WBJ #39 2012

WBJ launched its Investing in Poland 2013 publication this week with a conference at the WSE

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The Law and Justice party is trying to refocus on economic issues, but can’t get away from the Smolensk tragedy

VOLUME 18, NUMBER 39 • OCTOBER 1-7, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

Unplug yourself COURTESY OF HINES POLSKA

REAL ESTATE

• IKEA mall extension • Office supply 15-17 • Oxygen park

Privatization power The government’s IPO of ZE PAK is set to be the largest on the WSE 6 this year

“De-teching” is gaining in popularity as people face information overload. How can businesses capitalize 12-13 on the trend?

In this issue

SHUTTERSTOCK

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Investing in Poland conference . . . . .7-8 Opinion & Analysis . . . . . . . . . . . . . . . . .10 Finance & Economics . . . . . . . . . . . . . . .11 Cover Story . . . . . . . . . . . . . . . . . . . . .12-13 Interview . . . . . . . . . . . . . . . . . . . . . . . . . .14 Lokale Immobilia . . . . . . . . . . . . . . .15-18 The List . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Markets . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Sports . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Lifestyle . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Last Word . . . . . . . . . . . . . . . . . . . . . . . . .23

The pain in Spain

Loosening up?

Summer may be over, but the euro crisis is heating up again 3

Will the Monetary Policy Council finally cut interest rates this week? 11

NEWS

www.wbj.pl

No further JSW privatization?

A deputy treasury minister said last week that the Treasury could think about reducing its 57% stake in Jastrz´bska Spó∏ka W´glowa, Poland’s largest producer of coking coal, to 34% – a level that would allow it to maintain corporate governance.

However, Economy Minister Waldemar Pawlak said later on that it would not be a good idea to go below 50%, Rzeczpospolita reported.

The Economy Ministry has the final say when it comes to the sale of mining assets. ●

80% is the percentage of smartphone users in Poland who regularly use mobile applications, according to a survey by ARC Rynek i Opinia.

2.06 million was the number of Polish citizens living abroad at the end of 2011, according to data provided by the Central Statistical Office.

61% is the projected growth of the video games market in Poland in 2012.

Quote of the Week “I take full responsibility for the state’s actions after the catastrophe.”

Prime Minister Donald Tusk, addressing parliament last week in response to allegations by the opposition that his government had botched the handling of affairs after the 2010 Smolensk plane catastrophe which killed then-President Lech Kaczyƒski and 95 others.

Figures in focus Auto exports Extra EU-27 export of motor cars, 2011 (€ millions), selected countries 60,000 50,000 40,000

On WBJ.pl

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Hopeful about Europe

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Source: Comext

Company index 4P Research Mix ..............12 GLL Real

DATELINE ‘BUSINESS IS TALKING’

Event:

Web:

This congress, organized by Netia, is an experience-exchange platform for new technologies and their application in business. It provides knowledge of ICT solutions and innovation technologies. Each year, the congress brings together over 1,000 participants, and is strongly supported by TVN CNBC. This year’s theme will be “Integration, Innovation, Inspiration.”

Multikino Z∏ote Tarasy, Warsaw biznestorozmowy.pl

8-10

EXPO REAL 2012

Event:

This commercial real estate trade fair – one of the biggest in Europe – focuses on networking, market orientation and cultivating valuable business contacts. Across the 64,000-sqm site, 1,610 exhibitors present their real estate product portfolios.

Messe München, Munich Exporeal.net

Location:

Location: Web:

10-11 INTERNATIONAL FORUM ON PUBLIC-PRIVATE PARTNERSHIPS

Netia....................................4

ARC Rynek i Opinia ............2 Estate Partners ................15 Nokia ................................13 Archico Project ................17 Golden Forest Hermitage 13 Peter Nielsen & Partners ..6

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The euro crisis has flared up again, but Belgian Deputy Prime Minister and Minister of Foreign Affairs Didier Reynders is optimistic about the future. In a special essay for WBJ, he explains why he sees a bright future for the continent, and why he favors a federal Europe. Log on to WBJ.pl to read more.

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Bank BG˚ wants to cut up to 380 jobs in order to improve its financial results, reported Rzeczpospolita. “The board informed trade unions operating at the bank about its intention to carry out group layoffs.

“The planned restructuring will involve not more than 380 job cuts by the end of the first half of 2013,” reads the bank’s official statement.

According to the statement, BG˚’s current financial position forced it to make the decision.

ed to solve.” As an example, he pointed to the Security Council’s efforts to deal with the issue of Syria. Tougher measures to deal with the conflict there have been vetoed by China and Russia.

The Polish president said conflicts could not be resolved without “compromise,” citing as an example the 1989 Round Table agreements in Poland, which ushered in a peaceful handover of power from the communist authorities to the Solidarity opposition movement.

“Both sides in that great social conflict, the communist authority on one side and the

is the amount Poles spend annually on private medical services.

nia

BG˚ to cut 380 jobs

Poland’s view on international affairs had its day in the spotlight during the United Nations General Assembly in New York last week. President Bronis∏aw Komorowski, who addressed the assembly, said NATO’s operation in Afghanistan, in which Poland plays a major role, has shown that a “military-first approach is not the best way to resolve difficult internal conflicts.”

Speaking on the state of the UN, President Komorowski said it is “undisputed that international institutions have shown a weakness in resolving the problems they were creat-

pro-democracy Solidarity movement, which in effect wanted to do away with communism, showed wisdom in reaching a compromise,” Mr Komorowski said.

The Polish president also said the world could not be run by a few superpowers, supporting instead a greater role for “multinational institutions and mechanisms.”

While in New York, Mr Komorowski also spoke with Barack Obama on the thorny issue of visa-free travel for Polish citizens to the US. Mr Komorowski told reporters after the meeting that the US president himself brought up the the visa issue saying it was “a commitment” he had made and “an issue to be sorted out.”

“We have to be aware that to push a visa lifting law through Congress, we need the votes of Democrats and Republicans alike,” President Komorowski said.

Meanwhile, Foreign Minister Rados∏aw Sikorski, who also attended the General Assembly, said his “main mission” there was to lobby for Poland to become a non-permanent Security Council member from 2018 to 2019. He said the CEE region is “underrepresented” in many international organizaRemi Adekoya tions.

z∏.30 billion

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Poland’s public debt-toGDP ratio has finally started to fall, figures for year-end are expected to show. At the end of 2012, public debt will reach 52.4% of GDP, according to government forecasts.

That’s 1.1 percentage points lower than a year ago. It will be the first year the ratio will have decreased since 2007.

Poland’s international role

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Debt-to-GDP to fall

Numbers in the News

COURTESY OF FLICKR/PRESIDENT.PL

Poles will pay more in taxes while millions will feel the pain of budget cuts in 2013, according to the government’s newly adopted budget for next year, as reported by Rzeczpospolita. Civil servants’ and teachers’ salaries will not increase while pensions will probably grow by less than 4%. Meanwhile, it is expected that the average Pole will pay roughly z∏.7,000 in taxes next year, compared to z∏.6,600 this year and z∏.6,400 in 2011.

IN THE SPOTLIGHT

Po la

Tax hikes coming

OCTOBER 1-7, 2012

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Axi Immo ..........................17 Google ..............................12 PGE ....................................6 Event:

Location:

Web:

Organized by the British Polish Chamber of Commerce, this event will focus on international, municipal and regional infrastructure.

Column Hall of the Ministry of Economy, Plac Trzech Krzy˝y 3/5, Warsaw bpcc.org.pl

Bank Gospodarstwa Krajowego ........................11 Bank Pekao ........................6 BDM ....................................6 BG˚ ....................................2

25 Event:

Location: Web:

OFFICE BUILDINGS IN POLAND This 5th edition of the conference, organized

by Nowy Adres, will feature over 30 expert speakers, as well as a number of lectures and panel discussions. It promises to be a great meeting opportunity for senior management of companies in the Polish office market.

Warsaw Marriott Hotel konferencje.nowyadres.pl/office-buildings-inpoland.php

24-28 FASHIONPHILOSOPHY Event:

Location: Web:

FashionPhilosophy Fashion Week Poland is the biggest fashion event in the region, say organizers. This event will present Spring/Summer 2013 trends. ¸ódê www.fashionweek.pl

Gras Savoye Polska ..........17

PGNiG ................................6

Hamilton Sundstrand ........8 Platforma Mediowa Hines ................................15 Point Group ........................6 IKEA ..................................15 ING ....................................11 Inter IKEA

Polimex-Mostostal ............6 PORR ................................17

Bloomberg ........................11 Centre Group Poland........15 PwC ....................................7 BNP Paribas ....................16 JEMS Architekci................16 RD bud ..............................16 BPD ..................................15 Jones Lang LaSalle..........15 Samsung ..........................13 BRE Bank..........................11 JSW ....................................2 Skanska Property Catalyst Capital ................15 JWT ..................................13 CBRE ..........................15, 16 Colliers International ......16 DTAC..................................13 Enea ....................................6

KGHM..................................6

Poland ..............................15 Tauron ................................6

Kronos Real Estate ..........17 TVN....................................20 London Stock US Coolers........................23 Exchange Group ................7

Euro RSCG ........................12 Lotos ..................................6 Warsaw Stock Exchange ..6, 7 Europlan............................17 Master

West Coast Capital ..........15

Facebook ......................3, 12 Management Group..........17 XMC Branded Products....23 Falcon Real Estate

Modzelewski & Rodek......17 Yareal Polska ..............15, 16

Investments ......................15 Nescafé ............................13 ZE PAK ................................6

NEWS

OCTOBER 1-7, 2012

www.wbj.pl

Euro zone crisis

Greek and Spanish protests fueling concerns

SHUTTERSTOCK

After a brief period of optimism following measures announced to shore up confidence in the euro zone, intensified anti-austerity protests in Greece and Spain coupled with Madrid’s dire financial situation are now reminding everyone just how distant stability in Europe remains.

While observers have become used to mass anti-austerity protests in Greece, the fact that they are spreading through Spain is more worrying, as the country’s economic problems get compounded by political instability.

On the one hand, borrowing costs for Spain stubbornly remain in uncomfortably high territory (above 6 percent) while on the other hand, Catalonia, the country’s richest region, has called for a referendum on its independence.

Add to that markets’ belief that Spain is wasting precious

SHUTTERSTOCK

Worries have returned about the euro zone’s ability to solve its problems

Embattled Prime Minister Mariano Rajoy of Spain time by not requesting the financial aid most believe it desperately needs and it’s easy to see why pessimism is returning.

But Madrid may have taken a step in the right direction last week regarding outside financial help.

The country’s government unveiled a package of regulatory overhauls, tax increases and spending cuts for 2013, which were well-received by markets, bringing at least

some short-term respite to embattled Prime Minister Mariano Rajoy. The yield on Spain’s 10-year sovereign bond fell to under 6 percent on the news.

Madrid promised to implement several EU policy recommendations, including the elimination of overlapping regulations set by different levels of government, further loosening of rigid labor laws and placing limits on early

Protesters demand independence for Catalonia retirement. It also promised to set up an independent agency to monitor budget policy and to offer new tax incentives for small businesses.

The European Commission praised the measures.

“This new structural reform plan responds to the countryspecific recommendations issued to Spain … and goes even beyond them in some areas,” said Olli Rehn, EU commissioner for economic

and monetary affairs.

The reforms could help Madrid obtain financial aid from the euro zone’s emergency fund, if the government requests it, by putting Spain in compliance with some of the requirements beforehand.

Poland’s finance minister Jacek Rostowski has supported extending aid to Spain, describing it as an act of “realism.”

Remi Adekoya

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Facebook to open Poland office Facebook is set to open an office in Warsaw that will look after the company’s interests in Central and Eastern Europe, reported Rzeczpospolita. Staff there will focus on selling advertisements and collaborating with local programmers. The Warsaw offices will be Facebook’s HQ for 30 countries in the region.

Its head will be Diego Oliva, who has already opened five regional Facebook offices across Europe. Facebook chose Poland because it believes Poland’s economic performance has been solid in recent years.

Poles trust their president Polish President Bronis∏aw Komorowski enjoys the greatest public confidence among all the politicians in the country, according to a recent CBOS poll. As many as 67% of Poles say they trust their president, Rzeczpospolita wrote. ●

NEWS

www.wbj.pl

More loans granted The value of consumer and housing loans granted last month was significantly higher than in July, according to data published by the National Bank of Poland, Parkiet reported. The combined value of loans granted for the purchase of residential properties was some z∏.4.8 billion higher, while the value of consumer loans increased by some z∏.183.2 million.

