WBJ #46 2013

Who’s in, who’s out?

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WWW.WBJ.PL

Full coverage of Prime Minister Donald Tusk’s big government shakeup

VOLUME 19, NUMBER 46 • NOV 25 – DEC 1, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Clouds over Kiev COURTESY OF SKANSKA

REAL ESTATE

Ukraine leaves EU out in the cold ahead of the Eastern Partnership 13 summit in Vilnius

• Amazon’s huge BTS • Green investments • Tesco land sale 15-18

Is Germany ‘delusional’?

Analysis on why Germans are souring on the EU, but shouldn’t be 8

Plus: • Macroeconomic roundup • Dreamliner savings • COP19 wrap-up • Salaries rise • M&A deals

In this issue

Corruption bust

News . . . . . . . . . . . . . . . . . . . . . . .2-5 Business . . . . . . . . . . . . . . . . . . . .6-7 Opinion & Analysis . . . . . . . . . . .8-9 Finance & Economics . . . . . . .10-11 Cover Story . . . . . . . . . . . . . . . . . .13 Lokale Immobilia . . . . . . . . . .15-18 Markets . . . . . . . . . . . . . . . . . . . . .19 The List . . . . . . . . . . . . . . . . . . .20-21 Sports . . . . . . . . . . . . . . . . . . . . . . .22 Lifestyle . . . . . . . . . . . . . . . . . . . . .23

The “biggest corruption case in Poland’s history” sees dozens of officials arrested

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SHUTTERSTOCK

IPO rush Get ready for a raft of debuts on the Warsaw Stock Exchange before the year is up 7

NEWS

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Internet portal group o2, which is in the process of merging with peer Wirtualna Polska, has agreed on another acquisition. The company will take over Dobreprogramy.pl, the biggest Polish technology website which has some 4 million real users and some 7 million unique users. The o2 group is buying 51% in the company. The value of the transaction was not revealed, but according to sector experts it could exceed z∏.10 million.

Haier won’t build a factory in Poland The world’s biggest household appliances producer, China-based Haier, has officially withdrawn from plans to build a production plant in Wroc∏aw together with Spanish peer Fagor. The Spanish company had earlier filed for bankruptcy. Haier and Fagor announced their joint venture plans in September this year. ●

z∏.2.83 billion

Adam Hofman Adam Hofman, a key figure in the major opposition Law and Justice (PiS) party, has been suspended from the party caucus and stripped of his role as party spokesman after the Central Anti-Corruption Bureau (CBA) informed prosecutors of alleged irregularities in the MP’s annual financial declaration.

According to media reports, an audit carried out by the CBA led to the discovery of some z∏.100,000 in Mr Hofman’s bank account which had not been declared to the financial authorities. Under Polish law, all Polish MPs have to file an annual financial statement, listing all items worth over z∏.10,000.

During a flash briefing in the Sejm, Poland’s lower house

of parliament, Mr Hofman only admitted to not having paid tax on a loan he had taken out, but rebuffed all other allegations. Mr Hofman also said that the accusations brought against him are simply the ruling party’s veiled attempt at deflecting attention from the recent public-tender-rigging scandal, in which a number of arrests have been made. The CBA has called it “the biggest corruption case in Poland’s history.” (see story p. 5) The accusations come at the same time as the now-former Transport Minister S∏awomir Nowak received similar CBA treatment for apparently not declaring a watch worth some z∏.17,000, among other objects. Mr Nowak promptly tendered his resig-

is the potential value of the initial public offering of utility Energa on the Warsaw Stock Exchange.

nation and relinquished his parliamentary immunity, although it has since surfaced that the watch in question was nothing more than a fake bought for z∏.600.

However, unlike Mr Nowak, who retains the post as a party leader for the Pomorze region, Mr Hofman has been stripped of his leadership in the Konin region.

“We shall see whether the same standards are applied to Minister Nowak,” opposition leader Jaros∏aw Kaczyƒski told the press.

“We have always had high standards in PiS. … Adam Hofman has behaved honorably, even though this is merely a tax misunderstanding which will be resolved very quickly,” party colleague Mariusz Kamiƒski told TVN24.

Andrzej Duda, another PiS MP, said that he “would have done the same thing.”

Nevertheless, Prime Minister Donald Tusk commented on the CBA actions against Mr Hofman, underlining that “there can be no mercy, and there will be no mercy for anyone, no matter which party they represent, be it from the opposition or government.”

As leader of the party that engaged in the alleged tender corruption, however, Mr Tusk may end up regretting those words.

John Beauchamp

4.4% y/y is how much Poland’s industrial output grew in October, according to the Central Statistical Office.

113th was Poland’s rank in the Paying Taxes 2014 report compiled by PwC and the World Bank which compares 189 economies worldwide.

€187 is how much the average Pole spends on electronics every year, according to Gfk, a research firm.

Quote of the Week “My task is to pave the foundations for a development leap.”

Mateusz Szczurek, who was nominated for the post of finance minister by Prime Minister Donald Tusk last week.

Figures in focus Social distortion Social protection expenditure as percentage of country’s GDP in selected EU member states (for 2011) 35 30 25 20 15 10 5 0

On WBJ.pl Ukraine’s relations with the European Union Stratfor looks at the recent developments in Kiev.

Its relations with the EU and Russia, and why Slovakia might be the key to Ukraine's gas independence from Russian Gazprom. Log on to WBJ.pl to read the report.

Gr ee ce Ge r Un ma ite ny dK ing do m Hu n Cz ga ec ry hR ep ub lic Po la nd Slo va kia La tvi a* *

o2 acquires biggest Polish IT portal

Opposition spokesman in finance sting

nc e

Investment bank JP Morgan has placed three Polish companies on its Top Picks list for 2014 in Central and Eastern Europe. Copper miner KGHM, insurer PZU and lender Bank Millennium made it to the list of best CEE stock investments. At the same time, JP Morgan analysts recommended avoiding investment in the stock of lender Alior Bank and Bank Pekao, and of coal firm JSW.

Numbers in the News

rk*

Polish stocks among JP Morgan’s Top Picks

IN THE SPOTLIGHT

Fra

The first Polish scientific satellite, Lem, was launched last Thursday.

The satellite, named after renowned Polish science fiction writer Stanis∏aw Lem, was carried into space by Russian rocket Dnepr, together with 31 other satellites. It is a small cube-shaped satellite, which is some 20 cm long and weighs 7 kg. Lem will be used to photograph and study 300 stars.

NOVEMBER 25 – DECEMBER 1, 2013

De nm a

Poland sends its first satellite into space

WBJ ARCHIVES

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*Highest in the EU **Lowest in the EU

Source: Eurostat

Company index ACP Pharma................................................6 KGHM ..........................................................2 Air Liquide ..................................................6 KPMG ........................................................15 Alior Bank....................................................2 Kronos........................................................15 Amazon ......................................................18 Kulczyk Silverstein Properties..................16 Arx Equity ....................................................6 LHI..............................................................16

NOVEMBER

DECEMBER

Assa Abloy ..................................................6 LOT ..............................................................6 Aviva ............................................................6 Lufthansa ..................................................14 Bank Millennium ........................................2 Management Data System ........................5 Bank Zachodni WBK ....................10, 11, 15 Multico ........................................................7 Bastion Group..............................................6 Neinver ......................................................16 Boeing..........................................................6 Neuca ..........................................................6 Bogdanka ..................................................19 Newag..........................................................7 BP ................................................................6 BRE ......................................................15, 18 Noble Securities........................................19

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LUBLIN: GATEWAY TO EASTERN MARKETS

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TYDZIEŃ UŚMIECHU (WEEK OF SMILES)

CAM Media ..................................................5 Novatek........................................................6 Capital Park ....................................7, 16, 18 o2 ................................................................2

Event:

This event, organized by Prospects in Poland, will bring together top-ranking business and local government stakeholders to discuss key investment opportunities and future prospects for Lublin and eastern Poland.

Radisson Blu Centrum Hotel Warsaw prospectsinpoland.com

Event:

Hailed as one of Poland’s biggest student charity events, the Week of Smiles is an opportunity to get stocking-stuffers for this year, including books, CDs, as well as dance-class vouchers, theater and cinema tickets and much more.

Main Atrium, Warsaw School of Economics tydzienusmiechu.pl

Calendar

November/December

Location: Web:

Location: Web:

28-29 ADMINISTRATIVE DIRECTORS FORUM Event:

Location: Web:

This conference will address many administrative issues, including efficient car-fleet management, purchases and logistics, document management systems, innovative IT solutions and cost-optimization.

Novotel Warsaw Airport wydarzenia.nf.pl

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NEW EUROPE GRI 2013

Event:

The 9th annual New Europe GRI will bring together board- and C-level real estate investors, developers and lenders active in CEE. They will discuss the region’s challenges and opportunities in the sector.

Hyatt Regency hotel, Warsaw globalrealestate.org/NewEuropeGRI

Location: Web:

CBRE....................................................15, 16 Partner Pharma ..........................................6 Citroen ......................................................22 Patron Capital............................................18 Deka Immobilien-Global ..........................16 Pekao ................................................2, 6, 15 EasyLog ......................................................5 Penta Investments ......................................6 Energa......................................................2, 7 Pfizer............................................................6 Espirito Santo ............................................18 PGE ..........................................................6, 7 Exen ............................................................6 PGNiG ..........................................................6 Fagor............................................................2 PKO ............................................................15 Gazprom ......................................................2 PKP Cargo ..................................................6 Gfk................................................................2 PointPark Properties ................................15 Ghelamco ..................................................15 Polish Defense Holding ..............................6 Gide Loyrette Nouel ....................................6 Polskie LNG ................................................6 Goodman ..................................................18 PwC..............................................................2 Gorenje ........................................................7 PZU ..............................................................2 Haier ............................................................2 HP ................................................................5 Robyg ........................................................15 IBM ..............................................................5 Skanska ....................................................16 ING Bank ....................................................3 Syntaxis........................................................6 IT.Expert ......................................................5 Tesco ..........................................................15 JP Morgan ..................................................2 Warsaw Stock Exchange ............2, 7, 18, 19 JSW ........................................................2, 19 X-Trade Brokers ........................................19

NEWS

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

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Politics

Out with the old, in with the new In a much-anticipated move, Prime Minister Donald Tusk announced significant changes to his cabinet last week, following months-long speculation that a number of ministers would leave the government.

Finance Minister Jacek Rostowski will be replaced by Mateusz Szczurek, an economist for ING Bank in Poland, who according to Mr Tusk has the same view on economic policy as his predecessor.

“My task will be to ensure a development leap [in Poland].

On the one hand, not impeding it and on the other hand, this may be less popular, making sure the leap is not shortlived or a leap into a precipice,” said Mr Szczurek.

“A balanced fiscal policy is the foundation which many European countries lack. The army of unemployed in Western Europe can attest to this,” added Mr Szczurek, who wrote his doctorate thesis on financial crises.

El˝bieta Bieƒkowska, who is the regional development

COURTESY OF FLICKR/KPRM

In a late-autumn government shakeup, seven ministers have been replaced, among them Jacek Rostowski, the widely praised finance minister

Prime Minister Donald Tusk presenting his new ministers minister, will become deputy prime minister and head a new ministry which will incorporate the transport ministry following S∏awomir Nowak’s resignation last week.

“We have a huge challenge ahead of us to use the entire amount of EU funds over the next seven years, but in order for this to happen we need to take enormous steps,” she said.

Meanwhile, following the resignation of Digitization and

Administration Minister Micha∏ Boni, MEP Rafa∏ Trza-

who announced her decision to relinquish her post two

“Three ministers have served with Prime Minister Tusk for the full six years during which Civic Platform has been in power.” skowski was called in to push forward the country’s digital agenda. Higher Education Minister Barbara Kudrycka,

weeks ago, will be replaced by professor Lena KolarskaBobiƒska, who also served as an MEP following a 12-year

stint as head of Poland’s Institute of Public Affairs, a think tank.

“EU funds are a boon for academia in Poland, now we have to start spending this money wisely,” Ms KolarskaBobiƒska told the press on Wednesday.

Innovation and jobs Joanna Kluzik-Rostkowska will replace Krystyna Szumilas as Education Minister. Ms

Kluzik-Rostkowska kicked off her parliamentary career in the opposition party Law and Justice and then went on to lead the splinter group Poland Comes First. She left the party to become a member of Civic Platform in 2011. “Innovation will take off if the young generation will be well prepared for the job market,” she told journalists.

Additionally, Sports and Tourism Minister Joanna Mucha, who oversaw much of Poland’s preparations for the Euro 2012 soccer championships, will be replaced by Andrzej Biernat.

Environment Minister Marcin Korolec will be replaced by Maciej Grabowski. However, due to the Polish presidency of COP19, PM Tusk announced that Mr Korolec would remain as the government plenipotentiary for environmental negotiations to the UN Commission for Climate Change.

Three ministers have served with Prime Minister Tusk for the full six years during which Civic Platform has been in power. Foreign Minister Rados∏aw Sikorski, Culture Minister Bogdan Zdrojewski, and the above-mentioned Ms Bieƒkowska.

John Beauchamp, Remi Adekoya

Who’s in, who’s out? A look at the old and new faces in Donald Tusk’s government Ministry of Finance

MINISTRY OF FINANCE

Jacek Rostowski (OUT) Although he steered Poland safely through the global financial crisis with the country being the only EU nation to avoid a recession in 2009, Mr Rostowski had come under criticism in recent months for making what proved to be incorrect budget assumptions for this year and pushing for the transfer of private pension fund assets to the staterun Social Insurance Institution.

Ministry of Transport

Mateusz Szczurek (IN) The 38-year-old former ING Bank Âlàski chief economist was the biggest surprise of the cabinet reshuffle. Although previously unknown to the larger public, Prime Minister Donald Tusk called him “one the most gifted Polish economists … a specialist on macroeconomics who also knows how to count money.”

Mr Tusk added that Mr Szczurek shares his predecessor’s views on the economy.

MINISTRY OF TRANSPORT

S∏awomir Nowak (OUT) Mr Nowak had to resign from his position following allegations he had failed to fully disclose his assets in the annual financial declaration form all Polish MPs are obliged to fill out. His time as transport minister was marred by controversy over Poland’s poor road and railway infrastructure.

El˝bieta Bieƒkowska (IN) Ms Bienkowska, who has been running Poland’s regional development ministry since 2007 and has received much praise for her work, will now oversee an expanded ministry that will incorporate what used to be the transport ministry. She will also become deputy prime minister.

Ministry of EnvironmentMINISTRY OF ENVIRONMENT Marcin Korolec (OUT) As minister, Mr Korolec came under a lot of criticism for appearing hostile to foreign shale gas explorers in Poland.

