WBJ #40 2012

EXPO REAL SPECIAL EDITION • Warsaw PPP project • Home sales slipping

• KSP’s investment plans • Polish investment market

• GreenWings construction • ECE’s new shopping center

WWW.WBJ.PL

12 pages of real estate news & analysis, including:

VOLUME 18, NUMBER 40 • OCTOBER 8-14, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

Since 1994 . Poland’s only business weekly in English

COURTESY OF LAZARSKI UNIVERSITY

Prime Poland Poland’s commercial real estate sectors all show the country out ahead of 12-23 the regional pack

Interview: Juliusz Madej Don’t fault Polish universities for graduates’ unpreparedness, argues the president of Lazarski University 24-25

SECTOR ANALYSES: Retail . . . . . . . . . . . . . . .14 Office . . . . . . . . . . . . . . .17 Logistics . . . . . . . . . . .22

Plus • Yelp enters Poland • Kubica’s comeback • Alior looking at IPO • Growing art market • Gadu-Gadu going quiet?

News . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3 Business . . . . . . . . . . . . . . . . . . . . . . . . . .4-5 Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Finance & Economics . . . . . . . . . . . . . . . .8 Art in Focus . . . . . . . . . . . . . . . . . . . . . . . .10 Opinion & Analysis . . . . . . . . . . . . . . . . .11 Lokale Immobilia . . . . . . . . . . . . . . .12-23 Interview . . . . . . . . . . . . . . . . . . . . . . .24-25 The List . . . . . . . . . . . . . . . . . . . . . . . .26-27 Markets . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Sports . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Lifestyle . . . . . . . . . . . . . . . . . . . . . . . . . . .30 Last Word . . . . . . . . . . . . . . . . . . . . . . . . .31

COURTESY OF JONES LANG LASALLE

In this issue

Pretender to the throne Monetary mystery Law and Justice have revealed their candidate to replace PM Donald Tusk 3

Poland’s Monetary Policy Council shocked the market with its decision to keep rates on hold

8, 28

NEWS

www.wbj.pl

Poland gets LNG loan

The latest TNS Polska voter survey has Poland's biggest opposition party Law and Justice (PiS) with 39% support, putting it 6 percentage points ahead of the ruling Civic Platform (PO). Third was the Democratic Left Alliance with 9% support, followed by Palikot's Movement and PO's junior coalition partner, the Polish People's Party – both at 5%

Nuclear partner talks French energy giant EDF has reiterated its interest in partnering up with Polish state-controlled utility PGE in the Polish nuclear power program, said Dominique Lagarde, director of EDF’s nuclear engineering division, Parkiet reported. PGE recently invited all potential partners for talks on the current assumptions for the project. ●

Turkey-Syria border tension

z∏.11.5 billion

they are investigating the source of the mortar fire, and have offered their condolences to the family of the deceased, according to the state-run Syrian Arab News Agency. Terrorist groups have been suggested as a source of the mortar fire. Some observers say it may have been an accident.

In line with NATO’s statement, Poland’s Ministry of Foreign Affairs condemned the strike, saying that Poland expresses its full solidarity with Turkey.

“We would like to emphasize strongly that the violation of another state’s territorial integrity is inadmissible,” said ministry spokesperson Marcin Bosacki.

Poland, itself a NATO member, called on Syrian authorities to adhere to international law and to take appropriate measures to restore security along the Syrian-Turkish border, in line with the NATO statement.

The Syrian regime is trying to quell an uprising against the government of President Bashar al-Assad, with bloody consequences.

Poland’s Ministry of Foreign Affairs has helped organize a total of three evacuations from Syria in recent months, with the latest involving three Polish citizens. Gareth Price

is the value of PGE’s flagship energy investment in Opole. The company decided to continue the project despite the protests of activists who took the case to court.

122,000 is the number of Poles living in Ireland, the Irish central statistics office reports, making them the largest minority group in the country.

z∏.10.45 billion is how much the state budget would make per year if all long-term unemployed were able to find jobs.

12.5-12.6% was the unemployment rate in September, according to Deputy Labor Minister Jacek M´cina.

Quote of the Week “I have the impression this is a matrix.”

Ma∏gorzata Kidawa-B∏oƒska, deputy leader of Civic Platform’s parliamentary club, commenting on the decision of opposition Law and Justice to announce their candidate for PM three years away from parliamentary elections.

Figures in focus Service economies Percentage of labor force employed in the market services industry in 2011, selected EU27 countries 50 40 30

On WBJ.pl

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The Turkish parliament has given the country’s government the approval to go to war. As it seeks to retaliate for the killing of its citizens in a mortar attack launched from Syria, tensions are escalating in the already volatile region. Log on to WBJ.pl to read an analysis by Stratfor on how the conflict might develop and whether war is the likeliest outcome.

Fra

Turkey strikes back at Syria COURTESY OF WIKIMEDIA COMMONS

Some z∏.15 billion will be spent on road construction projects in Poland next year, Rzeczpospolita reported, citing General Directorate for National Roads and Highways data. That’s almost half of what contractors were promised in 2012 for public projects, although the real amount that will go to their pockets will most likely be z∏.4 billion less.

Numbers in the News

escalate into a broader conflict; we hope that the situation de-escalates,” Pentagon press secretary George Little said during a news conference.

The shelling “constitutes a cause of greatest concern for, and is strongly condemned by, all allies,” NATO ambassadors said in a statement drawn up during an emergency meeting held at the behest of Turkey, a NATO President Bashar al-Assad of Syria member.

“The alliance continues Tensions have escalated to stand by Turkey and between Syria and Turkey fol- demands the immediate cessalowing a mortar strike tion of such aggressive acts launched from Syria that killed against an ally, and urges the five Turkish civilians in a resi- Syrian regime to put an end to dential district of the south- flagrant violations of internaeastern Turkish town of tional law,” the statement Akcakale. Turkey’s armed added.

The meeting was held forces responded by firing on military targets inside Syria, under Article 4 of the NATO while also deploying troops charter which deals with situations where one member state near the border.

The original incident, feels its territorial integrity, which claimed the lives of a political independence or woman and four children, has security is under threat.

NATO defense ministers raised the specter of a wider conflagration that could force are due to meet in Brussels the US to deploy troops in the this week, where they are already volatile region. Fur- expected to discuss the Syria ther mortar rounds were later question. Being an Article 4 fired from Syria into Turkey, matter, it remains on the alliance’s agenda. with no casualties reported.

Syrian authorities have said “We hope that this doesn’t

Poll: PiS ahead of PO

Road projects at z∏.15 bln in 2013

IN THE SPOTLIGHT

COURTESY OF WIKIMEDIA COMMONS

Polish state-controlled gas grid operator GazSystem has received the final round of financing it needs to start building Poland’s first liquefied natural gas terminal, securing a €75 million loan from the European Bank for Reconstruction and Development. The terminal is expected to start importing gas from Qatar in 2014. “What this project really represents is a choice for Poland to receive one third of its gas from a country other than Russia for the first time,” EBRD managing director for energy and natural resources Ricardo Puliti told Reuters.

OCTOBER 8-14, 2012

Ro ma nia Po la Cz ech nd Re pu blic

2

Source: Eurostat

Company index Abbey House ....................10 Gaz-System ........................2 PKO ..................................28

DATELINE

October 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: Web:

10-11 INTERNATIONAL FORUM ON PUBLIC-PRIVATE PARTNERSHIPS

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

16

YOUNG ART AUCTION

Event:

This auction of a diverse set of works includes both well-known young artists and debutantes, who have graduated from fine art academies in recent years. Ninety-eight

Event:

Location:

Abercrombie & Fitch ........14 Ghelamco Poland ............16 Poczta Polska ..................13 Acer ..................................31 Goodman ....................16, 22 Polenergia ..........................7 Acteeum Central Europe..13 GreenWings Offices ..........13 Alior Bank ..........................4 GTC....................................14 Polimex-Mostostal ............7 American Eagle

Location: Web:

selected works by young painters will be auctioned. The starting price of each is z∏.500. ul. Marsza∏kowska 34-50, Warsaw desa.pl

24-28 FASHIONPHILOSOPHY Event:

Web:

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

25

OFFICE BUILDINGS IN POLAND

Location:

Event:

Location: Web:

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

Handlowy ..........................28 Polish Energy Partners ......7

Outfitters ..........................14 HSBC ..................................8 Polski Holding Biedecki ..............................6 Immofinanz Group............12 NieruchomoÊci ................13 BPH FIZ ............................22 ING Securities ....................4 BRE Bank..........................21 JEMS Architekci................13 Rafako ................................7 Budimex ..............................2 Jones Lang

REM II................................23

Carlo Tassara Group ..........4 LaSalle ..................14, 17, 22 Robyg ................................12 Case Tech..........................22 Karmar..............................21 Ronson Development ......21 CBRE ........12, 13, 14, 17, 22 Kernel ..............................28 CBRE Global Investors ....13 KGHM ................................28 Samsung ..........................31 CFE Polska ......................13 KR Group ..........................19 SSW ..................................13 Colliers International 18, 22 Kulczyk Silverstein Cushman & Wakefield13, 22 Properties ........................19 DCT Gdaƒsk ......................16 Meble Emilia ....................19

TVN....................................28 VGP....................................14

DLA Piper..........................20 Multi ..................................14 Victoria’s Secret................14 Dom Maklerski Citi

NAI Estate Fellows ..........13 Volvo ....................................4

Handlowy ............................4 Naspers ..............................5 Warsaw Stock Exchange ..21 EBRD ..................................2 OKRE Development ..........13 Warszawski Holding EC Harris ..........................20 ORTIS ................................12 P.A. Nova ..........................14 NieruchomoÊci ................13 ECE Projektmanagement Polska ..............................12 PBG ....................................7 Weng Fine Art ..................10 EDF ....................................2 Peakside Polonia Equity Holding ....................5 Management ....................12 Ernst & Young Corporate

Peter Nielsen & Partners ..6

Westdeutsche ImmobilienBank ..............12

Finance ............................20 PGE ................................2, 7 X-Trade Brokers ..........8, 28 Gadu-Gadu..........................5 PGNiG ................................7 Yelp ....................................5

NEWS

OCTOBER 8-14, 2012

The economy

www.wbj.pl

3

Politics

PiS announces candidate for PM Finance minister sees are in three significant rebound in 2014 Elections years, but that isn’t Poland’s business climate and a rethink of the country’s role in Europe.

Meanwhile, SLD leader Leszek Miller, who hosted the debate, was categorical on where his party stands regarding the economy. “No to democracy in accordance with the market, yes to the market in accordance with democracy,” said the SLD leader during the debate.

Mr Miller said it was important to find a “new compromise between the rationality of the markets and the rationality of societies which are finding it increasingly difficult to accept the constant belt-tightening.”

Remi Adekoya

COURTESY OF THE EUROPEAN PARLIAMENT

Finance Minister Jacek Rostowski has said there is “every reason to believe” that the years 2014-2015 will be better for Europe and should usher in a “significant rebound” for the Polish economy. The finance minister made the comments at an economic debate organized by the opposition Democratic Left Alliance (SLD) party.

“We will have a tough 2012 and a tough 2013, with a significant slowdown, we are aware of this,” said Mr Rostowski before making his more optimistic forecast for the subsequent years.

However, economists say a lot depends on how the word “significant” is defined in this context, and how the global economic crisis plays out.

Witold Or∏owski, chief economic advisor at PwC, who was also at the debate, said it is “unlikely that Polish GDP growth will return to 5-7 percent if Western Europe does not solve its problems.”

Mr Or∏owski, who also serves on the economic council which advises Prime Minister Donald Tusk, said the way Poland is handling economic problems during the crisis is a “miracle.”

He also said that Poland, paradoxically, had done more catching up with the West in the recent years of crisis than during any other period in its post-communist history. “We have been developing slowly while they have regressed,” he said.

Mr Or∏owski sees four major issues that need urgent reform in Poland: public services like education and healthcare, public administration and the justice system,

Mr Rostowski expects 2012 and 2013 to be “tough”

stopping Poland’s largest opposition party from trying to oust Donald Tusk Opposition party Law and Justice (PiS) has announced Piotr Gliƒski, a sociology professor previously unknown to most political observers, as its candidate for prime minister of a technocratic government the party says Poland now needs.

“We have a situation which demands change … [The situation] demands creating a nonparliamentary government,” said PiS leader Jaros∏aw Kaczyƒski while introducing Mr Gliƒski to the public.

PiS has said it will initiate a no-confidence vote against Prime Minister Donald Tusk and his government. The next parliamentary elections are scheduled in 2015.

Meanwhile, Mr Gliƒski pointed to five issues his government would tackle immediately. Top of the list would be replacing the “ineffective” government of Donald Tusk with a technocratic government, then immediately implementing decisions to counter the economic and social crisis, improv-

EAST NEWS

But Jacek Rostowski expects the next two years to be tough for the Polish economy

PiS’s candidate for Prime Minister, Piotr Gliƒski ing public administration, presenting a vision and strategy for Poland’s development and changing the “style” of politics in government.

“We must not only deal with the crisis. We must change Poland,” said Mr Gliƒski.

But in order to get rid of Mr Tusk, PiS would need the support of all the other opposition parties in parliament, as well as the votes of four MPS in the current ruling coalition.

A ‘joke’ However, Janusz Palikot, leader of the third-largest party in parliament, has dismissed the idea off-hand, calling Mr Gliƒski’s candidacy a “joke.” The ruling party, Civic Platform (PO) reacted in similar fashion.

“Professor Gliƒski now believes he can be prime minister despite a stable coalition that has a parliamentary majority. I have the impression this is a matrix,” said Ma∏gorzata Kidawa-B∏oƒska, deputy leader of PO’s parliamentary club.

The Gliƒski candidacy is widely perceived as part of what PiS has dubbed its “autumn offensive.”

This week, the party was scheduled to hold a debate on the condition of the health care sector in Poland. Two weeks ago it organized a debate on the challenges facing Poland’s economy. The latest TNS Polska voter poll had PiS with 39 percent support and PO at 33 percent.

RA

4

BUSINESS

www.wbj.pl

OCTOBER 8-14, 2012

Banks

Bus manufacturing

Alior Bank mulls IPO as sale talks stall

Volvo to move bus production from Sweden to Wroc∏aw

ital to fund further growth and the main shareholders may want the IPO,” said Andrzej Powier˝a, an equity analyst at brokerage house Dom Maklerski Citi Handlowy.

Another factor that could potentially push the bank towards an IPO is the strong opposition of Poland’s financial market regulator, the

Izabela Depczyk

COURTESY OF ALIOR BANK

Alior Bank is no closer to finding a buyer, though bids were due on September 7, local media reported last week, and the lender is now considering listing on the stock exchange.

Business daily Parkiet reported that Alior’s owner, Italy’s Carlo Tassara Group, expects some z∏.4 billion (about €1 billion) for the bank.

However, none of the potential buyers, mostly private equity funds, were willing to offer that much, the newspaper said.

When WBJ contacted Alior to ask about the reports, the firm’s spokesperson, Dariusz Kozdra, said, “The bank is taking all possible development scenarios in the future into consideration, but no decisions have been made as of yet.”

Analysts said the offers for the bank are lower than Carlo Tassara expects because of unfavorable market conditions.

“Alior could be considering an IPO because they need cap-

Financial Supervision Authority, to private equity funds becoming major stakeholders in banks.

“The problem with private equity funds is that they have a limited knowledge about the banking business so they don’t provide the know-how which is invaluable for strategy,” said Piotr Palenik, banking sector analyst at ING Securities.

Unfavorable market conditions have led to disappointing offers for Alior Bank

Automotive company Volvo plans to close its bus manufacturing facility in Säffle, Sweden and concentrate production at its main plant in Wroc∏aw, western Poland.

Volvo says its decision to increase bus production in Poland comes as a result of low demand and strong competition in Europe. Production in Säffle will cease at the end of June 2013, provided that negotiations with unions are completed in time.

The move will affect 330 permanent employees and some 60 consultants.

“The demand for new buses in Europe has dropped steadily over the past few years, paralleled by considerable pressure on prices, particularly in the Nordic markets,” Hakan Karlsson, president of Volvo Bus Corporation, said in a statement.

“By concentrating the production of complete buses in one single plant, we can reduce our costs and thus reverse our

COURTESY OF VOLVO

Potential buyers are offering less than the asking price, leading Alior to consider an IPO, local media report

The automotive giant plans to shutter its plant in Säffle due to low demand in Europe

The Wroc∏aw plant has four times the production capacity of Volvo’s facility in Sweden negative profitability trend,” he added.