Hard times for small firms As the global economy slumps, small enterprises are the ones that suffer the most, writes Rzeczpospolita. A survey carried out by the Ministry of Economy shows that every fourth such company in Poland closed the first half of the year in the red. “Small firms have the least room for maneuver when it comes to cost reduction.

Each drop in the number of orders hits them very hard,” said Prof. Maria Drozdowicz-Bieç from the Warsaw School of Economics. ●

OCTOBER 1-7, 2012

Politics

PiS trapped between Smolensk and the economy Poland’s biggest opposition party is trying to refocus on economic issues, but just can’t stay away from politicizing the Smolensk tragedy With increasingly dire macroeconomic data coming out of Poland, the country’s largest opposition party, Law and Justice (PiS), has responded by presenting its proposals for growth and organizing a highprofile debate on the economy.

But still it seems unable to put behind it the 2010 Smolensk airplane catastrophe, which killed party co-founder and former President Lech Kaczyƒski and 95 others.

Last Monday, PiS hosted an economic debate attended by, among others, Stanis∏aw Gomu∏ka, chief economist of the Business Centre Club, presidential economic adviser Jerzy Osiatyƒski and Adam Glapiƒski, a member of the National Bank of Poland’s interest-rate setting council.

The stated intention of the debate was to discuss the economic proposals PiS had put

forward a few weeks ago.

The party wants a 10-year program to create 1.2 million jobs, unification of the PIT and CIT tax codes, vouchers for poorer families to spend on sending their children to preschool and the repeal of the recent pension reform, which raised the retirement age to 67 for both men and women.

But the debate turned out to be more of a series of wish-lists presented by each economist in attendance.

It was nevertheless wellreceived by political observers, who praised PiS for putting the focus on the bread-and-butter issues that affect Poles’ everyday lives instead of continuously slamming the government for its handling of the aftermath of the Smolensk catastrophe.

Here we go again However, by the middle of

the week the Smolensk issue had resurfaced.

PiS reacted strongly to revelations that a second autopsy found that legendary Solidarity figure Anna Walentynowicz, who died in the tragedy, had been buried in the wrong grave.

Mr Kaczyƒski said the findings amounted to a “gigantic scandal” and that those responsible for the catastrophe should “leave politics and remain in lifelong infamy.”

He demanded the resignation of Ewa Kopacz, the current speaker of parliament, who was minister of health at the time of the autopsies and who had assured Poles that she personally witnessed Polish doctors examining each of the Polish bodies.

Ms Kopacz has now said she wasn’t present beside “all the coffins.”

In a parliamentary debate on the issue, Prime Minister Donald Tusk said that Smolensk should no longer be

COURTESY OF FLICKR/WYBIERZPIS.ORG.PL

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Mr Kaczyƒski is trying to show he cares about breadand-butter issues a “permanent excuse to wage a political war in Poland.”

The PM apologized to the families of the victims for mistakes made, saying he accepts full responsibility for them.

Believe me or believe him “PiS has recently been trying to show that it is not only interested in Smolensk but in the economy as well and, importantly, that it is open to various opinions on the issues. Meanwhile, the ruling Civic Platform party is saying PiS is only pretending to be interested in economics, but in reality it is a one-issue party,” said Sergiusz Trzeciak, a political analyst at Collegium Civitas.

“In a few months’ time, we will see who Poles find more credible,” he added.

Mr Trzeciak said PiS knows it cannot win back power without going beyond its “core electorate,” hence the recent focus on the economy.

As WBJ went to press, Mr Kaczyƒski was expected to take part in a demonstration over the weekend under the slogan “Wake Up Poland,” in defense of what his party sees as discriminatory acts by the state against media outlets such as ultra-conservative Catholic TV station Trwam.

It was not certain how PiS’s involvement in that march would play out among the voters it is trying to entice.

Remi Adekoya

Media Patronage

Netia’s ‘Business is Talking’ conference, October 4 have set for the event.

As in previous editions, we would again like to provide our participants with the possibility of meeting with a large group of various businesspeople, to exchange experiences acquired while operating in different industries, as well as have the opportunity to be inspired by the appearance of our special guest, Stewart Butterfield, the creator of Flickr.

Renata Filipek-Bary∏owska, Commercial Director – Business Unit, at Netia SA, discusses the goals and opportunities at Netia’s annual technology conference

What are the main aims of the “Business is Talking” congress?

Renata Filipek-Bary∏owska: This year’s motto for the Congress – Integration-Innovation-Inspiration – fully explains the goal which we

How has the congress developed over the period leading up to this fourth edition?

When we decided to organize the Congress for the first time a few years ago, there were many industry-specific conferences already available, but they were dedicated to particular markets and particular groups of experts.

We wanted to provide a more comprehensive view and create a place where you could find inspiration for developing your company as opposed to repeating the activi-

ties which already exist in a given industry. That is why we invite representatives who operate in different industries and especially people who can make decisions and take quick action if they notice something inspiring and useful for their company. After three editions we can safely say that our idea is working.

And we can say that by looking at the companies who are interested in organizing this event with us as Partners, as well as by looking at the participants who often refer to the topics discussed at the Congress.

What new insights and benefits do you expect those in attendance to gain about the use of innovative technologies in business?

It is often said that innovation is not a strong point of Polish companies. We do not fully agree with that view, but we also have to admit that there are not many examples of international success of Polish inno-

vations. We believe that such a meeting can change that and if our idea works out we will all benefit from it, since innovativeness translates into development.

In what ways can participants try out new technology at this year’s congress?

Each year we try to present to our participants new solutions from the very moment they enter the event site. This year, the participants will see new solutions already at the registration desk such as the possibility of creating a personalized online agenda for a given day. In the foyer they will have the opportunity to test a number of new Netia solutions as well as the solutions of its partners and will have a chance to find out more information about them from experts available at the stands. Some of our solutions will then be available as free-trial versions for the participating companies. ●

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BUSINESS

www.wbj.pl

Construction sector

OCTOBER 1-7, 2012

Print media

Polimex signs z∏.5.1 Publisher pulls Bloomberg Businessweek Polska publication billion Enea contract The hadn’t become

REPORTER

Poland’s Treasury Ministry plans to launch an initial public offering for its 50 percent stake in ZE PAK, Poland’s fifth largest electricity producer, in the fourth quarter of this year.

Banks running the IPO value ZE PAK at z∏.1.5-3.7 billion, Reuters reported. That would make it the Warsaw Stock Exchange’s biggest listing this year. If the privatization

150,000 125,000 100,000 75,000 50,000 25,000

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does raise that much, it would go a long way towards helping the government reach its privatization targets for 2012. The Treasury says it has already gained about z∏.8 billion of the z∏.10 billion it aimed to raise this year.

Polish billionaire Zygmunt Solorz-˚ak, who currently owns 49 percent of ZE PAK, reached a deal with the Treasury in August, allowing him to increase his stake to over 50 percent, thus gaining overall control of the company when

the firm’s IPO takes place, according to the Financial Times.

But if Mr Solorz-˚ak were to sell his shares and lose overall control of the energy producer within three years, the government would be entitled to a windfall bonus of any share-price increase, according to the terms of the agreement.

The vast majority (96 percent) of ZE PAK’s energy comes from lignite, also known as brown coal. In 2011, a total of 13.8 million metric tons of

brown coal were extracted from ZE PAK’s two mines, with the firm producing approximately 10.1 terawatt hours of electricity over the same period. It currently controls power stations with a total capacity of about 2.5 gigawatts.

Last year the ZE PAK group, which has a market share of 6.9 percent, had revenues of z∏.2.69 billion. Its earnings before interest, tax and depreciation came in at z∏.769 million.

David Ingham

Research & development

Legal News Contact: Miros∏aw Stefanik ms@pnplaw.pl

On September 14, the Polish parliament passed changes to the press law. The changes regard the enforcement of a judgment by the Constitutional Tribunal on corrections to inaccurate or false information that appears in print. The tribunal stated that the provision hitherto relating to press materials had failed to define in detail what attributes a criminal offense.

The amendment to the press law is designed to protect persons to whom published press material directly refers, by specifying the provisions in more detail.

The editor-in-chief of a given newspaper or magazine, upon a motion by the interested natural person or legal entity, will be obliged to publish a correction to faulty printed information free of charge.

The correction has to relate to the facts and should be made in writing within 21 days of the publication of the information in

Total sales – top 10 Polish weeklies, July 2012

Poland to launch ZE PAK IPO in Q4 The privatization could net the Treasury some z∏.3.7 billion

Changes to press law

Gareth Price

Privatization

Izabela Depczyk

Polimex-Mostostal got a big break with its new contract

leaning political news weekly Polityka sold 130,020 copies.

Wprost itself saw sales of 71,570.

PMPG did not submit Bloomberg Businessweek Polska sales figures to ZKDP, but Mr Lisiecki called them “disappointing” last week.

Weekly wonders

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Publisher Platforma Mediowa Point Group (PMPG) has decided to cease publication of financial biweekly Bloomberg Businessweek Polska because the magazine wasn’t able to turn a profit since its launch in September last year.

The final edition of Bloomberg Businessweek Polska, published under license from Bloomberg LP, was due to hit shelves on October 1.

PMPG’s plan called for a circulation of 18,000-20,000 copies per issue, while data collected by daily Gazeta Wyborcza showed the actual

ść

Troubled construction firm Polimex-Mostostal gained some much-needed breathing room last week after it signed a z∏.5.1 billion contract with statecontrolled electricity producer Enea to build a power unit at the utility firm’s Elektrownia Kozienice plant.

Polimex has been under financial pressure after costs related to projects for the Euro 2012 soccer tournament this year forced it to pile up some z∏.2.5 billion in debt. Though it reached a deal with creditors in July, this new contract is expected to help put the firm back on the path to health.

That a state-owned firm is the one ordering the contract has prompted speculation that the state had been looking to throw Polimex a lifeline.

Krzysztof Pado, a construc-

profitable in the 12 months following its launch

tion-sector analyst at brokerage house BDM, said that the government is determined to save Polimex. But although the agreement is an important step that could prevent Polimex from going under, the company still has to deal with its huge debt pile and several delayed projects, he said.

“Polimex is counting on another big energy contract, for the new power blocks in Opole,” Mr Pado said. “The investment has been stopped for now for ecological reasons.

If this agreement falls through, it could really complicate the company’s situation.”

The deal with Enea will see Polimex-Mostostal build a 1,075-megawatt capacity unit over the next 5 years.

The power unit is set to be the largest investment of its kind in Europe, and will be the most modern hard-coal unit in Europe as well, Enea said in a statement.

publication market is a competitive one, with the four largest players each boasting total sales well in excess of 100,000 in July of this year, according to data from ZKDP, an organization that monitors press distribution. Market leader GoÊç Niedzielny (a Catholic weekly) saw sales of 132,033 while left-

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The deal gives struggling PolimexMostostal a new breath of life

figure stood at around 10,000.

The newspaper questioned whether 12 months is a sufficient period of time to gain a foothold in Poland’s publishing market.

Bloomberg is currently looking for a new publisher to relaunch the title in the Polish market, the newspaper added.

Shares in Warsaw Stock Exchange-listed PMPG have lost more than 80 percent of their value over the last six months and Polish media sources report that the future of some of its other titles could also be under threat, given the weakened state of the advertising market.

However, Micha∏ Lisiecki, president of PMPG, maintained last week that flagship title Wprost “will absolutely remain the strategic asset of the firm.”

Poland’s current affairs

question. The correction should be made in Polish or in the language of the published press material which is subject to correction.

Bank Pekao violated the collective interests of consumers: court The Court of Competition and Consumer Protection (SOKiK) has dismissed an appeal by Bank Pekao against a decision of the president of the Office of Competition and Consumer Protection which stated that certain practices of Pekao violated the collective interests of consumers.

The charge related to two provisions used by Pekao in its contracts for savings accounts.

SOKiK has also sustained a financial penalty imposed on the bank, amounting to nearly z∏.2 million.

Pekao can appeal to a higher court. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

State launches shale gas tech financing program Around z∏.1 billion is being made available via competitions A Polish state-led program for financing R&D projects producing original technologies for exploiting shale gas is now underway, the National Centre for Research and Development (NCBiR) announced last week.

Called Blue Gas, the program was initiated by the Treasury Ministry and is being led

by NCBiR and the Industry Development Agency (ARP).

The state will provide around z∏.500 million, while another z∏.500 million is expected to be made available by enterprises interested in utilizing the results of the projects.

NCBR and ARP launched a competition for z∏.500 mil-

lion of the financing last week.

It is hoped the scheme will help domestic entities catch up with world leaders in shale gas technology.

“The development of shale gas deposits is a chance for Poland to become raw-material independent,” Treasury Minister Miko∏aj Budzanowski said in a statement.

