WBJ #20 2011

Google’s Chromebook has failed to seduce Techeye

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Al-Qaeda leaders have considered attacks on Polish soil 4

WWW.WBJ.PL

Is KBC planning to sell off its Polish assets, Kredyt Bank and Warta?

Since 1994 . Poland’s only business weekly in English

VOLUME 17, NUMBER 20 • MAY 23-29, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

REAL ESTATE

Hooligan’s paradise

Lokale Immobilia

Poland’s culture of soccer violence has UEFA worried about safety during Euro 2012. How to handle hooliganism?

SPECIAL EDITION • Land market trends • Alterco buys Tiga • COVEC’s road woes 12-19

8-9

Standing tall Polish leaders are taking a clear, independent stand on issues like shale gas and immigration 5, 10

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

Warehouse space developers 20

In this issue News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .5-6 Listed Firms . . . . . . . . . . . . . . . . . . .7 Cover Story . . . . . . . . . . . . . . . . .8-9 Business Environment . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . .11 Lokale Immobilia . . . . . . . . . .12-19 The List . . . . . . . . . . . . . . . . . . . . . .20 Arts & Culture . . . . . . . . . . . . . . . .22

SHUTTERSTOCK

Last Word . . . . . . . . . . . . . . . . . . . .23

Waiting on Air Force One

An ill-fated debut

President Obama arrives this week to talk defense, North Africa, gas and of course, visas 3

BG˚’s IPO was a momentous failure, earning the Treasury less than a quarter of its target

A GUIDE TO POLISH EXPORT is AVAILABLE NOW! To order: Please contact us at +48 22 639 85 68 or kwilinski@valkea.com

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NEWS

www.wbj.pl

Political earners PM Donald Tusk earned more than z∏.230,000 last year, according to his just released asset declaration, and he owns two apartments (of 40 and 65 sqm). For his part, Finance Minister Jacek Rostowski declared a 2010 income of over z∏.174,000 as well as ownership of a 2003 Citroen C3 and “numerous valuable family keepsakes.” FM Rados∏aw Sikorski took home around z∏.200,000.

High campaign spending Despite regulations passed in February, which prohibit election committees from using paid-for commercials and billboards, campaign spending is still likely to be high in the run-up to this year’s parliamentary elections. Jaros∏aw Zbieranek of the Institute of Public Affairs told Rzeczpospolita that the regulations will “affect more the proportion of expenditures, not the actual sum of money spent.”

Abortions generate $95 million An estimated 150,000 illegal abortions take place annually in Poland, generating around $95 million of undeclared and tax-free revenue. That’s according to a study in the May issue of UK-based journal Reproductive Health Matters. “Once abortion left the public sphere, it entered the gray zone of private arrangements, in which a woman’s private worries became someone else’s private gain,” said Agata Che∏stowska, author of the research and a PhD student in cultural anthropology at the University of Warsaw.

Numbers in the News

The managing directorship of the IMF

z∏.22.3 billion

Dominique Strauss-Khan Even before Dominique Strauss-Kahn resigned from the International Monetary Fund (IMF) last week, following charges of sexual assault in New York, the speculation had begun. Who will succeed him?

In Poland, talk unsurprisingly centered on who would be the most appropriate Polish candidate. The name which first popped up in regards to the vacancy was National Bank of Poland (NBP) president Marek Belka. However,

Mr Belka swiftly put an end to speculation by declaring that he was not interested in the job.

Public attention subsequently focused on famed economist Leszek Balcerowicz, a former NBP president and finance minister. TVN news program “Fakty” reported that Prime Minister Donald Tusk had suggested in a conversation with the economist that the government would back his candidacy and that

According to Swiss business school IMD’s latest “World Competitiveness Yearbook,” Poland is losing ground in terms of competitiveness. The annual rating of 59 global economies pegs Poland at 34th on the list, down two from last year and now trailing Estonia, which was highest on the list among former Eastern Bloc countries. ●

Mr Balcerowicz had accepted the proposition.

But Mr Tusk announced during a press conference last Friday that, at least for now, Poland would not field its own candidate for the IMF post.

Such a move did not make much sense in the present situation, the prime minister said, because a Polish candidacy would not have a hope of success. He stressed, however, that Mr Balcerowicz was competent enough to run.

Mr Tusk stated that in the face of the current difficult economic situation, public finance crises and problems of some of the countries in Southern Europe, it is crucial that a European run the IMF. The priority, he said, is to find the European candidate that has the greatest chance of becoming the next head of the institution.

As WBJ went to press, French Finance Minister Christine Lagarde, former German central banker Axel Weber and Turkish World Bank deputy president Kemal Dervis were tipped as favorites for the job.

Since its establishment in 1945, the IMF has only been run by European managing directors.

was the wholesale value of the Polish pharmaceutical industry in 2010

80% is the possible rise in energy prices in Poland once power plants have to start buying CO2 allowances due to EU emissions limits

50% of Polish roads are in poor condition, according to Poland’s Supreme Audit Office

16% of young Poles participate in organized volunteer work. The EU27 average is 24%

Quote of the Week “Since April 10 of last year ... [the Russians have been] treating us like a punching bag” Law and Justice MP Jaros∏aw Sellin offers his view of Polish-Russian relations

Figures in focus Residential releases New home completions, 2001-2010 200,000

Adam Zdrodowski 150,000

On WBJ.pl Warsaw in the summer Poland’s capital isn’t much of a looker, according to popular opinion. It’s traditionally seen as the ugly stepsister to Kraków’s fairytale princess. Adoptive Varsovian and WBJ international news editor Alice Trudelle doesn’t share that opinion though, and she’s putting her camera where her mouth is. This summer she takes you on a tour of Warsaw’s most charming places and its best-kept secrets. Log on to WBJ.pl next week to see her first stop.

100,000

50,000

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2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: Central Statistical Office

Company index

DATELINE

May/June demic and political circles.

Location: Sheraton, Sopot www.efc2011.com

MAY 24-25 REAL VIENNA Event:

Real estate and investment fair focused on Central & Eastern Europe.

Location: Vienna www.realvienna.at

The main theme of this year’s Building Materials conference will concern honesty in the construction sector.

Location: Hotel Qubus, Krakow www.dlabudownictwa.pl

JUNE 2 CONFERENCE PRCH RETAIL HORIZONS

The third edition of the Beauty Innovations congress, dedicated to the cosmetics industry.

Location: Banking and Financial Center Nowy Swiat, Warsaw www.beautyinnovations.pl

26-27 EUROPEAN FINANCIAL CONGRESS Event:

The European Financial Congress provides a discussion platform for foremost experts and eminent representatives of business, aca-

The best meeting place for executives: investors, developers, administrators and retail chains.

Location: Hilton Warsaw Hotel & Convention Centre, Warsaw prch.org.pl

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DR IRENA ERIS LADIES’ GOLF CUP

Event:

The fourth international golf tournament of Dr Irena Eris Ladies’ Golf Cup. Location: Naterki, Poland www.drirenaerisgolf.pl/english

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ANNUAL OUTSOURCING FORUM & ABSL CONFERENCE

Event:

The Annual Outsourcing Forum & ABSL Conference will examine the position of Poland on the global map of business services.

Location: Westin Hotel, Warsaw www.roadshowpolska.pl

25-26 BEAUTY INNOVATIONS Event:

AIB Group ..................................14 Google ........................................23 Polish Telefonia Cyfrowa (PTC) ..5

Allegro ..........................................6 Gucci ..........................................18 PPMB Promont ..........................20 Alterco ........................................12 Hermanowicz Rewski Pradera ......................................13 APA Markowski ..........................14 Architekci ..................................12 Applebee ....................................14 Jartom ........................................14 ASIA ............................................14 Jastrz´bska Spó∏ka W´glowa......7

Problem......................................20 Prokom Investments..................18 ProLogis ....................................14

Bank Zachodni WBK....................7 Jones Lang LaSalle ..................15

25-27 3RD ANNUAL BUILDING MATERIALS CONFERENCE Event:

Acer ............................................23 globetrade.com ..........................21 Polbank ........................................7

AIG/Lincoln Polska ....................20 Goplana MGC Inwest ................17 Polnord ......................................18

Event:

Poland less competitive

MAY 23-29, 2011

IN THE SPOTLIGHT

COURTESY OF WIKIMEDIA COMMONS

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BG˚ ..............................................7 JW Construction ........................15 Carpathian..................................13 KBC ..............................................7 Chevron ........................................5 King Sturge ..........................14, 15 Chiara ........................................14 Kredyt ..........................................7

Qualia Development ..................16 Raiffeisen ....................................7 Rd Bud........................................14 Real Management ....................20

Clifford Chance ..........................14 Le Chic ......................................14 Robyg..........................................19 Colliers International ................15 Marathon Oil ................................5 Samsung ....................................23 ConocoPhillips ............................5 Marc Cain ..................................14 Santander Group........................14 COVEC ........................................17 Media Markt ..............................14 Schoenherr ................................14 Credo ..........................................12 Microsoft ....................................23 SEGRO Poland ..........................20 CSOB ............................................7 Miller, Canfield, W. Babicki ........9 Skanska......................................19 DAP Pawe∏ Piàtek ......................12 MLP Group ................................20 Starbucks ..................................14 Deutsche Telekom ......................5 Mobile Generation ......................6 T-Mobile ......................................5 Dolcan ........................................19 My Square ..................................14 Tesco ..........................................14 Domlex ......................................13 Nokaut..........................................6 Tiga ............................................12 Dr Irena Eris ................................2 Onet ..............................................6 Torus ..........................................20 Easy Project ..............................13 Panattoni Europe ......................20 UBM............................................12 EDF ..............................................6 Pfandbriefbank ..........................13 Vattenfall ......................................6 Empik ........................................14 PGE ..............................................7 Warsaw Stock Exchange ..........12 Enea..............................................6 Philips ..........................................8 Warta ............................................7 Entertainment Research ............6 PHN Group ................................19 Escada ........................................14 Pinault-Printemps-Redoute......18 Wolf Immobilien ........................18 Europolis Real Estate Asset

PKN Orlen ..................................10 Wood & Company Financial

Management ..............................20 Platan Group ..............................20 Services ........................................7 ExxonMobil ..................................5 Platinum Hypo ..........................14 X-Trade Brokers FSO ............................................15 Platinum Properties Group ......14 Dom Maklerski ..........................21 Globe Trade Centre (GTC)..........12 PointPark Properties ................20 Yareal Polska..............................14

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NEWS

www.wbj.pl

MAY 23-29, 2011

Polish-US relations

Poland prepares for a long-awaited visit Details of American President Barack Obama’s May 27-28 visit to Warsaw have emerged, and it has been confirmed that discussions will revolve around military and diplomatic ties, shale gas exploration and Poland’s accession to the US Visa Waiver Program.

Poland’s ambassador to the US, Robert Kupiecki, last week reviewed the agenda in a conference held at the Heritage Foundation, a Washingtonbased think tank.

The first day of Mr Obama’s visit coincides with the end of the Meeting of Presidents of Central European States, hosted by Polish President Bronis∏aw Komorowski. The American president is expected to attend the heads of states’ working dinner, where they will discuss how the lessons of the region’s economic and democratic transitions can be applied to emerging democracies in North Africa and in Belarus.

Ambassador Kupiecki assured that there would also

COURTESY OF THE WHITE HOUSE

Poland is ready to talk security, democracy, shale gas and visas with US President Barack Obama

American diplomacy: coming soon to a CEE capital near you be long and substantial bilateral meetings with the Polish president and prime minister.

Those, he said, will be filled with discussion of military cooperation, shale gas exploration and the visa question.

“The presidents will take stock of our joint cooperation in NATO, our joint participation in Afghanistan, and announce

progress in a program for bilateral military cooperation, including increased rotational presence of US forces on Polish soil,” said Mr Kupiecki.

President Obama is expected to confirm the stationing of American troops serving an undetermined number of F-16 jets and C-130 Hercules planes on a rotational basis.

According to Jan Techau, director of Carnegie Europe, a think tank, this expected rotational assignment should be viewed within the regular NATO air defense system, but it comes at an interesting time.

“It is clearly aimed at improving relations with Poland, which have been strained over missile defense. It is symbolic, but it is a

gesture of goodwill nevertheless,” he said.

In fact the whole visit, planned around the G8 meeting in Deauville, France, should be viewed as a way for President Obama to reaffirm American engagement and solidarity with Central and Eastern Europe, argued Mr Techau.

Many Poles, including in the

business community, hope that this benevolent spirit will extend to a swift inclusion of Poland in the US visa-waiver program.

“Poland is the only Schengen country not in the American visa waiver program, and I would like to remind you that President Obama declared in December 2010 that by the end of his presidency he would like to solve this issue. I believe that five months after this declaration, Polish authorities can legitimately ask what the progress on this issue is,” stated Mr Kupiecki.

According to Mr Techau, the American president hopes that this visit will also translate into crucial votes from the US Catholic community in the 2012 presidential election.

Polish authorities, it seems, are keenly aware of this. “President Obama’s visit is a long awaited one, not only in Poland but by other countries in the Central European region, and also by almost 10 million Americans living in the US,” said Ambassador Kupiecki.

It remains to be seen if this will translate into concrete gains.

Alice Trudelle

Terrorism

Al-Qaeda eyed Poland According to Wikileaks documents, the terrorist organization weighed an attack on US interests in Poland While Poland has never been the subject of an al-Qaeda attack, the terrorist group has definitely explored the possibility.

A US Department of Defense profile of Guantanamo Bay detainee Abu alLibi, obtained and published by whistle-blower site Wikileaks,

reveals that al-Libi and Khalid Habib, a top al-Qaeda leader reportedly killed in 2008, discussed possible attacks against US interests in Poland. The meeting took place in Bajaur, Pakistan, in 2005.

Dated September 10, 2008, the profile of al-Libi is addressed to the head of the United States Southern Command in Miami. It does not offer further information regarding the nature of the proposed attacks or particular targets in Poland, but describes its subject as someone who “had long-term associations with

Osama bin Laden and [alQaeda’s second-in-command] Ayman al-Zawahiri.”

A startling bit of information revealed in the profile is the claim, made by another detainee, that al-Libi had knowledge of a nuclear bomb located somewhere in Europe.

The source apparently believed that the organization would move to detonate the bomb if Osama bin Laden were to be killed.