Volvo Buses predicts that volume growth in Europe will remain low in the coming years and that price pressure will continue, the company wrote.

By focusing all production on the much larger plant in Poland, it expects to achieve the economies of scale “that are essential in order to tackle the increasingly tough competition on the market.” The plant in Poland has four times the capacity of the one in Säffle.

Local media report that the plant in Wroc∏aw, which has until this point operated at half capacity, will now see an increase in production volumes, although headcount is not expected to increase from the current level of 1,550. The company could not be reached for comment.

Volvo Group’s operating profit in the fourth quarter of 2012 is expected to take a hit of about 100 million kronor if production is relocated according to schedule.

Gareth Price

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BUSINESS

OCTOBER 8-14, 2012

www.wbj.pl

5

Web-based business

Instant messaging

Yelp enters Polish market

Gadu-Gadu carries out large-scale layoffs: daily

The company wants to gain a strong foothold before it starts thinking about monetizing its online directory service Yelp, an online city guide that helps connect consumers with local businesses, began operating in Poland last week.

Founded in the US in 2004, Yelp is an online directory of local businesses such as restaurants, shops, bars, and other service outlets that gives members the opportunity to rate and review the places they visit. Yelp has 78 million online visitors every month.

From last week, Poles have been able to register at Yelp.pl, as well as download it as an app for iPhones and for Android-operated cell phones.

Yelp’s new markets vice president Miriam Warren said that entering Poland was a natural choice, considering that Poland has relatively high economic growth, and has avoided falling into recession despite the ongoing global economic slowdown.

“The industriousness of the Polish people, their openness to new technologies as well as

The Polish instant messaging service has incurred substantial losses in the past few years

the fact that there isn’t another site like this [in Poland], were our reasons for entering the Polish market,” she added.

Development first Although in the US, the UK, Canada and Ireland, businesses are able to advertise on Yelp, this will not be possible in Poland right away, since the company’s priority is not to monetize but to develop the service.

“Our real focus here in Poland for the near future is to create the best local guide – and it is tough to give a date for now when we will start to

sell. It is not going to be any time soon,” Ms Warren said.

Analysts are skeptical about the possibility of the service meeting with success in Poland.

“The problem with foreign online services is that they wrongly assume that if a service worked in their country, all they need to do is translate it and it will be a success elsewhere,” said Sylwester Kozak, an IT market analyst at portal e-biznes.pl. “Take for example the complete failure of eBay in Poland,” he added.

Moreover, Yelp will not have an office in Poland, meaning its knowledge of the

local market is likely to be limited, Mr Kozak said.

He explained that if such a firm doesn’t have a base in the country in which it is present, then it is less likely to be successful because it will be less able to understand what appeals to local internet users.

He added that what determines the success of such a portal is its marketing, and so far Yelp hasn’t been advertised at all.

Poland is the 18th country that Yelp is entering and the first CEE country in which the service has been made availIzabela Depczyk able.

The owner of Polish instant messaging service GaduGadu has laid off a large number of employees, according to daily Puls Biznesu.

The company underwent a deep restructuring last week, and from a team of 300 only 60 employees are left, the newspaper wrote without citing its sources.

“We have made a lot of changes as a result of the economic slowdown and the worsening situation on the advertising market, and [with changes] come layoffs,” said Jaros∏aw Rybus, Gadu-Gadu’s spokesperson. He did not confirm the actual number of employees who were made redundant.

The company has been

experiencing financial trouble ever since 2009, when it reported losses of z∏.6 million.

Gadu-Gadu, which now is officially called GG, was launched in 2000. Its creator was ¸ukasz Foltyn, and the project was financed by Equity Holding. Equity Holding made the company public, and then sold it to Naspers. To this day GG is the leader in the Polish instant messaging market, through which hundreds of thousands of instant messages are sent daily.

ID

6

LAW

www.wbj.pl

OCTOBER 8-14, 2012

Legal Forum

Black clouds over limited joint-stock partnerships which, if it comes into force, will turn taxation rules applicable to LJSP upside down.

Profits taxed twice Rafa∏ Koz∏owski Trainee for attorney at law Everybody would like to pay less taxes. However, investors that have decided to conduct business or specific projects in Poland through a limited joint-stock partnership (“LJSP”) to optimize their taxes now have a tough nut to crack.

Currently, just as every other partnership type in Poland, LJSPs do not pay a corporate income tax (“CIT”), like capital companies do.

Their profits are taxed only when they are distributed to partners or shareholders. However, this may soon change, as the Ministry of Finance has proposed legislation

According to the Ministry of Finance’s draft legislation, dated August 24, 2012, LJSPs will be equated with the capital companies in the way they are taxed. As a result, LJSPs’ profits will, in effect, be taxed twice.

Firstly, the LJSP itself will pay CIT from retained earnings.

Secondly, each partner or shareholder of the LJSP will pay tax individually upon any payment of a dividend made from the LJSP’s profit (already taxed by CIT). The amendment is very likely to come into force as of January 1, 2013.

Under the proposed new rules, LJSPs will have to pay advance CIT payments towards their profits. This may affect the liquidity of LJSPs and reduce their ability to make invest-

ments. Currently, advance payments are neither applicable to LJSPs, nor to their partners or shareholders.

The new taxation rules will apply to all LJSPs, including those whose financial year does not correspond to the calendar year. As a result, they would be forced to close their accounting books on December 31, 2012 and start a new financial year from January 1, 2013.

Other benefits This all begs the question: Will LJSPs stand the test of time or will they vanish from the market? Just as a reminder, LJSPs were introduced to the Polish legal system in January 1, 2001. More than 2,000 LJSPs have been incorporated to date, and this number has been increasing at a rate of about 40 percent per year starting from 2010. However, regardless of the tax issues, there are more reasons for the popularity of this form of partnership.

First of all, LJSPs, as a form of partnership, have many elements in common with capital companies.

This allows the partners/shareholders to combine advantages of both forms.

The general partners of an LJSP are jointly and severally liable without limitation for the debts and obligations of the partnership; they represent the partnership and manage its affairs, just as partners in registered partnerships.

However, shareholders are not liable for any obligations of the partnership and their liability is limited only to money they brought to the partnership in return for shares. Furthermore, LJSPs facilitate fund-raising from a large number of investors, including small and anonymous ones, since they may issue shares in exactly the same manner as a joint-stock company. They may also go public by offering shares to the stock market.

Next step At least a few options are possible for businesspeople. They can maintain their LJSP, which will be less attractive than other forms of partnership from the taxation point of view, but still combines advantages of a partnership and a capital company. They can transform its business into a capital company to make full use of its tools and pay tax according to the same rules as will most likely applicable for LJSPs from January 1, 2013.

Or, if they really want to pay less taxes, they can transform the LJSP’s business into a limited partnership to avoid payment of CIT. After all, a limited partnership’s flexibility enables it to form a tailored-fit structure with profit sharing and limitation of liability, somewhat resembling an LJSP, without any prejudice to taxation rules currently applicable to all partnerships. ●

Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market.

The content is created in consultation with Warsaw Business Journal's editorial staff.

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

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00-656 Warszawa, ul Âniadeckich 10, tel: (48 22) 621 72 16-18, mail: biuro@sadren.com.pl, www.sadren.com.pl

On October 2, the government adopted a draft of a new act on managing packaging and packaging waste. With some exceptions, the provisions of the act cover all packaging introduced to the Polish market (regardless of the type of material) as well as the waste created by such packaging. The act will not be applicable to products in packaging imported to Poland and in the same year exported out of the country. At the same time, companies that produce packaging weighing up to 1,000 kg per year will be released from the obligation of recovering and recycling a certain level of waste.

Moreover, financial penalties will be introduced, from z∏.5 up to z∏.500,000, for violating provisions of the act. The government assumes that thanks to the new regulations, the number of entrepreneurs fulfilling their duties with regard to recycling and recovery will increase.

If a national holiday falls on a day off, additional time off is due On October 2, 2012 the Constitutional Tribunal recognized the application of the National Commission of NSZZ Soli-

darnoÊç (a trade union) and decided that art. 130 § 21 of the act of June 26, 1974 (the Labor Code), was inconsistent with art. 32 item 1 of the constitution (case file no. K 27/11).

