WBJ #9 2011

SPECIAL EDITION

• Regional market analyses • Intraco sale scuppered • Green Corner permit

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15-25

VOLUME 17, NUMBER 9 • MARCH 7-13, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

Poland’s balancing act A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

The government must walk the straight and narrow if it wants to avoid a deficit debacle

Commercial real estate developers – office 26-27 WBJ launched the latest edition of its Book of Lists with a grand Gala 8-9

12-13

Techeye takes a bite out of Apple 31

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Industry News . . . . . . . . . . . . . . .6-7 Book of Lists Gala . . . . . . . . . . . .8-9 Business Environment . . . . . . . . .10 Opinion . . . . . . . . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . .12-13 Lokale Immobilia . . . . . . . . . . .15-25 The List . . . . . . . . . . . . . . . . . . .26-27 Listed Firms . . . . . . . . . . . . . . . . . .28 Markets . . . . . . . . . . . . . . . . . . . . . .29 Arts & Culture . . . . . . . . . . . . . . . .30 Last Word . . . . . . . . . . . . . . . . . . . .31

¸UKASZ MAZUREK/WBJ/SHUTTERSTOCK

In this issue

Mr Sikorski goes to Washington

Open Finance to join the Warsaw bourse

The foreign minister made the rounds in the US last week, talking defense and energy 3

Getin's financial advisory, Open Finance, is preparing for an IPO. It could be worth €200 million

28

2

NEWS

www.wbj.pl

Polish economy leads

MARCH 7-13, 2011

Adam Ma∏ysz

IN THE SPOTLIGHT

The EC has revised its forecast for Poland’s 2011 economic growth to 4.1%, with 1.6% forecast for the EU27. Its previous figure for Poland was 3.9%.

However, the EC warns against rising inflation, which is expected to hit 3.3% this year.

Numbers in the News

402,000 new companies were registered in 2010

237,700 companies were removed from the national registry last year

3,000

Euro 2012 tickets on sale

schools have closed over the last five years in Poland

Tickets for the Euro 2012 soccer championship, which Poland is cohosting with Ukraine, went on sale last week.

Ticket prices range from €30-600, depending on the match and seating location.

is the approximate number of teachers, up 13,000 over the last five years

Around 59% of mediumsized and large companies in Poland have plans to acquire foreign companies, daily Puls Biznesu reported, citing research by Grant Thornton. Of the 39 nations studied, only Georgia (69%) had a higher proportion. The average in the study was 34%.

Firms avoid permanent hires The number of permanent employment contracts is falling, Puls Biznesu wrote. At first glance, the situation on the labor market is improving rapidly. However, this growth is mainly associated with jobs created for specific periods of time. The number of workers with fixed-term employment contracts has reached 3.45 million, the highest figure seen since the beginning of Poland’s economic transformation.

French subs made in Poland The Naval Shipyard Gdynia (SMW) will build French submarines for the Polish navy, Wyborcza.pl reported.

SMW has signed an agreement with French defense company DCNS, which will allow the Gdynia Shipyard, owned by the Industrial Development Agency, to produce weapons under license from the French firm. ●

4.13 million tourists visited in 2010, up from 3.86 million in 2009

Quote of the Week COURTESY OF WIKIMEDIA COMMONS

Foreign M&A ambition

665,000

“Strong vigilance is warranted with a view to containing upside risks to price stability.

An increase of interest rates at the next meeting is possible” European Central Bank head Jean-Claude Trichet hints at an upcoming rate hike, setting the markets a-flutter

Adam Ma∏ysz, one of Poland’s best-recognized and most successful athletes, has announced his imminent retirement. Considered one of the best ski jumpers of all time, Mr Ma∏ysz will make the last jump of his professional career on March 26 at a competition in the southern Polish town of Zakopane.

Mr Ma∏ysz announced his decision during an event in Oslo last week. “This is my last season. I thank all my fans for their support. It was them who carried me forward,” Mr Ma∏ysz said. The 33-year old added that he would make a decision later

this spring on his next career move.

Meanwhile, Puls Biznesu reported last week that Mr Ma∏ysz might not be parting ways with the world of sport.

According the paper’s sources, Mr Ma∏ysz, long known for his passion for cars, could take part in the Dakar Rally next year as a member of the RMF Caroline Team.

Mr Ma∏ysz began his career in 1995. Since then he has earned a total of four Olympic medals (three silver and one bronze) and won a total of 39 World Cup events, ultimately taking home four World Cup championships

(three consecutively, a unique feat in the sport).

Adam Ma∏ysz has consistently been one of the most popular athletes in Poland, and was voted the Polish Sports Personality of the Year in 2001, 2002 and 2003. His success in the 2000-2001 season contributed to an unprecedented increase in the popularity of ski jumping in Poland and gave rise to a social phenomenon dubbed by some as “Ma∏yszomania.”

Mr Ma∏ysz was born in 1977 in Wis∏a, Silesia voivodship. He married Izabela Ma∏ysz, née Polok, in 1997. They have one daughter.

Figures in focus A growing issue?

Annual inflation rate (%) in selected EU countries, January 2011 8

7.0

7 6

* provisional

5

4.3*

4.0

4

3.2

3.5

2.7*

3

1.9 2 1 %

Czech Republic

EU27

Slovakia

Poland

Hungary

Bulgaria

Romania

Adam Zdrodowski Source: Eurostat

On WBJ.pl The Book of Lists Gala, up close Log on to WBJ.pl for an inside view of last week's Book of Lists Gala. See pictures of the crowd that gathered to celebrate the launch of the latest edition of Book of Lists, a key source of business intelligence. Also have a look at the winners of the Warsaw Business Journal Awards – these are some of the brightest stars of Poland's business firmament.

DATELINE

March 8-11

MIPIM & MIPIM HORIZONS

14

CENTRAL BANK FIGURES

Event:

Real Estate Event for Professionals.

Location: Cannes, France www.mipim.com/en/homepage

Event:

Poland’s central bank releases current account data for February

9-13

ITB BERLIN

Event:

The world’s leading Travel Trade Show, with 10,000 exhibitors from 180 countries and over 180,000 visitors. Poland is the Official Partner Country.

Location: Messe Berlin, Germany www.itb-berlin.de

18- 21 COSMOPROF Event:

The world’s most important international event in the beauty and cosmetics sector.

Location: Bologna, Italy www.cosmoprof.com/en

22

CENTRAL BANK FIGURES

Event:

Poland’s central bank releases January and February inflation data

Company index ABM Solid ........................................19 Apple ................................................31 Areva ................................................11 Autorska Pracownia Architektoniczna Hanny i Marka Bieƒkowskich ..........25 B’ART Pracownia Architektury, Urbanistyki i Wn´trz Bart∏omiej Bie∏yszew ......................25 Bank Zachodni WBK ........................29 Bergold Holding ..............................17 Biedecki, Biedecki, Olejnik ..............16 bmp AG ............................................29 Bogdanka ........................................28 Bose International Planning and Architecture ..............17 Bouygues Immobilier Polska ..........15 Brandscope ........................................9 C&A ..................................................17 Camaieu ..........................................20 Carpisa ............................................20 CB Richard Ellis ........................15, 16 CEDC ................................................29 CEE Property Group ........................21 CEZ ..................................................29 Claire ................................................20 CMP Group ......................................17 Cognor ..............................................29 Colliers International Poland ..........21 Colliers International Slovakia ........23 Criterion............................................30 Cushman & Wakefield ....................20 Cyfrowy Polsat..................................29 DCNS ..................................................2 Debenhams ......................................20 Decathlon ........................................18 Deichmann ......................................25 Dekra Construction Management..............17 Deloitte Central Europe ..................19 Develop Investment..........................17 Diesel................................................20 Dipservice ........................................17 DM BZ WBK......................................28 DolnoÊlàskie Surowce Skalne ........28 Dom Development......................21, 25 Dongseo Display ..............................21 E.ON....................................................8

Echo Investment ........................17, 21 EDF ..................................................11 Emporio Armani ..............................18 Erbud ................................................25 Fajans Âcis∏o & Partnerzy “Arcus”..25 Fasing ..............................................29 Gant Development............................21 Gaudí ................................................20 Gazprom Neft ..................................28 GE Hitachi ........................................11 GE Hitachi Nuclear Energy................6 Getin Bank..........................................8 Getin Holding................................8, 28 Ghelamco ........................................15 Globe Trade Centre ....................21, 29 Grant Thornton ..................................2 Griffin Topco ....................................17 Gucci ................................................18 H&M..................................................18 Heinz ................................................31 Heitman International......................21 Helios..........................................17, 29 Hines ................................................19 Home Broker....................................28 HSBC ................................................10 IK Development................................21 IKEA ................................................8, 9 Inditex ..............................................18 Intraco ..............................................17 Irena..................................................29 Jones Lang LaSalle ........................18 JW Construction Holding ..........17, 21 Keen Property Partners Retail ........25 KGHM......................................7, 28, 29 King Sturge ................................21, 22 Kruk ..................................................21 KWW ................................................17 LIST ..................................................20 Lotos ................................................28 Markit ..............................................10 Marma ..............................................17 Marvipol............................................21 Miastoprojekt....................................21 MW Projekt Biuro Projektowe ........15 MW Trade....................................28, 29 New World Resources ....................28 New Yorker ......................................17

Noble Bank ........................................8 Nordea Bank ....................................10 Norton Rose ....................................19 Nurol Holding ..................................28 OAO AB KubanBank ........................28 Open Finance ..................................28 Panattoni Development Company....................21 PGE ....................................................6 PKN Orlen ........................................29 PKO BP ........................................3, 29 Polimex-Mostostal ..........................29 Polnord ............................................21 PZU ..................................................29 Radius Projekt..................................17 Reserved ..........................................25 Retail Concept..................................25 Rodamco Europe Sp. z o.o., ..............9 Rosneft ............................................28 Rossmann ........................................17 Ryanair ..............................................7 Sadovaya ..........................................28 Salans ..............................................21 SGI Baltis..........................................25 Skanska ......................................15, 19 Skanska Property Poland ................15 Skotan ..............................................29 Starbucks ........................................20 Stefanel ............................................20 Takko ................................................25 Techmex............................................29 Tesco ................................................23 TNK BP ............................................28 Ton-Agro ..........................................17 Toshiba..............................................11 TP......................................................15 TPSA ................................................29 Unibail-Rodamco ..............................8 UniCredit ..........................................21 VGP ............................................21, 22 Wasko ..............................................29 Westinghouse ..................................11 Wogorbi Finance Limited ................17 WSE ....................................................8 X-Trade Brokers ..............................12 Zak∏ady Azotowe Pu∏awy ................28 Zak∏ady Chemiczne Police ..............28

NEWS

MARCH 7-13, 2011

www.wbj.pl

3

Polish-US relations

The foreign minister talked energy, security during his visit to the United States During his six-day visit to the United States, Polish Foreign Minister Rados∏aw Sikorski met with American officials to discuss strategic defense and energy goals, among other topics.

Secretary of State Hillary Clinton, during a meeting with Mr Sikorski, confirmed the US’s plan to establish a permanent air division and deploy missile defenses in Poland.

Other talking points included the war in Afghanistan, NATO’s plans regarding the current unrest in North Africa and Poland’s relations with its key European partners.

Recognizing Poland’s growing international stature and close relationship with the US, Ms Clinton stated that she “appreciate[s] Poland’s opinion not only on matters concerning Poland and Europe, but also those relating to glob-

al issues.”

Poland’s foreign minster, for his part, pledged support for the US’s efforts on global security issues, saying that America could rely on Poland to help achieve security goals.

A green agreement Mr Sikorski also held talks with Deputy Secretary of Energy Daniel B. Poneman on mutual cooperation in green

“[The US] appreciates Poland’s opinion not only on matters concerning Poland and Europe” and sustainable energy projects. Representatives of both countries signed a memorandum designed to facilitate Polish-American cooperation on technologies related to nuclear energy and the search for shale gas.

According to Poland’s nuclear energy plan, the country’s first reactor will come

online in 2020. Poland therefore needs to decide on a technology for the power plant in the near future, and the US is one of several nations interested in supplying it.

The foreign minister admitted that the newly inked agreement is simply a statement of intent, but noted that it could bring benefits.

“We hope that [green energy] is a field in which we can tighten cooperation,” he explained.

Also on the agenda Mr Sikorski also delivered two lectures during his visit to the US. The first, given at Harvard University, concerned the significance of European security to Poland and the rest of the world. Mr Sikorski emphasized that security and democracy are desired by troubled countries such as Egypt, Libya and Belarus.

Later, at the Center for American Progress in Washington, he gave a speech on Polish security and the coun-

X COURTESY OF US DEPARTMENT OF STATE/MICHAEL GROSS

Sikorski on whirlwind US tour

Rados∏aw Sikorski and Hillary Clinton discussed some weighty security issues in Washington DC try’s relationship with Russia.

He highlighted the fact that Russia is working as a strong partner with Europe and the US to stabilize Afghanistan and North Africa and stressed

that maintaining good relations with Russia also lies in Poland’s interest.

During his visit, Foreign Minister Sikorski also reaffirmed President Komorows-

ki’s invitation for President Obama to attend a summit of Central and Eastern European heads of state, scheduled to be held in Warsaw in May. Natalia Kazik

Belarus and Libya

A Swedish think-tank renowned for its work on the arms trade has established a connection between Belarus, often dubbed Europe’s last dictatorship, and Libya.

On February 15, a flight from Belarus’ Baranovichi military airbase – which holds a major cache of arms and light weapons left over from the Cold War – landed in southern Libya, Hugh Griffiths, from the Stockholm International Peace Research Institute (SPIRI) think-tank, told Radio Sweden last week.

Mr Griffiths also said that links between Libya and Belarus could be helpful for Gaddafi and his family if they have to flee the country. “[Belarusian President Alexander Lukashenko] hasn’t distanced himself from Gaddafi and he would certainly welcome members of his entourage,” Radio Sweden quoted him as saying. He added

COURTESY OF WIKIMEDIA COMMONS

Rostowski: Budget Gaddafi getting guns from Lukashenko? deficit won’t exceed Keen-eyed observers EU limits in 2012 seem to think so

Mr Gaddafi is a man under pressure that Belarusian authorities could also manage to convert large quantities of Gaddafi’s gold and diamonds into cash.

Options are indeed dwindling for the Libyan dictator, who is refusing to even acknowledge that Libyans are protesting against his regime.

He even claimed that the Libyan people “love him,” in a

recent BBC interview.

The UN and the EU have imposed arms embargoes on Libya, as well as travel bans and asset freezes on Gaddafi’s family and certain government officials.

US, EU, French and UK diplomats have said that they would not rule out military action against Libya, possibly

through NATO. “Nothing is off the table,” as long as civilians continue to be killed by the government was the consensus, reported the EU Observer.

As of last Thursday, the UN estimated that the number of dead and wounded in Libya was in the thousands, with the number of refugees reaching about Alice Trudelle 180,000.

Poland will meet the goal of cutting the budget deficit to three percent of GDP by 2012, Polish Finance Minister Jacek Rostowski wrote in a letter to European Commissioner for Economic and Financial Affairs Olli Rehn.

In his outline, Minister Rostowski explained that significant cuts in public spending and economic growth will decrease the deficit.

Specifically, the reduction of funeral payments, a decrease in spending on counteracting unemployment and cuts in transfers to Open Pension Funds (OFE) are among the methods listed by the Minister.

According to Mr Rostowski, over the next two years Poland’s public spending will plummet by 4.7 percent of GDP, which will limit the budget deficit to 3.2 percent of GDP. The remaining 0.2 percentage points over the EU’s three-percent limit should be slashed off

through increased cash inflow from taxes, generated through quicker economic growth.

Yet Ryszard Petru, head of bank PKO BP’s analysis, investor relations and strategy department, expressed caution in evaluating Mr Rostowski’s plan. “Although the general direction of cutting spending is good, the result yielded by the plan edges the three percent limit, giving no reserve.” Mr Petru explained that the plan is based on restricting deficit growth and said that, “although it is not a bad solution, it would be better to limit unnecessary spending.”

The Polish Finance Ministry’s plan is now awaiting feedback from Commissioner Rehn. If he deems the reform plan as unlikely to rein in the budget deficit, Poland will face sanctions for exceeding the limit.

Natalia Kazik

Investing in Poland 2011 is available now!

presents

We have also launched a new website for investors!

For investment news and analysis, visit: www.investinginpoland.wbj.pl

To order a print copy or CD-ROM version of the publication, e-mail kwilinski@valkea.com or call +48 (22) 639 85 67 ext. 208

4

NEWS

www.wbj.pl

Freedom of the press

MARCH 7-13, 2011

Parliamentary elections

Mr Tusk and Mr Netanyahu met in Israel in February

Warsaw is the best place to discuss the restitution of Jewish property, apparently The head of the Prime Minister’s Chancellery, Tomasz Arabski, prevented an “inconvenient” question being asked by a Polish Press Agency (PAP) journalist during Prime Minister Donald Tusk’s recent trip to Israel.

The situation unfolded prior to a press conference in Jerusalem in which Polish PM

Donald Tusk and his Israeli counterpart, Benjamin Netanyahu, took part.

The name of the PAP journalist has not been revealed, but the question concerned the issue of the restitution of Jewish property confiscated during and after WWII. Polsat journalist Tomasz Macha∏a first wrote about the situation on his blog. According to him, Mr Arabski knew the question beforehand and tried to convince the journalist to change it.

Unable to persuade the journalist, Mr Arabski then contacted the president of PAP, Jerzy Paciorkowski, and asked him to prevent the question from being asked.

Mr Arabski has denied contacting the PAP journalist, but he admitted calling Mr Paciorkowski. He claimed to Rzeczpospolita, however, that no pressure was exerted upon PAP’s president.

As for Mr Paciorkowski, he stated that after Arabski’s call, he asked the journalist not to ask the question on the grounds that the best place to discuss such issues was in Warsaw.

Prime Minister Tusk later commented on the issue on TVP, admitting that the situation might have been a little bit awkward. Nevertheless, he declared that journalists could feel safe around him and could ask him about anything.

Mr Macha∏a also revealed on his blog that El˝bieta Jakubiak and Marek Migalski of the political party Poland Comes First (PJN) had demanded that Mr Arabski and Mr Paciorkowski resign following the affair.

Katarzyna Piasecka

had previously suggested, might pose certain difficulties. That date falls shortly before All Saint’s Day, an important holiday in Poland.

Members of the Eastern Partnership initiative, which Poland is spearheading, are due to meet during the first week of October. The added difficulty of organizing elections at the same time makes a October 9 date unlikely.