Abu al-Libi is thought to have been born in Tripoli, Libya, in 1970. His American captors believed him to have

been involved in planning and executing operations in the US and elsewhere, “including an alleged 2003 assassination attempt against President Musharraf of Pakistan.” He is described as high risk, high threat and of high intelligence value.

There have also been longstanding allegations that alQaeda suspects were held and tortured at a CIA “black site” in Poland.

Poland currently has over 2,000 troops stationed in Afghanistan.

Remi Adekoya

Banking

EU admonishes Poland for missed bank-rule deadline The country could be dragged before the ECJ if it doesn’t update its regulations soon Poland and nine other EU states have failed to meet a European Commission deadline for compliance with a directive aimed at curbing excessive risk-taking and tightening capital adequacy poli-

cies among banks and financial institutions.

Along with Italy, Spain, Greece, Portugal and Slovenia, Poland did not meet a single condition by this year’s January 1 deadline. Belgium, Luxembourg, Slovakia and Sweden, meanwhile, only partially fulfilled their obligations.

The countries have now been given two months to provide outlines which detail their

plans to adhere to the requirements.

“If the national authorities do not notify the necessary implementing measures [on the bonus and capital rules] within two months, the commission may refer the member states concerned to the Court of Justice,” the EC wrote in a statement.

The directive in question is designed to address issues

which previously led to “the failure of individual institutions and problems to the society as a whole.”

It obliges countries to adjust rules which govern financial institutions’ remuneration policies so “that [they] do not encourage or reward excessive risk-taking.” The directive gives banking supervisors the power to sanction banks which overstep the mark, but does not

contain explicit salary or bonus caps. It also requires states to put limits on risky financial products and sets out capital requirements. “If common rules are not upheld at the same level across the EU, this would leave room for current loopholes to be exploited,” the Commission wrote.

Poland’s Finance Ministry and financial regulator, the KNF, are in the process of

bringing Polish law up to speed with the EU directive, stressed Marta ChmielewskaRac∏awska, a banking sector spokesperson at the KNF. The appropriate amendments are very close to being signed into law, she said. “On the base of the [amended] Banking Act, the KNF will take and approve two resolutions, whose drafts are being prepared now.” Gareth Price

INDUSTRY NEWS

MAY 23-29, 2011

Shale gas

COURTESY OF MSZ

Poland firmly backs shale gas exploration

Poland is not afraid of shale gas, says Foreign Minister Sikorski

The worlds of politics and business came together to discuss Poland’s shale gas potential Politicians and businesspeople alike seemed determined to overcome challenges in exploiting Poland’s potentially enormous reserves of unconventional gas, at the “Shale Gas: Managing Europe’s Emerging Resource” conference in Warsaw last week.

“In certain countries there are initiatives to ban shale gas extraction. To them we say: do not be afraid,” said Polish Foreign Minister Rados∏aw Sikorski in his opening address.

The FM was alluding to France, whose parliament recently took a step towards banning shale gas extraction.

Going further, Mr Sikorski said, “Exploration of our own resources is our chance and our obligation.” Shale gas, he said, could be an opportunity

to limit Polish and European dependence on imports.

The Polish government’s unrelenting rhetorical support for shale gas exploration has not gone unmatched by deed, and many of the world’s biggest oil companies already possess exploration licenses and concessions. French oil giant Total, for one, just announced a joint venture with American ExxonMobil to explore two concessions for shale gas in Poland. It joined American behemoths Chevron, ConocoPhillips and Marathon Oil among others.

A representative for Total demurred when asked about the role of French politics in the firm’s Polish investment plans. Nevertheless, as with the nuclear industry, it is clear that politics at the highest level is involved in shale gas.

US Ambassador to Poland Lee Feinstein, who co-hosted last week’s conference, said he hoped that shale gas would

“contribute to the enduring, broad, and deep ties that Poland and the United States are forging in the new century.”

Tellingly, shale gas is expected to be at the top of the agenda during US President Barack Obama’s visit in Warsaw at the end of this week.

Exploration licenses handed out in Poland are cheap and thus very attractive, explained Grzegorz Pytel, an energy expert at the Sobieski Institute, a think tank. “For [oil and gas] companies it becomes a no-brainer that Poland should be on the agenda,” he said.

In his opinion, the issues that American companies expect Mr Obama to discuss in Warsaw include guarantees for production rights (which don’t come automatically with exploration licenses in Poland), and negotiations to maintain good tax conditions for production.

Alice Trudelle

Mobile telecoms

T-Mobile on the way Era is to be replaced with T-Mobile in June through a z∏.100 million rebranding Mobile telecom Polish Telefonia Cyfrowa (PTC) has announced its popular Era brand will disappear on June 5. Rebranding to T-Mobile will cost z∏.100 million, PTC chief executive Miroslav Rakowski told journalists last Thursday.

The move to replace Era, a brand 15 years on the market, follows Deutsche Telekom’s (owner of T-Mobile) takeover of PTC in January, when a decade-long ownership dispute was settled. The German telecommunications giant was one of PTC’s founding share-

holders in 1995.

Speaking about the announcement, Roland Mahler, Deutsche Telekom’s chief regional officer for Europe, said, “We are proud to be able to fully welcome PTC to the Deutsche Telekom family and see the T-brand shortly also on the Polish market.”

A Polish-language version of T-Mobile’s “Life’s for sharing” motto will be employed, while the “T” logo will replace existing designs at over 1,000 Era outlets across Poland.

Mr Rakowski said that Era is currently the best-recognized telecom brand in Poland, but continued on to explain that T-Mobile recently ranked 19th on Millward

Brown’s “BrandZ” ranking of the world’s most valuable brands.

The news is not all positive for PTC, as Mr Rakowski told a press conference that the company expects revenue this year to fall by up to two percent. This follows a drop of 3.4 percent suffered last year.

But despite this, Mr Mahler stated that Deutsche Telekom still feels the market offers great scope for growth.

“Poland’s mobile communications market presents solid opportunities for future growth to be taken advantage of – it is the biggest in Central and Eastern Europe and is still expanding,” he said.

David Ingham

www.wbj.pl

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INDUSTRY NEWS

www.wbj.pl

Energy

MAY 23-29, 2011

Legal News

Treasury to try Enea sale again this year?

Bailiff auctions of real estate to be announced online

COURTESY OF WIKIMEDIA COMMONS

Gov’t hoping the third time’s the charm for the oft-scorned utility The Polish government may take another stab at selling its controlling stake in the country’s third-largest utility, Enea, this year, Treasury Minister Aleksander Grad announced at the European Economic Congress in Katowice last week.

“At the end of the year that process could be started,” Mr Grad was reported by the Polish Press Agency as saying. “In November all the most important decisions regarding investments in the Kozienice power station will have been made.”

If this plan comes to fruition, it would mark Poland’s third attempt in two years to offload its 51 percent stake in Enea, valued at z∏.5 billion.

In April, French utility EDF withdrew from exclusive talks with the Treasury over the sale.

Previous attempts to sell the utility have stumbled over price

Contact: Miros∏aw Stefanik ms@pnplaw.pl

Attempts to sell Enea have stumbled over a requirement to invest in the Kozienice power plant and the requirement that Enea’s buyer invest in a coalfired power bloc at the company’s Kozienice plant.

The announcement came shortly after Enea reported an above-forecast 13 percent y/y rise in first quarter net profit on the back of higher sales. The company’s bottom line for the three months ending March 31 stood at z∏.247 million, compared to the z∏.205 million expected by a Reuters poll of

analysts.

Over the same period, revenues from sales rose by 22 percent to stand at z∏.2.47 billion.

In other news, Enea has pulled out of the race to buy the Polish assets of Sweden’s utility Vattenfall, CEO Maciej Owczarek told reporters. Last Monday was the final day to submit offers for Vattenfall’s several holdings in Poland, valued at around z∏.6.5 billion.

On April 28, the Sejm passed amendments to the Civil Procedure Code. The legislation aims to expand the scope of bailiffs’ duties to provide information in the case of bailiff auctions of real estate.

At present, a real estate auction must be announced at least two weeks before the date of the auction. It must be announced in the courthouse, the premises of the municipal authorities and in a regional daily newspaper. If the properties for sale are located in several districts, an announcement is placed in all relevant courts.

Pursuant to the proposed changes, announcements of bailiff auctions of real estate will also be published on the Public Information Bulletin (BIP) website.

Increased protection for trade union activists A special committee of the Sejm has approved the Senate’s draft amendments to the Labour Code. According to the

changes, an employer who has broken the law by dismissing a trade union activist employed for a specific period of time will have to reinstate that person if a court so decides. Currently, the only possible judgement is monetary compensation to the maximum amount of three-months’ salary.

Greater financial liability for civil servants On May 17, provisions came into force which regulate civil servants’ liability for gross violations of law. The introduction of the new provisions was a response to entrepreneurs’ demands for greater financial liability of civil servants for poor decisions which result in damages.

If the damages are caused by an unintentional mistake, the limit of financial liability on a civil servant will be 12 times his/her monthly salary. In the case of an intentional fault, the limit of liability on a civil servant is limited to the amount of compensation which the administrative authority has to pay to the company or a citizen who incurred damages. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

Alice Trudelle

Media patronage

EBAN Congress in Warsaw

The Congress was opened by Lewiatan’s Henryka Bochniarz and Minister Micha∏ Boni The European Business Angels Network Congress held in Warsaw saw two Poles snatch the most prestigious awards at the gala ceremony.

Mobile app developer Polidea and two Polish business angels, Tomasz Grzybowski and Krzysztof Gawrysiak, were distinguished with the “Deal of the Year” award at the sixth European Business Angels Network (EBAN) awards ceremony, held in Warsaw. The gala event was part of EBAN’s sixth annual congress and was held in Poland for the first time.

EBAN Congress Organizers:

The event was organized by Lewiatan Business Angels.

A Polish success story, Polidea, was established in 2009 and quickly started doing business with international concerns.

The firm designs, creates and implements mobile phone applications. Most of its clients, like the Netherlands’ Mobile Generation or Germany’s Entertainment Research, are based in the EU. On the Polish market, the firm provides mobile solutions to websites like Onet, Nokaut and Allegro. Polidea has also created its own electronic publishing plat-

EBAN Congress Partners:

form, Pixblish, which adapts traditional newspaper content for tablets and smartphones.

The main subjects discussed at the Warsaw EBAN Congress were syndicates and group investments, alternative models of management, the influence of early stage development on the economy and future trends in innovative business. The congress was co-financed with European Union funds, which was why attendance was free for the first time. The next congress is set to take place in Moscow in 2012. ●

Eko-Logic received the “Impact Investment of the Year” award EBAN Congress Media Partners:

LISTED FIRMS

MAY 23-29, 2011

www.wbj.pl

Banking

PGE Q1 profit up

KBC to offload Kredyt and Warta?

Belgian financial group KBC has reportedly hired the services of two US investment banks to help it draw up plans for the potential sale of its stock-listed Polish subsidiary Kredyt Bank as well as insurer Warta.

“Both Goldman Sachs and Merrill Lynch were hired for a possible sale of Kredyt Bank and Warta,” a person familiar with the plans told Reuters.

“The transaction would take place in the autumn.”

Kredyt Bank’s stock dipped

slightly on the news, but rallied the next day. It closed the week up 1.32 percent.

Contacted by WBJ, a spokesperson for KBC didn’t comment on the report, but said the bank would continue to move ahead with a divestment deal it struck with the European Commission in 2009.

The Belgium lender received €7 billion in state aid during the financial crisis and agreed with the European Commission to sell several of its assets, including Czech CSOB. The sale of Kredyt Bank and Warta, however, was not written into the agreement, and KBC would have to change the

terms to sell the assets.

“If the reports are true, this is pure opportunism. KBC is a distressed bank – it has commitments,” said Dariusz Gorski, an analyst at Wood & Company Financial Services.

“Perhaps KBC wants to check under which conditions it could sell Kredyt Bank and Warta. This would enable it to make a decision on whether to sell its Polish assets and leave its [larger] asset CSOB,” he continued.

Kredyt Bank has around 620,000 personal accounts and a market capitalization of z∏.4.67 billion.

The bank launched a tele-

vised ad campaign last Sunday featuring popular satirical duo Wojciech Mann and Krzysztof Materna. The bank’s goal is to double the number of new accounts opened every month.

Currently, between 5,000 and 6,000 accounts are opened

monthly.

A number of other ownership changes have taken place in Poland’s banking market this year, including Spanish Santander’s takeover of Bank Zachodni WBK and Raiffeisen’s GP purchase of Polbank.

Stock on the rise 20.0 17.5 15.0 12.5 10.0

Dec 20

Jan 19

Feb 21

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May 19

Privatization

BG˚ IPO falls flat, fails to attract minimum price The Treasury earned just 22 percent of its z∏.1.44 billion target Poland’s state Treasury only managed to sell a third of its 37 percent holding in Bank Gospodarki ˚ywnoÊciowej (BG˚), scuppering its plan to raise as much as z∏.1.44 billion from the initial public offering.

A guide to Polish business and industry

In the end, the Treasury sold just 5.2 million of the 16 million shares it wanted to put on the block. Shares were sold at z∏.60 apiece, although the original price range was set at z∏.66-90 per share.

In all, the state raised z∏.312 million from the sale, just 22 percent of what could have been made had shares sold at

Przewodnik po polskim biznesie i gospodarce

the high-end price.

“We do not want to sell [the whole stake] at the low price and that is why we will wait with the rest,” Treasury Minister Aleksander Grad said at a press conference.

“Our main goal was achieved; the bank will be a publicly traded company in Warsaw,” he continued, adding

the dominant players in the market • Expand your portfolio of contacts • See who’s on top of your sector

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that the state hoped to sell the rest of the shares at a better price in the future.

Poland is trying to raise z∏.15 billion from asset sales this year in an effort to reduce the budget deficit and pare down debt.

Prior to the IPO, analysts had warned that BG˚’s share price range was too high.

The 2011 edition of Book of Lists is now available!

• Find key information about

Please contact us at +48 22 639 85 68 or kwilinski@valkea.com

Poland’s largest power utility, PGE, reported a net profit of z∏.1.24 billion for the first quarter of 2011, up 38% from the z∏.899 million it earned last year. Significantly higher compensation earned on the termination of long-term energy supply contracts contributed to the growth of PGE’s profit.