Starting from January 1, 2011 the above-mentioned provision of the Labor Code was used by the government as the basis of a law which denied employees a compensatory day of leave for any national holiday which fell on a day that was already free from work. The Tribunal claims that the legislator re-established Epiphany as an additional day statutorily free from work. At the same time, however, it denied employees a day off in observance of a national holiday, if that national holiday fell on a day that was already free from work, depending on the work schedule of a given employee.

The Constitutional Tribunal found that this violated the rule of equal treatment, because some employees have days off work between Monday and Friday. Previously, all employees in Poland were entitled to take a day off in observance of a national holiday, if the holiday fell on a day free from work.

The decision is final and it will be announced in the Journal of Laws. ●

BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE

ENERGY

OCTOBER 8-14, 2012

Power-plant construction

Renewed PGE project is lifeline to firms Energy group PGE has announced that despite environmental activists’ protests, it will carry on with an z∏.11.5 billion investment in the southern Polish city of Opole. The investment, for the construction of coal-fired power units, could help save troubled Polish builders Polimex-Mostostal and PBG, who have incurred huge losses as a result of their involvement in infrastructure projects for this year’s Euro 2012 soccer tournament.

The announcement came after Poland’s Supreme Administrative Court (NSA) overturned a previous order to halt the construction of the two 900MW units for PGE’s Elektrownia Opole power plant and sent the case back for retrial.

A consortium led by PBG subsidiary Rafako won the tender for the construction of the coal power units, only to

SHUTTERSTOCK

Poland’s largest utility will move forward with a project that will give two troubled firms a lift

Environmentalists vehemently oppose the construction of the coal-fired units have activists appeal against the investment’s environmental permits. Rafako is a boiler manufacturer and a key part of the PBG group, which was the main contractor for Poland’s National Stadium and is now facing bankruptcy.

The firm had a z∏.1.6 billion net loss in the first half of 2012.

The fact that PGE has now said it will move forward with the construction is welcome news for the firms involved in the project, not only for Rafako and PBG but also for

Polimex-Mostostal, which suffered a z∏.389 million net loss in Q2 of this year and was also rumored to be facing bankruptcy.

ClientEarth Poland, the foundation that has been blocking the investment, has already announced it will continue to oppose PGE’s project in Opole. The next round in the battle will take place in the voivodship administrative court, which has said it will take on the case no sooner than January. Remi Adekoya

www.wbj.pl

7

Kulczyk acquires wind energy firm for over z∏.400 million Polenergia, a firm controlled by Jan Kulczyk, Poland’s richest man, has purchased a 58 percent stake in wind energy holding company Polish Energy Partners (PEP) in a deal worth z∏.406 million.

Polenergia had earlier hoped to buy 80 percent of PEP – for over z∏.700 million – in order to allow it to delist the company, Reuters reported.

But Mr Kulczyk’s firm failed to persuade the required number of PEP shareholders to relinquish their stakes.

“Buying a 58 percent stake gives us control and assures the possibility of realizing our strategy,” the Polish Press Agency quoted Polenergia CEO Dariusz Mioduski as saying. He added that the company is not planning to launch a bid for the remaining PEP shares.

PEP is at the head of a capital group which produces electrical energy in wind farms. It operates wind farms with an 80 megawatt (MW) capacity and plans to increase that to 100 MW next year.

After the announcement of the deal, Polenergia released a statement saying that it had “achieved [its] goal” with the purchase. “We will have a decisive voice in the activity and the development of the company,” the statement read.

Before the transaction went through, Polenergia Holding had to apply for the approval of Poland’s consumer watchdog, the Office of Competition and Consumer Protection, which it has now received.

RA

Economy Ministry to force PGNiG to sell 30 percent of gas on new exchange Poland’s Economy Ministry will order gas monopoly PGNiG to offer 30 percent of its sales on the country’s planned gas exchange in an effort to speed up the liberalization of the gas market, Reuters reported last week.

The legislation that would usher in the changes is expected to be accepted by the Polish government by October 17. The European Commis-

sion has threatened to fine Poland up to €270,000 next year if it does not liberalize gas prices, which are capped by the Energy Regulatory Office.

PGNiG, which is a statecontrolled firm, sells nearly all of the gas available in Poland.

Seventy percent of the gas goes to industry and the rest to individual customers.

Poland plans to establish

the gas exchange before the end of the year and to address the EC’s complaints by weakening the dominant position of PGNiG in the market, where demand totals more than 14 billion cubic meters.

After the legislation is accepted by the government it will go on to parliament for approval, where it is expected to pass without difficulty.

RA

8

FINANCE & ECONOMICS

www.wbj.pl

OCTOBER 8-14, 2012

Interest rates

Industrial output

NBP surprises, holds main interest rate steady

Manufacturing output continues to fall sharply

Analysts now expect a rate cut in November

Polish factories are pulling back as new orders slump

Andrew Kureth

Still on hold Poland's reference interest rate, October 2010 to October 2012 (%) 5.0

Source: National Bank of Poland

4.5

4.0

3.5

No

Oc

t. '

10 v. ' 10 De c.

'10 Jan . '1 1 Feb . '1 1 Ma r. ' 11 Ap r. ' 11 Ma y '1 1 Jun . '1 1 Jul . '1 1 Au g.

'11 Se p.

'11 Oc t. ' 11 No v. ' 11 De c.

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

'12 Se p.

'12 Oc t. ' 12

3.0

Poland’s manufacturing PMI dropped to 47 points in September, its worst reading since the height of the crisis in Poland – July 2009 – as the country’s economy continues to show signs of a sharp slowdown.

The fall to crisis-period lows is “a negative surprise even compared to already negative expectations,” said Agata Urbaƒska, an economist for Central & Eastern Europe at HSBC, in an e-mailed statement.

The PMI measures the performance of the manufacturing sector, and anything below a score of 50 indicates contraction. HSBC and Markit, the companies that compile the survey, found that output, new orders and backlogs all declined at faster rates than in August, while employment in the sector fell for the first time since March.

The report that the companies issued along with the release of the figures made for some ugly reading. “Inflows of new orders deteriorated more

Producing worry Poland’s manufacturing PMI, September 2011-September 2012

55

*

50

45 p.

'1 Oc 1 t. ' 1 No 1 v. ' 1 De 1 c.

'1 Jan 1 . '1 Feb 2 . '1 Ma 2 r. ' 1 Ap 2 r. ' 1 Ma 2 y '1 Jun 2 . '1 2 Jul . '1 Au 2 g.

'1 Se 2 p.

'12

world,” referring to the Monetary Policy Council.

“There is now hard evidence [of a slowdown in Poland],” he wrote, “but the council continues to wait.”

It a statement released with the announcement, the NBP indicated that it left rates on hold because inflation remains at 3.8 percent, well above its target of 2.5 percent.

The statement had a mostly dovish tone, however, and analysts now expect the RPP to cut rates by 25 basic points at its November meeting.

Se

In a decision that surprised the market, the National Bank of Poland’s interest-rate setting Monetary Policy Council (RPP) decided to leave its main interest rate unchanged at 4.75 percent last Wednesday.

In recent weeks there has been a parade of macroeconomic figures showing that Poland’s economy is in slowdown mode. Just last Monday, Poland’s manufacturing PMI reading dropped to 47, its lowest since the height of the crisis

in Poland, in July 2009.

Taking the slowdown into account, most analysts had expected the RPP to lower rates by 25 basis points.

After it was announced rates would be left on hold, the z∏oty gained against major currencies.

The decision was a bigger surprise than the one the RPP made in May, when it decided to raise rates by 25 basis points, Przemys∏aw Kwiecieƒ, chief economist at X-Trade Brokers said in an e-mailed statement in reaction to the decision. He titled his report “The council from another

*Anything above 50 indicates expansion, below 50 indicates contraction

Source: Markit, HSBC

sharply in September. The volume of new work has declined every month since February, and the rate of contraction in the latest period was the steepest since June 2009. New export business declined for the sixth successive month, with the pace unchanged for the second period running,” it read.

Output has fallen every month since May. In September, new orders dropped sharply, the report found, prompting manufacturers to work through their backlogs

rather than produce more.