He was accused of dragging out the process of regulating the energy sector. However, some criticized PM Tusk for dismissing Mr Korolec during the UN climate summit hosted by Poland.

Maciej Grabowski (IN) When presenting his nominee for environment minister Prime Minister Donald Tusk said he expects Mr Grabowski, who is a former deputy finance minister, to “radically hasten work regarding shale gas regulations.” For his part, Mr Grabowski said “speeding up shale gas exploration is my priority.”

Ministry of Education

MINISTRY OF EDUCATION

Krystyna Szumilas (OUT) Ms Szumilas was roundly criticized for poorly implementing a reform in Poland’s education system which aimed to encourage parents to send their children to school at age six . tion ministry.

Joanna Kluzik-Rostkowska (IN) Ms Kluzik-Rostkowska, a former journalist and one-time member of the ruling party’s biggest rival Law and Justice, will take over Poland’s educa-

MINISTRY OF HIGHER Ministry of Higher Education and EDUCATION Science Barbara Kudrycka (OUT) Lena Kolarska-Bobiƒska (IN) Ms Kudrycka had served as minisAt the press conference where ter for Higher Education and her appointment was announced, Science since 2007. She initiated Ms Kolarska-Bobiƒska, a univerreforms to Poland’s higher educasity professor, said “academia was tion system for which she received the biggest winner in the [2014praise. However, she recently said she was 2020] EU budget; we must learn how to spend “tired” and needed a rest. that money effectively.”

MINISTRY OF SPORT AND TOURISM Ministry of Sport and Tourism Joanna Mucha (OUT) Andrzej Biernat (IN) Although successful in preparing Mr Biernat is a former physical Poland for the Euro 2012 soccer education teacher who often championships, Ms Mucha came plays soccer with the prime under heavy criticism for her apparminister. He is also apparently ent lack of knowledge about sports. very interested in baseball. Mr She was also criticized for the way her ministry Biernat had been angling for the sports minisspent some of the money designated for the event. ter post for several years.

Ministry of Administration andAND Digitization MINISTRY OF ADMINISTRATION DIGITIZATION Micha∏ Boni (OUT) Rafa∏ Trzaskowski (IN) Mr Boni was once hailed as a The 41-year-old Mr Trzaskowski bright star in Mr Tusk’s governis a rising star in the ruling party. ment but in recent months Elected to the European Parliaappeared to run out of steam. It is ment in 2009, he was widely said he will likely run for a seat in praised for being one of the most the European Parliament next year. active Polish MEPs in Brussels.

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NEWS

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Budget deficit at z∏.39.46 bln Poland’s budget deficit amounted to z∏.39.46 billion after October 2013, the Ministry of Finance said in a statement. A month earlier, the deficit amounted to z∏.29.64 billion. Budget expenditures stood at z∏.271 billion or 82.8% of the z∏.327.29 billion projected in the 2013 budget law. Revenues amounted to z∏.231.55 billion or 84% of the z∏.275.73 billion recorded in the full-year budget.

Core inflation at 1.4% Core inflation, excluding food and energy prices, amounted to 1.4% yearon-year in October compared to 1.3% in September, the National Bank of Poland announced. The monthon-month figure was -0.1%. Inflation excluding state-controlled prices amounted to 0.5% y/y compared to 0.7% in September and inflation excluding the most volatile prices amounted to 1.5% y/y compared to 1.6% in September, the NBP also said. ●

NOVEMBER 25 – DECEMBER 1, 2013

News analysis

Will cabinet reshuffle save PO? Bieƒkowska, who is the regional development minister. She will now become deputy PM and her ministry will incorporate the Transport Ministry following S∏awomir Nowak’s resignation two weeks ago.

Vote-winning material?

Remi Adekoya rime Minister Donald Tusk has seen his popularity tank in recent months. The party he leads, Civic Platform (PO), is hardly in better shape.

The latest TNS Polska poll showed the ruling party trailing its biggest rival, opposition party Law and Justice, by 9 percentage points. Additionally, recent weeks have seen financial scandals come to light involving PO politicians.

These are not happy days for the PM and his party.

And so Mr Tusk has decided his government needs a makeover, and has replaced seven ministers including the man who has been in charge of Poland’s finances for the past

P

six years, Jacek Rostowski.

The Ministry of Environment, Ministry of Sports and Tourism, Ministry of Higher Education and Science, Ministry of Administration and

These changes have nothing to do with policy and everything to do with PR. The government will likely maintain its current course, but Mr Tusk desperately needs to reverse souring perceptions of his government. So will the changes he has made be enough to do the trick?

Ms Bieƒkowska is by far the most competent minister in the current government and

“ Mr Tusk desperately needs to reverse souring perceptions of his government.”

Digitization and Ministry of Education also will all have new heads once the president officially confirms the appointments.

However, the biggest winner of the day was El˝bieta

thoroughly deserves the promotion. But she is a technocrat at heart and has up till now shown little trace of charisma or political guile.

Although she could help the PM somewhat increase his

support among women, she is unlikely to sway large hoards of voters to once again support the ruling party. People often say competence is what they seek above all in their politicians, but the truth is that a likable cabinet minister will win you more support than one who is “merely” competent.

Joanna Kluzik-Rostkowska, who will now be education minister, is also well-prepared for the job. She is eloquent, intelligent and comes across as a warm yet decisive person.

She’s a vote-winner for sure.

The only problem is that the education minister is usually not a big news-maker so it is unclear what her impact will be on the ruling party’s poll numbers.

Rafa∏ Trzaskowski, a 41year-old rising star in PO who will head the Ministry of Administration and Digitization, is definitely a significant political asset. He manages to combine intelligence, competence and good looks without coming off as arrogant. In the digital age we live in, he is likely to be in the news quite often due to the ministry he will head. He will almost certainly help the ruling party improve its standing among young vot-

ers and I predict Mr Trzaskowski will in no time become a darling of the Polish media.

The rest of the new ministers, including Mateusz Szczurek, who will head the all-important finance ministry, remain big question marks as they were previously largely unknown to the public and political observers.

What of the PM himself?

Then there is the question of whether the prime minister himself can once again endear himself to Poles and regain his lost popularity. I think this is unlikely. When people get fed up of a politician, they usually stay that way.

That, however, does not mean that the PM’s goose is cooked for good. The bellicose and often exasperating leader of the nationalist Law and Justice, Jaros∏aw Kaczyƒski, is disliked by enough Poles that Donald Tusk is still likely to win a headto-head confrontation with him on any given election day.

If Mr Tusk’s new ministers do relatively well and avoid any scandals or major cockups, then PO still has every chance of winning the next parliamentary elections scheduled for 2015. ●

BUSINESS

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

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Domestic

Some high-ranking officials have been indicted in connection with the scheme As many as 20 people were arrested by the Central AntiCorruption Bureau (CBA) last week in relation to a major corruption case involving the IT unit of the former Ministry of Interior and Administration. All the detainees have been charged with corruption and tender collusion.

The alleged corruption has to do with tenders conducted in the Ministry of Foreign Affairs and in GUS with the help of the former Interior Ministry’s IT unit.

The CBA has called it “the biggest corruption case in

Poland’s history,” and has already announced that further arrests will be made in connection with the case.

Some of the detainees include the vice president of Poland’s Central Statistical Office GUS and the head of the Foreign Affairs Ministry’s procurement office.

Investigations in the corruption case have been ongoing for over two years. In October 2011, seven people were arrested, followed by a further two in January 2012 – both former sales executives at IBM and HP. They were charged with offering and accepting bribes in exchange for winning public tenders for IT systems, valued at z∏.1.5 billion in total.

SHUTTERSTOCK

Prosecutors charge 20 in bid-rigging scandal

Twenty arrests have already been made, with more on the way A tangled web One of the tenders in question was for organizing conferences as part of Poland’s EU presidency. Its value was z∏.34 million. According to the prose-

cution, some of the companies participating in the tender had access to unrevealed details of the tender and could tailor their respective offers to receive a better score.

The tender, whose winner was a consortium comprising “EasyLog, CAM Media and IT.Expert,” was surrounded by controversy almost from the get-go, as only one out of the

five companies which made it to the final round had experience in event organization, which was the subject matter of the contract.

What also raised some eyebrows was the fact that some of the finalists in the tender were interconnected. For example, one of the companies in the winning consortium, IT.Expert, had an 80 percent stake in a rival firm, Management Data System, a dataarchiving company. However, the most suspicious part of the tender was the sudden withdrawal of four competitors out of the top five, which left the fifth company the uncontested winner.

Beata Socha, Kamila Wajszczuk

UN Climate Summit

T-shirts, walkouts and firings at COP19 in Warsaw

The UN climate summit in Warsaw (COP19) looked to be a disappointment after participants failed to reach a compromise before the scheduled end of the conference. As WBJ went to press, the summit which was supposed to end last Friday afternoon was still ongoing without any decisions in sight.

But with negotiations dragging on, many got fed up with the slow pace and quit the talks. Last Thursday, some 800 NGO representatives, including environmental groups such as WWF and Greenpeace, left the talks accusing the summit host Poland of deliberately slowing down the negotiations.

The fact that Marcin Korolec, the summit’s president, was dismissed last week as Poland’s minister of environment, (see story, p. 3) only fueled environmentalists’ rage.

Despite his firing, Mr Korolec will remain in his post as a COP19 president until its close in 2014.

COURTESY OF THE UNITED NATIONS CLIMATE CHANGE CONFERENCE

The climate conference in Warsaw was supposed to set a timetable to curb countries’ emissionsreduction targets before the 2015 Paris conference

Bone of contention

COP19 president Marcin Korolec was dismissed from his post as Poland’s environment minister before the conference was over “Civil society groups left the talks … in part because the Polish government is too busy promoting the coal industry to fulfill its obligations to the international community,” said Ruth Davis, political director at Greenpeace last Thursday.

A day before that, the representatives of 133 countries (mostly developing nations led

by China) also walked out of

the UN Conference, when delegates from the EU, Australia, the US and other developed countries insisted that the question of who should pay compensation for extreme climate events be discussed only after 2015.

The move was described by some experts as a stalling tactic, as China, the world’s biggest coal consumer, is not keen on curbing its CO2 emissions.

Most EU countries, along with the US and many developed and developing countries, have agreed to set out their future emissions targets early in 2015. But its biggest opponent was Poland, one of the biggest coal-hungry countries in the world. One anonymous EU official told the BBC that “Poland was projecting its own interests onto the negotiations. Poland has long been resistant to tough emissions targets within the EU.” “Things are in a serious state of disarray, with delegates reporting episodes of bad-faith bargaining, industrialized

countries demanding previously agreed upon decisions to be re-opened,” Canadian MP Elizabeth May posted on her Twitter account, calling the summit “the worst in history.”

Losing hope But Poland was not the only country to receive bad press.

The Chinese lead negotiator, Su Wei, said that some of the actions of other participants were clearly undermining the negotiating process.

“When one major developed country announced that it was backtracking on emission cut commitments previously made, and another developed country gave multiple signals that it was utterly unwilling to take the UN climate process seriously, the integrity of the talks was further jeopardized,” he was quoted as saying by international NGO Third World Network.

The countries that Mr Su was referring to were most likely Japan, which has back-

tracked on its target of cutting emissions by 25 percent by 2020 and Australia, whose delegates reportedly “wore tshirts and gorged on snacks” during important talks. Canberra didn’t even send a minister to the talks.

At some point even the UN Secretary General Ban Ki Moon seemed to have given up any hope of the talks ending in success. “I understand that many countries still may not be ready, for their political or economic considerations,” he said. “We may not need to wait until everybody declares their positions. So whoever can, should do so by September next year.”

Next year’s UN climate summit will be held in Lima, Peru. If the countries are not able to agree on the timetable in Warsaw, they will be under even more pressure in South America to find the solution before the crucial summit in Paris in 2015.

Jacek Ciesnowski

6

BUSINESS

www.wbj.pl

NOVEMBER 25 – DECEMBER 1, 2013

State-controlled companies

PGE and PKP Cargo CEOs resign Krzysztof Kilian (PGE) and ¸ukasz Boroƒ (PKP Cargo) have both left their respective firms’ helms, in what has become a recurring theme for Polish statecontrolled companies COURTESY OF PKP CARGO

¸ukasz Boroƒ, former CEO of PKP Cargo commenting on the sackings.

She added that their performance was “unsatisfactory,” without revealing further details.

PGE has been at loggerheads with the government this year over the planned expansion of its coal-fired power plant in Opole. At first the company withdrew from the project, saying that it was unprofitable for shareholders.

Ironically, the Treasury, PGE’s biggest shareholder, overturned the decision, forcing the company to sign a letter of intent to start the project.

Commenting on Mr Kilian’s decision, Prime Minister Don-

ald Tusk said that he had not spoken to him “in months,” but that the nation’s energy security should be the top priority of all state-controlled energy companies.

Price too low?

On the same day, the CEO of the second-biggest railway freight operator in the EU, ¸ukasz Boroƒ, resigned from his post citing “personal reasons.” His duties have been taken over by the company’s CFO Adam Purwin until a new CEO is appointed. Mr Boroƒ merely pre-empted his own firing as the company’s management board was expected to

Jacek Ciesnowski

A total of 28 M&A deals were announced in the third quarter of 2013, with the aggregate value of the top ten reaching €427 million – not an overly impressive figure considering the fact that the five largest deals in Q2 were worth more than double this, according to a report compiled by Exen, Bastion Group and Gide Loyrette Nouel. Healthcare was the leading sector in third quarter M&A activity with the top three acquisitions totaling €178 million.

In August, just days after announcing the €15 million acquisition of 29 Partner Pharma stores in Poland, Penta Investments and WSE-listed pharmaceutical wholesaler Neuca paid €103 million for ACP Pharma, a Polish pharmacy chain.

To a certain degree, corporate-led M&A activity in Poland is tied to the IPO market, which has been experiencing a slump over the last several quarters. However, with acquisitions recently announced by Assa Abloy, Pfizer, Novatek and Air Liquide, as well as joint venture deals involving Aviva and BP, the next quarters could very well prove more eventful than recent months.

For the remainder of this year and into 2014, dealmakers

in Poland are expected to maintain a focus on mid-market targets, with a preference for the banking, health care and telecommunications sectors.

“Deal volumes were suppressed compared to the peak in 2008 and we saw a drop in value from Q2 to Q3 but all three quarters combined showed an upward trend,” said Przemys∏aw Szczepaƒski, a partner at Syntaxis.

“I am cautiously optimistic next year will see more deal activity, we are already seeing a better quality of transactions in recent months but those now need to translate into a higher number of deals,” Mr Szczepaƒski added.

A better 2014 Mr Szczepaƒski said he expected deal activity to be up to in the first part of 2014 and that “strategic investors are once again becoming buyers.”