Early elections would render the debate moot, but there’s little chance of them being called. Thus, many in the Polish

either October 16 or 23 Law and Justice (PiS) will lodge a complaint with Poland’s Constitutional Tribunal concerning the possibility of two-day parliamentary elections this autumn, Mariusz B∏aszczak, head of the party’s parliamentary club, said last week.

In February, President Bronis∏aw Komorowski had publicly discussed the possibility of spreading the election over two days. However, this would cost z∏.50 million more than one-day elections, Mr B∏aszczak said, emphasizing the “dramatic situation” of Poland’s public finances.

Another of PiS’s arguments against a two-day election was that the constitution refers to elections being held on a “day free from work.” This forms the basis of its complaint to the Tribunal, as the party is seeking a literal interpretation of the constitution.

Due to scheduling constraints and the fact that elections are traditionally held on Sundays, the only available dates are October 9, 16, 23 and 30.

PiS has decided that holding elections on October 30, as it

media have posited that the only real choice for elections is between the October 16 and 23 dates.

Breakaway political party Poland Comes First, meanwhile, has suggested holding a referendum at the same time as the elections. The subject?

Whether or not the government’s plan to change the pension system, shuttling paycheck contributions away from open pension funds, should be allowed.

Gareth Price, Katarzyna Piasecka

SHUTTERSTOCK

COURTESY OF FLICKR/THE PRIME MINISTER OF

Polish journalist silenced before PiS opposes two-day elections will probably Tusk-Netanyahu press conference Voters head to the polls on

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INDUSTRY NEWS

www.wbj.pl

MARCH 7-13, 2011

Health care

Poland launches charm offensive

Cosmetic cost concerns COURTESY OF THE POLISH TOURIST ORGANIZATION

Tourism

The country debuts an expensive new promotional campaign this week Poland is the official partner country of this week’s International Tourism Fair in Berlin (ITB), where it will launch a new promotional campaign titled “Move your imagination.”

The country’s presence at the trade show is budgeted at z∏.12 million, and is part of a wider z∏.30 million campaign which debuted last year. The project will wrap up with the

Euro 2012 soccer championship.

A large chunk of the bill in Berlin is devoted to the opening ceremony on March 8, where Poland will put on a 3D multimedia show “telling the story of Poland.” The event combines 3D animation, interactive elements and a live dance show.

Warsaw-based animation company Platige Image designed the campaign and multimedia show. Agnieszka Piechnik, a representative of the firm, declined to comment on the value of her firm’s contract, but admitted that it was

spokesperson at the Polish Tourist Organization.

The organization expects Poland’s presence in Berlin to play a key role in the domestic tourism industry’s recovery from the crisis. This year the Polish tourism industry might also benefit from the fact that Europeans, and in particular Germans – the biggest tourist group for Poland – might decide to travel in Europe rather than to Egypt or Tunisia, for example, said Karol Lipski, the spokesperson for the Polish presence at ITB.

indeed an expensive affair.

“Without giving numbers, I can say that a campaign like the one we have designed is costly, especially the opening ceremony, which is a huge event with a lot of equipment, high technology specialists, not to mention the artists and the crew that made the films,” she commented.

However, touring Germany, France and the UK with the new campaign, which will start after ITB, will probably account for the biggest chunk in the total z∏.30 million budget, said Katarzyna Draba,

Alice Trudelle

New process for issuing visas On April 5, 2011, amendments to the Act on Foreigners will come into force. These changes are another step towards the adjustment of Polish regulations to the Visa Code binding within the European Community.

One of the things changing on April 5 will be the process of issuing decisions regarding a national or Schengen visa.

From then on, the decision to reject or grant a visa will be issued on an official form. Parties objecting to decisions may submit a motion for the Consul to reanalyze the case.

Act limiting barriers for entrepreneurship On February 25, 2011, the Sejm accepted legislation aimed at limiting adminis-

Adam Zdrodowski

IEA calls for more competition

trative barriers for citizens and entrepreneurs. The scope of the legislation is very broad – it would amend more than 90 acts.

Owing to the amendments, it will be possible, among other things, to submit statements instead of presenting certificates during the establishment and conduct of business activity.

At the moment, these certificates serve as publicly issued confirmations of the state of affairs at the business. They are issued by public officials at the request of an interested party. Parties submitting the new statements, meanwhile, will be subject to criminal liability if they give false evidence.

The draft legislation will also limit the obligation to present excerpts and copies of documentation (e.g. documents concerning the representation in companies).

Draft legislation regarding nuclear energy On February 22, 2011, the Council of Ministers accepted draft amendments to the Nuclear Act and the so-called “investment act” which introduce provisions making it possible to build nuclear power plants in Poland.

According to the government, the legislation defines the rules for dividing up orders associated with the construction necessary for the realization of the nuclear project. What is more, the new provisions ensure that society should be informed of all decisions made by the nuclear supervision authorities regarding the state of nuclear power facilities and their use, including all factors and events which may influence nuclear safety and protection against radiation. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

COURTESY OF THE WORLD ECONOMIC FORUM

Contact: Miros∏aw Stefanik ms@pnplaw.pl

The Finance Ministry has proposed changes to rules for rounding the basis for taxation and the tax on income from bank interest (informally known as “Belka’s tax”). These changes will make it impossible to avoid taxation on savings from bank deposits, which will eliminate the currently popular overnight deposits. The tax will be payable irrespective of the type of deposit and the amount of resources gathered on this deposit.

Another change will see the basis for taxation and tax being rounded up. The amounts will be rounded in such a way that figures lower than 50 grosz are omitted and figures equal or exceeding 50 grosz are rounded up to the nearest z∏oty.

This will also affect interest and discounts on securities.

Poland has earned a reputation as one of the most popular medical tourism destinations in Europe. Each year since 2004, when the country joined the European Union, it has welcomed hundreds of thousands of tourists seeking treatment.

According to the Polish Association of Medical Tourism, around 250,000 foreigners underwent cosmetic surgery in Poland in 2010 alone. These patients are lured by high-quality service at competitive prices.

The industry is worried, however, as it looks like it could take a hit from unfavorable changes to tax law.

As of January 1, a 23 percent VAT rate was imposed on cosmetic surgery in Poland, a move that has caused the cost

of services to rise by about the same percentage. Representatives of some clinics which offer cosmetic surgery services complain that they can no longer compete with other CEE and Eastern European countries.

Larger firms haven’t been hit quite as hard. Wojciech Mizerka, financial director at Centrum Medyczne EnelMed, told WBJ that his firm had absorbed part of the burden itself, increasing its prices only slightly.

“Due to this, as well as the fact that aesthetic medical services are targeted at people who are able to bear certain expenses, we haven’t seen any decline in the popularity of our services in this area,” Mr Mizerka said.

Less well-positioned firms aren’t expecting to fare quite as well and some complain that the new regulations are unclear and confusing.

Energy

Legal News

Changes to the tax on savings from bank deposits

Some in the plastic surgery business fear that high VAT could leave a scar

Nobuo Tanaka approves of Poland’s energy privatization plan

The IEA has implored Poland to cut its CO2 emissions The International Energy Agency (IEA) urged Poland last week to reduce its CO2 emissions and liberalize its energy market.

IEA executive director Nobuo Tanaka, however, applauded Poland’s plans to sell z∏.15 billion worth of assets this year. He believes that this will increase competition in an energy market he considers to be dominated by state-owned monopolies.

Mr Tanaka told journalists that Poland was far from achieving full liberalization of its electricity and gas markets. But the country is making progress in other areas, he said. It is, for example, increasing the capacity of its

gas links to Germany and building a new pipeline to the Czech Republic.

At the same time, he noted that complex planning procedures often hinder new investments and identified those same procedures as an obstacle to investment in clean-energy technologies.

Poland currently relies on highly polluting coal for 90 percent of its energy needs.

“Investment decisions made in the energy sector over the coming decade will set Poland’s long-term emissions trajectory,” Mr Tanaka said. “That’s why energy and climate strategies need to be integrated now to meet the dual goals of energy security and environmental sustainability.”

Part of Poland’s current plan to lower emissions

involves diversifying into nuclear power.

Its first nuclear plant is scheduled to come online by around 2020. However, GE Hitachi has warned that Poland must start construction by 2014 at the latest to meet the deadline.

The company is a potential nuclear technology supplier to state-owned Polish utility PGE, which has been charged by the government with overseeing Poland’s nuclear plans.

“We do need to have a site in late 2013 or early 2014 to dig the first shovel, and that would mean the 2020 date is possible with some margin,” Reuters reported Danny Roderick, a senior vice president at GE Hitachi Nuclear Energy, as saying.

Alex Hayes, Gareth Price

INDUSTRY NEWS

MARCH 7-13, 2011

Airlines

COURTESY OF WIKIMEDIA COMMONS

Ryanair and Podkarpackie sign advertising agreement

Ryanair will reportedly earn z∏.24 million to advertise Podkarpackie

One of the low-cost carrier’s planes will get a Podkarpackiethemed makeover Podkarpackie, Poland’s southeastern-most voivodship, has inked a deal with Irish budget air carrier Ryanair to advertise the region. The contract is worth nearly z∏.24 million, according to the Polish Press Agency.

“We will pay Ryanair around z∏.6 million per year. In return, the carrier is obliged to affix Podkarpackie’s logo to the nose of one of its aircraft,” Wies∏aw Bek, the spokesperson of the marshal of Podkarpackie voivodship told The Polish Press Agency (PAP). “Our logo will

also be affixed on luggage lockers and there will be brochures advertising our region on board [Ryanair] planes,” he added.

The three-year agreement came into effect on March 1.

The local authorities launched the advertising tender last year and Ryanair was the only party to submit a bid.

The Irish airline has already been promoting the Podkarpackie voivodship for a few years, Mr Bek emphasized. But the agreement between the parties was limited to advertising the Podkarpackie region on Ryanair’s website. The voivodship’s spending on this advertising totaled slightly more than z∏.1 million per year.

According to unnamed

sources cited by PAP, by expanding its advertising with Ryanair, the voivodship is also giving the low-cost carrier an excuse to continue flying to the Podkarpackie region and to expand its list of flight connections to Jasionka Airport, near Rzeszów.

At present, Ryanair offers flights from Podkarpackie to Birmingham, London and a few other cities. Starting on March 27, Ryanair will launch connections from Jasionka to Girona Airport, near Barcelona.

Ryanair is the largest air carrier servicing the airport in Rzeszów, the capital of the Podkarpackie region.

Natalia Kazik, Andrew Kureth

Mining

KGHM’s Q4 earnings shine on sky-high copper prices The miner now plans to spend z∏.7.5 billion on copper assets in the Americas On the back of soaring metal prices, Polish copper and silver miner KGHM turned in an unconsolidated net profit of z∏.1.324 billion for the fourth quarter of last year. The firm earned z∏.685.4 million in the same quarter a year earlier.

The result bettered the z∏.1.22 billion expected by a Reuters poll of analysts.

The average price of copper rose by 29.9 percent y/y in the fourth quarter, from $6,643 to $8,634 per metric ton. The miner itself predicts an average annual copper price of $8,200 per metric ton this year, which appears to be conservative.

Last week the price of copper

stood at around $9,800 per ton.

Earlier this year KGHM said it wanted to spend around z∏.9.05 billion on equity investments in 2011, with most of this going to copper assets.

The company was more explicit about its designs last week, with chief executive Herbert Wirth telling the Financial Times that his company plans to acquire three copper producers this year – two in Canada and one in South America.

He said KGHM would spend about z∏.7.5 billion on copper producers as part of a plan to achieve annual mine production of 700,000 metric tons.

At the same time, KGHM has been forced to dig deeper in its Polish mines in search of copper, pushing up the cost of

production. “For a mining company, the only way to add value is to buy new assets,” Mr Wirth said.

Mr Wirth also confirmed that KGHM would continue to invest in the energy sector.

The hope, he said, is that energy would account for 30 percent of revenues by 2018, helping KGHM to reduce its reliance on copper. As many analysts had predicted, KGHM plans to invest in Poland’s second-largest utility, state-owned Tauron.

“We have to diversify, and that diversification is energy.

In today’s Poland it is a good idea,” Mr Wirth said.

KGHM hopes to be the largest silver producer in the world by 2018. It currently holds the number-two spot.

Gareth Price

www.wbj.pl

7

8

BOOK OF LISTS GALA

www.wbj.pl

MARCH 7-13, 2011

Book of Lists Gala 2011

Celebrating knowledge and success WBJ celebrated the launch of its 16th edition of Book of Lists with its annual Gala Over 600 guests, including many of the country’s top managers and businesspeople, gathered last week for an evening of networking over great food and drink during Warsaw Business Journal’s annual Book of Lists Gala.

Most importantly, they got their hands on the 2011 edition of Book of Lists, a key source of intelligence on the country’s most important business sectors.

Book of Lists 2011 marks the 16th edition of the publication, and the resource has been expanded to include more companies than ever. It is accompanied by a brand new companion website, Bookoflists.pl, which business-

people can navigate easily to find the information they need.

“It is our best edition yet,” said Andrew Kureth, editorin-chief of Warsaw Business Journal. “As always, it’s a great resource and indicator of what is shaping the Polish market,” he added.

The efforts of Book of List 2011 project coordinator Joanna Raszka and her team were praised, as well as the

dynamism of researchers, journalists, editors, production staff and sales executives that make up the Warsaw Business Journal Group.

“They put blood, sweat and tears into bringing you topquality English-language business-information publications,” said Mr Kureth.

In 2011 the Warsaw Business Journal Group adds to its list of publications a new annual guide to investors interested

in Polish exports, Made in Poland, as well as Financial Minute, a weekly executive update on finance and economics affecting the Polish and global markets and offered as a supplement to daily news digest Poland AM. A second edition of Trendbook Poland, an annual analysis of the most important trends affecting Poland’s business environment, and a third edition of Investing in Poland,

Legal Forum

Land and Mortgage Register Act Amended

Pawe∏ Kuglarz Attorney at Law Pawel.Kuglarz@bblaw.com On February 20, 2011, the act of June 26, 2009, amending the Land and Mortgage Register Act and certain other acts (Amendment) came into force. The amendment to the 1982 Land and Mortgage Register Act (LMRA) will be the largest and the most farreaching amendment in the period of nearly thirty years of the LMRA being in force. The aim of the Amendment is to adjust the mortgage system to the realities of the market and to create a mortgage law that to a greater extent meets the requirements of contemporary economic relations.

The Amendment in question not only changes the previous regulation and introduces new legal institutions but, in fact, redefines the nature of a mortgage, straying away from the previous, basic constructional ideas. The legislator negated the previous construction of mortgage as an accessorial right, strictly linked to a specific, secured claim. As a consequence, one of the basic ideas of the mortgage system, i.e. the principle “one claim – one mortgage” loses its relevance. Moreover, abandoning the principle of “shifting mortgages”, a new property right – the right of priority of the real property collateral – has been created.

Previous regulations According to the previous regulation, only a certain claim, of a certain legal and factual basis (legal relationship), of a defined amount of money, could be subject to a mortgage. As a result, one mortgage could secure only one pecuniary claim.

Two principles resulted from the previous assumption of a supplementary character of a mortgage: expiration of the mortgage following the expiration of the claim secured by it and an absolute lock-up of the secured

claim without the mortgage.

The priority of satisfaction of the mortgage claims used to be established base on the date of the entry into the land and mortgage registry for certain real property, and this principle was absolute. In the case of the expiry of one of the mortgages on a certain real property, a so-called “shifting of mortgages” took place, and as a result mortgages of a later priority of satisfaction were “promoted” in the order of satisfaction, taking over the vacated place after the expired mortgage.

Multiplicity of claims The Amendment of the LMRA provides the possibility – through a single mortgage – to secure multiple claims resulting from different legal relationships to which the same creditor is entitled in relation to the same debtor. Thus, a mortgage is no longer a right related to one particular claim of a certain entity resulting from a certain legal relationship, but it may constitute a security of different claims arisen, for example, in relation to the cooperation of the two entities.

In order to establish a mortgage that secures multiple claims in relation to the same creditor, legal relationships from which these claims result should be specified in the mortgage agreement. At the same time, the mortgage creditor keeps the right to divide such a mortgage, which takes place through a unilateral declaration of will made to the owner of the mortgaged real property, the effectiveness of which is conditioned by an adequate entry in the land and mortgage register.

Extending the boundaries of the freedom of contracting, and allowing the transferability of one of the multiple properties secured by one mortgage without a simultaneous transfer of the mortgage, is also an important new development that constitutes a departure from the previous basic principles.

Multiplicity of creditors Meeting the need reported by the banking industry, among others, the Legislator decided to allow the establishment of one mortgage that secures a number of different creditors’ claims. Although the phrasing of the article 68 2 of the Amendment leaves much to be desired, it is clear that the Legislator’s aim

was to allow the possibility of establishing one mortgage to secure a number of claims of different entities, if these claims arose in relation to financing of a certain undertaking. This mortgage should, as a principle, serve to secure the so-called “syndicated loans” granted by several entities (banking institutions) to a certain company – the debtor – in order to carry out a certain investment.

In order to establish the mortgage in question, a prior agreement (in writing) of the creditors, for which a so-called “mortgage administrator” is appointed, is necessary. The mortgage administrator can be one of the creditors or an outside person. The role of a mortgage administrator is to conclude a mortgage agreement with the debtor and, subsequently, to perform the rights and obligations of a mortgage creditor. What is important is that the mortgage administrator is an indirect representative that performs the rights and obligations of a mortgage creditor in his own name, but on the behalf of all of the creditors. He or she is also subject to disclosure in the land and mortgage registry as mortgage creditor.

Transferability of the priority of satisfaction Another change of fundamental importance to the system of mortgage security is introducing, by the Amendment in question, the possibility for the owner of a real property to dispose of a “vacated mortgage place”.

According to the construction introduced, after one mortgage on a real property has expired, there will be (as there previously was) no automatic “shifting” of the mortgages in the order of priority of satisfaction, but the owner will have a right to transfer the “vacated” place in the “order”. In such a case of performing the disposal in question of a vacated mortgage place, the mortgage creditor whose mortgage expired in the order of satisfaction of the claim from the mortgaged real property will be replaced.

Replacing the previous mortgage creditor in the order of satisfaction is possible only within the boundaries of the expired claim, thus, also only in a limited amount. The buyer cannot, however, worsen the legal situation of the mortgage creditors with a later priority of satisfaction.

BROUGHT TO YOU BY BEITEN BURKHARDT

It is worth noting that the introduced construction indirectly creates a specific property right of a transferable character that can be described as a right of priority of satisfaction. This right arises together with the expiration of one of the mortgages, it is vested to the owner of the real property and may be transferred to another mortgage creditor.