“This reading follows below-expectation industrial production growth in August and feeds expectations for this growth rate turning negative in September as forecast by the economy ministry,” said Ms Urbaƒska. “[T]he leading indicators domestically and abroad, among them PMI, still give no indication of the economic slowdown bottoming out in the near future,” she added.

Andrew Kureth

www.wbj.pl

ART IN FOCUS

OCTOBER 8-14, 2012

Art market

Poland’s art market set for renaissance

SHUTTERSTOCK

10

Though still an abstract concept for many Poles, investing in art is growing in popularity Investing in art is still a relatively new concept in postcommunist Poland, but experts who gathered at last month’s International Art Industry Forum in Vienna agreed that it is quickly becoming a popular form of investing money and diversifying portfolios among the country’s affluent.

Poland’s art investment market is nevertheless still in its “early stages,” said Jakub Kokoszka, president of the board at auction house Abbey House, and a guest speaker at the Vienna forum.

Its fledgling nature is due to Poland’s tumultuous history and stymied economic development – factors which mean there has been little money spent on educating people about the value of art. Consequently, a strong tradition of collecting artwork has not developed in Poland.

“There is no deeply rooted collecting habit in Poland as there is in Austria, for exam-

Increase of 90%

ple,” said Sergey Skaterschikov, CEO of Skate’s Art Market Research.

In addition, the customer base for artwork is small, and “their pockets are not so deep,” said Andras Szanto, curator of the International Art Industry Forum in New York.

Moreover, with some notable exceptions, Polish art is not well known among wealthy international investors.

“International investors, those who can afford the more expensive pieces, tend to look first to artists they know, to those who have the backing of established galleries and art institutions,” he added.

Growth in store Nevertheless, the Polish art market has been growing quickly of late. Turnover on Poland’s art auction market increased 90 percent, from z∏.15.8 million in the first half of 2011, to z∏.30.1 million in H1 2012, according to a report

by Abbey House.

Mr Szanto said that there is more growth in store, while other experts said that Poland’s art market is one of the fastest growing in Central and Eastern Europe.

“The Polish market has more momentum than the Hungarian or the Czech art markets for example,” said Christian W. Roehl, supervisory board member of German art dealer Weng Fine Art. Poland’s relatively strong economy is helping underpin this growth.

“Poland is one of the most interesting economies in Europe these days. I happen to manage money out of Luxembourg and [when it comes to stocks] … Poland is our second priority market after Germany in terms of value and growth that we see there,” said Mr Skaterschikov.

He added that Poland’s art market shouldn’t in fact be put in a basket with its CEE peers, but should instead be compared with those in Western Europe.

“Art is the most popular alternative asset group, as investing in art is motivated by the need to secure capital from the crisis,” said Maciej Gajewski, an art market analyst at Abbey House.

“The crisis has given impetus to the global art market, and Poland is beginning to reflect this trend,” he added.

Izabela Depczyk

Turnover on Poland’s art auction market (z∏. mln)

Source: Abbey House

OPINION & ANALYSIS

OCTOBER 8-14, 2012

www.wbj.pl

11

Can a hyperactive PiS Should Europe be fracking? overthrow the ruling party? T N

obody can accuse Poland’s largest opposition party of sitting back lately.

Two weeks ago, it organized a much-publicized debate to discuss Poland’s economic problems. Then it spent the next few days energetically lambasting Prime Minister Donald Tusk for “mishandling” the aftermath of the 2010 Smolensk airplane catastrophe, in which President Lech Kaczyƒski and 95 others died.

On September 29, it organized a protest march involving anything from 50,000 to 100,000 people, along with the controversial but influential Father Tadeusz Rydzyk and the legendary Solidarity trade union.

Last Monday, PiS unveiled its surprise candidate for prime minister, Piotr Gliƒski, a sociology professor who is not a member of the party. This came despite the fact that elections are three years away.

Party leader Jaros∏aw Kaczyƒski now says his party will soon initiate a no-confidence vote against Mr Tusk and announce its shadow cabinet.

“Pop singers need to have a cohesive image; so do politicians” Meanwhile, this week, PiS was scheduled to host another debate, this time on the condition of the health care system, a topic which no doubt concerns millions of Poles.

Is all this having any effect? A TNS Polska poll taken at the beginning of October showed PiS with 39 percent support while the ruling Civic Platform (PO) was backed by 33 percent of the Polish electorate.

PO backers in the media are now blasting it for “sleeping”while PiS runs riot.

It will of course take a few more polls to confirm if PiS can indeed overtake PO in the longer run.

PiS, the trendsetter?

But other opposition parties clearly envy the media attention PiS has been receiving. In fact, the Democratic Left Alliance (SLD) shamelessly copied its idea, organizing its own economic debate last week.

PiS, supposedly the old-fashioned party out of place in today’s politics, is now playing the role of trendsetter?

As for Mr Gliƒski, he must know he won’t become PM. And so does PiS. But his candida-

cy could benefit the party politically.

Mr Kaczyƒski knows that although he has guru-like status among his supporters (roughly a third of the electorate), the rest of the country doesn’t think much of him, evidenced by popularity polls.

He thus seems to be saying to Poles: “Don’t worry, even if my party wins, you won’t have me as prime minister.”

This could, in theory, help PiS during the next parliamentary elections by weakening turnout for PO, which wins elections largely on the anti-Kaczyƒski vote, not because it is itself overly popular.

Also, PiS is often derided as the party of the uneducated and frustrated. Presenting a calm professor as its candidate for prime minister could impress some among the conservativeminded intelligentsia.

Where’s the consistency?

Still, there are many “buts” to this plan.

First of all, PiS still makes it too easy for its political opponents to caricature it, due to radical moves such as taking part in controversial marches like that on September 29.

Even conservative-minded intellectuals must cringe at the sight of Mr Kaczyƒski marching alongside Father Rydzyk, who has made several public xenophobic and anti-Semitic statements in the past.

Pop singers need to have a cohesive image; so do politicians. You can’t be “street” one day and play posh the next without confusing people about who you really are.

Secondly, observing Mr Kaczyƒski leaves you in no doubt as to his ambitions to play the alpha male role. Before the 2005 parliamentary elections he promised that if his brother Lech was elected president, he would not become PM even if PiS won the vote.

Both Lech Kaczyƒski and PiS did win. And although Mr Kaczyƒski initially installed Kazimierz Marcinkiewicz, who was little-known at the time, as PM, he removed him a year later and took over. Why should Poles believe this time will be any different?

That said, PiS does seem to have sharpened its game recently. That is good, since it should keep the current government on its toes. But “believability” is Mr Kaczyƒski’s biggest problem. Most Poles just don’t believe anything he does or says. Until Jaros∏aw Kaczyƒski finds a way to change that, he will remain as far from the prime minister’s seat as his candidate, Mr Gliƒski. ● Remi Adekoya is Warsaw Business Journal’s politics editor.

Read his blog, “The business of politics” on WBJ.pl

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.

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he global energy community is abuzz with excitement about hydraulic fracturing, or “fracking,” a newish technology that has opened formerly inaccessible reserves of gas trapped in underground shale formations. The boom in this so-called shale gas production has allowed the United States to become almost self-sufficient in natural gas.

Europe, by contrast, is clearly lagging. Exploration is proceeding only hesitantly and shale gas production has not even started.

Critics of Europe’s apparent lack of enthusiasm for fracking miss two key points. First, Europe’s geology is different from that of America. There is a huge difference between potential deposits hidden somewhere in large shale formations and recoverable reserves that can actually be produced economically.

In fact, estimates by the International Energy Agency suggest that the most significant recoverable reserves of shale gas are in the US and China, not Europe. Moreover, even these estimates are really not much more than educated guesses, because only in the US have shale formations been subject to intense exploration over a period of decades.

This process is starting in Europe only now.

Poland appears to have Europe’s most favorable geology, and it might become a significant producer on a local scale in about 10 years. This is a fortunate coincidence, because shale gas production would probably make it politically easier to phase out Poland’s economically and environmentally irrational subsidies to local coal production (and consumption).

National authority But pro-fracking critics of the European Union miss a second point: the EU has no authority over the development of shale gas in Europe.

Licensing and regulation of exploration and pro-

duction are decided at the national level.

While it might be true that Europeans are too sensitive to environmental concerns, incentives also play a role. In particular, whereas ownership rights over natural resources in the US typically belong to the individual owner of the land under which the resources lie, in Europe ownership belongs to the state.