Jacek Korpala, a co-managing partner at Arx Equity also said he expects more deal activity next year. “From the deals we can already observe in the pipeline, 2014 looks to be a better and more eventful year for M&A activity. Investors seem to be regaining confidence in the market.”

Remi Adekoya

Airlines

LOT saves z∏.12 million thanks to Dreamliners

COURTESY OF BOEING

Two CEOs of state-controlled firms have left their posts. Even though they officially resigned of their own accord, the circumstances of their departures indicate they had little, if any, say in the matter.

Krzysztof Kilian, the CEO of PGE, the country’s biggest utility, resigned last week saying that his decision was based “on important grounds – in particular related to changes in the management board dated October 25, 2013 and its consequences.”

Mr Kilian was referring to the dismissals of two vice presidents of the company’s management board, Bogus∏awa Matuszewska and Wojciech Ostrowski.

“The dismissals are the effects of the conclusions we’ve come to regarding their performance over the past year,” Ma∏gorzata Dec, chair of the firm’s supervisory board, said,

make a decision to that effect during last Monday’s meeting.

Mr Boroƒ had been at the helm of the state-controlled giant since January 2013. He was responsible for making PKP Cargo a publicly listed company. The company’s stock debuted on Warsaw Stock Exchange last month.

After the firm’s shares soared over 20 percent immediately upon its debut, the company was criticized for setting its flotation price too low.

Some even estimate that the Treasury could have earned 20 percent more on the flotation had the price been set higher.

The two recent resignations follow a series of leadership changes in Polish state-controlled firms.

Earlier this month the supervisory board of Polish Defense Holding dismissed the company’s chief executive Krzysztof Krystowski, while gas giant PGNiG dismissed the CEO of its subsidiary EuRoPol Gaz, Mieczys∏aw Dobrut, and his deputy Zdzis∏aw Jamka from their posts. Rafa∏ Wardziƒski, CEO of Polskie LNG, the company responsible for building an LNG terminal in ÂwinoujÊcie, was also given the boot.

M&A activity to take off next year

The Dreamliner’s low fuel consumption is helping the company save millions

Despite initial hiccups, LOT’s Dreamliners are proving highly efficient and economic Poland’s national airline LOT has already made savings thanks to its use of Boeing 787 Dreamliner planes, despite the machines only being in operation for several months after a series of technical difficulties.

The company said that thanks to the aircraft’s efficiency, it has already saved z∏.12 million on fuel.

The Dreamliner allows for

faster travel and burns less fuel, Barbara Pijanowska-Kuras, a LOT spokesperson, explained.

According to the company’s data from June and July, LOT’s Dreamliners were 90 percent full.

Out of the 1,300 times that LOT Dreamliners flew between June and October, only 50 flights were postponed due to technical problems, meaning that 96 percent of all flights went without incident, a similar rate compared to LOT’s other aircraft.

“We should remember that

[the Dreamliner] is a completely new machine with many innovative solutions. It is still experiencing ‘growing pains’ which are to be expected during the first two years of the machines’ use,” explained Ms Pijanowska-Kuras.

LOT now has five Dreamliner planes and will receive a further three no later than 2017. The company is still in talks with Boeing about compensation for the grounding of the aircraft earlier this year.

Kamila Wajszczuk, Jacek Ciesnowski

NOVEMBER 25 – DECEMBER 1, 2013

BUSINESS

www.wbj.pl

7

Stock exchange

A number of companies want to debut on the WSE before the end of the year So far, IPO numbers on the Warsaw Stock Exchange have been worse than in 2012, both in terms of volume and value.

This year, 17 companies have debuted on the main WSE index (compared to 19 in 2012), with their offers worth some z∏.2 billion total, as opposed to z∏.3.4 billion in 2012. But this could all change thanks to the much-anticipated IPO of energy firm Energa, currently scheduled for December 11.

One of the biggest utilities in Poland, Energa has just recently announced the details of its public offering. The State Treasury is selling 141.52 million shares (a 34.2 percent stake) in the energy firm with the maximum price set at z∏.20 apiece.

This would bring the value of the flotation to z∏.2.83 billion.

Its value could even be higher, as the Treasury wants to sell some of the shares to institu-

tional investors. Poland’s largest utility, PGE, has already expressed interest in buying its peer’s shares.

Energa is one of the biggest vendors of clean energy in Poland. In 2012, 36 percent of renewable energy produced in Poland was sold by the company. Energa’s power plants can produce 1.3 GW of energy. Last year it sold some 28 TWh of electricity.

Energa’s listing alone would put the overall value of IPOs in 2013 ahead of last year’s figure, although it would still be a far cry from the levels recorded in previous years (z∏.8.5 billion in 2011 and z∏.15.8 billion in 2010).

Other than in 2012, the last time the value of IPOs on the WSE did not exceed z∏.5 billion was in 2006.

Others eager as well But besides Energa, there are other companies planning their IPOs before the year is up. Railway-carriage producer Newag, owned by Zbigniew Jakubas and his company Multico, plans to sell up to 21.8 million shares (48.4 percent) in the company,

with the maximum price set at z∏.19 per share, which would place the IPO’s value at z∏.414 million.

In addition to this, real estate developer Capital Park has also announced the details of its IPO (see story, p. 18). The company wants to sell a 20 percent stake (21 million shares) at z∏.10 per share, meaning that its value would amount to z∏.210 million. The IPO is planned for mid-December.

Slovenian household appliances maker Gorenje is also gearing up for a listing on the WSE. The company’s shareholders have already approved the plan. Gorenje will offer up to 10.4 million new shares at €4.31 apiece, which puts the IPO value at up to €44.8 million.

Gorenje’s shares will be offered first to the company’s existing shareholders and possibly also to investors in Poland.

The company is already listed on the stock exchange in Ljubljana. The IPO is currently palnned for December 30.

Kamila Wajszczuk, Jacek Ciesnowski

MATEUSZ GO¸ÑB/WBJ

End of the year rush to WSE

The WSE could see several new entrants before the end of the year Less than last year Top 10 IPOs by value 2013 PKP Cargo

2012 z∏.1.4 billion

Alior Bank

z∏.2.1 billion

Polski Holding NieruchomoÊci

z∏.238.6 million

ZE PAK

z∏.681.5 million

Aviaam Leasing

z∏.112.2 million

Vantage Development

z∏.184.2 million

MLP Group

SOLAR Company

z∏.156 million

Tarczyƒski

z∏.45 million

AB Inter Rao

z∏.96.7 million

Mabion

z∏.39 million

ATM Systemy Informatyczne

z∏.96.3 million

OT Logistics

z∏.30 million

Grupa Nokaut

z∏.31.2 million

z∏.16 million

Work Service

z∏.30.7 million

KDM Shipping

z∏.25.8 million

Czerwona Torebka

z∏.18.8 million

Peixin International Group Global Cosmed Platinum Properties Group

z∏.90.6 million

z∏.11.4 million z∏.7.5 million

8

www.wbj.pl

OPINION & ANALYSIS

NOVEMBER 25 – DECEMBER 1, 2013

Delusional Germany Marcel Fratzscher

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In

recent weeks, Germany’s representative on the European Central Bank’s governing council has expressed strong disagreement with the ECB’s decision on November 7 to cut its benchmark interest rate. Now the European Commission has opened an investigation into whether or not Germany’s huge current-account surplus is causing economic damage in the European Union and beyond.

This investigation and criticism of Germany’s export-based growth model has incited outrage in Germany. Is Germany becoming a scapegoat for Europe’s problems, or is it really out of step with the EU and the world economy?

Germans have long been among the most Europhile of peoples, but their mood has gradually been turning against Europe and its common currency, the euro. An openly antieuro political party has emerged, and, though it did not make it into the Bundestag in September’s general election, it has fertile ground to grow.

This is tragic, because Germany should be driving the development of a persuasive vision for Europe’s future.

Three illusions Three illusions are responsible for the German public’s growing aversion to European integration – and for many Germans’ failure to understand that Germany has the most to lose from the euro’s collapse.

For starters, Germans are convinced that they have weathered the crisis extraordinarily well. Although

GDP growth slowed sharply in 2009, it recovered quickly; Germany’s economy is now 8 percent larger than it was then. Likewise, the unemployment rate has fallen throughout the crisis, reaching 5.2 percent, the lowest level since reunification. And the German government’s commitment to fiscal consolidation enabled it to achieve a surplus last year; by 2018, the fiscal surplus is expected to amount to 1.5 percent of GDP. Such figures have fueled the perception that Germany’s economy is booming, and that its future would be even brighter if the euro zone’s weaker economies were not dragging it down. But, viewed from a longerterm perspective, Germany’s economic performance is actually rather disappointing. A DIW Berlin study shows that, since the monetary union’s launch in 1999, Germany has recorded some of the euro zone’s lowest rates of GDP and productivity growth.

Moreover, real wages have barely risen; for more than 60 percent of German workers, they have actually fallen. Wages have risen substantially more elsewhere in Europe, despite the depth of the economic crisis.

Given that Germany also has one of the euro zone’s lowest investment rates, its GDP growth is likely to be among Europe’s slowest in the coming years, making significant wage increases unlikely.

Of course, Germans are not entirely wrong; the crisis in Europe’s periphery is weakening Germany’s economic-growth prospects. But they should remember that, only a decade

ago, Germany was the “sick man of Europe,” and that strong growth and dynamism elsewhere in Europe contributed substantially to its recovery.

And they must recognize that Europeans are all in the same boat; what is good for Europe is good for Germany, and vice versa.

Deep mistrust The second illusion that bothers many Germans is that other European governments are after their money. As a result, Germany has

“Europeans are all in the same boat; what is good for Europe is good for Germany, and vice versa.” been reluctant to engage fully in the debate about a European banking union, owing to the belief that it would expose German taxpayers to major risks and unknown costs through bank restructuring and deposit insurance. Similarly, Germans have been critical of the ECB’s monetary-policy instruments, especially its “outright monetary transactions” program, with opponents appealing to the German constitutional court to invalidate the OMT scheme’s conditional purchases of euro zone government debt.

Such opposition seems counter-

intuitive, given that the ECB’s mere announcement of the OMT program calmed sovereign-debt markets and reduced borrowing costs in peripheral countries. Indeed, simply by providing a credible backstop against the risk of a euro zone collapse, the scheme has become one of the most successful measures introduced by any central bank in recent history.

The most reasonable explanation for Germany’s response is that many Germans harbor a deep mistrust of other European governments, and thus believe that they cannot be counted on to avoid insolvency.

No euro crisis Germany’s third illusion is that the current crisis is ultimately a euro crisis. While it is tempting to scapegoat the common currency, the fact is that the euro has brought huge economic and financial benefits to Germany, owing to increased trade, greater price stability, more competition, and improved efficiency.

Furthermore, the euro zone crisis does not have the characteristics of a currency crisis. The euro is not overvalued or poorly managed, which would undermine competitiveness and erode confidence in the currency’s long-term stability. On the contrary, the remarkable resilience of the euro’s exchange rate vis-a-vis all other major currencies demonstrates enduring faith in the euro’s viability and stability.

What financial markets no longer believe is that governments will do what it takes to rescue Europe from the crisis.

The argument that the crisis stems from the euro zone not being an optimal currency area is similarly flawed. No economy is an optimal currency area; there are substantial differences among US states and even across Germany’s Länder. The main challenge to the euro’s longterm viability is the lack of political will to implement complementary policies, such as a banking union and a credible fiscal union.

While the euro zone economy’s outlook has improved, it is not out of danger. A deep crisis in any member country is likely to become contagious. Given Germany’s trade and financial openness, as well as the leadership responsibility that accompanies its economic strength, it would face particularly high costs.

Against this background, Chancellor Angela Merkel’s third government, once it is formed, must rid the country of the illusions that are preventing it from playing a proactive and constructive role in ensuring that Europe functions as a union. Such an undertaking requires, above all, the restoration of trust among European countries.

While that will undoubtedly be difficult to achieve, it is Germany’s only real option – and Europe’s real hope. ● Marcel Fratzscher is president of the German Institute for Economic Research (DIW Berlin) and professor of macroeconomics and finance at Humboldt University Berlin.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

OPINION & ANALYSIS

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

9

Europe’s elusive growth consensus

Jean Pisani-Ferry

In

inequality. They fear that, rather than delivering the promised benefits, painful reforms would tilt the distribution of power and income in favor of employers.

Environmentalists and labor advocates have a point when they insist that growth should not be the ultimate goal of economic policy.

They are right to point out that its quality – in terms of preservation of the environment, work conditions, or income distribution – matters, too. They are even right to be suspicious that an overriding emphasis on growth could be used as an excuse for questionable social choices. But they are wrong to conclude that their own interests would be better served by neglecting growth. Stagnation is not a solution to any problem; on the contrary, it entails serious risks.

most European countries, GDP per capita is currently lower than it was six years ago. In some cases, like Greece, Italy, and Ireland, it is more than 10 percent lower. Even in Germany, where it is higher, average growth over the last six years has been anemic.

It is hard to overestimate the adverse consequences of this state of affairs. The European Union has lost six million jobs since 2008.

Governments have been struggling with the impossible task of balancing their books despite dwindling revenues. And, worst of all, companies have begun discounting Europe in their investment plans, paving the way for a permanent loss of aggregate momentum.

Lip service Goals undermined

SHUTTERSTOCK

In such a situation, growth ought to be at the top of the policy agenda.

But, while the EU and national governments pay lip service to it, they have not devised an effective economic-revitalization strategy.

In the euro zone, the hope is that calmer sovereign-debt markets, slower fiscal adjustment, and supportive monetary policy by the European Central Bank will help trigger a sustained recovery. This may be the case, but the recovery that is now expected will not suffice to offset the adverse consequences of the last six years. The productivity gains that failed to materialize during this period are lost forever: many people who have experienced long-term unemployment or have left the labor force are unlikely to return to work, and Europe will be lucky if productivity growth accelerates somewhat and approaches pre-crisis trends – better than nothing, but hardly satisfactory.

Things are completely different in the United States, where growth is on everyone’s agenda: the Federal Reserve is targeting an employment rate below 6.5 percent, and companies have used the recession as an opportunity to reorganize and become more efficient. The lasting adverse effects of the 2008 shock are likely to be much smaller there than in Europe.

So, why is Europe not doing

more to return to growth? European leaders would probably say, first, that they have been forced to address more urgent matters since the Greek crisis erupted in 2010.

But, while it is true that much policy

“Some have become convinced that … economic growth does more harm than good” attention has been devoted to fighting financial fires, this is not a sufficient answer: since the summer of 2012, when ECB President Mario Draghi convinced markets that the euro zone would not break up, Europe has had enough breathing space to address the growth impera-

tive, but has barely done so.