Other changes From the other changes in the LMRA introduced by the Amendment in question, it is worth indicating the following: (i) There will be no automatic expiration of the mortgage together with the expiration of the secured claim. The mortgage will remain in force as a security of other claims subject to security that may result in the future from a certain legal relationship. At the same time, the mortgage may secure a future and conditional claim; (ii) The Amendment subjects specifying the currency of the mortgage amount that by now had to be identical with the currency of the secured claim to freedom of contracting; (iii) The Amendment gives the owner of the real property a right to claim a reduction of the mortgage amount if the mortgage security is excessive. The owner of the mortgaged real property will then be able to claim a limitation of the mortgage also after a partial extinguishment (satisfaction) of the secured claim.

Intertemporal matters Importantly, for regular mortgages which arose before the entry into force of the Amendment, the current regulations will apply.

Thus, abandoning the principle of the accessory character of mortgage and enabling disposing the “right of priority of satisfaction” will relate only to the mortgages established after the entry of the Amendment into force.● BEITEN BURKHARDT P. Daszkowski Sp.k. ul. ks. I. Skorupki 5 00-546 Warsaw Tel: 0048 22 58 37 100 Fax: 0048 22 58 37 109 bblaw-warschau@bblaw.com www.bblaw.com

investment guide to Poland’s regions, are also in the works.

The WBJ Awards Several great prizes were handed out during a business card lottery, and guests enjoyed a performance by singer Rafa∏ Brzozowski.

But the Gala was also an occasion to celebrate companies and businesspeople which, while others watched and waited to see how the recovery would pan out, pushed forward and demonstrated the spirit of capitalism. This year, five WBJ Awards were handed out.

International manufacturer and retailer IKEA won the “Investor of the Year” award, for two investments totaling z∏.865 million. The group’s factory project in the city of Orla was also recognized by the Polish Information and Foreign Investment Agency as the largest foreign direct investment of the year in Poland.

Ultimately the investment is expected to result in the creation of 2,000 jobs.

Poland’s “International Success Story” award went to the Warsaw Stock Exchange.

In 2010, the WSE fortified its reputation as the region’s leading bourse. Its own stock debut, which earned worldwide attention, was one of the most successful IPOs of last year. The award was received by the bourse’s CEO, Ludwik Sobolewski.

German utility E.ON was crowned “Green Investor of the Year” for a new windpower farm near Poznaƒ, which placed the company among the top five windpower-generating firms in Poland.

The Nekla wind park, a €100 million investment, has a capacity of 52.5 MW and will deliver clean energy to up to 45,000 households in the region.

The “Business Leader of the Year” award was given to Leszek Czarnecki, majority owner of Getin Holding. With the merger of Getin Bank and Noble Bank, the launch of micro firm-focused Idea Bank and several takeovers last year, most notably that of Allianz Bank Polska, Mr Czarnecki aggressively moved his business forward.

Finally, Unibail-Rodamco, Europe’s largest commercial real estate company, took home the “Real Estate Investor of the Year” award for its purchase of Warsaw’s Arkadia shopping center. The €400 million transaction was the biggest real estate deal in 2010, and put in the spotlight Polish consumers, the driving force behind Poland’s economic growth.

Alice Trudelle

MARCH 7-13, 2011

BOOK OF LISTS GALA

A guide to Polish business and industry

www.wbj.pl

9

Przewodnik po polskim biznesie i gospodarce

Warsaw Stock Exchange president Ludwik Sobolewski comments on his firm winning the International Success Story award

Nowa La Boheme provided a sumptuous spread

Rafa∏ Brzozowski wowed the audience All companies that ranked at the top of their respective lists received a first-place certificate

The party was packed

The guests enjoyed Enoteka’s selection of wines Launch Event Partners:

WBJ Editor-in-Chief Andrew Kureth congratulates Iwona Szcz´ka, a member of the board at IKEA, on her firm’s Investor of the Year award Lottery Sponsors:

ALL PHOTOS - PIOTR GAMDZYK /WBJ

Piotr Paw∏owski, head of development at Rodamco Europe Sp. z o.o., poses with Andrew Kureth after UnibailRodamco won the Real Estate Investor of the Year award

Wojciech Makaç and Wojciech W´˝yk of Brandscope Media Partners:

10

www.wbj.pl

BUSINESS ENVIRONMENT

MARCH 7-13, 2011

Macroeconomics

Back from the brink

Interest rates left unchanged

Poland's y/y GDP growth (in %)

growth, fueled by domestic demand, rose by 0.2 percentage points compared to the previous quarter. Individual consumption expenditure grew by 2.2 percent y/y, its fastest increase since Q4 2008, while gross capital formation grew by 2.4 percent.

Explaining its rate decision, the RPP wrote that data accompanying the GDP reading had showed investment growth to be on the low side. Other factors impacting its decision included the January rate hike,

lack of evidence for the “sustainability of acceleration in consumer demand,” sustained moderate wage pressure in the corporate sector and a continuing rise in unemployment.

“Therefore, the Council decided to keep the NBP interest rates unchanged,” it wrote.

However, inflation fears remain. In January, CPI inflation rose to 3.8 percent, considerably above the NBP’s inflation target of 2.5 percent.

“There is a 50-percent probability of inflation running in

Source: Central Statistical Office

The central bank’s rate-setting Monetary Policy Council (RPP) left Poland’s main interest rate unmoved at 3.75 percent last week. It considered recent fears of rising inflation to have been offset slightly by sluggish investment and rising unemployment.

The decision had been forecast by a narrow majority of analysts polled by Reuters.

The minority cited Poland’s rising inflation rate and indications that GDP growth is accelerating as the basis for their rate-hike expectations. Basing its decision on similar factors, the RPP hiked the main interest rate in January for the first time since the start of the economic crisis.

But although the Polish economy continued to grow strongly in Q4 2010 – at 4.4 percent y/y – this wasn’t enough to persuade the RPP to raise rates.

The economy’s year-end

5 4 3 2 1 0

Q1

Q2 Q3 2008

Q4

Q1

the range of 2.8-3.7 percent in 2011,” the RPP wrote.

The central bank’s governor, Marek Belka, also said that January’s rate hike should not be seen as a one-off.

“Some members of the

An unconfident start

Manufacturing

PMI for the last eight months

58

56

54

52

11 ry rua

Feb

ry

20

20

11

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ua Jan

cem De

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hit consumers’ wallets.

“In January, firms had reported that the impact of the 1ppt VAT hike and rising

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Au

Jul

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50 0

month drop observed in February, the authors of the monthly PMI report wrote, adding that the data marked the steepest slowdown in new business growth since November 2008.

The data also suggest that export business grew at a faster pace than new domestic business.

Output price inflation, meanwhile, was at its highest level since May 2004 as January’s VAT rise and soaring commodities prices began to

01

Poland’s manufacturing Purchasing Managers Index fell in February for the second consecutive month as new orders rose sluggishly.

PMI came in at a worsethan-expected 53.8 points in February, down from 55.6 points a month earlier.

The PMI report – produced by HSBC and Markit – reflects the percentage of

purchasing managers who report an improvement in operating conditions on the previous month. A score above 50 suggests growing confidence in the business climate, while a figure below 50 suggests growing pessimism.

Poland’s PMI has remained above the 50point-mark for 16 consecutive months.

A slower rise in incoming new orders was the main factor behind the month-on-

e2

Economists blamed the drop on sluggish new orders

60

Jun

Poland’s PMI continues to fall

Q2 Q3 2009

Source: HSBC and Markit’s Purchasing Managers Index

The decision was made despite strong GDP numbers for Q4 2010

7 6

raw materials prices were pushing up their input prices: the jump in February’s output price index points to a

Q4

Q1

Q2 Q3 2010

Q4

Monetary Policy Council saw the January hike as the start of a cycle and I am one of them,” Mr Belka told a news conference, adding that consumer price inflation should cool Gareth Price down in H2.

relatively quick transmission mechanism from input, to output, and eventually, to consumer prices,” Muret Ulgen, chief economist at HSBC, said in the report.

Other economists see February’s PMI figure as yet another indicator that economic growth will slow.

“Going forward, we see an overall loss of momentum for the economy. Despite strong growth in consumer spending in Q4, we see a slowdown in the first half of 2011, due to the VAT hike as of January 1, 2011 and other fiscal measures,” Nordea Bank analysts wrote.

Gareth Price

OPINION

MARCH 7-13, 2011

www.wbj.pl

11

Poland’s nuclear ambitions

P

olish Foreign Minister Radoslaw Sikorski arrived in the United States last week for a six-day visit which included meetings with US Secretary of State Hillary Clinton, Deputy Secretary of Energy Daniel B. Poneman and other officials.

The visit was meant to promote the US-Polish alliance and reaffirm Warsaw’s commitment to a close relationship with Washington after lukewarm visits from Polish President Bronis∏aw Komorowski in December 2010 and Defense Minister Bogdan Klich in October 2010, during which Washington refused to give concrete military commitments to Poland.

Aside from clearing any negative air left by the Komorowski and Klich visits, Sikorski’s stay in the US had practical economic purposes.

Poland is seeking investments and technical expertise in the energy field, specifically in nuclear power and shale gas extraction. US investment in either sector would signal a long-term, concrete commitment to Warsaw from Washington. The sheer size of the investment needed – the estimated construction cost for the two power plants Poland wants to build is €18-21 billion – would be a significant boon to Poland’s economy and stability.

New nuclear During the Cold War, Poland’s plentiful coal deposits – which currently provide 94 percent of Poland’s electricity – meant it had no dire need for nuclear technology.

The Soviet-planned ˚arnowiec nuclear power plant project, 50 km northwest of Gdaƒsk, was ultimately abandoned in 1990 due to a combination of lack of necessity, lingering fears about the Chernobyl disaster and general anti-Soviet sentiment paired with the early environmentalist movements in Poland. With the Polish public convinced that nuclear power plants were landmarks of Soviet power over Iron Curtain satellites, the half-completed ˚arnowiec plant was scrapped after half a billion dollars had been spent on its construction. The plant’s abandoned, incomplete buildings still stand.

The Polish government amended laws in February that would allow nuclear power plants to be constructed in Poland. The change will take

effect July 1. Although opposition to nuclear power in Poland was heavily influenced by opposition to Soviet dominance rather than environmental concerns, public opposition to the idea is not expected to be a problem now. In fact, nuclear power is seen as a tool to maintain freedom from the new Russian yoke of energy supplies, specifically natural gas.

Finding a partner Poland hopes to find a foreign partner by 2013 to help build a 3,000 MW nuclear power plant, probably near the old ˚arnowiec facility. This would be operational in 2020 and a second 3,000 MW plant would be built by 2030.

Poland does not have the technology to do this on its own; few countries in the world do. Polska Grupa Energetyczna (PGE) is the main domestic investor and has opened up public contract

“The choice of who helps Poland in its nuclear development depends on more than who makes the best offer” awards for the two projects.

Polish media have reported that the company selected will take a 49 percent stake in PGE’s nuclear power plant construction consortium.

The contractors under consideration hail from the United States, France, South Korea and Japan. The largest and best-known firms are French firms Areva and EDF, GE Hitachi (a joint venture of General Electric and Hitachi), and Toshiba’s US-based unit Westinghouse. By developing its nuclear industry, Poland would achieve its geopolitical goal of becoming more energy-independent from Russia; but the choice of who helps Poland in its nuclear power plant development depends on more than who makes the best offer.

Choosing Areva would mean close collaboration with a European power, which would be in line with Warsaw’s goal of becoming part of the European elite. France is also known to lobby for its companies vociferously at the government level – lobbying that US firms and government officials might not be willing to do.

Paris could offer additional

political and economic incentives to win the contract for Areva, which suffered a major setback recently when it lost a contract in the United Arab Emirates to a South Korean firm.

The US angle The choice of a US contractor, meanwhile, would reinforce Polish-American ties in the non-military realm, where it has particularly lagged in recent years. In 2009, according to official investment statistics, US foreign direct investment in Poland was less than that of tiny – and bankrupt – Iceland.

While Polish and US military and political cooperation has been sustained, though not to a level of Poland’s liking, private sector links have been completely superseded by investments from wider Europe, especially Germany.

A major push by the US’s nuclear energy sector into Poland would revitalize the private sector links between the two countries and therefore help reinforce their strategic relationship. This would go a long way in reassuring Warsaw that US interests in Poland are long-term and diverse, and that the United States does not just see Poland as a chess board piece in a wider geopolitical game against Moscow.

Poland also has domestic issues to consider, namely, the October parliamentary elections. The ruling Civic Platform party and the opposition both value a strong relationship with Washington.

The Civic Platform governmentis looking to score points and reverse the disappointments of 2010, including the horse-trading between the US and Russia over Poland’s security, and get the US recommitted to Poland ahead of the parliamentary elections. The opposition has latched on to the sense that Warsaw and Washington are drifting apart and has criticized the government for this.

Sikorski’s visit and appeal for energy investments can therefore also be seen as an attempt to deflect criticism that Warsaw is not actively pursuing an alliance with Washington in both strategic and economic terms. ● This edited version of “Poland’s nuclear ambitions” is reprinted with permission of STRATFOR.

Tusk’s dangerous gamble

P

oland’s current struggle to maintain fiscal discipline is well documented. Public debt currently stands at over 50 percent of GDP, which amounts to around z∏.775 billion. Credit rating agency Fitch and the European Commission have warned that Poland needs to start reducing its debt fast or risk losing credibility on financial markets. Some economists even envisage the possibility of a Greek-type scenario occurring in Poland, however improbable that might seem today. The situation is serious, but not dire.

Prime Minister Donald Tusk is well aware of this. And he is equally aware of the various proposals floated by leading economists on how to cut the deficit. Many have called for a reform of KRUS, the separate social security system for farmers which drains around z∏.17 billion from the budget each year. Economists also say Poland could significantly cut public spending, downsize its bureaucracy and reform its pension system. The latter would necessarily involve increasing the retirement age.

Yet apart from a few cosmetic cutbacks in expenditure, Mr Tusk has largely ignored these calls – much to the chagrin of the liberal economic establishment, which strongly backed his party in the 2007

parliamentary elections. It’s hard to imagine that the PM is against the idea of improving Poland’s public finances, so what’s the problem?

Some will point to what appears at first glance to be the obvious reason – that this is an election year, meaning

“No PM since 1989 has lost an election due to economic policy” Mr Tusk will not embark on any reforms that might alienate significant swaths of the electorate before the autumn parliamentary vote. That would be regrettable, but understandable nonetheless.

Is Mr Tusk really justified in believing that Poles would turn their backs on his party, en masse, if he were to enact reforms? There is nothing in modern Polish political history to suggest that this would be the case. No PM since 1989 has lost an election due to economic policy. The voters have always had other reasons for turfing out a government.

Former PM Leszek Miller and his leftist government lost power in 2005 because of numerous corruption scandals involving the party’s politicians. Mr Miller’s predecessor,

EDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL) MANAGING DIRECTOR MONIKA STAWICKA DEPUTY EDITOR

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current European Parliament President Jerzy Buzek, lost the 2001 parliamentary elections partly because of corruption and infighting. The governments of the turbulent 1990s suffered from a myriad of weaknesses.

It’s possible that Mr Tusk is simply playing it safe, unwilling to be the first modern PM to be ejected because of economy policy. Another possible – albeit far-fetched – explanation for his aversion to serious reform is that he’s taken a step to the left in his economic philosophy.

When he describes those who call for spending cuts “ideologues,” maybe he really believes it. When he says his government isn’t willing to enact reforms that will “hurt people,” maybe he really feels that way. Maybe – but not likely.

Regardless of his motivations, Mr Tusk has chosen to walk a risky path, one which involves crossing fingers and hoping for the best. It may work – the strategy has certainly paid off for him before – but it amounts to gambling with the country’s future.

Every politician’s luck runs out sooner or later. Should an international financial shock put a quick end to Mr Tusk’s winning streak, Poland will be held accountable for the (public) debt. ●

AGNIESZKA MICHALIK (AMICHALIK@VALKEA.COM)

KRZYSZTOF WILI¡SKI (DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS SPECIALIST

JOANNA RASZKA (JRASZKA@VALKEA.COM)

12

COVER STORY

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Legal Eye

Early-warning system Judith Gliniecki is a Partner with Wierzbowski Eversheds judith.gliniecki@eversheds.pl I recently bought an amulet for good profits at a temple in Japan. While no replacement for a financial plan, it makes me feel better just to look at it.

It seems to me that the market’s assessment of a company’s or a country’s ability to repay its debts is sometimes based on a similar reaction. Do you feel comfortable when looking at that country or company?

For Greece and Ireland, the answer to that question is definitely negative these days. For Poland, well, I’ll let the economists speculate.

What Poland does have is an early warning system in its legislation to prevent against excessive public debt.

The constitution Starting right at the top, the Polish constitution contains a prohibition on excessive national public debt. The government may not take out loans or grant guarantees in excess of three-fifths of Poland’s gross domestic product. This ratio is the same as the EU limit on public debt.

The Polish constitution defines a general principle. It does not, however, specify the consequences of excessive public debt.

The Public Finances Act These consequences are listed in the Act on Public Finances. By May 31 of each year, the government must publish statistics for the prior year on the amount and ratio to the gross domestic product of, among other things, public debt. The government must take action when certain thresholds are crossed.

If the public debt exceeds 50 percent of gross domestic product, the required action is relatively gentle. In this case, the Council of Ministers may not adopt a new annual budget that has a larger budgetary deficit than

that of the previous year’s budget.

When the public debt exceeds 55 percent, real cuts must be considered. The Act lists a full page of prohibitions, items to review and other fiscal disciplinary requirements. Among other things, the Council of Ministers must consider tax increases.

Some prohibitions relate to the budget, including a requirement to balance the budget or reduce the public debt ratio and an imposition of salary freezes for public employees.

Despite the level of debt, the government may continue investment projects, but with some limitations. Specifically exempted from these limitations, however, are road projects and flood relief. Even with a growing budget deficit, roadwork will continue, hopefully in time for the 2012 European soccer championship.

At 60 percent (which would exceed the constitutional limit), the Act requires crisis action. Among other things, the Council of Ministers must present an austerity program within a month, and local authorities will face budgetary freezes.

Investment projects, however, may continue, as permitted for the 55 percent threshold.

EU requirements In addition to the limitation on the ratio of public debt to gross domestic product, the Treaty on the Functioning of the European Union requires that a country’s overall budget deficit not exceed three percent of its gross domestic product. Poland will be subject to this limitation from 2012. The recent VAT increase and the planned reduction in the amount of pension contributions sent to open pension funds are supposed to help thwart the threat of exceeding this number. ●

MARCH 7-13, 2011

The economy in 2011

A situation far from perfect Anthony Casey Will the economy avoid a Greek tragedy?

Experts say yes, but they’re not crazy about the government’s strategy either Poland is supposed to cut its budget deficit to three percent by the end of 2012, according to the European Commission.