As a result, Europeans, facing uncertain environmental consequences while receiving none of the revenues, tend to oppose fracking nearby. In the US, by contrast, local residents benefit handsomely from being able to sell their ownership rights to gas companies – a strong counter-balance to fears of environmental costs.

But private versus state ownership of natural resources is not the only institutional factor underlying the US gas boom. A seldom-mentioned reason is that shale gas development in the US has benefited from important tax incentives – a model that Europe has no reason to emulate.

But the most crucial point about fracking is that shale gas, like all hydrocarbons, can be used only once. The real issue is thus not whether shale gas should be developed in Europe, but when it should be used: today or tomorrow.

Europe is already a heavy user of gas, but its consumption is stagnating (along with its economy). Despite the hype about the shale gas revolution, the extraction cost of (onshore) conventional gas remains below that of shale gas. Moreover, an existing pipeline network implies that this conventional gas can be brought to Europe at a low marginal cost. From an economic (and environmental) standpoint, fracking is thus unlikely to bring large benefits for Europe: shale gas might simply substitute for plentiful conventional gas. ● Daniel Gros is director of the Center for European Policy Studies.

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

SPECIAL EXPO REAL EDITION New shopping malls | Sector analyses | Polish investment market | KSP’s investment plans | Warsaw PPP project | Slipping home sales

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

CBRE leases for Robyg Developer Robyg has appointed CBRE as the leasing agent for its Robyg Business Center office and retail project in Warsaw.

The company is responsible for the leasing of more than 35,000 sqm of space that will be developed within the complex. Robyg Business Center is located on Al. Rzeczypospolitej in the capital’s Wilanów district.

Construction is currently underway on the first building in the complex which will provide over 8,000 sqm of usable space. ●

In this issue New ECE mall . . . . . . . . . . . . . . .12 Immofinanz in Lublin . . . . . . . .12 GreenWings construction . . . .13 Ogrody mall green-lit . . . . . . . .13 Poczta Polska lease . . . . . . . . . .13 Retail market . . . . . . . . . . . . . . .14 Property-related stocks . . . . . .14 Goodman in Gdańsk . . . . . . . . .16 Łopuszańska Business Park . .16 Office market . . . . . . . . . . . . . . .17 Investment market . . . . . . . . . .18 KSP plans . . . . . . . . . . . . . . . . . . .19 PPP in Warsaw . . . . . . . . . . . . . .20 Home sales . . . . . . . . . . . . . . . . .21 New Ronson project . . . . . . . . .21 Logistics market . . . . . . . . . . . .22

ECE to launch its €170 million Galeria Kujawska project next year

The company’s planned Galeria Kujawska scheme will deliver 50,000 sqm of space Developer ECE Projektmanagement Polska is planning to launch construction on a new major shopping center in Poland in spring next year.

The company’s Galeria Kujawska mall will be built in Bydgoszcz, in KujawskoPomorskie voivodship, and deliver 50,000 sqm of space.

The investment, whose value is estimated at €170 million, will be the largest shopping and entertainment facility in Bydgoszcz. It will also be the largest shopping center project that ECE Projektmanagement Polska has developed to date.

According to the company, there is already considerable tenant interest in the scheme, which will house 180 retail

The Galeria Kujawska scheme is scheduled to be completed in spring 2015 outlets. “Since the middle of this year, intensive work on leasing the space has been underway,” Rafa∏ Pruba, leasing director at ECE Projekt-

management Polska, said in a statement.

He added that so far terms of cooperation have been reached for approximately 40

percent of the retail space in the development. “Our most important partners include some of the most appreciated fashion brands in the world

and a recognized retailer of consumer electronics,” Mr Pruba said.

Earlier this year, ECE finished demolishing the buildings of the former ORTIS printing facility in Bydgoszcz that used to occupy the site on which the planned Galeria Kujawska project will be developed.

“We are planning to apply for a building permit in the first months of next year,” Leszek Sikora, development department director at ECE Projektmanagement Polska, said in a statement. The mall is scheduled to be completed in spring 2015.

ECE has been developing shopping centers since 1965.

The company, which is known in Poland for projects including Galeria Kaskada in Szczecin, is currently involved in the development of 14 new malls across Europe.

Adam Zdrodowski

Retail

Immofinanz to build z∏.480 mln mall in Lublin The project will provide 37,000 sqm of retail space Immofinanz Group has revealed the details of its planned z∏.480 million Tarasy Zamkowe retail and entertainment center in Lublin, southeastern Poland.

The Austrian real estate investor purchased land in Lublin that once hosted the Galeria Zamek shopping center, and has decided to build a mall that combines shopping and entertainment facilities on the plot.

“The city’s economic strength as well as a low satura-

tion of retail space were the main reasons for buying the land along with the old mall Galeria Zamek and deciding to transform it into a shopping and entertainment center,” Eduard Zehetner, chairman of the company, said in a statement.

Tarasy Zamkowe is to provide 37,000 sqm of retail space, 23,000 sqm of public space as well as 44,000 sqm of parking space.

There will be 150 shops, three restaurants, as well as several cafes and food outlets.

Work on the project is due to start this month, and the shopping center is expected to

be ready by autumn 2014.

Mr Zehetner said Lublin is a very attractive area for this kind of investment. “[With] an actual population of 350,000 and a population reach of 800,000, [Lublin] represents a very attractive place for investment,” Mr Zehetner said.

Tarasy will combine unique architecture with high ecological standards, the company says.

On the center’s rooftop there will be lawns, paths and viewing points. The company also hopes to secure BREEAM certification for the scheme.

“We are happy about the

COURTESY OF SOLSKI BURSON-MARSTELLER

Investment-fund manager Peakside Polonia Management (PPM) has obtained over €106 million in bank refinancing from Westdeutsche ImmobilienBank that will help the company operate and further develop three outlet centers from the Polonia Property Fund II portfolio. The three Fashion House Outlet Centre facilities in question are located in Gdaƒsk (in northern Poland), Sosnowiec (in southern Poland) and Piaseczno (near Warsaw).

Each of them comprises 17,000 sqm of leasable space and houses from 100 to 120 tenants.

Shopping centers

COURTESY OF ECE PROJEKTMANAGEMENT

PPM outlet centers refinanced

OCTOBER 8-14, 2012, LI 17/40

Tarasy Zamkowe will be ready by autumn 2014 positive assessment that we have been receiving so far in terms of our care for the environment,” said Ralph Bezjak, director of commercial devel-

opment at Immofinanz Group.

“We will certainly try and acquire BREEAM [certification],” he added.

Izabela Depczyk

OCTOBER 8-14, 2012

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

Ogrody mall in Elblàg gets building permit The extended shopping center will feature approximately 40,000 sqm of leasable space

COURTESY OF OKRE DEVELOPMENT

CBRE Global Investors has received a building permit for the modernization and extension of the Ogrody shopping center in Elblàg, in Warmiƒsko-Mazurskie voivodship.

The investment is set to launch

The Warsaw project will deliver over 10,800 sqm of GLA Investor GreenWings Offices has appointed CFE Polska as the general contractor of the planned GreenWings class-A office investment in Warsaw.

Construction on the development is scheduled to launch this month.

The GreenWings project is located on ul. 17 Stycznia in Warsaw’s W∏ochy district, near the Chopin international airport.

The seven-floor scheme will deliver 10,810 sqm of leasable space and 270 parking spaces in an underground parking lot.

GreenWings’ architectural design was furnished by the JEMS Architekci studio. It calls for the development of a

sustainable facility which has already been granted a “very good” BREEAM assessment.

Cushman & Wakefield and NAI Estate Fellows are the real estate agents responsible for leasing space in the GreenWings project. OKRE Development, an entity belonging to two Belgian groups, is managing the whole investment process.

Adam Zdrodowski

13

Shopping centers

Construction to launch on GreenWings offices

The scheme was designed by the JEMS Architekci studio

www.wbj.pl

this quarter and be completed in 2014.

“After the modernization and extension, Ogrody will be a latest-generation shopping center,” Krzysztof Bocianowski, head of Asset Management Poland at CBRE Global Investors, said in a statement.

He added that the facility is enjoying a lot of tenant interest and is already 50 percent leased out. The leasable space of the Ogrody center will more than

double after the extension, to approximately 40,000 sqm.

