis and puree of beetroot cornel Beef back medallion with bean dumplings, asparagus and fresh radish Vanilla charlotte with peanuts and chocolate soup

Beautiful Partnerships Otočec Castle is organising a series of special culinary evening events at which delicious food and wine are paired. According to Jade Van Baaren, it is a match made in heaven.

Confit of pulled-off the bone fish with a wild garlic coulis and puree of beetroot cornel

Beef back medallion with bean dumplings, asparagus and fresh radish

Grad Otočec, a stunning castle nestled on an island in the River Krka, dates back to the thirteenth century and has hosted many of Slovenia’s noble families. Today it is home to the unique Castle Hotel, currently running a series of very special culinary dinners.

Held once a month, these dinners are fast becoming hard to book, being a delicious and educational culinary experience at an attractive price. Those attending not only enjoy a four-course meal but also wines carefully selected to perfectly accompany the food. I consider myself extremely lucky to have been invited on the day that Miha Batič was hosting. Founded in 1592, the Batič winery uses production methods that are entirely organic and biodynamic. At the event Batič was able to give me a real insight into the wines he had chosen for the evening.

Beautiful inside and out

Vanilla charlotte with peanuts and chocolate soup

The evening began in the open air of the castle courtyard. In this atmospheric, historical setting, we sipped a lovely 2008 rosé, met the others guests, and nibbled on some delicious canapés of young local Slovenian cheese. It was

then time to move inside for dinner, held in the castle’s elegant dining room. The hotel was refurbished in 2008 to a very high standard and while the decor is contemporary it cleverly blends in the castle’s period features and many antiques.

Seated at our own private table the meal started with an introduction from Miha and Robert Gregorčič, called Robi, Castle Otočec’s resident chef. The two explained the inspiration for each course and the wines chosen. It was refreshing to meet Robi, a chef who equals Miha in his enthusiasm for nature and what it gives us. Well attuned to seasonal changes in the woodlands belonging to the castle, Robi harvests the freshest produce for his menus. His energy and creativity are a genuine inspiration.

The next culinary event at Otočec Castle Thursday, 12th May, 7 p.m.

Price (wine including): EUR 49 per person Reservations Tel: +386 (0)7 384 89 00 E-mail: booking.grad-otocec@terme-krka.si

Top choice Otočec Castle Restaurant

Grajska cesta 2, Otočec Tel: + 386 (0)7 384 89 00 booking.grad-otocec@terme-krka.si www.castle-otocec.com Open: Every day until midnight In Issue 140

Great food

In short order our first course arrived: a duo of seared foie gras and a foie mousseline, accompanied by a quince and red peppercorn compote. This was coupled with a 2009 Sivi Pinot. It was such a lovely blend of flavours and textures that I think I actually frowned when I saw my plate empty. A good seared foie should resemble a crème brûlée: crisp on the outside and melt-in-your-mouth gorgeous on the inside. This foie gras was exactly that, fresh and aromatic. The mousseline was light and airy with a mellow savour of foie and cream. The quince compote did its job, cutting through the foie flavours with the perfect blend of sweet and bitter, finished off with the spice from the red peppercorn.

The second course was confit of pulledoff the bone fish, served with a wild garlic coulis and purée of beetroot cornel. This dish was attractive, fresh and delicate.

The local carp was caught that day in the river and the wild garlic foraged from the castle woodlands. It was a magnificent explosion of colour and taste served with a 2007 dry Zaria – a glorious match. Both the wine and the dish spoke of mulched woodlands and fresh fruit.

Wonderful harmony

And so to the main event: mature beef back medallion with a lemon foam and pepper sauce served with bean dumpling (štrukelj) and a bouquet of shaved seasonal asparagus and fresh radish. I enjoyed every tender morsel of the beef filet. The sauce was rich and tantalising and thankfully Robi came around to all the tables and offered more of this luscious treat if desired. The bean dumplings had an earthy flavour to them. They were moist,

plump and melted in the mouth.

The Rosso 2006 which accompanied this course was dry with a wonderful harmony of three grape varieties: the Merlot gives the wine its structure; the Cabernet Sauvignon lends its aroma; and the Cabernet Franc, like a good mother, brings it all together.

Barka Restaurant - St.Bernardin - Portorož

Sweet

Vila Prešeren

The meal wrapped up with vanilla charlotte with peanuts and chocolate soup.

The charlotte was as light as a cloud and had a very pure essence of vanilla. The warm milk chocolate soup that the charlotte lay upon balanced out the flavours of the dish, whilst the dusting of nuts added that extra crunchy texture and bitter aroma.