He added that the program is designed to change the way science and business view one another, in order to encourage greater cooperation in research programs.

This first competition, the ministry said, is aimed at financing projects for the research and development of technologies that will be used to extract shale gas in Poland.

State-owned gas monopolist PGNiG has already

declared that it will apply for funds offered by the program.

“The Blue Gas Program offers z∏.500 million – that’s serious money, and we will try and get it. For now it is hard to say what projects we’ll file [for], but we’re interested in developing advanced technologies in the shale gas sector,” said a spokesperson for PGNiG. Other state-controlled companies including PGE, KGHM, Enea, Tauron and Lotos also reportedly want to compete for the Blue Gas money.

The deadline for applications is November 22, and the first contracts are expected to be signed during the first quarter of next year, said Pawe∏ Kurzyƒski, a spokesperson at Izabela Depczyk NCBiR.

OCTOBER 1-7, 2012

INVESTING IN POLAND CONFERENCE

www.wbj.pl

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Foreign investment

WBJ launches Investing in Poland 2013 publication Warsaw Business Journal officially launched its latest Investing in Poland publication last week during a conference held at the Warsaw Stock Exchange.

Investing in Poland 2013 is an English-language guide for potential investors, providing information concerning investment areas and incentives in Poland, profiling all 16 voivodships, as well as all of the country’s major cities.

“Just as it does every year, Investing in Poland comprises original research by the Warsaw Business Journal team.

We contacted every single voivodship and every single city listed, speaking with investment office representa-

tives and having them answer our questions directly,” said Andrew Kureth, editor-inchief of Warsaw Business Journal and Investing in Poland 2013.

The conference included two panel discussions, the first examining Poland’s investment attractiveness and the second looking at future investment trends.

The conference also included a “case study” portion, in which Krzysztof Michalski, president of the Military Property Agency, presented his company’s offer to investors gathered at the conference.

Investment attractiveness In the first panel, S∏awomir Majman, president of the Polish Information and Foreign Investment Agency (PAIiIZ), Micha∏ Furmanek, head specialist in the department of strategy and investor services for the city of Lublin, Roman Staszewski, president

SYLWIA OLSZEWSKA /WBJ

Panelists at a conference to mark the occasion discussed Poland’s investment attractiveness and future investment trends

WBJ’s editor-in-chief Andrew Kureth presents Investing in Poland 2013

Partner Feature

The Warsaw Stock Exchange: One of the most rapidly expanding equity markets in Europe For several years now the Warsaw Stock Exchange has been among the most dynamic stock markets in Europe, attracting regional issuers and global investors. In Central and Eastern Europe it is the undisputed leader in terms of market growth indicators, such as capitalization, trading volumes and number of IPOs. As of August 2012, WSE remains the largest national stock exchange in CEE, with domestic market capitalization of €117 billion and equity session turnover of €30.3 billion (yearto-date). The WSE also remains 4th among European exchanges with a volume of over 6,297,000 stock index futures traded.

Investors have over 850 issuers to choose from and despite turbulence on the global financial markets, the Warsaw Stock Exchange attracts new companies. It consistently ranks no. 1 in Europe by the number of IPOs and has a leading position by the value of IPOs. According to the latest quarterly PwC “IPO Watch Europe” report, in Q2 2012, there were 33 public

The main hall of the Warsaw Stock Exchange offerings on the WSE, which represented more than 41 percent of all IPOs on European markets. By the value of IPOs, the Warsaw Stock Exchange, with €50 million, ranked third in Europe after the London Stock Exchange Group and the Oslo Stock Exchange.

The WSE creates attractive conditions for both domestic and foreign companies looking for growth capital; as a result the exchange lists 48 foreign issuers from 20 countries, with the largest group originating from Ukraine and the Czech Republic. One of

the decisive factors for them is a solid and diversified investor base, including foreign investors whose share in trading volumes reaches almost 50 percent.

The Warsaw Stock Exchange owes its dynamic development to modern infrastructure typical for a developed market, reliable regulations, a high level of market participant activity and a varied product range aimed at investors with different risk appetites. The WSE operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. The exchange is also developing Catalyst, a market for issuers of corporate and municipal bonds, as well as an energy market.

A symbolic moment, and crowning achievement of nearly twenty years of dynamic expansion, was WSE’s own IPO. The aim of the Warsaw Stock Exchange as a public company is to systematically strengthen its international position through

BROUGHT TO YOU BY WARSAW STOCK EXCHANGE

expanding its product range for investors and issuers, attracting new companies and intermediaries, as well as to improve market organization, technology and legal regulations.

The priorities for the WSE are trading liquidity, security and effectiveness. From 2011 its trading session is of the same length as in Western European markets.

During the first year after adaptation of trading hours to international standards, the average number of transactions per session (on the Main Market) increased by over 14 percent.

In order to increase its competitiveness, the exchange is working with NYSE Technologies on implementing a new transaction system, the Universal Trading Platform (UTP), which will be more efficient and will feature expanded functionality, enabling further market growth. ●

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The future

SYLWIA OLSZEWSKA /WBJ

(L-R) Glenn Tyrpa of PAP Market Insider, Dariusz Brzeziƒski of the Polish Investment Fund, Przemys∏aw Andrzejak of the ¸ódê Regional Development Agency and WBJ’s Andrew Kureth

(L-R) Roman Staszewski of Hamilton Sundstrand, Yang Bingxun of the Chinese Embassy in Poland, Micha∏ Furmanek of the City of Lublin and WBJ’s Andrew Kureth

During the second panel, which looked at the future of investment in Poland, it was hard to miss the panelists’ enthusiasm for low-emissions, or so-called “green,” energy sources.

Glenn Tyrpa, chief editor at PAP Market Insider, as well as Dariusz Brzeziƒski of the Polish Investment Fund and Przemys∏aw Andrzejak, president of the ¸ódê Regional Development Agency, all said that despite recent media attention on shale gas, and the government’s determination to implement nuclear energy, there is, and will continue to be, growing demand in Poland for energy produced from renewable sources.

“The demand is there, and will continue to be there for the foreseeable future,” said Mr Tyrpa.

Much of the panel discussion revolved around innovation as well. The panelists agreed that although manufacturing and outsourcing were attractive investment sectors today, in the future Poland would have to focus on R&D, and in particular, getting universities to cooperate better with business in order to deliver innovative technologies for which there is a clear need.

Przemys∏aw Andrzejak recounted the story of a trip he took to a workshop at Stanford University, in the US, where he was shown how the American business com-

Piotr Borowski, director of the WSE’s Investor Relations and Analysis department

SYLWIA OLSZEWSKA /WBJ

S∏awomir Majman, president of PAIiIZ

Mr Majman cited a report

by UNCTAD, which found Poles were the hardest working people in Europe, and the second-hardest working in the world, behind South Koreans.

“We would have said that was unthinkable 20 years ago,” he said.

“Poland is a winner of the global economic crisis. Its perception a few years ago was not good but has now changed dramatically,” he added. “We now have a product in short supply: economic stability.”

of the board for Hamilton Sundstrand in Poland, and Yang Bingxun, third secretary in the economic and commercial counselor’s office at the Chinese Embassy in Poland, agreed that Poland continues to be an attractive location for investment.

All of the panelists said that one of Poland’s top advantages was its human capital. Not only are Poles well-educated and provide relatively low-cost labor, they also have a strong work ethic, the panelists said.

OCTOBER 1-7, 2012

SYLWIA OLSZEWSKA /WBJ

INVESTING IN POLAND CONFERENCE

Krzysztof Michalski, president of the Military Property Agency

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www.wbj.pl

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8

Guests enjoyed food provided by Magda Gessler Catering munity could come to the professors and tell them what they needed.

In Poland, by contrast, “the

academics think something up, patent it, but there’s no demand for it,” he said.

Gareth Price

WBJ would like to thank our project partners.

Publication partners:

Conference partners:

w w w. b i l a n s . e u

Media patronage:

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OPINION & ANALYSIS

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OCTOBER 1-7, 2012

Can PiS convince Poles it is a ‘normal’ party?

Remi Adekoya

L

ast week, Poland’s biggest opposition party Law and Justice (PiS) made its most visible effort yet to convince Poles that it is interested in the bread-and-butter issues they face in their everyday lives and not only in carrying out the “moral revolution” it has promised.

The party organized a debate on the economy to which it invited virtually every big-name economist in the country.

Although most of the biggest stars like former National Bank of Poland head Leszek Balcerowicz and current NBP boss Marek Belka declined the invitation, the debate was attended by some notable economists such as Stanis∏aw Gomu∏ka, chief economist of the Business Centre Club, presidential economic adviser Jerzy Osiatyƒski and Adam Glapiƒski, a Monetary Policy Council member.

The event was a PR success for PiS. Even though no earth-shattering conclusions were reached during the debate, the party, for one day at least, focused on what is worrying most Poles – namely the country’s slowing economy.

Reinvented image?

PiS was at one time dubbed the “Smolensk party” for its endless ref-

More Smolensk

erences to the circumstances surrounding the 2010 plane crash which killed Lech Kaczyƒski (the twin brother of PiS leader Jaros∏aw Kaczyƒski) and 95 others.

At one point Jaros∏aw Kaczyƒski openly suggested that his brother could have been murdered on the Kremlin’s orders and probably with the knowledge of Poland’s current government, headed by his political nemesis, Prime Minister Donald Tusk.

But Mr Kaczyƒski seems to have realized he won’t be winning many elections with that kind of rhetoric and is now trying to reinvent his party’s image. And with the Polish economy slowing down visibly, the best way to do this while also scoring political points is to suggest that things could be better if only PiS’s economic policies were implemented.

PiS wants to implement a 10-year job-creation program which it says would give rise to 1.2 million workplaces. Its program also includes unifying the PIT and CIT tax codes, granting vouchers to poorer families to spend on preschool for their children, and repealing the government’s recent pension reform, which raised the retirement age to 67 for both men and women.

The problem is this isn’t the first time the opposition party has tried to change its image, only for Mr Kaczyƒski or one of his colleagues to make an unfortunate faux pas that enables its opponents to caricature it as completely out of touch with public opinion.

And it seems that might already be happening again. After PiS’s economic debate last week, a second autopsy confirmed that legendary Solidarity figure Anna Walentynowicz, who died in the Smolensk catastrophe, had been buried in the wrong grave in 2010.

Mr Kaczynski called the revelations a “gigantic scandal” and said “those who are responsible for the catastrophe should leave politics and remain in life-long infamy.”

He demanded the resignation of Ewa Kopacz, the current speaker of parliament, who was minister of health at the time and who assured Poles that she personally witnessed Polish doctors examining all the Polish bodies.

Ms Kopacz has now said she wasn’t present beside “all the coffins.” It is right to point out the discrepancy between what Ms Kopacz said on this matter two years ago and what the

facts suggest today, but does the PiS leader himself have to get involved in such a highly emotional matter? He could easily have gotten one of his subordinates to speak on the issue while himself focusing on the economy.

‘Wake Up Poland’ Also as WBJ went to press, Mr Kaczyƒski and his party were expected to take part in a demonstration under the slogan “Wake Up Poland,” in defense of what PiS sees as discriminatory acts by the state against media such as the conservative Catholic TV station Trwam.

Trwam, which means “I survive,” is controlled by the controversial but influential Father Tadeusz Rydzyk, who, as the spiritual leader of roughly one million ultra-devout Catholics, has proved himself very useful to Mr Kaczyƒski.

The problem is that apart from his million-odd fans, few in Poland approve of Father Rydzyk’s xenophobic and sometimes openly antiSemitic rhetoric. To be associated with him assures you the fanatical support of a few and the deep mistrust of many.

Not helping matters is the comparisons that some in the media have drawn between the slogan “Wake Up

Poland” to the Nazi call to arms “Deutschland, Erwache!”

The comparison is obviously a huge stretch, but it helps feed the narrative that PiS is an extremist, nationalist, populist party. One video image of Mr Kaczyƒski marching alongside people holding up such slogans will erase any gains the party might have made this week in the eyes of public opinion.

And that would be bad for Poland.

The country needs an opposition that will present credible competition to the ruling Civic Platform (PO) and its over-confident leader Prime Minister Donald Tusk, who once said in an interview that he has “no one to lose an election to.”

Businesspeople need competition to keep them sharp. Pepsi’s existence means Coca-Cola has to constantly improve to hold on to its customers.

Poland needs a Pepsi in its politics and PiS is the only opposition party big enough to audition for that role.

But they won’t get it if Poles continue viewing them as a party whose politics is far too bitter for their taste. ● Remi Adekoya is Warsaw Business Journal’s politics editor. Read his blog, “The business of politics” on WBJ.pl

Central banks on the offensive?