Lack of consensus The second explanation is that there is agreement on the goal but not on the means. Again, there is some truth to this. Keynesians argue that Europe would grow if only policy were focused on generating aggregate demand; they blame precipitous fiscal consolidation and insufficiently aggressive monetary easing for the loss of momentum. Their opponents, by contrast, see structural weaknesses and internal imbalances as the major impediment to growth; for supply-siders, it is the slow pace of economic and social reforms that is to blame.

This lack of consensus on the nature of the problem arguably hinders agreement on a solution. But, again, this is not an entirely convincing explanation. Disagreements such as this have arisen before – and not only in Europe. Given sufficient will,

there could be ample room for compromise. As the Nobel laureate economist Paul Samuelson famously said, the reason we have two eyes is to keep one on supply and the other on demand.

No desire?

A deeper, more worrying explanation is that Europe does not have a strong desire for growth. In fact, some have become convinced that, given the environmental consequences, economic growth does more harm than good and that the crisis should be regarded as an opportunity to shift to a more frugal economy. The growth agenda, according to this view, is a Trojan horse for ecological neglect – for example, through more businessfriendly environmental regulation or shale-gas exploration.

Others perceive calls for growth as a pretext to weaken employment protection or accept greater income

What steady-state advocates forget is that stagnating or declining incomes would heighten resistance to higher taxes on fossil fuels and delay investment in green technologies (and thus the transition to new industries and the creation of better jobs). Moreover, lack of growth would almost certainly result in the end of the vaunted European social model. In the end, the economic outcome envisaged by the growth skeptics would undermine the very goals they are fighting for.

To end the current stalemate and unlock its economic potential, Europe needs a new “compact” (to use the current jargon) that addresses simultaneously the demand shortfall, impediments to productivity gains, and the quality of growth.

Designing and implementing such a package is far from impossible – several elements are already available.

What is lacking is a political platform on which Europe’s necessary growth conversation could take shape. It is urgently needed. ● Jean Pisani-Ferry teaches at the Hertie School of Governance in Berlin and serves as the French government’s commissioner general for policy planning.

Copyright: Project Syndicate, 2013.

Project-syndicate.org

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FINANCE & ECONOMICS

NOVEMBER 25 – DECEMBER 1, 2013

Macroeconomic roundup

Industrial production increases Production in the construction sector declined by 3.2 percent y/y and grew by 14.3 percent m/m.

In an e-mailed comment, BZ WBK economists wrote that the data do not significantly change their assessment of the economic outlook. “[A] moderate recovery is underway, it is likely that GDP growth will reach 2%YoY in Q4 and will be near 3% in 2014,” they wrote.

Industrial output in Poland grew by 4.4 percent year-on-year and by 6.0 percent monthon-month in October, Poland’s statistics office said last week. Seasonally adjusted growth of industrial production amounted to 3.8 percent y/y and 0.2 percent m/m.

Economists surveyed by the Polish Press Agency had expected industrial output to rise by 4.7 percent y/y and by 6.3 percent m/m in October.

Positive territory Poland’s industrial output growth (%), October 2011-October 2013

Source: Central Statistical Office

11.0 6.6 2.2 -2.2 -6.6 -11.0

OECD raises GDP forecast for Poland will surpass 2 percent only in 2015. The unemployment rate may start dropping in late 2014. The central bank should start raising interest rates starting from mid-2014, in view of inflation pressure expected to grow in 2015.

The public finance deficit will be at 3.1 percent of Poland’s GDP in 2015, the OECD said. The pension system reform will reduce public debt and improve the state of public finances, but future obligations of the pension system will grow.

The Organisation for Economic Co-operation and Development expects Poland’s GDP to grow by 1.4 percent in 2013, 2.7 percent in 2014 and 3.3 percent in 2015, according to the latest economic projection issued by the institution. In May the OECD had expected Poland’s economic growth to be 0.8 percent in 2013 and 2.2 percent in 2014.

GDP growth will gain in momentum over the next two years, the OECD said, with exports and domestic demand both increasing. Inflation will remain low and

1.4%

Less construction, more permits In October there were 14,425 housing units completed in Poland, 6.5 percent less than in October 2012 and 19 percent more than in September 2013, according to data published by statistics office GUS on Tuesday. In January-October 2013, the number of units completed was 117,647, marking a fall of 2.1 percent year-on-year.

The construction of 13,736 housing units was launched in October, an increase of 34.2 percent y/y and by 9.7 percent monthon-month. In January-October, this number fell by 12.1 percent y/y and stood at 111,644, GUS said.

The number of housing units for which building permits were issued amounted to

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12,208 in October. It fell by 8.1 percent y/y and by 7.5 percent m/m. In January-October, this number was 116,978 and fell by 17.2 percent y/y, the statistics office said.

Money supply grows Poland’s M3 money supply grew by 0.9 percent month-on-month in October and stood at z∏.955.8 billion, according to preliminary data published by the National Bank of Poland on Thursday.

The volume of cash in circulation remained stable compared to September and stood at z∏.113.2 billion. Adjusted for non-transactionrelated changes such as exchange rate fluc-

tuations, the amount of bank deposits held by households grew by 0.7 percent m/m to z∏.531.6 billion. Corporate deposits grew by z∏.3.6 billion to z∏.192.41 billion.

At the same time, corporate debt increased by 0.6 percent in real terms and lending to households grew by 0.5 percent.

Individuals had z∏.560.4 billion in loans at the end of October.

HICP inflation at 0.7 percent y/y in October HICP inflation in Poland was at 0.7 percent year-on-year and 0.1 percent month-onmonth in October 2013, the EU’s statistics office Eurostat announced. In September the annual rate was 0.9 percent.

Throughout the EU inflation was at 0.9 percent y/y in October, while in monthly terms prices fell by 0.1 percent. In the euro area inflation was at 0.7 percent y/y and declined by 0.1 percent m/m.

FINANCE & ECONOMICS

Monetary policy

Central bankers preach stable rate policy In the past the RPP’s message has been muddled. Not now – expect rates to remain on hold for at least the next 7-12 months Last week rate setters on the National Bank of Poland’s Monetary Policy Council (RPP) were out in the media emphasizing the need for holding interest rates steady for the foreseeable future.

National Bank of Poland president and head of the RPP Marek Belka said in an interview with the Obserwator Finansowy web portal that it was important to send a strong signal to the market that inter-

abruptly when inflation is and will be exceptionally low,” he said.

est rates will be left unchanged. Keeping them stable at least until mid-2014 is Poland’s forward guidance, he confirmed.

“There is no reason whatsoever to believe that, within the next half-year [and] probably beyond, anything will happen that could significantly change the path of economic development set in the November inflation and GDP projection,” Mr Belka said.

He stressed that there is no risk of deflation in Poland, though inflation is expected to remain below target.

“As we were patient in sustaining an inflation increase above 3.5 percent, we will be patient and we will not react

Rate rises ‘out of the question’ RPP member Andrzej Bratkowski followed Mr Belka’s lead, when he told Bloomberg in an interview that the council will have no reason to change interest rates until at least mid-2014.

“In the context of recent decisions by the ECB and the Czech central bank, further interest rate cuts are effectively out of the question for us,” Mr Bratkowski said. “Unless we were dealing with some unheard-of appreciation of the z∏oty, for example beyond 3.8

Holding steady The National Bank of Poland’s reference interest rate (%), November 2012-November 2013 5.0 4.4 3.8 3.2 2.6

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11

Salaries up in October

per euro. At that level I’d start to get nervous.”

“I believe that we should start raising interest rates in late 2014 or early 2015 so we won’t have to rush the job later,” Mr Bratkowski also said.

In his opinion “preemptive and gradual moves should ensure” a more calm reaction from the economy and markets.

No sign of negative effects That view was echoed by RPP member Adam Glapiƒski, who said interest rates should be left unchanged until the end of 2014 at a press conference.

“We have a statement that rates should stay intact to midnext year,” Mr Glapiƒski said, referring to the message given by the RPP after its October sitting. “I still think that we could stabilize rates at an unchanged level to end-2014, as a good anchor for expectations of financial markets even if there are more optimistic forecasts,” he added.

“We are in the process of testing historically low interest rates,” Mr Glapiƒski said.

“Despite my earlier fears, for now there are no signs of negative effects of low rates, so I’m inclined to continue testKW ing these levels.”

SHUTTERSTOCK

NOVEMBER 25 – DECEMBER 1, 2013

Both pay and employment in the corporate sector rose last month The average monthly salary in the corporate sector in Poland grew by 3.1 percent year-onyear and amounted to z∏.3,834.17 in October, statistics office GUS said in an announcement last week. In month-on-month terms salaries grew by 1.7 percent.

The growth was in line with expectations. Economists surveyed by the Polish Press Agency had expected salaries to grow by 3.1 percent y/y and by 1.5 percent m/m in October.

In real terms, wage growth was at 2.3 percent y/y, which supports “private consumption growth, while not generating excessive increase of labor

costs for companies,” BZ WBK economists wrote in an e-mailed comment.

GUS also said that employment in the corporate sector fell by 0.2 percent y/y and grew by 0.1 percent m/m. In October it stood at 5.5 million.

A good employment figure was “partially due to favorable weather conditions in October which sustained seasonal jobs (for example in construction),” the economists wrote.

“On the other hand, employment has increased for the sixth month in a row, so we may say that this is not a temporary phenomenon but rather a firm trend,” they KW added.

COVER STORY

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

13

Region

The Ukrainian parliament rejected legislative proposals that would have enabled it to sign an Association Agreement with Brussels Ukraine’s government last week decided to suspend the country’s negotiations on signing an Association Agreement with the European Union.

Kiev also declared it would like a joint committee to be established to work on Ukraine-Russia-EU economic cooperation.

Ukraine’s parliament rejected draft legislation that would have allowed imprisoned former Ukrainian Prime Minister Yulia Tymoshenko to receive medical treatment abroad. Though that was far from the EU’s original demand of a full pardon, Brussels had recently signaled that it would have accepted the adoption of such regulations.

Speaking in Vienna last Thursday, Ukrainian President Viktor Yanukovych said that his country would still “work on [a] path to European integration.” However, Ms Tymoshenko’s case should be resolved based only on Ukrainian law, he added.

Pro-EU demonstrations were held in Kiev after the parliament voted down the measures, but as WBJ went to press, the mass protests that Ms Tymoshenko called for had yet to materialize.

‘Disappointed’ Meanwhile, Catherine Ashton, who is in charge of EU diplomacy, said the decision was a “disappointment,” adding that Ukraine’s future “lies in a strong relationship with the EU.” Polish Foreign Minister Rados∏aw Sikorski likewise expressed dissatisfaction with Kiev’s decision.

“Poland along with the whole EU is disappointed that Ukraine has proven it is not ready to take on the difficulties of modernization,” said Mr Sikorski. “The Association Agreement is ready to be signed but only when Ukraine is ready to reform its economy and Europeanize its state,” he added.

Moscow had pressured Ukraine recently not to sign the agreement, with extra customs checks put in place by Russia in the run up to the parliamentary vote. Moscow wants Ukraine to join its customs union with other formerSoviet countries, including Belarus and Kazakhstan.

Meanwhile, the Baltic News Service reported that

Ukraine’s President Viktor Yanukovych told his Lithuanian counterpart Dalia Grybauskaite in a telephone conversation that Kiev could not sign the agreement with the EU due to Russian “economic pressure and blackmail.”

During the telephone conversation, the Lithuanian president was reportedly told about Russian threats to restrict the imports of goods from Eastern Ukraine, which, according to Kiev’s calculations, could have led to billions in losses, stated Ms Grybauskaite’s senior foreign policy advisor Jovita Neliupsiene.

“Ukraine was threatened with restricted imports of its goods to Russia, particularly from companies in Eastern Ukraine, which accommodates the greater share of its industry and employs hundreds of thousands of people,” Ms Neliupsiene told the news agency.

However, after the Ukrainians announced their decision to suspend the talks, Russian president Vladimir Putin denied his government had exerted pressure on Ukraine over the issue.

Instead, Mr Putin accused Brussels of “blackmailing” and “pressuring” Kiev over its

COURTESY OF THE EUROPEAN PARLIAMENT

Ukraine turns its back on the EU

Mr Yanukovych was reportedly forced to buckle under Russian pressure decision to suspend the free trade talks.

Balancing act So what does the future hold for Poland’s eastern neighbor?

“The latest events do not mark a significant shift in

Ukraine’s policy, but rather their continuation. Essentially the government has tried to cooperate with both the EU and Russia, without getting too close to one or the other,” said Eugene Chausovsky, an analyst at Stratfor, a geopoliti-

cal research firm.

“Despite the decision, Ukraine will continue to try and reach out to the EU on economic and energy matters, and it will continue to try to keep Russia at arm’s length in order to preserve its sovereign-

ty and independence,” he said.

“The key word here is ‘try,’ as it is not clear how long Ukraine can keep up this tenuous balancing act without alienating both sides,” Mr Chausovsky added.

Remi Adekoya

Important dates in the Ukraine-EU relationship August 1991: Ukraine declares independence after the collapse of the Soviet Union. Poland and Canada are the first countries to recognize its sovereignty.

March 1998: The Partnership and Cooperation Agreement, establishing political dialogue between Ukraine and the European Union, and originally signed in 1994, comes into force.

November 2004: Viktor Yanukovych defeats Viktor Yushchenko in presidential elections but the latter insists the elections were rigged. Massive proYushchenko protests, later dubbed the Orange Revolution, follow the announcement of the voting results. The protests succeed as the election results of are annulled, and a revote is ordered by Ukraine’s Supreme Court.

December 2004: The revote hands Mr Yushchenko a clear victory as he receives 52 percent of the vote while Mr Yanukovych receives 44 percent.

January 2005: Mr Yushchenko is inaugurated as Ukraine’s new president.

February 2005: Yulia Tymoshenko, who played a critical role in the Orange Revolution, is confirmed as prime minister of Ukraine. Additionally, a joint EU–Ukraine Action Plan is endorsed by the European Council. It provides a comprehensive framework for cooperation with Ukraine in key areas of reform.

September 2005: President Yushchenko dismisses Ms Tymoshenko from her post saying her premiership had led to an economic slowdown and political conflicts within the ruling coalition.

December 2007: Ms Tymoshenko once again becomes prime minister, this times as head of her own party, the Yulia Tymoshenko Bloc.

May 2009: The Eastern Partnership agreement is signed. The Eastern Partnership is a PolishSwedish initiative designed to govern the EU’s relationship with the post-Soviet states of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. It is intended to provide a venue for discussions regarding trade, economic strategy and travel agreements.