“The realization of the project will start as early as in Q4 this year and the opening of Ogrody in its new shape is scheduled for 2014,” Tomasz Szewczyk, regional managing director of Acteeum Central Europe, a firm that is responsible for the extension and commercialization of the mall, said in a statement.

Adam Zdrodowski

Poczta Polska leases 13,000 sqm from PHN for new headquarters Poczta Polska, Poland’s public post service, has signed a lease agreement for 13,000 sqm of office space in a new building in Warsaw that will become its new headquarters. The deal was signed with Warszawski Holding NieruchomoÊci, part of the Polski Holding NieruchomoÊci (PHN) capital group.

The future headquarters will be located on ul.

Domaniewska in Warsaw’s Mokotów district. According to the deal, the new premises are due to be handed over for use by the middle of 2015.

“The whole process was a major challenge, not only due to the investment, legal and technical issues, but also a short realization period, compared to market standards,” Kamil Tyszkiewicz, a senior negotiator at CBRE, which helped broker the

deal, said in a statement.

“The facility in question has not yet been built and the whole project was interesting in that it combined a lease agreement with an investment agreement,” stated Joanna Winter, a legal advisor at SSW, which also helped broker the agreement. She added that the tenant would have a say in the final shape of the buildAdam Zdrodowski ing.

14

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LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

OCTOBER 8-14, 2012

Retail market

Poland seeing steady growth, modernization

While there is still plenty of room for more retail development in Poland, at least the continuing economic malaise in Europe isn’t dragging the market down. Poland’s retail market is maintaining steady growth, as supply still fails to meet demand, according to analysts. Modernization and expansion is a big trend, and even with a largish pipeline of projects on the way, there is still plenty of room for development.

According to Jones Lang LaSalle, the third quarter of 2012 saw anemic delivery of retail stock in Poland, at just 31,600 sqm. But that belies the overall trend – the last quarter of the year will see a huge increase, to some 162,000 sqm of stock in seven new and three extended schemes. By yearend, Poland’s retail stock will have grown by 415,000 sqm, in line with 2010 and 2011 levels.

Warsaw dominant Warsaw maintains average density for Poland in terms of stock to population, with about 400 sqm for every 1,000 people. Moreover, only 14 percent of the country’s total stock is located in the Warsaw market.

As a capital city with by far the largest purchasing power (about €9,091, compared to a country average of €6,607), analysts see this as far too little.

Even though there are several projects in the pipeline – including under construction projects at Plac Unii, just south of the city center, and two shopping and leisure centers planned by GTC, CBRE characterizes Warsaw’s 2011-2013 pipeline as “clearly insufficient,” leading to negligible vacancies and an expanding area of the prime retail zone.

CBRE calculates the vacancy rate in Warsaw at about 1.6 percent, compared to an average vacancy rate in cities with more than 200,000 inhabitants of nearly 3 percent, according to JLL. Demand reflects these assessments, with a number of well-known international retailers pulling the trigger to enter the Warsaw market.

These include American Eagle

Outfitters (Arkadia), Victoria’s Secret Beauty & Accessories (Z∏ote Tarasy and Galeria Mokotów), and Hollister from Abercrombie & Fitch (Galeria Mokotów).

Smaller cities Some 57 percent of Poland’s retail stock is situated within the markets of Poland’s eight largest cities, according to CBRE, but small cities continue to attract plenty of attention. The two shopping centers that were brought to the Polish market in Q3 were in cities with fewer than 70,000 inhabitants. Both were developed by P.A. Nova – Odrzaƒskie Ogrody was delivered in K´drzyn Koêle, a city of just 64,000 inhabitants, while Galeria Miodowa went up in Kluczbork, with just 25,000 people.

This, according to JLL, “proves that developers and retailers value the attractiveness of smaller cities, even those below 50,000 citizens.”

Plenty more development in small cities is expected to come over the next couple of years, at least.

More modern As developers try to find ways

to meet demand, several shopping centers in Poland are undergoing modernization and extension.

“To date, one-third (i.e. 2.5 million sqm) of the existing shopping center supply has been put under some kind of revitalization program,” wrote JLL analysts in a recent report.

By 2014, a further 20 projects, in addition to the 74 that have already been modernized, will see revitalization. Included in this number are some Warsaw malls, such as Blue City, Galeria Mokotów, Klif and Promenada.

The consultancy says that the number of value-add and opportunity-driven investors has increased significantly, and describes their investment strategy of buying up older assets and revitalizing them to help them reach their full potential as an “interesting” one, but one which nevertheless requires considerable experience and expertise.

Rents Warsaw remains the most expensive retail location in the country, with high-street locations demanding anywhere between €75-95 per sqm per month. Z∏ote Tarasy,

Expert’s opinion

Mixed messages in CEE Tomasz Trzós∏o Head of Capital Markets, Central Europe, Jones Lang LaSalle We see rather mixed messages coming from the markets across Central and Eastern Europe (CEE). In Southeastern Europe (SEE) real estate trade has been very limited, and markets rather illiquid; elsewhere in CEE investors are more active but certainly cautious.

Notwithstanding, a number of deals are progressing in Poland, which is by far the most active market in the region, and some of these deals, especially in the retail sector, are at a very core pricing.

Indeed, a number of larger volume transactions have been signed and await closing across Poland. These include Manufaktura shopping centre in ¸ódê, Warsaw Financial Center (value of around €210 million), Platinium Business Park in Warsaw (value of around €170 million) and other deals, including some portfolio deals in the logistics sector. It should be noted that so far in 2012 investment volumes in Poland have materially reduced in comparison to 2011, but with some larger transactions under preliminary agreements and/or some other in due diligence, it is expected that the entire 2012 investment volume in Poland

will be similar to 2011, somewhere between €2.0 and €2.5 billion.

Other countries in the CEE/SEE region will, however, trade substantially lower volumes in 2012, and this includes the Czech Republic. The Czech Republic had a spectacular year in 2011, when a few big-ticket volume deals traded (examples include Multi portfolio, VGP portfolio, Olympia Brno or Palace Flora), and it is now back to more stable market volumes in 2012. Such a reduction in volumes is nothing unexpected, bearing in mind the above big-ticket deals of 2011 – and the Czech market is now back to smaller volume deals but stable market activity and continued investor interest.

Over the remainder of the year investors will continue to focus on prime, core markets and products, both in terms of asset quality and locations with flagship projects attracting the most attention and good pricing.

Secondary assets continue to be either illiquid or subject to significant repricing. However, prime yields are likely to remain at reasonably aggressive levels, and so prime office yields in Poland and potentially also in the Czech Republic are likely to be at around 6.25%, prime retail yields to be around 5.75% for best assets, and warehouse yields at around 8.0%, again for prime and long-term leased properties. ●

BROUGHT TO YOU BY JONES LANG LASALLE

Arkadia and Wolf Bracka charge significantly more than other schemes, according to CBRE. In major agglomerations, rents are significantly lower, around €35-55, while prime rents in secondary cities vary between €21 and €40.

JLL warns that shopping center owners and developers must be prepared for downward rental pressure and tenants’ expectations with regard to fit-out contribution, but adds that this refers to “secondary, not leading assets.”