Kredyt Bank's stock price, Dec 2010 to May 19 (selected dates) Source: Warsaw Stock Exchange

The Belgian lender has reportedly turned to Goldman Sachs for advice

7

On May 27, BG˚ will join on the Warsaw Stock Exchange, becoming the latest of more than 20 firms to list on the bourse’s main floor this year. The WSE, together with its secondary market, NewConnect, has hosted more IPOs than any other European Stock exchange so far this year.

Thomas Kolasa

JSW debut delayed The IPO of statecontrolled miner Jastrz´bska Spó∏ka W´glowa (JSW) will be delayed by six days, Treasury Minister Aleksander Grad has said.

The original plan was to list the company on the Warsaw Stock Exchange on June 30, but opposition from trade unions has forced the state to push back the date. “A new company statute guaranteeing the State Treasury’s corporate governance over the firm has been approved,” Mr Grad told reporters.

This had been a key outstanding demand made by unions. ●

COVER STORY

www.wbj.pl

AIDS activist’s bike stolen Having cycled over 80,000 km through 60 countries, including war-torn Afghanistan, Indian-born HIV/AIDS campaigner Somen Debnath arrived in Warsaw last week and promptly had his bike stolen. “I locked it downstairs with a chain and in the morning it was not there, although the gate was double locked,” Mr Debnath wrote on his blog. An unnamed sponsor has agreed to provide a new bike for Mr Debnath, who plans to visit 191 countries on a world tour to promote awareness of HIV/AIDS.

Philips corruption trial Two former Polish employees of Dutch electronics giant Philips are to stand trial in Katowice on corruption charges, the Associated Press reported. The onetime head of the company’s medical arm and the former regional head of Philips Polska have been charged with giving bribes of up to €100,000 to persuade hospital directors to buy Philips equipment.

Ukraine-EU agreement Ukraine is hoping to have an agreement on a free trade zone with the EU signed during Poland’s tenure as president of the EU Council. Foreign Minister Rados∏aw Sikorski has voiced his support for the agreement.

U of Warsaw tops ranking The University of Warsaw took first place in the latest ranking of institutions of higher education conducted by Perspektywy monthly.

Second and third places were taken by the Jagellonian University in Kraków and the Warsaw University of Technology respectively. ●

MAY 23-29, 2011

Soccer

A game under siege

Remi Adekoya

Hooligans have become a cancer eating Polish soccer from the inside.

What can be done?

Who is the face of Polish soccer? The answer isn’t that simple. Poland hasn’t been blessed with a Ronaldinho, Beckham, Maradona or Zidane, at least not yet. There are decent Polish players, but none have achieved true international celebrity.

No, these days it seems safe to argue that the face of Polish soccer isn’t a player at all. It’s a skinhead in a hoodie.

Hooliganism has long been a plague upon the country’s national soccer league, and Polish soccer thugs have achieved a kind of casual international infamy. Search YouTube for the phrase “Polish hooligans” and you’ll be treated to a wide variety of bloody clashes.

But recent, high-profile outbursts of violence, together with European soccer body UEFA’s growing concerns about safety during next summer’s European championship, have inspired Polish politicians to get involved.

But are they really equipped to deal with the problem?

It’s just not cricket The issue of hooliganism really hit the headlines after a March 25 international friendly in Kaunas, Lithuania.

At the conclusion of the match, hundreds of Polish “pseudofans,” as they are often called in Poland, went on a violent rampage.

Footage of hooligans battling Lithuanian police was broadcast around the world.

After the incident UEFA admitted its concerns.

“It’s a huge problem, there are always hooligans at every match in Poland,” Martin

TOMASZ BIDERMANN/SHUTTERSTOCK

8

“Soccer is the only thing that counts in life.” So why wreck the stadium?

Kallen, UEFA’s Euro 2012 operations director, told the press at the time.

In turn, Polish Justice Minister Krzysztof Kwiatkowski announced a set of proposals intended to counter the threat of violence during Euro 2012.

These include introducing electronic tags for convicted hooligans to ensure they stay home on match days and initiating on-site court proceedings at stadiums.

“The judge would sit in court, and there would be a special place in the stadium where, using teleconference technology, the proceedings could take place and the hooligan could be convicted quickly, safely and in adherence with all of the proper legal procedures,” said Mr Kwiatkowski.

These proposals did little to diminish hooligans’ appetite for violence, howev-

er. The May 3 Polish Cup Final match between Legia Warszawa and Lech Poznaƒ, held in Bydgoszcz, ended in a riot. Hooligans from both sides ripped out seats, invaded the pitch and threw metal objects and fireworks at police, who eventually employed water cannons to control the crowd.

The European soccer authority will continue to work together with other entities involved in security matters, they said, in order to develop and implement the necessary measures.

Meanwhile, Prime Minister Donald Tusk announced that the police and organizers of mass events should work

“It’s a huge problem, there are always hooligans at every match in Poland” The riot caused about z∏.40,000 in damages, while the total cost including police resources amounted to an estimated z∏.1 million.

UEFA officials, who were present at the match in Bydgoszcz, later released a statement saying they were “aware of the incidents.”

together more closely, and that hooligans banned from soccer matches should also be banned from other large-scale events. Mr Tusk said that Poland had “many strict regulations” on stadium security and called on the authorities and match organizers to adhere to them.

“They should follow police guidance and close stadiums to fans if security cannot be assured during matches,” he added.

Systemic failures Unfortunately, the problem of Polish hooliganism extends far beyond the stadium. It pervades the country’s soccer culture, as evidenced by the recent revelation that the head of the police team responsible for fighting stadium hooliganism had personally intervened with the Polish Football Association (PZPN) on behalf of notorious Legia Warszawa hooligan leader “Staruch.” The policeman asked PZPN officials to issue Staruch a ticket to the Polish Cup despite the latter being subject to a stadium ban following an assault on Legia Warszawa’s captain during a match.

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9

Legal Eye

Hooligan crackdown

EAST NEWS/LASKI DIFFUSION LITHUANIA

Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki, A. Chelchowski & Partners. fogo@pl.millercanfield.com

Lithuanian police attempt to control unruly Polish fans at a 2007 match In the end, the hooligan leader not only attended the Cup final, but the victorious Legia players handed him the trophy to present to fans.

The line between fan organizations and team management appears to be blurred in some cases as well.

The managers of Lech Poznaƒ have been under intense scrutiny lately, for example, due to their ties to Krzysztof M., also known as “Litar,” who heads the Wiara Lecha organization.

There have been accusations that his firm, Trocadero Catering, was inappropriately granted exclusive rights to cater Lech Poznaƒ’s stadium.

The company earned z∏.690,000 last year on its contract to service the stadium in Poznaƒ during Lech Poznaƒ matches, according to team officials.

It was later revealed that the catering firm had been unlawfully occupying warehouse space at the stadium.

The team’s management have denied wrongdoing in the matter. But following charges brought against Krzysztof M. for assault and spitting on someone during a 2010 match, team officials decided to end the contract with Trocadero.

And those are just recent, well-publicized examples. Experts say there are plenty of lesser known but equally troubling situations as well.

So why are professional soccer clubs working arm-inarm with known criminals?

“This is one of the mysteries of the Polish soccer scene.

One possible answer is that hoodlums guarantee the clubs calm in their stadiums during

home matches in return for various privileges,” said Micha∏ Szadkowski, a sports journalist with Gazeta Wyborcza who has been writing about Polish hooliganism for years.

“We have posed this question to the board members of many Polish clubs, but have yet to hear a clear and credible answer.”

Playing without fans Following the violence at the Cup final, officials from the

was, in effect, “punishing” normal fans.

However, Ms Olejkowska stated that PZPN is trying to help in the battle against hooliganism and has decided not to allow organized groups of fans to attend away matches for the rest of the season. In other words, if an individual wants to buy a ticket for an away match they are allowed to do so, but they must not carry or exhibit any team souvenirs during the game. If fans from a visiting

“This government now seems ready to fight hooligans, but I cannot predict who will prevail” Wielkopolskie (where Poznaƒ is located) and Mazowieckie (Warsaw) voivodships decided that both Legia’s and Lech’s next matches would be played behind closed doors.

They justified the decision saying that the police had informed them the two clubs could not guarantee safety in their stadiums. Both Legia Warszawa and Lech Poznaƒ protested the ruling, while the move was also criticized by PZPN. “We are not happy the stadiums were closed. That is not a permanent solution,” said Agnieszka Olejkowska, a spokesperson for PZPN. “We are also being criticized for the hooligan problem, but we are focusing on what we were established to do. The police should deal with the problems,” she stated. Micha∏ Szadkowski of Gazeta Wyborcza agreed that closing stadiums completely

team begin to group together and engage in certain behavior, such as chanting offensive slogans, then the police will be obliged to stop the match.

Will it actually make a difference?

“Well, PZPN enforced the rule of no groups of away fans during the last round of league matches and it worked, so it seems a good idea. But it’s not yet clear whether they will enforce this in the next season before Euro 2012,” Mr Szadkowski said.

Officials from PZPN have also met with officials from the Interior and Justice ministries in order to coordinate and push through effective measures to implement both team- and court-ordered bans on fans.

PZPN has pointed out that judges often know little about

the soccer world, so while they might ban a hooligan from matches organized by clubs, that person is still able to attend matches organized by the Polish FA, such as the recent Polish Cup final. And the Polish soccer body says it does not have the legal authority to ban fans itself, something which it is now trying to change.

“It would be a good idea for PZPN to be able to issue stadium bans from matches they themselves organize,” said Mr Szadkowski.

Hooligans 1, fans 0 Numerous suspected offenders have been arrested since the Bydgoszcz events, most of whom were identified with the help of security cameras as well as films posted on the internet after the event. At least 57 have already been charged by the prosecutor and the authorities have decided to publish images of hooligans wanted for questioning, although only on the police website.

The government seems serious in its fight against this embarrassing phenomenon now, but will it succeed before Euro 2012?

“I’ve seen many governments come and go, saying they would fight hooligans, but to no avail. This government now seems ready to fight them, but I cannot predict who will prevail,” said Mr Szadkowski.

The run up to Euro 2012 offers the perfect excuse to make a change though. And Poland desperately needs a new face for its soccer culture, one that inspires the next generation of players instead of the next generation of criminals. ●

The display of violence at the Polish Cup final between Legia Warszawa and Lech Poznaƒ on May 3rd appears to be the proverbial straw that broke the camel’s back.

And well it should be.

Immediately afterwards the Polish Football Association banned the two teams in question from having any fans present during their next three home games. Less than two weeks later the Association banned all supporters from traveling to away games in the three largest Polish soccer leagues through the end of the season.

The bans, however, were just the beginning. A week later the government submitted new legislation to the Sejm which, if adopted in its current form, would not only toughen the criminal penalties for soccer hooliganism, but also strengthen the powers of the police and judiciary to administer “on the spot” justice at the soccer stadium immediately upon apprehension of a fan caught in the act of hooliganism during a match.

Recent history The violence in Bydgoszcz is just the most recent example of hooliganism by Polish soccer fans.

In March more than 10 Polish soccer fans were arrested by Lithuanian police during a riot at a friendly match between Poland and Lithuania in the town of Kaunas. Following this match the governing body of the United European Football Association announced that Poland had a “huge image problem” and voiced concern over Poland’s preparedness to co-host the 2012 European Championship. Martin Kallen, who will head up the 2012 Championship, commented at the time that hooliganism had become the norm at Polish soccer matches.

In 2009 four Polish soccer fans were arrested following an outbreak of violence on the streets of Belfast in Northern Ireland following a match between Poland and Northern Ireland.

In 2003 a fan was killed and more than 120 were arrested during a soccer match played in Wroc∏aw. At the time the then president of Poland’s Football Associa-

tion attributed the violence to “bandits posing as fans.”

Government reaction Immediately after the riot in Bydgoszcz, Prime Minister Tusk noted that Poland had “sufficient legal instruments to deal with the issue already,” but that the “will to put them into place” had been lacking.

Nonetheless, Mr. Tusk’s government introduced new legislation just one week following the riot in Bydgoszcz to specifically address soccer hooliganism. Most notably the draft legislation would enable the police to apprehend and immediately bring to trial any fan caught in the act of hooliganism during a soccer match.

And by immediately the government means immediately. The trial would be conducted on site at the soccer stadium. A judge would presumably officiate by video.

The defendant would be entitled to be represented by a defense attorney; however, the current legislation does not provide for just how in practice a defendant is supposed to arrange for defense counsel on such short notice.

In this scenario justice would be swift and immediate. Instead of a trial being scheduled two to four months later, trial would be just two to four hours following arrest.

One particular change proposed by the government would make it a crime for a soccer fan to conceal his or her face during a match to avoid being identified. The mere act of covering one’s face during a match would be subject to prosecution, resulting in a monetary fine.

To date nearly 2,000 soccer fans have been banned for life from attending any soccer match. Under the proposed legislation, a person wishing to buy a ticket to a soccer match would have to register with a central database, which would presumably prevent known troublemakers from gaining access to a soccer match.

Only time will tell if the government’s tougher stance on soccer hooliganism, as evidenced by the proposed changes in the law, will be sufficient to clean up the image of Polish soccer before Poland hosts the 2102 European Championship. I have my doubts. ●

10

BUSINESS ENVIRONMENT

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MAY 23-29, 2011

CEE economics

Tusk: protectionists ‘don’t understand’ Europe At last week’s European Economic Congress in Katowice, business and political leaders from Central and Eastern Europe discussed the issues affecting the region “Politics without dreams becomes a boring routine with no perspectives. The Polish presidency will serve to revitalize European faith and energy,” said Mr Tusk. The PM added that he hoped Croatia would join the European Union during Poland’s presidency.

Europe’s savior Victor Orbán, the controversial Hungarian prime minister, claimed the CEE region “saved” Europe during the recent economic crisis.

“Thanks to our competitiveness we prevented the transfer of production outside Europe,” Mr Orban said. His solution for the EU’s current economic troubles? “We need to reduce taxes and debt and give people work. That’s a truth which has been known for thousands of years,” he said.

When it came to the issue of the 2014-2021 EU budget, EU Budget Commissioner Janusz Lewandowski said that countries from the CEE region were fighting for a new EU budget which would con-

COURTESY OF KPRM

Top of the agenda for the three-day European Economic Congress in Katowice were issues relating to European competitiveness in today’s global market, the EU’s 20142021 budget, climate change and energy.

