WBJ Observer May 2016

MAY 2016 FOR DAILY NEWS VISIT US AT

wbj.pl

Number 05 (27)

PLN 24.50 (VAT 8% included) ISSN 2353-3714 INDEX-RUCH-332-127

LET’S HAVE ANOTHER ONE

500+ PROGRAM

20 PAG ES 25 PAG ES OF REAL ESTAT E NEW S

REAL ES AT E NEWT S

WILL 500 +

PROGRAM HELP POLAND’S DEMOGRAPHY ?

MAY 2016

• C o m m e n t a r y • R a n k i n g • I T • N ew s • L i fe st y le • E ve n t s

INTERVIEW / RAFAŁ TOMASIAK

M

Y

Y

Y

24

may 2016 • WBJ OBSERVER

INTERVIEW / RAFAŁ TOMASIAK

WBJ OBSERVER • may 2016

25

Visit our site - wbj.pl For latest news, features and commentaries.

Morten Lindholm Publisher mlindholm@valkea.com Jacek Ciesnowski Editor-in-Chief, WBJ Observer jciesnowski@wbj.pl Beata Socha Managing Editor, Lokale Immobilia bsocha@wbj.pl Michael Evans Copy Editor Journalists Daria Mamont dmamont@wbj.pl Wojciech Rylukowski wrylukowski@wbj.pl Tomasz Chwinda Art Director tchwinda@valkea.com Aleksandra Szydło Junior Graphic Designer aszydlo@valkea.com Contributors Ewa Boniecka Sergiusz Prokurat Kamila Wajszczuk Adam Zdrodowski

SUBSCRIBE TO WBJ OBSERVER

Choose by checking the box o Print Edition: PLN 550 Print edition (in Poland only) includes three annuals: • Made in Poland (Polish Export Scene) • Investing in Poland (featuring TrendBook Poland) • Book of Lists (covering more than 60 business sectors) o E-zine edition: PLN 450

FOLLOW THE PLAYERS, THE INDUSTRIES, THE COMPANIES, THE PEOPLE WHO ARE MOVING POLAND FORWARD. Subscriber details Name ....................................................................................

Company ...............................................................................

Address .................................................................................

Postal code ............................. City.......................................

Country .................................................................................

Sales & Marketing Director Tomasz Pawlak tpawlak@wbj.pl Sales Magdalena Klimiuk mklimiuk@valkea.com Katarzyna Pomierna kpomierna@valkea.com Grzegorz Tarnowski gtarnowski@valkea.com Jola Zbieg jzbieg@valkea.com PR & Marketing Anna Augustyniak-Hoffman aaugustyniak@valkea.com Agata Wolny awolny@valkea.com Magdalena Czopur Subscriptions mczopur@valkea.com Krzysztof Pągowski Book of Lists Project Manager kpagowski@valkea.com Krzysztof Wiliński Print & Distribution dystrybucja@valkea.com Magda Gajewska Event Director, Valkea Events mgajewska@valkea.com Contact: phone: +48 22 257 75 00 fax: +48 22 257 75 99 e-mail: wbj@wbj.pl

WBJ.pl

Telephone/Fax ......................................................................

Enquiries Magdalena Czopur mczopur@valkea.com +48 22 257 75 00 ext. 245

e-mail....................................................................................

WarsawBusinessJournal

@wbjpl

Copyright © 2014 by Valkea Media SA

NIP (Poland)/EU VAT number (EU countries) ...............................................................................................

Please fax this form to: +48 22 257 7599 or mail it to our office: Subscriptions WBJ Observer • Valkea Media S.A. ul. Elbląska 15/17, 01-747 Warsaw, Poland

All rights reserved. This publication or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher.

Published by ul. Elbląska 15/17 Valkea Media S.A. 01-747 Warszawa Tomasz Opiela, CEO NIP: 525-21-77-350 www.valkea.com To subscribe through RUCH SA: www.prenumerata.ruch.com.pl, prenumerata@ruch.com.pl, 801 800 803

2

COVER IMAGE: Shutterstock

may 2016 • WBJ OBSERVER

IN THIS ISSUE

26-30

500+ PROGRAM

INTERVIEW WITH LOKALE IMMOBILIA GRZEGORZ SCHETYNA

6

18

6-11 In Review Latest news 12 Dateline 13 Economy

22-23 Joseph Reger 24-25 Rafał Tomasiak

64-65 Ranking Technology parks 66-68 Events CEEQa 70 Events Fujitsu world tour 72 Events Congress of local governments 74 Events Europower

32

76

32-34 Furniture Sitting comfortably

76-77 Gadgets 78-79 Lifestyle eSummer festivals

NEWS

14

COMMENTARY

14 Law Trade secrets 16 Law Stopping the hate 17 Real Estate Design & Build

3

18-20 43-63

may 2016 • WBJ OBSERVER

INTERVIEWS

FEATURE

37-42 Tech Insights

LIFESTYLE

WBJ OBSERVER • may 2016

3

COMMENTARY / ON INfOrMATION TEchNOLOgy

DEAr rEADErS

}

JACEK CIESNOWSKI, EDITOR-IN-CHIEF, WARSAW BUSINESS JOURNAL GROUP

The 500+ program was Law and Justice's flagship proposal to lure voters. It worked and now it has been launched. Will it improve the country’s failing demography? Will it boost household spending, or put huge dent in state coffers?

In other features we profile the growing furniture sector in Poland. The country is one of the biggest global producers of not only chairs and beds, but also doors and windows and Polish companies sell their products all over the world. We also have a number of interviews, including one with Civic Platform leader Grzegorz Schetyna who spoke about how he is finding his new role as opposition leader. We also spoke with representatives from Fujitsu and Zortrax, among others.

In our Lokale Immobilia section we take a look at the office market and how office landlords choose their tenants. Very often it’s not only a matter of rent, but brand recognition and a company’s size that are deciding factors for proprietors when selecting tenants. We also cover recent changes in law which will make buying agricultural land more difficult for everyone who is not

4

february 2014 • WbJ ObSerVer

a farmer, and we ask why residential properties are a hot topic among investors.

In the Tech Insights supplement (renamed from IT-Insights to reflect the broader scope of subject matter we will cover) we look at how Big Data technology providers target SMEs. With costs becoming lower and the amount and diversification of data increasing, what are the barriers that still prevent small and medium-sized firms from taking advantage of Big Data solutions?

With summer on the horizon we have a lot of publishing plans for the next few months: June and the double July/August issues, but above all the latest Book of Lists annual will be released in late June just in time for the gala. In the summer we’ll start working on our Investing in Poland annual which should be released sometime in the fall.

ZAWSZE BĄDŹ O KROK DO PRZODU. DACHSER European Logistics

■ ■ ■ ■

5

may 2016 • WBJ OBSERVER

Międzynarodowa i krajowa sieć drobnicowa Zarządzanie łańcuchem dostaw Logistyka kontraktowa i magazynowanie Innowacyjne technologie informatyczne

www.dachser.pl

lll INREVIEW NEWS

News highlights of the past month

German car manufacturer Daimler AG has decided to build a €500 million Mercedes Benz engine factory in Jawor, Poland, the company announced on May 4.

“The decision to locate the factory here shows Poland's openness to foreign investments. I am certain that the investment will strengthen PolishGerman relations,” said deputy Prime

6

may 2016 • WBJ OBSERVER

Minister Mateusz Morawiecki.

The new plant is set to be completed in 2019 and will create several hundred workplaces.

Daimler will produce four-cylinder gasoline and diesel engines for Mercedes-Benz passenger cars. “The planned establishment of a new engine plant in Poland is a further step in our global growth strategy. Capacity

expansion in Eastern Europe reflects the increasingly international orientation of our powertrain production compound. This will lead to more flexibility and efficiency in our worldwide production network,” The Financial Times quoted Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management.

Image: Shutterstock

Mercedes to open €500 mln factory in Poland

NEWS

Poland records sharp decline in Press Freedom Index P

oland slipped 29 positions compared with last year and ranks 47th in the 2016 World Press Freedom Index announced by advocacy group Reporters without Borders.

The index ranks 180 countries on indicators such as media independence, self-censorship, the rule of law, transparency and abuses.

“Shortly after winning the 2015 election, the conservative Law and Justice party passed a media law empowering the government to appoint and dismiss the heads of state radio and TV broadcast media. It took effect in January 2016.

Under a second law being prepared, the contracts of all employees of these media would be terminated. Alarmed to

see a European Union member violate fundamental EU values, the European Commission launched a procedure designed to ensure respect for the rule of law in Poland,” the report read.

Christophe Deloire, secretary general of the Paris-based group told British newspaper The Guardian that this year’s index saw a decline in all parts of the world. “All of the indicators show a deterioration. Numerous authorities are trying to regain control of their countries, fearing overly open public debate,” he said.

Finland, the Netherlands and Norway came in the first three positions, while North Korea and Eritrea occupy the two bottom spots.

STATE-OWNED UTILITIES TO FINANCE PGG COAL GROUP On April 26, coal group PGG signed an agreement with the largest coal company in Poland and Europe - Kompania Węglowa (KW). The agreement was the last stepping stone needed for PGG to begin operations.

It will be funded by state-controlled utilities.

Twelve investors signed the letter of intent to recapitalize PGG to the amount of PLN 2.42 billion, including: KW, PGE Górnictwo i Energetyka Konwencjonalna (PGE GiEK), Energa, PGNiG Termika, Węglokoks, Fundusz Inwestycji Polskich Przedsiębiorstw (FIPP), Towarzystwo Finansowe Silesia, Alior Bank, Bank BGŻ BNP Paribas, Bank Gospodarstwa Krajowego, Bank Zachodni WBK, and PKO Bank Polski.

According to PGG, PGE GiEK, Energa and PGNiG Termika will invest PLN 500 million; TF Silesia - PLN 400 million; FIPP - PLN 300 million; and Węglokoks PLN 217 million each. In contrast, the banks, along with Węglokoks, declared the acquisition of new PGG bonds to the amount of PLN 1.37 billion as a result of the refinancing of the current KW bond program.

WBJ OBSERVER • may 2016

7

NEWS

NETFLIX RECORDS 160,000 REAL USERS IN MARCH American on-demand internet streaming media provider Netflix had 337,000 real users and 2.74 million views in Poland in January, the month it was launched, according to gemiusAudience data for wirtualnemedia.pl.

The following months weren't as good. In February, Netflix recorded a decline in the number of real users to 73,000 and the number of views fell to 619,600. March saw an improvement, with 160,600 users and 959,800 views.

Netflix was launched in Poland on January 6.

The offer for Polish viewers starts from €7.99 (roughly PLN 35).

AMREST TAKES OVER STARBUCKS IN GERMANY WSE-listed restaurant chain operator AmRest has signed a deal with Starbucks Coffee Company to take over 144 Starbucks brand restaurants in Germany for an estimated €41 million, the company said in a filing.

The deal will come into life on May 23 and the final price will be settled upon the finalization of the agreement, which is expected to occur on May 22. AmRest wants to triple the number of Starbucks outlets in Germany.

At present, there are 158 Starbucks restaurants in Germany, of which 144 are owned by Starbucks Deutschland and are the subject of the deal. The firm’s estimated 2015 revenues stood at €131 million, on which it generated a €6 million EBITDA. AmRest will pay a license fee to the amount of 6 percent of revenues from each Starbucks restaurant in Germany to the owner of the brand and a $25,000 one-off fee for opening a new restaurant. The group will also bear the cost of local marketing spending: the annual fee will amount to 4 percent of sales revenues in the first year of the agreement, the Polish Press Agency said.

D

eputy Finance Minister Wiesław Janczyk said that Poland will likely fall short on its revenue target for the tax on bank and insurer’s assets.

“The data clearly show that inflows will be lower than we planned in the budget bill,” Janczyk said, adding that the outcome is not a surprise. “Everywhere that sector taxes have been introduced, re-

8

may 2016 • WBJ OBSERVER

sults have proven worse than expected in the early phase of implementation.”

Janczyk also said the revenue from the tax could be increased by averaging out banks’ holdings of sovereign bonds, which are exempt from the tax, instead of using month-end figures.

Poland calculated that the tax would bring in PLN 5.5 billion.

Images: Shutterstock

Poland will not reach revenue target on bank

NEWS NEWS / SNAPSHOT

Smoke signals Legia fans fire flares before the Polish FA Cup finals at PGE National Stadium in Warsaw on May 2.

The game, won by Legia 1:0, was halted numerous times when Lech fans threw flares at the ground during the second half of the game, one of which even hit Legia’s goalkeeper Arkadiusz Malarz. After the match both clubs were severely punished by the Football Association, Lech will pay PLN 250,000 and Legia PLN 100,000. They will also have to pay for all of the damages caused by their fans.

WBJ OBSERVER • may 2016

9

NEWS SUPREME COURT TO RECOGNIZE UNPUBLISHED CONSTITUTIONAL TRIBUNAL VERDICTS Poland’s Supreme Court has adopted a motion saying that it will recognize the verdicts of the Constitutional Tribunal even if they remain unpublished by the government.

The court said that “in order to maintain the unity of jurisprudence,” an unpublished verdict of the Constitutional Tribunal comes into force at the moment it is announced by the Tribunal.

The Supreme Court is the highest judicial authority which exercises legal supervision over the operations of general and military courts.

ASSECO SIGNS TWO CONTRACTS IN NIGERIA Asseco Poland, along with Asseco Software Nigeria, has signed two contracts in the financial sector in Nigeria, Asseco Software Nigeria’s CEO Simon Melchior said. The value of the transactions are unknown.

The first agreement involves providing Swift Confirmation Matching Modules to a Nigerian multinational commercial Access Bank.

Another one involves implementation of the StarINS solution at Wapic Insurance, Nigeria’s leading insurance company.

Asseco Poland is the largest software producer in Eastern Europe. The company has been listed on the WSE since 1998.

NATO to station 4,000 troops in Poland and Baltic countries T

he North Atlantic Treaty Organization (NATO) is set to place some 4,000 troops in Poland and the Baltic countries in an attempt to strengthen Europe's Eastern border, according to the international daily The Wall Street Journal.

“The US is likely to provide two battalions, while Germany and Britain would likely provide a battalion each, according to Western officials. Russian officials have repeatedly said their own build-up and exercises are a response to NATO’s troop build-up and aggressive posture to Moscow,” the newspaper reported.

In February, NATO defense ministers in principle approved the deployment of an Eastern European troop presence, though diplomats said the new contribution numbers haven’t been finalized. NATO’s military arm, the Supreme Headquarters Allied Powers Europe, sent the recommendations to the alliance headquarters in Brussels, where they are being reviewed.

In recent weeks, Russian jets performed “aggressive flight manoeuvres” against a US warship which was cooperating with Polish personnel in the Baltic Sea, American naval officials stated.

Barack Obama, the President of the United States of America, along with John Kerry, the US Secretary of State, have officially announced their visit to the NATO summit in Warsaw, which will be held on July 8-9.

“The President and I look forward to joining you in July for the NATO Summit in Warsaw, which will be a fitting showcase for the continued strength and resolve of our Alliance in a period of considerable stress,” Kerry wrote in an open letter to Poles on April 29. “The bonds between our two peoples extend back to the period of American

10

may 2016 • WBJ OBSERVER

independence, were invigorated through solidarity at the end of the Cold War, and have been strengthened further by our joint commitment to shared ideals of democracy and the rule of law. Today, our nations collaborate closely on a range of economic and security issues, and our soldiers serve side by side in regions around the world.

Together, we are determined to resist all threats to the safety and well-being of our citizens,” the letter read.

It is the first time in its history that Poland will organize a NATO summit.

Images: Shutterstock

Barack Obama and John Kerry to visit Poland

NEWS

Foreign Minister on penalties for refusing asylum seekers F

Commission not to take that route. The decision regarding quotas has been made... I keep wondering if this proposal is for real, because it sounds like an April Fools’ joke,” Waszczykowski told a press conference.

On May 4, the European Commission

revealed its plan to impose a sanction of €250,000 per person on countries that refuse to accept refugees under the obligatory quotas scheme agreed in September 2015. In line with the accord, Poland pledged to resettle around 7,000 asylum seekers.

Images: Shutterstock

oreign Minister Witold Waszczykowski has criticized the European Commission's proposal to impose financial penalties on countries refusing to take their share of asylum seekers.

“We would like to ask the European

WBJ OBSERVER • may 2016

11

Calendar May-June

NEWS / ECONOMY

May 17-19

May 18-20

SOOIPP Annual Conference Event: The event is organized by the Polish Business and Innovation Centres Association (PBICA) and the Foundation for Technology Entrepreneurship (FTE). This year the event combines two conferences: the XXVII Annual PBICA Conference “Utilizing the potential of innovation and entrepreneurship centres for technology companies development” and the “StartSmart Conference.”

Location: Hotel Golden Tulip, Warsaw Web: 2016.konferencja-sooipp.pl/en

European Economic Congress Event: The event is a three-day series of debates and meetings with the participation of 6,000 guests from Poland and other European countries who talk about issues of the greatest importance to the economic and social development of Europe.

Location: International Conference Center, Katowice Web: eecpoland.eu

May 19

Retail Connect 2016 Event: Retail Connect 2016 is another edition of the annual meeting on technology innovations and retail trends. This event, attended by market leaders, will include a conference, the Retail Connect Expo trade show, networking, after-party, and the Retail Evolution Awards 2016 ceremony.

Location: Novotel Airport, Warsaw Web: retailconnect.pl/en

May 18-20

infoShare 2016 Event: infoShare 2016 will bring together 5,000 tech professionals, developers, entrepreneurs and innovation leaders.

For three days Gdańsk will be the best place for networking, and knowledge & experience sharing in Europe.

Location: AmberExpo, Gdańsk Web: infoshare.pl

June 3-5

June 1-2

ReDI CEE Trade Fair for Retail Investment 2016 Event: ReDI CEE Trade Fair for Retail Investment is a European meeting place for representatives of towns and cities, property developers and retail chains that have a development strategy for the region of Central and Eastern Europe.

Over 1,400 decision-makers, representing the retail real estate sector, and 350 representatives of retail chains will attend.

Location: PGE National Stadium, Warsaw Web: redi.org.pl/en

June 6-7

Polish Real Estate Forum Event: The conference addresses key players on the residential and commercial real estate market: developers, realtor agencies, representatives of banks, construction companies and architectonic design studios, and financial intermediaries. This event offers the opportunity to exchange experiences, establish new business contacts, and learn more about new, hot market trends.

Location: Sheraton Sopot Hotel Web: konferencje.nowyadres.pl/en/polishreal-estate-forum

12

may 2016 • WBJ OBSERVER

June 13-14

Spotlight Hotel Investment Poland Event: Spotlight Hotel Investment Poland will gather developers, investors, hotel chains, financial institutions, as well as suppliers of products and services for hotels to discuss the prospects for growth, financing and managing of hotel projects. The conference comprises five panel discussions: the Polish Hotel Market, Development, Investment, and Chain and Financing.

Location: Hotel Intercontinental, Warsaw Web: spotlighthotel.pl/home-en.html

June 16

WallStreet 20 Conference Event: The WallStreet conference is the biggest meeting of individual investors in Poland.

Traders, investors, market analysts and representatives of listed companies will discuss the current investment landscape in Poland.

Location: Gołębiewski Hotel, Karpacz Web: sii.org.pl

Manufacturing Excellence Awards & Strategy Summit Event: The conference will present experts from many sectors of manufacturing, including FMCG, Food, Heavy Industries, and others. The speakers will present their efforts not only to survive in these challenging times, but will also discuss how to build a competitive advantage, in order to expand their businesses while keeping costs and investments under control.