The desert was served with a Valentino 2007, sweet. Now to be completely honest I am not a fan of sweet wines but this Valentino was right up my street.

In reflected on the evening, I realised it was one of partnerships. Not only was the food and wine well paired, I found the chef and wine maker to be equally well matched. And I cannot think of a more perfect setting for this special dinner then Grad Otočec, imbued with so much history and comfort. I think the only thing that could have improved the evening for me would have been permission to crawl upstairs and bed down in one of the hotel’s luxury suites.

There is no doubt that I will put myself on the monthly mailing list to find out when the next dinner and wine paring event will take place. I recommend you do the same.

Obala 2, Portorož Tel: +386 (0)5 695 30 08 restavracija.barka@h-bernardin.si www.h-bernardin.si Restaurant with selected fish dishes Open: 11am – 11pm

In Issue 130

Veslaška promenada 14, Bled Tel: +386 (0)4 575 25 10 vilapreseren@sportinaresorts.si Open: 11am – 11pm In Issue 131

Pule Estate

Drečji vrh 16, Trebelno Tel: +386 (0)7 34 99 700, (0)51 373 662 marketing@pule.si, www.pule.si Open: Wed-Sat: 12am-10pm, Sun: 11am-8pm; Pule Estate is also available for rental Traditional Slovene cuisine with other culinary delights

In Issue 132

Cafe Central

Grand Hotel Portorož ***** Obala 33, Portorož Tel: +386 (0) 5 692 1050 info@lifeclass.net, www.lifeclass.net Open: Every day, 8am – 9pm In Issue 133

Promenada Gourmet Restaurant Cesta svobode 15, Bled Tel: +386 (0)4 579 18 39 restavracija.promenada@hotelibled.com www.sava-hotels-resorts.com Open: Tuesday to Sunday: 12pm–10pm In Issue 133

Bled Castle Restaurant Grajska cesta 6, 4260 Bled Tel: +386 (0)4 579 44 24 restaurant@vgs-bled.si www.hotelastoria-bled.com/castle restaurant Open: Every day, 10am –10pm In Issue 136/137

City Restaurant - BTC CITY Ljubljana Poslovna stolpnica, 13th floor, Šmartinska 140, Ljubljana Tel: +386 (0)1 585 19 97 www.btc-city.com Restaurant open: Mon-Fri, 11am – 4pm Bar open: Mon-Fri, 7.30am – 6pm

In Issue 138 JB logo 4/15/08 4:32 PM Page 1 C

M

Y

CM

MY

CY CMY

K

JB Restaurant

Miklošičeva 17, Ljubljana Tel: +386 (0)1 430 70 70 restavracija.jb@siol.net, www.jb-slo.com Open: Mon-Sun, 11am – 11pm Sat, 5pm – 11pm In Issue 139

46 ZOO

news

African Village

Rejuvenated for Spring

Terme Dolenjske Toplice have introduced a new treatment which promises smooth, firm and gleaming facial skin. This effective method is completely natural which enables lymph drainage, peeling and mezzo therapy without syringes. The new therapy with water and oxygen is suitable also for acne treatment, skin blemish reduction and even baldness elimination. The procedures are minimally invasive and as such have rejuvenating results without big risks, long rehabilitations and also costs. Jet Peel-Hydro Bliss method is a novelty and experts claim it has numerous effects since it is optimal for deep-cleansing facial treatments and deep skin hydration and oxygenation to name but a few. Among its beneficial effects are skin detoxification, swelling reduction and scar healing encouragement.

Sophisticated with an Edge

Fashion

Fructal entered the spring with a refreshed line of ice teas with three harmonious flavours: cranberry and raspberry, peach and strawberry, and lemon.

The lighter and more refreshing flavours with a lower fruit content are available in 0.5 and 1.5 l plastic bottles while the richer and more distinctive flavours with a higher fruit content can be found in new 1.5 l cardboard packaging. The company is proud to be the first in the Slovenian market to offer the consumers two ice tea alternatives at the same time, both in terms of flavours and packaging. All their ice teas do not contain preservatives, artificial flavourings or colourings. The Fructal experts say all their ice teas are made according to the customers’ tastes which are a result of numerous tests and tastings.

Interestingly, the peach flavour is still among the most popular flavours among the Slovenian consumers.

Beauty

New Fructal Ice Teas

Soft drinks

The Ljubljana ZOO opened a new children’s playground called African village which was given to it by NLB Vita, Life Insurance company. The atmosphere at the event was cheerful and relaxed and despite the April weather over two thousand visitors attended the playful Saturday at the ZOO. The children together with parents tried out the climbing houses, family floor trampolines, two family swings, a big toboggan and enjoyed the versatile animation programme. The new African playground is a part of the African playing complex which is about to be built in the Ljubljana ZOO including the equipment for the youngest visitors. The playground is going to make the ZOO which is already a popular meeting place of young parents and children extra interesting.