“We want one free Europe, with no internal borders. A Europe which believes in its future,” Prime Minister Donald Tusk said on the opening day. This statement was clearly made in response to recent announcements by France and Germany concerning a temporary reinstatement of immigration control on their borders.

“Anybody in Europe who says that today, in the midst of crisis, unrest and rising costs of living, we should bet on nationalism, statism and protectionism doesn’t understand the idea of Europe or wants to sell it out for his own superficial political success,” Mr Tusk said.

Prime Minister Tusk stated that it had taken many years for the “brave dream” of countries from CEE nations living in a free Europe to come true.

Mr Tusk came to the defense of a “free” Europe in his opening address tain generous structural funds.

“There is a huge chance that despite the protests of the United Kingdom, France and other EU heavyweights, next year’s budget will be bigger [than this year’s]. I have the proper arguments to defend myself from attacks,” Mr Lewandowski said.

Recently, the leaders of

France, Germany, the UK, Finland and the Netherlands have all called for a cap on the EU budget until 2020 as a result of the current economic situation.

Utopia or growth?

Almost all representatives of energy firms present complained about EU directives

calling on the bloc to reduce carbon emissions by 20 percent by 2020 and 80 percent by 2050. In Poland this task will be particularly hard as the country derives over 90 percent of its electrical energy from coal.

“The EU’s vision is a utopia.

No group of bureaucrats in Brussels is able to enforce such

technological progress, that by 2050, 80 percent of our energy will come from the wind, the sun, corn or rape seed,” said Marek Serafin, the vice-president of PKN Orlen.

“Will society want utopia and maybe a little cooler climate or economic growth?” he asked.

Remi Adekoya

Labor market

bank boss Marek Belka said that the process of tightening monetary policy had not yet been concluded and that the Finance Ministry’s policy of buying z∏oty with euro to strengthen the Polish currency “isn’t an action to substitute rate increases.”

He admitted, however, that he is against “too many” interest-rate hikes and that the RPP would only raise rates when it is “inevitable.”

The RPP has already raised the headline interest rate three times this year. Inflation for April came in at a two-and-ahalf-year high of 4.5 percent y/y, far in excess of the central bank’s 2.5 percent target. GP

Earnings report Average gross wage in the Polish economy (in z∏oty), April 2010-April 2011 4,000 3,750 3,500 3,250

20 10 y2 01 Jun 0 e2 01 0 Jul y2 01 Au 0 g2 01 Se 0 pt 20 10 Oc t2 01 No 0 v2 01 De 0 c2 01 0 Jan 20 1 Feb 1 20 1 Ma 1 r2 01 1 Ap r2 01 1

3,000 Ma

Wage and employment data for April paints a generally positive picture of Poland’s economy, but analysts are now all but convinced that interest rates will be hiked next month.

Payrolls grew by 3.9 percent y/y in April, which although below the market forecast of four percent, hasn’t dampened optimism for the medium term.

“In our view, the disappointing employment growth does not weigh on the outlook for labor demand in Q2 and later in the year, which remains quite optimistic,” Bank Zachodni WBK wrote in a comment.

Meanwhile, the average gross wage in the corporate sector rose by 5.9 percent y/y in April to z∏.3,597.84, well above market expectations of 4.5 percent growth.

“The acceleration of the wage bill means an improvement in the income situation of households and supports strong consumption demand,” BZ WBK wrote.

The higher-than-expected wage growth coupled with

hawkish commentary from several monetary policy makers has fueled speculation among analysts that the ratesetting Monetary Policy Council (RPP) will raise interest rates when it convenes in June.

Before the wage data was released, RPP member El˝bieta Chojna-Duch said that the market could see two more interest rate hikes totaling 50 basis points. “[It] may be justified, taking into account the circumstances of the global economy and the uncertainty associated with the change of macroeconomic conditions in the country,” she said.

In an interview with Rzeczpospolita last week, central

Ap r

Higher-than-forecast April wage growth has brought the interest rate hawks out

Source: Central Statistical Office

Poles are the most stressed workers in the world, according to research from Extended DISC. The company’s National Stress Indicator (NSI) is a measure of the level of occupational stress workers in different countries feel. Each individual surveyed receives a stress score that is based on the size and importance of negative stress indications.

The higher the result, the less calm and comfortable the work environment is.

Poland’s combined NSI came in at 2.22, well ahead of South Korea (1.98) and Denmark (1.81), the second and third placed countries respectively.

Those most prone to workrelated stress are residents of large cities. In Warsaw, only one person in 20 does not complain about stress at work.

Other countries with high values in the occupational stress indicator were Finland (1.74), China (1.68) and Thailand (1.53). On the low end of the scale were Brazil (1.19) and Spain (1.41).

Another recent study, by personnel consultancy Sedlak & Sedlak, found that just one in three Polish workers are sat-

SHUTTERSTOCK

Poles stressed, Wages, employment up dissatisfied at work

An all-too-common sight in Polish offices? isfied with their current jobs.

The results of the study imply that the key to career satisfaction lies in the employee’s level of remuneration in their position.

The report found those with high salaries were the most likely to respond positively when asked about their job. For example, 80 percent of those polled who earned more than z∏.25,000 per month expressed satisfaction, while

only 15 percent of those earning z∏.2,000 were happy with their jobs.

In addition, over 57 percent of those in higher or directorial positions were content with their careers, while only 22 percent of workers in lower level jobs were satisfied.

Almost half of those surveyed were unable to say whether they were satisfied with their work or not.

David Ingham

OPINION & ANALYSIS

MAY 23-29, 2011

www.wbj.pl

Obama in Poland: expectations and reality

“W

ill he make it happen or won’t he?” – this is the biggest question on Poles’ minds ahead of US President Barack Obama’s visit to Poland.

“It” refers to the addition of Poland to the US Visa Waiver Program, of course. The fact that Poles still have to fight for tourist visas has

“The media will judge the visit based on one simple issue – whether Poland gets into the Visa Waiver Program” long been a source of frustration. Of the EU27 countries, only Poland, Bulgaria and Romania remain outside the program. And of those nations, Poland has the closest ties to the US. But while the average Kowalski will be wondering about visas, discus-

sions with President Obama will undoubtedly focus on issues which are more important to the long-term interests of both countries.

An African mission It is no coincidence that the American president’s visit comes roughly a month before Poland takes over the presidency of the EU Council.

One of the priorities of American diplomacy is to improve the situation in North Africa, where protests, disturbances and outright warfare have destabilized the region. Now that bin Laden has been eliminated and alQaeda significantly weakened, America is especially keen to see the chaos-plagued countries of North Africa find the path to democracy rather than fall prey to Islamic radicals.

However this remains a “politically difficult” region for the US. American politicians are not welcome. At the same time, Washington has not been able to count on the EU so far – Brussels has avoided political involvement in North Africa like the plague and Catherine Ashton, the

head of EU diplomacy, is not even pretending that Europe has an action plan for North Africa.

For Washington, the Polish presidency is thus a gift from heaven. This is all the more so because Polish Foreign Minister Rados∏aw Sikorski, with the blessing of other European governments, will replace Ashton in contact with North Africa during the Polish presidency.

Sikorski – one of Poland’s most popular politicians – is a man with a colorful past: before he became a public official he was a war correspondent in conflict ridden countries.

He wrote reports from the SovietAfghan War, from Angola and from the countries which toppled communism after 1989. Moreover, he has excellent contacts among politicians in Washington.

Recently he had the courage to make a gesture which Ashton would not have dared – he got into a military aircraft and paid a visit to Benghazi, the provisional capital for the Libyan rebels fighting against Muammar Qaddafi’s regime. He met with the head of the insurgents’ National

Transitional Council, Mustafa Abdul Jalil. He communicated to him that the EU recognizes the Council as a legitimate negotiating partner.

The Americans seem to believe that Sikorski’s mission to North Africa will succeed and will be in line with Brussels’ and Washington’s plans. And it is safe to assume that North Africa will occupy a place of priority on Obama’s agenda in Warsaw.

And in return...

In exchange, Warsaw expects an ally – both political and economic – in the issue of shale gas exploitation.

In April, the US Energy Information Administration announced that Poland has an estimated 5.3 billion cubic meters of shale gas to be exploited. Such a quantity of gas – according to the Agency – ought to meet Poland’s gas needs for the next 300 years. And it would certainly free Poland from dependency on gas deliveries from other countries, above all from Russia.

Among the firms which have received concessions to look for

11

Joanna Wóycicka unconventional gas in Poland are American leaders in the industry such as ConocoPhillips, Chevron, ExxonMobil and Marathon Oil. There are plenty of people in Brussels who disapprove of shale gas due to the environmental concerns involved. But Poland in turn has become dependent upon the opinions and analysis of American scientists, many of whom have stated that the extraction of the gas poses no grave danger, and upon Washington’s involvement in political-economic lobbying for shale gas exploitation.

The matters of North Africa and Polish gas will be discussed behind closed doors. And, regardless of how negotiations on these topics turn out, the media will judge the visit based on one simple issue – whether Poland gets into the Visa Waiver Program. ● Joanna Wóycicka is the former head of the foreign sections of the ˚ycie Warszawy and ˚ycie newspapers and the former head of the foreign department at the Polish Press Agency (PAP). j.woycicka@hotmail.com

Poland’s continued hesitation over euro zone entry

P

olish Finance Minister Jan Vincent-Rostowski told journalists last week he was uncertain whether Poland would enter the euro zone by 2019, an apparent reversal of Warsaw’s previous plan to join the currency bloc sometime between 2014 and 2016.

Vincent-Rostowski’s statement is unsurprising; Poland has been vacillating on the exact date of its euro zone entry for years. The country’s strong economy since the 2008 financial crisis has made it a prime target for euro zone entry, especially for Germany, which wishes to formally fold Warsaw into its sphere of influence. However, the financial crisis has shown Poland the benefits of controlling its own currency as well as Germany’s intentions to bolster its control of the euro zone. Poland thus remains skeptical that euro zone membership will truly serve its national financial interests.

Fiscal strength Poland has managed to avoid a recession since the 2008 financial crisis, with a steady growth in GDP of 1.7 percent in 2009, 3.8 percent in 2010

and a projected 3.3 percent in 2011, according to European Commission forecasts. Poland relied on its robust internal demand to stave off the recession, while strong banking oversight and lack of foreign currency denominated lending prevented its consumers and corporations from suffering when the Central European exchange rate against the euro suffered in late 2008.

This allowed Poland to push through the initial drop in the z∏oty’s value against the euro with few negative consequences to its consumers and banking system, unlike its Central European peers – specifically Hungary and Romania, which are far more reliant on foreign currency denominated lending. It also meant that Poland could rely on export-led growth to push through 2009, whereas the rest of Central Europe was stuck between the threat to their banking systems from depreciating currency and the need to spur growth with precisely such depreciation.

Poland’s success has highlighted it as a destination for foreign direct investment. In 2009, it had a greater ratio of foreign direct investment to

GDP than most euro zone heavyweights, including France, Italy, Germany and Spain. Its successful navigation of the sovereign debt crisis has made it appealing to investors, particularly in the United States, who are looking to avoid investing in the euro zone while the bloc’s troubles continue.

Warsaw has initiated an expansive privatization program to address a budget deficit that has been more than seven percent of its GDP since 2009 because of the crisis. General government debt is also supposed to approach the euro zone limit of 60 percent of GDP in 2011 and is likely to exceed that limit in 2012.

Warsaw’s independent streak Though Polish public finances do not conform to the Maastricht criteria for euro zone entry, Warsaw has been seen as a prime target for European Monetary Union expansion. It has the largest market in Central Europe by far and has generally been committed to maintaining low budget deficits.

German Chancellor Angela Merkel told the Polish and Czech prime ministers in December 2010

that she wanted to see the two countries join the euro zone, amid the negotiations for a new enforcement mechanism for the currency bloc.

Merkel wants Prague and Warsaw in the euro zone because she believes they, along with Finland, the Netherlands, Austria and Slovakia, align themselves with the German vision of strict adherence to euro zone rules, which, from Berlin’s view, will provide a fiscally conservative counterbalance to the more profligate Mediterranean countries.

Germany also wants Poland and the Czech Republic to join the euro zone so that it can bring them into its sphere of influence. This in large part explains Warsaw’s hesitancy to enter the euro zone and the constant revision of its ultimate entry date. As Berlin has taken the reins of the euro zone, it has sought to fashion it into its own image, strengthening its hold on the currency union. This only serves to further sour Warsaw’s (and Prague’s) perceptions of the benefits of euro zone entry, particularly after the 2008 recession experience illustrated the benefits of controlling one’s own currency.

Interestingly, Vincent-Rostowski’s statement also comes after the Visegrad Group, a regional alliance comprising Poland, the Czech Republic, Slovakia and Hungary, moved to

“Germany wants Poland and the Czech Republic to join the euro zone so that it can bring them into its sphere of influence” form a military battlegroup independent of NATO, illustrating Warsaw’s skepticism of NATO’s ability to satisfy its national security interests.

Vincent-Rostowski’s statement can be seen as Poland being similarly skeptical of the euro zone’s ability to satisfy its national economic interests. ● “Poland’s continued hesitation over euro zone entry” is reprinted with permission of STRATFOR

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MARKETING &SALES

MANAGING DIRECTOR MONIKA STAWICKA

SUBSCRIPTIONS MANAGER

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

LOKALE IMMOBILIA PRESENTS A SPECIAL EDITION OF POLISH REAL ESTATE NEWS FOR THE REAL VIENNA EXPO

LOKALE IMMOBILIA

W a r s a w B u s i n e s s J o u r n a l ’s w e e k ly s u p p l e m e n t o n re a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t

FMZ work begun Austrian developers UBM and Credo have launched construction of their FMZ retail project in Lublin.

Located at the intersection of the city’s ul. Me∏giewska and ul. Turystyczna, the investment will comprise 13,850 sqm of space. It is scheduled for completion in October. The investors have already secured Praktiker as an anchor tenant to occupy some 8,800 sqm of space.