Location: Hotel Intercontinental, Warsaw Web: manufacturingawards.eu

FACTS AND FIGURES Data overview for March-April

Warsaw Stock Exchange as of April 2016 Number of listed companies:

-0.9%

484

was Poland’s CPI inflation

TRADE VOLUMES

10%

0.5%

y/y industrial output growth

SHARES

registered unemployment rate

PLN 59.7 billion BONDS

PLN 354 million

3%

y/y retail sales growth

FUTURES

2.37 billion Higher GDP growth

budget deficit at the end of February

Deflation holds

Steadily down

Year-on-year CPI inflation in Poland, March 2015 – March 2016

Poland’s registered unemployment rate, March 2015 – March 2016 12

-0.5

-1

11 10.5

-1.5

“It will be a huge operation, completely possible to execute...

The central bank will have to get involved,” said Jarosław Kaczyński, head of the ruling party, about the franc denominated mortgage loans conversion.

11.5

10

Feb. '16

Mar. ’ 16

Dec.’15

Jan, ‘16

Oct.’15

Nov.’15

Sep. ‘15

Jul. ’15

Aug. ‘15

Jun. ‘15

Apr. ‘15

May ’15

Mar. ‘16

Jan. ’16

Feb. '16

Dec. ‘15

Oct. ‘15

Nov. ’15

Sep. ‘15

Jul. ’15

Aug. ‘15

Jun. ‘15

Apr. ‘15

May ’15

Mar. '15

9.5

-2 Mar. '15

Data source: Central Statistical Office (GUS), Warsaw Stock Exchange

2.53%

PLN 9.6 billion

The European Commission estimated that Poland’s GDP will grow by 3.7 percent in 2016 and 3.6 percent in 2017. The new economic forecast assumes higher growth than in February.

Taxes on labor income for the average worker amounted to 34.7 percent in Poland and were slightly below the OECD average of 35.9 percent in 2015.

WBJ OBSERVER • may 2016

13

COMMENTARY / LAW

ALEKSANDRA WĘDRYCHOWSKA-KARPIŃSKA, LEGAL COUNSEL, PARTNER CO-HEAD OF THE INTELLECTUAL PROPERTY & TMT PRACTICE, WKB WIERCIŃSKI, KWIECIŃSKI, BAEHR

VALUABLE KNOW-HOW IN EU SPOTLIGHT One in five businesses falls prey to trade secrets theft, while many never even identify or secure their confidential information. Practically every business entity has proprietary data, technology or formulae that hold a substantial market value and drive the enterprise's competitive edge. In short, protecting your trade secrets is important, regardless of the size of your firm. It is important for SMEs (one very well-known trade secret litigation case in Poland involved recipes for vegetable salads). Business secret rights do not need registration, or require the payment of any official fees. It is sufficient to identify such information, then record it and use technical measures and confidentiality agreements to protect it against disclosure to third parties.

On April 14, 2016, the European Parliament adopted a proposal for a “Directive on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure” (“Trade Secrets Directive”).

The directive is designed to harmonise the level of know-how protection across Member States.

This proposal marks the end of legislative efforts to draft a regulation that would enhance know-how protection while preventing attempts to restrict employees from using their skills in their subsequent employment, or to limit access to information about infringements of law.

According to the directive, courts would be authorized to direct that infringing products are not manufactured or sold, or must be destroyed. This resolves the issue of whether the court can only go as far as prohibiting the use of trade secrets, or may also order measures which directly affect the goods manufactured using the infringed know-how. Such a claim increases the chance that the unlawfully acquired information will not be re-used by the infringer.

14

MAY 2016 • WBJ OBSERVER

Polish lawmakers can find it a challenge to implement additional regulations on damages for unlawful acquisition, use, or disclosure of secrets. The EU law requires that the “quantum” of damages should also take into account the moral implications of the trade secrets theft. The courts will able to impose lump-sum fines, calculated on the basis of potential royalties fees, for use of the infringed trade secrets.

ACCORDING TO THE DIRECTIVE, COURTS WOULD BE AUTHORIZED TO DIRECT THAT INFRINGING PRODUCTS ARE NOT MANUFACTURED OR SOLD, OR MUST BE DESTROYED. THIS RESOLVES THE ISSUE OF WHETHER THE COURT CAN ONLY GO AS FAR AS PROHIBITING THE USE OF TRADE SECRETS, OR MAY ALSO ORDER MEASURES WHICH DIRECTLY AFFECT THE GOODS MANUFACTURED USING THE INFRINGED KNOW-HOW The directive offers a range of welcome solutions that protect trade secrets during infringement litigation.

Many businesses give up on enforcing their knowhow rights in court, fearing that they may have to disclose their secrets for evidentiary purposes. This issue turns out to be another challenge for Polish legislature.

The Directive is certainly good news for companies wishing to protect their know-how within the EU. Member States have 24 months to implement it. u

COMMENTARY / LAW

KATARZYNA KOSIŃSKA-POLAK, LEGAL ADVISOR, PARTNER AT MKZ PARTNERZY

A ‘CATCH’ FOR THE HATER Courts often tend to find it problematic to differentiate between lawfully prohibited hate speech and a simple unfavorable opinion. It could be that the same comment is judged twofold: either as a breach of the right to freedom of expression, or as an acceptable criticism.

Polish jurisprudence highlights that the language used on the internet not only deviates from the norms established in other means of communication, but it also tends to be more blunt. In Art. 41 of the 1984 Polish Law on the Press, we can find a clause emphasizing that “publishing of just and negative reviews of either scientific or artistic works, or other creative, professional or public activity that are consistent with the principle of social-coexistence remains protected by law.” This clause also applies to situations involving satirical or caricaturist work.

With a deep belief that their behavior will not be punished, many online users continue to insult others. They see “vitriolic internet hatred” as a separate phenomenon that does not correspond with “online hatred.”

From a legal perspective, however, online slander falls under the scope of legal liability, regardless of whether it happens on the street, or in a shop. The difference lies in the negative consequences: as spoken words will soon be forgotten, comments written online can last for years, thereby causing irreversible damage.

Typical haters use aliases to hide behind a cloak of anonymity. And that is another error – the Supreme Administrative Court (NSA) put an end to this practice in 2013 by revoking the judgment of the regional administrative court. The reasoning of the Court’s judgment held that “in matters regarding the protection of a company’s or an individual’s reputation, not the Personal Data Protection Act, but the Act on Rendering Electronic Services applies.”

That reasoning was revoked by the NSA. The Court’s judgment indicates a change to past practices by granting access to personal data of natural or legal persons, as provided by the Personal Data Protection Act (e.g. in cases of slander).

If the website administrator rejects a request for disclosure, an application can be made to the Inspector Gen-

16

MAY 2016 • WBJ OBSERVER

eral for Personal Data Protection (GIODO; Generalny Inspektor Ochrony Danych Osobowych) who, in line with administrative procedures, will provide the user’s data (IP address, e-mail address, login data). The data can be disclosed to the police, prosecutor or the person concerned.

Subsequently, the injured party can now request the information from the website administrator, stating that there was an interference with his or her personal rights.

Bearing in mind the negative consequences of online hate speech, we should focus on its intricate nature. Except for the damage to our image (loss of reputation), there are also psychological consequences that might lead to depression, or even suicide. The difference pertains to the business sector. Negative opinions about products and services affect revenue. In a situation in which insults have been carefully planned by competitors, the provisions of the Unfair Competition Act apply.

Therefore, in each case, the victim has the ability to undertake necessary legal steps against the hater. The legal means that help defend one’s good name are based on the substantive provisions of the Polish Civil Code (Art. 23 and 24) and include: delivery of an official apology, removal of the effects thereof, or financial compensation. The first step is to ask the website administrator to remove the inappropriate content. In my experience, it is only a matter of time for the comments to be removed, as long as the request is supported by the appropriate legal arguments.

The injured party can also pursue legal recourse under the Polish Penal Code (PPC). If he has been a victim of a defamatory statement (Art. 212, PPC) or was insulted (Art. 216, PPC), the offender is punishable by a fine, restriction of liberty or imprisonment of up to a year. Offending religious feelings can also come into play (Art. 196, PPC).

Haters often believe that the injured person or company will refrain from undertaking any legal action against the misconduct. Here too, they are wrong, with more individuals determined to enter into a legal dispute.

In the private sector, the consequences involve revenue losses. Individuals, however, often argue that high financial compensation is not the main issue for them. They simply believe that haters must be punished. In short, it is a “matter of principle” that is worth pursuing. u

COMMENTARY / REAL ESTATE

DANUTA BARAŃSKA, CREATIVE DIRECTOR, TÉTRIS

DESIGN & BUILD Design&Build is a new buzzword that has captured the commercial space fit-out sector, used in construction companies’ names, or as a catchphrase in their offers. However, even a superficial analysis of the subject reveals many differences. What exactly is Design&Build?

What is its main purpose? And finally, who does it benefit the most?

In a nutshell, Design&Build means time-saving, money-saving and responsibility. Many of us have encountered a situation in which an excellent design has turned out to be unfeasible due to the building’s technical or budgetary requirements. Moreover, subsequent design revisions result in considerable schedule adjustments, leading to sizeable costs. It’s a no-win situation – the client, architects, contractors and service providers are all affected.

Jigsaw puzzle Design&Build means creating a common platform for all the stakeholders and entities involved. The aim is to create a comprehensive approach to the entire process, rather than assigning separate areas of responsibility. This approach limits investment risks at each stage.

Several approaches exist:

Image: Shutterstock

Firstly, the purest approach: a project is implemented comprehensively by one company – from recognizing the client’s expectations and required functionalities (often not fully implemented), to a space and installation design that meet the client’s needs and budget, to construction works and the interior fit-out. The range of works may be limited to creating an empty space or involve a complete interior design arrangement, e.g. furniture, fabrics and decorative details. This is the most straightforward solution: one entity, one responsibility. It is also the easiest from an investor’s perspective: establishing and conducting cooperation, handing over the project or claiming compensation.

architects translate the client’s needs and expectations to specific dimensions and shapes. However, they need many details concerning the building’s technical capabilities, availability of materials and financial terms. Here, tremendous support comes from the entity responsible for all the works, the one managing the project’s budgeting and execution. The main advantage for the architect in the Design&Build model is that they do not design blindly. They use specific information acquired from their partners: whether an idea is technically feasible in a particular building (following the verification of documentation with the factual status), how the choice of materials affects the implementation of costs, how the procurement process impacts the time program and deadlines. This eliminates the need to revise the design several times, and the architect doesn’t waste time on acquiring the necessary data.

The architect and the contractor are separate entities in the combined Design&Build model. While an independent architecture firm produces the design, the contractor’s expertise allows it to become optimally realistic from the very beginning. The contractor’s in-house architect is critical in acting as a link for the external firm, advising on a subcontractor’s ability to produce individual design elements. u

Secondly, there is a mixed approach, where one entity coordinates a number of contractors, while performing only some of the work. This entity may collaborate with external architects, or other participants selected by the investor. However, the responsibility for the entire project rests with the coordinator. This solution allows for the development of a design that meets the client’s expectations and is in line with specific construction conditions, time and budget. It significantly reduces modifications and revisions to the design.

The architect and the fit-out contractor are the two key Design&Build model elements, requiring precise coordination. The designers and

WBJ OBSERVER • may 2016

17

INTERVIEW / GRZEGORZ SCHETYNA

NO SHORTCUTS I N T E R V I E W B Y E WA B O N I E C K A

GRZEGORZ SCHETYNA, THE LEADER OF CIVIC PLATFORM (PO), SPOKE TO WBJ OBSERVER ABOUT HIS PARTY IN OPPOSITION, THEIR FIGHT WITH THE CONSEQUENCES OF THE CONSTITUTIONAL CRISIS IN POLAND, AND ABOUT THE STEPS IT HAS TAKEN TO PRESENT ITSELF AS AN EFFECTIVE PARTY THAT CAN RESPOND TO THE NEEDS OF POLES WHO WANT TO LIVE AND WORK IN A SECURE, DEMOCRATIC AND RESPECTED EUROPEAN COUNTRY WBJ Observer: You became the leader of Civic Platform under very difficult circumstances; after the party’s defeat in the parliamentary election and during the crisis concerning the Constitutional Tribunal. What do you regard as your priority in leading PO? Grzegorz Schetyna: My priority as leader of the opposition in Poland and leader of Civic Platform is to protect the democratic legacy of the last 25 years. Within the party I need to focus on rebuilding the structure and restoring the effectiveness and the credibility of the party and faith that we are the future and that we can win the next election. We have two and a half years to accomplish that, with local and parliamentary elections ahead of us.

Many PO voters were disappointed with Civic Platform for various reasons when it was in power. Now, as the leader of PO, you are expected to deliver a new, credible program and a clear definition of the party’s identity.

Yet it seems that the party is trapped in a cycle of internal struggle, and is not able to present a new, coherent program. Fighting against Law and Justice (PiS) policies is not enough in the view of your potential voters. How do you respond to this criticism?

We have drawn conclusions from the last elections and I am well aware of the importance and responsibility to present a clear program for Poles and Poland, one that will bring back stabilization, democratic order, one that will focus on the

18

may 2016 • WBJ OBSERVER

well-being of Poles. At the end of September we are organizing a party congress, we will present a clear vision of Poland “after PiS,” following the next parliamentary elections. This will be a vision that reflects the aspirations and dreams of Polish citizens. That is why we have begun to build so called “citizen clubs” – forums of debate, where we conduct discussions with various groups of society exchanging views on the future of our country, freedom, citizens’ rights and aspirations, education, culture, history, tradition, social and economic problems, foreign policy and many more issues. The interest in these “citizen clubs” is high, each is attended by a few hundred people – young, elderly, those who support PO and those who support other political parties but who want to be heard and who are concerned about various Polish matters. Our program will address those concerns.

During those debates, were any questions raised concerning the present political character and long-term identity of Civic Platform?

Civic Platform is a centrist party, which has defined conservative and liberal characteristics. It is a party that is open to tradition, the historic legacy of the country, patriotic values and obligations. We stress that our principles are based on democracy, freedom and respect for human rights.

We are part of the European Union and we care for our strong political and economic position within the EU. We take a liberal stand on economic matters, linked with a sensibility for social needs, we stress the need for better education and

the creation of quality jobs for Poles. We want to provide young people with decent jobs and the opportunity to make a good living in their own country.

But why are you taking such a long time to prepare and present a solid party program?

This is not a race. As I said, our new party program is being created with the involvement of large groups of Poles. They are part of the process of rebuilding and strengthening Civic Platform. We are not only creating our network of “citizen clubs,” we are also strengthening our intellectual base. We are also remodeling our think tank – the Citizens Institute (Instytut Obywatelski) led by Jarosław Wałęsa, the son of legendary “Solidarity” leader Lech Wałęsa, and expanding its board, inviting prominent intellectuals to sit on it. We have also invited young scholars to get involved. We want to entice new activists into the party, bring some new faces into PO, involve a new generation of Poles in our activity and to build an open and dynamic Civic Platform in all regions.

There can be no shortcuts in rebuilding a great party. Ours is the party that brought Poland solid economic performance, financial stability, effective social policy and a strong position among the democratic community of states and an important role in the European Union and NATO. Pointing to our many achievements whilst in government, we reject the PiS lies about that period and the claims made during the electoral campaign that “Poland is in ruin.” We reject their false account of the Smolensk catastrophe, their policy of abusing and dividing Poles, their violation of the judicial system and the civil service, and their drive to control all domains of public life. Poles do not want such an oppressive government, they do not want restrictions on their freedom.

So, we have to be patient, and while PiS will weaken, we must present a concrete

Image: Jan Malinowski/ WBJ

INTERVIEW / GRZEGORZ SCHETYNA

WBJ OBSERVER • may 2016

19

INTERVIEW / GRZEGORZ SCHETYNA

offer for the future. I am certain that in September, after broad consultations with Poles, we will be ready to present Civic Platform’s strategic program.

What is your view in relation to the possibility of resolving the conflict about the Constitutional Tribunal?

I would like to see such a possibility, but the Chairman of PiS Jarosław Kaczynski, Prime Minister Beata Szydło and President Andrzej Duda have shown that they do not want to resolve this conflict.

They have ignored the recommendations of the European Commission and the Venice Commission. Appeals from the European Parliament to implement the decisions of the Constitutional Tribunal have also been dismissed. The PiS government ignores the fact that its violation of democratic procedures and standards is harming Poland’s interests and is weakening our position within the EU, with all the consequences that this holds for our country. Civic Platform will not stand aside and observe as PiS ruins what we have worked for over the past few years.

We must expose and criticize PiS’s party stance, nonetheless, PiS was elected in a democratic election, and opposition parties have to respect that fact while battling against them. Most crucially, Civic Platform has to prove and convince Poles that we can act effectively in opposition and that we are preparing a credible offer for them at the next election.

Poland’s relations with the US are also on probation due to the government’s violation of the democratic order. Do you think that it could have an influence on procedures and the results of the NATO summit in Warsaw, or our defense policy in the framework of NATO? The NATO summit in Warsaw was initiated by the PO government, with the strong support of former president Bronisław Komorowski at a time when our relations with the US and other NATO members were very solid, warm and fruitful. The situation in Poland has changed for the worse, but I hope that the summit will go ahead as planned. The NATO alliance is a strong multinational defense organization and the Warsaw Summit is very important for all of its members, especially in the present dangerous international context. Therefore, I

20

may 2016 • WBJ OBSERVER

hope that it will go well and bring good results.

Moving on to economic issues and minister Morawiecki’s plan to increase the state’s role in our economy, what is Civic Platform’s response to the announcement?

Civic Platform’s economic stance is linked to its liberal approach in shaping policies with the awareness of conditions that occur in the global capitalist economy. There is no room nowadays for isolationism in running economic policy.

Financial and trade systems are interlinked and the situation in one country affects others. Hence, caring for and promoting the country’s economy and trade interests must be carried out within a framework of principles of a liberal market economy. This also concerns the approach to the activity and the role of international investors who compete for the best placements. Poland needs such investment and should attract it. The barriers currently being built by the government against the flow of foreign investors to our country are harmful to Poland’s economic development.

What we have to do is to reduce bureaucratic barriers and improve the legal and environmental conditions in which private companies, including foreign businesses, operate. The state’s role in the economy should be concentrated on creating the best conditions for all private sector activity. Thus, the government’s increased role, proclaimed by minister Morawiecki – a situation in which the economy and the establishment of special holdings is run and owned by the state and financed from the budget, with managers chosen by politicians – will not bring good results. The money put into the economy should be used effectively and that is done best by private companies in all countries. I hope that minister Morawiecki, who is so suspicious towards foreign investors, will become aware that economic cooperation between local governments and foreign investors, which was so strongly supported by PO, is desirable and effective. It pushes private capital into our economy and creates quality jobs. Nevertheless, I am afraid that the present troublesome political situation in Poland will discourage investors from putting their money into our country. So, the damage done by

the PiS government – running economic and financial policy focused on spending public money – will force us to prepare a corrective program for the economy.

Do you see the need and possibility for closer cooperation between PO and other opposition parties, including the party led by Ryszard Petru, in the fight against PiS and, in the long term, in preparing a common program for the next parliamentary election?

Civic Platform is ready for effective cooperation with opposition parties, and maybe we could work together preparing a common outlook for the next elections.

If the PiS government forces our state into debt and continues its present internal and foreign policy, which is harmful for our country, I think that we should be ready to work out a common program for a future government. We have to convince Poles that if it is necessary, we will create an anti-PiS coalition, because the most important task is to maintain a stable democracy and a strong international position, and to do so we have to remove PiS from power.