SuperTrash opened a shop in Galerija Emporium, BTC, Ljubljana The Dutch brand SuperTrash stands for living a successful life, being sophisticated and exposing yourself as you are. The brand may be born in L.A. but it definitely has been raised in Amsterdam and brought to big European success by the Dutch fashion entrepreneur Olcay Gulsen (in the picture with the Dutcha ambassador, Jos Douma). It boasts a dealer network of 1.000 high class boutiques and department stores. In 2009, Gulsen took over the worldwide business and made it an Amsterdam label and enterprise.

The Slovenia Times

Beauty

Lenox Corporation is one of the leading producers of qualitative tableware, gifts and collector’s pieces of porcelain and crystal in the world. Its three trademarks Lenox, Gorham and Dansk cater for various consumers’ needs but they are all distinguished by high design, innovative lines and easy usage. The fine Lenox porcelain is decorated by hand. Depending on the product, the items are adorned with platinum, 24 carat gold, precious enamel or with a combination of all mentioned materials. Lenox’ articles trademark is outstanding quality and artfulness of each piece. They incorporate ideas of many famous designers. Lenox is still the only American porcelain which has been in constant use for more than 80 years in the White House and is a popular gift item in political and private sphere. The fine Lenox tableware can be found also in Slovenia in shops of Steklarna Rogaška.

Choose Your Favourite

With the help of naturally active ingredients, Kozmetika Afrodita has been combating cellulite for 40 years. This spring they have launched a renovated Anti-cellulite line with outstanding results, based on observations of 45 women and in-vitro tests. There are three treatments you can choose from. One is based on cecropia, a plant from the Amazon rainforest also known as “the tree of slenderness” and has a great diuretic power. The second one contains Garcinia Cambogia extract which blocks the enzyme that is vital for fat formation. You can also opt for pitaya active gel which reduces the body girth with its antioxidants. You can intensify the anti-cellulite effects by using aroma massage tights which stimulate blood circulation and activate lymph flow and shape the body. You can order your free samples at nasvet@kozmetika-afrodita.si.

New beginnings

Column: Andja Maric

White House Porcelain

Tableware

47

I woke up this morning with butterflies in my stomach, excited like a little girl. I opened the window and the sunshine flooded in along with the crispy and fresh air. What better day for a new beginning?

For it is today that I have my first date with my brand new band from Hungary. I have never met these guys in person before. The audition was held via Skype (my favourite benefit of this century) and today I will be travelling to a rehearsal for our first show together. I really hope my luck hasn’t run out and that I have managed to find excellent musicians to continue my musical journey under the name of Kisha. When I started the Kisha project, my whole idea was to assemble a pleasant group of musical enthusiasts who would meet for jam sessions, have fun making music, enjoy good food and wine and then, united in their diversity, create something special. On days like this, I feel like luckiest girl on earth to have the job I do – that of entertainer and songwriter. But being an artist, and expressing myself through my music and lyrics, can also be scary. Lately I have found myself believing that the lyrics I sing should be carefully chosen, like a mantra, because they do come alive.

Just think of it: we are what we think. Words are swords, roses with thorns, depending on the energy they are sent to travel with. The last Kisha album “A Nyar” was all about my childhood in Hungary, my first loves, my last relationship and everything I felt at the time. I put so much passion into those lyrics, which were accompanied with melancholic music in the Hungarian style, that all of them became my reality. Is it just a coincidence? I really don’t think so. I wrote them, put passion into every performance, and the world, being a mirror to my attitude, materialised everything I sang and believed in. Is this why our worst fears usually become real? I think so. When you focus upon an unwanted aspect of something in an effort to push it away from you, it actually only comes closer. You get what you give attention to, whether it is something you want or something you don’t. In my case, the titles of the songs already speak for themselves: Fear, Love is not enough, Lie to me, and so on… So now I have decided it is up to me to focus upon and attract what I want. No more sad songs for me, I am all about to change my whole life.

As I chose my clothes from the wardrobe, I repeated the same process with my thoughts – focusing on what I want rather than what I don’t.

The minute I stepped out on the street, I felt the difference. I was met by smiles on strangers’ faces, the kindness of the gas station clerk, and the beautiful sunshiny day, just perfect for driving across the country. I have found solace in my vision of how this day is going to be, and it is becoming real as I type this. If I can’t change the world, at least I can change myself. We are creatures of the energy which emanates from each one of us, moulding our common realities. Can we make a difference to our common world if we focus on healing ourselves first and becoming happy, healthy cells in this wonderful organism of life we all live in? Call me a dreamer, but I believe so. I will let my every day be the first day of the rest of my life, and as for today I will let it be a fresh new beginning, because my happiness depends on starting today – every day.