Jean Pisani Ferry

It

looks like a coordinated offensive: on September 6, the European Central Bank outlined a new bond-buying program, letting markets know that there were no pre-set limits to its purchases. On September 13, the United States Federal Reserve announced that in the coming months it would purchase some $85 billion of long-term securities per month, with the aim of putting downward pressure on long-term interest rates and supporting growth.

Finally, on September 19, the Bank of Japan declared that it was adding another JPY10 trillion ($128 billion) to its government securities purchase program, and that it expected its total holdings of such paper to reach about $1 trillion by end-2013.

There is, indeed, room for such concerted action, as the outlook for all three economies has deteriorated significantly. In the euro zone, GDP will certainly decline in 2012, and forecasts for next year are mediocre at best. In the US, output continues to expand, but at a moderate 2 percent pace; and, even leaving aside the fiscal cliff looming at the end of the

year, when Congress will be forced to impose spending cuts and allow tax cuts enacted in 2001 to expire, recovery remains at risk. In Japan, the global slowdown and a stronger yen are hitting the export sector, growth is flagging, and inflation is close to zero again.

No common stance The reality, however, is that there is no common stance, let alone a common plan. In the strongest of the three economies, the Fed is willingly risking inflation by pre-announcing its intention to keep the federal funds rate at exceptionally low levels “at least through mid-2015.” In the weakest of the three, by contrast, the ECB has no intention of boosting growth through quantitative easing or interest-rate pre-commitments. On the contrary, the ECB is adamant that the only aim of its “outright monetary transactions” (OMT) program, which will buy distressed euro zone members’ government paper, conditional on agreed reforms, is to contain the currency-redenomination risk that contributes to elevated inter-

est rates in southern European economies. The goal is to restore a degree of homogeneity within the euro area in terms of the transmission of monetary policy. All of its asset purchases will be sterilized, meaning that their monetary-policy effects will be offset.

Furthermore, given the controversy that its announcement of the OMT program has incited in Germany – not least with the Bundesbank – the ECB would certainly be discouraged from pursuing any Fed-like effort to push for lower interest rates along the yield curve. To ward off an offensive by German (and other) monetary hawks, who maintain that the ECB has opened the door to debt monetization, the ECB is bound to err on the side of orthodoxy in the coming months. The more its unconventional initiatives to repair the euro are contested, the more orthodox the ECB will be in its conduct of monetary policy.

This discrepancy between the US and Europe is not good news. For the euro zone, it implies a strong exchange rate vis-à-vis the dollar (and,

by implication, the yen, as the Bank of Japan closely monitors the yen-dollar exchange rate). But countries in southern Europe, especially Spain, need the support of a weak currency to rebalance externally and return to current-account surpluses. Absent this helping hand from the exchange rate, all southern European rebalancing will need to take place internally through domestic deflation, which in turn risks jeopardizing their return to public-debt sustainability. So the way out of the European conundrum – currency depreciation – risks being blocked by the market’s perception that the ECB and the Fed are at odds over monetary policy.

‘Currency wars’ Guido Mantega, the Brazilian finance minister, was quick to dismiss the Fed’s stance, again warning of “currency wars.” This reading overlooks the fact that currencies throughout the emerging world ought to appreciate relative to those of the advanced economies, simply because the emerging countries do not face the same economic challenges. The US,

Europe, and Japan are all burdened by high levels of public and private debt, and are caught in long, painful, and hazardous deleveraging cycles that render recoveries feeble and vulnerable. By contrast, emerging economies suffer from a downturn, but their situation is fundamentally sounder, which should be reflected in the value of their currencies.

Unfortunately, the combination of aggressive easing in the US and a much more guarded attitude in Europe obfuscates the message. It suggests that the issue for the global economy is that the US is trying to find a way to inflate its problems away. That may be true, but it should not be permitted to obscure the underlying structural problem that the world economy is facing. ● Jean Pisani-Ferry is director of Bruegel, an international economics think tank, professor of economics at Université Paris-Dauphine, and a member of the French Prime Minister’s Council of Economic Analysis.

Copyright: Project Syndicate, 2012. project-syndicate.org

Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.

PUBLISHER VALKEA MEDIA SA MANAGING EDITOR

GARETH PRICE (GPRICE@WBJ.PL)

SPORTS & LIFESTYLE EDITOR

DAVID INGHAM (DINGHAM@WBJ.PL)

COLUMNISTS

ADAM NARCZEWSKI ANDREW NAWROCKI

REMI ADEKOYA (RADEKOYA@WBJ.PL) REAL ESTATE EDITOR

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MARKETING &SALES

MARKETING &SALES DIRECTOR

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FINANCE & ECONOMICS

OCTOBER 1-7, 2012

Interest rates

Monetary Policy Council set to cut rates?

Comments by central bank head Marek Belka suggest a rate cut is in the cards National Bank of Poland president Marek Belka said last week that there is an “obvious” need for interest-rate cuts.

Monetary easing should come as part of a “cycle” pattern, rather than a one-time cut, the Polish Press Agency quoted Mr Belka as saying. He did not specify whether the benchmark rate – which today stands at 4.75 percent – would be cut in early October or later.

“Belka’s dovish comments should seal expectations for an interest-rate cut in October,”

Ernest Pytlarczyk and Marcin Mazurek, economists at BRE Bank, wrote to Bloomberg in an e-mail.

Several of Poland’s macroeconomic indicators saw significant slowdowns in August, providing further evidence that the country’s economy is slowing down – and strengthening the position of monetary policy doves.

Industrial production and retail sales both grew at slower paces than they did in July.

Other data suggest that consumer prices increased less aggressively than during previous months, yet by more than the average salary. Firms and consumers are becoming

increasingly pessimistic. Retail sales grew by only 2.3 percent in August year-on-year, after inflation is factored in. “This is the second-slowest growth dynamic in over a year, which is proof of weakening consumption,” Tomasz Kaczor, chief economist at Bank Gospodarstwa Krajowego, told Parkiet. Also, unemployment rose to 12.4 percent in August, compared to 11.8 percent a year ago.

The rate-setting Monetary Policy Council may, however, choose to wait for the central bank’s inflation and economic growth projection in November before it makes a move.

AK

Time to cut?

Poland’s reference interest rate, September 2010-September 2012 5.0 4.5 4.0 3.5

Se

p.

‘1 Oc 0 t.

‘1 No 0 v.

‘10 De c.

‘1 Ja 0 n.

‘1 Fe 1 b.

‘1 Ma 1 r. ‘ 1 Ap 1 r. ‘ 1 Ma 1 y‘ 1 Ju 1 n.

‘11 Ju l. ‘ 1 Au 1 g.

‘11 Se p.

‘1 Oc 1 t.

‘11 No v.

‘1 De 1 c.

‘1 Ja 1 n.

‘12 Fe b.

‘1 Ma 2 r. ‘ 1 Ap 2 r. ‘ 12 Ma y‘ 1 Ju 2 n.

‘12 Ju l. ‘ 1 Au 2 g.

‘12 Se p.

‘12

3.0

Source: National Bank of Poland

Consumption

Retail sales continue to lose steam its October or November meeting. Mr Benecki said that ING was assigning a slightly higher likelihood to a cut in October, while Mr Reluga pointed to statements by Anna Zieliƒska-G∏´bocka, a member of the rate-setting Monetary Policy Council, that indicated an interest rate cut would be considered in OctoAK ber.

Downward trend Growth of retail sales in Poland, August 2011-August 2012 (%)

15 12 9 6 3 g. ‘ Se 11 p.

‘1 Oc 1 t. ‘ 1 No 1 v. ‘ 1 De 1 c.

‘11 Jan . ‘1 Feb 2 . ‘1 Ma 2 r. ‘ 1 Ap 2 r. ‘ 12 Ma y ‘1 Jun 2 . ‘1 Jul 2 . ‘1 Au 2 g.

‘12

Retail sales increased by 5.8 percent year-on-year in August, just slightly lower than analysts’ expectations and 1.1 percentage points lower than in July. The data marked the third month in a row in which retail sales growth declined in comparison to the previous month.

“In our view, overall the data confirm [a] rather gloomy outlook for consumer demand resulting from small wage increases and falling job security,” wrote Maciej Reluga, chief economist at Bank Zachodni WBK in an e-mailed statement.

“The weakening of consumption is caused by a slowdown of real incomes,” agreed Rafa∏ Benecki, chief economist for Poland at ING. He added

that he expects wage growth in the coming quarters to remain negative. “Consumption growth should remain weak, but we don’t expect significantly deeper growth than the 1.5% y/y reached in Q2 2012,” he said.

Economists said the data made it more likely that the National Bank of Poland would cut interest rates in the near future, probably at either

Au

Low wage increases and reduced job security are behind the weakening of consumption, say analysts

Source: Central Statistical Office

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11

12

COVER STORY

www.wbj.pl

OCTOBER 1-7, 2012

Piotr Âlusarski

Technology

The initial fascination with devices that flood us with waves of data is gradually becoming a turn-off for many It was a grassroots initiative – a Facebook user from Warsaw last year challenged users of the world’s largest social network to refrain from logging in for 24 hours. “Think about the meaning of life, get on a bus and go around town, dance at home, play volleyball – there are a billion things to do instead,” he wrote under Facebook’s “public event,” to which over 150,000 people were invited. Nearly 80,000 confirmed their participation.

Another internet user has recently set up a Facebook page called “Log off and go grab a beer” that to date has garnered more than 22,000 fans.

A similar undertaking with a long-standing tradition is the International No Cell Phone Day, held on July 15, which reached Poland in 2003. Back then it had an economic angle:

73%

of Poles have access to the internet

78%

internet fora were bursting at the seams with posts that called for a boycott of devices during that day in order to send a strong signal to telecoms companies that Poles were dissatisfied with paying higher rates per minute than those paid in Germany or France.

Today, the price gap is no longer so significant. But according to Barbara Fràtczak-Rudnicka of 4P Research Mix, a firm that tracks consumer trends, there are other important reasons to disconnect temporarily: a fast-paced technologization of our lives and – as a result – satiation with a permanantly plugged-in existence. What we want, she says, is better control of our online and offline worlds and less digital clutter brought about by modern communication technologies. Some have dubbed it “de-teching.”

Fatigued with information “De-teching is a typical counter-trend, a reaction to excess, a recovery after the original awe

41% have a profile on a social network

and relish of technological novelties,” said Ms FràtczakRudnicka. “We’re now looking for time away from them, time to rest and reset,” she added.

She pointed out that there are also other factors to consider when it comes to the origin of the trend, including a deficit of personal relationships and an imbalance between work and leisure.

Moreover, an increasing number of people are reevaluating their lifestyles and consumption levels following the global recession, leading many to adopt a “slower life,” she said.

A recent study by 4P Research Mix of Polish internet users showed that the problem of digital information overload mostly applies to 4555 year-old women who occupy managerial positions. The higher the level of education, the more frequently such overload occurs. Being constantly available to superiors, coworkers and clients, as well as having to respond on-the-fly to messages and having activity streams in social networks followed and scrutinized by other

86%

have cell phones, every seventh has a smartphone

of Poles send at least one SMS message a day, which makes Poland the joint European leader when it comes to the frequency of texting.

Poland occupies first place with Norway

OPTIONS FOR DE-TECHING • Online tools and applications to help control and select content • Product development (e.g. simpler phones) • “Out of reach” services – holidays, wedding parties • “Digital detox”

SHUTTERSTOCK

The joy of disconnection

Disconnecting is becoming increasingly difficult users, corporations or institutions, are primarily identified by respondents as “stressful” and “bothersome.” Fifty percent of them claim to “never turn off their phones” and 33 percent to “often feel enslaved to technology.” Meanwhile 46 percent dream about long holidays out of reach of any network and 33 percent complain about being flooded with data.

Equally revealing results, presented in spring this year, were obtained by analysts from marketing communications agency Euro RSCG as part of its “Modern Life Global Report” study conducted among consumers from 19 countries, including Poland.

More than half of all surveyed consumers said they were concerned with the excess of technology in everyday life, while almost two thirds of them admitted to being “tech addicts.” In addition, 8 out of

10 said they were worried by the drop in direct relations with others as a result of their use of technology.

According to numbers from two years back, collected

by Bart∏omiej Szmajdziƒski, psychotherapist and author of a Polish study on internet addiction disorder, in Poland there were over 10 million users of social networks while 3 million may have demonstrated symptoms of addiction to these networks. “As soon as the alarm clock rings, still halfasleep, I check e-mail and Facebook messages on my iPhone. When drinking my morning coffee I investigate who wrote what during the night and write back. Even on a tram, at a cafe or doing shopping I react and reply at once,” a journalist wrote recently in the Polish edition of Elle magazine.