“Talks with other tenants are currently underway,” Peter Obernhuber, a member of UBM’s management board, said in a statement. ●

In this issue Alterco’s R&R property . . . . . . .12 Osiedle Akropol project . . . . . .12 Krzesiny retail scheme . . . . . . .13 Pradera buys Osowa . . . . . . . . .13 Mokotowska Square opening 14 PPG’s Poznań office . . . . . . . . . .14 Who’s news . . . . . . . . . . . . . . . . .14 Property-related stocks . . . . . .14 Land market trends . . . . . . . . . .15 PKO BP Inwestycje rebrands . . .16 Zielona Dolina green-lit . . . . . .16 COVEC’s A2 woes . . . . . . . . . . . .17 Galeria Goplana financed . . . . .17 Wolf Bracka progress . . . . . . . .18 Wrocław’s warehouse market 18 Skanska’s road deals . . . . . . . .19 Developing for the disabled . .19 City Apartments phase III . . . .19

Hotel-recreation

Alterco acquires land in Sztynort A conference center, hotel and around 30,000 sqm of residential space will be developed Real estate investor Alterco has purchased a 100 percent stake in special purpose vehicle Tiga Investment for z∏.48.16 million.

The move is intended to add new recreational assets to Alterco’s real estate portfolio.

In purchasing Tiga, the firm has acquired over 50 ha of land in the northeastern village of Sztynort Du˝y, WarmiƒskoMazurskie voivodship, not far from the border with Kaliningrad, Russia. Alterco notes that the village is home to Poland’s largest inland yacht port.

The company intends to develop a sport-recreation center in Sztynort.

“In investing in one of the most beautiful locales in [the Mazury lake district], as

stature.”

The facility is to include a 1,000-sqm conference center and will welcome families, as well as summer and winter sport enthusiasts, allowing it to remain open all year.

Further down the line Alterco intends to develop hotel space and holiday apartments, the latter possibly under a timeshare system. A representative of the company confirmed that buildings comprising around 20,000 sqm of residential space (with retail and service points on the ground floor) would be erected, along with around 10,000 sqm of upper-standard residential space.

A three- or four-star hotel complex is expected to host between 200-300 rooms.

The as-yet-unnamed investment is currently in the design phase and its total cost is as yet unknown. However, work on the first stage is expected to launch at the beginning of 2012.

Alterco expects to bring new hotel, conference and residential space to Sztynort Sztynort undeniably is, we’re taking a comprehensive approach,” Zbigniew Zuzelski,

Alterco’s president, said in a statement. He added, “It’s not only important to prepare all of

the infrastructure, we’re also thinking about the particulars which will better the center’s

E Blake Berry

Residential

Osiedle Akropol coming to Bemowo Housing giant Dom Development is also working on a new phase of its Wilno project Dom Development, one of the biggest developers in Poland’s residential market, will build a new estate called Osiedle Akropol in the capital’s Bemowo district.

The housing project, which will be located on ul. Hery, is to comprise a total of 366 apartments in four buildings with internal courtyards. The buildings will range from four to seven storeys in height, with terraces for the penthouse units.

Osiedle Akropol will comprise one- to five-room apartments, sized from 32.1 to 120.7

COURTESY OF M+G

Next month developer Globe Trade Centre (GTC) will deliver the fifth phase of its Osiedle Konstancja residential investment in Konstancin-Jeziorna near Warsaw. This phase will offer 37 two-storey houses, both detached and semi-detached. Some properties remain available for purchase.

During the four previous stages of the investment, GTC built 242 homes which included mansions and single-family houses.

MAY 23-29, 2011, LI 16/20

COURTESY OF ALTERCO

Osiedle Konstancja’s next phase

•

Osiedle Akropol will comprise four buildings with 366 units sqm. Apartments will be priced from z∏.6,880 to z∏.8,900 per sqm.

Residents of the estate will be provided with an underground parking lot for 371 cars.

Osiedle Akropol has been designed by Warsaw-based architects DAP Pawe∏ Piàtek.

Delivery of the project is scheduled for Q4 2012, with Polish construction firm Kalter discharging general contract-

ing duties.

In addition to Osiedle Akropol, Dom Development has also launched construction of the latest phase of its Wilno residential project in the Elsnerów neighborhood of

Warsaw’s Targówek district.

This phase comprises three buildings with 117 units, sized from 31.1 to 68.9 sqm. As in the case of Osiedle Akropol, completion is scheduled for Q4 2012.

Sitting on 20 ha of land, Wilno is expected to comprise some 2,000 units when completed. The investment was designed by the Hermanowicz Rewski Architekci studio.

Erbud is serving as general contractor.

Warsaw Stock Exchangelisted developer Dom Development is currently realizing 21 investments. The company’s main shareholder is Rotterdam-based Dom Development BV, which has a 61.91 percent stake.

Katarzyna Piasecka

Warsaw Business Journal presents Real Estate weekly newsletter • Know about the newest projects before they’re on the market • Keep up to date on the latest tenders and auctions • Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

MAY 23-29, 2011

LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

Pradera, a London-headquartered retail property fund manager, has purchased the Galeria Osowa shopping center in Gdaƒsk from CEE retail property fund Carpathian.

The transaction is valued at €34.5 million, although the parties agreed on a €3 million retention pending the resolution of issues related to the property’s occupancy permit.

Germany’s Pfandbriefbank guaranteed the financing of the deal.

This marks the completion of Carpathian’s sale of its “Blue Knight” portfolio to Pradera. The other three properties in the portfolio – Galeria Tulipan in ¸ódê, Gale-

COURTESY OF PRADERA

Pradera completes ‘Blue Knight’ deal ria Kometa in Toruƒ and CH Sosnowiec in Sosnowiec – were sold in Q1 for a gross consideration of €40.2 million.

Galeria Osowa is a singlestorey shopping center completed in 1998. Within its 45,000 sqm of total space the mall hosts 69 retail-service outlets, with a Real hypermarket serving as the anchor tenant. Apsys Polska manages the property.

Why is Pradera interested in mid-sized retail properties in Poland?

“Pradera buys shopping centers which we believe we can add value to,” said Peter Zimny, head of the Polish office, adding that his firm prefers cities with populations of over 100,000.

As examples of the “valueadded” strategy he offered Pasa˝ ¸ódzki and Galeria

Galeria Osowa was purchased for €34.5 million Gniezno. “Since acquisition we have substantially improved the centers by reconfiguring and building new units within

or next to them, which has greatly improved the rents,” he commented.

With the completion of the

Galeria Osowa purchase, the property manager now has seven retail properties in E Blake Berry Poland.

Centrum Krzesiny tentatively scheduled for 2013 Poznaƒ-based firms Easy Project and Domlex have announced that their Centrum Krzesiny retail project could be opened in 2013. The shopping center, comprising some 75,000 sqm of GLA and an ample 4,000+ parking spaces, will be built on a plot located on the

outskirts of Poznaƒ, along the A2 motorway.

“This is not the city center, therefore the architecture does not have to be grandiose. We assume that Centrum Krzesiny will be a single-storey but elegant building,” said Marek Pisanko from Easy Project.

However, while the two companies have prepared a design for the project and are currently preparing the land at the site, they are still searching for an investor. The firms represent the 17 owners of plots on which the planned center will be located. According to

their marketing materials, the sale would be a “zero percent” offer, with the land owners paying the intermediaries’ fee.

The firms’ plans are ultimately dependent on finding an investor, however.

With or without Centrum Krzesiny, Poznaƒ’s retail offer

is growing quickly. The city already boasts an M1 center and Galeria Malta, the latter of which opened in 2009. Another major scheme, ¸acina, is currently being developed near the city’s Rondo Rataje, with its delivery scheduled for 2014.

Katarzyna Piasecka

13

Polish roads in disrepair

Portfolio sale

The fund manager now has seven retail properties in Poland

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The number of people killed in car accidents in Poland is double that elsewhere in the EU. A new report by the Supreme Chamber of Control (NIK) states this is mainly due to the poor condition of Poland’s roads. The percentage of quality roads in the public system is only about 0.5%, according to the report. In other EU countries such conditions would have removed the roads from public use, but not in Poland.

According to NIK, this is mainly because about 50% of Polish roads are in disrepair and cannot be closed without immediately replacing them with new ones.

Mobile offices At the end of 2011, there will be over one billion mobile professionals in the world, 20% more than in 2005, reports Dziennik – Gazeta Prawna. In the future 30-40% of big corporations may rely on mobile offices. In Poland, as many as 10% of offices operate in mobile mode. ●

LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

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King Sturge manages Ferio

Mokowska Square opening

King Sturge has been appointed property manager of the Ferio shopping center in Legnica, Lower Silesia voivodship. The mall opened in March 2007 and comprises 18,000 sqm of space, with major tenants including Tesco, Media Markt, and Empik.

In Poland, King Sturge currently manages a portfolio of 45 projects whose total leasable area amounts to almost 500,000 sqm.

Industrial space developer ProLogis has signed a lease agreement for 6,300 sqm of space in its warehouse ProLogis Park Szczecin with ASIA, a distributor of decorative ceramic products supplied by Pil & Rotting Sverige AB. “We want to improve distribution efficiency in Poland and enter the German market,” said Andrzej Karbownik, managing director for ASIA. The transaction was facilitated by real estate agency Jartom. ●

COURTESY OF MEDIADEM COMMUNICATION

ASIA in ProLogis Park

Tenants are now moving into Mokotowska Square Yareal Polska will soon open its Mokotowska Square office and retail facility in central Warsaw. Construction work on the project, which started at the end of 2009 and

involved the revitalization of the former Metalexport headquarters building on ul.

Mokotowska, has just been completed. The first tenants are already moving into the

Property-related stocks Security

Closing price on May 19

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

100.00

-2.91

84.55

109.20

5.26

25,530,098

2,553.01

CELTIC

21.00

12.30

17.00

60.55

N/A

34,068,252

715.43

DOMDEV

46.95

-0.11

38.52

52.00

-4.77

24,560,222

1,153.10

ECHO ELBUDOWA

5.15

1.58

4.10

5.40

24.10

420,000,000

2,163.00

156.90

-4.62

150.00

188.40

-7.16

4,747,608

744.90

ENERGOPLD

3.99

0.25

3.57

4.31

-0.25

70,972,001

283.18

ERBUD

29.70

-9.89

28.20

61.00

-43.96

12,602,711

374.30

GANT

13.38

-2.34

12.98

23.38

-38.34

20,499,953

274.29

GTC

18.80

-6,47

17.63

24.98

-17.18

219,372,990

4,124.21

HBPOLSKA

2.16

3.85

2.08

3.90

-34.55

210,558,445

454.81

JWCONSTR

15.11

-1.24

13.50

18.69

-2.07

54,073,280

817.05

LCCORP

1.50

-1.32

1.41

1.72

5.63

447,558,311

671.34

MARVIPOL

7.49

-7.76

7.40

16.50

-54.33

36,923,400

276.56

MIRBUD

3.95

-2.95

2.82

4.75

41.58

75,000,000

296.25

MOSTALWAR

34.00

-9.81

33.00

72.55

-48.48

20,000,000

680.00

MOSTALZAB

2.59

0.39

2.54

4.14

-32.02

149,130,538

386.25

ORCOGROUP

36.94

-3.30

19.00

40.00

36.81

14,053,866

519.15

PBG

142.00

-2.74

135.80

252.00

-31.40

14,295,000

2,029.89

PLAZACNTR

5.15

3.41

3.70

5.59

5.10

292,647,720

1,507.14

POLAQUA

17.40

-4.66

16.00

20.60

3.88

27,500,100

478.50

POLIMEXMS

3.09

0.00

2.91

4.84

-28.97

521,154,076

1,610.37

POLNORD

27.88

-9.10

27.70

39.41

-24.79

22,389,268

624.21

RANKPROGR

12.92

-1.15

9.59

13.60

N/A

37,145,050

479.91

ROBYG

1.79

-12.68

1.70

2.13

N/A

257,390,000

460.73

RONSON

1.45

-3.97

1.36

1.81

-13.17

272,360,000

394.92

TRAKCJA

2.71

-18.86

2.49

4.97

-29.43

232,105,480

629.01

ULMA

81.05

-6.84

70.00

88.00

0.19

5,255,632

425.97

UNIBEP

6.56

-4.23

6.38

10.30

-20.96

33,927,184

222.56

WARIMPEX

9.96

-2.16

7.64

10.89

22.51

54,000,000

537.84

ZUE

11.62

-7.04

11.49

15.14

N/A

22,000,000

255.64

seven-storey building.

Mokotowska Square offers 8,645 sqm of office and 1,286 sqm of retail GLA, respectively. Yareal has already signed lease agreements and letters of intent concerning 65 percent of the building’s office area. Tenants in the scheme’s retail component, commercialization of which has already ended, will include Escada, Marc Cain, Chiara and Le Chic.

“Mokotowska Square is another example of the success and farsighted strategy of our company in spite of the difficult crisis time. We started the project at a time when other investors were holding back their projects,” Eric Dapoigny, president of Yareal Polska’s management board, said. He added that his firm had financed the scheme exclusively with its own funds.

Mokotowska Square was designed by APA Markowski, and Rd Bud is the general contractor of the project.

The scheme is not the first office facility delivered by Yareal in Poland; the company previously developed the Renaissance building in downtown Warsaw and the Cristal Park office investment in the capital’s Ochota district.

Adam Zdrodowski

MAY 23-29, 2011

PPG to develop class-A office building in Poznaƒ Platinum Properties Group (PPG), a NewConnect-listed developer, has completed the purchase of a 0.5 ha plot in Poznaƒ. The deal was valued at z∏.15.4 million.

PPG plans to build an office building with about 10,000 sqm of GLA at the site.

“The planned office building is our answer to the need for modern business space in the Poznaƒ market. We expect to deliver a class-A edifice which will also be attractive in terms of cost for potential tenants,” Gustaw Groth, deputy president of PPG, said in a statement.

The building will be located on ul. Obornicka, a major transport artery which leads

northwest out of the city. Neither construction start nor delivery dates have yet been announced.

Platinum Properties Group comprises a number of subsidiaries, such as developer Platinum Elements, sales intermediary My Square and financing unit Platinum Hypo. It is currently developing the Rezydencja Naruszewicza luxury apartment building in Warsaw as well as the 600,000-700,000 sqm Svetly Dali residential-commercial project, which is situated near Moscow.

The company intends to move from NewConnect to the Warsaw Stock Exchange’s main floor in Q4.

EBB

COURTESY OF PPG

14

PPG is also developing the Rezydencja Naruszewicza project in Warsaw

who’s news?