48 EVENTS Exhibition

Urban Plastic Tue 22 Mar–Thu 30 Jun, Cankarjev dom, Ljubljana, no admission The exhibition Urban Plastic represents different points of view of urban furniture, which is somewhere between art and design. Sculptors Polona Demšar, Boštjan Novak and Jurij Dobrila have developed shapes which focus more and more on the complex mutual interaction of the local and the global, tradition and novelty. These statues offer the city a new identity, where friends can meet and children can play.

Photography

Caio Reisewitz Thu 24 Mar–Sun 15 May, Cankarjev dom, Ljubljana, no admission The invented world of Caio Reisewitz seems real. Almost.

But his dreamlike photographic collages are an illusion, a rigorous, detailed and meticulously created world, where a lush, often nondescript, Brazilian landscape dominates the image, giving way to small human figures, houses and architectonic details; a manipulated reality, which is at the very heart of Caio’s work. In an era where Photoshop reigns over the digital photographic world (and the very truthfulness of things is questioned , in his own words), Caio makes his collages from cutouts in huge enlargements, which are then glued, rephotographed and enlarged in a smaller format in order to provide a wealth of detail.

Pop

Wildbirds & Peacedrums Mon 2 May, 9pm, Kino Šiška, Ljubljana, EUR 8–12 Wildbirds & Peacedrums is a Swedish power pop duo. It is hard to believe that this amazing mixture of atmospheric pop, expressive gospel and punk rock is created only by drums and vocals. Wildbirds & Peacedrumsare are husband

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and wife, Andreas and Mariam, who have thrilled fans and critics alike, which helped them sign a deal with the record label Leaf Label (Murcof, Caribou, A Hawk And A Hawksaw). This concert is to promote their new album Rivers, which has helped to strengthen their reputation even further.

Classical

The Konzerthausorchester Berlin Tue 3 May, 7.30pm, Union Hall, Maribor, EUR 20 Listeners of quality classical music are in for a real treat with a visit from The Konzerthausorchester from Berlin, conducted by Lothar Zagrosek. The soloist for the evening will be Mirijam Contzen on violin. The programme will include the following pieces: Wolfgang Amadeus Mozart’s Overture to the opera The Magic Flute, Wolfgang Amadeus Mozart’s Violin Concerto No. 3 in G major, KV 216 and Ludwig van Beethoven’s Symphony No. 6 in F major, Op. 68.

World music

Adriana Calcanhotto

Tokyo Decadance Fri 6 May, 9pm, Kino Šiška, Ljubljana, EUR 12–15

American duo ViceVerse, made up of Dis-patch (Belgrade) and Communikey (Colorado), and the Slovenian collective Synaptic.

Avant-garde

Led Bib Wed 4 May, 9pm, Menza pri koritu, Ljubljana Led Bib is one of the hottest representatives of the British new jazz scene. Recently, they released their fifth album, Bring Your Own, on the legendary Cuneiform label, which means that they were instantly exposed to a wide audience of avant-garde jazz fans.

The band has been making a lot of noise ever since their debut Arboretum in 2005. The line-up: Mark Holub – drums, Liran Donin – bass, Toby McLaren – keyboards, Chris Williams – saxophone, Pete Grogan – saxophone.

Tue 3 May, 8.30pm, Cankarjev dom, Ljubljana, EUR 15–18 Adriana Calcanhotto is a Brazilian singer/composer. Her melancholic songs are most often categorized as belonging to the Música Popular Brasileira genre. She started her professional career in 1984, released her first studio album in 1990 and is deservedly considered one of the finest musicians in her country. The line-up for the concert: Adriana Calcanhotto – voice, acoustic guitar; Alberto Continentino – acoustic bass; Domenico Lancellotti – percussion.

Electronic

Ben Frost Wed 4 May, 9pm, Kino Šiška, Ljubljana, EUR 8–12 Ben Frost is an Australian born composer and audio artist. After the release of his album Theory of Machines, the critics labelled him as the prototype for the future of electronic music. His great power stems from the contrast between classical composing and the innovative use of lethal virtual instruments. His performances are intense and subtly brutal.

The support will be the Serbian-

Tokyo Decadance is a hot cocktail of Japanese-French extravagance.