“It completely eliminates

any reasonable dialogue with my kid or wife,” confessed the author of AntyWeb, a popular tech blog, describing his breakfast ritual of checking several hundred new Google Reader messages on his laptop.

A term for data interfering with our concentration, sleep and even affecting our immune systems – information fatigue syndrome – was coined as early as the mid 1990s by British psychologist David Lewis. The syndrome, he suggested, had emerged as a direct result of the “information burden” – the phenomenon by which the amount of data grows much faster than the human ability to process it.

Dealing with this burden, as Mr Lewis argued at that time, was one of the most urgent challenges facing businesses.

And many say it still is.

COVER STORY

OCTOBER 1-7, 2012

Going unplugged “If you live in turmoil, the collision with silence is very painful,” said Grzegorz Kosson, an entrepreneur and marketing strategist who has managed to get over his cravings for all things tech.

Yet according to psychiatrist S∏awomir Wolniak, head of a ward at the Wolmed clinic and an addiction therapy specialist, choosing to cut off completely from modern communication tools is not the best way to regain control over your life. He said that often, after a couple of days of “infodetox,” we make up for the backlog and plunge even deeper into the very digital world we planned to abandon.

Mr Wolniak believes controlled use is the key. He encourages people to learn to cooperate with plugged-in devices instead of trying to pull the plug by force. As an example, he cited opening an internet browser and determining in advance when to close it, at the same time appointing yourself tasks and duties to discipline yourself to execute the plan.

Grzegorz Kosson said he’s been following a self-imposed rule not to use his mobile and computer on weekends – he calls it a low-tech diet.

“What I do is switch off my phone, light candles and put them on a windowsill. I enjoy their glow. I listen to music. I

have no place to hurry to. I’m glad not to have any plans,” Mr Kosson wrote on his blog.

“At first it was really hard to put the phone away, stay out of Facebook and Twitter. My hands badly needed a toy, something to keep them busy.”

But, he says, putting down the phone was a necessary defense against a breakdown of family ties.

Jakub Ujejski is a personal productivity coach. At the end of last year he decided to run an experiment: could he manage to survive a month without Facebook?

“I stumbled upon the idea after realizing that more and more often I would involuntarily end up browsing the network. I reckoned it’s as harmful as compulsive e-mail checking,” recalled Mr Ujejski.

He did manage to achieve his goal and now limits his entire social networking activity to several minutes a day. “I gained some perspective on the situation. I asked myself: do I really want to spend loads of time following people whom I last saw in primary school or saw just once at a party? ‘Friends’ I have only because my wife does?”

New marketing niche “Get a little closer,” encouraged an Australian advert for Nescafé’s instant coffee as part of a 2010 campaign spotlight-

ing the difference between catching up online and faceto-face. The brand’s message was that people are better off turning on the kettle than gadgets and that a simple cup of coffee enjoyed together is well worth trading for a virtual meet-up.

Marketers have quickly learned to emphasize realworld connections. And while it might seem that de-teching poses a threat to producers and providers of communication technologies, it is they who are tapping into the trend, turning it to their own advantage. It’s the tech sector that is actually urging us to de-tech.

In Thailand, a recent ad for mobile phone company DTAC took a bold step by bluntly stating “Disconnect to connect.” The ad shows several people busy doing things on their cell phones to such an extent that important moments in their lives simply pass them by. To stay close to your loved ones, claims DTAC, means to rely on your Nokia or Samsung only to the necessary degree.

“Some brands will cater to consumers’ desire to completely disconnect, while others will focus on using technology to simplify life,” reads a report on de-teching by advertising agency JWT. In Poland however, deteching is still at an early stage, so few related activities are

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13

Silence is golden An interesting and increasingly popular option to disconnect is to spend a few days in seclusion in one of several Polish monasteries that offer board and lodging, mostly during vacation time, to all interested parties.

Potential guests may choose from congregations of Cistercians from Wàchock, Benedictines – based in Tyniec or Lubiƒ, Franciscans in Piƒczów or Paulines from Mochów, and many more.

One needs to be wary, though, because conditions are rough and ready and the disconnection is total. A cramped room with a bed, table, chair and cross on the wall. No cell phones, laptops, no internet, TV or radio. All devices must be deposited on check-in and are given back on check-out.

Some monks even demand that guests take off their watches.

It is not necessary to take part in the monastery’s everyday life, but should anyone pluck up the courage to do so, the simple rules are: get up between 4 and 6 AM, pray, eat, work, contemplate, and go to sleep at 9 or 10. However, everyone is expected to keep silent, refrain from smoking and comply strictly with meal times. practiced by Poles.

“Although various symptoms of technology fatigue are declared by nearly half of the population of Polish internet users, the marketing response to this is still sporadic,” said Barbara FràtczakRudnicka of 4P Research Mix. “Some offers of ‘unplugged’ holidays are emerging,” she added.

The first expectation is the key: the postCamaldolese Golden Forest Hermitage in Rytwiany even has a therapeutic center called SPeS, financed by EU funds. SPeS stands for “salus per silentium” or “health through silence” and offers a special treatment program for “infoholics.” It is based on the three pillars of monastic rule – silence, contemplation and solitude. The latter means a stay with a family is out of the question.

The program, representing the idea of “return to harmony” is individually established after a preliminary talk between a visitor, the visitee and a psychologist. It usually consists of psychological workshops, occupational therapy (glass painting, salt dough and stained glass making) and fitness (massages, gym, forest excursions).

“When you experience a great deal of stress, spend too much time in virtual reality, when work eats up most of your life or if your life goes by too fast – take our offer,” encourage the landlords of Golden Forest Hermitage on their website. Reaching them for comment by means of modern technology was, however, unsuccessful. ●

Still, in her view, as Poles become more selective in the types of technology they consume, telecoms, electronic media and tech service providers will have no option but to better select and target their offer themselves – and make it more engaging.

“De-teching is not a serious danger to the even mightier trend of the digital domi-

nation of our lives,” said Ms Fràtczak-Rudnicka.

“But since a reaction to the latter will constantly mark is presence, manifesting itself as an offline holiday, a threeday ‘detox’ in a spa or a day without Facebook … it will be something to the effect of a hygienic procedure that we’re going to decide upon once in a while.” ●

14

INTERVIEW

www.wbj.pl

OCTOBER 1-7, 2012

Kazakhstan

Between East and West COURTESY OF THE EMBASSY OF KAZAKHSTAN

Ewa Boniecka: Kazakhstan has developed faster than any other former post-Soviet Asian republic and has became the epitome of economic success in Eurasia. How was that achieved?

Yerik Utembayev: Twenty years ago, when we declared our independence from the USSR, we started practically from zero.

We didn’t have our own currency, no economic institutions and no banking system of our own. Yet in a relatively short time we managed to build a modern economic system and

democratic state that ensures equal rights for our people, who comprise over 100 ethnicities.

We have moved from a planned economy to a market economy. … So while our transformation process was difficult, we have accomplished a lot on the road to fulfilling our national aim of “independence, prosperity and people’s welfare.” We expect to maintain high GDP growth of 8 percent this year.

Kazakhstan is blessed with natural resources, including oil, gas and uranium. What is the nation’s strategy for benefiting from these riches?

Two percent of the world’s oil and natural gas resources are in Kazakhstan and this number poorly reflects the huge and asyet unexploited resources on the Caspian shelf. We are the third-largest non-OPEC oil exporter to the EU, following Russia and Norway.

Kazakhstan has established the National Fund, where most

of our income from gas and oil exports is accumulated. Modeled on its Norwegian counterpart, it is designed to save income from natural resources for future generations. There is now around $54 billion in the Fund. At the height of the crisis in 2009 we used part of these reserves to support the banking sector and help small and medium-sized enterprises.

I want to add that the Kazakh economic strategy is also focused on diversifying our economy.

Polish and Kazakh economic relations are still not as strong as they could be. What is your take on that?

In political terms our relations are positive. Both countries experienced a period of postcommunist transformation and our relations are not hampered by negative historical events.

Yet our economic cooperation could be stronger indeed, and now both sides want to change that. ... In 2011 the trade turnover between our countries, according to Kazakh data, was $1.7 billion. The first six months of 2012, however, saw a

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Yerik Utembayev, ambassador of the Republic of Kazakhstan to Poland, talks to WBJ about his country’s economic development and political status in the international arena

Astana, capital of Kazakhstan turnover of $1.1 billion, a significant increase of 24 percent compared to the same period of 2011.

We want to further improve on that and we see Poland as an important gateway to Europe.

Most Polish firms are only exploring our market and the opportunities provided in various sectors of our economy, 90 percent of which is privatized.

In my view they need to be more active in Kazakhstan. Polish companies can invest in our energy sector and establish joint ventures with producers in other sectors. We are now building a big petrochemical complex and I think that Polish firms can find a place for themselves there. We are entering a new stage of modernizing our economy.

Until now Poland has mainly imported oil and gas from Russia, and very little from Kazakhstan, but there are opportunities for increasing our trade here and we are exploring routes for a proper network of transportation from Kazakhstan. I also want to highlight that Poland can also attract Kazakh investors, as we have already invested $12 billion in the EU and want to invest in Poland as well.

In general, existing political and economic ties allow us to reach a higher level of bilateral cooperation and I hope we can expand our trade turnover to more than $2 billion in the near future.

Does Kazakhstan want to establish an agreement concerning strategic cooperation with the EU? For four years I served as my country’s ambassador in Brussels and I worked towards creating such a document. Last year, under the Polish presidency of the EU, we secured an EU mandate to launch negotiations on an enhanced partnership agreement.

Our location in the heart of the Eurasian landmass places Kazakhstan in a strategic position between East and West.

The European Union is our number-one trading partner and relations with the EU are also very important for us in political terms. And I believe that a Polish contribution to strengthening them could be valuable indeed.

How good are your relations with Russia?

We cooperate actively with Russia and we belong to a regional organization of postSoviet nations – the Commonwealth of Independent States (CIS). I want to stress that establishing a Customs Union with Russia and Belarus has been beneficial to Kazakhstan.

With our population of 16.4 million, our internal market is small. We have a 7,500 kmlong border with Russia, which is the longest land border in the world. After establishing the Customs Union we have access to more than 170 million customers, as we have formalized a free trade regime with unified customs tariffs.

We invite Polish firms to Kazakhstan because our country is now also a gateway to the huge Russian market and commodities manufactured by foreign investors in Kazakhstan can be exported freely to Russia and Belarus without any tariff barriers.

There are various signals that Russia wants to form and lead an integrated political alliance of states that would be similar to the EU. What do you think about that idea?

I want to stress that Kazakhstan has its own sovereign policy and we treat our cooperation with the European Union as a priority. Our government has implemented a large-scale program “Path to Europe” in order to make our standards closer to

European ones. … Kazakhstan is running a policy of openness to various directions, yet we will never agree on any dictate on us. Obtaining our independence was difficult and we will remain free to choose our own road of development.

Turning to the domestic situation in Kazakhstan, how is your economic development and GDP growth transforming the living standards of ordinary people?

In 1994, the per capita income per year in Kazakhstan was $700. Now it is more than $11,000. We have introduced a new program of social modernization and the state now provides better social services and benefits. Thanks to this our country has recently gone through a demographic boom.

Indeed, there are many more children being born to both rural and urban families.

What I would also like to emphasize is that we have harmony between almost 140 ethnicities and dozens of religious denominations in our country. … For centuries, due to its location at the crossroads of the East and West, and also because of Stalin’s wicked deportation policy, Kazakhstan became home to many ethnic communities.

What is the situation of Poles living in Kazakhstan, who were originally deported there on Stalin’s orders?

There are about 50,000 Poles now living in Kazakhstan. Quite a few of them run their own businesses, or work in the local and central administrations.

There is also one Pole elected to parliament, Anatol Makowski. The Poles organize their cultural centers in various towns and cultivate their national traditions, language, and are also proud of their roots. They live well and most of them do not want to leave Kazakhstan. ●

The Oxygen Park office project in Warsaw has secured bank financing

Master Management Group has acquired land for its planned Brama Mazur mall in E∏k

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

LEED Platinum for Skanska offices The first completed building in Skanska Property Poland’s Green Towers complex in Wroc∏aw, in Lower Silesia, has obtained a LEED Platinum certificate of energy efficiency and environmental performance. The building is the first newly built structure in Poland to have received LEED certification with the highest rating. The Green Towers complex will consist of two 10-storey buildings comprising a total of 23,300 sqm of leasable space. ●

In this issue Park Handlowy Bielany . . . . . .15 Neptun cornerstone . . . . . . . . .15 Renaissance sale . . . . . . . . . . . .15 Office supply . . . . . . . . . . . . . . . .16 Oxygen Park financing . . . . . . .16 Property-related stocks . . . . . .16 Brama Mazur mall . . . . . . . . . . .17 Feniks building . . . . . . . . . . . . . .17 Ambassador tenant . . . . . . . . .17

IKEA unveils Park Handlowy Bielany extension scheme The company plans to make the Wroc∏aw mall the largest shopping center in Poland by 2014 Real estate investor Inter IKEA Centre Group Poland has revealed the details of the planned modernization and extension of its Park Handlowy Bielany shopping center in Wroc∏aw in Lower Silesia.