June 2009: The EU-Ukraine Association Agenda is adopted, ushering in Association Agreement negotiations between Ukraine and the EU. The Association Agreement aims for political association and economic integration with Ukraine but does not contain EU membership perspectives for the country.

February 2010: Ms Tymoshenko loses presidential elections to Viktor Yanukovych.

March 2010: Ms Tymoshenko loses a vote of confidence in parliament and is removed from her post as prime minister of Ukraine.

October 2011: A Ukrainian court finds Ms Tymoshenko guilty of abuse of office for an unfavorable gas deal she signed with Russia in 2009 while she was prime minister. She is sentenced to seven years in prison.

December 2011: An EU-Ukraine summit, which was intended to lead to the signature of the Association Agreement, falls short due to Brussels’ concerns over the jailing of Ms Tymoshenko.

March 2012: The EU-Ukraine Association Agreement is initialed but before it enters into force it must be ratified by the Ukrainian Parliament, the European Parliament, and each EU member state. However, EU leaders suggest the agreement will not be ratified unless Ukraine addresses concerns over a “stark deterioration of democracy and the rule of law,” and specifically the imprisonment of Ms Tymoshenko.

November 2012: EU Commissioner for Enlargement and European Neighbourhood Policy Stefan Fule states that the Association Agreement, as well as a Deep and Comprehensive Free Trade Agreement (DCFTA), which had been negotiated between EU and Ukraine since 1999, could be signed at the planned Eastern Partnership summit in November 2013 if the EU’s concerns regarding Ms Tymoshenko are addressed.

February 2013: The EU sets a three-month deadline for Ukraine to carry out the required changes to its justice and electoral systems, which would enable the release of Ms Tymoshenko, in order to enable the formal signing of its AA and DCFTA agreements with the EU. The deadline is not met.

September 2013: President Yanukovych urges the Ukrainian parliament to adopt the necessary laws to enable Ukraine meet the EU criteria for signing the AA and DCFTA agreements in November 2013.

November 2013: Ukrainian parliament rejects legislation which would have allowed Yulia Tymoshenko to leave the country to receive medical treatment in Germany. A total of six drafts were thrown out by Ukrainian lawmakers, making it difficult to imagine that the Association Agreement with the EU will be signed at an Eastern Partnership Summit in Vilnius on November 28-29. ●

14

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

Promotional feature

Lufthansa improving quality and comfort for passengers board, as well as for the exclusive facilities of the Lufthansa First Class Terminal at Frankfurt Airport – a great success which makes the exclusive Lufthansa First Class experience even more attractive for passengers. Additionally, First Class sales in the first seven months of the year have further increased by 50% compared to the same period in 2012 in Poland. Demand for our Lufthansa Private Jet product is continuously increasing – we see that more and more Polish travelers choose Lufthansa Private Jet as a feeder for their First Class flight.

Interview with Bart Buyse, General Manager Lufthansa Poland

You have mentioned the retrofit of Lufthansa’s fleet. Will that influence the quality of travel?

Polish airports serve 24.5 million passengers per year. After such a long presence on the Polish market, where do you see the biggest potential?

Lufthansa is the only international airline which has focused on the Polish regions throughout the years and therefore is also the leading legacy airline in the regions. The total increase of capacity during the winter schedule in Poland will be 20%, with a forecast of even up to 30% capacity growth in the summer 2014. Lufthansa also offers Polish passengers more attractive availabilities and prices for traveling to Bangkok, Singapore, Shanghai and Beijing from Warsaw, as we see a significant interest in these destinations. In line with the airline’s policy, an extensive network of mid- and long-haul routes will be available for the best prices, assuring that Lufthansa continues to be the first choice for the passengers traveling from Warsaw to these regions.

What do you consider Lufthansa’s greatest achievements in 2013?

Consistent investment in new technology, efficiency and customer comfort is a continuation of the ongoing fleet retrofit which is taking place at the Lufthansa Group’s airlines. We believe this is the only way to strengthen our position as a leading carrier and successfully compete. We are optimistic about next year’s forecasts.

We consider one of our greatest achievements to be the fact that Lufthansa First Class received the best possible rating in the renowned Skytrax ranking, which regularly evaluates the quality of airlines. Lufthansa was awarded with five stars for the outstanding comfort and comprehensive service on

Definitely. We are currently undergoing the biggest fleet investment program in our corporate history. Lufthansa Group has ordered 59 ultra-modern wide-body Boeing 777-9X and Airbus A350-900 aircraft – all of them quiet and environmentally efficient. The investment amount for the latest order totals EUR14 billion at list prices and is the largest single private-sector investment in the history of German industry. Currently, apart from the A380, which is considered the biggest, the most modern passenger aircraft in the world, Lufthansa is the only carrier in Europe putting the Boeing 747-8 into service, the newest version of the Jumbo Jet. It guarantees a very comfortable journey for all passengers no matter where they are sitting and how long they are traveling. What is more, new aircraft is not only more ecological, but also reduces the noise level significantly.

How has increased competition affected your activities in Poland?

We can clearly see it in the example of the entrance of Gulf carriers into the Polish market. This has extremely stimulated demand for travel from Poland to the Middle East and Asia. Lufthansa offers intercontinental connections with transfers in one of our German hubs, Munich or Frankfurt, which allows passengers to travel almost anywhere in the world. While we might have lost a small number of customers traveling to Dubai and Doha, since those carriers are flying directly from Warsaw, we have been able to further grow in all the other Middle Eastern and Asian destinations in 2013. The feedback from most of our customers traveling to Asia and the Middle East is that the Lufthansa Group still has a better product and offers much better connectivity to those destinations, especially from the Polish regions, but also from Warsaw.

BROUGHT TO YOU BY LUFTHANSA

What is the profile of Lufthansa passenger? Who travels the most?

It will not be a surprise when I say that the majority of our customers are corporate travelers. That would be approximately 70 per cent. They choose to fly with us because Lufthansa offers the best product for corporate travelers, not only in the Polish market, but also in Europe and worldwide. We fly from seven origins in Poland and from those origins we offer from two to up to fifteen flights daily. Not so many other big airlines present in this region can offer such an extensive network, as we do with our 212 destinations to 81 countries worldwide. This activity offers outstanding flexibility, which allow us to meet our clients’ most demanding expectations. Corporate travelers especially appreciate our one of the industry’s largest lounge networks, which provides guests with some 70 lounges around the world, and together with the more than 900 lounges provided by Star Alliance and cooperation partners.

That said, of course we also are very successful in the leisure traveler segment. More and more tourists are flying with Lufthansa to the typical tourist destinations like Bangkok, Singapore and cities in India and China, especially since nowadays Lufthansa is offering very attractive fares from Warsaw to those destinations in Economy and Business Class. ●

Green buildings in focus As Warsaw gears up for the CEE Green Building Awards, Lokale takes a look at the financial aspects of sustainability 16-17

LOKALE IMMOBILIA

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

Next Królewskie phase gets green light Residential developer Robyg has received a building permit for the second phase of its Osiedle Królewskie estate in Warsaw’s Wilanów district.

The estate will consist of 135 apartments. The construction is set to launch by the end of 2013 and should be completed in Q1 2015.

Ambassador 100% leased Kronos’s Ambassador office scheme, located in Warsaw’s city center, has reached 100% occupancy.

The scheme was delivered in February 2013. “We started the process of commercialization in 2012. Even before we completed the scheme, it was already 80% leased,” said ¸ukasz Ka∏´dkiewicz, head of office department at CBRE, the main leasing agent ●

In this issue Warsaw Spire cornerstone . . .15 P3 looks to expand . . . . . . . . . .15 Tesco asset stripping . . . . . . . .15 Green savings . . . . . . . . . . . . . . .16 CEE Green Building Awards . .17 Capital Park plans . . . . . . . . . . .18 Amazon’s new BTS . . . . . . . . . .18

Cornerstone laid for Warsaw Spire’s main tower The scheme, worth some z∏.1 billion, will offer 100,000 sqm once fully delivered in 2015 Developer Ghelamco has laid the cornerstone for its flagship office scheme, Warsaw Spire, located in Warsaw’s Wola district. The underground levels of the 49-storey tower, scheduled to be commissioned in Q2 2015, have already been completed. The scheme, consisting of two smaller 55-meter buildings and one 220-meter tower, will deliver 100,000 sqm of class-A office space.

The cornerstone laying ceremony, held on November 18, was attended by a number of high-ranking Polish and Belgian officials, including Poland’s Deputy Prime Minister and Economy Minister Janusz Piechociƒski, Belgian Ambassador to Poland Raoul Delcorde and Minister-President of Flanders Kris Peeters.

Mr Peeters said during the ceremony that Ghelamco’s Warsaw Spire was a symbol of

Warsaw Spire will be the second-tallest building in the Polish capital “the strong and ever-growing friendship that exists between Poland and Flanders.”

In April this year, the developer obtained over z∏.900 million of financing for the

scheme from four banks: Pekao, Bank Zachodni WBK, PKO and BRE. The invest-

ment’s value is estimated at z∏.1 billion.

Construction on one of the smaller buildings of the scheme, dubbed “B,” commenced in mid-2011 and its shell was completed in September 2013. Currently, the bricklaying and installation work is underway. The two lower wings are set to be delivered in the fall of 2014.

Ghelamco has already leased 14,600 sqm, nearly the entire office space in building “B,” to the European Union agency Frontex. The agency is to move to the development in September 2014.

Warsaw Spire will be the second-tallest building in Poland, after the Palace of Culture and Science. It is also the largest office complex under construction in Europe in terms of leasable area provided. Currently the building is in the process of obtaining BREEAM certification. The developer is counting on securing the rank of “Excellent.”

BKS

P3 looking to expand Tesco to sell 300,000 sqm of land Polish portfolio Warehousing property developer PointPark Properties (P3) is working on acquisitions in the country and plans to at least double the total warehouse space in its Polish portfolio, the company’s CEO Ian Worboys told ISBnews. The firm expects to make the first acquisitions within six months.

“We now have 195,000 sqm of warehouse space [in Poland] and I think we are underweighed,” Mr Worboys said. “We want to at least double our assets within two years, but I know there is large competition,” he added.

The company plans to buy both land and existing properties in key Polish regions – Warsaw, Poznaƒ, Wroc∏aw, ¸ódê and Silesia. It is also working on securing built-tosuit deals.

According to Mr Worboys, the company considers the Polish market as part of Western Europe, which altogether stands for 60 percent of the company’s assets. The developer’s CEO said that the Polish market “has already stabilized. Still, it is interesting and full of opportunities.”

KW, BKS

The Polish branch of Tesco has put up a total of 35 properties for sale. The retailer wants to sell more than 30 hectares of mainly undeveloped land, designated for commercial developments and located largely near Tesco’s existing stores. The company has stated it wants to extend the offer of its stores to include additional services.

The biggest plot Tesco is offering consists of nearly 65,000 sqm of undeveloped land and is located in the southern city of Wa∏brzych.

The retailer is also putting up a 33,000-sqm plot in ¸ódê, as well as 20,000-sqm plots in G∏ogów and O∏awa, including

COURTESY OF WIKIMEDIA COMMONS

Consultancy KPMG will lease 10,000 sqm in the Gdaƒski Business Center office complex, located in Warsaw’s center. The scheme offers a total of 47,000 sqm of GLA. KPMG, which employs 1,200 people in Poland, has offices is seven major Polish cities: Warsaw, Gdaƒsk, ¸ódê, Katowice, Kraków, Poznaƒ and Wroc∏aw.

Office

COURTESY OF GHELAMCO

KPMG leases 10,000 sqm in Gdaƒski

NOV 25 – DEC 1, 2013, LI 18/46

Tesco has 400 hypermarket and supermarket stores in Poland many smaller areas.

Cushman & Wakefield will advise and represent Tesco in the sale process and talks with potential buyers. Tesco’s properties will be marketed gradu-

ally and sold through a competitive bidding process.

Tesco has 400 stores in Poland, making it the biggest network in the CEE region.

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

BKS

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Sustainability

Expert view COURTESY OF KULCZYK SILVERSTEIN PROPERTIES

Green savings

A sound investment But good PR aside, are green solutions adding real value to office schemes? Cutting-edge sustainable technologies can significantly inflate the initial investment cost, which then translates into lower yields, or higher rent levels. “A LEED or BREEAM-certified building is some 5-15 percent more expensive than a traditional one,” Mr Mand˝unowski said.

The decision to build green must come at the planning stage, otherwise it might not

be economically feasible at all.

“Adapting an already existing building to meet BREEAM or LEED energyefficiency criteria is much more expensive than designing

“These days sustainability is standard practice: it’s no longer in, it’s a must.” and constructing a building like that from scratch,” Mr Mand˝unowski explained.

Higher rent, lower s/c What about the tenants – are they ready to pay more for the comfort of working in a BREEAM- or LEED-certified building? According to a CBRE report “although as many as 66 percent of those polled admit that energy efficiency and sustainable con-

struction are important for their company’s mission statement, only 3 percent declare they are ready to pay higher rent for premises in a greencertified building.”

The whole trick is to employ such energy-efficient solutions that could bring the service charges down enough to offset the increased rent.

For example, Capital Park’s Eurocentrum office complex saves up to 60 percent on water and 25 percent on energy consumption.

“Such savings bring service charges way down, which easily makes up for higher rent charges,” explained Kinga Nowakowska, head of asset management, sales and marketing at Capital Park. Even though the first phase of the development is scheduled to be completed in mid-2014, the complex is already 50 percent leased, with Unilever and Qumac billed as some of its tenants.

Beata Socha

COURTESY OF CAPITAL PARK

Skanska’s Atrium 1 holds the highest-raking LEED-Platinum pre-certificate money is going, investors also seem to appreciate green solutions. Skanska’s Atrium 1 recently sold for €94 million to German investor Deka Immobilien-Global, is LEED-Platinum pre-certified.

“The commercial success of Atrium 1 shows that our decision to build with sustainable technology was the right direction,” said Waldemar Olbryk, CEO of Skanska Property Poland.

Edgar Rosenmayr, member of the board at Kulczyk Silverstein Properties

“The successful green certification of retail properties requires a wider scope of sustainability concepts being taken into account in the design, construction and operation of such properties compared to other asset classes, for example offices. In addition, higher scores can only be targeted if tenants and potential customers are prepared to support a number of special operational procedures, which in many cases is difficult to achieve.

Taking all these reasons together developers are less encouraged to engage in a certification process for retail assets. This situation is however going to change if tenants and investors start getting more demanding in respect of green certificates for retail properties as is already the case for offices.” ●

COURTESY OF SKANSKA

Despite higher initial cost, sustainable solutions can be a worthwhile investment, even outside the office sector A green revolution has been going on in the Polish office market for several years now and is currently spreading to other segments of the real estate market.