This colourful show features Japanese urban tribes, DJ’s, dancers, explicit performers, fetish styling and daring fashion. This is a crazy party where the rhythm is set by industrial, gothic, trance, electro and techno DJ’s, the electro punk band Dead Sexy Inc. This is fun, unadulterated fun the likes Slovenia has never seen.

Electronic

Tomideli Martelli Fri 6 May, 11pm, K4, Ljubljana, EUR 8–10 This night will see K4 host one of the most prominent DJ’s from this territory, Tomidelli Martelli, who will be celebrating fifteen years in the business. It started out very modestly with high school parties and Martelli’s style has evolved along the way, but there’s one thing he keeps coming back to, his first love – house. Although his music contains elements from several electronic styles, it is house music that he is best known for. Martelli has become one of the most renowned DJ’s in the business, performing at the best clubs and festivals all over the world.

Avant-garde

Vialka Exhibition

Dragica Čadež, Retrospective Thu 5 May–Sun 3 Jul, Art Gallery, Maribor, no admission Academic sculptor Dragica Čadež, one of the most consistent representatives of the Slovene Neo-Constructivism, spent her youth in Maribor where Gabriel Kolbič introduced her into the art of small-scale sculpture. In 1963 she graduated at the Academy of Fine Arts in Ljubljana. Her sculptural oeuvre consists of several connected series in terms of structure and content, focusing mostly on a firm constructivism of the sculpture and considering the significance of the space.

The artist turned her ideas into sculptures made of wood, which is one of the oldest materials man had been using in order to express his creativity.

Fri 6 May, 10pm, Menza pri koritu, Ljubljana The French acoustic duo of Vialka comes from central France, even though the pair says they come from everywhere and nowhere. Their music transcends genre definitions, as we can hear glimpses of blues, gypsy music, rock, Chinese folk music, punk and much more. Their compositions are full of broken polyrhythms, screams, exclamation and plain fun. This exciting band consisting of drummer Marylise Frecheville and guitarist Eric Boros are here to promote their new record La pursuite de l’excellence, recorded with Bob Drake.

EVENTS 49 World music

27th International Druga Godba Festival Sat 7 May–Sat 14 May, various venues, Ljubljana Druga Godba, held for the 27th year running, is a festival of world and, to a lesser extent, contemporary jazz music. It ranks among Europe’s best festivals of slightly alternative music difficult to fit neatly into musical categories.

Druga Godba is well known for bringing to Ljubljana leading artists from different backgrounds and musical traditions who draw inspiration from different traditional folk musics and are committed to creative musical exploration. The Druga Godba line-up is sometimes even ahead of world trends.

World music

Staff Benda Bilili Sat 7 May, 9pm, Kino Šiška, Ljubljana, EUR 20–28

Staff Benda Bilili are a group of street musicians in CongoKinshasa. They live around the grounds of the zoo in Kinshasa, and play music which is rooted in rumba, with elements of old-school rhythm ‘n’ blues and reggae. The core of the band consists of four senior singers/guitarist, who are all disabled (they suffered from poliomyelitis when they were young) and move around in spectacularly customized tricycles.

They are backed by a younger rhythm section consisting of abandoned street kids who were taken under the protection of the older members of the band.

Post rock

M. A. Z. C. A. Mon 9 May, 9pm, Menza pri koritu, Ljubljana, EUR Lately we are being bombarded with great post rock bands. The dust hasn’t even settled after the performance of God is an Astronaut and we are already moving on to another new and exciting band. This time we will be able to witness the unique music of the Italians M. A. Z. C. A., who don’t have the high profile of some other

post rock bands, but they make up for it by putting their own stamp of uniqueness to their music. The line-up: Marco Bernacchia (guitar, synth, voice, xylophone) Michele Morganti (bass, electronics) Daniele Maori (drums, clarinet).

Classical

Benjamin Schmid Wed 11 May, 7.30pm, Union Hall, Maribor, EUR 14

Slovenia and has been creating music for several decades. Their previous album came out ten years ago and now they return with thirteen completely new tracks, with a unique sound that cannot be mistaken for anyone else’s. Their relentless and uncompromising vision is now emphasised even more with a rejuvenated rhythm section.

single Beautiful Tango and then with her debut album Handmade, which was released by Blue Note in 2010. Her gentle voice has been attracting concert audiences all over the world and there seems no stopping her. On this concert she will be supported by a local jazz and world music legend, the great saxophone player Vasko Atanasovski, who has also taken on the role of singer with his latest project Mljask.

World music

Hindi Zahra

Comedy

Fri 13 May, 9pm, Kino Šiška, Ljubljana, EUR 20–28

Trevor Lock Monday, 16 May, 8.30 pm, Cvetličarna, Ljubljana, Wednesday, 18 May, 9 pm, Jazz Club Satchmo, Maribor

Born in Vienna, Benjamin Schmid studied in Salzburg, Vienna and at the Curtis Institute in Philadelphia.