Gerry Bryne has been appointed country head for Santander Group’s operations in Poland and chairman of the supervisory board of the Spanish financial group’s recently acquired subsidiary, BZ WBK Group. Mr Bryne had been deputy chairman of BZ WBK’s supervisory board since 2001. He was formerly managing director of the Central Eastern Europe division of AIB Group, BZ WBK’s former parent. Prior to moving to Poland in 2001, Mr Bryne held a wide range of executive and managerial posts in the AIB Group. He is a graduate of Harvard Business School, the Irish Management Institute and the Institute of Bankers in Ireland.

Marta Busłajew has become client service manager at commercial real estate services firm Colliers International. She moved to the newly created position from her previous role as head of marketing. Ms Bus∏ajew joined Colliers in 2006 as marketing manager, having earlier worked for Valkea Media (publisher of Warsaw Business Journal). She has a background in IT, a university degree and a professional diploma in marketing accredited by the Chartered Institute of Marketing.

Paweł Halwa has been hired by Central European law firm Schoenherr as a local partner for its Warsaw office. He will be part of the corporate/M&A practice, focusing particularly on M&A and equity capital market transactions. He most recently worked at the Warsaw office of Salans.

Michael Hudspeth has been appointed the new head of coffee brand Starbucks for the CEE market and will be based in Wroc∏aw. He will be responsible for 26 outlets in Poland, the Czech Republic and Hungary, as well as for the company’s further development in these markets. Mr Hudspeth has been with Starbucks for around three years, since the firm purchased the Applebee’s chain in the US. He had previously worked for the restaurant chain for 16 years.

Katarzyna Terlecka will join the Warsaw office of Central European law firm Schoenherr as a partner on June 1. She most recently worked at the Warsaw office of Allen & Overy, where she focused on local and cross-border M&A and joint venture transactions. Ms Terlecka started her legal career at the Warsaw office of Clifford Chance.

Michał Ptaszyński is the new land and development manager at ProLogis in Poland. His responsibilities include finding new investment opportunities through the acquisition or sale of land or existing ProLogis projects. Mr Ptaszyƒski is a graduate of the Academy of Agriculture and Technology in Olsztyn (now the University of Warmia and Mazury). He is a licensed professional facility manager and a certified commercial investment member. ●

If your company has recently appointed any new senior managers, we’d like to know about it.

Please send submissions to: appointments@wbj.pl

MAY 23-29, 2011

LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

www.wbj.pl

15

Investment land

The plot thickens Poland’s investment-land sector has seen a rebound in recent months, with a growing number of developers looking for plots on which to build new housing and commercial schemes. Several large deals have recently been announced in Warsaw and experts predict more transactions will be finalized in the country’s major cities by the end of the year.

“It can certainly be said that the number of investment land deals in Warsaw has recently increased,” said Krzysztof Jarocki, associate director of the valuation department at King Sturge Poland. He added that mid-2010 had been a turning point; since then the number of transactions has grown steadily.

So who’s buying?

Two of Poland’s largest residential developers, JW Construction and Dom Development, have recently signed preliminary purchase agreements for sizable plots of land in the capital, valued at approximately z∏.174 million and z∏.168 million, respectively. For its part, a subsidiary of the Mint of Poland has just bought plots in Warsaw worth a total of z∏.144 million from car producer FSO. According to Daniel Puchalski, investment land department director at Colliers International Poland, many more transactions, particularly

SHUTTERSTOCK

Developers are increasingly interested in land opportunities in major Polish cities

Investment plots in downtown Warsaw are fetching high prices in the residential market, are expected to be signed by the end of this year.

“There are currently more than 40 companies which are actively looking for plots and have their own funds for them.

There is a chance that the total sum spent on land purchases this year will exceed z∏.1 billion,” Mr Puchalski said.

He added that his own company is now involved in advanced (due diligence under way) investment processes concerning a total of nine plots in Gdaƒsk, Szczecin, Warsaw

and Wroc∏aw, whose combined value amounts to some z∏.280 million. Last year Colliers brokered land purchase deals worth a total of more than z∏.200 million.

Tomasz Puch, national director of capital markets at Jones Lang LaSalle Poland, said his own firm is now involved in the sale of a large piece of land in Wroc∏aw for a residential-office development and a plot in Warsaw’s Mokotów district for an office project.

“Both properties have

attracted much interest from investors and we hope they will soon find new owners,” he added Mr Puch stressed that developers are now looking for land for all kinds of projects, but that plots zoned for shopping centers, including those in small cities, and offices, mainly in Warsaw, are attracting the most attention. Residential land, whether in Warsaw or regional cities, is also in high demand.

According to Mr Jarocki of King Sturge Poland, apart

from large players such as Dom Development, JW Construction and Echo Investment, smaller developers as well as private individuals investment-land have also become active in the market.

Higher prices Experts point out that the current situation differs from the increased interest in investment land that occurred during the financial crisis, in that developers are currently looking for ready-to-develop land, covered by zoning plans and

Adam Zdrodowski preferably featuring a building permit.

“Back then, inquiries were mostly about properties with financial or technical problems that had to be overcome,” Colliers International Poland’s Puchalski said.

Land prices are difficult to compare since few transactions were concluded during the financial crisis, noted King Sturge Poland’s Jarocki.

But judging by the deals which were actually signed, he said, it looks like prices have gone up.

In attractive non-central locations in Warsaw, large residential developers currently pay approximately z∏.1,500 per sqm of usable housing space.

Smaller plots acquired by smaller developers in non-central locations, or land located in downtown Warsaw, can be two or even three times as expensive, Mr Jarocki said.

The situation in the office sector is less clear because of a smaller number of deals. In non-central locations in Warsaw, office plots have generally been cheaper than plots designated for residential purposes, although there have also been some commercial land sales characterized by high price levels. However, according to Mr Jarocki, it is hard to define a general price level, since much depends on the features of the particular real estate.

Given the limited supply and growing demand, though, it seems that bargain hunting will be harder than it was a year ago. ●

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LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

Rebranding

First stage of Zielona Dolina gets green light

COURTESY OF QUALIA DEVELOPMENT

PKO BP Inwestycje becomes Qualia

Villa Verde is one of the developer’s latest investments

The move should reduce confusion among consumers PKO BP Inwestycje, the real estate development arm of bank PKO BP, has officially rebranded to Qualia Development.

“The change to the firm’s image is the logical conclusion of the restructuring and modernization program we implemented last year,” Leszek Piotr Na∏´cz, head of Qualia Development’s management board, said in a statement.

However, the decision to completely change the brand

was largely due to consumers’ confusion as to what kind of services the firm offered.

“It happened that clients came to us seeking finance or investment products,” said Tomasz Konarski, Qualia’s deputy president for operations. The new brand and logo were designed to eliminate such confusion.

This is not the first time the company has altered its brand.

Having entered the market in 2000 as PKO Inwestycje, it

MAY 23-29, 2011

added the BP to its name in 2009.

Over its 11 years in the market, the company has turned over 3,300 apartments to clients. Its portfolio of properties currently includes 800 units located in Warsaw, Gdaƒsk and Mi´dzyzdroje.

Qualia Development is currently working on a number of projects, with around 45,000 sqm of residential and service space currently under construction. It has five projects located within the Nowy Wilanów meta-development in Warsaw’s Wilanów district, including Villa Verde (pictured). Qualia is also selling units from the third stage of its Neptun Park investment in Gdaƒsk and its Rezydencja Flotylla in Mi´dzyzdroje, with prices starting at z∏.11,000 and z∏.10,400 per sqm, respectively.

Along with its brand makeover, the firm is also weighing a move to broaden its range of activities in order to become a leader in the residential and apart-hotel sectors. Serious moves in the commercial sector and into new geographical markets in Poland are also possible.

E Blake Berry

COURTESY OF MARTIS CONSULTING

16

JW Construction will soon launch construction on the nearly 1,500-unit development JW Construction Holding, one of Poland’s largest residential developers, has obtained a construction permit for the first phase of its Zielona Dolina housing estate in Warsaw. The investment, which will be situated in the capital’s Bia∏o∏´ka district, will introduce some 1,466 apartments to the city’s housing market.

“Until recently, this district was underestimated, but currently, an increasing number of clients are starting to ap-

preciate it and notice its potential,” said Tomasz Panaba˝ys, vice-chairman at JW Construction Holding.

Work on Zielona Dolina is scheduled to begin at the end of the month. This stage of the project calls for some 600 apartments in 23 three-storey buildings. Units will range in size from one to four rooms. All apartments will have either a loggia, a balcony or a terrace.

Residents will also have parking lots, playgrounds and service

points at their disposal.

Phase one of Zielona Dolina will be delivered by the end of 2012.

JW Construction, a subsidiary of the eponymous holding, will serve as general contractor for the investment. The Warsaw Stock Exchange-listed developer is mainly active in the Warsaw, ¸ódê and Gdynia markets, although it has also been involved in projects abroad.

Katarzyna Piasecka

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MAY 23-29, 2011

LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

www.wbj.pl

Road construction

Retail space

Chinese highway builder runs into trouble

Galeria Goplana gets preferential loan

COVEC has been unable to pay subcontractors for work on the A2 highway

Polish subcontractors are apparently owed z∏.30 million cases this investment will not be specially monitored,” Mr St´pieƒ told TVN24.

“We will be checking on whether the [pledge] from the Chinese side is being fulfilled,” he added.

Subcontractors working on the road are reportedly demanding payment of z∏.30 million in outstanding bills, but are ready to start work within 24 hours of receiving the money.

The Chinese company was

contracted to build nearly 50 km of the 90 km stretch of motorway between ¸ódê and Warsaw in time for the Euro 2012 soccer championships.

Poland’s highways agency, GDDKiA, said the target date will be met.

“There’s no question of a delay, or a postponement of the target date,” GDDKiA spokesman Marcin Hadaj was quoted as saying by Poland’s PAP news agency.

Gareth Price

Special purpose vehicle Goplana MGC Inwest has secured z∏.50 million in preferential bank financing for the Galeria Goplana shopping center in Leszno, Wielkopolskie voivodship.

The loan was granted within the JESSICA (Joint European Support for Sustainable Investment in City Areas) initiative of the European Commission, the European Investment Bank and the Council of Europe Development Bank.

According to Accreo Taxand, which advised the developer in the process of obtaining the funds, the deal is the first of its kind in the European Union. JESSICA is available to revitalizationrelated projects that bring social benefit and are developed by public, public-private and fully private entities.

The Wielkopolska region of Poland is one of the first

COURTESY OF GOPLANA MGC INWEST

The Leszno-based project is the “first of its kind” to get financing through a new EU program

SHUTTERSTOCK

Construction work on two sections of the A2 highway between ¸ódê and Warsaw came to a halt last week when Polish subcontractors working on the road went on strike to protest unreceived payment from Chinese state-owned company China Overseas Engineering Group (COVEC).

Towards the end of the week, COVEC president Fang Yuanming flew to Poland to meet with Deputy Infrastructure Minister Rados∏aw St´pieƒ to try and salvage the contract.

According to a number of media sources, Mr Yuanming signed a statement in which he pledged that COVEC would make payments to subcontractors and suppliers before May 30. He also pledged that the pace of work on the road would increase.

“We have adopted this statement in good faith, which does not mean after the recent

17

JESSICA is helping to realize Galeria Goplana areas in the EU in which the initiative has been implemented.

The Galeria Goplana investment, whose total value is estimated at z∏.200 million, will be built on post-industrial land formerly housing Goplana and Metalplast factories. The three-storey project will comprise 28,000 sqm of GLA, with 120 retail units and points of services as well as entertainment facilities including a cinema, fitness club and bowling alley. Construction is expected

to launch later this year, with opening scheduled for 2013.

Goplana MGC Inwest is owned by MGC Inwest and entrepreneur Dariusz Mi∏ek.

“The decision to site the investment in Leszno was made by us in 2009. Leszno is very attractive for us because of its long-lasting retail tradition in the region; this is why we strongly believe in the city,” Lech Chudy, president of MGC Inwest, said in a statement.

Adam Zdrodowski

18

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

Record cement sales Cement producers could see the greatest period of prosperity for over a decade, reports Puls Biznesu. During the first four months of 2011, producers sold 4.3 million metric tons of cement, 33% more than in the same period last year. In April alone, sales went up by 17.4%, with 1.7 million tons sold.

According to Jan Deja, the director of the Polish Cement Association, in 2011 sales could rise an impressive 10% to a total 17 million tons, a new record.

Prokom confident in Polnord Prokom Investments, which controls 35.4% of developer Polnord, aims to increase its involvement with the company in the near future. Without revealing many details, Ryszard Krauze, the president of Prokom, said “Further investment in Polnord would be a strategic and long-term move.” Mr. Krauze also stated that he believed Polnord possessed good prospects for growth. ●

MAY 23-29, 2011

Warehouses

Luxury retail

The Wroc∏aw market makes a comeback

Gucci coming to Warsaw?

Take-up in Q1 amounted to 40 percent of the 2010 figure Wroc∏aw’s warehouse market is seeing a remarkable recovery following a tepid performance in 2010. Take-up in the first quarter amounted to 34,700 sqm, according to data from Jones Lang LaSalle.

That equates to around 40 percent of take-up seen in 2010.

“After a period of slowdown observed in 2010, the market is getting back on the right track. The combination of new construction, a steadily decreasing vacancy rate and forecast upward pressures on rents confirms the improving business outlook,” said Jan Barbasiewicz, a senior consultant at Jones Lang LaSalle.

Demand in the first quarter was dominated by firms from the light manufacturing sector, which accounted for the largest lease – 20,000 sqm in a BTS building located within the ProLogis Park Wroc∏aw V investment. This park, JLL notes, has the potential to become one of the largest

logistics centers in the country.

Almost 40,000 sqm of new space is currently under construction in Wroc∏aw, twice as much as in the same period last year. However, JLL’s analysis underscores that about 95 percent of that space is already leased out.

The vacancy rate at the end of Q1 amounted to 16.9 percent, slightly higher than the national average and a slight drop on the 2010 figure for Wroc∏aw.

BTS is still the dominant

form of development in the region, but there is apparently potential for other formats, such as small-unit investments.

“Such a storage concept is currently being built by Parkridge. Smaller modules (starting from 1,000 sqm) are also provided by Panattoni.

Moreover, several other developers are analyzing the possibility of delivering small units, which are also more widely available in other regions of Poland,” Mr. Barbasiewicz Thomas Kolasa stated.