Meanwhile, the latest estimates put it at 6.5 percent of GDP this year and 4.5 percent in 2012.

The EC has expressed concern about the state of Poland’s public finances, and it’s not alone. At the start of 2010, the picture was rosier. Much of Europe still languished in the depths of recession, while Poland was seen as a “green island” of growth.

As 2010 progressed, however, some of the jubilance over the economy’s good fortunes cooled. By mid-summer Professor Krzysztof Rybiƒski of the Warsaw School of Economics was warning that public spending had to be reined in if Poland was to avoid the same financial straits as Greece. The time for austerity, he told Polish Radio in July, had arrived.

In the same month, Prime Minister Donald Tusk’s chief advisor, Micha∏ Boni, publicly discussed the need for disciplined public spending.

National Bank of Poland governor Marek Belka made similar comments a month later.

Neither man mentioned Greece directly, but their comments seemed to allude to trouble in the south.

By November, the rating agency Fitch was warning that the Polish government needed to think carefully about its policy of betting on economic growth rather than instigating austerity measures if it were to keep its “A” rating.

Fast-forward to the opening months of 2011, when Finance Minister Jan VincentRostowski told TOK FM radio

that Poland’s medium and long-term public finances were the “most balanced” in the European Union. In the same month, European Commissioner for Economic and Monetary Affairs Olli Rehn was in Poland to chastise the country for its lack of fiscal prudence.

The government already has some measures in place to curb public spending. These include changes to the pension system, VAT hikes and a limit on discretionary expenditure growth of no more than one percent above inflation.

But economists say these measures won’t go very far towards reducing the actual deficit. So where will the rest of the money come from? And, if Poland can’t scrounge up the rest of the funds, what then?

Could the country follow Greece and Ireland into the abyss of public finance profligacy?

No meltdown expected Przemys∏aw Kwiecieƒ, chief economist with X-Trade Brokers, thinks not.

“In Poland it’s not as bad as it was in Greece, and Ireland was a special case,” he said, citing the huge impact of the

private sector on the collapse of the Irish system.

“The situation in Poland is far from perfect,” added Mr Kwiecieƒ, “But there are two big factors in Poland’s favor.

First, the debt-to-GDP ratio is manageable. Second, there is still plenty of opportunity for growth, both in exports and in the domestic market.”

Given these opportunities for growth in Poland, the country’s current fiscal policy is not as dangerous as it would be in other situations, he posited.

Janusz Grobicki of the Adam Smith Center, a think tank, is also unconvinced that Poland faces any crisis of Greek proportions. “All countries have got problems with public finances, so I think the EU expects cuts from Poland, the same as everywhere else.”

Mr Grobicki’s view on Poland following Greece into crisis was unequivocal.

“Poland is not going to be in this kind of trouble,” he said.

Outside, looking in But from outside Poland, the warnings keep coming. Matteo Napolitano, senior economist and editor for Central and Eastern Europe with The Economist’s Intelligence Unit explained that the opacity of Poland’s public finances made it difficult to assess the issue.

Nevertheless, he described

the country’s situation as “poor,” particularly as other countries which have fared much worse than Poland since 2009 have not seen deficit deteriorations on a similar scale.

“Public finances are worse off than a year ago, simply judging by the fact that the deficit and debt-to-GDP ratios grew in 2010 despite robust GDP growth. By the end of this year, assuming no further international economic or financial catastrophes take place, the deficit-to-GDP ratio will look somewhat better, as the government has taken sufficient measures, Mr Napolitano said.

“However, we forecast that it’ll be a while longer before the debt ratio peaks and starts to fall,” he added Mr Napolitano said there was a “very remote possibility” of Poland going the same way as Greece or Ireland. However, he pointed out that Poland suffered none of the huge public/private debt left over from the borrowing binges that had caused such damage elsewhere.

“Only an international financial shock of significant proportions could alter this view,” he concluded.

The burden of government Other than continuing with its

Poland vs PIIGS Ease of paying taxes, selected EU countries Rank

Tax payments (number/year)

Time to comply (hours/year)

Total tax rate (% commercial profit)

Ireland

7

9

76

26.5%

Spain

71

8

197

56.5%

Portugal

73

8

298

43.3%

Greece

74

10

224

47.2%

Poland

121

29

325

42.3%

Italy

128

15

285

68.6%x

Source: “Paying Taxes 2011” (PricewaterhouseCoopers, World Bank, IFC)

COVER STORY

MARCH 7-13, 2011

13

Warsaw’s greener energy plans Warsaw Mayor Hanna Gronkiewicz-Waltz has announced that street lighting costs will fall next year from z∏.35 million to z∏.27 million thanks to the use of energy-saving lighting.

The city also plans to reduce CO2 emissions by at least 20,000 metric tons with the help of hybrid buses and ecological fuels.

Air freight traffic increases

COURTESY OF G. ROGIÒSKI/CIR, COURTESY OF THE EC

current savings measures (and praying that no international financial shocks occur), how can Poland better its situation?

A shake-up in the government might be a good start.

Przemys∏aw Kwiecieƒ of XTrade Brokers said he would like to see the government make deeper inroads into public spending. But, he said, political factors complicate the matter.

“Personally, yes, I’d love to see more done. But, even if we have a new government at the end of the year – and the most favorable, but unlikely, outcome is that we have a party that can govern alone – they will not really rush to make cuts,” he said.

The Adam Smith Center’s Janusz Grobicki agreed that public spending is governed at present by political motivations. He suggested that the country needs a sea change, with a new political class capable of looking at the bigger picture, restructuring regulations and pushing the Polish economy into the 21st century.

However, regardless of which party is in power, Mr Grobicki said reform was unavoidable if the economy is to remain healthy.

“It’s not a question of whether the government wants to or not. Poland has to do this, because without reforming public expenditure it’s impossible for GDP to

www.wbj.pl

Commissioner Rehn (left) told Finance Minister Rostowski (right) to curb the budget deficit improve at an optimal rate,” he stated.

And he was quite clear on where this reform needs to happen, for example, in policies such as “baby bonuses” and subsidized funeral expenses, where costs are more often than not out of the government’s control.

“The government needs to cut unnecessary expenses, and make spending much more rational than it is now. There needs to be more control over where the money goes,” Mr Grobicki said.

“When the government does have control over exactly how the money is spent and

where, it will be able to stimulate GDP much more quickly,” he added.

Reflecting on the pace of change, Mr Grobicki returned to the realm of politics, stating that until there was “new blood” in the political system, the focus of reform in Poland would remain too narrow.

“It won’t be possible to make serious reforms unless we have a new political class.

The current political class is incapable of reform because it is unwilling to change the regulatory system,” he said.

If that’s the case, maybe the business community should start praying. ●

According to an analysis by the Office of Civil Aviation, non-passenger traffic handled by Polish airports increased significantly in 2010.

Polish airports experienced a turnaround of over 80,000 metric tons of goods, up from 71,000 metric tons the year before. That represents 14% growth y/y. The jump can mainly be attributed to cargo shipments (26.5% growth), Puls Biznesu reported.

Katowice Airport saw the most significant growth (50.8% y/y). ●

A GUIDE TO POLISH EXPORT will hit shelves in April 2011!

Warsaw Business Journal Group, in cooperation with KPMG and the Polish Chamber of Commerce, presents Made in Poland – a guide for importers of Polish products.

Sectors analyzed: • Automotive products • Clothes • Cosmetics • Defense • Food & Agriculture • Furniture • Pharmaceutical market • Yachts

For advertising and promotion opportunities contact: Agnieszka Brejwo: abrejwo@wbj.pl; (+48) 639-85-68, ext. 226

A guide to Polish business and industry

Przewodnik po polskim biznesie i gospodarce

The 2011 edition of book of lists is now available!

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

To order:

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

In conjunction with WBJ’s “Central Europe: Not too Hot, Not too Cold – Advantage or Handicap?” panel at MIPIM, Lokale Immobilia looks at the key markets in the region 16, 18, 20, 22, 23

SPECIAL MIPIM EDITION

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 le 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

Woronicza Qbik next year

•

Office

Green Corner gets its building permit

In this issue Skanska turns a Corner . . . . . .15 Work on TP headquarters . . . .15 Polish market analysis . . . . . . .16 Intraco sale called off . . . . . . . .17

Developer Skanska Property Poland has obtained a building permit for its Green Corner office project in Warsaw. Construction on the scheme, which will be located at the intersection of ul. Ch∏odna and ul. Wronia in the capital’s Wola district, has just been launched and is expected to finish in Q4 2012.

Green Corner will ultimately comprise two adjacent buildings with a total of 27,500 sqm of class-A office and retail space. Whether both structures are completed at the same time will depend on how the commercialization process progresses.

As its name suggests, Green Corner has been designed with energy efficien-

Green Debate . . . . . . . . . . . . . . .19 Hungarian market analysis . . .20 Finance through bonds . . . . . .21 CEEQA award winners . . . . . . .21 Czech market analysis . . . . . . .22 Property-related stocks . . . . . .22 Slovakian market analysis . . . .23 Dom Dev’s Adria . . . . . . . . . . . . .25 SGI Baltis’ new projects . . . . . .25

Green Corner is LEED pre-certified cy and environmental responsibility in mind, and the project is already LEED pre-certified.

The scheme’s green creden-

tials include location (allowing easy access to public transportation), energy and water efficiency as well as the pres-

ence of green areas and parking spaces for bicycles.

“Green Corner will be the first in Warsaw to receive the

US Green Building Council’s Platinum rating for Leadership in Energy and Environmental Design, the highest level of certification,” Grzegorz Strutyƒski, regional director at Skanska Property Poland, said in a statement.

“Energy efficiency and environmental responsibility – that is what it is all about. We wanted to show we could bring it up to the ‘greenest’ of 2011 standards. Occupying a green building is simply a smart business decision as it creates a better, friendlier working environment for employees,” Mr Strutyƒski added.

Green Corner was designed by Micha∏ Nocuƒ and a team from the MW Projekt Biuro Projektowe studio; Skanska is serving as general contractor on the scheme. CB Richard Ellis is the exclusive leasing and marketing agent of the project.

Adam Zdrodowski

Office construction

Bouygues gets to work on TP’s new HQ The developer has launched construction on the telecoms giant’s new premises

Galeria Amber decision . . . . . .17 Romanian market analysis . . .18

COURTESY OF SKANSKA PROPERTY POLAND

Skanska’s latest Warsaw office investment should be ready at the end of 2012

Construction is proceeding apace on Ghelamco’s Woronicza Qbik soft loft residential project in Warsaw. All floors in the four-building complex have already been finished and work on the facades is expected to start this month. Buyers will be able to move into their units next year.

Construction on Woronicza Qbik started in January 2010. Buildings in the complex, located on ul. Woronicza in the Mokotów district, range from six to 11 storeys in height. A total of almost 350 units, including 163 two-floor apartments, will be delivered to the market. Prices start at z∏.8,500 per sqm. ●

MARCH 7-13, 2011, LI 16/09

Developer Bouygues Immobilier Polska has launched construction on an office complex in Warsaw whose sole tenant will be telecommunications company TP. Located on Al. Jerozolimskie in the capital’s Ochota district, the project will provide

43,700 sqm of usable space.

Completion is scheduled for H1 2013.

“The new headquarters of TP Group is a key element of our strategy. It will allow us to put under one roof all the organizational entities which closely cooperate with other, but have to date been accommodated in many different locations,” Maciej Witucki, president of TP Group’s management board, said in a statement.

He added, “This will also mean significantly lower operational costs for us.”

The company’s new headquarters was designed by Polish architect Stanis∏aw Fiszer.

It will be a complex of five connected buildings, each standing six storeys tall.

“This office complex for Orange-TP Group will be one of the most modern office complexes in the capital. Realization of such a

high-tech investment allows us to fully benefit from the rich experience of Bouygues Immobilier in Europe and to introduce solutions successfully used in other big office projects,” Laurent Tirot, general manager of Bouygues Immobilier Polska, stated.

The class-A office complex has been designed to qualify for a BREEAM certification, one of the most popular ecological

certificates in Europe. Factors such as improved roofing, a limited number of floors and high efficiency of heating and heat-recovery systems mean the development will consume approximately 30 percent less energy than a standard class-A building in Warsaw.

The value of Bouygues Immobilier Polska’s contract with TP has not been disclosed.

Adam Zdrodowski

16

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

www.wbj.pl

MARCH 7-13, 2011

Analysis: Poland

Poland in the real estate Champion’s League Patrick O’Gorman is director of CEE capital markets, head of capital markets Poland at CB Richard Ellis Business conditions in Poland remain very attractive in comparison to other European countries. The relatively strong financial situation of companies and banks, combined with only moderate interest rates and consumer price growth, tempered the impact of the financial crisis on the Polish economy.

Massive infrastructure investments, supported by large amounts of EU funds, lessened the consequences of the global economic slowdown to a large extent. Despite the still uncertain economic situation on the global markets, Poland is considered to be one of the top potential destinations for new investment or expansion projects in Europe.

Investment market Property investment turnover in Central and Eastern Europe (CEE) reached €5 billion in 2010. This is almost double the level reached in 2009. Poland has remained the market leader with the highest cross-border purchase activity in CEE. Real estate investment in institutional quality assets in 2010 in Poland reached €1.8

million, recording a 200 percent activity increase in comparison to 2009, when the market reached its trough. Of the 2010 volume, some 51 percent was designated for retail, 35 percent for office and the balance was used to finance logistics transactions.

Large cross-border property investment funds were again the most active players.

Increased investment turnover was backed by stronger occupational fundamentals across all sectors and in a number of markets, with the office sector in the lead.

Higher demand for office space led to annual take-up in Warsaw nearly doubling, to reach 550,000 sqm.

On the supply side, office stock growth in Poland slowed significantly. Last year saw new supply fall 25-30 percent compared to 2008 and 2009.

This slowing trend is likely to result in declining vacancy levels, helping market fundamentals to rebalance. However this is not expected to happen earlier than in 2012.

Retail market The Polish retail market has once again seen a resurgence

in demand after an extremely weak 2009, as evidenced by the €926 million total recorded investment volume in 2010.

Modern shopping center stock in Poland amounted to 8.3 million sqm at the end of last year.

With little over 210 sqm of GLA per 1,000 residents and persistently weak high streets, the modern retail network in Poland remains underdeveloped. After a considerable

translating into increasing rents. Given the market’s continuously increasing retail standards, it also enables investors to maximize the value of their investments through active shopping center management and asset improvements.

Logistics market Poland’s logistics market saw a significant improvement in

“The property market in Poland offers a depth and diversity that no other CEE market can offer” slowdown in the first months of 2010, development activity is gradually reviving and there is currently about 1.27 million sqm of shopping center space under construction, with nearly 800,000 sqm of GLA scheduled for 2011 alone.

The Polish retail market is one of the most attractive sectors for European investors in today’s market. It offers the opportunity to benefit from Poland’s strong economic growth, which is being driven by consumer spending and

sentiment in 2010. Industrial investment activity increased, but more importantly, occupational markets started recovering from high vacancies. In the latter half of 2010, development activity registered a revival in line with regional economic improvements, following an almost non-existent pipeline in early 2010.

Developers have remained cautious and a significant amount of space now under construction across more

mature CEE logistics markets is built-to-suit or considerably pre-leased. However, positive economic results have translated into growing leasing activity in the industrial sector. As logistics demand and industrial output are closely linked to the economic growth that is returning to the region, logistics markets are expected to take off again.

Growth is most likely to remain at more limited, but also at more sustainable, levels than have been observed since 2005.

Total take-up in Poland last year increased by over 50 percent year on year, to almost 1.5 million sqm, with renegotiations accounting for 36 percent. Logistics operators and manufacturers remain the main tenants.

Recovery Last year laid the foundation for a significant recovery in Poland’s real estate market.

Poland is the only market within CEE which is currently really standing out. Both economic and real estate market performance are not only above the country’s CEE peers, but as well above most

EU15 counterparts.

In terms of rental growth, Warsaw is leading the pack in the office market. Rental growth in the retail sector has remained low in general so far in the region, but is expected to pick up in Poland as well on the back of strong retail sales.

The industrial market has recently seen an improvement in effective rents.

These positive trends are, however, in many cases restricted to the prime end of the market and the secondary segment remains struggling.

A substantial compression in yields in 2010 indicates improved sentiment in the property markets, but again, the trend is restricted to the prime end of the market for now.

The property market in Poland offers a depth and diversity that no other CEE market can offer: this includes a depth of investors, properties (there are physically more assets) and property types (varied sectors, differently sized markets). All of this means that the needs of different types of investors (core, core plus, opportunistic) can be accommodated. ●

Legal Forum

How to avoid non-compete double trouble Rados∏aw Biedecki Partner Retaining highly qualified, key staff members is of vital importance to every business. Ethical rules and the general provisions of law (such as the prohibition of competitive activity among management board members) are generally insufficient, which is why various contractual mechanisms are often introduced.

These mechanisms can be qualified as incentive (management by objectives, stock options, premiums and bonuses, etc) or restrictive.

Non-competition agreements and/or clauses belong to the latter class. In the Polish environment, this obligation may be included in several non-compete agreements, each one slightly different even if they are applicable to the same party.

So what happens when a number of such provisions pile up and what if they conflict with each other?

Which one should apply? Is it possible to “escape” a non-compete commitment and/or obligation by paying compensation?

by the employee or former employee has to be proven in front of a court. And this isn’t an easy task.

The basic rules

More questions arise

In the case of an employment situation, the rule is quite simple and clearly regulated: to be bound, both employer and employee have to enter into a separate and written non-competition agreement for the period of employment and/or for an agreed post-employment period.

The party bound by the non-compete obligation is due remuneration (worth at least 25 percent of their last monthly wage).

Should a breach of the noncompete obligation occur, the employer may file a claim for indemnification. This sounds simple, but in practice a direct breach

The more important the employee’s role in the company, the more questions arise: What if the breaching employee is also a member of the management board? What if, in addition, the employee is a shareholder of the company and there is a non-compete clause in the shareholders’ agreement? If in violation of a noncompete clause, upon which legal basis should the employee be liable?

If bound by several different agreements and/or clauses, is the employee liable several times?

Well, the employer could claim damages either upon the mandatory

regulation or seek liability arising from the breach of the non-compete agreement and/or the shareholders’ agreement. However, this doesn’t mean that the claims accumulate – there is just one indemnity. So the employer has to carefully decide upon which basis to raise the claim.

Keeping in mind that the limitation of the employee’s liability may be three months’ salary (if it can’t be proven that the breach was intentional), it might be wise to look after a contractual liability which is not subject to such a limitation. In clear words: seek full indemnity.

In addition, a non-competition agreement or any other non-compete obligation may contain contractual penalties and even collateral thereof (this works in both directions). This definitely gives the parties a higher level of security.