Over the next several years, Schmid went on to win further competitions, culminating in 1992 with the Carl Flesch Competition where he also won the Mozart Prize, the Beethoven Prize and the Audience Prize. We will be hearing some of his interpretations of Mozart, Paganini and Sabina Hank.

He will be accompanied by Ariane Haering on piano.

Trevor Lock is an English comedian, actor and playwright. He is noted for the circuitous and surreal nature of his stand-up comedy.

He has toured the UK supporting

Hindi Zahra is a Moroccan femme fatale living in Paris. Her songs are mostly sung in English, so she has been able to get a lot of worldwide attention, first with her

Classical

Slovenian Philharmonic Orchestra Thu 12 May–Fri 13 May, Cankarjev dom, Ljubljana, EUR 8–26 Conductor: Alain Paris, soprano: Theresa Plut Maestro Pâris and the Slovenian Philharmonic Orchestra will introduce concert audience with the three pieces composed by Florent Schitt, Francis Pouled and world-renowned Chinese composer Qigang Chen, who lives and creates in France. Therefore you are cordially invited to join us at pre-concert talk (on Friday, May 13 at 6.15, in the Lily Novy Club of the Cankarjev dom) with musical expert Maestro Alain Pâris, who will certainly tell as all we would like to know about French music.

Rock

Demolition Group Thu 12 May, 9pm, Kino Šiška, Ljubljana, EUR 12–15 Demolition Group is one of the most recognisable bands in May 2011

50 EVENTS both Stewart Lee and Russell Brand and made appearances at the Edinburgh Fringe. A founder member and co-host of the comedy cabaret Kool Eddy’s in London.

And he’s coming to Slovenia in the merry month of May!

Classical

Carmina Burana Wed 18 May, 8pm, Cankarjev dom, Ljubljana, EUR 13–24

Carmina Burana is the most recognisable work by the great Carl Orff, where he incorporated traditional motifs into a classical and operatic environment. This performance will be accompanied by a dance performance from the Szeged Contemporary Dance Company, from Hungary. The choreography was done by Tamás Juronics. Now we have a chance to see one of the most spectacular classical works in history accompanied by a truly spectacular dance performance.

Photography

Žiga Koritnik: A Point of Light Wed 18 May – 28 June, Cankarjev dom, Ljubljana, no admission The renowned Slovenian photographer has gained acclaim especially in the field of jazz and concert photography. In 2009, his book Punto di luce was published in Italy, focusing on the Sardinian carnival. Through B&W photos, taken since 2004, Žiga Koritnik foregrounds morsels from the celebration at the end of winter.

When the carnival takes over, people take their leave of absence to participate in the festivities, while those who live in the mainland inevitably return home...

The exhibition presents a unique opportunity to feel the spirit of the true Sardinia.

The Slovenia Times

Electronic

the charts. Just a short time ago, Saxon released their latest album Call to Arms, which will surely be presented at this concert as well. Saxon have no intention of going away! The night will also see Crimson of Passion and Lene Kosti opening for the headliner.

Electronic Carnival Fri 20 May, 9pm, Exhibition and Convention Centre, Ljubljana, EUR 25–135 For several years now, this has been the biggest electronic event in Slovenia. This is the second edition in a row to be held in the Slovenian capital of Ljubljana. To convince you that this really is a spectacle to behold, let us just tell you that on this one night you will be able to experience 18 of the most established DJ’s in the world playing on three different stages.

Some of the artists performing include Sebastain Ingrosso, Cosmic Gate, Beltek, F. Sonik, Daniel Greenx and several others. Not to be missed by fans of electronic beats.

Industrial

Swans Tue 24 May, 9pm, Kino Šiška, Ljubljana, EUR 22–25

Michael Gira founded the influential New York band The Swans in 1982. They soon became known for their insane, brutal and repetitive sonic outbursts, extreme levels of noise and the self-destructive, pathetic screams of Gira’s vocals, who blurted out slogans as if there was no tomorrow. They gradually changed their style and became a proto industrial rock band and they have been continuing to evolve until this day.

Electronic pop

Mars festival: Moby Thu 26 May, 6.30pm, Exhibition and Convention Centre, Ljubljana, EUR 38–60 This edition of the Mars LjubljanaZagreb Trans Europe festival will be marked by the performance of one of the most recognisable figures in the musical world in the past decade or so. Richard Melville Hall, better known as Moby, will surely attract a wide range of audience members, from younger electronic music fans to the older generation, which still

Electronic remembers Moby’s beginnings.