Players in the market Presence in the Wroc∏aw warehouse market (in percentage), Q1 2011

6%

3% 3%

Eurologis Tiner

20%

Skalski

68%

Panattoni ProLogis

Source: Jones Lang LaSalle

Sources suggest French luxury retailer Pinault-PrintempsRedoute could be entering the market Luxury department store Wolf Bracka is scheduled to open next month, but, despite intense speculation, the facility’s tenants still remain a mystery.

A number of press sources have speculated that French concern Pinault-PrintempsRedoute, the owner of such luxurious brands as Gucci, Yves Saint Laurent and Alexander McQueen, will be the building’s main tenant.

When contacted, a spokesperson for the investor declined to comment.

If Pinault-Printemps-Redoute is indeed the tenant, its shop would be the first in Poland to sell Gucci, although the brand is not unknown in the Polish market.

Wolf Bracka will offer its clients 21,393 sqm of total usable area, of which 11,838 sqm will constitute commercial

space. The six-storey building, which is currently undergoing final preparations, is located between Al. Jerozolimskie and Pl. Trzech Krzy˝y in the capital’s central district. Apart from exclusive boutiques and a restaurant on the top floor, the facility will house a five-storey underground parking lot for 187 cars.

The investment is being developed by Polish firm Wolf Immobilien, which is owned by Kraków’s Likus family, a clan which also owns luxury hotels, restaurants and grocery stores in Poland. The project was designed by the architectural studio of Stefan Kury∏owicz.

Wolf Bracka is not the only new retail investment being realized at the location. Across Al. Jerozolimskie, investor Centrum Development & Investments plans to renovate and expand former Centralny Dom Towarowy (CDT), informally called the “Smyk building.”

The completion of this project is scheduled for 2012.

Katarzyna Piasecka

MAY 23-29, 2011

LOKALE IMMOBILIA – SPECIAL REAL VIENNA EDITION

Skanska signs new road deals City Apartments sidewalks, along with drainage and utility infrastructure, around the town of Nisko. The deadline for work on this project is in October.

Together the two contracts are worth about z∏.8 million.

Skanska has also signed a contract with the same road authority to complete construction of Ropczyce’s 4.5 km ring road. GDDKiA ended its deal with the previous contractor, Drogbud, last December, following a series of delays.

Work on the project originally began back in June 2008.

“The investment entrusted to our firm consists of the continuation of preparatory and

road work, unfinished or unfulfilled by the previous contractor,” Wies∏aw Sitarz, the project manager, said in a statement. “We have four months from the signing of the contract to finish.” The firm will earn z∏.7.6 million on the deal.

Finally, in B∏onie, a town situated near Warsaw, Skanska has concluded an agreement to widen a 950 meter stretch of voivodship road nr 720 by about three meters. At present the road is seven meters wide.

Skanska has until November to complete the work, for which it will earn z∏.5.8 million.

EBB

Dolcan offers solutions for the disabled Warsaw based developer Dolcan has announced that five of its developments in Warsaw will offer facilities tailored to people with disabilities.

The Rudy Rydz, Konik Polny, Czerwona Jarz´bina, Pasikonik and Kamyk Zielony estates will offer various solutions, including the provision of nearby parking, wide door frames and convenient place-

ment of window frames, electrical sockets and light switches. Special arrangements can also be made for bathrooms.

The company’s director of investment, Eugeniusz Chewsiuk, noted that the implementation of solutions for the disabled is vital at the planning stage rather than just at the finishing stage.

“Families looking after older people often ask about

apartments on the ground floor. They want those being cared for to be able to get out of the house on their own.

But in an apartment block with stairs that’s often impossible,” Mr Chewsiuk said in a statement.

Most of the five developments will see their first units turned over to owners next year.

EBB

phase III launched

COURTESY OF TBT I WSPÓLNICY

The Polish subsidiary of Swedish construction giant Skanska has just signed four new road construction contracts.

In Podkarpackie voivodship, the firm has inked several contracts with the Rzeszów branch of the General Directorate for National Roads and Motorways (GDDKiA). Work on the first, involving the repair of a heavily damaged stretch of road between the towns of ¸aƒcut and Duƒkowice, must be completed by June 2012.

The second contract will see the firm build a number of local roads, bike paths and

The new apartments will be priced from z∏.7,300 per sqm Warsaw Stock Exchange-listed developer Robyg has launched sales of apartments in the third phase of its City Apartments residential project in Warsaw.

The investment is located in a post-industrial neighborhood of the capital’s ˚oliborz district which has welcomed a growing number of housing projects of late as well as, Robyg says, more buyers.

Phase I of City Apartments has already been turned over for use and is almost fully sold.

In the second phase of the project, which is scheduled for completion in Q1 2012, sales exceed 50 percent. Robyg is now adding 216 apartments to

the complex, sized from 44107 sqm and priced from z∏.7,300 per sqm.

“When we decided to build in southern ˚oliborz, the first developer to do so, we were sure that buyers would appreciate our vision. Still, we are positively surprised by the scale of interest in our project, enabling the acceleration of of its realization,” Oscar Kazanelson, president of Robyg’s supervisory board, said in a statement.

He added that in addition to apartments and commercial units, the neighborhood would see the development of public AZ infrastructure.

www.wbj.pl

19

Rondo ONZ subway permit Mazowieckie Voivod Jacek Koz∏owski has signed the construction permit for the Rondo ONZ subway station, part of the central stretch of Warsaw’s second subway line. Italian-TurkishPolish consortium AGP will be the general contractor on the project.

The permit also involves some re-construction work on the infrastructure on the nearby ul. Âwi´tokrzyska and ul. Prosta.

PHN Group seeks boss Poland’s PHN Group, a real estate holding controlled by the Treasury, is hunting for a new president. Józef Banach, chief of the group’s advisory board, told Parkiet the group would be looking until mid-June for applicants to fill the president’s chair and another place on the firm’s board. PHN Group is scheduled to make a bourse debut later this year. The Treasury hopes to make at least z∏.300 million on the deal. ●

20

THE LIST

www.wbj.pl

MAY 23-29, 2011

Construction and real estate

Warehouse Space Developers Ranked by investments completed in 2009

www.bookoflists.pl

Rank

Investments completed (sqm) Company name Address Tel./Fax E-mail Web page

Warehouses: 1st half of 2010 / 2009 /2008 / 2007

Warehouses: Overall

Largest investments recently completed (2009 - 2010): name (location, completion year, usable area - sqm)

Type of warehouses constructed

Services offered

Warehouse construction: For lease / For sale

Number of employees / Year founded

✓ ✓

55 1997

Managing Director for Central & Eastern Europe

Business Unit Director Central Europe

Top local executive / Title

ProLogis ul. Z∏ota 59, 00-120 Warsaw 1 22 218-3600/22 218-3601 info-pl@prologis.com www.prologis.com

WND 364,840 416,945 593,292

2,116,000

ProLogis Park B∏onie II (buildings 1, 2, 3, 5) (B∏onie; 2009; 112,800); ProLogis Park Chorzów (buildings 8, 9); (Chorzów; 2009; 87,000); ProLogis Park Wroc∏aw III (buildings 4, 5) (Wroc∏aw; 2009; 65,400); ProLogis Park Wroc∏aw II (building 1) (Wroc∏aw-Karlowice; 2009; 21600)

SEGRO Poland Sp. z o.o.

Pl. Andersa 5, 61-894 Poznaƒ 2 61 850-5300/61 850-5301 poland@SEGRO.com www.SEGRO.pl

WND 124,000 119,000 156,000

442,000

TP Poznaƒ (building E) (Komorniki; 2009; 22,400); TP Gliwice (buildings DC5, DC4) (Kleszczów; 2009; 57,525); TP Nadarzyn (Nadarzyn; 2009; 50,830)

Class A logistics parks

Class A warehouse construction

✓ -

28 2006

PointPark Properties Sp. z o. o. ul. Z∏ota 59, 00-120 Warszawa 3 22 828-4289/22 222-3522 info@pointparkproperties.com www.pointparkproperties.com

1,080 (1) 40,000 94,000 WND

158,080

PP Poznaƒ DC3 (Poznaƒ, 2011, 23000)

Logistics; light production

BTS and development; facility management and administration

✓ ✓

WND 2007

John Craig Maguire

Europolis Real Estate Asset Management Sp. z o.o. ul. Sienna 39, 00-121 Warsaw 4 22 850-3320/22 850-3321 warsaw@europolis.com www.europolis.com

39,000 32,000 21,960 59,737

251,200

Warehouse and office leasing

✓ ✓

25 2002

Bart∏omiej Hofman

Problem Sp. z o.o. ul. Przasnyska 6B, 01-756 Warsaw 5 22 866-4444/22 866-4440 info@problem.com.pl www.problem.com.pl

8,000 -

WND

Warehouse no. 4 (Pruszków; 2009; 8,900)

High storage

Build-to-suit

✓ ✓

WND 1988

Andrzej Pazera

AIG/Lincoln Polska Sp. z o.o. ul. Grzybowska 5A, 00-132 Warsaw NR 22 564-5000/22 564-5085 office.warsaw@aiglincoln.com.pl www.aiglincoln.com.pl

WND WND 48,000 30,000

WND

WND

WND

WND

WND WND

WND 1997

Brian Patterson

MLP Group SA ul. 3. Maja 8, 05-800 Pruszków NR 22 738-3010/22 738-3019 info@mlp.pl www.mlp.pl

43,500 WND 44,350 44,350

WND

WND

WND

Build-to-suit

✓ ✓

WND 1999

Michael Shapiro

✓ ✓

50 2005

Robert Dobrzycki

Logistics parks; class A warehouses; light industry space; high storage; 5 t/sqm load floors; Land selection and purchase; buildESFR sprinkler systems; ground to-suit; real estate management floor loading docks; 35m deep maneuverable area

Europolis Park B∏onie (building 12) (B∏onie; 2010; 22,000); Europolis Park B∏onie Logistics parks; class A (building 11) (B∏onie; 2010; 17,000); warehouses with freezer area; high Europolis Park Poland Central (building A3) storage (Grabica; 2009; 32,000)

Gas heating system; skylights and smoke vents; ESFR sprinkler Panattoni Park O˝arów (O˝arów; systems; light intensity in 2009/2010; 67800); Panattoni Park accordance the law; clear Class A warehouse leasing; buildMys∏owice (Mys∏owice; 2009; 106,000); height of 10m;with concrete structures; to-suit; real estate management; Panattoni Teslo BTS (Gliwice; 2010; column grid 12m / 22.5m; 24h security; project management 57,000); Panattoni Park Toruƒ jointless floors; 5 t/sqm load floors; (Lubicz/Gr´bocin; 2010; 30,000) mechanical ventilation; steel roof structure

Ben Bannatyne

Magdalena Szulc

Managing Director

Managing Director

General Director

Managing Director

President

Panattoni Europe (Panattoni Poland Sp. z o.o.) ul. Emilii Plater 53, 00-113 Warsaw NR 22 540-7171/22 540-7170 plinfo@panattoni.com www.panattoni.pl

44,000 WND WND WND

1,200,000

Platan Group Sp. z o.o. ul. Poleczki 23, 02-822 Warsaw NR 22 545-0245/22 545-0246 platangroup@platangroup.com.pl www.platangroup.com.pl

WND WND WND WND

WND

WND

Logistics parks; high storage

Logistics; build-to-suit

✓ -

WND 1995

Karolina Kaim

PPMB Promont ul. Metalowa 3, 43-100 Tychy NR 32 720-5300/32 217-0567 promont@promont.eu www.promont.eu

WND WND 29,000 WND

72,700

WND

Logistics parks; freezer area; high storage

Logistics; warehouses leasing

✓ -

100 1996

Sylwester Baradziej

Real Management S.A. ul. Marynarska 11, 02-674 Warsaw NR 22 444-0044/22 444-0795 office@realmanagement.pl www.realmanagement.pl

WND WND 43,500 WND

72,099

Good Point ¸ubna (¸ubna, 2010, 6,699); Good Point Pu∏awska II-phase A (¸ubna 2011, 21,900)

Class A buildings; logistics parks; SBU parks; industrial space; high storage

Build-to-suit; real estate management; property & facility management; project management

✓ ✓

23 202

Jerzy Motz

Torus Sp. z o.o. Sp.k.

Al. Grunwaldzka 413, 80-309 Gdaƒsk NR 58 764-6376/58 764-6311 torus@torus.gda.pl www.torus.gda.pl

1,257 -

WND

WND

According to customer requirements

Built-to-suit

✓ ✓

35 2002

S∏awomir Grajewski

Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was done in November 2010. Number of employees and ownership structure are as of October 2010. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Data for full-year 2010.

Regional Partner

President

President

President

President

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to the List should be sent, on official letterhead, to Warsaw Business Journal, attn.