Terminating agreements Nor can the employer save money by simply releasing a former employee from a non-compete obligation: the employer will still have to pay compensation. Therefore, it is highly recommended that you either jointly terminate the non-compete agreement or at least provide precisely defined reasons for the termination.

In the latter case, there is still a risk that the justification for the termination could be subject to interpretation.

This may lead the former employee to consider the termination “just” a release and claim compensation.

Depending on your professional position, you should not necessarily feel comfortable or uncomfortable because you are bound by non-competition commitments. However, you should be extremely careful in structuring and/or terminating them. ●

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market. The content is created in consultation with Warsaw Business Journal's editorial staff.

MARCH 7-13, 2011

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

State-owned real estate firms

COURTESY OF WIKIMEDIA COMMONS

The Treasury Ministry has withdrawn from negotiations concerning the privatization of real estate company Intraco.

“The treasury minister decided to end the process of privatization of Warsaw-based company Intraco through the withdrawal from negotiations without quoting reasons,” reads an official communiqué on the ministry’s website.

Maciej Wewiór, the ministry’s spokesperson, confirmed the information but downplayed the decision to end negotiations. The Treasury simply exercised its right as owner of the firm, he said, declining to elaborate further.

Intraco’s privatization was announced by the ministry on December 3, 2009, with the public tender officially opened last August. The Treasury Ministry wanted to sell an 85 per-

One of Intraco’s assets is a 39-storey office building in downtown Warsaw cent stake in the firm, with the remaining 15 percent intended for Intraco employees.

Poland’s Bergold Holding

Intraco. In January, exclusive negotiations were granted to a consortium comprising Cyprus-based real estate

and JW Construction Holding as well as Luxembourg-based Griffin Topco were among the firms to submit initial bids for

investor Wogorbi Finance Limited and Warsaw’s Radius Projekt.

With the collapse of its first privatization effort, it is possible that Intraco could enter the Warsaw Stock Exchange as part of a larger holding, which would be put together by the Treasury, according to daily Rzeczpospolita’s sources. This could possibly take place this year and the holding would also comprise state-owned firms such as leasing firm Dipservice and agricultural land owner Ton-Agro.

For now, however, the Treasury is unwilling to comment on future efforts to privatize Intraco.

Intraco is an office-space leasing company which has operated in Warsaw for more than 35 years. Its assets include a 107-meter, 39-storey office building in the capital’s central district and a business center in the Bielany district. It is also planning new office and residential investments.

Katarzyna Piasecka

director of the shopping center department at Echo Investment, said in a statement.

Echo Investment owns a 3.5 ha plot at the intersection of ul.

GórnoÊlàska and the Amber Route (Trasa Bursztynowa) in Kalisz, where it intends to build a four-storey mall comprising 33,000 sqm of GLA. The center will house approximately 140 stores and points of service, as well as a Heliosoperated multi-screen cinema, restaurants and cafes.

“We are very happy with the leasing process. We have already signed agreements with key tenants, including C&A, New Yorker and Rossmann. We are also finalizing deals with KappAhl, an electronic goods retailer and a hypermarket,” Mr Materny said.

The design of Galeria Amber was furnished by Bose International Planning and Architecture.

Adam Zdrodowski

COURTESY OF ECHO INVESTMENT

Galeria Amber go-ahead Echo Investment’s Galeria Amber shopping and entertainment center, located in Kalisz, Wielkopolskie voivodship, is one step closer to realization. Kalisz City Hall has issued an environmental impact decision for the project, allowing the developer to apply for a building permit.

“We are planning to apply in March and we will launch construction on the facility right after the permit has been issued,” Marcin Materny,

17

Construction law amendments

Intraco’s privatization called off Sources suggest it and other state-owned firms could now be listed on the stock exchange

www.wbj.pl

Galeria Amber will boast 33,000 sqm of GLA

Amendments to Poland’s construction law, signed on December 10, 2010, came into force at the beginning of March. The amendments redefine the technical standards which new buildings have to meet and govern building locations and the safety equipment which new structures should have. In practice, these changes describe the appropriate placement of lightning rods and other electrical safety equipment, according to experts from law firm KWW. The new regulations only apply to building construction which commenced after March 1, 2011.

Millenium’s shell and core CMP Group and Dekra Construction Management have completed the shell and core of retail, service and recreation center Millenium Hall. Only interior work remains to be finished before the center’s opening, which is scheduled for October 2011. Marma, a Rzeszów-based producer of industrial and construction films, is the investor behind the z∏.450 million project. Millenium Hall’s gross leasable area amounts to 56,612 sqm and, according to the investor’s plans, the first tenants will move in in April. Marma is a subsidiary of Develop Investment. ●

18

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

MARCH 7-13, 2011

Analysis: Romania

Romania: the right moment to move forward John Duckworth is managing director CEE at Jones Lang LaSalle As macroeconomic indicators started to ease in Romania, we noted an improvement in investor sentiment towards the end of 2010.

The total investment volume recorded in 2010 was €293 million (excluding forward funding and forward acquisitions), more than double the total volume in 2009.

In addition, 2010 witnessed the first major real estate transaction resulting from a bank foreclosure.

Office market Despite the tepid economic recovery, 2010’s office leasing activity and office take-up registered a 65 percent y/y increase over that of the previous year. New take-up was estimated at 203,000 sqm, to which we add lease renewals/renegotiations to the amount of at least 57,000 sqm. This activity contributed over 30-40 percent of total occupational market activity.

The overall vacancy rate is close to 17.5 percent,

although it is particularly important to separate the sub-markets and recognize that the vacancy rate for prime, centrally located offices approaches 10 percent – a respectable level.

Moreover, the more competitive, downtown schemes still see solid demand from prospective tenants, while decentralized projects are struggling.

Current prime rental levels – €19/sqm/month – are considered to be near or at their low. In 2010, prime rents decreased by an average of 10.5 percent over those of 2009.

A total of 20 new buildings were completed in 2010, delivering over 280,000 sqm.

Of this, about 85,000 sqm was in non-speculative developments/owner-occupied.

The 2011 pipeline is estimated at 120,000-150,000 sqm and consists primarily of projects which were delayed or otherwise not delivered in 2010.

Retail market There are increasing signs of conservative optimism in the retail market. Key international retailers have significant expansion plans and work has restarted on some of formerly frozen projects.

With only five projects totaling 150,000 sqm completed

It is worth mentioning that Q4 2010 brought a few notable high street openings in Bucharest, such as Emporio Armani and Gucci, both located along Calea Victoriei.

Retail demand, fueled mainly by international entities, should increase and diversify in 2011. The main

“Looking ahead, we see a much constrained supply pipeline, particularly in the office segment” in 2010, the pipeline for 2011 consists of eight schemes with a total GLA of 250,000 sqm.

Retailer expansion is focused on the best performing shopping centers in Bucharest and proven schemes in the larger secondary cities. This trend is likely to continue until promising pipeline projects are restarted.

focus of expanding retailers – such as H&M, Inditex or Decathlon – will be on existing schemes, where they will replace well-located but nonperforming retailers.

Prime shopping center rents now range between €65-80/sqm/month, while prime high street units are seeing similar rents to those of the previous quarter, between €60-70/sqm/month.

Industrial market With limited speculative modern industrial supply and a lack of proper transport infrastructure, the market still outperformed expectations last year. Around 100,000 sqm was leased in 2010, with an additional 40,000 sqm was leased in major secondary cities across the country. In addition, important land transactions involving end users were recorded, a trend which will continue to characterize the industrial market for the near term.

The logistics’ pipeline for Romania this year is estimated at 100,000-150,000 sqm.

Take-up is estimated to surpass 2010’s activity.

Outlook Looking ahead, we see a much-constrained supply pipeline, particularly in the office segment. The leading institutional developers have spotted this as the right moment to move forward

with new projects, and these developments should further support renewed interest among institutional investors.

With regards to the retail sector, we expect that the gap between truly prime projects and less-well performing and/or first generation shopping centers will continue to widen. Proper asset and property management will become increasingly paramount for retaining and, in some cases, increasing value.

In the industrial market, we expect continued growing demand for quality logistics units as well as land transactions to end users.

Though green building features are not yet determining the selection process of industrial accommodation, the trend of sustainable development will become increasingly important as developers realize that this will directly impact investor interest and therefore the pricing at exit. ●

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MARCH 7-13, 2011

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

Green building

CEE as a showcase Mr Barrington also voiced his belief that, despite its slow start in green building, the CEE region could become a showcase for such projects, with its economic growth and capacity for urban regeneration.

Noel Morrin, Skanska’s senior VP for sustainability, echoed that sentiment, saying that his firm sees Central Europe as a key region when it comes to the issue. Skanska has come up with a strategy it calls “The Journey to Deep Green” – it has gone so far as to trademark the phrase –

Mr Ulrich also lamented the number of different types of “green” certification systems – over 100. However, the advantage that a certification brings is that it can be leveraged to improve the product, he said. As companies strive to meet the requirements, they focus more on quality and efficiency in general.

Clayton Ulrich, senior VP for engineering services at Hines, agreed that the trend towards green building was a powerful one, but warned against the “greenwash” that was occurring, especially with purveyors of new technologies.

“Caution, caution, cau-

after surveying its customers and finding that energy efficiency was their biggest concern.

The company’s ambitions go beyond BREEAM or LEED certifications – it has set a goal to consistently achieve far-better-than regulation standards of efficiency in its buildings. Ultimately, the company wants to make its buildings “future proof,” making sure that they will be up to future environmental standards, and therefore ensuring that they retain value over time.

tion,” he urged.

“The technology is moving at a faster pace than ever before, and most of it is unproven. It involves a high amount of risk, and that risk will become yours,” he said.

New technologies must be tested and evaluated thoroughly before incorporating them into a new development, because often they don’t deliver the high rates of energy efficiency they advertise, he added.

The little things

SHUTTERSTOCK

As concern about climate change grows, so does momentum for sustainable building. The trend began in the West, and is still nascent in Central and Eastern Europe.

The business case for such projects, it has been argued, just doesn’t add up. With lower incomes and smaller businesses – as well as a lower awareness and concern about environmental issues – the cost, many say, just doesn’t justify the benefits.

However, panelists at the Green Debate event held in Warsaw last week were convinced that the movement toward such projects was unstoppable. Due to several factors – such as a push from “Generation Y,” companies’ own corporate social responsibility policies and tenant demand – environmentally friendly building will have to become the norm, argued Mike Barrington, CEO of Deloitte Central Europe.

“CSR is a core element of what we do,” he said, explain-

Caution, caution, caution

ing that occupying environmentally friendly buildings was part of that strategy. His firm currently occupies the Deloitte House building in downtown Warsaw, the first building in Poland to receive GreenBuilding certification. “It’s expected of us by both our clients and staff, especially Generation Y [employees],” he said.

Mr Barrington added that it is nothing new for prospective tenants to consider a building’s energy efficiency and environmental friendliness, but it is nevertheless becoming a more central part of the decision-making process.

19

Królewskie plots on sale

Going Green in Central Europe Is there a business case for environmentally friendly building in the region?

www.wbj.pl

In the end, the participants agreed that “small things matter,” as David Dixon, the head of the real estate division at law firm Norton Rose’s Polish branch, put it.

Companies can spend a lot of money on green technologies and meeting certification requirements, but innovative design and proper building management can go a long way in making the difference between whether a building is or isn’t environmentally friendly.

And those are things that any Central European firm can take into account.

Andrew Kureth

WBJ was a media patron of the CEE Insight Forum GREEN DEBATE: But what are the funds thinking?

Królewskie Golf & Country Club, a residential and recreation complex located 30 km from Warsaw, has added new space to its offer. In addition to single-family houses and apartments, it now also includes land designated for development. The expanded offer includes nine plots sized from 776 sqm to 990 sqm. Prices start at z∏.250,000 and z∏.189,000, respectively.

Waste disposal plant in Katowice Construction and engineering firm ABM Solid has signed an agreement to design and build a waste disposal plant in Katowice. The value of the investment is estimated at more than z∏.18.6 million net. The project has been commissioned by the Municipal Industry Bureau in Katowice. ABM Solid will build three areas in which waste will be sorted and converted into ecological fuel. The firm has 10 months to build the plant. ●

20

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

MARCH 7-13, 2011

Analysis: Hungary

Hungary: improving sentiment

Total industrial stock in Hungary, 2001-2010* (sqm) 2,000,000 * Total stock revised Q2 2010

Charles Taylor is managing director of Cushman & Wakefield Budapest Market sentiment in Hungary has recently improved to a more cautiously optimistic standpoint, as each of the commercial sectors emerges from the worst of the recession. The halting of new development has constrained new supply and continued net absorption is expected to decrease vacancy rates and stabilize rental levels.

Generally speaking, the Hungarian real estate market bottomed out in 2010 and will recover during 2011, in line with the improving economic situation.

The following is a brief overview of the Hungarian commercial real estate mar-

kets, broken into office, retail and industrial sectors, in terms of how each market performed over 2010 and C&W’s forecasts as we continue into 2011.

Office market The Hungarian office market preformed strongly in 2010, with 314,700 sqm transacted.

This was only five percent less than the record year of takeup in 2008, demonstrating the resilience of the local office market and its lack of reliance on the local economy.

Vacancy rates increased mainly due to the fact that many of the transactions involved renegotiations instead

of new leases. Due to limited development activity in the city, international companies are again considering Budapest as an ideal location to expand and/or set up new regional shared service centers.

We anticipate vacancy rates will decrease as 2011 progresses, which we believe will lead to a slow but steady recovery of the office market.

The Budapest office market has now bottomed out and we expect it to stabilize in 2011.

Retail market After a rather difficult period during the last two years, the retail market in Hungary has begun to experience signs of

Major pipeline retail projects in Budapest Project KÖKI

Developer

Location

Size (GLA)

Planned opening

Local

Pest, XIX D.

55,000

Q3 2011

Echo Investment

Pest, XIV D.

40,000

Unknown

Etele City Centre

Futureal

Buda, XI D.

40,000

Unknown

Árkád extension

ECE

Pest, X D.

20,000

Unknown

TriGranit

Pest, VI D.

50,000

Mundo

WestEnd extension

Unknown Source: Cushman & Wakefield

improvement in the last six months.

International retailers are becoming far more active in identifying attractive trading opportunities, mostly located in Budapest, which shows a positive movement on the supply side of the market. A number of international retailers have already secured premises, including: Camaieu, Claire’s, Debenhams, Starbucks, Gaudí, etc. Others – such as – Stefanel, Carpisa, LIST, Diesel are still investigating, and planning openings in the near future.

As a result, a number of new developments are planned both in the capital, as well as in the countryside, which is further improving the quality of the retail market, delivering first-class retail opportunities to expanding retailers. There is approximately 200,000 sqm of shopping center space in the pipeline in Budapest, including a number of major projects (see table). Timing for many projects remains uncer-

Source: Cushman & Wakefield

1,500,000

1,000,000

500,000

sqm

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

tain and is dependent on bank financing and pre-lettings.

Industrial market The Hungarian industrial market was affected by the recession and rationalization in 2009. Occupiers were fighting for better conditions and most take-up was lease renewals. Due to the economic crisis, everybody became very cautious, putting new leases and relocations on hold.

Last year was mainly characterized by stabilization, with 210,000 sqm total take-up by the end of the year. The ratio of new leases also increased compared to the previous year.

The past few months have witnessed a significant upswing, registering new enquiries both from companies already present in the

Hungarian market and from new market entrants as well.

We are expecting a modest market comeback in 2011.

We are not forecasting remarkable speculative industrial developments in Hungary for 2011, mainly due to the amount of vacant space and difficulties in financing.

The vacancy rate is currently around 19 percent, which is still quite high, but with no speculative developments in the pipeline this rate should decrease to a more healthy level throughout the year.

There is still a downward pressure on industrial rents, tenants can currently lease areas with very favorable conditions, but with the absorption of vacant space, we can also expect an increase in rents, at the end of 2011 at the earliest.●

MARCH 7-13, 2011

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

Project financing

Real estate awards

Building without banks

Ballymore, Skanska and Heitman double up

New research suggests corporate bonds are increasingly attractive to credit-starved developers Banks in Poland are still playing it safe when it comes to commercial loans, yet developers are increasingly in need of capital for new investments.

So how are they coping with the problem?

According to new research from CEE Property Group, developers are simply learning to rely on themselves. The real estate consultancy notes that interest in corporate bonds has been growing for months.

Bonds remain more expensive for companies than other forms of debt, at least for now.

CEE Property Group states that the rate of return on bonds currently amounts to between nine and 13 percent, compared to around eight to 8.5 percent for a bank loan – if the bank says yes, that is.

However, bonds could become more cost effective if more people took to them.

“A lot depends on whether individual investors [learn to] trust in this instrument,” stated Pawe∏ Grzàbka, the head of

CEE Property Group. “If they trust and buy it without misgivings then the interest on the bonds might fall.”

The benefits of bonds for developers, according to the research, include the fact that the issuer need not specify the exact use of the funds, may choose the length of the repayment period and has the option of selling bonds which are not secured with stock.

Of course, corporate bonds are not new to the market.

They currently constitute around a quarter of all nonTreasury bonds available on the Warsaw Stock Exchange and a number of developers have issued bonds in the past, including Echo Investment, Dom Development, Polnord, JW Construction Holding, Gant Development and Marvipol. The latter firm, for example, issued bonds worth around z∏.39.4 million last year.

Katarzyna Piasecka

Structure of the WSE's non-Treasury debt market, as of September 30, 2010

*less than one year

Corporate

Short-dated securities*

Bank

Local government Source: Fitch Ratings Polska via CEE Property Group

The latest CEEQA Gala feted real estate firms, honored professionals The eighth edition of the Central & Eastern Europe Quality Awards (CEEQA) saw Ballymore Group, Skanska and Heitman International all walk away with double honors.

Ballymore took home the “Building of the Year” and “Retail Development of the Year” awards for its Eurovea shopping and recreation center in Bratislava. Skanska, meanwhile, picked up the “Green Initiative Award” for its “overall engagement and commitment to sustainable development,” and was also named the “Construction Company of the Year” for 2010.

For its part, Heitman International was given the “Investor of the Year” accolade. Otis Spencer, co-head for Europe at Heitman, was named “Industry Professional of the Year.”

The chairman and founder of Panattoni Development Company, Carl Panattoni, was honored during the evening and took home the “CEEQA

Lifetime Achievement Award.”

Others lauded during the CEEQA Gala included Globe Trade Centre (“Developer of the Year”), VGP (“Industrial Developer of the Year”), UniCredit (“Banking & Financial Services Company of the Year”) and Salans (“Legal & Consulting Firm of the Year”).