The company is planning to make the facility the largest mall in Poland by 2014, with the investment set to almost double the retail space of Park Handlowy Bielany to 145,000 sqm housing approximately 200 stores.

“This investment is of huge significance for us, we have been preparing for it for a long time,” Mikael Andersson, managing director of Inter IKEA Centre Group Poland,

COURTESY OF PR TIME

West Coast Capital and Catalyst Capital are planning the extension of the Pasa˝ Âwi´tokrzyski retail project in Kielce, Âwi´tokrzyskie voivodship. A hypermarket and a retail park are expected to be added to the facility in the near future. Jones Lang LaSalle, which manages the center and is responsible for commercializing the new space, is currently in advanced talks with the representatives of stores offering home improvement goods.

Pasa˝ Âwi´tokrzyski opened for business in 2006 and houses 40 tenants.

Shopping centers

The extended mall will comprise 145,000 sqm of retail space said in a statement. He added that after its completion the project would have almost three times as many tenants as it does now.

Currently, construction on a new IKEA store is underway nearby. Once that development is finished, the existing store will

be demolished to make room for a new part of the Park Handlowy Bielany mall.

Construction on the investment is scheduled to launch in spring next year. “We expect the first buyers to be able to do their shopping in the new, extended shopping center in

Centrum Biurowe Neptun cornerstone laid Real estate developer and investor Hines held a cornerstone-laying ceremony at the construction site of its Centrum Biurowe Neptun office project in Gdaƒsk on September 19. The ceremony marked the completion of the underground floors of the scheme.

The Centrum Biurowe Neptun development is being built on Al. Grunwaldzka in the Wrzeszcz district of Gdaƒsk.

The investment will offer 15,300 sqm of office space arranged on the building’s 18 floors.

Hines is planning to obtain an occupancy permit for Centrum Biurowe Neptun in December next year. The first

COURTESY OF HINES POLSKA

Pasa˝ Âwi´tokrzyski extension

OCTOBER 1-7, 2012, LI 17/39

The building will be completed in December 2013 tenants of the building are expected to move into the property at the beginning of 2014.

“We plan to make Centrum

Biurowe Neptun the best office building in Gdaƒsk,” said Hines Polska president AZ Mieczys∏aw Godzisz.

2014,” Mr Andersson said.

The architectural design of the modernization and extension of Park Handlowy Bielany has been prepared by the London-based BPD studio. The value of the planned development is estimated at z∏.205 million.

Established in 2001, Inter IKEA Centre Group deals with the development and management of shopping centers in which IKEA is the main partner. In Poland, the company has seven facilities in six major cities across the country.

Adam Zdrodowski

Renaissance building in Warsaw bought by GLL Real Estate Partners A fund managed by GLL Real Estate Partners has acquired the Renaissance office and retail building in downtown Warsaw from Falcon Real Estate Investments, an entity owned by private Spanish investors. The value of the deal, which was brokered by CBRE, has not been revealed.

The Renaissance building, which was completed by developer Yareal Polska in 2004, offers 5,230 sqm of leasable space. The property is located at Warsaw’s Pl. Zbawiciela in the Polish capital’s central business district.

“We are delighted to have

been able to advise GLL Real Estate Partners on the purchase of such a unique and prestigious property,” Sean Doyle, associate director in the capital markets department of CBRE, said in a statement.

“There is continually strong demand for Warsaw offices from investors and Warsaw remains one of the most popular investment destinations in Europe. Warsaw is looking increasingly attractive as Poland’s economy continues to outperform other parts of Europe,” Mr Doyle added.

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

AZ

16

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

Office

Oxygen Park gets bank financing

Poland is one of the main growth zones for office space in Europe, with CBRE data indicating that over one million sqm of office space is now under construction in the country, scheduled to be completed in 2013 and 2014.

The growth is particularly visible in Warsaw. Almost 280,000 sqm of office space is set to be completed in the Polish capital this year, which makes it one of the most active cities in Europe in terms of office development, according to a recent report

by CBRE. Only Moscow, Paris and Vienna have more office space scheduled for delivery this year than Warsaw, with the Polish capital beating central London, as well as other CEE capitals Prague and Budapest, the study said.

Eleven new office buildings, comprising a combined 93,000 sqm of space, were completed in Warsaw in the first half of 2012. Almost

300,000 sqm was taken up in the city in the same period.

The CBRE report said that the level of office space leasing activity in Poland has “returned to the growth path” registered before the crisis, with last year seeing a record level of 895,000 sqm leased in the nine largest markets and almost 490,000 sqm leased in H1 2012.

“While Poland itself is resisting the weakness affecting many markets worldwide, at the same time the global economic slowdown is work-

ing in favor of the Polish office market,” Daniel Bienias, director of office agency, tenant representation, at CBRE Poland, said in a statement.

He explained that many occupiers are moving or expanding their operations in Poland in search of cost reductions. “Based on the number of new inquiries from existing tenants, as well as newcomers, we expect a strong year-end take-up result for 2012,” Mr Bienias said.

Adam Zdrodowski

Oxygen Park will deliver 18,300 sqm of space

Office opportunity Total office completions (sqm) in Poland in 2012 (forecast)

300,000 250,000 200,000 150,000 100,000 50,000 0 Warsaw Wroc∏aw Łódź

COURTESY OF YAREAL POLSKA

Poland a growth zone for office space in Europe: report Over one million sqm of office space is under construction in the country

OCTOBER 1-7, 2012

Tri-city Poznań Szczecin Kraków Katowice Lublin Source: CBRE

Real estate developer Yareal Polska has secured bank financing for its under-construction Oxygen Park office project in Warsaw from BNP Paribas. The value of the financing loan has not been revealed.

“We see Oxygen Park as an interesting project that should find recognition in the market,” Marek Kowalski, director of the real estate financing department at BNP Paribas Bank Polska, said in a statement.

He added that following

the signing of the initial credit agreement, the scheme quickly achieved the level of commercialization required for it to receive financing. “[This] confirms our conviction about the project’s attractiveness,” Mr Kowalski said.

The Oxygen Park development is located on Al. Jerozolimskie in Warsaw’s W∏ochy district. The class-A investment will comprise two sixfloor buildings delivering a total of 18,300 sqm of space.

The first phase of the

investment is scheduled to be completed in Q1 2013 and the second in the last quarter of next year. Oxygen Park is expected to feature BREEAM certification of energy efficiency and environmental performance.

Colliers International is the leasing agent of the Oxygen Park project, whose design was furnished by the JEMS Architekci studio. Construction company RD bud is the general contractor of the facility.

Adam Zdrodowski

Property-related stocks Security

Closing price on Sep 27

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

57.25

13.37

45.85

88.35

-16.42

25,530,098

1,461.60

CELTIC

8.30

-1.31

7.02

21.10

-63.44

34,231,466

284.12

DOMDEV

28.49

-0.97

23.50

42.80

9.58

24,670,397

702.86

ECHO

4.30

-0.46

3.05

4.45

21.13

420,000,000

1,806.00

ELBUDOWA

107.00

8.63

87.00

120.00

0.94

4,747,608

507.99

ENERGOPLD

0.23

15.00

0.17

2.75

-90.84

70,972,001

16.32

ERBUD

13.50

8.70

11.33

23.20

-31.99

12,677,956

171.15

GANT

3.91

16.02

3.37

9.85

-50.13

20,120,000

78.67

GTC

7.48

-0.27

5.20

12.49

-30.09

319,372,990

2,388.91

HBPOLSKA

0.03

200.00

0.01

1.43

-95.95

210,558,445

6.32

JWCONSTR

4.40

3.04

3.85

8.42

-34.33

54,073,280

237.92

LCCORP

1.17

-1.68

0.85

1.48

17.00

447,558,311

523.64

MARVIPOL

10.20

2.00

6.20

11.00

27.66

36,923,400

376.62

MIRBUD

1.06

6.00

0.98

2.68

-57.60

75,000,000

79.50

MOSTALWAR

14.40

6.27

11.30

25.88

-31.43

20,000,000

288.00

MOSTALZAB

1.27

6.72

0.81

1.80

3.25

149,130,538

189.40

ORCOGROUP

6.81

3.81

6.38

19.55

-64.90

99,992,889

680.95

PBG

6.10

38.64

3.36

92.00

-90.46

14,295,000

87.20

PLAZACNTR

2.33

3.56

1.87

2.94

22.63

297,174,515

692.42

POLAQUA

3.30

-2.94

3.30

8.29

-64.29

27,500,100

90.75

POLIMEXMS

0.88

27.54

0.48

2.04

-32.31

521,154,076

458.62

POLNORD

13.29

8.14

10.49

19.85

11.49

23,798,439

316.28

RANKPROGR

7.98

3.64

7.10

16.97

-21.69

37,145,050

296.42

ROBYG

1.31

5.65

1.04

1.75

15.93

257,935,500

337.90

RONSON

0.82

15.49

0.61

1.15

-17.17

272,360,000

223.34

TRAKCJA

0.86

17.81

0.65

1.87

-39.86

232,105,480

199.61

ULMA

39.25

1.16

37.20

74.80

-38.19

5,255,632

206.28

UNIBEP

4.46

1.36

3.60

6.61

-11.16

34,021,684

151.74

WARIMPEX

3.18

1.27

2.64

5.77

-41.11

54,000,000

171.72

ZUE

6.96

0.87

5.07

9.15

-23.93

22,000,000

153.12

OCTOBER 1-7, 2012

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

17

Shopping centers

Master Management buys Brama Mazur site

Real estate investor Master Management Group and the Municipality of E∏k in northeastern Poland have signed a final agreement concerning the sale of a piece of land sized almost 1.85 hectares, on which Master Management plans to build its Brama Mazur mall.

“I am very glad that after long talks we have managed

to finalize the purchase of an attractive plot in the very downtown of E∏k,” Paul Kusmierz, president of Master Management Group, said in a statement.

He added that the company is planning to change the premises into a multifunctional urban complex featuring the highest-quality public space. Advanced negotiations with potential tenants have been underway for some time, Mr Kusmierz said.

The acquired site is located at the intersection of E∏k’s ul. Dàbrowskiego and ul.

KoÊciuszki. Master Manage-

ment Group will revitalize a pre-war military warehouse that is located on the land and will make it an integral part of the planned Brama Mazur mall.

The shopping and entertainment center will deliver 16,250 sqm of space and will include a shopping gallery, a supermarket, a cinema and numerous cafes and restaurants. An underground parking lot will provide spaces for 600 cars.

Master Management Group is currently awaiting administrative permits for the Brama Mazur develop-

COURTESY OF QUESTIA

The company plans to launch construction on the mall by the end of this year

Brama Mazur will deliver 16,250 sqm of space ment. The investor hopes to be able to launch construction on the investment by the end of this year.

Established in 2006,

Master Management Group now manages more than 340,000 sqm of retail space in 16 cities across Poland. The company was also the devel-

oper of the Galeria Niwa shopping center in OÊwi´cim which opened for business in 2009.

Adam Zdrodowski

Major tenant at Ambassador Office Building in Warsaw

Construction on the Feniks office building in Warsaw is nearing completion, with workers now finishing the facade and laying interior installations. The investor behind the project, Europlan, expects to obtain an occupancy permit for the scheme by the end of this year.

Located at the intersection of ul. ˚elazna and ul. Sienna in the capital’s Wola district, the seven-storey development will comprise approximately 10,000 sqm of office space and almost 1,000 sqm of retail and service areas.

“A typical floor of the building has 1,500 sqm and can be arranged for tenants who require the space to be divided into particular rooms,

Insurance broker Gras Savoye Polska has taken up 3,200 sqm of office space in the underconstruction Ambassador Office Building project in Warsaw. Commercial real estate agent Axi Immo facilitated the lease transaction.

The new headquarters of Gras Savoye Polska will occupy three floors in the Ambassador Office Building scheme and will include all of the company’s departments, as well as a 24-hour call center.

The Ambassador Office Building investment is being developed by Kronos Real Estate. The development is located on ul. Domaniewska in Warsaw’s Mokotów district, close to the capital’s Galeria Mokotów mall.