There are already some retail schemes, mixed-use projects and logistics buildings interested in securing green certificates. Neinver’s two latest Factory outlets, one in Annopol-Warsaw (opened in 2013) and one in Kraków (launched in 2012), both obtained BREEAM certificates.

Still, the list of environmentally sustainable and energyefficient buildings is still largely dominated by office developments.

“We are currently observing a lot of old office buildings being pulled down in Warsaw.

They are being replaced with schemes offering far more efficient space. These schemes will definitely be built with technology based on one of the green certification systems,” said Robert Mand˝unowski, CEO of investor LHI. The company recently completed its Chmielna 25 scheme, which obtained LEED Gold certification in October. “These days sustainability is standard practice: it’s no longer in, it’s a must,” Mr Mand˝unowski underlined.

When looking at where the

NOVEMBER 25 – DECEMBER 1, 2013

Marcin Juszczyk, member of the board at Capital Park “Recently, we have been noticing a significant surge of interest in sustainable construction coming from tenants, developers and investors. This is not only due to increased environmental awareness, but also from real, tangible benefits for office tenants and their employees.

A 70,000-sqm building like Eurocentrum consumes 60 percent less water, which translates into a saving of z∏.160,000 a year, and 25 percent less energy, which brings some z∏.1 million in savings. This is a significant amount for the tenants. Moreover, a green building improves the working conditions, which in turn increases employees’ efficiency and well-being.

International companies see sustainability as standard practice and will not lease premises in a non-certified building. That is why developers are increasingly interested in delivering such projects to the market. Yes, it does entail additional cost, but all in all it is far more profitable in the long run.

Investors looking for long-term yields are also more eager to buy more competitive projects that will increase in value over time.” ●

NOVEMBER 25 – DECEMBER 1, 2013

LOKALE IMMOBILIA – REAL ESTATE Media patronage

CEE Green Building Awards to honor sustainable office, retail and mixed-use projects at annual gala in Warsaw On November 28 EuropaProperty.com will hold the third annual CEE Green Building Awards gala at the InterContinental Hotel in Warsaw. The awards will be given out to past, present and future office projects recognized by BREEAM or LEED or other sustainability certification. The best retail and mixed-use projects will also be honored with statuettes.

The jury will also award top performing real estate companies in the industry, including the best banks, developers and investors involved in green schemes. Additionally, five cities (all Polish) will be competing for the Green City of the Year statuette.

Apart from the awards ceremony, the event will feature several panel discussions. The first one will answer the ques-

tion about the financial reasons for building green. In particular, panelists will discuss which investors are buying green buildings and at what premiums, which type of certification – BREEAM or LEED – is more profitable, and whether banks distinguish between certified and non-certified schemes when deciding on financing a project.

Participants will also be able to see a series of 15-minute presentations by municipal authorities of the investment opportunities in different regions and cities. Finally, a panel discussion on marketing green buildings will be held.

Warsaw Business Journal is a media partner of the event. ●

Green Building Awards Project Categories Green Building Awards Semi Finalists for 2013 Green Office Building of the Year 2013 Aquarius Business House - Echo Investment - Poland Business Garden Warsaw - SwedeCenter - Poland Flanders Business Park - Liebrecht & Wood - Poland Floreasca Park - Portland Trust - Romania Konstruktorska Business Centre - HB Reavis - Poland ¸opuszaƒska Business Park - Ghelamco - Poland Miasteczko Orange - Bouygues Immobilier - Poland Oxygen Park - Yareal - Poland Plac Unii - Liebrecht & Wood - Poland T-Mobile Office Park - Ghelamco - Poland

Office Projects 2000-2012 BREEAM Post Construction Assessment GPP Business Park - GPP - Poland Laurus Offices - Erste Group Immorent - Hungary Mokotów Nova - Ghelamco - Poland Okràglak - Immobel Poland - Poland Senator - Ghelamco - Poland Spielberk Office Center - CTP - Czech Republic BREEAM in USE Astoria Business Center - Bluehouse - Romania BBC Filadelfie - BB Centrum - Filadelfie - Czech Republic Business Park Sofia - Bluehouse - Bulgaria Business Center Eurohold - Bluehouse - Bulgaria LEED for Shell and Core Brama Portowa I - SwedeCenter - Poland PBP Berlin Building - UBM - Poland PBP Warsaw Building - UBM - Poland Platinum Business Park V - GTC - Poland Green House Office Building - Skanska - Hungary

2014+ Future/Design/Under Construction BREEAM Design Stage Assessment A4 Business Park - Echo Investment - Poland Gdaƒski Business Center - HB Reavis - Poland Park Rozwoju - Echo Investment - Poland Vaci Corner Offices - HB Reavis - Hungary LEED Pre-Certificate Shell & Core Alma Tower - UBM - Poland Atrium 1 - Skanska - Poland Business Center Poznaƒ - SwedeCenter - Poland Nordic Lights Center - Skanska - Hungary

Green City of the Year Gdynia, Lublin, Poznaƒ, S∏upsk, Szczecin

Professional Service Provider of the Year Arcadis/EC Harris BuildGreen Romania First Title Gleeds Hays Pilkington Polska Scott Lighting VvS | Architects Consultants

Architectural Firm of the Year APA Wojciechowski Broadway Malyan Bulanda, Mucha – Architekci Grupa 5 Architects HRA Architekci Kury∏owicz & Associates PRC Architekci

Law Firm of the Year Allen & Overy Dentons Hogan Lovells Magnusson Wolf Theiss

Property Management Firm of the Year Apsys Colliers International Cushman & Wakefield DTZ Jones Lang LaSalle Knight Frank TriGranit Management Corporation

Bank of the Year Aareal Helaba pbb Deutsche Pfandbriefbank UniCredit

Agency of the Year

Business Garden Warsaw - SwedeCenter - Poland Plac Unii - Liebrecht & Wood - Poland Poznaƒ City Center - TriGranit Development - Poland

CBRE Colliers International DTZ Jones Lang LaSalle Knight Frank

Retail Project of the Year

Investor of the Year

Europa Centralna - Helical - Poland Galeria Amber - Echo Investment - Poland Galeria Solna - Acteeum Group - Poland Factory Annopol - Neinver - Poland ¸acina - Apsys - Poland Plac Unii - Liebrecht & Wood - Poland Poznaƒ City Center - TriGranit Development - Poland

Atrium, CBRE Global Investors, Ghelamco, Kulczyk Silverstein Properties, Tristan Capital Partners, UBM

Mixed-use Project of the Year

Green Developer of the Year AIG/Lincoln, Capital Park, Echo Investment, Ghelamco, GPP GTC, HB Reavis, Metro Properties, TriGranit Development Group, Skanska, SwedeCenter

www.wbj.pl

17

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

IPO

Capital Park prepares for expansion, reveals financing plans After a bourse debut scheduled for December, the investor wants to create another closed-ended fund

More closed-ended funds

COURTESY OF CAPITAL PARK

Real estate investor and developer Capital Park has unveiled the details of its initial public offering on the Warsaw Stock Exchange, with the maximum share price set at z∏.10 apiece.

The company, established in 2003, will offer nearly 21 million newly issued shares which stands for 20 percent of the company’s stock.

The remaining stock will remain in the hands of Patron Capital (74 percent), the company’s founders, as well as its management board (6 percent). The company plans to offer 15 percent of the issue to individual investors, while 85 percent of the offered shares is intended for institutional investors.

Brokerage DI BRE and Espirito Santo bank will handle the book-building process, scheduled for November 2128. The company’s shares will be quoted on the stock

located, offer long-term stability and attractive rents. These properties will never stop being attractive, because city centers will always be located in the same place,” Mr Motz added.

The 69,578-sqm Eurocentrum scheme is the company’s biggest office project exchange starting mid-December, the company said.

Big plans Most of the z∏.210 million the company plans to raise in its IPO will be spent on Capital Park’s office projects which are currently under construction. Some z∏.85 million has been earmarked for the second phase of the Eurocentrum Office Complex in Warsaw, z∏.50 million for the Royal Wilanów scheme, set to be completed in August 2015,

and z∏.10 million for the Art Norblin investment, currently at the preparatory stages.

The remaining part of the proceeds (some z∏.55 million) will be spent on new projects, particularly in the retail segment. “This is a great time to expand our portfolio. We have the opportunity to consolidate in the retail real estate market, particularly in the main streets and convenience centers,” the firm’s CEO Jan Motz said.

“These schemes, due to the fact that they are centrally

Capital Park has also revealed its plans on how to procure even more financing for its expansion plans. It will establish a closed-ended real estate fund in 2014. The new fund’s portfolio will be made up of the firm’s office assets, currently valued at z∏.565 million (42 percent of the company’s total assets) and expected to reach a total value of z∏.1.1 billion once completed.

The investor is looking to repeat the success of its highstreet closed-ended fund created this year, with 39 properties in its portfolio. The highstreet fund helped the firm raise z∏.64 million.

“We are already preparing to make the high-street fund public, which will make its stock more easily accessible, with investment threshold at some z∏.2,000,” Mr Motz said.

Beata Socha

NOVEMBER 25 – DECEMBER 1, 2013

Goodman to build logistics behemoth for Amazon

COURTESY OF GOODMAN

18

The planned Amazon facility in Wroc∏aw Industrial Developer Goodman will build a distribution center for Amazon in Wroc∏aw. The facility will be the largest free-standing logistics facility in Poland and also the largest-ever contract for the construction of a logistics warehouse in Central Europe.

The first Amazon distribution center in Poland will have a total space of 95,000 sqm. Its construction began in October 2013 and completion is planned for Q2, 2014.

“We are proud to be Amazon’s partner. ... The construction work will be conducted at a fast pace so that Amazon can use it within a year,” said B∏a˝ej Ciesielczak, regional director of Goodman in Poland.

Amazon plans to offer permanent employment for some

2,000 people in its warehouse and temporary positions for 3,000 workers in the pre-holiday season.

Since 2006, Goodman has completed 11 logistics investments for Amazon, a total of over 900,000 sqm, in Germany, France and the UK. Amazon’s first Polish distribution center will be located in the Wroc∏aw district of Bielany Wroc∏awskie, five kilometers from the city center. Amazon’s facility will be the fifth created

by Goodman in the Wroc∏aw region.

Goodman has previously completed facilities for Whirlpool, TJX Europe, Walki Group and Castech.

Their total space amounts to over 70,000 sqm.

Aleksandra S∏abisz

MARKETS

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

16,009.99 (Nov 21 close)

S&P500

3,969.15 (Nov 21 close)

0.84% (for the week)

FTSE100

1,795.85 (Nov 21 close)

-0.09% (for the week)

DAX

6,674.30 (Nov 22 close)

0.29% (for the week)

-0.29% (for the week)

WSE shows relative strength

NIKKEI 9,219.04 (Nov 22 close)

15,375.58 (Nov 22 close)

0.55% (for the week)

1.38% (for the week)

CHANGE: 19.37% (year to Nov 21)

CHANGE: 27.53% (year to Nov 21)

CHANGE: 22.80% (year to Nov 21)

CHANGE: 10.73% (year to November 22)

CHANGE: 18.52% (year to November 22)

CHANGE: 43.86% (year to November 22)

52-week high: 16,030.28

52-week high: 3,994.77

52-week high: 1,802.32

52-week high: 6,875.60

52-week high: 9,253.22

52-week high: 15,942.60

52-week low: 12,765.32

52-week low: 2,935.88

52-week low: 1,385.43

52-week low: 5,755.20

52-week low: 7,219.55

52-week low: 9,308.35

¸ukasz Wróbel Noble Securities SA International stock markets finished last week with mixed results. The main indices from the developed economies didn’t move noticeably as investors tried to make sense of the new data, while emerging markets have split into two groups.

The Polish WIG20 index managed to rise by about 2 percent. The leading indicators published last week suggest that in the following months we might again see Germany leaving the rest of the euro zone far behind.

The structure of its GDP growth shows that the biggest European economy and the most important foreign partner of Poland is relying more heavily than usual on its internal market, which may be beneficial for Polish

Major indices WIG

54,834.12 (November 22 close)

WIG30

2,731.07 (November 22 close)

22.11

20.11

21.11

19.11

15.11

18.11

14.11

13.11

08.11

12.11

06.11

07.11

04.11

22.11

20.11

21.11

19.11

18.11

14.11

15.11

24.10

13.11

2,200

08.11

44,000

12.11

2,320

07.11

46,400

06.11

2,440

04.11

48,800

05.11

2,560

30.10

51,200

31.10

2,680

28.10

53,600

29.10

2,800

25.10

56,000

05.11

52-week low: 2,286.99

31.10

Change year to November 22: 4.07%

30.10

52-week low: 43,159.57

28.10

52-week high: 2,760.93

Change year to November 22: 13.98%

29.10

Change for the week: 1.62%

24.10

52-week high: 55,136.81

25.10

Change for the week: 1.74%

Top 5 TFONE ULMA COLIAN VARIANT ACE

Closing 4.40 91.80 3.99 3.31 15.90

% change (week) 52-week high 25.71 4.47 22.89 91.80 21.65 4.10 19.49 3.32 19.10 16.02

52-week low 1.53 34.96 1.95 1.26 4.82

Top 5 JSW ENEA BRE BOGDANKA CCC

Closing 68.30 15.75 555.10 139.50 125.50

% change (week) 7.66 7.58 6.55 6.00 5.73

52-week high 94.15 15.89 570.00 140.00 141.60

52-week low 57.70 11.70 293.97 92.95 64.71

Bottom 5 BIOTON POLIMEXMS GANT CAMMEDIA KBDOM

Closing 0.02 0.14 0.68 2.20 0.04

% change (week) -33.33 -22.22 -20.93 -20.86 -20.00

52-week low 0.02 0.09 0.55 2.10 0.02

Bottom 5 GRUPAAZOTY BORYSZEW CYFRPLSAT ASSECOPOL EUROCASH

Closing 72.10 0.51 20.08 50.15 51.89

% change (week) -3.35 -1.92 -1.57 -1.28 -1.18

52-week high 88.50 0.64 24.70 52.70 66.56

52-week low 48.35 0.38 14.91 37.76 38.17

52-week high 0.10 0.68 4.83 4.15 0.19

2,590.48 (November 22 close)

mWIG40

Gov’t shakeup moves currencies

3,525.21 (November 22 close)

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

12.11

08.11

07.11

SOURCE: WSE

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

12.11

08.11

07.11

06.11

05.11

04.11

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

12.11

320

08.11

14,000

07.11

328 06.11

14,400

05.11

336

04.11

14,800

31.10

344

30.10

15,200

29.10

352

28.10

15,600

25.10

360

24.10

16,000

31.10

52-week low: 296.29

30.10

52-week high: 352.36

Change year to November 22: 3.68%

29.10

52-week low: 9,765.20

Adam Narczewski X-Trade Brokers DM SA

344.41 (November 22 close)

Change for the week: 0.47%

28.10

Change year to November 22: 42.78%

NewConnect

25.10

52-week high: 15,036.80

06.11

22.11

21.11

20.11

19.11

18.11

15.11

14.11

13.11

15,036.80 (November 22 close)

Change for the week: 1.06%

24.10

sWIG80

12.11

3,200

08.11

2,300

06.11

3,280

07.11

2,380

04.11

3,360

05.11

2,460

31.10

3,440

30.10

2,540

29.10

3,520

28.10

2,620

24.10

3,600

25.10

2,700

05.11

52-week low: 2,434.10

04.11

Change year to November 22: 37.24%

31.10

52-week low: 2,177.02

30.10

Change year to November 22: -1.36%

29.10

52-week high: 3,572.51

28.10

Change for the week: 2.37%

25.10

52-week high: 2,628.36

24.10

Change for the week: 1.71%

exporters but definitely won’t prevent economic activity in France, Spain or Italy from losing positive momentum.