While the atmosphere was festive for most of the evening, a poignant moment arrived when the 530-strong crowd paid tribute to Marcin Kania, a partner at Colliers International Poland. Mr Kania’s life and career were cut tragically short in a recent accident, and those assembled honored his life with a minute-long standing ovation.

The Marriott Hotel in Warsaw played host to the event, which drew a crowd of CEE real estate luminaries. Warsaw Business Journal was a media patron. A charity raffle and Xbox competition raised more than €9,000 for CEEQA’s chosen charity, the Bator Tabor Foundation, which provides camps for chronically ill children in Central Europe.

Katarzyna Piasecka

www.wbj.pl

21

King Sturge lease activity International property consultancy King Sturge has enlarged its Warsaw leasing portfolio, adding two office buildings: Uniqa Forum and Prima Court. Uniqa Forum is a six-storey retail-office building offering a total of 6,245 sqm of leasable office space, while Prima Court comprises 4,200 sqm of leasable office space on eight storeys.

Since the beginning of the year, King Sturge has leased a total of over 16,000 sqm.

IK Development’s deals Real estate advisory IK Development has brokered a number of deals in the Polish commercial property market recently. It facilitated Kruk’s lease of more than 1,600 sqm of office space in Wroc∏aw Business Park 2 and Miastoprojekt’s take up of 420 sqm on the city’s ul. Âw. Miko∏aja. It also brokered Dongseo Display’s lease of more than 2,700 sqm at ProLogis Park Wroc∏aw. ●

22

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LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

MARCH 7-13, 2011

Analysis: Czech Republic

The Czech market: local investors dominate Angus Wade is managing director of King Sturge Prague volume. A quarter of the total transaction Markéta Miková is volume (€166 million) communications manager was invested into Czech at King Sturge Prague retail properties.

There were hardly In 2010, the total property any transactions with logistics investment volume in the and industrial parks (€39 milCzech Republic reached €676 lion, representing a six permillion, 20 percent more than cent market share) and comin 2009 when transactions mercial residential housing worth €556 million were (€33 million, meaning five closed. For the second con- percent of total transaction secutive year local investors volume). On the contrary this from the Czech and Slovak year, we expect a considerable Republics dominated the increase in both the number Czech commercial property and volume of industrial market and even increased transactions in the Czech their market share from 50 Republic. percent (in 2009) to 72 perConservative estimates say cent (in 2010). We anticipate that €600-700 million is likely that the local and foreign to be invested in the Czech investors’ market shares will property market in total, but flatten again in 2011. we anticipate this even reachLast year office buildings ing €1 billion. in Prague were the most sought-after products on the Industrial market Czech property investment The Czech logistics and market, as they attracted €328 industrial property market million and gained a 48 per- reached nearly 3.5 million cent share of total investment sqm of class-A premises last

year. Compared to 2009, when 442,000 sqm of new industrial and logistics properties were delivered to the market, new supply in 2010 decreased by 66 percent to only 150,000 sqm. Construction of new warehouses reached a five-year low, there was almost no speculative development and all the construction was build-to-suit and on the basis of pre-leases.

On the other hand, a dramatic recovery of demand for this type of commercial property contributed to a steep decrease in vacancy rates throughout the year of 2010.

Whereas Czech logistics and industrial parks struggled with vacancy rates at 17.6 percent in December 2009, 12 months later only 10.4 percent of class-A warehouse space was vacant across the Czech Republic.

Brighter days are ahead in the investment market as well. After three years of literally no transactions in the

Czech industrial market, a first small deal was closed by the end of 2010 and a bigger one announced (the sale of part of VGP’s portfolio, totalling about €300 million). A few more investment transactions are generally expected to follow in this segment.

Prime yields and change rates in Prague, Q4 2010 City

Sector

Prime yield

Quarterly

Annual

(Q4 2010)

change

change

Prague

Office

6.75%

0.00%

-0.25%

Prague

Logistics

8.25%

-0.25%

-0.50%

Prague

High street retail

6.00%

-0.25%

-0.75%

Source: King Sturge research, February 2011

Office market The Prague office market formed 2.7 million sqm of class-A and class-B administrative space by the end of 2010. Only 41,800 sqm of new office space was added to total stock in Prague in 2010, 75 percent less than in 2009.

At the same time, 100,000 sqm of new office development was started in Prague last year and, on top of that, nine schemes out of 10 on a speculative basis. Most of these should be completed by the end of 2011 or in the first half of 2012.

In 2010, total take-up in the Prague office market

achieved 214,700 sqm, which was 12 percent less than in 2009. We estimate that there will be a slight increase in leasing transaction volume, ranging from 220,000 to 240,000 sqm signed deals in 2011. Last year we also witnessed an increase in renegotiations to 44 percent; in 2011 its share should be at 30-40 percent.

The vacancy rate in Prague’s office sector increased by 1.35 percentage points last year, from 11.8 percent in December 2009 to 13.15 percent a year later. We assume that vacancy rates should decline to 12-12.5 per-

cent during 2011.

Prime headline office rents in Prague remained unchanged in 2010. In the city center these were €2021/sqm/month, in the inner city €15-17.5/sqm/month and in outer city locations they were at €13-14.5/sqm/month.

For 2011 we are not expecting any major fluctuations in prime headline rents.

In 2010, investment in office properties accounted for a 48 percent market share of total investment volume. This year we expect this to decline to about 30 percent. ●

Property-related stocks Security

Closing price on March 03

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏.mln)

BUDIMEX

97.50

3.72

80.45

106.10

22.64

25,530,098

2,489.18

CELTIC

22.00

5.77

17.43

60.55

N/A

34,068,252

749.50

DOMDEV

45.50

-1.30

38.52

61.00

-4.21

24,560,222

1,117.49

ECHO

4.97

6.88

3.95

5.40

27.11

420,000,000

2,087.40

158.00

0.00

155.00

188.40

-5.95

4,747,608

750.12

ENERGOPLD

3.77

-0.79

3.57

4.50

-14.12

70,972,001

267.56

ERBUD

46.06

-4.04

46.06

61.00

-9.86

12,602,711

580.48

GANT

16.37

2.38

15.69

26.00

-20.53

20,499,953

335.58

GTC

21.04

-0.52

20.63

25.00

-9.70

219,372,990

4,615.61

HBPOLSKA

2.78

4.91

2.54

3.90

-20.57

210,558,445

585.35

JWCONSTR

14.25

0.35

12.60

18.69

25.00

54,073,280

770.54

LCCORP

1.68

-0.59

1.41

1.73

5.00

447,558,311

751.90

MARVIPOL

9.51

0.85

8.83

22.31

-41.30

36,923,400

351.14

MIRBUD

4.70

6.33

2.71

4.75

62.63

75,000,000

352.50

MOSTALWAR

48.57

2.47

46.91

77.00

-28.99

20,000,000

971.40

MOSTALZAB

2.83

0.00

2.63

4.84

-32.46

149,130,538

422.04

ORCOGROUP

32.01

-1.36

19.00

34.20

7.52

14,053,866

449.86

PBG

ELBUDOWA

197.90

2.97

190.40

252.00

-4.76

14,295,000

2,828.98

PLAZACNTR

3.87

-1.02

3.87

6.39

-34.30

292,647,720

1,132.55

POLAQUA

17.82

-9.91

16.00

22.50

8.92

27,500,100

490.05

POLIMEXMS

3.75

9.33

3.33

5.29

-15.92

521,035,327

1,953.88

POLNORD

32.50

3.67

30.50

44.00

-8.71

22,242,031

722.87

RANKPROGR

10.20

0.00

9.59

10.96

N/A

37,145,050

378.88

ROBYG

1.82

-0.55

1.70

1.94

N/A

257,390,000

468.45

RONSON

1.41

0.71

1.36

2.10

-9.62

272,360,000

384.03

TRAKCJA

3.55

1.72

3.49

4.97

-13.41

160,105,480

568.37

ULMA

83.00

-0.24

70.00

86.20

5.06

5,255,632

436.22

UNIBEP

8.71

-3.22

7.13

10.30

25.14

33,927,184

295.51

WARIMPEX

10.60

2.42

7.64

10.85

31.84

54,000,000

572.40

ZUE

13.50

-3.57

13.50

15.14

N/A

22,000,000

297.00

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

MARCH 7-13, 2011

www.wbj.pl

23

Analysis: Slovakia

Slovakia sees a quick rebound Ermanno Boeris is managing director of Colliers International Slovakia The modest growth of the Slovak economy in 2010 was reflected in development in the real estate market. Office space leasing came alive due to tenants moving from older centers to A-class premises.

Slovakia rebounded relatively quickly from the global economic slowdown. A prudent regulatory framework for the financial sector, combined with competitive tax rates, has ensured its transition to a flexible and vibrant economy with a considerable degree of resilience. According to FocusEconomics’ analysis, a consensus forecast of banks is that GDP growth in 2011 will reach 3.1 percent.

Investment market During 2010, the CEE investment market continued to witness a recovery in transaction volumes and market sentiment, more than doubling the activity seen in 2009. Most institutional investors focused their investment in Poland

and the Czech Republic. As examples of typical investment transactions, in Slovakia we recorded one hotel deal in Bratislava and three Tesco stores (representing two transactions).

For 2011 we expect the realization of transactions that were postponed during 2010, as well as more investors re-entering the Slovak market because of the economy’s solid macroeconomic fundamentals. This will be supported by a more stable office occupier market, for good quality product at least.

Industrial production is reporting steady growth, with a number of companies considering expansions. The logistics market is already receiving the attention of developers seeking land purchase opportunities.

Inflation may become an important issue during 2011, and many investors may find that investment in incomeproducing properties which

offer indexed rents is a good protection against potential inflation risks. From a regional perspective, the pressure on returns in the Polish market is reflected in low yields, which currently makes Slovak yields look more attractive for those investors less concerned with local market liquidity.

Office market The situation in the market is starting to be more optimistic due to a higher number of transactions. Several projects are no longer on hold, but the pipeline still does not reach even half of 2008’s delivery.

We expect the overall vacancy rate to decrease during the next six to 12 months and, in the best case scenario, it could decrease by up to seven to eight percentage points by the end of 2011.

Prime rents, as well as effective rents, are expected to increase slightly during the next six to 12 months.

Industrial market Due to a low vacancy rate, we expect developers in the Senec area to launch new developments. We predict strong pre-lease campaigns for the Žilina, Prešov and Košice areas, with rents higher than current levels.

Developers are focused on “permit-ready” locations with the possibility to launch prelease developments. Recently they have secured land plots through options-to-buy.

Retail market The retail market in Slovakia revived in 2010, although retailers remain very cautious.

Declines in retail sales, falling disposable income and purchasing power of inhabitants, rising unemployment and job insecurity caused some retailers to close unprofitable stores.

At the same time, the boom in shopping center construction continued unabated despite the crisis. Over the

course of last year, approximately 190,000 sqm of new shopping center space was delivered in Slovakia, the largest increase in the last 20 years. The biggest increase was in the Bratislava region, representing 44 percent of all completions in Slovakia. The second-most popular destination was the Žilina region, with 36 percent. Deliveries in that area included the Aupark (25,700 sqm) and Mirage (20,900 sqm) schemes.

The gap between successful and unsuccessful centers will deepen in the future.

Location and accessibility remain the most crucial criteria for the success, but the importance of marketing is increasing as well. Retailers will also remain cautious in terms of expanding in 2011.

Meanwhile, the expiration of lease agreements is creating a relatively new re-letting market.

Rents will remain stable and the market will remain

tenant driven. Strong and popular tenants are still demanding concessions such as fit-out contributions, rentfree periods, turnover or stepup leases. Landlords and tenants need to be creative and proactive to communicate their message as the competition has increased.

Forecast 2011 In general, forecasts indicate that 2011 will be challenging for the real estate market in Slovakia.

The balance between supply of and demand for new office premises, developers’ continuing problems with access to financing, changes in the future use of projects, falling yields and barriers to the refinancing of existing properties will characterize the market this year.

Despite these expectations, we anticipate positive signals from the industrial market, which will move mainly in the regions. ●

MARCH 7-13, 2011

LOKALE IMMOBILIA – SPECIAL MIPIM EDITION

SGI Baltis launches new projects in Warsaw, Poznaƒ Tarasy Bartycka has been designed by the Warsaw-based B’ART Pracownia Architektury, Urbanistyki i Wn´trz Bart∏omiej Bie∏yszew studio, while SGI Baltis itself is acting as general contractor. Units in Tarasy Bartycka are sized from 27-107 sqm and prices start at z∏.7,400 per sqm.

In related news, SGI Baltis has announced the launch of its first investment in Poznaƒ. The developer will build two five-storey structures on the city’s ul. Zawady, with a total of 216 apartments sized from 45-90 sqm. The project was designed by the Poznaƒ-based Autorska Pracownia Architektoniczna Hanny i Marka Bieƒkowskich studio and is scheduled for

The Tarasy Bartycka project should be completed in Q3 2012 completion in late 2012.

SGI Baltis is currently involved in a total of 11 proj-

ects in Poland. Apart from Warsaw and Poznaƒ, the company is present in cities such as

Szczecin, ¸ódê, S∏upsk and Gorzów Wielkopolski.

Adam Zdrodowski

COURTESY OF M+G

Sales begin for Adria phase 2

The Adria scheme will comprise 656 apartments

Dom Development, one of Poland’s largest residential developers, has begun sales on the second phase of its Adria project in east-bank Warsaw.

This stage of the development will comprise two seven-storey buildings hosting a total of 230 apartments.

Units will range in size from 33.6 to 114.2 sqm, with prices from z∏.7,000 to z∏.8,640 per sqm, which means most will

qualify for the state’s “Family on its Own” subsidized-mortgage program.

Phase two of Adria is scheduled for completion in the fourth quarter of 2012.

The residential estate will ultimately comprise five buildings with a total of around 656 apartments. Work on the first stage – involving 256 units – is already underway. Delivery is expected in Q4 of 2011.

25

Galeria Venus agent Retail Concept has become an exclusive leasing agent for new space in Galeria Venus, the largest shopping and service facility in Âwidnik, Lubelskie voivodship. The company will also be responsible for the recommercialization of the existing part of the project. Galeria Venus currently offers 6,500 sqm of space, which hosts approximately 40 retail and service units.

In Q2 2012, the project’s area will be expanded to 11,000 sqm.

COURTESY OF ON BOARD PUBLIC RELATIONS

Szczecin-based developer SGI Baltis has launched construction on its Tarasy Bartycka residential scheme in Warsaw.

Located on ul. Bartycka in the capital’s Mokotów district, the development comprises two four-storey buildings with a total of 134 apartments and 200 parking spaces.

Completion is scheduled for Q3 2012.

“More and more families nowadays have more than one car; this is why, in an attempt to meet our clients’ needs, we have put particular emphasis on ensuring a sufficient number of parking spaces for all inhabitants,” Grzegorz Kawecki, vice-president of SGI Baltis’ management board, said in a statement.

www.wbj.pl

Located on ul. Jugos∏owiaƒska in Goc∏aw, a neighborhood in Warsaw’s Praga Po∏udnie district, Adria was designed by the Fajans Âcis∏o & Partnerzy “Arcus” architecture studio. Its design is meant to reflect modern sensibilities.

Erbud is serving as general contractor on the first and second stages of Adria.

Natalia Kazik

New Galeria Sieradzka tenants Developer Keen Property Partners Retail has recently secured a number of new tenants, including Takko, Reserved and Deichmann for the Galeria Sieradzka shopping and entertainment center in Sieradz, ¸ódzkie voivodship. Following the deals, the facility is now almost fully leased out. ●

26

THE LIST

www.wbj.pl

MARCH 7-13, 2011

Construction & Real Estate

Commercial Real Estate Developers - Office

Ranked

Ranked by office investments completed in 2009

Company name Address Tel./Fax Email www

Office investments Office completed: Total investments area sqm: completed overall 1st half of 2010 / (sqm) 2009 / 2008 / 2007

Major investments completed before 2009 (location; size; class; completion year)

Total employees / Year founded

Ownership: Polish / Foreign

Top local executive / Title

Marynarska Business Park (ul. TaÊmowa 7, Warsaw; 58,000; A; 2008); Bema Plaza (Pl. Gen. Bema 2, Wroc∏aw; 40,000; A; 2008); Trinity Park II (ul.

Suwak 3, Warsaw; 47,000; A; 2007); Prosta Office Center (ul. Prosta 51, Warsaw; 32,000; A; 2006)

WND 1991

None Ghelamco Group - 100%

Jeroen van der Toolen

WND

WND 1999

None Adgar Investment and Development Poland - 100%

Platinium Business Park (1st and 2nd phase) (ul. Wo∏oska 9, Warsaw; WND; Platinium Business Park IV (ul. Wo∏oska 9, Platinium Business Park (3rd phase) (ul.

19,800; A; 2007-2008); Centrum Office parks; office; Warsaw; 13,000; A; 2011); University Wo∏oska 9, Warsaw; 11,400; A); University Biurowe GTC (Galileo; Newton; Edison) retail; residential Business Park (2nd phase) (ul. Wólczaƒska Business Park (1st phase) (ul. Wólczaƒska (Al. Armii Krajowej, Kraków; 31,000; A; buildings; houses and 178, ¸ódê; 18,500; A; 2010-2011); Centrum 178, ¸ódê; 18,500; A); Centrum Biurowe 2005-2007); Ok´cie Business Park (1st suites Biurowe Francuska (2nd phase) (ul. Francuska Francuska (1st phase) (ul. Francuska 34, and 2nd phase) (ul. 17 Stycznia, Warsaw; 34, Katowice; 10,700; A; 2010-2011) Katowice; 11,000; A) 18,000; A; 2008); Globis Wroc∏aw (ul.

Powstaƒców Âlàskich 7A, Wroc∏aw; 14,650; A; 2008)

58 1994

None GTC Real Estate Holding 43.1%; ING OFE - 8.1%; Aviva Commercial Union OFE BZ WBK - 7.2%; other shareholders - 41.5%

Malta Office Park (1st phase) (ul.

Office Park (2nd phase) (ul. Baraniaka Baraniaka 88, Poznaƒ; 8,500; A; 2008); Malta Office Park (3rd phase) (ul. Baraniaka Malta 88, Poznaƒ; 17,400; A); Oxygen Office Park Kielce (Al. SolidarnoÊci 36, 88, Poznaƒ; 7,400; A; 2012); AURUS (1st (ul. Malczewskiego 22; Szczecin; 19,300; Kielce; 18,100; A; 2007); Athina (ul. phase) (Al. Pi∏sudskiego 86, ¸ódê; 12,500; A; A); Park Post´pu (ul.