Feniks as well as for those who prefer an open-space working environment,” Monika Rogucka, leasing director at Europlan, said in a statement.

She added that Feniks is the only office building that will be completed in War-

saw’s central business district this year. The investment was designed by Archico Project and its general contractor is Modzelewski & Rodek, a subsidiary of the Austrian PORR. Adam Zdrodowski

The project will comprise two sections, standing at seven and 11 storeys tall, that will offer a combined 15,600 sqm of

usable space. The Ambassador Office Building scheme is scheduled to be completed at the end of this year. Adam Zdrodowski

Ambassador

COURTESY OF AXI IMMO GROUP

COURTESY OF EUROPLAN

Work on Warsaw’s Feniks nears completion

THE LIST

OCTOBER 1-7, 2012

www.wbj.pl

19

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WND 202.0 190.0 184.0

WND 4,900 4,550 5,000

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Security audits; bodyguard; reception; security management

✓ ✓ ✓

✓ ✓ ✓

Schenker Logistics; Grupa Lotos; Avon; PG; Electrolux; XL Insurance (member Citibank; HSBC; of XL Capital) Ernst & Young; Polbank EFG; General Motors; BAT; MAN; Euro-Net

WND WND 1996

Krzysztof Toczyƒski; Dariusz Bàk; Miros∏aw Purzeczko; Marek Kamiƒski

Grupa EKOTRADE ul. Melomanów 4, 00-712 Warsaw 5 22 548-9052/22 548-9050 biuro@ekotrade.com.pl www.ekotrade.com.pl

149.2 144.3 142.0 123.4

154.3 150.7 144.6 126.6

7,360 6,375 5,200 4,100

WND WND WND WND

WND WND WND WND

WND WND WND WND

Fire monitoring; mass events protection; reception services

✓ ✓ ✓

✓ ✓ ✓

XL Insurance Company Limited

Getin Noble Bank; Euro Bank; Bank Polskiej Spó∏dzielczoÊci; Multikino; Nestle Polska

6,850 WND 1991

Jacek Jerschina

City Security SA ul. Wybrze˝e Gdyƒskie 2, 01-531 Warsaw 6 22 628-6070/22 635-5116 biuro@citysecurity.pl www.citysecurity.pl

47.0 79.5 67.0 57.5

50.0 84.0 68.0 59.0

4,450 4,250 3,500 3,100

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Anti-terrorist trainings; debt collection

✓ ✓ ✓

✓ ✓ ✓

Concordia

MAN; Accor; Z∏ote Tarasy; Lotnisko Wojskowe NATO in Malbork; Praktiker

4,500 1,500 2001

Beniamin Krasicki

Grupa HUNTERS Sp. z o.o. ul. Bukowska 111, 62-065 Grodzisk Wielkopolski 7 61 442-1600/61 442-1613 biuro@hunters.pl www.hunters.pl

17.1 32.8 32.9 26.7

22.4 44.8 43.8 37.8

1,031 1,155 1,514 1,301

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Inkaso; events protection; GPS car monitoring; DNA marking system

✓ ✓ ✓

✓ ✓ ✓

Allianz; PZU; Hestia; Benefia

Imperial Tobacco Polska; Auchan Polska; Piotr i Pawe∏; Douglas Polska; Nivea Polska

WND WND 1990

Piotr ˚y∏kowski

Agencja Ochrony Osób i Mienia Guard-Service Sp. z o.o. ul. Tatrzaƒska 6A, 60-413 Poznaƒ 8 61 847-7196/61 847-7196 guardservice@guardservice.pl www.guardservice.pl

15.0 19.0 19.0 16.5

16.0 20.0 20.0 17.0

520 500 500 480

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

-

✓ ✓ ✓

✓ ✓ ✓

PZU

Volkswagen Polska; Raben Polska; LEK; PKP; Kuehne+Nagel

520 520 2000

Konrad Sz∏apka

Gustaw Securitas System Sp. z o.o. ul. ¸yskowskiego 18, 71-641 Szczecin 9 91 812-1478 /91 434-7527 biuro@gustaw-securitas.pl www.gustaw-securitas.pl

8.2 17.4 16.4 14.5

8.3 17.5 17.2 14.5

630 567 580 568

✓ ✓ ✓ -

✓ ✓ ✓ ✓

✓ ✓ ✓

-

✓ ✓ ✓

✓ ✓ ✓

TUiR Partner

Muzeum Narodowe; Prokuratura Okr´gowa; Wojewódzki Sàd Administracyjny; Netto; Enea Operator; ING Bank Âlàski; Carlsberg Polska; Jednostki Wojskowe

630 83 1988

Gustaw Wiliƒski

Rank

Property security / Bodyguards / Alarm system installation / Detective services

Services

Company name Address Tel./Fax E-mail Web page

Revenue from security Total revenue services (z∏. mln) (z∏. mln)

Avarage employment per year

1st half of 2011 / 2010 / 2009 / 2008

Notes: WND = Would Not Disclose. Research for The List was conducted in November 2011. Number of employees is as of October 2011. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Securitas Group: Securitas Polska Sp. z o.o.; Securitas Alert Services Sp. z o.o.; Purzeczko - Grupa Securitas Sp. z o.o.; Nordserwis Securitas Sp. z o.o.

Private houses / Offices / Industrial buildings

Shopping malls / Banks / Public buildings

Cooperation with insurance companies

Selected clients

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) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA. The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.

President

President

President

Presidents

President

President

President

President

President

CORRECTION: In the warehouse space listing in the September 24 issue of WBJ, the contact details for Prologis Park Wroc∏aw and Prologis Park Wroc∏aw III were incorrect. The contact person for both facilities is Aleksandra Cools, reachable at acools@prologis.com or (+48) 602-552-378. WBJ regrets the error.

20

MARKETS

www.wbj.pl

OCTOBER 1-7, 2012

Stocks report

world stock indices DJIA

NASDAQ

13,485.97 (Sep28 close)

S&P500

3,136.60 (Sep 28 close)

-0.82% (for the week)

FTSE100

1,447.15 (Sep28 close)

-1.24% (for the week)

DAX

5,779.40 (Sep 28 close)

-0.90% (for the week)

-1.28% (for the week)

Bulls held back

NIKKEI225 7,290.02 (Sep 28 close)

8,949.87 (Sep 28 close)

-1.35% (for the week)

-1.51% (for the week)

CHANGE: 8.78%

CHANGE: 18.42%

CHANGE: 13.32%

CHANGE: 1.39%

CHANGE: 19.99%

CHANGE: 4.55%

(year to Sep 28)

(year to Sep 28)

(year to Sep 28)

(year to Sep 28)

(year to Sep 28)

(year to Sep 28)

52-week high: 13,653.20

52-week high: 3,196.93

52-week high: 1,474.51

52-week high: 5,989.10

52-week high: 7,478.53

52-week high: 10,255.20

52-week low: 10,404.50

52-week low: 2,298.89

52-week low: 1,074.77

52-week low: 4,868.60

52-week low: 5,125.52

52-week low: 8,135.79

Last week started with worsened investor sentiment and the continuation of a downward correction caused by, among other things, reports of an allegedly higher budget deficit in Greece than had previously been announced.

On Monday, the WIG and the WIG20 lost 0.4 percent and 0.54 percent respectively.

After three days of losses, Tuesday saw an attempt to return to growth on the Warsaw Stock Exchange, with the WIG20 having finished the day up 0.62 percent. However, the turnover remained relatively low, amounting to slightly more than z∏.720 million. TVN was the best performer among the bourse’s blue-chip companies.

Wednesday again witnessed a return of the corrective mood and losses on the major European stock exchanges. In Warsaw, too, the supply side got the upper hand and the two main indices, the WIG20 and the

Major indices WIG

43,763.30 (September 28 close)

WIG20

2,375.96 (September 28 close)

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

2,200

11.09

2,260

41,000

10.09

41,800

07.09

2,320

06.09

42,600

05.09

2,380

04.09

2,440

43,400

03.09

2,500

44,200

31.08

45,000

10.09

52-week low: 2,035.80

07.09

Change year to September 28: 8.29%

06.09

52-week low: 36,653.28

05.09

52-week high: 2,417.32

Change year to September 28: 14.21%

04.09

Change for the week: -0.48%

03.09

52-week high: 44,173.50

31.08

Change for the week: 0.06%

Top 5 HBPOLSKA WESTAISIC PBG PTI IQP

Closing 0.03 1.09 6.10 14.50 1.26

% change (week) 52-week high 200.00 1.47 43.42 8.11 38.64 94.65 31.46 14.95 28.57 1.28

52-week low 0.01 0.42 3.25 8.30 1.03

Top 5 PBG POLIMEXMS GETIN PKNORLEN CYFRPOLSAT

Closing 6.10 0.88 1.94 45.50 14.78

% change (week) 38.64 27.54 8.38 4.96 3.79

52-week high 94.65 2.09 9.03 46.28 15.85

52-week low 3.25 0.46 1.43 31.44 12.25

Bottom 5 IFCAPITAL ALTERCO WISTIL REINHOLD RESBUD

Closing 0.32 0.86 9.05 0.32 6.42

% change (week) -47.54 -44.52 -27.02 -25.58 -22.18

52-week low 0.32 0.77 5.33 0.28 2.88

Bottom 5 TAURONPE CEZ PKOBP PEKAO LOTOS

Closing 4.86 120.30 35.95 158.90 30.97

% change (week) -4.52 -2.98 -2.42 -1.91 -1.84

52-week high 5.77 141.50 38.50 165.00 32.00

52-week low 4.10 111.90 30.10 128.10 21.30

52-week high 14.97 47.98 33.02 2.44 70.00

sWIG80

Spain budget boosts z∏oty

9,820.71 (September 28 close)

NewConnect

34.72 (September 28 close)

WIG-Banki

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

52-week low: 8,218.71

17.09

12.09

11.09

10.09

52-week high: 10,536.29

07.09

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

9,300

14.09

2,200

13.09

9,420

12.09

2,240

11.09

9,540

10.09

2,280

07.09

9,660

06.09

2,320

05.09

9,780

04.09

2,360

03.09

9,900

31.08

2,400

06.09

Change year to September 28: 14.14%

05.09

52-week low: 2,076.52

04.09

Change year to September 28: 7.11%

03.09

Change for the week: 1.54%

31.08

52-week high: 2,561.94

14.09

2,345.87 (September 28 close)

13.09

mWIG40

6,302.51 (September 28 close)

SOURCE: WSE

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

5,900

14.09

33.0

13.09

6,020

12.09

33.6

11.09

6,140

10.09

34.2

07.09

6,260

06.09

34.8

05.09

6,380

04.09

35.4

03.09

6,500

31.08

36.0

10.09

52-week low: 5,163.30

07.09

Change year to September 28: 13.70%

06.09

52-week low: 33.94

05.09

52-week high: 6,495.06

Change year to September 28: -16.32%

04.09

Change for the week: -1.51%

03.09

52-week high: 43.65

31.08

Change for the week: -0.32%

Adam Zdrodowski

Currency report

Other indices Change for the week: 1.43%

WIG, fell by 1.04 percent and 0.68 percent respectively.

Construction companies did best, while telecom and banking companies were some of the worst performers.

On Thursday, worse-thanexpected macroeconomic data came from the US, where GDP for the second quarter was revealed to have grown by just 1.3 percent, instead of an anticipated 1.7 percent. Nevertheless, this had only a limited negative effect as the WIG finished the day up 0.79 percent.

In the end, bulls were unable to stop the downward correction and the negative sentiment was further strengthened by poor macroeconomic data published in countries including Japan, Germany and France. The last session of the third quarter of the year – on Friday, September 28 – ended with the WIG20 losing 0.19 percent.

Improved global sentiment last week helped the z∏oty regain some of the ground it lost earlier in September.

Spain’s budget projections, including the assumption that the country will generate around €40 billion in savings, were well received by investors, leading to a drop in risk aversion.

Earlier in the week however, the Polish currency weakened following central bank chief Marek Belka’s remark that there was an “obvious” need for interestrate cuts. The z∏oty eased 0.3 percent to 4.1468 per euro, according to Bloomberg data.

Mr Belka made the comments following the release of disappointing macro data, including a slowdown in retail sales growth and a rise in unemployment. The data themselves had little effect on the z∏oty.

Expectations are building that the rate-setting Monetary Policy Council will this week cut the headline interest rate 25 basis points to 4.5 percent. Analysts from X-Trade Brokers said in a comment that any other decision, such as a bigger cut, would lead to increased volatility in the domestic currency market.

On Thursday, news about Spain’s budget caused the z∏oty to break the support of 4.12 to the euro and sneak briefly below 4.10. On Friday, the EUR/PLN came in at 4.1138 while the USD/PLN was at 3.1780.