When you look abroad, which party leader, who was in opposition and later won an election, could be an inspiration to you?

I think that it would be Tony Blair, the leader of the Labour Party in Britain, who after years in opposition remodeled his party and led it to election victory. He based his party on some old principles, but rebuilt it, changed it in many aspects and won the support of voters. He was an effective leader who was not afraid to make some unpopular decisions, which he did in the best interests of Britain and Europe.

Are you optimistic, when working on the current remodeling process and the future of Civic Platform?

Yes, I have to be, I want to be, and I am an optimist. We are opening a new chapter in the workings of the party, and a new beginning in communicating with Poles.

Civic Platform has a new leader, we have new people in our party leadership, and together we will convince Poles that it is possible to achieve anything we all aspire to – that we will win, and lead our country to success and Poles to a better and safer life. I strongly believe in this. u

INTERVIEW / GRZEGORZ SCHETYNA

WBJ OBSERVER • may 2016

21

IINNTTEERRVVIIEEW W // JJOOSSEPPEHH RREEGGEERR

THE NEXT BIG THING I N T E R V I E W B Y WOJ C I E C H R Y LU KOW S K I

JOSEPH REGER, THE CTO OF FUJITSU, MET WITH WBJ OBSERVER TO TALK ABOUT THE INTERNET OF THINGS

22

may 2016 • WBJ OBSERVER

as comparing data, for example the temperature exceeded 25 degrees therefore this equipment broke down. Sometimes it’s very complicated and it requires data from many sources. If you add that capability into the lot, we can figure out why things happen and how we can change them to become more optimized, so it’s way beyond the sharing of information and assets.

At which stage of the IoT revolution are we at now?

The IoT, with the huge amounts of data and contextual information, isn’t useful unless we can add machine learning and intelligent methods and algorithms into the means of analyzing it. Fortunately, our computational capabilities have been growing and growing, and we are able to deal with huge amounts of data and perform extremely demanding analysis. That is actually needed now, because the old style of analyzing – putting a hypothesis in there and watching what happens – made it difficult to discover

anything, especially if the response to your hypothesis came after a few days when you were in a different state of mind. New com-

WHEN ASKED WHEN THE NEXT GOOGLE WILL COME FROM EUROPE – IT'S NOT RELEVANT, OUR FUTURE IS DECIDED

BY HOW WE EVOLVE WHAT WE ALREADY HAVE. putational levels are important because what they make possible is real-time feedback. You get answers immediately.

Images: Fujitsu

WBJ Observer: You once said that the Internet of Things (IoT) would change our lives in the same way the internet did.

Would you elaborate on that?

Joseph Reger: We should not talk about a single point solution, but about the potential of technology. What did the internet do? It introduced communication, which allows the sharing of information. The true potential of the internet is clear – that is the sharing of information, labor, ideas, and now also goods, cars or private rooms and so on.

The Internet of Things, with its sensors and all kinds of information, which can be collected and analyzed using a few parameters, gives us something that we have never had before – contextual information. The context that we obtain through sensors, equipment and real-time data is game changing once we understand the possibilities that are hidden within that data. We have the context, but what we don’t know is causality – that is why something is happening – this we need to figure out. Sometimes it’s as easy

I INNTTEERRVVI IEEW W // JJOOSSPEEPHH RREEGGEERR

With self-learning and cognitive algorithms you can set off installations to optimize themselves whichever way they think is correct, based on real-time and historical data. That combination is still the next big thing, because it’s difficult to say where it will end. And for the first time ever, we have huge amounts of data about the past, about the present and about the future – yes, we get data about the future, for example, mathematical models forecasting what will happen to a machine. It makes the IoT incredibly useful, therefore I think it’s going better than I predicted.

Why should we digitalize things?

We are putting information technology into more and more parts, pieces and objects, we are digitalizing everything around us and we are securing new opportunities to collect data, analyze and predict – to become more knowledgeable.

The important thing for Europe is to understand that everything that surrounds us is old. Our history, roads, bridges, buildings, cities are old, these are all analogue objects.

What we need to do is use digital technologies and make a bridge smarter by having sensors that provide advance warning if maintenance is needed. The same for roads, buildings and human bodies – medicine which is released when it is needed, based on measurements from sensors inside human bodies. That is digitalization – putting technology into analog objects, while digital is something that was born this way, for example, Facebook. We are a continent with a long history and infrastructure. When asked when the next Google will come from Europe – it’s not relevant, our future is decided by how we evolve what we already have.

The IoT raises security concerns – orchestrated attacks are easier when there are so many things connected to the internet. Should we be afraid?

These concerns are justified, therefore it is of paramount importance that companies invest in security technology, data privacy technology and identity management technology. If we don’t do that, this kind of business will not be possible, because it would be too dangerous. The beauty of IT technology is that it can protect itself with IT methods.

Since the very beginning of technology, everything can be used as a tool or as a weapon – starting with a stone. Both sides are progressing very quickly, but with the power of new computers and new software, we are going to protect ourselves. u

WBJ OBSERVER • may 2016

23

INTERVIEW / RAFAŁ TOMASIAK

I N T E R V I E W B Y WOJ C I E C H R Y LU KOW S K I

POLISH 3D PRINTER MANUFACTURER ZORTRAX HAS TAKEN THE WORLD BY STORM, WINNING INTERNATIONAL AWARDS AND TRIPLING SALES REVENUES YEAR-ON-YEAR. RAFAŁ TOMASIAK, THE CEO, TELLS WBJ OBSERVER THE STORY OF THE COMPANY, HOW IT BECAME THE FIRST POLISH FIRM TO SUCCESSFULLY RAISE MONEY ON KICKSTARTER, AND WHAT THE FUTURE HOLDS

24

may 2016 • WBJ OBSERVER

Where did you get the money to finance the undertaking?

In the beginning, we financed the project from our own means, but the money quickly ran out, just when we had a product ready.

We tried to look for an investor or a business angel, but at that stage of developing a startup, the investment funds were too “bloodthirsty.” We turned to Kickstarter in hope of getting $100,000, and we managed to raise $180,000, thus we became the first Polish company to succeed in reaching its aim on that crowdfunding portal. The Kickstarter campaign gave us a lot of publicity, which turned out to be more valuable than the money we raised. The sum was only a drop in the ocean in terms of what was needed to launch production. Nonetheless, it allowed us to make a step forward. With all the publicity we got, we decided we needed to accelerate, and at the beginning of 2014 we issued unsecured bonds. We raised PLN 7.2 million, which was quite amazing since we’d only officially existed for a few months.

Your flagship printer – the M200 – won numerous international awards, including the best plug’n’play 3D printer according to users of the 3Dhubs.com portal. What’s the secret of its success?

Images: Zortrax

KICKSTART TO GLOBAL EXPANSION

WBJ Observer: Zortrax is a fast developing, internationally recognized 3D printer manufacturer. Could you tell us about the beginnings of the company?

Rafał Tomasiak: Everything started in 2006-2007. We saw that a growing number of SMEs were in a need of 3D printers and we decided to buy our own machine to see how it works. It was an open-source kit that we had to assemble, so it took two or three months to put it together. We also spent some time learning how to master totally non-intuitive software, though we had experience in programming. After half a year of struggling to launch the device, we were extremely disappointed with the effect it produced. Sticky pieces of plastic weren’t what we were looking for. After doing some research, we realized that 3D printing was beyond the reach of the majority of firms worldwide, as the cost of professional devices started at a few hundred thousand dollars. It was then that we decided to make a 3D printer on our own – to develop firmware, electronics, etc. From the very beginning we had a clear idea, which we still hold to now, that we had to build a complete ecosystem, that we could offer a device that is almost ready to use out of the box.

INTERVIEW / RAFAŁ TOMASIAK

There are many factors that contributed to this success – the ease of use, the short implementation time, low failure rate and very intuitive software. Companies don’t have to spend money on extra courses for employees; they can start using it after reading a two-page instruction booklet. The software “thinks for us” – it knows what a user wants to achieve after clicking a few simple buttons. But, the most important thing is the quality of the print. We offer one of the highest qualities, even compared with industrial printers, which are much more expensive than ours. The M200 is an all-in-one printer; it may be used in small companies, as well as in large corporations. It fits every segment of the market, whether it’s the defense sector, medicine, architecture, industrial design, the automotive or aviation sector. It’s universal.

The Polish economy is regarded, oftentimes rightly so, as not innovative. How do you see the success of your company in this setting? What kind of help do you expect from the state?

The Polish economy is not as backward in terms of innovation as it is painted to be.

We are global leaders in certain segments, for example video games and software development. We have some of the best programmers and software developers in the world.

When it comes to hardware, indeed, we are backward, but we are catching up.

There are also other positive signs. Recently, Zortrax won a tender for the delivery of 180 3D printers for public utilities in the Mazowsze region. It shows that tenders organized by the state are designed to include innovation. Anyway, it’s not that bad, but one can always moan that progress is too slow or is heading in the wrong direction.

training courses. We do plan foreign openings but this is a long-term perspective. The opening of the store was a pilot program; we wanted to check how much money, work and resources it would take to launch it. We think it’s been a success in terms of our image and the education of the market about the technology and our products.

Zortrax is to be listed on the stock exchanged. When is it going to happen?

The size of the issue is still undetermined, it depends on how fast we evolve and what the market situation is at the time – as of now it’s not favorable. The WSE debut is not our strategic aim, it’s an added value, but we won’t push for it no matter what. The prospectus has been filed with the financial watchdog KNF and we want to be traded by the end of the year. The capitalization of the company amounted to PLN 225 million last year after a successful pre-IPO in July 2015.

Since then, the company has developed; we recorded high revenues of PLN 37.6 million in 2015, and a net profit of PLN 8 million in 2015, so we more than tripled our results compared with 2014.

What are your aims for the future?

We want to grow even faster by introducing new devices; one or two of them will make an appearance later this year. There are

some acquisitions on the horizon, but I can’t reveal any details at the moment. We want to be the leader in the segment of small and medium-sized enterprises, and our ambitions go beyond that – we want to be among the top three global leaders in 3D printing.

How do you see the future of the sector?

Will it revolutionize our lives?

I keep opposing the idea of a 3D printer in every home. The devices were never addressed to private consumers because one has to know how to use professional 3D modeling software in order to enjoy its possibilities. I can’t imagine that an average user could learn modeling. And even if he masters it, what next? What will he design and print? Spare automotive parts? Would you use plastic brake pads in your car that you’d printed at home? Of course, you can print and replace handles, latches, and this kind of stuff, things that often break at home, but it’s way cheaper and easier to buy them at a store than to design and print them on your own. There were rumors that 3D printing would supersede manufacturing technologies. I strongly disagree with that. 3D printing was not invented for the mass production of things, but it is the missing link in the manufacturing chain.

They are extremely useful when it comes to prototyping. u

Images: Zortrax

Could you tell me why public utilities in Mazowsze need 3D printers?

They are there to offer the possibility to become familiar with 3D printers. Small and medium-sized entrepreneurs may think that 3D printing technology exists and it may be useful for their company, but they never had a chance to see how it works. In this case, they can go to such a facility and check what’s in it for them.

The Zortrax Store in Warsaw plays a similar role. Are you planning to open them abroad?

Our Zortrax Store located in Warsaw on ul. Grzybowska is run by our reseller. Customers can become acquainted with our printers, buy one, or subscribe to various

WBJ OBSERVER • may 2016

25

COVER STORY / 500+

A safe investment?

26

may 2016 • WBJ OBSERVER

Image: Shutterstock

B Y S E R G I U S Z P R O K U R AT

COVER STORY / 500+

THE NEW GOVERNMENT HAS FULFILLED ITS PREELECTION PROMISE AND INTRODUCED A COSTLY PROGRAM WITH THE OBJECTIVE OF PROMOTING DEMOGRAPHIC DEVELOPMENT IN POLAND, WHICH IN TERMS OF THE NUMBER OF CHILDREN BORN – 1.3 PER COUPLE – IS SERIOUSLY LAGGING BEHIND IN EUROPE AND THE WORLD. IT IS NOT KNOWN, HOWEVER, WHETHER THIS INCENTIVE WILL WORK, OR WHETHER IT IS A DEMOGRAPHIC, OR RATHER A SOCIAL PROGRAM The Family 500+ program constitutes a system support program focused on Polish families. In accordance with the program, the state will help parents in bringing up their children until they turn 18.

A family with two minors will be able to receive the equivalent of about €120 for their second child, regardless of income. In the case of families with an average monthly income below €190 net per person, such a family will also receive support for their first child up to the age of 18.

Piotr Szukalski, a demographer from the University of Łódź, argues that from a demographic point of view, the 500+ program has properly identified its target group. That is people who have at least one child, and are considering having a second, provided that the circumstances are favorable. This is because it is the second and the third child who will, in practice, dictate the level of deviation from the expected current substitutability of generations. The bi-annual research (Social Diagnosis), conducted by Janusz Czapiński, shows that as much as 40 percent of the people surveyed in Poland have decided not to enlarge their families for financial reasons. “For a certain group of people, the lack of resources constitutes an obstacle to having offspring. It is therefore a safe investment for the nation to survive. Nevertheless, in the election

WBJ OBSERVER • may 2016

27

COVER STORY / 500+

campaign it was highlighted as a pro-natal and not a social initiative,� Szukalski claimed. However, the latter is evident, because the program is directed at children who have already been born.

Demographic approach Poland is adapting to European patterns. Szukalski sees it as catching up with the demographic approach, which has not been a priority for many years. The structure of the 500+ program is inspired by similar programs that are already in operation in Europe. Those countries which provide monthly benefits for families with children include: Belgium, Denmark, Germany, Greece, France, Ireland, Iceland, Italy, Spain, the Netherlands, Norway, Austria, Sweden, Finland and the United Kingdom. Outside Europe it is less frequent, but this type of program is also present in Singapore, where parents are given SGD 9,000 for their second child and SGD 18,000 for their third child. When Vladimir Putin began his fertility campaign in 2008, the streets

were dressed with billboards and posters encouraging citizens to have children, and the government began to pay mothers the equivalent of $10,000 for the birth of their second child. Where did the idea of paying people to have children come from?

The concept of more children meaning tangible advantages for the state appeared before the interwar period. At the end of the 19th century, during the FrancoPrussian War, French politicians came to the conclusion that the more people that were born, the more soldiers there would be to serve the country, as the chances of giving birth to a boy was 50 percent on average. However, at the beginning of the 20th century, the military men and their authoritarian far-reaching plans had been replaced by economists with their calculations in spreadsheets. And so, they calculated that more children are necessary to maintain high economic growth.

Meanwhile, the birth rate began to drop below the replacement level (2.1 children per woman) in Western Europe decades

PLN 17 bln The estimated cost

Images:Shutterstock

of the 500+ program in its first year.

28

may 2016 • WBJ OBSERVER

Images:Shutterstock

COVER STORY / 500+

ago. In 1979, the global birth rate was 6.0. Today it is 2.52 and it continues to fall. Alvin Hansen, an American NeoKeynesian economist, noted, as one of the very first to do so, that a slowdown in population growth leads to a downturn in the overall demand, including the demand for investments, which pushes the economy into crisis. We can try to fight it by lowering interest rates to such an extent so as to maintain demand for investments, despite the decline in the population. The problem is that it eventually leads to negative interest rates. If we trusted the demand school on economics, this statement could be true, particularly when looking at the declining population of Japan, where economic growth is close to zero and the interest rates are negative.

Serious demographic programs, which proposed paying parents to have children, appeared before the Second World War. In 1943, in one of his radio broadcasts, Winston Churchill expressed the opinion that one of his deepest concerns is the declining birth rate in the UK. Previously, a similar problem was addressed by Hitler. After he came to power, he introduced a law, according to which, a married couple (provided the wife gave up work) received a loan of 1,000 marks, which was the equivalent of several months’ salary for an average German. The loan was written off, depending on how many children the family had.

Two children meant writing off half of that amount. Four children and the debt was considered null. In the 1930s France began to pay its citizens as well. And it

is France’s experience that can be considered a prelude to the present trend of sponsoring fertility. In 1938, a regulation was introduced that provided a yearly grant for parents of each baby born. Today, that way of thinking is emulated by many countries.

Uncharted territory Unfortunately, research conducted by economists and experts does not confirm the effectiveness of this type of program.

Analysis made by economist Jan M. Hoem proves that an increase in expenditure on fertility by 25 percent results in a less than 0.5 percent growth rate in the short term, and approximately 4 percent in the long term. Szukalski claims that no one is able to answer the question of what the consequences of the Family 500+ program will be. “Possible effects should be seen in two dimensions: actual changes and calendar changes. Probably, for some people, who were already considering having another child, it will speed up the implementation of their plans, with a concern that the program may disappear within a few years. Therefore, its positive effects will be observed rather quickly –

“CRITICS OF THE 500+ PROGRAM POSE THE QUESTION OF WHETHER POLAND CAN AFFORD IT.

after a year or two. The increase may even amount to a 10-15 percent birth rate.

Then the 500+ program will no longer have such a positive effect.”

Critics of the 500+ program pose the question of whether Poland can afford it.

The government assumed that the benefit will go to 2.7 million families, raising 3.8 million children and that it will cost about PLN 17 billion in the first year (2016) and PLN 22-23 billion annually after that. These estimates assume that 2 percent of the amount (more than PLN 340 million) will be absorbed by the administration, i.e. the salaries of officials.

Several thousand posts have been prepared for people who will, among other things, review submitted applications – something a good computer algorithm could do instead. The cost of the entire 500+ program is equivalent to building 550 km of motorways annually (€9.6 million per 1 km), or 61 km of metro lines (assuming €85 million per km). It is more than the cost of maintaining the entire higher education system in Poland (almost PLN 20 billion) and almost as much as the maintenance cost of the national defense with weapons, army, logistics, supply and command. The Chinese organized several flights to the Moon for less. It is a huge amount of money that must be borrowed in the form of bonds, printed by the State Treasury. Forecasts of the EC indicate that in 2017 only Portugal and Romania will have a higher budget deficit than Poland. By giving away the money, at the expense of a huge public debt, we give consent to rob future generations. The question is, whether the

WBJ OBSERVER • may 2016

29

kids, when they grow up and inherit the indebted country, will choose to emigrate or not?

So far, the reaction to the 500+ program has been positive. According to research conducted by CBOS in February 2016, as many as 80 percent of Poles support, or strongly support, the 500+ program. On the other hand, only about 30 percent of Poles believe that the benefit will result in more births. In the 25-44 age group, a little more than 20 percent of respondents think that fertility will increase.

Is this hypocrisy or rationalism?

Maria Zych, a mother of two from Warsaw, claims that no one would choose to have a child simply to receive additional money. “I believe that there should be more free kindergartens and nurseries.

In fact, I am going to spend this money on a nursery. For me it will be a measurable help, because it is additional money, which I am going to spend on childcare.”

Not all Poles approach this topic similarly.

According to research conducted by ARC Rynek i Opinie, about 21 percent of the parents who can count on the PLN 500 child benefit intend to spend it on general family necessities (including books).

According to other studies, the main objective is food and clothing for children, or rent and living costs. Nevertheless, the next item on the list is holidays for parents, or electronic goods. A high place is

30

may 2016 • WBJ OBSERVER

IN TIMES WHEN SOCIETY CONSISTED OF ILLITERATE PEASANTS, CHILDREN WERE AN ASSET PROVIDING PARENTS WITH FREE WORK AND CARE IN THEIR OLD AGE. occupied by alcohol and other drugs. Although the target transfer of public money to families is considerable – PLN 23 billion – only 2 percent of Poles believe that they will be able to save some of the sum.