Joanna Raszka, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (48-22) 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

MARKETS

MAY 23-29, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,597.67 (May 19 close)

S&P500

2,823.12 (May 19 close)

-0.82% (for the week)

FTSE100

1,342.72 (May 19 close)

-1.22% (for the week)

DAX

5,931.31 (May 19 close)

-0.44% (for the week)

Optimism on the WSE

NIKKEI225 7,348.14 (May 19 close)

-0.14% (for the week)

9,625.30 (May 19 close)

-1.24% (for the week)

-1.07% (for the week)

CHANGE: 8.81%

CHANGE: 5.47%

CHANGE: 6.77%

CHANGE: 0.53%

CHANGE: 5.37%

CHANGE: -7.02%

(year to May 19)

(year to May 19)

(year to May 19)

(year to May 19)

(year to May 19)

(year to May 19)

52-week high: 12,928.50

52-week high: 2,887.75

52-week high: 1,370.58

52-week high: 6,105.80

52-week high: 7,600.41

52-week high: 10,891.60

52-week low: 9,596.04

52-week low: 2,061.14

52-week low: 1,010.91

52-week low: 4,790.00

52-week low: 5,607.68

52-week low: 8,227.63

Andrew Nawrocki, Market analyst & trader, gowebtrade.com

48,747.55 (May 19 closure)

WIG20

2,821.46 (May 19 closure)

19.05

18.05

17.05

16.05

13.05

12.05

11.05

10.05

09.05

06.05

05.05

04.05

02.05

19.05

18.05

17.05

16.05

13.05

12.05

11.05

10.05

09.05

2,800

06.05

48,000

05.05

2,840

04.05

48,600 02.05

2,880

29.04

49,200

28.04

2,920

27.04

49,800

26.04

2,960

21.04

50,400

20.04

3,000

19.04

51,000

29.04

52-week low: 2,270.13

28.04

Change year to May 19: 2.42%

27.04

52-week low: 39,109.37

26.04

52-week high: 2,932.62

Change year to May 19: 2.31%

21.04

Change for the week: -0.30%

20.04

52-week high: 50,371.74

19.04

Change for the week: -0.10%

Top 5 WANDALEX ATLANTAPL KREZUS BMPAG FORTE

Closing 3.05 12.99 4.60 5.46 12.20

% change (week) 52-week high 33.19 3.62 26.73 12.99 24.32 4.60 16.67 5.85 15.31 16.09

52-week low 1.82 6.96 1.31 3.06 10.07

Top 5 TAURONPE GETIN PGNIG PGE TVN

Closing 6.58 14.07 4.22 24.50 17.00

% change (week) 4.78 4.15 2.93 1.62 1.49

52-week high 6.89 15.29 4.22 24.50 18.90

52-week low 5.04 9.35 3.24 19.70 15.95

Bottom 5 ABMSOLID CENERGY HERMAN WIELTON TRAKCJA

Closing 10.15 0.51 0.97 3.90 2.71

% change (week) -25.70 -21.54 -20.49 -19.92 -18.86

52-week low 10.15 0.51 0.97 3.90 2.49

Bottom 5 GTC PEKAO ASSECOPOL TPSA PBG

Closing 18.80 162.10 49.06 17.51 142.00

% change (week) -6.47 -5.81 -5.01 -3.15 -2.74

52-week high 24.98 196.50 58.70 18.65 252.00

52-week low 17.63 153.00 49.02 14.10 135.80

52-week high 25.98 1.06 1.62 5.49 4.97

Currency report

An American nightmare

Other indices mWIG40

2,901.92 (May 19 closure)

sWIG80

12,399.50 (May 19 closure)

NewConnect

56.59 (May 19 closure)

WIG-Banki

SOURCE: WSE

19.05

18.05

17.05

16.05

13.05

12.05

11.05

10.05

09.05

06.05

05.05

04.05

02.05

29.04

19.05

18.05

17.05

16.05

13.05

12.05

11.05

10.05

09.05

06.05

05.05

04.05

6,900

02.05

56.0

29.04

7,000 28.04

56.8

27.04

7,100

26.04

57.6

21.04

7,200

20.04

7,300

58.4

19.04

59.2

28.04

52-week low: 5,751.39

27.04

Change year to May 19: 0.64%

26.04

52-week low: 54.52

21.04

52-week high: 7,387.49

Change year to May 19: -10.76%

20.04

Change for the week: 0.16%

19.04

52-week high: 63.41

7,400

After a volatile period, stable movements and horizontal trends on most currency pairs provided a welcome relief last week.

During the middle of the week, the EUR/USD rebounded after two weeks of declines, even reaching $1.4340. Worse-than-expected news from the US housing market and a bad Philadelphia Fed Index reading then pushed the pair down to finish the week at $1.4220.

Moreover, America’s debt issues have led to more discussion about the credibility of the greenback.

The z∏oty remained stable, despite increasing risk aversion worldwide. Members of the rate-setting Monetary Policy Council (RPP) spoke publicly last week, but their statements didn’t provide a clear picture

7,006.40 (May 19 closure)

Change for the week: -1.74%

60.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

19.05

18.05

17.05

16.05

13.05

12.05

11.05

10.05

09.05

06.05

05.05

04.05

02.05

19.05

18.05

17.05

16.05

13.05

12.05

11.05

10.05

09.05

12,300

06.05

2,800

05.05

12,440

04.05

2,840

02.05

12,580

29.04

2,880

28.04

12,720

27.04

2,920

26.04

12,860

21.04

2,960

20.04

13,000

19.04

3,000

29.04

52-week low: 10,980.45

28.04

Change year to May 19: 1.23%

27.04

52-week low: 2,361.69

26.04

52-week high: 12,932.00

Change year to May 19: 3.36%

21.04

Change for the week: -1.49%

20.04

52-week high: 2,987.72

19.04

Change for the week: -0.04%

nies in the construction sector such as GTC and PBG hardest hit with losses of over five percent. The construction sector suffered more losses Wednesday, with slight gains on Thursday and Friday.

The bulls then got another run in the latter half of the week. Oil and energy stocks saw the largest rises, with refiner Orlen and miner KGHM each gaining nearly three percent on Wednesday, and Tauron and Lotos gaining around two percent.

Utility PGE closed at its highest level ever on Thursday, while Tauron closed at a four-month high. For its part, PGNiG closed at its highest level in over two years.

All in all, despite poor housing data in the US, investors in Poland last week tried hard to focus on the good news. ●

It seems the bulls haven’t given up yet, despite the dark shadow of Greece and generally poor economic data released last week on both sides of the Atlantic.

The Polish market usually takes its cue from global market conditions. Last week the situation was different, though, with the overall WIG index closing higher on Monday by half a percent despite sizable decreases throughout Europe and the US. The continued strength of many blue-chip companies gave the Polish market hope early last week. On Monday, Kernel, the Ukrainian listed firm, gained four percent on news that its profits had doubled year-on-year. Despite early gains, Tuesday saw the WIG and the blue-chip WIG20 indices each fall by over 1.5 percent, with compa-

Major indices WIG

21

as to the future direction of monetary tightening.

El˝bieta Chojna-Duch mentioned there is no risk of second-round effects, after the Polish statistical office showed that April wages rose 5.9 percent y/y. On the other hand, Andrzej Bratkowski pointed out that a quick interest rate hike is needed in order to prevent inflation from running out of control. Probably the most reliable statement was made by central bank president, Marek Belka, who said that the RPP would hike interest rates as many times as necessary, but would not do so “in advance.”

The EUR/PLN declined from z∏.3.93 to z∏.3.92 throughout the week, while the usually volatile USD/PLN dropped from z∏.2.79 to z∏.2.76. ●

currency rates 3.3576

3.3661 19.05

20.05

3.3910 18.05

SOURCE: NBP

3.3927 17.05

16.05

3.3936 13.05

0.0983

0.0980 20.05

3.0

3.4408

PLN-100JPY

3.5

19.05

0.0980 18.05

0.0984 17.05

16.05

0.0982 13.05

3.1214

3.1135 20.05

0.09

0.0987

PLN-RUB

0.10

19.05

3.1227 18.05

3.1271 17.05

3.1345 16.05

20.05

19.05

18.05

17.05

16.05

3.0

13.05

3.0965

4.4503

4.4536

4.4571

4.5124

4.4472 13.05

4

PLN-CHF

3.5

2.7377 20.05

2.7570 19.05

2.7501 18.05

2.7707 17.05

2.7817 16.05

2.5

13.05

2.7321

3.9207 20.05

19.05

18.05

17.05

16.05

13.05

3.5

PLN-GBP

5

4.5064

PLN-USD

3.0

3.9205

3.9205

3.9269

3.9135

3.9330

PLN-EUR

4.0

22

ARTS & CULTURE

www.wbj.pl

MAY 23-29, 2011

Charity run

Sunday night fever

Dressed for athletic success

Robin Gibb Sala Kongresowa, PKiN, Pl. Defilad 1 May 29, 6 pm

Rat Race 2011 Pole Mokotowskie May 28, 1 pm Aimed at white-collar workers wanting to get some exercise for a good cause, Rat Race 2011 is not your usual fun run. Competitors must wear business attire (which means suits for men and trousers or skirts for women) to complete a 3.5 km run. All funds raised will be donated to the “First Step Fund” (Fundusz Pierwszy Krok), which helps people with accident-caused back injuries.

For more information log on to www.kongresowa.pl

Picnic

A big (science) day out Freedom is the theme of the 15th Science Picnic – Europe’s biggest outdoor science event.

Organized by Polish Radio

COURTESY OF POLISH RADIO

15th Science Picnic Marsza∏ek Edward RydzÂmig∏y Park May 28, 11 am – 8 pm

and the Copernicus Science Centre, this year’s event will feature interactive displays from over 250 Polish and international organizations, with the aim to make science accessible and fun for all. In 2005 it was honored by the European Commission as one of the top 10 initiatives in the “Science and Society” field and was one of the inspirations behind the creation of the Copernicus Science Centre.

Entrance is free, and demonstrations and experiments will be accompanied by live concerts. ● For more information, log on to www.kopernik.org.pl

Get an Insider’s glimpse at all that Warsaw has to offer with the Warsaw Insider!

To enter, competitors need a four-person team. Prizes are awarded to the best male, female and mixed teams, as

well as to the company with the most entrants. ● For more information log on to www.ratrace.rox.pl

Car fair

Wheels of yesteryear Moto Nostalgia MT Polska, ul. Marsa 56c, May 28-2 This is perhaps the first time in Poland that car lovers will have a chance to see such a large concentration of vintage vehicles up close. The Moto Nostalgia event will allow enthusiasts to share knowledge about their passion, pick up spare parts and see exhibitions by manufacturers. Tickets are priced from z∏.10-20, with free entry for under-8s. ● For more information log onto www.motonostalgia.pl

COURTESY OF MOTO NOSTALGIA

COURTESY OF MAKROCONCERT

Robin Gibb, the younger of the surviving Bee Gees, comes to Warsaw this month. Superstars during the disco era with hits like “Stayin’ Alive” and “How Deep is Your Love,” he and his brothers sold 220 mil-

lion albums worldwide and were inducted in the Rock and Roll Hall of Fame in 1997. The 2003 death of his twin, Maurice, put an end to the band, but Robin continues to perform the Bee Gees’ greatest hits. ●

COURTESY OF THE SUE RYDER FOUNDATION

Concert

Theater

Magic for the whole family “The Magical Toy Shop” Palladium, ul. Z∏ota 9 An imaginary world where a magic toy shop transforms into a fairyland is the setting for this family-friendly mix of theater, music and dance.

The show is an original production, not to be confused with “The Magic Toyshop,” a

late 1960s novel which is not something you’d take your kids, parents, spinster aunts or friends from Utah to see performed on stage. This “Magical Toy Shop” is aimed at all ages and features stars from hit TV show “You can Dance” as well as dancers from the Wielki and Roma theaters.

The premier takes place on May 27, at 7 pm, and regular performances will be held at various dates throughout May and June. Duration: 100 minutes, including the introduction and intermission. ● For more information, log on to www.palladium.art.pl

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl

Warsaw’s most popular Englishllanguage lifestyle lif t l magazine i ffeatures: t : • top shopping reviews and listings • monthly calendar of parties, eventss and exhibitions • latest art, design, fashion and beauty trends • hotel, spa and fitness club reviews • up-to-the-minute resto, bar, cafe and club reviews

Subscribe to the Insider! Contact t t kwilinski@valkea.com k ili ki lk

Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 (Praga) ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A (Praga) www.milano.arts.pl

Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl Królikarnia National Gallery ul. Pu∏awska 113a www.krolikarnia.mnw.art.pl Le Guern Gallery ul. Widok 8, www.leguern.pl Museum of Independence Aleja SolidarnoÊci 62 www.muzeumniepodleglosci.art.pl National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

MAY 23-29, 2011

www.wbj.pl

23

Tech Eye

To the Chromebook, we say ‘Meh’ So...the Chromebook. Google’s first foray into the computing operating system market is finally ready to make its debut. Not since the iPad was first glimpsed has the geekosphere been so a-flutter (and a-Twitter) about a product.

Chromebooks are netbooks designed to offer a third option for people who hate Microsoft yet can’t be bothered with Apple (we’re ignoring computers running Linux, Unix and their ilk as they don’t fall into the “products normal

humans use” category).

Running Google’s Chrome OS, the computers are fully dependent on the internet – they don’t put the “net” in netbook so much as remove everything else.

The main selling points of the Chromebook are these: it boots in eight seconds (some early reports say it’s even faster); it streamlines the online experience; it has a

respectably long (six-eight hour) battery life; and it promises built-in security, meaning there’s no need for anti-virus software.

Acer and Samsung will manufacture the first Chromebooks, which

are due to hit ER F AC SY O shelves in midRTE COU June. The two firms’ products are similar for the most part, each with a 1.66 GHz dual-core Intel Atom N570 processor, two gigs of RAM and a 16 gig SSD hard drive. The Samsung model has a slightly bigger monitor (12.1 in versus Acer’s 11.6 in) and is slightly heavier (3.3 lb versus 3.19 lb).

Both firms are shipping Wi-Fi

only versions, but for now Samsung is alone in rolling out a 3G model.

Prices range from $349 to $499.

Net interested, sorry And Techeye’s take on the Chromebook? First a disclaimer: we’ve not had one in our sweaty hands yet, so take the following with a nano-grain of salt.

Even so, our initial reaction was “meh.” If you’re not familiar with that delightfully succinct expression, imagine the sound of a portly 12year-old expressing complete ambivalence towards a proffered carrot. “Meh.” That more or less sums up our attitude toward the Chromebook, which simply hasn’t seduced us with its naughty netty charms. It’s kind of interesting, but so is our greataunt’s collection of pewter thimbles.

Moreover, the market’s flirtation with netbooks seems to be fading.

Tablets are just as handy and more maneuverable, while notebooks have slimmed down a lot and offer greater utility. Can Google’s onetrick pony successfully compete against these two product categories? We’re not convinced.

The boot-up speed is nice, but the battery life can be matched elsewhere.

And the security claims...well, let’s just say Techeye is a little incredulous.

There’s no

the less popular the operating system is, the safer it will be. If Chromebooks sell like sticking plasters at a hemophiliacs’ convention, expect to see the first security breaches within a year or two. If they sell poorly, pick one up and spend the rest of

installing programs on the Chromeyour book, meaning NG days happily no .exe files are U S M F SA SY O RTE trawling the underbelly involved, which cerCOU of the internet with no fear of tainly neuters a lot of today’s scam techniques. But the infection.

But whatever. We’ll withhold a internet’s criminal element is nothing if not resourceful, so it’s worth final judgment until we get a assuming that someone would find a chance to play with a Chromeway to compromise Chrome OS if book, although we certainly won’t be first in line to pick one up there’s an incentive to do so.

And therein lies the Catch 22 – either. ●

Ever heard a tubby tween express complete ambivalence with a single syllable? Let us know: techeye@wbj.pl

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