We are bound to hear some of his greatest hits, including ‘Why Does My Heart Feel So Bad?’, ‘Lift Me Up’, ‘Porcelain’, ‘Raining Again’, ‘Natural Blues’ and many others.

Chemical Brothers Fri 3 Jun, 9pm, Stožice Sports Park Arena, Ljubljana, EUR 50–75

Classical

Slovenian Philharmonic Orchestra Thu 26 May–Fri 27 May, 7.30pm, Cankarjev dom, Ljubljana, EUR 10–33 Piano Concerto No. 4, dedicated to the Archduke Rudolph, was premiered in March 1807 at a private concert of the home of Prince Franz Joseph von Lobkowitz.

However, the public premiere was not until 22 December 1808 in Vienna at the Theater an der Wien. Beethoven again took the stage as soloist. This was part of a marathon concert which saw Beethoven’s last appearance as a soloist with orchestra, as well as the premieres of the Choral Fantasy and the Fifth and Sixth symphonies. However, after its first performance, the piece was neglected until 1836, when it was revived by Felix Mendelssohn.

Metal

Saxon Mon 30 May, 8.30pm, Kino Šiška, Ljubljana, EUR 22 Saxon is a band that hardly needs any introduction. Ever since their beginnings in the late 1970s, Biff Byford (vocals) and company have been dazzling audiences with their fast and furious power chords, angry vocals and screams and many excellent albums, including several that have made it onto

After Moby, DJ Tiesto and several other big names in electronic music, we will have the honour of another legendary act – Chemical Brothers. Ed Simons and Tom Rowland already started making a name for themselves in the 1990s with their unrelenting vision for very dark, yet melodic electronic music fused with more organic elements. They are known for their many collaborations, including Noel Gallagher (Oasis) and Richard Ashcroft (The Verve). They have also put out several hit songs like: “Setting Sun”, “Block Rockin’ Beats”, “Leave Home”, “Life Is Sweet”, “Hey Boy, Hey Girls” and many other memorable dance hits.

Shopping

BTC Festival 21 and 22 May, BTC City The traditional spring Shopping and Fun festival attracts people with both special discounts and a variety of performances.

This year’s programme features concerts, workshops, children events and workshop, as well as sport tournaments and races.

Impressive mer ge of two

cultures presented by t he oldest instrument in t he wor ld

Chinese flute virtuoso

Liu Zhengguo and

Ljuben Dimkaroski from Slovenia with group Pella

11 May 2011 at 20.00

Slovene National Theatre Maribor

14 May 2011 at 20.00

Slovenian Philharmonic Ljubljana

Get your tickets at: Petrol stations, Post offices across Slovenia, Big Bang, Kompas, Hiša vstopnic - CityPark /LJ, Hiša vstopnic - Europark /MB Internet sales: www.eventim si, www.vstopnice.com. Telephone sales: + 386 1 420 5000 Organizers The Confucius Institute at University of Ljubljana, Faculty of Economics

Honorary Partner Embassy of the People’s Republic of China

Partners Academy of Music, University of Ljubljana Faculty of Arts, University of Ljubljana

52 SPORTS

Ice hockey

A Comedy of Errors Ice hockey in Slovenia rarely fails to provide excitement, intrigue, undercover moves, back stabbing, and even some fun, both on and off the ice. But as with the frequent fights on the ice, things are mostly forgotten by the next game – or at least the next season.

By Simon Demšar

Photo: BOBO

O

limpija and Jesenice remain the only serious Slovenian contenders. In recent years, they have found their place under the sun in the Austrian EBEL league, which provides respectable competition, sometimes too strong for the financially struggling Slovenian teams.

Olimpija and Jesenice were fiercely fighting for a top eight position in the EBEL league – mostly against Medveščak, Croatia, and Alba, Hungary – and a place in the play-offs. After many ups and downs, eventually Olimpija made it, while Jesenice finished in last position. Olimpija played Salzburg in the knock-out system and this was when sparks began to fly.

Following Salzburg coach Pierre Page’s critical comments that Ol-

The eternal rivalry of Olimpija and Jesenice.

impija’s Andrej Hebar should be sent to prison (for attacking Salzburg’s Kevin Puschnik, he was eventually suspended for the en-

tire season; many believe, partly based on Page’s comments), fans were eagerly waiting for revenge.

However, Page had another trick up his sleeve. Claiming that Ljubljana is too dangerous a place to play (despite being given official approval), he avoided confronting the furious crowd. Salzburg lost the game behind the green table but eventually eliminated Olimpija.