The wrong solution?

“Before the election, the governing party announced that the benefit would fall to all children, but after the election and the recalculation of the program, they limited it to the second and all subsequent children. Instead of supporting families in this manner, the government should rather diagnose why the birth rate in Poland is so low. It is, to a large extent, the consequence of an unstable labor market, the inadequate number of state childcare institutions, and housing problems,” Maria Zych

continued. These issues are confirmed in Szukalski’s analysis: “Without improvements in the labor market and greater access to housing for young people, fertility will not increase. For a Polish woman, one child is now a real measure of success. This is due to the strong domination of liberal narration, including underscoring the values of work and career. Many Polish women find this reality comfortable.”

In times when society consisted of illiterate peasants, children were an asset providing parents with free work and care in their old age. In a modern society, which offers various ways of spending time, children are an expenditure of time and money. The number of children has been replaced by investing in a child’s attributes – and it is a clever strategy. Figures show that educated women have fewer children, since the cost, including the alternative cost of having children, is increasing. An American economist, Shirley Burggraf, the author of the book “Feminine Economy,” stated that for many families the cost of children, understood not only as an expenditure, has become so large that it is unbelievable that women want to have children at all. She claims that parental love has never cost as much as it does now.

If all costs are added up, we would reach an amount of €50,000 per child in Poland from birth to their 18th birthday – and more than €100,000 in the UK. u

Image: Shutterstock

COVER STORY / 500+

COVER STORY / 500+

Who’s on top in your market?

A guide to Polish business and industry

New edition available soon

www.bookoflists.pl WBJ OBSERVER • may 2016

31

Furnishing the world B Y K A M I L A WA J S Z C Z U K

POLISH FURNITURE, HOME FURNISHINGS, AND WINDOW AND DOOR EXPORTS HAVE BEEN GROWING STEADILY IN RECENT YEARS. THE ONGOING CONSTRUCTION BOOM AND THE ABUNDANT SUPPLY OF RAW MATERIALS ARE BOTH CONTRIBUTING TO THE SECTOR’S EXPANSION. HOWEVER, PRODUCERS STILL HAVE WORK TO DO ON DESIGN, INNOVATION AND BRAND AWARENESS

P

oles seem to be flocking to interior decor stores and collectively refurbishing their homes.

The country’s furniture market registered a 5.8 percent growth in 2014, reaching a value of $5.67 billion, according to data from Euromonitor International.

Analysts believe that the situation reflects the improving GDP growth and an increas-

32

MAY 2016 • WBJ OBSERVER

ing willingness to spend money on the part of consumers. Moreover, the number of households in Poland increased to 13 million in 2014, fueling demand for furnishing products.

As the economy expands, the trend is likely to continue. During the period 20142019, sales of home furnishings are expected to grow by one percent year-on-year (at

2014 prices), according to a Euromonitor forecast. “It is worth noting that stricter regulations regarding credits, which may hinder the demand, are likely to be implemented.

On the other hand, even in tough times, Poles demonstrated a desire to refresh their interior decor, which is relatively easy with such a wide offer of less expensive products.

This will certainly contribute to the further development of the home furnishings market,” said Justas Gedvilas, industry analyst at Euromonitor International.

Another analytical firm, PMR, expects the retail market for home furnishings (including furniture) to grow by 4 percent and reach a value of PLN 13.2 billion in 2015.

Its analysts point to both the economic situation, and the increased sales of new property. As residential real estate development companies continue to announce new investments, especially in large cities, there is ground for optimism.

Construction and refurbishing activity is also fueling the growth of the window and door market in Poland. In 2014 it grew by 8 percent y/y and the same growth rate is expected for 2015, according to PMR. Windows sold better than doors, largely due to high exports. Sales of windows on the domestic market grew by 8 percent y/y in 2014, while for doors the figure was 6 percent. When both domestic and export sales are considered, the growth rates were 10 percent and 8 percent respectively.

Images: Shutterstock

FEATURE / FURNITURE

FF U N UI TRUE R /E F/ U FRENAI TT U ER AT UR R EE

Window and door exports 2009-2014 € billion 2009 3.03 2010 3.30 2011 3.92 2012 4.36 2013 4.81 2014 5.21

Source: ASM – Market Research and Analysis Centre

Furniture exports 2009-2014 € billion 2009 5.01 2010 5.63 2011 6.45 2012 6.61 2013 7.06 2014 8.03

Images: Shutterstock

Source: B+R Studio

The general good condition of the economy and the ongoing improvement in the housing construction industry contributes to the growth in the sector just as much as the trend for more expensive, energy-saving products. A large number of customers are now replacing older windows and doors with more energy-efficient products, PMR analysts said.

The Polish Windows and Doors Association (POiD) believes that in the near future, the main driver for the sector will come from refurbishing work in existing housing and not from new construction. Its members are working to promote modernization and energy-efficiencnt projects, which could bring an increase in both volume and value.

EU funding also plays a role in the industry’s expansion. In recent years, hundreds of millions of złotys have been invested by window and door producers thanks to the subsidies.

PMR expects the aluminum door and window segment to grow the fastest, followed by less dynamic expansion in the PVC, wood and steel segments. POiD, on its part, expects customers to look towards the premium segment, including doors, windows and fittings chosen for their high energy efficiency. The same trend could mean higher sales of exterior coverings, which are useful in extreme temperatures.

A characteristic trait of the Polish furnishings market is the dominance of local

WBJ OBSERVER • M may 2016

33

FEATURE / FURNITURE

There’s room outside Development in the domestic market translates into growth abroad. According to B+R Studio, an analytical unit specializing in the sector, furniture exports grew 7 percent in the first half of 2015 (€4.3 million) compared to the corresponding period of 2014.

The company’s analysts expect that in 2015 the value could reach €8.64 billion following a growth of 8 percent.

Germany is by far the biggest export market – with an attributed value of €3.06 billion in 2014. In the same year, Polish furniture producers sold €624 million worth of goods to the UK. B+R Studio expects sales to those three countries to grow by 5 percent and 16 percent respectively in 2015.

However, the fastest growing export markets for Polish furniture are less obvious countries. Sales to Romania grew by 24 percent in the first half of 2015 and sales to Slovakia and to the US – by 21 percent each.

Window and door exports grew by 8.2 percent y/y to PLN 5.2 billion in 2014, according to ASM – Market Research and Analysis Centre. Windows and doors made of plastic materials represented 44.1 percent of total exports, while wooden windows accounted for 31.9 percent and wooden doors – for 9.9 percent. Products made of aluminum (7.7 percent) and steel (6.4 percent) were less significant in volume. Exports have been increasing for the past few years and since 2009 Poland has recorded a trade surplus in the sector.

Products from the sector are sold largely to western economies. The biggest export market for Polish windows and doors is Germany (33 percent of exports), followed by the UK and France (20.6 percent of exports, jointly). Other major buyers are Italy, Belgium, the Czech Republic, Slovakia,

34

MAY 2016 • WBJ OBSERVER

Norway, Sweden, Denmark and Lithuania.

For both sectors, competitive prices, moderate production costs and a strong local supply of raw materials (abundant raw wood reserves, strong plastics and metallurgy industries) play a part in establishing a steady presence on foreign markets. There are also, of course, challenges.

In previous years experts have pointed out that Polish furniture exports are high in volume but not in value. According to B+R Studio, the ratio is improving. In 2015 the average value is seen growing to €268 per kg compared to €251 per kg in 2014.

Looking for recognition The outlook seems optimistic but the sector is not without challenges. Polish furniture is usually sold abroad under a foreign brand name, so Polish producers are hardly known outside their country of origin.

“Building their own brand and brand awareness abroad is a pressing challenge for Polish furniture manufacturers,” Gedvilas said.

He also pointed out that the Polish furniture industry is lagging behind international competitors in terms of design and innovation in research and development, which, if left unaddressed, may hinder export growth in the future.

According to Gedvilas, Polish producers should think of a better way to compete than through low costs and consider some way of increasing productivity. “Even though wages in Poland are relatively low, the wage growth is outpacing labor productivity growth, resulting in increasing labor costs for Polish furniture manufacturers,” he said.

POiD is convinced that awareness and recognition of the “Made in Poland” brand is growing, despite the fact that foreign markets are demanding and there is an abundance of competition. “In recent years, Polish window and door producers have invested large funds into modern factories and production lines. Now the sector can benefit from those activities,” the association’s analysts said.

In the foreseeable future, currency trends may support the industry. “The weakening of the PLN against the euro is also expected to provide a positive impulse to Polish furniture exports. The PLN exchange rate against the euro is currently the highest it has been since May 2012. As the Polish furniture industry mainly targets the needs of euro zone markets, the depreciating PLN will help furniture exports to grow,” Gedvilas said. u

Image: Shutterstock

firms, which account for 75 percent of all companies in the sector. The same is true of the window and door market, 86 percent of the biggest window producers and 78 percent of door producers are owned by Polish shareholders. Nevertheless, a number of international giants are also present in these sectors. What is worth noting is that even the foreign-owned companies usually produce their goods in Poland.

In the future, the industry may see further consolidation, especially as acquisitions are included in the plans of the biggest players, PMR analysts said. Only time will tell who will control major market shares but it seems clear that Poland will remain a major player in the sector.

FEATURE / FURNITURE

WBJ OBSERVER • may 2016

35

FEATURE / FURNITURE

C

M

Y

M

MY

Y

MY

K

36

MAY 2016 • WBJ OBSERVER

Tech Insights

IT / BODY LEASING

section partner WBJ OBSERVER • MARCH 2016

37

TECH / BIG DATA

BIG DATA IN SMALL RETAIL?

By Beata Socha

R

etailers have long bemoaned the so-called “showrooming effect” which means that their clients only come by the store to have a look around and then make all of their purchases in online stores, which offer all the same goods but cheaper.

First, they complained about the cost of maintaining stores and paying rent.

Then the industry discovered that if you efficiently combine your bricksand-mortar outlet with a slick online platform, rent and storage costs can

38

a • B WJB O J BOSBESREVrEVRE r mpary i l 2 021061 6 • W

be offset by the online sales component. So-called omnichannel retail (which includes the ever-growing “click-and-collect” concept) is the buzzword of the retail industry these days.

However, retailers kept complaining.

They claimed with utmost conviction that no matter how convenient and user-friendly online shopping gets, there is no impulse buying in e-commerce. “In a regular store you come and buy a dress, and then you couple

it up with a scarf you see and then on your way out you grab a purse and buy the whole set. You don’t have that in online stores,” you could hear at a retail conference.

But things are about to change. If you collect information on what your clients buy and what ensembles they create, you can easily create the “wow, that goes great together” effect in your web store. It’s just like high-end personal shopping services: once you get to know your client, you can play

Images: Shutterstock

WE SEEM TO BE ON THE CUSP OF A MAJOR BREAKTHROUGH THAT WILL BRING BIG DATA TO REGULAR FOLK. SO FAR, IT HAS ONLY BEEN USED BY GIANTS: THE OBAMA 2012 PRESIDENTIAL CAMPAIGN IS ONE OF THE BEST EXAMPLES OF WIDESPREAD AND HIGHLY EFFECTIVE USES OF BIG DATA. BUT WHAT ABOUT REGULAR RUN-OF-THE-MILL BUSINESSES? FOR YEARS NOW EXPERTS HAVE EMPHASIZED HOW MUCH DATA REGULAR STOREOWNERS COLLECT WITHOUT EVEN REALIZING, AND HOW MUCH THEY COULD BENEFIT FROM ANALYZING IT. WHY AREN’T THEY DOING IT ALREADY?

TECH / BIG DATA

to his or her tastes and preferences.

With big data and analytics, you can do all that on an unlimited scale, and add even more: you can profile your clients and find similarities between them.

For example, if client A bought a Tshirt with a pair of jeans and then next week returned to buy a striped red dress, perhaps client B, who’s looking at the same T-shirt might appreciate the dress as well. Zalando is one example of how utilizing suggestions from other clients can increase sales.

“Big players are already using big data. Small entrepreneurs are at the very beginning of their journey,” said Artur Pająk, senior product manager at Huawei Polska, at a recent Big Data Congress.

Another typical use of big data – analyzing client movement around a store to manage the store’s display areas and goods placement – seems ideally suited for storeowners, big or small.

“SMEs are more flexible [than big corporations] and can act on the data more quickly,” said Michał Niemczycki, deputy CEO at FreeBee. So why are blue chips still the only ones making use of big data?

Sunk costs According to Niemczycki, despite small businesses’ flexibility, the practical implementation of big data in SMEs is virtually impossible. “Small firms lack the time, the resources, and the strategic understanding of the data.”

The costs can indeed be overwhelming for a small firm if it wants to develop its own big data solution. Software development alone costs some PLN 70,000-PLN 100,000, and you do it without really knowing what the end result will be. Then there are license costs: the Hadoop platform goes for $10,000 per Terabyte. Then servers: a Terabyte RAM 64-core processor is an expenditure of roughly PLN 100,000PLN 150,000, employing a data scientist for a year – another PLN 150,000.

“We are already hitting the half-amillion mark, and we are talking about SMEs. That’s not a small challenge for them. Not all of them can afford it,” said Dariusz Piekarski, manging director and board member at SARE. Clouds getting cheaper

Big data getting bigger No one doubts there is enough data to go around. The internet already comprises over 8 Zettabytes of data (1 Zettabyte is 1 billion GB), according to Oracle, and increases its volume by 40 percent annually. This year it will cross the 10 ZB threshold. Every second, the internet processes some 30 GB of data, which is more or less the entire size of the internet from 20 years ago. The value of all the anonymous data about internet users in the EU could come close to €1 billion in 2020, according to Boston Consulting Group.

By the end of 2018, companies will increase their data output fivefold, while the leaders of the digital transformation – by at least 500 times. Alone, companies will not be able to handle this volume of information, as per IDC projections.

Already 70 percent of big companies are using the data about their clients which is collected and processed by outside big data firms. By 2019 all large organizations will follow suit. But in the digital era, even SMEs cannot afford to ignore big data. According to CapGemini, two-thirds out of 1,000 companies polled realize they need to implement new tools for business analytics if they want to keep their competitive advantage.

Piotr Prajsnar, CEO of Cloud Technologies

Naturally, entrepreneurs will be looking for cheaper solutions that will allow them to analyze data about their clients.

The first cost cut they can implement is in infrastructure. “Uber doesn’t have its own taxis and yet it operates a lot of cars. The same goes for cloud-based big data,” Andrzej Sieradz, CEE Enterprise Architect director at Microsoft’s Poland office, commented pointedly.

Pająk also believes that the costs of such an endeavor can be effectively minimized. “You don’t need to invest in computing power – you can buy it as a service,” he said. “Cloud solutions will likely be the most popular way of using big data, because they’re cheap and flexible – you can simply unsubscribe if you no longer need it,” he added. Of course, there’s the small but important aspect of data security. Cloud solutions may be cheaper, but unless a company is 100 percent sure its data is safe, it will still prefer to keep it all in-house.

Most companies also have no idea if the data they are collecting can be used for analytics. As much as 58 percent surveyed by consultancy KPMG admitted to having difficulties determining whether the data they have collected is reliable.

“Companies are finding it harder and harder to make sense of the digital data deluge. Meanwhile, the amount of data

will only grow larger in the next few years,” said Piotr Prajsnar, CEO of Cloud Technologies.

Human factor If not the cost, then what is still getting in the way? According to Microsoft’s Sieradz, three things are necessary for big data to make a breakthrough in SMEs: cloud-based solutions that not only analyze data, but also allow to make predictions; technology allowing easy transfer and collation of different sources of data; while the third element is “understanding the data.”

The human aspect, mainly the need for highly competent engineers capable of using big data technology, has been underscored by many. After all, if you don’t ask the right questions, even with the best state-of-the-art technology, the answers will be flawed. “Servers are just a fraction of the cost. The real cost is people, particularly competent people,” said Marek Niezgódka, PhD, head of the Interdisciplinary Centre for Mathematical and Computational Modelling, University of Warsaw. “The term ‘data scientist’ is applied too broadly,” he added. There aren’t all that many who fit the bill.

Luckily, as a head of an SME, you don’t necessarily need to hire your own data

WBJ OBSERVER • APRIL 2016

39

TECH / BIG DATA

scientist to utilize the data you have collected. “The idea, the analytical element, and the most important thing about big data, can already be bought,” said Pająk.

Leap of faith But even if we had all the right experts who could ask all the right questions and make accurate models, who’s to

40

m 2 021061 6 • W a pary i l • B WJB O J BOSBESREVrEVRE r

say a typical CEO would want to act on their advice? “In most SMEs the CEO runs his company based on his experience and intuition. He is confident in the know-how he has accumulated over the years and is reluctant to make decisions based on pure data,” said Niemczycki. “We’ve experienced that first-hand. We offered our clients very specific data on which they could act:

‘Plug and play’ Apart from insufficient competences, the biggest barrier in bringing big data solutions to SMEs is, according to Piekarski, the fact that IT providers don’t offer a finished ready-to-use product, simply because they don’t have the necessary know-how of the business whose data they’re analyzing. “Instead, they want to learn by adjusting big data technology to our business, and that’s a major cost,” he explained. We still lack self-contained, off-the-shelf products that SMEs could just “plug and play.”

The PC ushered in a new era of data handling over 40 years ago, a thing that was earlier reserved only for the biggest companies, where a host of people worked on closet-sized computers. The same happened when the iPod pulled the rug out from underneath the portable music device industry. Many would argue that the biggest advantage it had over the competition was not the size and look, and not its range of capabilities, but simplicity.

“SMEs will be able to use big data once these systems become more automated: once we implement artificial intelligence and offer final conclusions instead of data points,” said Niemczycki. It seems that whoever figures out how to turn big data into “easy data,” will make a killing in the SME world. u

Images: Shutterstock

traffic data, who comes into their stores and when. Based on the data they could modify their loyalty programs, e.g. change the rewards etc.

But very few companies did it,” he explained.

It seems that without a serious shift in how the C-suite views big data, and whether they are capable of trusting it, all the efforts of the IT biz will go unrewarded. “You need to trust the data. You can’t keep thinking: ‘I know better,’” urged Sieradz.

Hope seems to lie with the youngest generation in the job market. “Millennials are the first generation that seems comfortable basing all their decisions on data and not on intuition,” explained Piotr Adamczyk, CIO of Work Service. “They no longer want to ‘slide’ on intuition,” he added.

WBJ Observer presents

DATA MANAGEMENT INDUSTRY GATHERS MOMENTUM How is the data management market in Poland different than in the West?

Research shows that 80-90 percent of medium and large companies in the US outsource IT, HR or accounting services, focusing solely on core business. This trend is also visible in the UK, Germany or France while the prevalence of outsourcing diminishes in South and Eastern Europe. This discrepancy has historical roots.

Twenty years ago, every company controlled all aspects of their business and it takes time for changes to occur.

Another distinctive feature is the fragmentation of the Polish market – no major global player is present here yet. Despite that, Poland is catching up quite rapidly. The market is growing at a double digit rate per year and – in my opinion – a visible acceleration is around the corner.

This is due to a few factors.

How does ATM plan to tap into the opportunity arising from these factors?

The consolidation process will start within a year or two and it will be won by the company that is best prepared.

I believe ATM has all the necessary assets to take “pole position” in this race. The company is a leader on the market; it has a fabulous infrastructure and an acknowledged reputation among its 2,000 customers. Until now growth has been fueled by technology, it has been a hi-tech company. Now, we want to launch the second engine – the sales and marketing arm. ATM is on course to have the most effective sales team, because we know how to improve a few critical KPIs, such as sales cycles, the number of leads generated per sales representative, etc. These indicators are standard in the more advanced businesses, in which I worked, but are quite unknown in this sector. The first results of boosting the effective-

DARIUSZ TERLECKI, CEO OF ATM – POLAND'S LEADING DATA MANAGEMENT COMPANY.

ness and professionalization of the sales department are already visible – sales measured by the value of contracts signed in the SME sector doubled in the first three months of the year.