The CHF/PLN rate stood at a stubbornly high 3.4008.

Looking ahead, analysts say the EUR/PLN could target 4.05 if the issue of financial aid for Spain is resolved.

However, some say the market is oversold and that a rebound is therefore possible.

Gareth Price

currency rates 4.1497 27.09

4.0950

4.1471 26.09

28.09

4.1349 25.09

SOURCE: NBP

4.1250 24.09

4.0

21.09

4.0533

0.1028 28.09

0.1033

0.1032

PLN-100JPY

4.5

27.09

26.09

0.1033 25.09

24.09

0.1025 21.09

3.4342

3.4008 28.09

0.10

0.1028

PLN-RUB

0.11

27.09

3.4251 26.09

3.4301 25.09

24.09

3.4126 21.09

5.2198

5.1571 28.09

3.0

3.4356

PLN-CHF

3.5

27.09

5.2094 26.09

5.2167 25.09

24.09

5.1678 21.09

3.2236

3.1780 28.09

5.0

5.2128

PLN-GBP

5.5

27.09

3.2187 26.09

3.2136 25.09

24.09

3.1712 21.09

4.1518

4.1138 28.09

3.0

3.2180

PLN-USD

3.5

27.09

4.1415 26.09

4.1475 25.09

24.09

4.1340 21.09

4.0

4.1528

PLN-EUR

4.5

SPORTS

OCTOBER 1-7, 2012

Soccer

www.wbj.pl

Tennis

Grzegorz Lato resigns Urszula Radwaƒska beats Ana Ivanovic as head of PZPN

Grzegorz Lato

The former Poland captain failed to gain the support needed for re-election Grzegorz Lato has resigned from his post as head of the Polish Football Association (PZPN). The announcement came last Tuesday, just seven hours before the midnight deadline for prospective candidates for the PZPN presidential elections to acquire enough signatures to enter the race.

“I have today taken the decision to withdraw my candidacy for the post of president of the PZPN,” Mr Lato said in a written statement.

“Everyone wants change,

so they should be pleased with my decision. I believe that I must do this for the good of the PZPN and Polish soccer,” he added.

Mr Lato, who during an outstanding playing career became Poland’s all-time leading goal scorer, is believed to have made the surprise decision to quit after it became clear he would be unable to muster the 15 signatures from other PZPN executives needed to enter the October 26 elections.

The former Stal Mielec player had come under heavy criticism during his four years at the helm of Poland’s soccer association, following allegations of corruption and

Poland’s poor performance on the pitch at Euro 2012.

But assessing his own record as PZPN president Mr Lato said, “Association management is not easy, so I wish the new president success. During my term, I attempted to bring in a string of reforms and changes. I am convinced they will bear fruit in the future.”

“I have left the PZPN in great financial shape, and I hope that my hard work for soccer won’t go to waste,” he added.

Former Juventus midfielder Zbigniew Boniek is now the favorite to become new PZPN president.

David Ingham

Soccer

Fatal stabbing at cinema Fans of city rivals Wis∏a Kraków and Cracovia clashed last week A 32-year-old man was fatally stabbed last week following a fight between hooligans from rival clubs Wis∏a Kraków and Cracovia.

The incident occurred when two fans accidentally met outside a cinema in the Nowa Huta district of Kraków on September 23. Following an altercation it was agreed that a fight would take place after the end of the film that one of the supporters was planning to watch.

At approximately 11 pm, supporters from the two Kraków clubs met outside the cinema and Wis∏a Kraków fan Dariusz D. was stabbed in the back and died at the scene. An unnamed 40-year-old Wis∏a supporter was also taken to the hospital with abdominal injuries.

In total 17 people have been arrested, including Robert M., one of the leaders of the Cracovia hooligan group. Mr M. was recently cleared of the murder of a 17year-old Wis∏a fan, who was killed after a street fight in 2004. Polish law restricts pub-

lishing the full names of those accused of a crime.

Incidents of hooliganism both inside and outside stadiums have continued to plague the Polish game in recent years.

In 2011, Legia Warszawa and Lech Poznaƒ fans clashed on the pitch following Legia’s 5-4 victory on penalties in the Polish Cup Final. Then in June 2012, Polish and Russian fans fought running battles on Warsaw’s Poniatowski Bridge before the two teams met at the National Stadium during Euro 2012.

David Ingham

Polish tennis player Urszula Radwaƒska shocked former world number one Ana Ivanovic last week, with a twosets-to-one victory at the Toray Pan Pacific Open in Tokyo.

Ms Radwaƒska, who is the younger sister of 2012 Wimbledon finalist Agnieszka Radwaƒska, beat the number 11 seed 3-6, 6-4, 6-2, to claim the biggest win of her career so far.

This second-round victory set up a clash with 5th seed Angelique Kerber, but her German opponent proved too strong, easily overcoming the 21-year-old Pole 6-1, 6-1, in 47 minutes.

The defeat means that Ms Radwaƒska is yet to claim her maiden WTA title, although she does have four ITF titles to her name In the same tournament her older sister, who last year won the Toray Open title, made it to the final again, beating Ms Kerber 6-1, 6-1 in the semifinals.

David Ingham

COURTESY OF WIKIMEDIA COMMONS

COURTESY OF PZPN

The 21-year-old is hoping to emulate the success of her older sister Agnieszka

Urszula Radwaƒska

21

22

LIFESTYLE

www.wbj.pl

Concert

OCTOBER 1-7, 2012

Festival

Classical reworking Beat culture American pianist and singersongwriter Tori Amos returns to Warsaw once again this year to promote her 13th album, “Golden Touch,” set to be released this month.

This newest album is being released to mark the 20th

anniversary of her debut album “Little Earthquakes” and contains reworkings of earlier hits recorded together with the Metropole Orchestra.

It is her second classical release on the Deutsche Grammophon label following on from last year’s “Night of Hunters.”

Speaking about the songs on her new release Ms Amos said, “My attitude to these works has changed over the

years, and they also changed my life. It was not just simply reaching for old and wellknown hits, but rather a visualization of myself and my fans that after ten or twenty years the same text can talk about something completely different than when it was first created.”

David Ingham

For more information log on to kongresowa.pl

COURTESY OF FACEBOOK/THEBLOODYBEETROOTS

Tori Amos October 13 Sala Kongresowa Plac Defilad 1 Warsaw

Tori Amos

The Bloody Beetroots

COURTESY OF WIKIMEDIA COMMONS

Free Form Festival 2012 October 12-13 Soho Factory ul. Miƒska 25 Warsaw Now in its 8th year, Warsaw’s Free Form Festival is recognized as one of the most unique and characteristic music events in Poland.

Hosted in the the capital’s artistic Praga district, the aim of the festival has always been

to promote new trends in music with an emphasis on all things electronic. As a result, those planning to attend can expect some pounding beats and energetic DJ performances at this two-day party.

This year will see British dance pioneers Leftfield, who were previously described by Mixmag as “the single most influential production team working in British dance music,” among the main acts.

Other performers include Italian electro-house project the Bloody Beetroots, producer and remixer Ewan Pearson (who has worked with Depeche Mode, The Chemical Brothers and Gwen Stefani,) and Serbian-born DJ Nina Kraviz.

Tickets for the event are priced from z∏.110.

David Ingham

For more information log on to freeformfestival.pl

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www.wbj.pl

23

Tech Eye

The Brew Cave When Techeye was still a young pitchfork-wielding villager, we got two brilliant pieces of advice from Stumpy, the proprietor of “Poor Richard’s Frothy Discharge,” our local pub. The first was practical.

“Never pass out in a pig trough, boy,” he warned, “or the little porkers’ll eat yer digits.”

Stumpy, who had inherited the pub from his father (the eponymous Richard), was not a man of the world. Legend has it he was conceived in the pub and it’s a fact that he died there; judging from his aggressive musk, he rarely stepped outside much in the intervening

years. But Stumpy was missing all the fingers of his left hand, so we assume he had, well, first-hand experience of the matter.

The second bit of advice was more inspirational.

“Build a better hangover cure, and the world’ll spew a path to yer door,” Stumpy told us, and you could see the wisdom in his redveined, squinty eyes.

Techeye has long ruminated on this sage advice. And, as the years have passed, we’ve decided that the best hangover cure is, as they say, more of what ales you. So, with the second half of Oktoberfest kicking off this week, we’re investigating the latest in technology to keep your beer cool (and thus your hangovers to a minimum).

One such device is the Brew Cave (Brewcave.com), a giant walk-in cooler (or “kegerator,” if you prefer) from US Coolers. The Brew Cave is designed to keep your beer at just above freezing and has four shelves lining the side and rear walls, allowing it to hold 30 cases and four kegs.

There’s also a draft beer tap in the front wall for fast service. You’ll

have to wrestle kegs in and out of the unit, but that’s good for your health so don’t complain. In fact, the activity is officially known as “kegel exercises,” and doctors recommend it.

Be aware that this is a sizable unit: it’s about as wide as three ample-butted Texans standing cheek to cheek, as tall as a gigantic basketball player and as deep as a well-dug grave (6’10” x 7’6” x 4’10”). The default color is black, but over 20 manly shades are available upon request, including teal, almond and shasta white.

There are only two downsides as far as Techeye is concerned. First is the price: approximately $8,220.

That’s a lot of dosh for a beer fridge.

And second is the fact that the manufacturer doesn’t ship internationally. Still, the cost of hiring a small boat and a team of strong-backed donkeys to transport a Brew Cave can’t be too great.

Shipping is not a major concern with the other device we’re looking at this week, the Marshall Fridge (Marshallfridge.com). Inside it’s a normal refrigerator with 4.4 cubic feet of capacity; outside, it looks like a Marshall amplifier.

There’s not much else to say

about the Marshall Fridge, except that its maker, XMC Branded Products Inc, should start shipping the product this month at a price of $299-399 (groupie not included). Oh, also the fridge’s control knobs go to 11, which is very cool. Literally – 11 is the coldest setting.

In an ideal world Techeye would

buy a Marshal Fridge as a fitting final resting place for old Stumpy’s ashes.

But, alas, it seems that some hapless patron accidentally used his urn as a martini shaker and drank Stumpy’s ashes. The poor fellow then ended up in the hospital with a terrible case of frothy discharge.

Fitting, that. ●

The Marshall Fridge

Ever accidentally quaffed an old friend’s mortal remains? Let us know: techeye.wbj@gmail.com

Museums, galleries and venues in Warsaw Centre for Contemporary Art at Ujazdowski Castle ul. Jazdów 2 www.csw.art.pl Czarna Gallery ul. Marsza∏kowska 4 www.czarnagaleria.art.pl

Katarzyna Napiórkowska Art Gallery ul. Âwi´tokrzyska 32, ul. Krakowskie PrzedmieÊcie 42/44 and Old Town Square 19/21 www.napiorkowska.pl

Galeria 022, DAP, Lufcik Królikarnia National ul. Mazowiecka 11a Gallery www.owzpap.pl ul. Pu∏awska 113a www.krolikarnia.mnw.art. pl Galeria 65 ul. Bema 65 www.galeria65.com Le Guern Gallery ul. Widok 8, www.leguern.pl Galeria Appendix 2 ul. Bia∏ostocka 9 Museum of www.appendix2.com Independence Aleja SolidarnoÊci 62 Galeria Asymetria www.muzeumniepodleglo ul. Nowogrodzka 18a www.asymetria.eu sci.art.pl 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 Galeria XX1 Al. Jana Paw∏a II 36 www.galeriaxx1.pl Galeria Zoya ul. Kopernika 32 m.8 www.zoya.art.pl Green Gallery ul. Krzywe Ko∏o 2/4 www.greengallery.pl

Simonis Gallery ul. Burakowska 9 www.simonisgallery.com State Archaeological Museum in Warsaw ul. D∏uga 52 www.pma.pl State Ethnographic Museum ul. Kredytowa 1 www.ethnomuseum.we bsite.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

National Museum in Warsaw Al. Jerozolimskie 3 www.mnw.art.pl

Warsaw Philharmonic ul. Jasna 5 www.filharmonia.pl

Polish National Opera at Teatr Wielki Pl. Teatralny 1 www.teatrwielki.pl

Warsaw Rising Museum ul. Grzybowska 79 www.1944.pl

Pracownia Galeria Wilanów Palace ul. Emilii Plater 14 Museum and Wilanów www.pracowniagaleria.pl Poster Museum ul. St Kostki Potockiego Rempex Art and 10/16 Auction House www.milanow-palac.pl ul. Karowa 31 www.postermuseum.pl www.rempex.com.pl Royal Castle Pl. Zamkowy 4 www.zamekkrolewski.com.pl

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

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

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Life lessons and beer fridges