Post´pu 21, Warsaw; Wybrze˝e Gdyƒskie, Warsaw; 22,200; A; 2012) 58,200; A) 2005); Post´pu 3 (ul. Post´pu, Warsaw; 30,500; A; 2005)

300 1994

Micha∏ So∏owow - 40.5% None

Piotr Gromniak

Marynarska Point (ul. Post´pu 15 B and C, Warsaw; 26,600; A; 2008); Atrium Centrum (Al. Jana Paw∏a II, Warsaw; 17,000; A; 2001); Atrium Plaza (Al. Jana Paw∏a II, Warsaw; 15,000; A; 1998); Atrium Tower (Al. Jana Paw∏a II, Warsaw; 11,000; A; 1996)

WND 1997

None Skanska Project Development Europe - 100%

Nicklas Lindberg

Jose Cordoba

Specialization

Key current investments (location; size; class; completion year)

Largest investments completed in 2009-2010 (location; size; class; completion year)

www.bookoflists.pl

Ghelamco Poland Sp. z o.o. ul. Domaniewska 52, 02-672 Warsaw 1 22 455-1600 / 22 455-1610 ghelamco@ghelamco.com www.ghelamco.com

51,000 60,000 143,000 47,000

350,000

Adgar Post´pu Sp. z o.o. ul. Post´pu 17A, 02-676 Warsaw 2 22 323-8100 / 22 323-8103 adgar@adgarplaza.pl www.adgar.pl

WND 55,000 WND WND

WND

Globe Trade Centre SA ul. Wo∏oska 5, 02-675 Warsaw 3 22 606-0700 / 22 606-0410 gtc@gtc.com.pl www.gtc.com.pl

WND 54,300 108,800 34,900

Echo Investment SA Al. SolidarnoÊci 36, 25-323 Kielce 4 41 333-3333 / 41 333-2333 biuro@echo.com.pl www.echo.com.pl

12,200 53,200 15,700 18,100

Skanska Property Poland Sp. z o.o.

Al. Jana Paw∏a II 19, 00-854 Warsaw 5 22 653-8400 / 22 653-8401 offices@skanska.pl www.skanska.pl

WND 36,100 37,800 -

WND

Office buildings

Green Towers (ul. Strzegomska 36, Wroc∏aw; 23,000; A; 2012)

Grunwaldzki Center (Pl. Grunwaldzki 23, Wroc∏aw; 27,000; A); Deloitte House (Al. Jana Paw∏a II 19, Warsaw; 19,800; A)

Aldesa Polska Diamente Plaza Sp. z o.o. ul. Wielopole 18B 6 31-072, Kraków 12 421-0953 / 12 421-0953 diamante@aldesa.pl www.aldesa.pl

WND 17,962 WND WND

WND

Developer

WND

Diamante Plaza (ul. Dekerta 24, Kraków; 17,962; A)

WND

2 2006

None Aldesa Construcciones - 100%

S+B Plan und Bau Warschau Sp. z o.o. ul. Mokotowska 1, 7 00-640 Warsaw 609-307-099 izabella.kieler@sb-gruppe.at www.zebratower.com

WND 17,800 WND WND

WND

Office and retail buildings

WND

Zebra Tower (ul. Mokotowska 1, Warsaw; 17,800; A)

WND

WND 2007

WND

Allcon Investment Sp. z o.o., S.k.-a. ul. ¸u˝ycka 6, 81-537 Gdynia 8 58 660-1990 / 58 660-1991 investment@allcon.pl www.officepark.pl

9,500 16,800 16,800 -

¸u˝ycka Office Park - buildings C, D, E (ul. ¸u˝ycka 6, Gdynia; 26,300; A)

¸u˝ycka Office Park - buildings A, B (ul. ¸u˝ycka 6, Gdynia; 16,800; A; 2008); Allcon@park 1 and 2 (ul. S∏owackiego 171, 173, Gdaƒsk; 10,700; B+; 1998, 2005); Centrum Rodzinne WITAWA (ul.

Wielkokacka 2, Gdynia; 12,058; WND; 2003); Allcon Dmowskiego Centrum (ul.

Dmowskiego 12, Gdaƒsk; 4,360; B+; 1999)

7 1994

WND - 100% None

Sergiusz Gniadecki

Liebrecht & wooD Polska Sp. z o.o.

Al. Jerozolimskie 212A, 02-486 Warsaw 9 22 571-4444 / 22 571-4443 info@liebrecht-wood.com www.liebrecht-wood.pl

16,795 6,171 WND

Office buildings; outlet centres

Kopernik Office Buildings (I-V) (Al. Jerozolimskie 180, Warsaw; 18,690; A; Plac Unii (ul. Pu∏awska 2, Warsaw; 41,000; 2008); Batory Office Buildings I (Al. A+; Q2 2013); Plac Unii (ul. Pu∏awska 2, Flanders Business Park A (ul. Flisa 2, Warsaw; 15,500; shopping mall; Q2 2013); Warsaw; 8,942; A); Batory Office Buildings II Jerozolimskie 212A, Warsaw; 6,394; A; 2000); Flanders Business Park B (ul. Flisa Morski Park Handlowy (ul. Przywidzka 8, (Al. Jerozolimskie 212A, Warsaw; 7,808; A) 4, Warsaw; 5,515; A; 2000); Fashion Gdaƒsk; 50,320; shopping mall; QI 2011) House Warsaw (ul. Pu∏awska 42E, Piaseczno; 24,000; outlet center; 2008)

30 1994

None Patrick Van Den Bossche 50%; Marc Lebbe - 50%

Marc Lebbe; Patrick Van Den Bossche

NDI SA ul. Powstaƒców Warszawy 19 81-718, Sopot 10 58 771-7700 / 58 771-7701 ndi@ndi.com.pl www.ndi.com.pl

WND 13,107 25,342 -

WND

Office, hotel, retail, residential and infrastructure sector

ING Bank Âlàski (ul. Sokolska 34, 27,900; A; 2001); Chorzowska CORT (ul. Jelitkowska 23, Gdaƒsk; 10,544; Shopping mall (ul. Boh. Monte Cassino 63, Katowice; 50 (ul. Chorzowska 50, Katowice; B+; 2010); Apartamenty Przy Pla˝y (ul.

Sopot; 12,273; WND); spa house (ul. Boh. 44,500; 19,500; B+; 2001); Ergo Hestia Jelitkowska 23, Gdaƒsk; 5,974; suites; I stage Monte Cassino 6, Sopot; 26,946); office (Hestia 1, Sopot; 18,770; A; 2001); 2010); Highway A1 (Nowe Marzy - Toruƒ; 62 building (ul. Powstaƒców Warszawy 19, Centrum Finansowe Pu∏awska (ul. kilometers; 62 kilometers; WND; 2011) Sopot; 12,939; A) Pu∏awska 15, Warsaw; 83,135; 50,300; A; 1998)

134 1991

WND

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

7,450 11,198 12,725 -

WND

Class A office buildings; multifamily residential buildings; hotels; warehouses

Arkoƒska Business Park (1st phase) (ul.

Arkoƒska 6, Gdaƒsk; 12,725; A; 2008); G413 (Al. Grunwaldzka 413, Gdaƒsk; 7,148; A; 2005); G417 (Al. Grunwaldzka 417, Gdaƒsk; 1,233; ; B+; 2003)

35 2002

Ma∏gorzata Dobrowolska 88%; Dawid Mysior - 12% None

Over 400,000

185,000

55,000

WND

Park III (ul. Domaniewska 49, Warsaw; Senator (ul. Bielaƒska, Warsaw; 45,000; A; Trinity 60,000; A); Katowice Business Point (ul.

Office, warehouse and 2012); Mokotów Nova (ul. Wo∏oska, Warsaw; Chorzowska, Katowice; 27,000; A); Crown residential buildings 79,000; A; 2011); Warsaw Spire (ul.

Square (ul. Przyokopowa 31, Warsaw; Towarowa, Warsaw; 279,000; A; 2014) 24,000; A)

Developer

WND

WND

(ul. S∏owackiego 173, Gdaƒsk; Commercial buildings Allcon@park 312,400; A; 2011)

WND

Adgar Plaza A (ul. Post´pu 17 A, Warsaw; 32,000; 15,000; A); Adgar Plaza B (ul.

Post´pu 17 B, Warsaw; 23,000; A)

Arkoƒska Business Park (2nd phase) (ul.

Arkoƒska 6, Gdaƒsk; 18,679; A)

Managing Director

Michael Mevorach Director

Piotr Kroenke General Director

President

President

General Director

Edmund Voelker WND

President

Managing Directors

Jerzy Gajewski President

S∏awomir Gajewski President

THE LIST

Ranked

MARCH 7-13, 2011

Company name Address Tel./Fax Email www

Office investments Office completed: Total investments area sqm: 1st half of 2010 / completed overall (sqm) 2009 / 2008 / 2007

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 11,571 -

Avestus Real Estate Sp. z o.o. ul. Nowogrodzka 47A, 00-695 Warsaw NR 22 520-6000 / 22 520-6001 marketing@avestusrealestate.com www.avestusrealestate.com

WND WND WND 35,500

149,109

ECC Real Estate Sp. z o.o. ul. Ostrobramska 75C, 04-175 Warsaw NR 22 611-3700 / 22 611-3753 info.europe.ce@eccrealestate.com www.eccrealestate.com

WND WND WND WND

22,500

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

WND WND 122,054 WND

147,542

Hines Polska Sp. z o.o. ul. Bonifraterska 17 00-203, Warsaw NR 22 351-2400 / 22 351-2401 hinespl@hines.com www.hines.pl; www.hines.com

WND WND WND WND

Mayfield Polska Sp. z o.o. ul. S∏omiƒskiego 19/508, 00-195 Warsaw NR 22 637-5508 / 22 637-5508 info@mayfield.pl www.mayfield.pl

65,071

www.wbj.pl

27

Specialization

Key current investments (location; size; class; completion year)

Largest investments completed in 2009-2010 (location; size; class; completion year)

Major investments completed before 2009 (location; size; class; completion year)

Total employees / Year founded

Ownership: Polish / Foreign

Top local executive / Title

Office buildings; warehouses; shopping malls

WND

WND

WND

WND 1997

WND

Brian Patterson; Miros∏aw Szydelski

Office, retail and residential buildings

Enterprise Park (ul. Kie∏kowskiego, Kraków; 29,239; A; 2012)

Milano office building (ul. 17 Stycznia, Warsaw; 2,100; B; 2012); “Podkowa” Office, residential, retail presidential area (Poznaƒ; 33,000; 2012); buildings apartment building (ul. Pu∏awska III, Warsaw; 19,700; 2011)

Managing Director; Investment Director

WND

Warsaw Corporate Center (ul. Emilii Plater, Warsaw; 9,290; A; 1993); Warsaw Financial Center (ul. Emilii Plater, Warsaw; 69,677; A; 1998); International Business Center (Al. Armii Ludowej/ul.

Polna, Warsaw; 53,977; A; 2003/2007); WiÊniowy Business Park - building F (ul. I∏˝ecka, Warsaw; 16,165; A; 2007)

40 1990

WND Bartosz Puzdrowski Avestus Real Estate - WND% Managing Director

WND

CBH Promenada (ul. Ostrobramska, Warsaw; 120,000; WND; B; 1996); Green House (ul. Hankiewicza, Warsaw; 4,000; WND; WND; 1994); office building (ul. Bitwy Warszawskiej 1920 r., Warsaw; 4,000; 1994)

WND 1989

ECC Holdings Poland - WND% WND

WND

Adrian Heymans President

Office buildings; warehouses

WND

WND

Lipowy Office Park (ul. ˚wirki i Wigury, Warsaw; 64,000; 2008)

21 2002

38,040

Developer; investor

Sterlinga Business Center (ul. Sterlinga 8A, ¸ódê; 13,400; A; 2010); Quattro Towers (ul.

Partyzantów 6/12, Gdaƒsk; WND; 24,900; residential buildings; Q3 2011); Arboretum (ul. ¸ukasiƒskiego 4, ¸ódê; 22,000; residential building; Q2 2012)

WND

Apartamenty Impresja (ul. Sarmacka 10, Warsaw; 27,200; residential buildings; 2008); Metropolitan (Pl. Pi∏sudskiego 1-23, Warsaw; 38,040; A; 2003)

30 1997

None Mieczys∏aw Godzisz Hines International Real Estate President Holding - WND%

WND WND WND WND

WND

WND

WND

WND

WND

3 2006

None Mayfield East Estate B - 100%

Jerzy Haƒczewski

Polnord Warsaw-Wilanów III Sp. z o.o.

Al. Rzeczypospolitej 3, 02-972 Warsaw NR 22 403-9084 / 22 403-9090 biuro-wilanow3@polnord.pl www.polnord.pl

WND WND WND WND

WND

Office buildings

Al. Rzeczypospolitej/ul. Branickiego; Warsaw; 300,000; A/B+; Q4 2010

WND

WND

7 2007

Polnord - 100% None

Jerzy Langner

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

WND WND WND WND

WND

Office, residential and retail buildings; warehouses

¸opuszaƒska Office Park (ul. Równoleg∏a 4; Warsaw; 51,022; 29,331; B+; 2013); Pu∏awska Office (ul. Pu∏awska 111; Warsaw; WND; 3850; A; 2012

WND

WND

23 2002

WND

Sjaelso Poland Sp. z o.o.

Al. Rzeczypospolitej 18/70, 02-972 Warsaw NR 22 419-2000 / 22 419-2010 sjaelso@sjaelso.pl www.sjaelso.com

WND WND WND WND

WND

Residential and office buildings; shopping malls

Tower Terraces (ul. Domaniewska 46; Warsaw; 28,000; A; 2012); Post´pu 22 (ul.

Post´pu 22; Warsaw; 17,000; A; 2012)

WND

WND

14 2007

None WND - 100%

John Kristensen

UBM Polska Sp. z o.o.

Pl. Trzech Krzy˝y 18, 00-499 Warsaw NR 22 356-8000 / 22 356-8001 biuro@ubm.pl www.ubm.pl

Around 70,000 -

WND

Griffin House (Pl. Trzech Krzy˝y 18, Poleczki Business Park (1st phase, buildings Warsaw; A; 2005); Parkur Tower (ul.

Office buildings; hotels; Poleczki Business Park (ul. Poleczki, Warsaw; A1 and A2) (ul.

Poleczki 33 and 35, Warsaw; K∏obucka 25, Warsaw; WND; A; 2006); shopping malls 210,000; A; 2017) 70,000; 45,000; A) Warsaw Towers (ul. Sienna 39, Warsaw; A; 1998)

WND 1993

None UBM Realitatenentwicklung 100%

Peter Obernhuber; Sebastian Vetter

Von der Heyden Group ul. Mysia 5, 00-496 Warsaw NR 22 596-5000 / 22 596-5001 vdhgroup@vdhgroup.pl www.vdhgroup.com

WND WND WND 44,668

104,268

Andersia Tower (Pl. Andersa 3, Poznaƒ; 44,668; A+; 2007); Liberty Corner (ul.

Mysia 5, Warsaw; 12,400; 8,575; A+; 2003); Poznaƒskie Centrum Finansowe (Pl. Andersa 5, Poznaƒ; 32,500; A; 2001); Skorupki 4 (ul. Ks. Skorupki 4, Warsaw; 7,200; A; 2000)

140 1991

WND% Von der Heyden Group WND%

Javier Errejón Sainz de la Maza

Yareal Polska Sp. z o.o. ul. Krucza 16/22 00-526, Warsaw NR 22 331-3000 / 22 331-3011 office@yareal.com www.yareal.pl

WND WND WND WND

15,497

Renaissance (ul. Mokotowska 19, Warsaw; 5,197; A; 2005)

21 2005

None WND - 100%

Eric Dapoigny

High class customized Andersia Business Centre (ul. Królowej office buildings; hotels; Jadwigi, Poznaƒ; 23,000; A+; 2012); Nowy historical building Âwiat Atrium (ul. Nowy Âwiat 5, Warsaw; renovation 6,500; A+; 2012)

High class offices

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

Mokotowska Square (ul. Mokotowska 49, Warsaw; 9,600; A; 2011)

WND

Cristal Park (Al. Jerozolimskie/ul.

Mszczonowska 4, Warsaw; WND; 10,300; A)

Bart∏omiej Hofman Managing Director

President

President

Jerzy Motz President

President

Board Members

Managing Director

President; Managing Director

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.

LISTED FIRMS

www.wbj.pl

New WSE index The Warsaw Stock Exchange has unveiled a new index called the WIG-surowce, which groups together companies extracting and working with raw materials. The new subindex is composed of five companies: metals miner KGHM and coal producers Bogdanka, New World Resources, Ukrainian Sadovaya and DolnoÊlàskie Surowce Skalne.

Lotos buyers line up Many of Russia’s larger oil firms, including Rosneft, TNK BP and Gazprom Neft have expressed interest in buying a stake in Poland’s second-largest refiner, Lotos, reports Parkiet.

One unnamed Chinese firm is also interested.

The Treasury owns 53 percent of the company, which is worth around z∏.2.8 billion based on Lotos’ stock price.

However, analysts expect the Treasury to demand a control premium for its stake, which could value it at up to z∏.3.5 billion. ●

MARCH 7-13, 2011

Chemicals

Banking

Turkish investor eyeing Police

Open Finance readying IPO Getin’s financial advisory could be worth up to z∏.1.5 billion

COURTESY OF ZC POLICE

28

The Treasury has not made a decision on fertilizer maker ZC Police’s future

Nurol “not the first, nor the last” to express interest Turkey’s Nurol Holding has officially informed the Treasury Ministry of its interest in purchasing the state’s majority stake in fertilizer maker Zak∏ady Chemiczne Police.

According to reports in the media, a number of other potential buyers, based in Europe and elsewhere, have also expressed interest.

Nurol Holding sent a delegation to assess Police’s chemical plant in February during a visit organized by the Polish-Turkish Chamber of Commerce.

They were accompanied by a senior manager from Azomures, which is one of the largest chemical producers in Romania and a unit of Turkish firm Transworld Fertilizers Holding. Daily Parkiet has speculated that Azomures is acting as an advisor for Nurol Holding.

“The guests were very interested in our firm and asked very detailed questions as to how it is set up and how it functions,” an unnamed employee at Police told Parkiet. “However, they weren’t allowed into the plant.

They are, after all, our competitors.”

Treasury spokesperson

Maciej Wewiór told WBJ that the potential Turkish investors “were not the first ones and they will not be the last ones” to express interest in Police.

He said that the Treasury had not yet decided what it would do with the chemical firm, but that “more details will be clear after the publication of our strategy.” This, he said, will happen some time around the end of March and the beginning of April.

The government canceled the sales of Police and larger sector rival Zak∏ady Azotowe Pu∏awy in January due to a lack of satisfactory offers.