Even now, the biggest Polish insurers, banks, telecom companies, etc. are among your customers. Why do they outsource their services rather than keeping them in-house?

The particular advantages of data management outsourcing are threefold. Firstly, nothing disturbs you and you can focus on your core business. Second is operational excellence – we hire more than 100 engineers with a cumulative six million hours of experience, more than any other company in Poland. The issues with data management that might be challenging for others are an everyday task for us. The last thing is money – outsourcing is cost-effective and brings savings.

WBJ OBSERVER • MAy 2016

BROUGHT TO YOU BY ATM

What are those factors?

First of all, there are signs of looming market consolidation due to the aforementioned fragmentation, but also because of technological novelties and a phenomenon which I call “the ROI trap.” Many companies were set up by engineers, who concentrated on developing innovative solutions, but neglected sales and marketing. In those cases, returns on capital turned out to be lower than investors’ expectations and this is a significant condition for consolidation. The second factor that accelerates market growth is the digitization of public services.

In his economic development plan, Deputy Prime Minister Mateusz Morawiecki underlined that data management is one of the pillars of innovation. The third is the development of new products. And lastly, the onset of Big Data and the Internet of Things, which requires the processing of large volumes of data.

41

COMMENTARY / IT

MARCIN GABRYSZAK PAŁUCKI TRUSIŃSKI PRAWO I PODATKI SP.J. TRAINEE ADVOCATE IT LAW SPECIALIST

AGILE-BASED CONTRACTS Agile software development is aimed at generating software, assuming that the concepts, as well as clients’ demands, are subject to continuous evolution throughout the implementation of the project.

Based on the aforementioned assumption, software is developed through groups of independent project teams. Each member of the team holds a particular responsibility. While performing the task, the team member remains independent and autonomous, and therefore is not liable to any typical project hierarchy.

Agile software development gained significant relevance back in 2001, upon the approval of the so-called Agile Manifesto. The manifesto provides a response to issues related to the implementation of IT projects carried out in line with the cascade model that, according to the authors of the Agile Manifesto, was an outdated method applied to IT projects – one that was not matched to real market conditions.

The foundation of the Agile Manifesto was based upon the following assumptions: 1) people and interactions are more important than processes and tools, 2) operating software is more important than a detailed specification, 3) cooperation with the client is more important than the negotiation of contracts, 4) response to changes is more important than the performance of the master plan.

The Agile philosophy contributed to the establishment of a wide array of methodologies related to software development. The most popular one is Scrum (known and applied long before the Agile Manifesto), yet some other (more rare) methodological solutions could be found in practice, including: Extreme Programming, Lean, Dynamic System Development Method, and Agile Project Management.

In general, software development based on Scrum methodology is designed to close a certain stage of the project within so-called iterations, ending up with tests of the code that has been developed, as well as analysis and verification of requirements and mapping of subsequent solutions.

There are a large number of benefits resulting from the application of Agile methodologies. What makes them exceptional is the fact that they feature flexibility, whilst maintaining the core objective, which is the successful implementation of a particular IT solution. Undoubtedly, Agile based methodologies work smoothly with popular manage-

42

MAY 2016 • WBJ OBSERVER

ment processes. Thus, MoP supports management of the organization portfolio, and Prince2 may be the pillar in project management.

The fact is, that in terms of legal issues, determining the contract performed on the basis of Agile might be troublesome, since one of the key elements of the manifesto is the superiority of collaboration with the client over the contract negotiation, or operating software over a detailed specification. Moreover, another drawback is that at the very start of the project we are neither aware of the final results of the assumed project, nor of its values or parameters.

Nonetheless, projects carried out using Agile methodologies should not be demonized and one should not assume that cooperation between the parties cannot be formalized securely when it comes to legal issues. A properly described operating procedure helps to define not only the timeframes, but also the estimated costs of the project. The Agile based contract ought to adequately determine the division of roles within a project, specifying certain responsibilities that may facilitate the identification of rules of interaction among particular project participants. Those participants may vary depending on the operating methodology that has been selected. To give an example, while performing a contract based on Scrum methodology it is advisable to describe tasks and responsibilities of Scrum Master, Product Owner and the Team as coherently as possible.

In addition, the fact that the project evolves in the course if its performance requires a different approach to contractual penalties.

These are procedural infringements that have to be legitimized, rather than failure to implement the goal that has been assumed at the project launch.

Due to possible setbacks in the execution of Agile projects (as with any implementation project), it is worth setting out the least severe provisions of the Exit Plan stipulated within the contract, combined with the mutually acceptable settlement for the works that have been performed so far.

The fact is that the contract has to be customized and prepared on an individual basis, as the final results are hard to predict. However, in spite of widespread opinions, a suitable agreement can be drawn up. Yet, it is necessary to become familiar with the objectives of the Agile Manifesto, and therefore considerably increase the probability of completing the implementation project successfully. Additionally, an ultimately efficient cooperation between a legal practitioner, a business, and IT representatives is highly necessary. u

May 2016

20 pages of real estate content

section partner

LOKALE IMMOBILIA / NEWS

>LOKALE IMMOBILIA

NEWS l OFFICE

Total Warsaw office stock to hit 5 million sqm in 2016

I

l INVESTMENTS

l LOGISTICS

REIT Griffin & Echo and Redefine to increase gross asset value by €1 bln

Goodman expands Kraków Airport Logistics Centre

Griffin Real Estate assumes that a REIT fund, created by Echo Investment and Redefine Properties, will increase its gross asset value under management by more than €1 billion within 3-4 years.

“Currently, the REIT’s gross asset value amounts to €1.35 billion. We are considering new investments, which we will finance through capital growth,” announced co-managing partner & co-CEO, Maciej Dyjas, at a conference.

Dyjas also informed about the REIT’s intention to enter the stock exchange over the next two years. “More likely, it will be on international markets, i.e.

Luxembourg or London, and a dual listing in South Africa,” the co-CEO added.

Earlier in March, Redefine Properties, Griffin Real Estate and Echo Investment signed a Polish commercial property deal, estimated at €1.2 billion, creating the first ever REIT with property located in Poland. It was the largest real estate investment transaction in Poland’s history and the largest ever single transaction of income generating real estate assets in Central and Eastern Europe. u

44

may 2016 • WBJ OBSERVER

Industrial developer Goodman Group has commenced speculative construction of a 12,000 sqm warehouse at Goodman Kraków Airport Logistics Centre, the largest logistics investment in the Małopolska region. The facility will be handed over at the end of the second quarter of 2016.

Kraków Airport Logistics Centre is one of Goodman’s largest logistics centers in Poland, with target space of 150,000 sqm.

Construction of the first warehouse began in 2010, and a total of five facilities with aggregate space of over 80,000 sqm have since been built.

The Kraków Airport Logistics Centre is located in Modliniczka near Kraków, just four kilometers from KrakówBalice International Airport and in close proximity to the A4 expressway, linking Kraków and Wrocław.

The center is owned by the Goodman European Partnership (GEP) and managed by the Goodman Group. u

Images: JLL, Green Property Group

WARSAW SPIRE

n Q1 2016, 142,200 sqm of office space was leased in Warsaw and 113,000 sqm of space, in the form of six new office buildings, was delivered to market, according to consultancy JLL. The company expects total Warsaw office stock to exceed 5 million sqm in H2 2016.

“2016 will be a very interesting year on the office market in Warsaw. It will be the first year in the market’s history when two office skyscrapers, both above 150 meters in height – Warsaw Spire and Q22 – will be delivered. Furthermore, total modern office stock in Warsaw will exceed the 5 million sqm mark in H2 2016,” said Mateusz Polkowski, associate director, Research and Consulting at JLL. In Q1 2016, tenant demand in Warsaw stood at 142,200 sqm. Approximately 57,000 sqm of office space leased in Q1 came from new deals secured in existing buildings, and around 8,000 sqm from expansions.

In Q1, the Warsaw office market grew – in the form of six new office developments – by 113,00 sqm. By the end of Q1 2015, total modern office space in Warsaw was 4,751,000 sqm while a further 662,000 sqm is under construction. u

LOKALE IMMOBILIA / NEWS

l OFFICE

Green Property Group to build skyscraper next to Arkadia mall Polish real estate firm Green Property Group plans the construction of a 120-meter office tower (called B4) in Warsaw, located at ul. Okopowa, ul.

Młocińska and ul. Burakowska, the company informed.

The 32-storey building, featuring about 28,000 sqm of GLA, will be situated opposite the Arkadia shopping center, with all forms of communication easily accessible, including a Metro station.

“B4 Design & Office will be the first high rise building with a mixed-use/retail function on the northern edge of Warsaw’s CBD. The project will be located at the border the districts of Żoliborz, Wola and Warsaw’s city center,” the developer stated. u

B4 DESIGN & OFFICE

WBJ OBSERVER • may 2016

45

LOKALE IMMOBILIA / NEWS

l OFFICE

Meyer Bergman to construct office building in Poland London-based Meyer Bergman is planning to build another office project – dubbed Grand Central – next to Galeria Katowicka, the company informed.

The building will consist of ten storeys with a total area of 23,850 sqm. The facility will include office space (19,300 sqm) and a retail section (4,500 sqm). Parking will be provided for 225 cars.

The designer of the project is Warsaw’s SUD Architekci. The construction process is expected to last 15 months.

In November 2015, Meyer Bergman took over Galeria Katowicka, a shopping center that it built with Neinver and Poland’s state-run railway company, PKP in Katowice.

Galeria Katowicka features 53,000 sqm and hosts over 250 stores. u

GRAND CENTRAL office complex

l OFFICE

Skanska to build 130-meter skyscraper in Warsaw

S

46

l R E TA I L

l OFFICE

Union Investment acquires Ferio Konin

Archicom seals biggest deal in its history

Rockspring Property Investment Managers LLP has sold Ferio Konin shopping center (Wielkopolskie Voivodship) to Union Investment.

The shopping center has 74 units on over 38,585 sqm of retail space and 1,040 parking places. It is fully leased with an international tenant mix providing the full retail spectrum, anchored by fashion (H&M, C&A), supermarket (Intermarché), DIY (Castorama), electronics (Media Markt) and sports (Sports Direct).

Real estate developer Archicom has acquired 24,000 sqm of land in the Krzyki district of Wrocław for more than PLN 33 million.

The company intends to build an office or mixed-use development.

Until now, Archicom’s portfolio included offices with a total area of 14,000 sqm.

Currently, the developer is focused on residential estates, including post-industrial refurbishments and premium sector projects.

Archicom is a Polish property developer that has been listed on the WSE since March 2016.

In 2015, the company sold 611 apartments. u

may 2016 • WBJ OBSERVER

Rockspring Property Investment Managers LLP is a professional investment fund manager, specializing in the acquisition and management of commercial property throughout the UK and continental Europe.

Union Investment is an international investment manager for real estate with assets under management of €27.8 billion in 20 real estate funds, which currently comprises two institutional funds and 15 special funds with a total value of €6.1 billion. u

Images: Skanska Property, Meyer Bergman

kanska Property Poland is going to launch the construction of its new office investment in Warsaw, the company informed.

The project is divided into three stages. As a result, a 130-meter tower with a total area of 70,000 sqm will appear in the Wola district of Warsaw.

Currently, the developer is carrying out the demolition of a parking lot on the future site of the scheme.

Skanska is a leading international project development and construction company which operates in all construction segments on the Polish market. In 2015, the consolidated sales of Skanska Group in Poland reached PLN 5.5 billion. u

LOKALE IMMOBILIA / NEWS

Poland A.M. gives you the biggest Polish stories of the day.

Have the most valuable news delivered to your inbox each weekday morning.

S i g n u p f o r a 2 - w e e k f re e - t r i a l ! w w w. p o l a n d a m . p l

• G e r m a n v e r s i o n : w w w. p o le n a m m o rg e n . p l WBJ OBSERVER • may 2016

47

LOKALE IMMOBILIA / OFFICE

Mix and match What good can come of moving a start-up right next door to a large corporation? Can a good tenant-mix in an office scheme generate synergies that benefit both small firms and big businesses, as well as the landlord?

E B Y B E ATA S O C H A

48

MAY 2016 • WBJ OBSERVER

very landlord knows that a good tenant-mix in an office building includes a major core tenant, preferably a stable multinational corporation, and a number of income-generating smaller firms. The core tenant usually gets highly preferential rates, because once it’s secured, it will become a magnet attracting other companies to follow suit. What if you added a few tech start-ups to the mix?

The first and main question is: how do you, as the developer or property manager, go about managing the tenant mix in a tenant-driven market? “You need space?

Great, which floor are you interested in?” seems to be how the business is run these days. There’s no room for being picky when vacancies are climbing upwards of 14 percent, as they are in Warsaw.

Know thy neighbor

Risky business

“From the point of view of the landlord, leasing directly to start-ups is of course risky given that according to popular statistics, over 90 percent of start-ups fail to develop into mature, sustainable companies,” admitted Mikołaj Niemczycki, junior negotiator & startup lead in Office Department at Cushman & Wakefield. After all, landlords, especially international funds, do financial credibility checks on potential tenants looking at their ability to generate profits, which, by their very nature, startups are unable to provide.

The idea is to look at start-ups as an added value to the building, like extra event space or a nearby park. Once green certificates did the trick, but now they’re

Image: Shutterstock

Not quite so. Developers are becoming aware that companies are paying increasing attention to tenant synergies.

“Year after year, more tenants openly admit that one of the key criteria for selecting a particular building is the access to various services as well as proximity to known brands,” said Grzegorz Strutyński, commercial director and board member at HB Reavis Poland. “It’s a clear signal that despite the market being highly competitive, a careful selection of the tenant portfolio cannot be a secondary consideration,” he added.

All well and good, but even if the tenant-mix is manageable, why would you even consider leasing to start-ups that basically have no financial credibility?

Sounds like the proverbial shooting yourself in the foot, doesn’t it?

Image: Shutterstock

Images: Liebrecht & Wood, Emmerson Evaluation

LOKALE IMMOBILIA / OFFICE

old news. Over the past two-three years, Europe has seen an explosion of corporations from various sectors, including IT/ telecoms, banking, beverages and real estate that have set up “corporate incubators” offering early-stage investment, shared working space, mentorship and access to clients for start-ups developing software and hardware solutions within their industries.

“I think that in time big corporations will be attracted to places with a strong start-up presence. Once developers and property managers see how strong a pull that is, they will become more lenient towards start-ups as prospective tenants,” Niemczycki said.

“The worlds of corporations and start-

ups are no longer separate – corporations need start-ups to develop innovative products and services quickly enough in order to stay ahead of the game. Meanwhile, start-ups need corporations in order to gain access to new customers and scale their businesses – the benefits are mutual,” he explained.

The term “tech-friendly buildings,” proposed by Cushman & Wakefield, describes office schemes that lease a part of their space at highly preferential commercial terms to tech start-ups in order to bolster synergies between established businesses and fledgling micro-firms. It involves putting the financial means, know-how and business acumen, together with the tech skills and enthusiasm of a start-up, into a

comfortably furnished Petri dish to see what will grow.

Price-sensitive

Here’s another “but:” even if we can agree that the presence of tech start-ups improves the way firms view an office buildings as a potential location, there are a number of practical problems. Mixing start-ups and corporations in one building could be tricky as their price expectations vary greatly. “When we did a price sensitivity study among start-ups in Warsaw, we discovered that PLN 800 per person per month was the ceiling and they wouldn’t go beyond that. That’s how start-ups look at office space: not in terms of sqm, but per employee,” explained Niemczycki.

WBJ OBSERVER • MAY 2016

49

LOKALE IMMOBILIA / OFFICE

Grzegorz Strutyński,

HB Reavis Poland

A primary concern

Y

ear after year, more tenants openly admit that one of the key criteria for selecting a particular building is access to various services, as well as proximity to known brands. For us, as a developer, it’s a clear signal that despite the market being highly competitive, a careful selection of the tenant portfolio cannot be a secondary consideration.

We’ve noticed that the most successful projects are those with an interesting and varied, but also non-coincidental and somehow coherent tenant-mix. While marketing firms will appreciate media groups in the neighborhood, I cannot imagine a situation where two direct competitors are located in the same building, like for example, KPMG and EY. It’s all about striking the perfect balance.

In HB Reavis’s buildings we see various forms of cooperation between tenants and each of them is proof that our leasing strategy is effective, and that our buildings offer not only high-class office space, but also an optimal environment for cooperation and growth.

50

MAY 2016 • WBJ OBSERVER

This translates into headline rents of some €13-€14 per sqm per month, a price range that can be found for example in Warsaw’s Mokotów district. “I feel that, despite its renowned challenges with traffic, financially Mokotów has the potential to attract start-ups. Companies are leaving Mokotów, and the more of them leave, the more these prices are going to drop. In some office buildings they could go as low as €8-10 effective,” he said. Then, there are a number of class-B buildings that are even 30-40 percent vacant. “The office market today is promising for start-ups.”

Other problems include: the required deposit, the financial credibility of the company, lease length, or even space requirements. In many buildings the minimum amount of space is 100-150 sqm. A start-up doesn’t need that much. Developers will definitely have to rethink their leasing policies if they decide to go “techfriendly.”

Collective disruption

Still, putting start-ups in modern office schemes is not an entirely new idea in the Polish market. Business Link, a network of business accelerators in Poland has been on the market for five years now and is present in 10 locations, including Zebra Tower and the National Stadium in Warsaw. The company emphasizes the co-working nature of its offices: the events and business mixers organized by Business Link are open to all the tenants in the building.

But it’s one thing to lease space to a

Art Norblin will deliver 64,000 sqm of usable area, featuring service, retail, cultural and class-A office space

LOKALE IMMOBILIA / OFFICE

Olivia Business Centre in Gdańsk provides 73,000 sqm of class-A office space

business accelerator taking over the risk and management costs of leasing to startups, and completely different if the developer or property manager goes its own way. Yet, the first-movers are already making their mark in the Polish market.

Olivia Business Centre in Gdańsk is one of the best examples of “tech-friendly” office space in the Polish market. The developer has created the O4, a vibrant coworking center located on the first three floors of the Olivia Four building. In 2013, the developer launched the Olivia Synergy Project with the goal of integrating all of the tenants in the complex. The project includes a wide range of activities and events, such as an inter-company sports league, an onside Campus program and cultural events that involve the wider local community.

Others are following suit. Adgar Poland is preparing a co-working center in Adgar Park West, a renovated and repositioned office complex in Warsaw (previously it housed the HQ of T-Mobile). It is due to open in June of this year. The center will offer approximately 1,500 sqm of co-working and private office space, and it might be expanded over time. It is earmarked for three types of groups: software firms that have already acquired financing and a customer base, freelancers, and corporations (innovative divisions of large companies, individuals hired to seek collaborative areas with start-ups). “It has a very good chance of becoming the second ‘techfriendly’ building in Poland after Olivia Business Center,” said Niemczycki.

Images: Capital Park, Olivia Business Centre

Tech-appeal

But typical, modern office space is not the only potential environment that could work well for “co-creation.” There are also other types of commercial space that could be used to serve as a co-working platform for start-ups. “It could be space on the retail floor of a mixed-use building where conference rooms double as pop up stores or tech demo zones where start-ups could demonstrate their ideas on a regular

basis,” mused Niemczycki, and explained that the latter idea was inspired by coworking center Bespoke in San Francisco’s Westfield Mall.