Investors on the Warsaw Stock Exchange reacted neutrally to the change of finance minister. Strong industrial production confirms that the economic recovery in the second half of year will not rely only on foreign trade, which should support corporate earnings in the short term. Last week, the WIG20 showed significant relative strength against international markets and the local small caps with commodities-related stocks leading the growth. Bogdanka rose by 6 percent in the last five trading days and JSW increased its market value by 7 percent. ●

Currency report

Other indices WIG20

19

It was an eventful week on both the global and local markets. The EUR/USD continued its increase to reach $1.3575, a monthly high. Rumors spread that the European Central Bank was considering lowering its deposit rate to below 0 percent. The main currency pair tumbled all the way to $1.34 on the news. ECB president Mario Draghi had to step in and announce that such a scenario was indeed discussed at the previous ECB meeting, but that since then no such ideas had been considered.

The EUR/USD recovered most of the ground it lost finishing the week above the $1.35 level.

In Poland, Prime Minister Donald Tusk changed some of the members of his cabinet, including Finance Minister Jacek Rostowski.

Mr Rostowski was under

pressure after misjudging the income portion of the country’s budget and for his implementation of the government’s pension reform plan. The nomination went to the much-younger Mateusz Szczurek, an economist with analytical experience. Known as a very good economist but inexperienced politician, he will have to deal with all the challenges the country is going through.

The z∏oty reacted to the nomination by depreciating, since any changes in the government bring uncertainty about the future. The EUR/PLN jumped to z∏.4.20 (from z∏.4.17) to finish the week slightly lower, in the range of z∏.4.19. The USD/PLN initially reached z∏.3.12 but corrected its upward movement by the end of the week to reach the level of z∏.3.10 level. ●

currency rates 3.0951

3.0941

20.11

21.11

3.0715

3.1005 19.11

22.11

3.0962 18.11

3.0

SOURCE: NBP

3.1054 15.11

0.0945 22.11

0.0946

0.0943

100JPY/PLN

3.2

21.11

20.11

0.0946 19.11

18.11

0.0953 15.11

3.4027

3.4108 22.11

0.092

0.0952

RUB/PLN

0.096

21.11

3.3960 20.11

3.3880 19.11

18.11

15.11

3.3926

5.0351 22.11

21.11

3.37

3.3909

CHF/PLN

3.45

5.0252

4.9907 20.11

4.9767 19.11

4.9902 18.11

5.0048 4.8

15.11

3.1077 22.11

21.11

20.11

19.11

18.11

15.11

22.11

21.11

20.11

19.11

18.11

3.0

15.11

4.1

GBP/PLN

5.1

3.1227

3.0947

3.0925

USD/PLN 3.0953

4.1995

3.1172

3.2

4.1933

4.1847

4.1789

4.1890

4.1805

EUR/PLN

4.3

20

THE LIST

www.wbj.pl

NOVEMBER 25 – DECEMBER 1, 2013

Construction & Real Estate

Green Office Buildings Listed alphabetically A guide to Polish business and industry

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Building name Address

Gross Building Area (sqm)

Certificates

Solutions applied/Technologies used

Major tenants

Architect / Developer / General contractor

Leasing agent / Building manager

Year completed

ALLCON@park 3 ul. S∏owackiego 173A, 80-298 Gdaƒsk

11,500

EU Green Buildings Certificate

Aluprof TT facade system; Daikin VRV III based air conditioning system; advanced building management system (BMS)

Intel Technology Poland; Young Digital Planet

AukettFitzroyRobinson Allcon Investment Allcon Budownictwo

WND AIP3 Investment

2011

Alma Tower ul. Pilotów 10, 30-964 Kraków

10,400

LEED Core & Shell pre-certificate (Platinum)

Use of environmentally-friendly materials; bicycle parkings; sanitary and locker-rooms for cyclists; parking for LEV (Low-Emitting and Fuel-Efficient Vehicle); unlimited access to daylight; water-efficient fittings; reducing energy consumption and CO2 emissions

Alma Market

nsMoon Studio (P. Nawara, B. ¸obaziewicz); Wizja Biuro Architektoniczne (S. Deƒko) UBM Riviera PORR Polska

Knight Frank WND

2014

Aquarius Business House ul. Swobodna 1, 25-323 Wroc∏aw

25,000

BREEAM-0044-1097 (Very Good)

WND

Tieto Poland; PwC; AXIT; Randstad; Lux Med; BOÂ Bank; Credit Agricole; Jad∏omania

Arcad Kielce Echo Investment Eiffage Budownictwo Mitex

Echo Investment Echo Investment Property Management

2013

Astra Park Al. SolidarnoÊci 36, 25-323 Kielce

16,200

EU Green Buildings Certificate

Ventilation and air-conditioning system based on heat pumps; energy-efficient elevators

Echo Investment; Rovese; Barlinek

DDJM Echo Investment WND

WND Echo Investment Property Management

2007

Skanska Property Poland

Biuro projektów Kazimierski i Ryba (KiR Architekci) Skanska Property Poland Skanska

WND WND

2013

Atrium 1 Al. Jana Paw∏a II 17, 00-854 Warsaw

30,353

LEED Core & Shell precertificate (Platinum)

Green energy; reducing heat island phenomenon; bicycle parking and sanitary facilities for cyclists; power stations for electric cars; increased ventilation; zone heating control system; use of materials with low volatile organic compounds content; use of plants that don't need watering in open green areas; use of regional materials; maximized access to daylight; highly efficient heat recovery system; photovoltaic cells; ground-coupled heat exchanger; energy-efficient LED lighting system; freecooling system; modern air conditioning; adiabatic humidifiers; energy-efficient elevators (energy recovery function during elevator brake); water-efficient fittings

Business Garden Poznaƒ - Etap I ul. Marceliƒska, 60-801 Poznaƒ

69,300

LEED 2009 Core & Shell pre-certificate (Gold)

Bicycle parking; sanitary facilities and locker rooms for cyclists; use of regional materials and products with low emissions; green roofs; water-efficient fittings; collection and re-use of rainwater for irrigation of green areas; energy-efficient lighting (control system, motion sensors); energy-efficient ventilation and cooling system

WND

Ahlqvist & Almqvist arkitekter / Perspective, Arcade Polska SwedeCenter PORR Polska

WND WND

2014

Crown Square ul. Przyokopowa 31, 01-208 Warsaw

24,000

BREEAM GROP-BUIBHVD02-4 (Very Good)

Energy-efficient elevators and lighting; water-efficient fittings; use of materials with low emissions

GATX; Nike; Oracle

Konior & Partners Ghelamco Poland Ghelamco Poland

WND WND

2010

Enterprise Park Al. Powstaƒców Wielkopolskich 13C, 30-707 Kraków

15,165

BREEAM pre-certificate (Very Good)

WND

Cisco; Delphi

DDJM Avestus Real Estate Eiffage-Mitex

Avestus Real Estate Avestus Real Estate

2012

Eurocentrum Office Complex Al. Jerozolimskie 124/134, 00-813 Warsaw

65,800

LEED Core & Shell precertificate (Gold)

Amenities for cyclists; electric-car charging station; use of regional materials; efficient waste management; water-efficient fittings; external blinds; air conditioning and ventilation system with heat recovery; energy-efficient lighting

Imtech Polska; Tebodin; Qumak; CEPD Management (Pelion)

PRC Architekci Grupa Capital Park ERBUD

Cushman & Wakefield WND

2014

Gdaƒski Business Center I ul. Inflancka 4, 00-189 Warsaw

71,513

BREEAM pre-certificate (Very Good)

Energy supply from renewable sources; electric-car charging station; recovery of rainwater; amenities for cyclists; ventilation with heat recovery; freecooling system

WND

E&L Architects HB Reavis Poland HB Reavis Construction PL

WND WND

2014

Green Day ul. Szczytnicka 9, 50-832 Wroc∏aw

28,757

LEED Core & Shore precertificate (Gold)

Green energy; use of recycled materials; increased ventilation; use of products with low emissions; zone heating control system; maximized access to daylight; energy-efficient lighting; freecooling system; adiabatic humidifiers; highly efficient heat recovery system; energy-efficient elevators (energy recovery function during elevator brake)

WND

Maçków Pracownia Projektowa Skanska Property Poland Skanska

WND WND

2014

Green Horizon ul. Pomorska 106, 90-233 ¸ódê

58,944

LEED Core & Shell precertificate (Gold)

Increased ventilation; use of products with low emissions; zone heating control system; maximized access to daylight; use of recycled materials, regional materials and certified wood; energy-efficient lighting; freecooling system; fan coil units; adiabatic humidifiers; highly efficient heat recovery system; energy-efficient elevators (energy recovery function during elevator brake)

Infosys BPO Poland; Medicover; SouthWestern; BNP Paribas; PKO Bank Polski

Medusa Group Skanska Property Poland Skanska

WND Cushman & Wakefield

2013

Green Towers A, B ul. Ârubowa 1/ul. Strzegomska 36, 53-611 Wroc∏aw

41,949

LEED Core & Shell (Platinum) for building A; LEED Core & Shell precertificate (Platinum) for building B; EU Green Buildings Certificate for building A

Energy optimization; green energy (building will be supplied with energy with certificate of origin from a renewable source); increased ventilation; use of products with low emissions; zone heating control system; maximized access to daylight; energy-efficient lighting; freecooling system; fan coil units; adiabatic humidifiers; highly efficient heat recovery system; energy-efficient elevators (energy recovery function during elevator brake)

Dolby; Ernst & Young; Allegro Group; Talex; Medicover; Becton Dickinson

Maçków Pracownia Projektowa Skanska Property Poland Skanska

WND Colliers International Poland

2013

Greenwings Offices ul. 17 Stycznia, 02-146 Warsaw

12,736

Individual control and monitoring of electricity, heating, cooling and water consumption; ecological BREEAM GROP-BIB-HVD02- finishing materials; optimal access to daylight; heating and cooling zone controls; high indoor air quality; 8 (Very Good) access and amenities for people with disabilities; amenities for cyclists; double facade; flat-roof technology

WND

JEMS Architekci Okre Development CFE Polska

Cushman & Wakefield Polska; NAI Estate Fellows WND

2014

Grzybowska 81 ul. Grzybowska 81, 00-844 Warsaw

10,000

BREEAM (pending)

Raised floors; suspended ceilings; building management system (BMS); structured cabling; smoke/heat sensors; openable windows

WND

Grupa 5 Unidevelopment Unibep

WND Unidevelopment

2012

Kapelanka 42 ul. Kapelanka 42, 30-347 Kraków

60,450

LEED Core & Shell precertificate (Gold)

Increased ventilation; use of products with low emissions; zone heating control system; maximized access to daylight; water-efficient fittings; energy-efficient lighting; freecooling system; fan coil units; adiabatic humidifiers

WND

Medusa Group Skanska Property Poland Skanska

WND WND

2014

Katowice Business Point ul. Âciegiennego 3, 40-114 Katowice

27,000

BREEAM GROP-BIB-HVD022

Raised floors; suspended ceilings; central ventilation and humidification system; central building management system (BMS); unlimited access to daylight

PwC; PGD (Infinity)

Jaspers-Eyers & Partners Ghelamco Poland Ghelamco Poland

WND Cushman & Wakefield

2010

THE LIST

NOVEMBER 25 – DECEMBER 1, 2013

Building name Address

www.wbj.pl

21

Gross Building Area (sqm)

Certificates

Solutions applied/Technologies used

Major tenants

Architect / Developer / General contractor

Leasing agent / Building manager

Year completed

Konstruktorska Business Center ul. Konstruktorska 13, 02-673 Warsaw

84,276

BREEM pre-certificate (Very Good)

Energy supply from renewable sources; electric-car charging station; recovery of rainwater; amenities for cyclists; ventilation with heat recovery; freecooling system

HB Reavis Poland; Otis; Carrier

Epstein HB Reavis Poland HB Reavis Construction PL

CBRE NAI Estate Fellows

2013

¸u˝ycka Plus ul. ¸u˝ycka 3C, 81-537 Gdynia

7,270

BRREAM 0044-4844 pre-certificate (Very Good)

Facade with high thermal and acoustic parameters; freecooling system; advanced building management system (BMS); maximized access to daylight; acoustic analysis

WND

AEDAS Polska Allcon Investment Allcon Budownictwo

WND ¸u˝ycka Investment

2013

Malta House ul. Abpa Antoniego Baraniaka 1/17, 00-054 Poznaƒ

28,960

LEED Core & Shell precertificate (Platinum)

Facade with high thermal insulation; ability to use the heat recovered from the offices for heating the garage; reducing heat island phenomenon; use of materials with low volatile organic compounds content; use of certified wooden components; bicycle parking; sanitary facilities and locker rooms for cyclists; water-efficient fittings; use of recycled materials, regional materials; freecooling system; energy-efficient lighting; adiabatic humidifiers; fan coil units

Skanska

Pentagram Architekci Skanska Property Poland Skanska

Savills WND

2013

79,000

BREEAM-0032-1166 (Very Good); EU Green Buildings Certificate

Jaspers-Eyers & Partners Ghelamco Poland Ghelamco Poland

DTZ WND

2011

Nordea; General Directorate for National Roads and Motorways; Ruch

MW Projekt Skanska Property Poland Skanska

WND Jones Lang LaSalle

2013

Mokotów Nova ul. Wo∏oska 22, 02-675 Warsaw

Building Management System and Supervision (BMS): energy-efficient air conditioning (economy mode Cargill; Hyundai Motor Poland; Medicover; after 7 p.m., on weekends and holidays); highly efficient heat and humidity recovery systems; highly BMW; LG Electronics Polska; Reckitt efficient air cooling systems; ventilation of technical facilities with air removed from office floors; Benckiser; CBG International; Svenska energy-efficient solutions in restrooms (motion sensors, phototubes, energy-efficient LED lighting); Handelbanken; Lego Polska; Prima Pasta; energy-efficient elevators (energy recovery function while going down); special water meters, Ghelamco Poland electricity meters, light fixtures; openable windows; raised floors; suspended ceilings