Alexander Hayes

Financial advisory Open Finance, a wholly owned unit of Polish banking group Getin Holding, is expected to debut on the WSE in Q2.

Artur Wiza, a member of Getin Holding’s management board, declined to comment on any specifics. “The prospectus is now being revised by the Polish Financial Authority and we are waiting for its approval,” he said.

Citing unnamed sources, Dow Jones Newswires reported last week that Getin Holding could float a 50 percent stake in Open Finance, which could be worth up to €200 million and would value Open Finance at about z∏.1.5 billion.

This suggests a price/earnings ratio of around 21, based on the company’s historic profit of z∏.72 million for 2010, commented Maciej Baraƒski, an analyst at brokerage DM BZ WBK. “On the one hand it is quite a lot, but on the other hand it is lower than for Getin Holding, the parent company, which achieved a price/earnings ratio of around 26,” he added.

Getin Holding’s 2010 net profit reached z∏.421.1 million, which topped 2009 results by over 50 percent and was significantly higher than analysts’ expectations.

According to Mr Baraƒski, Open Finance’s IPO is poised to be yet another successful step in Getin Holding’s strategy of actively identifying and expanding specific market niches within the banking sector.

“Open Finance came from nowhere when it was set up in 2004, overtook all its competitors and now dominates this market niche, in which I believe there is still room for growth,” he said.

Getin Holding is one of the few independent, Polish-owned banks and it has kept itself busy with M&A activity of late. It has been involved in the real estate advisory sector, with the acquisition of Home Broker, as well as in the health-care funding market with the acquisition of WSE-listed MW Trade.

Getin Holding subsidiary OOO Carcade also recently obtained permission from Russia’s central bank to purchase bank OAO AB KubanBank, allowing it to expand its presence in the Russian automotive credit market.

Alice Trudelle

MARKETS

MARCH 7-13, 2011

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

12,266.21 (March 04 close)

S&P500

2,797.37 (March 4 close)

1.67% (for the week)

FTSE100

1,330.97 (March 4 close)

2.03% (for the week)

DAX

6,005.09 (March 4 close)

1.89% (for the week)

1.08% (for the week)

Hitting a high note

NIKKEI225 7,219.98 (March 4 close)

10,584.71 (March 4 close)

1.21% (for the week)

1.26% (for the week)

CHANGE: 5.95%

CHANGE: 4.51%

CHANGE: 5.83%

CHANGE: 1.78%

CHANGE: 3.54%

CHANGE: 2.25%

(year to March 4)

(year to March 4)

(year to March 4)

(year to March 4)

(year to March 4)

(year to March 4)

52-week high: 12,418.00

52-week high: 2,840.51

52-week high: 1,344.07

52-week high: 6,105.77

52-week high: 7,441.82

52-week high: 11,408.17

52-week low: 9,596.04

52-week low: 2,061.51

52-week low: 1,010.91

52-week low: 4,790.04

52-week low: 5,607.68

52-week low: 8,796.45

Tomasz Jerzyk, technical analyst DM BZ WBK SA

48,036.91 (March 4 closure)

WIG20

2,762.89 (March 4 closure)

03.03

02.03

01.03

28.02

25.02

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

03.03

02.03

01.03

28.02

25.02

24.02

23.02

22.02

21.02

18.02

17.02

2,600

16.02

2,640

46,000

15.02

46,600

14.02

2,680

11.02

47,200

10.02

2,720

09.02

47,800

08.02

2,760

07.02

2,800

48,400

04.02

49,000

14.02

52-week low: 2,270.13

11.02

Change year to March 4: 0.30%

10.02

52-week low: 39,109.37

09.02

52-week high: 2,794.58

Change year to March 4: 0.81%

08.02

Change for the week: 4.11%

07.02

52-week high: 48,371.02

04.02

Change for the week: 3.20%

Top 5 IRENA BMPAG COGNOR SKOTAN MWTRADE

Closing 1.40 4.30 4.16 2.54 18.98

% change (week) 52-week high 37.25 5.00 30.30 4.30 28.00 4.32 13.90 3.21 13.65 19.90

52-week low 0.65 2.98 2.40 1.69 4.40

Top 5 KGHM POLIMEXMS CYFRPOLSAT PKOBP PKNORLEN

Closing 183.90 3.75 15.80 43.35 47.70

% change (week) 12.48 9.33 6.25 5.96 5.76

52-week high 188.90 5.29 17.30 46.81 49.00

52-week low 88.20 3.33 13.36 36.15 35.41

Bottom 5 CEDC TECHMEX WASKO FASING HELIO

Closing 39.80 0.09 3.36 16.81 16.68

% change (week) -38.53 -25.00 -14.94 -14.89 -13.98

52-week low 39.80 0.08 1.37 15.00 14.70

Bottom 5 TPSA GTC PZU CEZ BZWBK

Closing 16.35 21.04 347.80 134.50 225.50

% change (week) -1.68 -0.52 -0.34 0.00 0.18

52-week high 18.65 25.00 417.50 148.80 225.50

52-week low 14.10 20.63 326.00 118.70 179.00

52-week high 112.80 2.30 4.40 30.85 26.60

Currency report

Interest rates dominate

Other indices 2,885.02 (March 4 closure)

sWIG80

12,755.68 (March 4 closure)

NewConnect

58.58 (March 4 closure)

WIG-Banki

0 03.03

02.03

01.03

28.02

25.02

24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

03.03

02.03

01.03

28.02

25.02

24.02

23.02

22.02

21.02

18.02

17.02

6,600

16.02

57.0

15.02

6,680

14.02

57.8 11.02

6,760

10.02

58.6

09.02

6,840

08.02

59.4

07.02

6,920

04.02

60.2

11.02

52-week low: 5,751.39

10.02

Change year to March 4: -0.66%

09.02

52-week low: 54.52

08.02

52-week high: 7,262.73

Change year to March 4: -7.62%

07.02

Change for the week: 4.17%

04.02

52-week high: 64.39

7,000

After a week rich in macro publications, the situation on currency markets is far from clear. The European Central Bank kept interest rates unchanged, but Jean-Claude Trichet, the ECB’s president, said that the bank might consider an interest rate hike in April due to increasing inflationary pressures. This hawkish statement caused the euro to gain in value and the EUR/USD broke the $1.39 level, from $1.38 at the beginning of the week.

After Friday’s publication of the US labor market report (the unemployment rate dropped to 8.9 percent, while nonfarm payroll employment increased by 190,000) the main currency pair reached $1.40, its highest level since November of 2010, but was unable to break that level.

6,916.28 (March 4 closure)

Change for the week: 1.67%

61.0

Adam Narczewski, X-Trade Brokers Dom Maklerski SA

03.03

0 02.03

0 01.03

2 28.02

2 25.02

2 24.02

23.02

22.02

21.02

18.02

17.02

16.02

15.02

14.02

11.02

10.02

09.02

08.02

07.02

04.02

03.03

02.03

01.03

28.02

25.02

24.02

23.02

22.02

21.02

12,500

18.02

2,800

17.02

12,580 16.02

2,840 15.02

12,660

14.02

2,880

11.02

12,740

10.02

2,920

09.02

12,820

08.02

2,960

07.02

12,900

04.02

3,000

2

52-week low: 10,980.45 2

Change year to March 4: 4.13% 2

52-week low: 2,337.41

0

52-week high: 12,855.31

Change year to March 4: 2.75%

0

Change for the week: 0.77%

0

52-week high: 2,904.35

0

Change for the week: 2.76%

SOURCE: WSE

mWIG40

shares. Its stock jumped 11 percent after being upgraded by a respected analyst. The refiner set a multi-month high on Friday, reaching z∏.49.63, while its 12-month price target was calculated at z∏.65. Strong gains in crude oil futures also helped the firm.

KGHM delivered solid financial results, and it announced that a dividend payout of 30-50 percent of its 2010 profit.

CEDC was the biggest disappointment last week, losing more than 43 percent as it surprised on the downside with its financial results.

Additionally, ratings agency Moody’s placed the company on its observation list with a possible downgrade in the future.

It was very good week for investors, and I hope to see more coming. ●

Polish stocks rose significantly last week, with the bluechip WIG20 index soaring by 4.1 percent and the main WIG gaining three percent.

The overall WIG, meanwhile, set a new multi-year high.

The beginning of the week was quite volatile, but then better-than-expected earnings from KHGM and sharp advances on commodities markets pushed investors to buy stock. Additionally, the rate-setting Monetary Policy Council left interest rates unchanged, which helped to lift financials.

The best performing sectors were chemicals and oil.

Police and Synthos were the top picks among chemical stocks, and they rose by 13 and 11 percent, respectively.

Orlen was the best performing stock from both the oil sector and among WIG20

Major indices WIG

29

Local news guided the z∏oty. The Polish rate-setting body (RPP) kept the headline interest rate unchanged at 3.75 percent and made relatively dovish statements concerning its future policy. Inflation seems to be under control, with the RPP stating that January’s interest rate hike had solved the problem. Of course, the RPP is closely observing global events and will act if necessary.

The z∏oty depreciated against the euro after the announcement, but the EUR/PLN was unable to break the z∏.4.00 resistance level. Instead, it finished the week at z∏.3.98. On the other hand, the z∏oty gained against the depreciating dollar. The USD/PLN declined from z∏.2.89 all the way to z∏.2.85. ●

currency rates 3.5178

3.4880

3.5198

3.5067

3.4710

28.02

01.03

02.03

03.03

04.03

3.0

3.5088

3.5

25.02

0.1016 04.03

0.1015 03.03

0.0997

0.1010 02.03

01.03

0.0995 28.02

0.0995 0.08

25.02

3.0794 04.03

3.0993

0.10

PLN-100JPY

4.0

SOURCE: NBP

PLN-RUB

0.12

03.03

3.1130 02.03

3.0739 01.03

28.02

3.1007 25.02

4.6701

4.6519 04.03

3.0

3.1043

PLN-CHF

3.5

03.03

4.6953 02.03

4.6676 01.03

28.02

4.6337 25.02

2.8704

2.8646 04.03

4

4.6583

PLN-GBP

5

03.03

2.8843 02.03

2.8643 01.03

28.02

2.8770 25.02

3.9773

3.9988 04.03

2.5

2.8765

PLN-USD

3.0

03.03

3.9776 02.03

3.9612 01.03

28.02

3.9757 25.02

3.8

3.9763

PLN-EUR

4.1

30

ARTS & CULTURE

www.wbj.pl

MARCH 7-13, 2011

Antiques on offer Criterion, a UK-based antiques and fine-art auction house, is holding its first sale in Warsaw. The auction comprises 250 lots from England, with prices starting from z∏.100 and reaching up to around z∏.10,000. Criterion will donate five percent of the sales proceeds to charity. ●

COURTESY OF JOSEPH PRITCHARD

Antique show March 7, 10 am to 6 pm Criterion Retail Salon & Auction House ul. Bokserska 64

COURTESY OF KIRAN RIDLEY

Bach to basics

Mysterious science theater

COURTESY OF EWA KRASUCKA

“Visualise – The Beauty of Science” Science Made Simple Kamienica Theater March 7, 6 pm March 8, 11 & 1:30 pm

“Bach Dances” The Polish National Ballet and Opera at Teatr Wielki March 9, 7 pm

Shadow”) these balletic performances take their cue from the music of Bach. ●

Comprising four different movements (“The Kisses,” “Concerto Barocco,” “The Green” and “In the Light and

Tragic love

Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl

Ania Dàbrowska Klub Stodo∏a March 8, 7 pm COURTESY OF TEATR NARODOWY

Andalusia is the setting for an exotic love story imbued with gypsy passion. At the heart of this opéra comique are femme fatale Carmen and Don José, the soldier who falls in love with her. ●

A chanting evening

Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

Vocalist, composer and producer Ania Dàbrowska is one of Poland’s most accomplished young artists, with four hit albums to her name. Her latest, “Ania Movie,” is a compilation of movie soundtrack covers authored by the likes of Simon & Garfunkel, the Beatles and Cher. ●

Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl 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

Gregorian March 16, 8 pm Palace of Culture, Congress Hall

Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl

COURTESY OF MAKROCONCERT

Headed by Frank Peterson, the multi-national “pop-meetsmonk” group Gregorian has enjoyed international success.

They’re best-known for their seven “Masters of Chant” albums, which marry the aesthetics of Gregorian chant with contemporary songs such as Metallica’s “Nothing Else Matters” or Pink Floyd’s

“Comfortably Numb.”

This time Gregorian is bringing its modern-gothic

sensibilities to Warsaw for an evening of somber yet joyful music. ●

have a little fun and learn something in the process – the group promises to take you on a journey of discovery that includes the inner-workings of tornadoes, rainbows and smoke rings. A perfect opportunity to ponder “how, why and what does it mean?” Hosted by the British Council. ●

Some content provided by the Warsaw Insider.

For more information on culture and entertainment in Warsaw this month, pick up the March issue.

Museums, galleries and venues in Warsaw

Dàbrowska in concert

“Carmen” The Polish National Ballet and Opera at Teatr Wielki March 10, 7 pm

This Cardiff-based physical theater group, which brings together projections and inventions with science demonstrations, offers entertainment for the whole family. The production creates a language all its own, one comprising sound, images and music rather than words, and it encourages audience

members to make their own discoveries through a “handson” conceptual approach.

Science Made Simple has won recognition at the Edinburgh Fringe Festival and has been lauded from other quarters as well. Inspiring the next generation of science prodigies – as well as those who want to

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

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul.

Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

State Archaeological Museum in Warsaw ul. D∏uga 52 (Arsena∏) www.pma.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 Pracownia Galeria ul. Emilii Plater 14 www.pracowniagaleria.pl

State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.website.pl Historical Museum of Warsaw Old Town Square 28-42 www.mhw.pl History Meeting House of Warsaw ul. Karowa 20 www.dsh.waw.pl Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Rempex Art and Auction House ul. Karowa 31 www.rempex.com.pl

Wilanów Palace Museum and Wilanów Poster Museum ul. St Kostki Potockiego 10/16 www.milanow-palac.pl www.postermuseum.pl

Royal Castle Pl. Zamkowy 4 www.zamek-krolewski.com.pl

Zachęta National Art Gallery Pl. Ma∏achowskiego 3 www.zacheta.art.pl

LAST WORD

MARCH 7-13, 2011

www.wbj.pl

31

Tech Eye

COURTESY OF APPLE

Condiments, iPads and the apocalypse

The iPad we expected

COURTESY OF CHRIS ROGER

In comparison, Apple’s iPad 2 conference last week required no plan of action whatsoever. No research, no forethought. Nothing. In fact, we barely even paid attention to it, since most of the information was expected.

It was a given that Apple, famed for competitiveness and relentless refinement of its products, would squidge out a new iPad within 14 months of debuting the original. The tablet market has exploded over the last year and the firm can’t afford to waste time.

Many of its competitors already boast front-and-back cameras, something

which the original iPad conspicuously lacks, and Apple is making up for that with its second-gen device. Other improvements include a respectable reduction of weight and thickness, the addition of a gyroscope and a faster, dual-core CPU. Apple’s not mucking about with this either.

The iPad 2 hits the US market this Friday at a $499 price point (the original iPad drops to $399); international sales start March 25.

A toy for the apocalypse The iPad 2 might have been the biggest news of last week, but it was far from the most interesting in Techeye’s view. Far cooler – particularly given our semper paratus attitude – was info about the Mega Hurtz.

What is this dangerous looking contraption? It’s a remote-controlled, “very rugged, tactical robotic platform” which is designed to climb stairs. It comes equipped with a modified, 100-round paintball gun and a camera. A night-vision camera.

This is where female readers will ask themselves “what’s the point?” and male readers will weep with joy. (If you’re a man and you’re not weeping at this very second, there’s something wrong with you.

Seek help.)

Now, if the Mega Hurtz seems too good to be true, that’s because it is.

The problem is that it doesn’t exist yet. Its designer, one Chris Roger, has registered his project on crowdfunding site Kickstarter and is seeking $15,000 to build a prototype. As of last Thursday, he had $1,212 in pledges, but hopefully some wealthy man-child out there will dry his eyes long enough to commit to funding COURTESY OF OBAKU

In Techeye’s opinion, it’s important to be prepared for anything.

Mutant chipmunk zombie apocalypse? Sushi chef extinction?

Dogs and camels living together in civil unions? Mass Mormon-toRastafarian conversions?

Elvis- C O Margaret Thatcher URTES Y love child revelation? OF HE IN We’re prepared for any of Z that.

Finding a genie in a bottle? Highly unlikely, we know, but it wouldn’t take us by surprise. We’ve had our three wishes at the ready for years: the ability to exude cupcake-scented pheromones, a mobile phone/boomerang and mindboggling new condiment technologies.

You name it, and we’ve probably thought up a plan of action. Even the far-fetched scenario of some idiot tossing a ham sandwich off a skyscraper, and the sandwich then striking a cop on the head, and the cop’s gun falling to the ground and accidentally discharging, and the bullet ricocheting off a dog collar – yep, Techeye is ready for that too. We’re prepared at all times to use the most annoying person within reach as a shield.

the bulk of the project.

After all, it’s a paintball tank designed to climb stairs. It would come in very handy in the event of a mutant chipmunk zombie apocalypse.

Time to play Two other bits of tech caught our eye last week. The first of these, the Obaku V140, is being touted as the world’s thinnest sports watch.

We like it for a couple of reasons.

It’s practical, for one, and the dark austerity of the design is a nice change from certain flashy, overpriced watch makers who shall remain unnamed.

Also, we kind of enjoy the word “Obaku.” It makes us want to invent an arena sport in which competitors launch wine-filled balloons at rodeo clowns and gazelles.

Hitting a clown would constitute a single Obaku; pasting a gazelle would be a double.

But we digress.

Pricing and availability of the V140 aren’t known yet – expect to hear more from the BaselWorld 2011 watch show later this month.

Ketching up to modernity And finally, something so momentous that it has literally altered Techeye’s lifestyle: new condiment technology from Heinz. That’s right, one of our wishes actually came true, and we didn’t even find a genie.

We’ll admit, Heinz’s “Dip & Squeeze” ketchup is technically a packaging innovation rather than a step forward for condiments themselves, but it’s epic.

How does it work? Well, the “Dip & Squeeze” container boldly challenges the would-be ketchup eater. “Dip? Or squeeze?”, it demands roguishly. And there’s no acceptable middle ground – you must dip or squeeze.

The “Dip & Squeeze” has forever changed the way we look at french fries. And that, despite our best efforts to be ready for anything, caught Techeye off guard.

Go figure. ●

Ever witnessed a Mormon-to-Rastafarian conversion? Let us know: techeye@wbj.pl

To advertise in WBJ’s classifieds section, contact Ms Agnieszka Brejwo, at (+48) 222-577-526 or abrejwo@wbj.pl