He also thinks that post-industrial refurbished projects are a good fit for creating co-working space, as young start-ups are drawn to this type of space. Devel-

oper Capital Park, scheduled to launch construction on its Art Norblin project (involving the revitalization of a former factory complex) in Warsaw’s Wola district agrees: “We see good examples of co-working space in the West. Some companies have grown in such spaces from start-ups to international corporations.

Mikołaj Niemczycki,

Cushman & Wakefield

A safer option

W

hat advantages does leasing directly to start-ups have over leasing to a business accelerator/incubator? After all, an accelerator such as Business Link does all the screening and takes all the risk of working with fledgling businesses.

Some corporate initiatives like Cushman & Wakefield’s strategic partnership with PI Labs, Europe’s first property technology accelerator company, or Santander’s fintech VC fund have popped up in prominent co-working centers such as the likes of Second Home in London. Attracting such corporate incubators to a landlord’s co-working center can strengthen its profile, and is obviously less risky financially.

Those landlords that are more risk-averse can still tap into the start-up world by leasing space to operators such as Business Link, but they should be more involved in discussions with such operators about how to engage other tenants in the building.

Otherwise the added value of the co-working center will be limited or inaccessible to other tenants in the building. Co-working centers, whether leased directly by the landlord’s team, or leased to an operator that then subleases the space, are a powerful tool that can be used by landlords to strengthen the leasing process of their buildings.

WBJ OBSERVER • MAY 2016

51

LOKALE IMMOBILIA / OFFICE

Naturally, we need to be very flexible as our tenants may grow rather rapidly and their space requirements could grow substantially very quickly,” said Marcin Juszczyk, board member of Capital Park. “We want to stimulate cooperation between our tenants and create a business ecosystem of companies complimenting one another,” he added.

Drawing from experience

Some of the most successful examples of the co-working environment in the world are in fact located in post-industrial space, like Second Home in London, where start-ups, fast-growing creative companies and venturing corporations take up a total of 2,000 sqm. The founder of Second Home, Rohan Silva, former tech advisor to David Cameron, handpicked all the start-ups, looking for companies that would work well with each other. Second Home is already extending the scheme to cover two additional floors.

If more Polish developers decide to move in the “tech-friendly” direction, they will be able to draw experience from a number of working and successful models.

The largest facility in the world dedicated to housing startups is CIC – Cambridge Innovation Center. Sitting next door to

Adgar Park West consists of three inter-linked buildings offering almost 43,000 sqm of office space

52

MAY 2016 • WBJ OBSERVER

the Massachusetts Institute of Technology in Boston since the late 1990s, CIC expanded to other US cities including St. Louis and Miami with great success. CIC has recently began international expansion. “They’ve set up their first European outpost in Rotterdam and they are now eying Warsaw,” added Niemczycki.

The real estate services company focuses on taking up space in phases, even up to 100,000 sqm, in order to allow startups to grow within the building. You begin with several start-ups and allow them to grow within the building. As the start-ups gain traction and grow beyond a certain level, it’s time to install another batch of micro firms that could learn from their neighbors. One of the most notable success stories that grew out of CIC’s Boston office is Google’s Android. Once it reached a level of 175 employees, no longer able to fit in the CIC building, the team relocated a block away, in order to stay close to the “community of entrepreneurs” that CIC had built.

Mental barriers

Still, while developers may be getting around to the idea of mixing start-ups with corporations to help them integrate and work together, there are still mental barriers that prevent synergies from emerging.

First and foremost, Poles are a highly distrustful nation, especially when it comes to doing business together. A Savills study conducted two years ago revealed that only 35 percent of office workers in

Warsaw saw value in networking with companies from the same industry. “Probably even fewer saw meeting people from other sectors as valuable, which is the way forward in the West,” Niemczycki said.

Grading tech-friendliness

The similarity of the term “tech-friendly” to “eco-friendly” is by no means a coincidence. The green trend has revolutionized the commercial real estate business, and the office segment in particular, over the past decade. A number of institutions awarding green certificates have emerged since then. A similar evaluation system could well be used to decide how conducive to co-creation a building is.

According to Niemczycki, grading the “tech-friendliness” of a building would involve a number of measurements: space devoted to start-ups, methods of integrating tenants in the building, such as the number, size and frequency of business mixers, workshops, speeches and other business and social events, as well as the way they are communicated. “The quality of the integration can be measured by the number of tenants in the building that regularly stop by the physical space, or the number of business partnerships that are formed between corporates and start-ups working in the building.”

Just as a green certificate is considered a must today, housing a vibrant tech startup community might become tomorrow’s standard bargaining chip for office schemes. Who knows? Office schemes with the most appealing tenant mix will be like hot downtown nightclubs that everybody is lining up to get into, and only a lucky few can. u

LOKALE IMMOBILIA / INTERVIEW

BUILDING A COMMUNITY I N T E R V I E W B Y B E ATA S O C H A

WBJ OBSERVER SITS DOWN WITH HADLEY DEAN, CEO OF COMPASS OFFICES EMEA, TO TALK ABOUT SYNERGIES EMERGING BETWEEN COMPANIES OF DIFFERENT SIZES AND FROM DIFFERENT INDUSTRIES, AND HOW LANDLORDS CAN SUPPORT THEM WBJ Observer: Who are your tenants?

Hadley Dean: They’re 50 percent international and 50 percent local. We’ve got a Swiss bank, a real estate asset management firm, an FX business, a recruitment agency, a consultancy, a few start-ups and freelancers, and more are coming. People who work here know each other by name.

You can’t build a community when you’ve got 1,000 people. It needs to be a relatively small, personal environment.

Images: Compass Offices, Adgar

How long are typical leases?

Our average corporate members will be here 11 months. In a center like this you typically have bigger tenants at first, and then, as locations stabilize, they become a bit smaller. And then you can really play with building a community.

Is there any benefit to building a community?

Absolutely, because everyone helps each other. For example, we have a boutique M&A broker. They were selling a fizzy drink company. The particulars were done in English and they’re not native English speakers. I wasn’t here, so they went to another English speaker to get help reading through the deal. We heard about it and we decided to give them a meeting room for a day. We actively encourage our members to help each other. Another example: the boyfriend of one of our members is the biggest premium tea importer, so we buy all our tea from him. It’s amazing. We try to look out for one another.

What about younger firms and startups? How can they benefit from it?

Our center provides workspace solutions that are adaptable to business’ needs and

growth. For young companies, we offer a like-minded community that can give access to mentorship, in addition to educational workshops, which we hold regularly.

Apart from workshops, what other events do you organize to integrate your community?

We arrange wine tastings and tea tastings, we organize concerts, yoga days, healthy days, and cooking sessions. Thanks to these events you get to know people in other industries. All industries have the same problems; they’re just solved in different ways.

Once people feel comfortable enough with each other, they start sharing and exchanging advice, ideas, they help solve each other’s problems.

You’ve recently moved your first tenant, or member, into your new office in the Plac Unii scheme. How is the commercialization going with your new location?

We’ve already got 35 percent of the space filled.

Why do companies choose Compass Offices rather than lease their own space?

Businesses need to be agile if we want to be a knowledge and innovation-based economy. We work with various enterprises from start-ups to multinational companies. We understand that the current conventional workspace and working style might not always be suitable for their business plan. u

WBJ OBSERVER • MAY 2016

53

LOKALE IMMOBILIA / RESIDENTIAL

B Y B E ATA S O C H A

A port in a storm

THE RESIDENTIAL MARKET CONTINUES TO ATTRACT MONEY, BUT INDIVIDUAL INVESTORS ARE NO LONGER THE ONLY BUYERS. INSTITUTIONAL INVESTORS ARE JOINING IN. APARTMENTS ARE STILL HOT, BUT APARTHOTELS AND OTHER ASSET CLASSES ARE INCREASINGLY IN DEMAND 54

MAY 2016 • WBJ OBSERVER

Poles have taken a liking to investing their financial surpluses in residential real estate. The continually low interest rates and stock market volatility make the property market seem like a safe haven for an increasing number of individual investors.

In response to the growing demand, the number of different investment options is also getting bigger: apartments, both popular and luxury, niche residenc-

Images: Hoża 42, Sun & Snow

HOŻA 42 OFFERS 12 APARTMENTS AND FOUR PENTHOUSES IN A REFURBISHED TENEMENT HOUSE IN WARSAW’S CENTER

E

LOKALE IMMOBILIA / RESIDENTIAL

es like tenement houses, or aparthotels in tourist resorts and big cities.

By far the largest segment is apartments. They are the most easily accessible investment form, the sector is very liquid due to its sheer size and also often seen as the safest. After all, the “apartment deficit in Poland, also compared to Western economies, is still quite substantial, estimated at some 1 million apartments,” said Sławomir Horbaczewski, an economist and real estate analyst.

“A well selected apartment can yield as much as 4-7 percent, so an increasing number of people look to the residential market as an interesting alternative to low-interest bank deposits and an uncertain and limping stock exchange,” added Horbaczewski.

Investors, particularly those who were involved in the market during the 2007-2009 devaluation, are also looking more favorably at the upscale and luxury apartments segment, as it is subject to less volatility.

Old meets new

An interesting niche in the residential sector that is gaining on attractiveness is refurbished tenements in city centers.

There are only a handful of players with sufficient know-how to tackle the complex ownership structure, not to mention the sometimes demanding collaboration with the curator for historic buildings.

Hoża 42 is the latest such project in the heart of the capital, featuring 12 apartments ranging from 65 sqm to 200 sqm and four penthouses from 80 sqm to 350 sqm.

“The market for apartments in old refurbished tenements is growing rapidly. They offer both spacious large-scale apartments, as well as smaller, 2-3 room dwellings. All share the same advantage: excellent location in the city center, with easy access to its infrastructure, as well as unique and meticulously restored interiors,” said Horbaczewski. He admitted, however, that the market mainly attracts investors with substantial funds to invest, as the tenements are often in poor condition and require quite a lot of work to regain their original glamor.

stable source of income, it is short-term rental that yields the highest returns.

Thus, aparthotels (or condohotels) are best suited for those who are looking for stable returns, as well as a way to bring variety to their residential portfolio.

“The biggest plus that draws investors to this type of investment is the stable and guaranteed yield, exceeding the profit they can make from long-term rental of an apartment, and even several times higher than the interest on bank deposits,” said Małgorzata Czeboćko from Emmerson. Aparthotels also require zero or very little involvement from the investor as far as day-to-day management of the property is concerned. “The lease agreement is signed for several years, up to a dozen or so, depending on the business model,” she explained.

The aparthotel market has been developing both in large cities and in small

“A WELL SELECTED APARTMENT CAN YIELD AS MUCH AS 4-7 PERCENT, SO AN INCREASING NUMBER OF PEOPLE LOOK TO THE RESIDENTIAL MARKET AS AN INTERESTING ALTERNATIVE TO LOW-INTEREST BANK DEPOSITS AND AN UNCERTAIN AND LIMPING STOCK EXCHANGE.

tourist resorts. The former have been quite successful in most major Polish cities, including Warsaw, Kraków, Poznań, the Tri-City, and Wrocław. Only recently, J.W. Construction launched another aparthotel investment in the capital called Jerozolimskie Invest, west of the city center, adding to its current offer of Wola Invest.

J.W. Construction offers its buyers in Wola Invest or Jerozolimskie Invest a guaranteed annual profit of 5 and 7 percent respectively. “In Wola Invest, the client also receives 50 percent of the total profits, which means that with a 70 percent occupancy, the yield increases to over 10 percent annually,” explained Małgorzata Ostrowska, board member and sales director at J.W. Construction Holding.

The developer has also added fivestar hotel services to its project, “which means that the guests will have access to a concierge, 24-hour two-storey lobby, room service, laundry services and a restaurant. Moreover, the owner will have unlimited access to use his or her apartment. Few other projects offer such incentives,” said Ostrowska.

Short-term means more

Then there’s a new and growing asset class that has been gaining popularity over the past few years. While long-term apartment rental can be a secure and

SUN & SNOW HAS LAUNCHED SALES OF ITS SZKLARSKA PERŁA APARTHOTEL PROJECT IN SZKLARSKA PORĘBA

WBJ OBSERVER • may 2016

55

LOKALE IMMOBILIA / RESIDENTIAL

Stay or no-stay?

Undoubtedly, aparthotels in tourist resorts have an added bonus: the owner can use the apartment for the purposes of his or her own vacation. Developers in the tourist segment have been churning out projects over the past few years, both in the most renowned and established tourist destinations, such as Zakopane and the Tri-City (which due to its dual character as a commercial and tourist destination can offer the highest yields), and in smaller and less recognized locations.

Szklarska Poręba, a ski resort in the Karkonosze mountains, is a particularly rapidly growing market. Developer Sun & Snow has recently launched another aparthotel project in the area dubbed Szklaska Perła, scheduled to be completed by the 2016/2017 winter season.

“We offer investors income and a lease agreement for 10 years. We have already closed the first few deals,” said Dariusz Wilk, director at Sun & Snow Real Estate.

Szklarska Poręba has been attracting increasingly wealthier tourists over the past years. Another developer, Szrenica Resort & Spa is currently building the Blue Mountain Resort (scheduled to be completed in 2017), which will feature 248 apartments finished to a four-star hotel standard. The developer offers a 10-year lease deal, with an option to extend for another five years. “The investor has a choice between two investment options: either 8 percent annual yield without the option to stay at the resort, or a 7 percent yield with a two-week stay each year,” explained Czeboćko.

No longer just small-scale

56

MAY 2016 • WBJ OBSERVER

AS MUCH AS 73 PERCENT OF PROPERTY PROFESSIONALS STATED THAT RESIDENTIAL AND STUDENT ACCOMMODATION ARE NOW MAINSTREAM INVESTMENT SECTORS. Maximilian Mendel, partner at REAS. Mendel believes that in a few years, given the cyclical nature of the residential market, demand from individual investors may dwindle, at least temporarily. “Thus, more developers will be

willing to look for alternative customers.

And institutional investors seem the logical answer capable of offsetting the decreased demand by individual home buyers and small-scale investors,” said Mendel. u

Image: Hoża 42

The attractiveness of the residential market is not lost on institutional investors. As much as 73 percent of property professionals stated that “residential and student accommodation are now mainstream investment sectors,” according to PwC’s Emerging Trends Europe 2016 survey. “Many investors who have so far been investing in commercial property are also changing focus. Poland has been on the radar of large-scale investors for quite a while. Yet, so far there have been no meaningful and sizable assets available on the housing market to invest in. But the first investments show that where there is a will, there is a way,” said

B U I L D YO U R F I N A N C I A L F U T U R E

A PA R T M E N T S W I T H A PROFIT GUARANTEE

WOLA INVEST

T H E C I R C L E O F T H E A PA R T H O T E L S Y S T E M P R O P E R TIES’ PURCHASERS IS GROWING THANKS TO THEIR D E S I R E T O I N V E S T T H E I R S A V I N G S I N R E A L E S TAT E , CONSIDERED BY POLES TO BE ONE OF THE SAFEST F O R M S O F C A P I TA L I N V E S T M E N T. B A N K I N T E R E S T R AT E S C O N T I N U E T O B E L O W , T H E R E F O R E S A V ING DEPOSITS DO NOT BRING EXPECTED RETURNS. MOREOVER, INVESTING ON THE STOCK MARKET INV O LV E S R I S K S , H E N C E P U R C H A S I N G P R O P E R T I E S F O R R E N T I S A N AT U R A L C H O I C E .

An increasing number of people purchase apartments with a profit guarantee in the aparthotel system, thus investing their assets. A purchase of an apartment by a company is an excellent solution for entrepreneurs. The opportunity to deduct 23% VAT generates initial savings amounting to thousands of zlotys. Such a property can be managed by an operator, who ensures profits.

Attractive Price. High Profit Apartments with a profit guarantee are offered by one of the largest Polish developers, J.W. Construction Holding S.A. The prices start from 7,000 + VAT/m2. The company, being both the investor and the operator of the Wola Invest and Jerozolimskie Invest aparthotel networks, guarantees an annual profit of 5% and 7% respectively, while bearing the property management costs.

Unlimited Stay A purchase of an aparthotel flat is a chance of a net profit, but also an opportunity to spend your free time in it without additional costs. The investment offer is directed mainly to those who want to invest their money in premium properties, which they can use whenever they like. The apartments are owned by private persons, not by the managing company. This means that the owners can use them freely.

Five-Star Class Apartments Apartments with a profit guarantee offered

by J.W. Construction Holding S.A. are comfortable, prestigious and attractively

located. Wola Invest – at the crossing of ul.

Kasprzaka and Aleja Prymasa Tysiąclecia, and Jerozolimskie Invest at 216 Aleje Jerozolimskie. The offer includes air-conditioned, high-standard apartments consisting of a living room connected with a kitchen, bathroom, bedroom and a balcony. The developer’s aparthotels will have two-story high lobbies decorated with the use of premium-class materials: exquisite types of stone, wood and metal. Elegant decorative elements will bestow a sophisticated style on the common areas of the buildings. The interiors, nearly 3-metre high, will be full of daylight thanks to large windows.

Apartments with a profit guarantee will receive the five-star hotel service, including the 24h reception desk, concierge, room-service or office and shopping spaces, as well as an underground parking space. The tenants will have access to a spacious restaurant, a selfservice laundry facility and a fitness club.

The Positive Prospects of Investing in Real Estate In the longer perspective, the real estate market can be a safe source of income for investors. To a large extent, their profits depend on their choice of a developer. If they deal with a strong entity, they do not need to worry about their investment.

Only until the end of this year our clients have the opportunity to purchase apartments at attractive prices – apartments that satisfy their expectations, for their own use, or as an investment.

More info about the investment: www.wolainvest.pl, www.jerozolimskieinvest.pl

JEROZOLIMSKIE INVEST

MORE INFO ABOUT THE INVESTMENT:

W W W . W O L A I N V E S T. P L W W W . J E R O Z O L I M S K I E I N V E S T. P L

LOKALE IMMOBILIA / INTERVIEW

The retail market still has growth potential WBJ Observer talks to Andrzej Jarosz, marketing and communications director at Mayland Real Estate, about the current situation and trends in, as well as prospects for, the retail property market in Poland I N T E R V I E W B Y A D A M Z D R O D OW S K I WBJ Observer: The retail property market in Poland has been described as more and more competitive and increasingly difficult for developers. Does it mean the market has already become saturated?

Andrzej Jarosz: The market in Poland is already mature, which means that we have already achieved European saturation level – we are above average and are now quickly coming close to the levels seen in the most affluent countries of Western Europe. The market is competitive; however, it still has growth potential and is attracting investor interest.

In recent years, after a period of increased interest in smaller cities in Poland, developers have again mostly been active in the largest urban centers across the country. Is this trend going to continue in the near future?

Developer activity is related to the subsequent phases of the development of the market. At the beginning, investment flow was directed to the largest and wealthiest urban centers, and then it gradually moved towards smaller cities. As they say, “first come, first served.” However, the markets in smaller cities quickly become saturated as they usually only offer room for one dominant project and sometimes for one more complementary scheme. At the moment, there are still small cities in Poland that, right now, are getting their first shopping center, whereas medium-sized cities, with populations of around 100,000 and more, are saturated, and thus less attractive.

58

MAY 2016 • WBJ OBSERVER

Of course, the largest agglomerations will always be very interesting, but because of the competition in those places, one needs to look for attractive locations and solutions, and this is not so easy.

There is already at least one so-called dominant shopping center in almost every large city in Poland. Is there room for new schemes of this kind in the country and if so, then where?