In the time between the end of the EBEL league and the national championship finals, Jesenice had a month to get its act together. They were well aware that the EBEL league was not a disaster, given the fact that they had a young team. Rok Tičar, Žiga Jeglič and Robert Sabolič further established themselves, and have been approached by other big teams.

Sabolič has already announced that he’s leaving for Medveščak, but if the management is able to keep the other two, the team – with an additional year of experience – might be a force to reckon with next year. After all, with

the exception of two or three top teams, there was little to choose between other EBEL league teams.

Even Olimpija came close to beating eventual champions Salzburg in the quarter finals.

National championship finals brought more excitement and political battles off the ice. When the finals were about to begin, Jesenice’s Podmežakla Hall was closed for failing to obtain an operating permit. Many, including the mayor of Jesenice, believe that this was a political trick. It was issued only for the fourth match, after Jesenice had won the first two games in Ljubljana and the third one in front of empty seats.

Jesenice’s coach Heikki Mälkiä has been kept on for the next season. “Frankly, I want to stay in Jesenice for reasons beyond ice hockey. My family and I feel great here and I had no second thoughts about extending the contract. The core of the team is great and we want to build on that next year.

Failing to qualify for EBEL playoffs leaves some bitter aftertaste, but this will make us even more hungry next season. We healed some wounds by winning the national title and this is a big boost for the future,” said the Finnish coach.

What strikes the eye in terms of the national championship is the lack of enthusiasm among fans, perhaps even players, particularly in Ljubljana. There were times when you had to queue for hours to get hold of the ticket, while this year only 2,000 tickets were sold for both Ljubljana matches. The EBEL league drew a lot of attention, while the national championship appeared to be redundant.

Muršak joins Kopitar Meanwhile, Slovenian players are doing great in the NHL. With 73 points (goals plus assists) Anže Kopitar is the most successful player of Los Angeles Kings. Playing his 330th consecutive game for the team (in four years, he’s missed only ten matches), he hurt his ankle and was forced to miss the playoffs. Team management openly admitted that they had lost their best player while fans call the Los Angeles Kings, “the Los Anzeless Kings”. This year, Kopitar was joined by Jan Muršak as the second Slovene in the NHL , replacing an injured team mate. Muršak played 18 matches and scored one goal.

The Slovenia Times

A giant leap at increasing competitiveness in Slovenia has been made in the field of natural resources, especially in the quality of environment.

Competitiveness of Slovenian tourism on the rise In research by the Global Economic Forum, Slovenia progressed by two spots in the ranking of competitiveness: from number 35 in 2009 to number 33 in 2010.

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In the Travel and Tourism Competitiveness Report 2011, which reviewed 139 countries – six more than in 2009 – Slovenia moved from 35th spot to 33rd. The research by the World Economic Forum shows that the country’s competitive advantages still lie in business environment and infrastructure (33rd place); opportunities to set up tourist infrastructure (17th place); ground transport infrastructure (25th place); informa-

tion technologies (25th place); and in the areas of safety (29th place) and sustainable environment development (23rd place). The biggest leaps have been made in tourism – by 36 spots to rank 44th overall. In the field of support to tourism Slovenia is now in 49th place (up from 70th in 2009) and in natural resources Slovenia has moved 15 spots to 64th (79th in 2009). The progress in the quality of natural environment is particularly significant – Slovenia now sits in 16th place.

The survey by the World Economic Forum did however show declines in some areas. In air

traffic infrastructure the country fell from 70th to 74th place; in price competitiveness it now sits in 99th place; 42nd position for visa policies; and 116th place for both foreign capital presence and effects of regulations on foreign direct investments.

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The definition of celebrity: Porn model Ines Juranovič, Standup comedian Tin Vodopivec and TV presenter Bernarda Žarn at “Famous people cook” presentation. (Mediaspeed) Launch of Simbioz@, a huge national voluntary project to increase the electronic literacy among the seniors.

Miss Sports 2011 competitors with actual Miss Živa Viktorija Turk (first on the left). (Mediaspeed)

The elite police: Athletes Tina Maze and Dejan Zavec with Interior Minister Katarina Kresal instructing the kids on pedestrian safety (BOBO)

EVERY PICTURE TELLS A STORY

The big Mini event: Openin of the MINI saloon in Ljubljana

Intrepid cellulite fighters: Afrodita cosmetics team with The Slovenia Times’ Goran Mladenović and Irena Kržan at the launch of renewed Anti-Cellulite line.

Slovenian Fashion designer Matevž Faganel at Practicum: British Fashion-2 event during the Mercedes-Benz Fashion Week in Moscow.

(British Council)

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