Reducing heat island phenomenon; bicycle parking and sanitary facilities for cyclists; electric-car charging station; increased ventilation; zone heating control system; use of materials with low volatile organic compounds content; use of plants that don't need watering in open green areas; ability to use LEED Core & Shell (Platinum); the heat recovered from the offices for heating the garage; use of regional materials; modern airEU Green Buildings Certificate conditioning system; water-efficient fittings; energy-efficient lighting; facade and windows with high thermal insulation; photovoltaic panels; adiabatic cooling; adiabatic humidifiers; freecooling system; highly efficient heat recovery system

NORDEA HOUSE/Green Corner ul. Ch∏odna 52/54, 00-872 Warsaw

46,500

Okràglak/Kwadraciak ul. Mie∏˝yckiego 14, 61-725 Poznaƒ

12,890

BREEAM 0047-9550/00479220 (Pass)

Rainwater recovery; reactive power compensator; energy-efficient lighting; BMS system

Rule Financial; Prudential; Nordea; Kredyt Bank; Intermax; Open Finance; SSW; Exorigo; Grynhoff; GWW; Colliers International; Tuxbel Engineering

Marek Leykam, Krzysztof Czarnecki RKW Immobel Poland Elektrobudowa

WND WND

2012

Olivia Business Centre (Olivia Gate) Al. Grunwaldzka 472A, 80-309 Gdaƒsk

18,000

BREEAM Post-construction (pending)

Unlimited access to daylight; openable windows; green roof; amenities for cyclists; energy-efficient lighting; water-efficient fittings; waste management

SII; GFKM; AOS; EO; EC; Goyello; PwC; Meritum; Tax Care; Energa

Konior & Partners TPS Otwarta Przestrzeƒ Przembud / Pekabex

TPS Otwarta Przestrzeƒ TPS

2011

Olivia Business Centre (Olivia Point + Olivia Tower) Al. Grunwaldzka 472A, 80-309 Gdaƒsk

23,800

BREEAM Design Stage, BREEAM Post-construction (pending)

Unlimited access to daylight; openable windows; green roof; amenities for cyclists; energy-efficient lighting; water-efficient fittings; waste management

Bayer; American Bureau of Shipping; Grupa Energa; Tax Care

Konior & Partners TPS Otwarta Przestrzeƒ Pekabex

TPS Otwarta Przestrzeƒ TPS

2012

OXYGEN ul. Malczewskiego 26, 71-612 Szczecin

18,091

Tieto Poland; Medicover; Enea

Arch-Deco Echo Investment WND

WND Echo Investment Property Management

2010

Park Rozwoju ul. Konstruktorska 10, 02-673 Warsaw

32,000

BREEAM-004305206 (Very Good)

WND

Schneider Electric Polska

JEMS Architekci Echo Investment WND

Echo Investment WND

2014

Poleczki Business Park B1 ul. Osmaƒska 14, 02-823 Warsaw

8,500

LEED Core & Shell (Gold)

Use of environmentally-friendly regional materials; bicycle parkings; sanitary facilities and locker rooms for cyclists; parking for LEV (Low-Emitting and Fuel-Efficient Vehicle); unlimited access to daylight; water-efficient fittings; reducing energy consumption and CO2 emissions; external blinds

Tetra Pak; Astellas Pharma

UBM Polska Poleczki Business Park PORR Polska

Jones Lang LaSalle; Colliers International FMP Planning and Facility Management Poland

2012

Poleczki Business Park C1 ul. Osmaƒska 12, 02-823 Warsaw

12,700

LEED Core & Shell (Gold)

Use of environmentally friendly regional materials; bicycle parking; sanitary facilities and locker rooms for cyclists; parking for LEV (Low-Emitting and Fuel-Efficient Vehicle); unlimited access to daylight; water-efficient fittings; reducing energy consumption and CO2 emissions; external blinds

ILF Consulting

UBM Polska Poleczki Business Park PORR Polska

Jones Lang LaSalle; Colliers International FMP Planning and Facility Management Poland

2012

Quattro Business Park A Al. Bora-Komorowskiego 25A, 31-476 Kraków

16,286

BREEAM Asset, Building Management (pending)

WND

Capgemini Polska; UBI Factor; Berner Polska; Open Finance; Aviva; Buma Service

Kury∏owicz & Associates Buma Inwestor Buma Contractor

WND Buma Service

2010

Quattro Business Park C Al. Bora-Komorowskiego, 31-476 Kraków

15,880

WND

Kury∏owicz & Associates Buma Inwestor Buma Contractor

WND Buma Service

WND

Senator ul. Bielaƒska 12, 00-085 Warsaw

45,000

BREEAM-00032-1141 (Very Good); EU Green Buildings Certificate

Raised floors; suspended ceilings; building control computer system; HVAC system with central air humidification function and the ability to individually adjust the temperature; BMS (Building Management System); structured cabling

PKN Orlen; Grupa Rabobank; Euronet; BRE Bank; Discovery Networks CEEMEA; Legg Mason

Jaspers-Eyers & Partners / AB-Projekt, Architraw GB Ghelamco Poland Ghelamco Poland

DTZ WND

2012

Sterlinga Business Center ul. Sterlinga 8A, 91-425 ¸ódê

13,400

BREEAM BPHS-BIB-MD27-1 (Good)

WND

Takeda; Rule Financial; Tate & Lyle; Philips

AEDAS Hines Polska Budimex

Cushman & Wakefield Cushman & Wakefield

2010

Trinity Park III ul. Domaniewska 49, 02-672 Warsaw

27,000

BREEAM GROP-BIB-HVD02-5 (Very Good)

Energy-efficient elevators and lighting; use of materials with low emissions; extensive system of building management (BMS)

Unilever; Arval; Enelmed; MTV; CTL Logistic; Kraft Foods Polska; Lu Polska; Amadeus Polska; PPD

Jaspers-Eyers & Partners Ghelamco Poland Ghelamco Poland

WND WND

2009

West Station I Al. Jerozolimskie 144, 02-305 Warsaw

48,395

BREEAM pre-certificate (Excellent)

Energy supply from renewable sources; electric-car charging station; recovery of rainwater; amenities for cyclists; ventilation with heat recovery; freecooling system

WND

FS&P Arcus HB Reavis Poland HB Reavis Construction PL

WND WND

WND

Wola House Al. Prymasa Tysiàclecia 79, 01-242 Warsaw

40,219

WND

WND

WND

Pawe∏ W. Graliƒski Arch Magic Unidevelopment Unibep

WND WND

2015

EU Green Buildings Certificate Ventilation and air-conditioning system based on heat pumps; heat recovery; energy-efficient elevators

Energy-efficient lighting and elevators; water-efficient fittings; use of certified materials; waste BREEAM WSPSP-BIB-MS45-2 management; bicycle parking; sanitary facilities and locker rooms for cyclists; protection of local wildlife (Very Good) during construction work

Notes: WND = Would Not Disclose. Research for The List was conducted in February/March 2013. Companies not responding to our survey are not listed.

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to online@bookoflists.pl. Copyright 2013, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

22

SPORTS

www.wbj.pl

NOVEMBER 25 – DECEMBER 1, 2013

Soccer

Kubica crashes twice in WRC debut

Nawa∏ka gets off to a bad start

Robert Kubica’s first WRC race was memorable, but for all the wrong reasons

Poland’s new national team coach failed to win his first two games

Robert Kubica got a chance to participate in the last WRC rally of the season after he secured the WRC2 championship (a parallel series to WRC), and was invited by the Citroen team to participate in the Rally GB. Despite his great success in the WRC2 series, winning five out of seven races, Mr Kubica expected no miracles before his debut in the most prestigious rally series. “It will be impossible for me to be on pace or close enough to the top five or six. [If that were to happen], with all the other drivers’ experience, it would mean something is wrong in the system,” he said before the start.

And indeed, in the qualifying stage Mr Kubica placed seventh. He continued in the same spot until a crash during the fourth special stage. Mr Kubica admitted that the accident was the result of his own mistake. “I misjudged the grip while under-braking,” he

Adam Nawa∏ka’s first game as Poland’s national soccer team coach ended in disappointment for fans of the side. The 0-2 loss to Slovakia after a poor showing resulted in booing and heckling from a raucous crowd in Wroc∏aw.

Old ghosts haunted the Polish team in their first game under new guidance. The team looked disorganized and unprepared: the defense made blatant mistakes that led to a number of opportunities for the Slovaks to score, while the midfield did not have a clue how to take control of posses-

COURTESY OF WIKIMEDIA COMMONS/ANTTI LEPPÄNEN

Rally

Robert Kubica during the 2013 Rally Finland different sounds, everything,” said Mr Kubica.

With the current season over, the question remains what’s in store next for Mr Kubica. After easily winning the WRC2, it would be logical if he were to be signed by a WRC team. Citroen has already confirmed that it is in talks with the Polish driver regarding next season, although it didn’t specify if the team wants him to drive in the WRC events or other other rally series.

Still, with several of the team’s players in top international squads, the problem shouldn’t be lack of quality – but the talent isn’t showing up in international games.

Some could say that the players Mr Nawa∏ka called up for the first team disappointed. While it is true that most of the new players showed that they are not ready for the national team, perhaps it’s better that Mr Nawa∏ka has learned this during friendlies rather than after an important qualifying campaign match.

The only hope is that both Mr Nawa∏ka and his players will now improve and start winning games.

Jacek Ciesnowski

Jacek Ciesnowski

SHUTTERSTOCK

explained.

However, the second crash, which came on the second day and ultimately ended his participation in the rally, was due to a miscommunication with his new co-driver, the Italian Michele Ferrara.

Even though Mr Kubica speaks fluent Italian, receiving instructions in Italian was not as easy as had earlier been expected.

“It is more difficult for me now to change back to Italian than to learn from zero: everything is different ... I am used to

sion. As a result, Poland’s offensive players were given hardly any opportunities to put the ball in the back of the net.

There was a slight improvement in Poland’s second game against Ireland, this time in Poznaƒ. The Boys in Green also have a new coach, with Martin O’Neill taking up the post two weeks earlier. It was apparent during the match that both teams are still a “work in progress,” with the mundane game ending in a goalless stalemate.

Nevertheless, it is too early to call Mr Nawa∏ka’s nomination a failure. After just two weeks with him at the helm, it would have been naive to expect much of a change in the team’s tactics and mindset.

Adam Nawa∏ka

Museums, galleries and venues in Warsaw

DAILY EXECUTIVE DIGEST

Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

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

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

Galeria 022, DAP, Lufcik ul. Mazowiecka 11a www.owzpap.pl Galeria 65 ul. Bema 65 www.galeria65.com Galeria Appendix 2 ul. Bia∏ostocka 9 www.appendix2.com Galeria Asymetria ul. Nowogrodzka 18a www.asymetria.eu Galeria Foksal ul. Foksal 1-4 www.galeriafoksal.pl Galeria Milano Rondo Waszyngtona 2A www.milano.arts.pl Galeria Schody ul. Nowy Âwiat 39 www.galeriaschody.pl

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

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 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.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

Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.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.wilanow-palac.pl www.postermuseum.pl

Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl

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

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

LIFESTYLE

NOVEMBER 25 – DECEMBER 1, 2013

www.wbj.pl

Ballet

Concert

Clash of the ballets

Canadian Sinatra

Russian National Ballet, Moscow City Ballet December Various dates and cities

Matt Dusk November 25-28 Poznaƒ, Wroc∏aw, Warsaw and Gdaƒsk

Jacek Ciesnowski

Even though he hails from Canada, Matt Dusk has been acclaimed by many as a contemporary personification of the greatest American singers such as Frank Sinatra, Dean Martin or Tony Bennett.

Mr Dusk’s rise to fame has been a unique story. He started performing operas while in school, but after hearing Tony Bennett and Sara Vaughan at the age of 17 he changed his style. He won the Canadian National Exhibition Rising Star Competition, beating over 600 other contestants, and in the same year he enrolled at university to study economics and eventually take over the family business.

Luckily for fans, that didn’t last long, and one year later, Mr Dusk was back again studying and performing music. In 2004 he released his major label debut “Two Shots,” and the first single of the record was written by none other than Bono and The Edge from U2. He also secured a 42-piece string section for the album. Not bad for a rookie.

Mr Dusk has released four

Matt Dusk

COURTESY OF MATT DUSK

The Moscow City Ballet is a regular visitor to Poland.

So far some 150,000 people have attended their shows in the country. This year’s visit will be unique as it will be the first after the ballet’s founder and main choreographer Victor SmirnovGolovanov died back in April. His duties were taken over by his wife Ludmila Nerubashenko.

The Russian National Ballet

COURTESY OF THE RUSSIAN NATIONAL BALLET

It has become tradition that every year in late November or early December a number of ensembles visit Poland to tour with their acts. Whether it’s a ballet, a choir or an opera, the end of the year brings a treasure trove of cultural gems.

This year, among such acts, two Russian ballets will present their performances in Poland.

First up is the Russian National Ballet, which will tour four cities in northern Poland. Between December 11 and 14 they will perform in W∏oc∏awek, Gdaƒsk, Elblàg and S∏upsk with their version of “Swan Lake.” The ballet, founded in 2001 by Evgeny Amosov – a representative of the new wave of Russian ballet – will see his troupe showcasing promising young artists with high creative potential, both classical and contemporary.

The other Russian ballet group that will visit Poland in December is the Moscow City Ballet, which between December 8 and 23 will perform 19 times throughout

the country’s largest cities.

The Moscow troupe will also present its version of “Swan Lake,” so ballet aficionados will be able to compare the two adaptations. On selected dates, the ballet will also present “The Nutcracker.”

The group, founded in 1988, was one of the first privately owned Russian companies, and is not subsidized or controlled by the Russian government.

23

full-length studio albums so far, with the latest, “My Funny Valentine: The Chet Baker Songbook” having come out in February this year. The album pays homage to one of the most popular musicians of the 20th century, trumpet player and singer Chet Baker. The album went gold, Mr Dusk’s third album to do so.

In 2013 he also recorded a

duet with famous Polish singer Edyta Górniak, a new version of Frank Sinatra’s classic “All The Way.” During the current tour he will visit Poznaƒ, Wroc∏aw, Warsaw and Gdaƒsk, between November 25-28.

Jacek Ciesnowski

For more information on venues and ticket prices visit mattdusk.com/tour

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