In the largest agglomerations the market is divided between several centers. Of course, there is often one flagship facility which features the best tenants and generates much better results than its direct competition. However, in comparison with smaller cities, where the dominant center may have a 50 percent share of the local market, and practically prevent the efficient growth of any potential competitors, the situation in larger cities is much more fluid.

The Riviera shopping center in Gdynia is a good example – it upset the status quo in the Tri-City – it created an alternative to Galeria Bałtycka and is competing for the position of regional leader. It is worth pointing out that the Forum Radunia development, which is currently under construction, will also likely find a place for itself in the market and will make competition in Tri-City even more severe.

The growing purchasing power in large agglomerations and large-scale urban planning projects, including the revitalization of centrally located areas and other attractive post-industrial neighborhoods,

plus the intensive suburbanization and the transportation revolution brought about by new infrastructural investments, are all creating new retail development opportunities. In developing cities the retail market undoubtedly still has growth potential.

Image: Mayland Real Estate

LOKALE IMMOBILIA / INTERVIEW

When it comes to the size of projects, the architectural solutions employed, the arrangement of the space, and the socalled tenant mix, have the designs of new shopping center schemes changed in any significant way in recent years?

We have not witnessed any kind of revolution, but shopping centers need to change in order to meet the expectations of tenants and buyers. One can name a number of trends.

First, the strengthening of city centers – practically all the best shopping malls are located in the downtowns of cities.

There are centers which are located on the outskirts of cities, but they are playing a complementary role and are designed in a much more extensive way, focusing on tenants who take up large amounts of space and whose growth is not really impressive.

Such shopping centers do not create any new significant value.

The growing significance of the leisure component – shopping centers are increasingly becoming multi-purpose spaces where retail is the leading, but not the only function. Visitors do not only come to shopping centers to shop. Hence the growing role of eating out, entertainment, culture and other forms of spending time in the offer of shopping centers, plus the growing requirements regarding the arrangement of the common areas and the integration of malls with the surrounding space.

Then there is the growth of large retailers, such as Inditex and LPP, which manage many brands, as well as large multi-brand stores, such as Van Graaf and Peek & Cloppenburg. The largest retailers build the strength of shopping centers and take up more and more space in them – often multi-floor stores or many stores dedicated to their various brands. More and more, the space and the offer of a shopping center is arranged in a way resembling the modern version of a department store.

A food court is a must – what is new is the introduction of regular restaurants and many dedicated food courts into shopping centers. Eating out is currently a fastgrowing market and new ways of arranging restaurant space are opening up new concepts to shopping centers.

Will the redevelopment, extension and re-positioning of existing facilities continue to be some of the main priorities of developer activity in the retail property market in Poland in the coming months?

Because of the maturity of the market and the limited opportunities with regard to the development of new projects in attractive locations, and due to planning restrictions and the shortage of available sites, investment in existing facilities is becoming more and more important for the market. Investor strategies are the most significant for the growth of this market segment. The modernization of an operating facility involves risk, large costs and often, a painful short-term decrease in rent revenues. Property owners are often not prepared to take such action and it is only the entry of a strong institutional investor, who has a long-term value growth strategy, which makes radical change possible. The continued demand for investments in retail property and the pressure exerted by new facilities creates such opportunities.

How can existing, older generation shopping centers compete with new projects? What does the re-positioning of such malls and the extension of their life cycles actually entail?

Old shopping centers have a number of advantages that new malls often do not have. First and foremost is location. More than ten years ago, there were more available sites and planning regulations were not as restrictive. What is more, since the old malls opened for business, the potential of the neighborhoods they are located in has changed radically due to the delivery of other commercial and residential investments. The fact that the existing malls have, over the years, been able to attract a group of loyal buyers is also of major importance.

When redeveloping an older facility, one can take advantage of all those assets, at the same time adding new value that the new shopping center concept involves. The most important thing in the whole process is the assessment of untapped potential, which offsets the potential losses resulting from the demolition or redevelopment of the existing buildings.

Large shopping centers continue to dominate in the total volume of existing retail space in Poland. What about other retail formats – which of them will develop in the near future?

Large shopping centers will likely remain the dominant format in the future.

However, we can see a trend of moving away from projects that comprise more than 100,000 sqm of GLA, since such schemes are difficult to commercialize and

sell. Besides, visitors expect retail space to be easy to access and use, and this can hardly be guaranteed in projects of this scale. Of course, other formats, including convenience and outlet centers, continue to develop. However, because of the fact that they usually comprise less than 20,000 sqm of GLA, despite their large number, in total they generate lower levels of GLA than the less numerous large shopping centers.

How is the growth of e-commerce influencing the retail property market in Poland?

It is hard to talk about a direct and clear influence of e-commerce on the retail property market. Online sales, especially when it comes to the sectors that dominate in shopping centers, are still way behind traditional sales. Online stores are not developing as fast as omnichannel concepts.

E-commerce is not killing traditional retail – one can rather see the need for the development of the efficient use of both forms of distribution. The main assets of e-commerce are easy access to a rich offer; the possibility to find and compare products; easy access to the full information on a given product; and the tailoring of the offer to the needs of the client. These assets can now also be taken advantage of in traditional retail, mainly due to the popularity of smartphones which provide clients with access to all the above-mentioned functionalities. There is no risk that buyers will stop using retail space, but their habits are changing radically, and the traditionally conservative retail property sector needs to adapt accordingly.

When is Mayland going to launch construction on its planned retail projects in Warsaw? Is the company currently planning any new retail investments in the regional cities in Poland?

Mayland is currently focused on the development of Centrum Serenada in Kraków, which is going to open for business next year. At the same time, we are working on new projects in Warsaw and in other large cities, based on the land bank that we already have. We are also working on brand new locations.

These are both greenfield projects, and schemes involving the revitalization of existing centers. This autumn, during the upcoming industry fair, we will present some new interesting opportunities to our partners. u

WBJ OBSERVER • may 2016

59

LOKALE IMMOBILIA / LAND

60

ad_wbj.indd 1

may 2016 • WBJ OBSERVER

2016-04-20 11:16:31

:16:31

MM M OO BB II LL II AA // LL AA NN DD LL OO KK AA LL EE II M

State and land

B Y B E ATA S O C H A

Image: Shutterstock

THE GOVERNMENT NOW HAS THE RIGHT TO STEP INTO ALMOST ANY SIGNIFICANT TRANSACTION INVOLVING THE SALE OF LAND. COULD THE NEW LAW MEAN A COUNTRY-WIDE RE-NATIONALIZATION? HOW WILL IT IMPACT THE REAL ESTATE MARKET?

S

ince May 1, 2016, a new law on land sale has been in place, according to which almost any sale of agricultural land will be closely monitored by the Agricultural Property Agency (ANR).

The Agency will be allowed to step in and exercise its preemption rights if it chooses to do so. The only sales of land exceeding 0.3 hectares without ANR supervision will be between two farmers living in the same or neighboring municipalities.

Proving you’re a farmer will not be easy, either. Not only will a farmer need to have the appropriate education, he or she will have to have lived and worked in the same place for five years. “Many of the lifelong farmers in Poland will not meet the criteria,” commented Emil Domeracki, senior associate, and land acquisition senior specialist at Colliers International.

Poking holes

Recently, law experts have pointed out some loopholes in the law that will in fact

allow investors to bypass the Agricultural Property Agency. The new law’s goal “is to limit land purchases by foreigners, by people speculating on its prices, and entities that would like to use the land for purposes other than agriculture,” said Anna Woźniakowska-Dębiec, attorney at Gardocki i Partnerzy law firm. The law gives the ANR preemption rights in deals involving shares of companies that own agricultural land and span across all types of deals, including unilateral legal acts (such as donations), and successions.

The legislators, however, failed to proof the law against creative-thinking lawyers.

The law “gives the Agency preemption rights only in cases of transactions involving the shares of companies that own agricultural property. It doesn’t cover shares of companies that are shareholders in companies that own agricultural properties,” Woźniakowska-Dębiec explained.

Those who managed to create such an “envelope” by the end of April, will now be able to trade their properties freely, with-

WBJ OBSERVER • may 2016

61

LLOOKKAALLEE IIM MM MOOBBIILLIIAA // LLAANNDD

out the pesky preemption rights from the ANR. That is, until parliament decides to plug the hole.

Back to state

There remains an unanswered question, and a particularly valid one given the fact that Poland’s ruling party has always been big on “the national interest,” whether the new law, besides making the lives of developers and farmers difficult, will lead to a perceptible country-wide nationalization of land.

It seems plausible. Firstly, the Agricultural Property Agency will be able to preempt most large land sales, buying off farmland across the country. Secondly, given the strict criteria for people qualified to buy farmland, the pool of potential buyers may simply dry up. “It may turn out that a farmer will choose to sell his land to the ANR if he cannot find any buyers eligible to buy his property,” said Piotr Woźniak, associate, legal counsel, at EY. Determined buyers who fail to meet the criteria will be able to apply for a special individual permit. “If the president of the ANR grants such a permit, the person will be allowed to buy the land. But if he declines, the ANR will be obliged to buy this land. This means that a person determined to sell land will succeed, even though sometimes at a lower price, but this chain of events may lead to something we could call ‘nationalization,’” Woźniak explained.

One could also ponder the implications of putting the go/no-go decision in the hands of a single official, regardless of anyone’s best intentions. “If the decisionmaking criteria are open and based on subjective assessment, we could see situations that will not be conducive to making such decisions. The person making such decisions will be carefully watched, and may therefore become excessively cautious,” Woźniak added.

Developers have long been preparing for the new law and have created considerable land reserves for the coming years, according to Domeracki. “Earlier, warehouse developers would buy land only if they had a potential client,” he said and added that, “speculative purchases of land plots for warehouse developments reached abstract high levels in 2015, particularly towards the end of the year.”

62

may 2016 • WBJ OBSERVER

Image: Shutterstock

Planning ahead

LOKALE IMMOBILIA / LAND

Land purchases in the residential segment have also been climbing, on the back of record apartment sales in 2015 (over 2,100 units sold). For the past few years, the market has been additionally fueled by the government subsidy program (called MdM). “Even expanding the MdM program to cover the second-hand market did not spoil developers’ results,” commented Domeracki. According to his forecasts, 2016 will see even more purchases of plots zoned for residential development.

He expects that the limitations on land sales may also lead to an increase in prices for such land. “Developers are increasingly open to buying even difficult plots, like postindustrial areas – plots they had previously rejected.”

In Warsaw, there is also very little land remaining for residential development within the city, and prices are steep. However, appetite for land is even greater. “Last year we advised on the sale of the confectionery factory ‘Mieszko’ in Warsaw’s Praga district. The land had no zoning plan, no individual planning permit [the so-called ‘W-Z’ in Polish] and development would

involve costly demolition. Still, the deal was closed within two months and paid in cash,” Domeracki said.

The scarcity of zoned development land will be most acutely felt in Silesia. “In the Silesia agglomeration, most of the investment land is classified as arable land. That will have a great impact on the residential market,” he added.

Urban control

The shortage of zoned land in cities will be felt by all market players. “In the long run, zoned lands will become much rarer and more valuable, and their prices will probably rise. In about two years, the depleted supply of such properties will be felt by end buyers as there will be fewer inexpensive units located farther away from city centers,” said Kazimierz Kirejczyk, managing partner at residential real estate consultancy REAS. According to Kirejczyk, the law will have adverse effects on small developers, which are active on the outskirts of cities, and usually invest in greenfield development. On the other hand, it will strengthen the position of market leaders,

who can afford to buy zoned parcels in the city.

The law could also prove to be highly lucrative for local authorities. “If, on top of that, the law on municipal government were changed, municipalities would be able to buy agricultural land without any restraints or competition from developers – hence at lower prices than at the moment.

Municipalities could then adopt zoning regulations, re-parcel plots and sell them to developers in public tenders,” Kirejczyk said. On the plus side, that could make construction of roads and other public projects easier and cheaper, as well as preventing urban sprawl. Provided that municipalities don’t get greedy. “Drawing on the example of Warsaw, we can point to many agricultural land plots located in municipalities neighboring big cities, where local authorities adopted plans with multifamily housing zoning,” Kirejczyk concluded.

There is no doubt that the new law on agricultural land means a shift in power between municipalities and developers.

However, it remains unclear how it will play out and who will come out on top. u

WBJ OBSERVER • may 2016

63

OBSERVER RANKING

OBSERVER TOP 10

Technology parks

1POMERANIAN SCIENCE 3 GDAŃSK SCIENCE AND AND TECHNOLOGY PARK

RANKED BY ROOFED SPACE

TECHNOLOGY PARK

GDYNIA

ROOFED SPACE (SQM):

26,384

ROOFED SPACE (SQM):

73,000

Total area (ha): 6.1 Investment area (ha): WND Green areas (ha): 0.5 Total number of business entities: 210 Total employment: 1,300 Year founded: 2001 Managing entity: Pomeranian Science and Technology Address: Al. Zwycięstwa 96/98, 81-451 Gdynia ppnt.pl

2 WROCŁAW

TECHNOLOGY PARK

ROOFED SPACE (SQM):

69,782.55

Total area (ha): 18.1 Investment area (ha): 9.2 Green areas (ha): WND Total number of business entities: 230 Total employment: WND Year founded: 1998 Managing entity: Wrocław Technology Park

Total area (ha): 4 Investment area (ha): WND Green areas (ha): WND Total number of business entities: 82 Total employment: 2,850 Year founded: 2006 Managing entity: Pomeranian Special Economic Zone Address: ul. Trzy Lipy 3, 80-172 Gdańsk gpnt.pl

4 KIELCE TECHNOLOGY PARK ROOFED SPACE (SQM):

25,019.84

Total area (ha): 10.5 Investment area (ha): 4.6 Green areas (ha): 5.6 Total number of business entities: 94 Total employment: 42 Year founded: 2008 Managing entity: Kielce Technology Park Address: ul. Olszewskiego 6, 25-663 Kielce technopark.kielce.pl

Address: ul. Muchoborska 18, 54-424 Wrocław technologpark.pl

Notes: WND = Would Not Disclose. Research for the list was conducted in January 2016. Data provided by Polish Business and Innovation Centers Assocation in Poland.

64

may 2016 • WBJ OBSERVER

5 LIFE SCIENCE PARK ROOFED SPACE (SQM):

21,211

Total area (ha): 1.8 Investment area (ha): WND Green areas (ha): WND Total number of business entities: 31 Total employment: 400 Year founded: 2006 Managing entity: Jagiellonian Center of Innovation Address: ul. Bobrzyńskiego 14, 30-348 Kraków jci.pl

6 POZNAŃ SCIENCE AND TECHNOLOGY PARK ADAM MICKIEWICZ UNIVERSITY FOUNDATION

ROOFED SPACE (SQM):

OBSERVER RANKING

8 BIAŁYSTOK SCIENCE AND TECHNOLOGY PARK

ROOFED SPACE (SQM):

12,789

Total area (ha): 35.9 Investment area (ha): 23.1 Green areas (ha): WND Total number of business entities: 51 Total employment: 19 Year founded: 2011 Managing entity: Białystok Science and Technology Park – The City of Białystok Budget Department Address: ul.Żurawia 71, 15-540 Białystok bpnt.bialystok.pl

9CZĘSTOCHOWA

INDUSTRIAL AND TECHNOLOGY PARK

ROOFED SPACE (SQM):

17,378

12,568.58

Address: ul. Rubież 46, 61-612 Poznań ppnt.poznan.pl

Address: ul. Wały Dwernickiego 117/121, 42-200 Częstochowa arr.czestochowa.pl

Total area (ha): 5.3 Investment area (ha): WND Green areas (ha): 1.9 Total number of business entities: 124 Total employment: 132 Year founded: 1995 Managing entity: Adam Mickiewicz University Foundation in Poznań

25

Total area (ha): 2.1 Investment area (ha): WND Green areas (ha): WND Total number of business entities: 58 Total employment: 268 Year founded: 2007 Managing entity: Regional Development Agency in Częstochowa

THE OLSZTYN SCIENCE 7PŁOCK INDUSTRIAL AND 10 AND TECHNOLOGY PARK TECHNOLOGICAL PARK

ROOFED SPACE (SQM):

14,500

11,332

Address: ul. Łukasiewicza 39, 09-400 Płock pppt.pl

Address: ul. Władysława Trylińskiego 2, 10-683 Olsztyn opnt.olsztyn.pl

Total area (ha): 120 Investment area (ha): 100 Green areas (ha): 15 Total number of business entities: 30 Total employment: 462 Year founded: 2004 Managing entity: Płock Industrial and Technological Park Image: Shutterstock

ROOFED SPACE (SQM):

Total area (ha): 17.2 Investment area (ha): 0.0 Green areas (ha): 14.8 Total number of business entities: 60 Total employment: 430 Year founded: 2013 Managing entity: Olsztyn City Hall

WBJ OBSERVER • may 2016

65

EEVVEENNTTSS // CCEEEEQQAA

A NIGHT OF BIG WINS

GRIFFIN CONTINUES ITS RISE TO FAME, SKANSKA SCOOPS UP FOUR ACCOLADES, WHILE THE LIST OF MULTIPLE CEEQA WINNERS GOES ON

W

(L-R) Robert Miełżyński, Miełżyński Wine Spirits Specialties; David F. Dixon, Solera Holdings; Richard Hallward, CEEQA

arsaw-based investor and developer Griffin Real Estate has defended last year’s title as the Company of the Year in real estate at the thirteenth edition of the CEEQA Awards. Unsurprisingly, Griffin, which purchased 41.55 percent of the shares in developer Echo Investment last year (a transaction valued at €1.2 billion), also received the Investor of the Year 2016 statuette – quite an achievement for a company that has only recently joined the big leagues (in 2015 it was recognized as the Rising Star of the Year).

Another big winner at the 2016 CEEQA Gala was developer Skanska, which continues to set an example as the greenest company in real estate, having received the Green Leadership Award four out of five times over the past five years (since the RealGreen awards were added to the CEEQA mix). The Swedish firm was also the most honored company this year, winning four trophies all together, including RealGreen Developer, Developer of the Year, and RealGreen Building of the Year (for Corso Court in Prague).

Doubling up Apart from Griffin, four more firms took home two accolades each. Firstly, Arcadis was presented with the Development Service Provider award (for the sixth time in a row!) and RealGreen Service Provider of the Year (three wins over the past five years), while JLL won two Agent of the Year statuettes: in the Office and Capital Markets categories. The consultancy firm is the only company that has won a CEEQA award every year for the past thirteen years since CEEQA’s inception.

Meanwhile, Penta Investments lifted two prizes for its remarkable Aviatica office scheme (the Office Development of the

66

m a y 2 0 11 66 •• W B J O B S E R VV EE R R

E V E N T S / MEAV DE EN TI N S /P O C LE AE N QD A

Year, and the Building of the Year CEE), and New Europe Property Investments (NEPI) picked up the Building of the Year SEE award for their Mega Mall Bucharest, as well as the Rising Star accolade.

On a roll While some firms take the industry by storm, like Griffin or NEPI (a company whose property portfolio value shot up from €314 million in 2010 to €1.8 billion in 2015), others have long enjoyed a dominant position in their market segment.

Colliers International has defended its top position as the Agent of the Year in the Industrial category for five years running, while Helaba has also enjoyed a three-year streak since 2014 as the Lender of the Year.

Meanwhile, Panattoni and Dentons have won four times over the past five years in their respective categories as the Industrial Developer of the Year, and Legal & Financial Consulting Firm.

Images: CEEQA

Revelations One of the highlights of the night was the crowning of Ian Worboys, CEO of P3 Logistic Parks, as the 2016 CEEQA Industry Professional of the Year. Having built the regional company into a leading marketing logistics developer to rival the international powerhouses active in the region, he has shown impressive leadership in the past year as his company has firmly established itself as a top three player in the segment.

One of the surprises of the evening, which shows how much the New Europe region has matured over the past decade, was the

(L-R) Artur Zawolski, MKZ Partnerzy; Morten Lindholm, Valkea; Tomasz Opiela, Valkea; Anna Muszyńska, BNP Paribas Real Estate

(L-R) Jan Dębski, Unibail Radamco; Magdalena Kowalewska, Immofinanz Polska; Marcin Klammer, Arcadis

(L-R) Paweł Olechowski, IDC Polska; Beata Socha, WBJ Observer; Morten Lindholm, Valkea; Katarzyna Kosicka-Polak, MKZ Partnerzy; Artur Zawolski, MKZ Partnerzy

W WB B JJ O OB B SS EE R R VV E R •• m M aA yY 2 0 1 6

67

EVENTS / CEEQA

Griffin Real Estate won Investor of the Year

fact that none of the building awards went to the region’s biggest market – Poland.

The winning countries this year were: the Czech Republic, Romania, Ukraine (for the Forum Lviv retail scheme) and Croatia (for Sheraton Dubrovnik Riviera Hotel).

The list of companies awarded also included: Strabag (Construction Company of the Year); CBRE (Property Management Company of the Year); Cushman & Wakefield (Agent of the Year – Retail & Leisure) and Hines (RealGreen Investor of the Year).

Awarding excellence The awards are the sector’s most respected industry accolades, organized each year in association with the Financial Times to reward excellence and showcase the

Bonnie Tyler

achievements and opportunities of the New Europe real estate sector to the international investment arena. Real estate firms across all segments are judged by a jury of senior industry representatives from market leading companies across Central and Eastern Europe and Southeast Europe, with the voting closely supervised by globally trusted consultants Deloitte.

The Grand, Building, Company and Agent awards were handed out at the annual CEEQA Gala held in April, while the RealGreen awards were announced back in March at the CEEQA@Mipim reception in Cannes.

A blast The 2016 CEEQA Gala was held at the Soho Factory in Warsaw and was attended

(L-R) Charles Taylor; James Chapman; Soren Rodian Olsen; Anthony Selman (all Cushman & Wakefield); Morten Lindholm, Valkea

by over 750 sector leaders from more than 50 countries. The Gala is renowned for combining pathos with joyfulness, serious business with the best entertainment.

At this year’s event, the Gala guests paid tribute to the life and achievements of Jan Kulczyk, Poland’s most successful businessman of the modern era, who passed away in 2015, with one minute of applause.

They also raised a total of €22,000 for a local children’s charity Fundacja Dziecieca Fantazja.

After the main ceremony, the guests were treated to a memorable live concert by music legend Bonnie Tyler. The event was hosted, for the eighth time, by celebrated Polish broadcaster Monika Zamachowska and CEEQA founder and managing director Richard Hallward. u

(L-R) Jerzy Kamecki, Valkea; Bartłomiej Bujnowski, CREAM

Brian Jenkins (Multi Corporation Poland) accepted the Hotel, Leisure & Residential Development of the Year on behalf of Starwood (Sheraton Dubrovnik)

68

m a y 2 0 11 66 •• W B J O B S E R VV EE R R

Industry Professional of the Year: Ian Worboys, P3 Logistic Parks

IT / BODY LEASING

Filled with news and views covering food, drink, culture and local interest: Poland’s No. 1 English-language city magazine WWW.WARSAWINSIDER.PL WWW.FACEBOOK.COM/WARSAWINSIDER WBJ OBSERVER • MARCH 2016

35

E FU U JJ II T TS SU U W OR RL LD D T OU UR R 2 01 1 66 EV VE EN NT TS S // F WO TO 20

Fujitsu World Tour 2016 On April 12, 2016, Warsaw was one of some 20 worldwide locations hosting the Fujitsu World Tour 2016 conference. This year’s edition, held in the Muranów Conference Center, gathered a record number of guests. Close to 800 people, including Fujitsu business partners and end users – representatives of companies and institutions from different market segments – attended presentations showing how Human Centric Innovations shape our everyday life.

The afternoon panels were filled with presentations by speakers from Fujitsu and cooperating companies, including Microsoft and NetApp. The topics included; hybrid IT infrastructure; digital solutions and innovations for business. An interesting example was the lecture on a biometric authentication system invented and marketed by the company – Fujitsu PalmSecure – which uses one’s unique palm pattern for identification. The company claims it is the most accurate and trustworthy digital, biometric system on the market.

The whole conference was accompanied by a comprehensive exhibition of Fujitsu devices and solutions, which were presented over two floors of the Muranów Conference Center. All the attendees had the opportunity to become acquainted with the whole product portfolio and see the aforementioned biometric solutions, such as a PalmSecure sensor equipped ATM, solutions for the retail sales sector, devices for modern data centers and other human centric innovations.

An artistic performance – a concert by Waglewski, Fish, and Emade – was the relaxing wrap-up of the conference, after a day filled with interesting information and presentations.

70 70

may 2016 • WBJ OBSERVER

Images: Fujitsu

Łukasz Świątek, Fujitsu marketing director for Eastern Europe, Russia and Africa, greeted all participants and opened the conference, remarking that Fujitsu has just celebrated its 80th anniversary. Marcin Olszewski, the president of Fujitsu Poland and managing director at Fujitsu Eastern Europe, presented the company’s long-term strategy during the first session. The following speaker – Joseph Reger, Fujitsu CTO EMEIA, explained the main idea of the Fujitsu World Tour series - Human Centric Innovation in Action.

He explained how Fujitsu understands digital transformation of enterprises, and the value of the digital ecosystem serving the hyper-connected world, with growing amounts of data for businesses and society. He also expanded upon how data capturing, processing and storage possibilities evolve thanks to the combination of the Internet of Things and cloud technology with the use of special software. Paweł Bochniarz, president at MIT Enterprise Forum of Poland, and Michał Dżoga, corporate & government affairs director, Intel, held a presentation on operations of Polish start-ups as representatives of enterprises supporting the development of new initiatives on the technology market.

EVENTS / XXXXXXXXXXXX

www.eecpoland.eu

WBJ OBSERVER • FEBRUARY 2016

71

EEVVEENNTTSS // GE AULRAO P B EO AO N K C OO F NLGI R SE TSS OF LOCAL GOVERNMENTS

Local Government Today – People, Cooperation, Innovation “Europe must be rebuilt from scratch, but not starting from the roof – i.e. EU institutions, but from the bottom – i.e. local communities,” said Emil Boc, the former Prime Minister of Romania, and now the mayor of Cluj-Napoca, during the Opening Plenary Session of the 2nd European Congress of Local Governments. The event was held at the ICE Congress Centre in Kraków on April 5-6.

Participants of the session agreed with the fact that local governments should have more autonomy, including financial. Elżbieta Koterba, the Deputy Mayor of Kraków, emphasized that the city is where participatory democracy is effective and where participation from citizens in the decision-making process is still increasing. According to Koterba, “the future of local governments depends on the creativity of the residents – they know best how they want to live.” Another debate – “Financing education and reforms in education” aroused great interest.

“The key to the modernization of education in Poland is in improving vocational education for teachers, who play the most important role in the education of young people,” said Anna Zalewska, the Minister of Education. In her view, the role of government is to provide appropriate equipment for schools and allocate funds from educational grants for the development of nurseries, kindergartens and schools.

The first day of the 2nd European Congress of Local Governments closed with the gala entitled “Leaders of Local Government 2015,” when the best representatives of local governments were given special recognition. In the competition “Leader of the Local Government,” organized by Rzeczpospolita daily, the following leaders were recognized: Tomasz Stolarczyk – Mayor of Rząśnia in Łódź Province, Igor Bandrowicz – Mayor of the town and municipality of Prusice, Lower Silesia Province, and Paweł Adamowicz – Mayor of the City of Gdańsk.

72 72

m y i 2l 0 21 06 1 •6 W a pa r • BWJB O J BOSBESREVrEVRE r

Images: Institute for Eastern Studies

The 2nd European Congress of Local Governments brought together over 1,500 guests including representatives of local governments, public administration, governments and parliaments, non-governmental organizations, and business from across Europe who attended over 80 panel discussions, workshops and presentations.

EVENTS / XXXXXXXXXXXX COMMENTARY / LEGAL

TO ADVERTISE: TOMASZ PAWLAK, TPAWLAK@WBJ.PL, +48 501 W B791 J O 461 BSERVER 78

APRIL 2015 • WBJ OBSERVER

• FEBRUARY 2016

WBJ OBSERVER • JUNE 2014

73

17

EVENTS / EUROPOWER ENERGY CONFERENCE

XXIII EuroPOWER Energy Conference

The

XXIII edition of the EuroPOWER Energy Conference was held on April 13-14, 2016, at the Westin Warsaw Hotel. Many distinguished guests were present at the event including; CEOs and members of management boards of key energy companies; representatives of government administration, including market regulators; representatives from the world of science; and members of chambers of commerce.

The event’s Guests of Honor were Deputy Minister Andrzej Piotrowski and Deputy Minister Michał Kurtyka from the Ministry of Energy. The two-day conference attracted over 500 participants.

The conference started with a discussion on energy and the Polish economy focusing on the new directions of its development. Panelists also raised issues of innovation, new technologies, and business challenges they are currently facing. A large part of the meeting was devoted to the EU energy union and energy security, problems with building a competitive market, the energy sector in Poland in the light of single European electricity and gas markets.

Among the panelists, who were outstanding representatives from the industry, were: Maciej Bando – President of the Energy Regulatory Office; Dariusz Kaśków – President of the Management Board, Energa; Jarosław Broda – Vice president of the Management Board for Strategy and Development, TAURON Polska Energia; Krzysztof Skóra – President of the Management Board, KGHM Polska Miedź; Eryk Kłossowski – President of the Management Board, PSE Polskie Sieci Elektroenergetyczne; Beata Stelmach – CEO in Poland and the Baltics, General Electric; Wojciech Dąbrowski – President of the Management Board, PGNiG Termika.

Images: MMC Polska

The culmination of the first day of the conference was the Grand Gala of Energy Leaders, during which the acclaimed awards in the industry for achievements made in 2015 were presented. As part of the entertainment during the gala, nominees and other attendees were treated to a performance by the celebrated jazz musician Stanisław Sojka. During the event, a charity auction for the Children's Fantasy Foundation was also held.

74

may 2016 • WBJ OBSERVER

EVENTS / XXXXXXXXXXXX

WBJ OBSERVER • MAY 2016

75

GADGETS TECHNOLOGY TO MAKE YOUR LIFE EASIER

>>

WE LIVE IN AN AGE OF GADGETS: some are useful, but most are just a waste of time and money.

We sift through the latest available tech to pick those that we believe will help you live your life more comfortably and confidently.

Avegant

>>

iPhone SE

The device looks a bit like Geordi La Forge’s visor from Star Trek. Don’t be fooled by its appearance. It is not a virtual reality headset. It is a headphonescreen combo which lets you watch movies or play games up close and personal. It connects to a device through an HDMI output and lets you stream the visuals directly into your eyes. Compared to similar devices it doesn’t have any screens, instead it projects light off 2 million micro mirrors, similar to DLP (digital light processing) technology.

With Apple releasing new iPhone each year, many were surprised that a few months ago the company announced a scaled-down version of the device dubbed SE (Standard Edition). It’s basically a 5S model with the latest software and some tech updates. Compared to the latest 6S iPhones, it is smaller in size and cheaper, which makes it a good fit for someone looking to buy their first iPhone who only wants to spend a small fortune instead of a large one. For those that want an Apple phone with all the latest tech should wait till fall, when the iPhone 7 will be released.

Price: starting at PLN 2,150

Apple.com Cortland.pl

Price: $699

Opal icemaker

Perfect for upcoming heatwaves. This Opal icemaker can make up to 10 kilograms of ice daily (it produces just less than half a kilogram per hour).

Just fill the water tank and let the machine do the rest. It makes small icy nuggets, instead of solid cubes, which according to the producers, chill drinks faster, absorb the flavor of your beverage and have a chewable texture.

You don’t have to worry about it melting as it recycles melted water into fresh nuggets.

Price: $449

Nuggetice.com

76

may 2016 • WBJ OBSERVER

>>

Images: Apple, Avegant, Opal, Nexbit, Intel, Nebia

Avegant.com

Nebia

Would you spend $400 on a showerhead?

Nebia inventors hope so, as they’ve designed a shower using technology developed for jet engines. It atomizes water and turns it into a mist, which means that you can reach a larger area, using 70 percent less water than a typical shower. The producers estimate that the shower should pay for itself in two years, thanks to the massive water conservation.

Price: $399

Nebia.com

>> Intel device

When you travel, carrying a laptop with you can take up valuable luggage space. That’s when the PC on a stick might come in handy. The Intel device is a fully operational Windows 10 computer that you plug into a TV through the HDMI input. It comes with 2GB of RAM, 32GB of storage space and an Atom CPU. While the specs are not that impressive it is completely capable of running popular apps (Netflix, Spotify, Office etc.) and even streaming Xbox games. As long as you don’t run too many programs at the same time you shouldn’t even notice that you’re working on a glorified pendrive. The downside is that you’ll still need a keyboard and a mouse to operate it.

Price: starting at PLN 399

Intel.com

>> Nextbit Robin

The Nextbit Robin looks like any other ordinary smart phone. It has average specs (Qualcomm Snapdragon 808 processor and 3GB of RAM) and a modest design. But its uniqueness comes from the fact that it features cloud-based storage. Whenever the user runs out of space for apps and data, it connects to the cloud (100GB of storage is provided free of charge) and transfers apps (starting with the ones not used frequently) and data (it removes full-sized photos replacing them with smaller copies). If you want to restore an item, just click on the greyed-out icon and wait a few seconds (depending on your internet connection).

Price: $399

Nextbit.com

>>

WBJ OBSERVER • MAY 2016

77

LLIIFFEESSTTYYLLEE // FFEESSTTIIVVAALLSS

IN THE OPEN AIR The festival season is nearly upon us. Soon, Poland, along with the rest of the continent, will be invaded by a travelling circus of musicians who will travel from festival to festival across the land.

Each year, when you study various line-ups, it’s easy to spot two or three acts booked almost everywhere. This year, it looks like most bookings have gone to Rammstein, Iron Maiden and Black Sabbath, and all of these bands will play in Poland as well (although only the first will perform in a festival setting). Festivals have their pros and cons, but they’re always fun to attend and this season will have plenty of options for fans of different genres

90’ FESTIVAL

78

OFF-FESTIVAL

If you’re not a rock fan and you’re over 30 years old, this is the event for you. The euro dance genre did not really set the music world on fire in the mid-90s when it was at its height. Still, it had a nice following in a few countries, especially in Germany where most of the stars come from, including the headliner – Scooter, and other performers such as Mark Oh, and Activate. Also on the line-up is Polish dance mega star Stachursky.

A hipster heaven. Any artist outside the mainstream can be seen here, regardless of genre. That’s why during this event you will be able to see musicians from so many different worlds. Wu-Tang member GZA, grindcore legends Napalm Death, grunge pioneers Mudhoney, EDM star Machinedrum, trip-hop veterans GusGus and indie rock giants The Kills are among many artists on this year’s line-up.

August 13, Bielsko-Biała Tickets: From PLN 50

August 5-7, Katowice Tickets: PLN 270

MAY 2016

ORANGE WARSAW FESTIVAL

Having a music festival in the center of such a large city as Warsaw is a unique experience. You can get there by bus or tram, sleep in your own bed instead of a tent, even the food trucks seem familiar as they’re the same ones that park near your office during the week. The line-up is eclectic and includes Lana Del Rey, Die Antwoord, Skunk Anansie, Skrillex, and Editors among others.

June 3-4, Warsaw Tickets: From PLN 189

LIFESTYLE / FESTIVALS

OPEN’ER FESTIVAL

Often called “The Polish Coachella,” Open’er is the closest thing to a major, star-studded event, stacked with worldwide stars from different genres. This year’s headliners include Florence + Machine, Red Hot Chili Peppers, Wiz Khalifa and LCD Soundsystem.

Other performers include: At the Drive-in, Chvrches, Grimes, PJ Harvey, Foals, Sigur Ros and many others. Plus, Ferris wheels, camping, fashion shows, a silent disco and many other attractions.

June 29 - July 2, Gdynia Tickets: From PLN 239

LEGENDS OF ROCK FESTIVAL

Since 2007, this tourist resort, situated not far from the Baltic Sea, turns into a classic rock mecca for a few days. This year, the festival will be split over three weekends: July 7-8 will feature Suzi Quatro and Carlos Santana, on July 25-26, Marillion, Mike&The Mechanics and Deep Purple will perform. Finally, on August 5-6, Sisters of Mercy and Whitesnake will play. The term “festival” is not really appropriate, as there are no other bands announced, besides the aforementioned acts, so these will be simple concerts, but the performers (maybe except Marillion) do not often come to these parts of Europe, so it might be a while before they come back.

July 7-8; 25-26; August 5-6, Dolina Charlotty Tickets: PLN 90-390 (depending on the concert)

CAPITAL OF ROCK

With Wrocław being this year’s European Capital of Culture, organizing its own rock festival was a no-brainer. Although with just one day, and four bands on the bill, the term festival can be used loosely in this particular case. German industrial metal heroes Rammstein will headline, returning to Poland after a three-year hiatus. The band always puts on a striking live performance, full of pyro, costumes and hijinks, and their live music provides a great boost of energy. Also on the bill are nu-metal pioneers Limp Bizkit.

Despite not having a hit in nearly 15 years and without a new record in five, they have a treasure trove of popular tunes and a huge fan base in Poland. Completing the line-up are Welsh metalcore mainstay Bullet for My Valentine and Polish rock group OCN. August 27, Wrocław Tickets: From PLN 179

Images: Shutterstock

PRZYSTANEK WOODSTOCK

The biggest Polish festival, when it comes to attendance at least, will be held earlier than usual this year to avoid coinciding with World Youth Day. As usual, hundreds of thousands people (free entry) will listen to dozens of bands. While the majority of them are Polish, there will be some international acts as well, including The Hives, Apocalyptica, Bring Me the Horizon, Molotov, Living Colour, Inner Circle and Vintage Trouble among many others. The unique atmosphere of the event is often transferred to the stage, resulting in some explosive and one-of-a-kind performances.

The event, located in the same city as the Auschwitz Nazi death camp was organized as an affirmation of peace and life. It’s geared towards classic rock fans with Queen+Adam Lambert and Elton John as this year’s headliners. The rest of the line-up is not quite as old, with many young reggae, folk and hiphop acts filling the rest of the bill. Although to be honest, everyone in attendance will be there to see one of the headliners, not Dawid Podsiadło or Taco Hemingway.

July 14-16, Kostrzyn nad Odrą Tickets: Free entry

June 18-19, Oświęcim Tickets: From PLN 118

LIFE FESTIVAL

WBJ OBSERVER • MAY 2016

79

12

may 2016 • WBJ OBSERVER

BRANDED MEDIA

Rynek Branded Media

MEDIA BRANDS

Custom Publishing Aktivist Branded Content Gaga Social Media Warsaw Business Journal Group PR & e-PR Warsaw Insider Strategia Digital Eventy Kreacja 360

Media Brands

Valkea Media S.A. ul. ElblÄ…ska 15/17, 01-747 Warszawa, tel: 22 257 75 00, www.valkea.com