Andrew Kureth

COURTESY OF WIKIMEDIA COMMONS

In 2012 retail stock in Poland will grow about as much as in years past, on the back of healthy demand and a slew of modernization projects

The Arkadia shopping mall in Warsaw

Property-related stocks Security

Closing price on Oct 4

% change (week)

52-week low

52-week high

% change (year)

Total shares

Market value (z∏. mln)

BUDIMEX

57.60

0.61

45.85

88.35

71.55

25,530,098

1,470.53

CELTIC

8.45

1.81

7.02

20.30

19.01

34,231,466

289.26

DOMDEV

28.70

0.74

23.50

42.80

25.04

24,715,272

709.33

ECHO

4.25

-1.16

3.05

4.45

3.44

420,000,000

1,785.00

ELBUDOWA

108.00

0.93

87.00

120.00

100.00

4,747,608

512.74

ENERGOPLD

0.21

-8.70

0.17

2.75

2.45

70,972,001

14.90

ERBUD

13.66

1.19

11.33

23.20

19.60

12,677,956

173.18

GANT

4.21

7.67

3.37

9.85

7.35

20,120,000

84.71

GTC

7.60

1.60

5.20

12.49

10.98

319,372,990

2,427.23

HBPOLSKA

0.02

-33.33

0.01

1.43

0.75

210,558,445

4.21

JWCONSTR

4.19

-4.77

3.85

8.42

6.10

54,073,280

226.57

LCCORP

1.16

-0.85

0.85

1.48

0.98

447,558,311

519.17

MARVIPOL

9.99

-2.06

6.20

11.00

7.25

36,923,400

368.86

MIRBUD

1.15

8.49

0.98

2.68

2.41

75,000,000

86.25

MOSTALWAR

14.30

-0.69

11.30

25.88

21.00

20,000,000

286.00

MOSTALZAB

1.22

-3.94

0.81

1.80

1.14

149,130,538

181.94

ORCOGROUP

7.70

13.07

6.36

19.55

17.90

107,840,962

830.38

PBG

6.11

0.16

3.36

92.00

62.00

14,295,000

87.34

PLAZACNTR

2.39

2.58

1.88

2.94

1.88

297,181,703

710.26

POLAQUA

3.51

6.36

3.30

8.29

7.50

27,500,100

96.53

POLIMEXMS

0.79

-10.23

0.48

2.04

1.60

521,154,076

411.71

POLNORD

14.57

9.63

10.49

19.85

11.03

23,798,439

346.74

RANKPROGR

8.70

9.02

7.10

16.97

9.60

37,145,050

323.16

ROBYG

1.30

-0.76

1.04

1.75

1.10

257,935,500

335.32

RONSON

0.80

-2.44

0.61

1.15

1.00

272,360,000

217.89

TRAKCJA

0.88

2.33

0.65

1.87

1.39

232,105,480

204.25

ULMA

39.20

-0.13

37.20

74.80

62.90

5,255,632

206.02

UNIBEP

4.79

7.40

3.60

6.55

6.08

34,021,684

162.96

WARIMPEX

3.19

0.31

2.64

5.77

5.43

54,000,000

172.26

ZUE

7.25

4.17

5.07

8.98

8.98

22,000,000

159.50

16

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LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

Logistics

OCTOBER 8-14, 2012

¸opuszaƒska Business Park signs major tenants

Goodman builds Pomeranian Logistics Centre in Gdaƒsk

COURTESY OF NBS COMMUNICATIONS

Industrial space developer Goodman has launched construction on its Pomeranian Logistics Centre project in Gdaƒsk. The scheme is located adjacent to the city’s Deepwater Container Terminal (DCT) and is expected to become the largest logistics hub of its kind in northern Poland.

When completed, the development will comprise approximately 500,000 sqm of warehouse and light industrial space and its total value will exceed €300 million. The first facility within the investment is scheduled to be delivered at the end of Q1 2013.

“Due to its excellent location, we are convinced that our Pomeranian Logistics Centre in Gdaƒsk will meet with considerable customer interest,” B∏a˝ej Ciesielczak, regional director at Goodman Poland, said in a statement.

“The potential customers we are targeting with this development include companies operating locally, domes-

COURTESY OF PARTNER OF PROMOTION

The investment will be the largest logistics hub of its kind in northern Poland

The scheme is now over 80 percent leased out

The project is located adjacent to Gdaƒsk’s Deepwater Container Terminal tically and internationally, across country sectors including sea transport, logistics, distribution, food and FMCG,” Mr Ciesielczak added.

Goodman is touting the center’s proximity to road, rail and air traffic infrastructure. The nearby Deepwater Container Terminal, the largest facility of its kind on

the Baltic Sea, provides a unique opportunity for portcentric logistics, the company said.

“The development of the logistics center has significance for Gdaƒsk as a city aiming to become the main gateway to countries in Central and Eastern Europe,” Boris Wenzel, CEO of DCT

Gdaƒsk, said in a statement.

Goodman commenced its operations in Poland in 2005.

The company owns and manages 266,000 sqm of facilities across the country. It also holds over 210 hectares of land in Poland on which 776,000 sqm of warehouse space can be developed.

Adam Zdrodowski

Developer Ghelamco Poland’s under-construction ¸opuszaƒska Business Park office project in Warsaw is now more than 80 percent leased out after the company secured two tenants from the financial sector.

The ¸opuszaƒska Business Park scheme is located on ul. ¸opuszaƒska in the capital’s W∏ochy district. The complex will comprise two buildings offering a total of approximately 17,000 sqm of office space.

The typical floor will be sized around 1,500 sqm.

An underground parking lot

with 320 parking spaces will also be part of the investment.

Construction on the ¸opuszaƒska Business Park development, which will feature green building solutions, is scheduled to be completed within a year.

Ghelamco Poland specializes in the development of office and warehouse buildings and has turned over more than 390,000 sqm of commercial space for use over the last 21 years. The company is also, under the Ghelamco Residential brand, present in the Polish AZ housing market.

OCTOBER 8-14, 2012

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

www.wbj.pl

17

Office market

The Warsaw market remains buoyant, supported by Poland’s largest regional cities The Polish office sector remains one of the brightest spots in a European market haunted by the ongoing sovereign debt crisis, with strong fundamentals and its ability to attract international occupiers allowing it to continue growing this year, where others have stagnated or shrunk.

According to a recent report

by CBRE, there is over 6 million sqm of modern office space in nine major Polish cities, 160,000 sqm of which was delivered in the first six months of this year. Over 1 million sqm is currently under construction, scheduled for delivery in 2013 and 2014.

Moreover, while rents for office space in Europe continued to fall in the second quarter of this year (by 0.2 percent q/q, according to CBRE’s European rental index), rents in Poland have remained stable.

“The first half of 2012, similarly to the two previous years on Poland’s real estate market, was an exceptionally good period, especially if considering the volume of leased office space,”

said Tomasz Czuba, director of the office leasing department at Jones Lang LaSalle.

Capital activity Warsaw was one of the busiest markets in Europe in Q2 in terms of tenant activity, with lease agreements signed for more than 172,800 sqm of space. New contracts accounted for 67 percent of all transactions.

“The highest rents in the Polish capital remained at a stable level in comparison with the end of 2011,” said Mr Czuba.

Almost 280,000 sqm of office space is due to be completed in Warsaw in 2012, making it one of the most active cities in Europe, according to the CBRE report.

The largest office projects under construction include the Warsaw Spire, Gdanski Business Centre and Konstruktorska Business Centre.

Tenants’ market Looking ahead, the supply of office space in the capital is expected to start favoring occupiers.

If the number of planned office projects is completed according to schedule by the end of next year, Warsaw

should turn into a typical tenants’ market, where tenants will be able to dictate their conditions, said Rafa∏ Wdowczyk, a senior office property negotiator at CBRE in Warsaw.

Moreover, 2014 will be the start of a new five-year leasing cycle, following on from the credit crunch of 2009, when only 350,000 sqm of office space was leased during the whole year. This means tenant activity may be lower in 2014 in comparison to today, said Mr Wdowczyk.

“This should definitely build the negotiating position of tenants wanting to renegotiate or relocate,” he added.

In addition, companies in the financial sector – and particularly brokerage houses – are scaling back operations in Warsaw as the government runs out of assets to privatize and the boom in stock market listings continues to subside.

“Assuming that all the planned projects in the Wola area [of Warsaw] will be delivered on time, we can expect that rents in the CBD may fall slightly. Office rents for [the Warsaw district of] Mokotów should remain stable,” Mr Wdowczyk said.

“Today companies are still

COURTESY OF PARTNER OF PROMOTION

Poland a standout performer in 2012

Warsaw Spire is one of the largest ongoing office projects in the Polish capital actively looking for space in Warsaw. There is no major slowdown in the amount of office space activity in the city center or Mokotów,” he added.

BPO boosts regions Beyond Warsaw, business services firms are helping to drive office market activity.

Experts say tenants from the BPO and offshoring, shared services, and research and development sectors are eager

to locate their centers in Poland’s regional cities, where costs are lower and well-qualified staff readily available.

Daniel Bienias, director of the office agency and tenant representation at CBRE, says the global economic situation, far from weakening Poland’s office market, is working in its favor, since occupiers are locating or expanding in the country’s regional cities to take advantage of lower costs.

“Regional office rents should remain on a stable level. Currently many local markets [are experiencing] a kind of a rare balance between the supply and demand for office space.” said Mr Bienias.

Poland’s office market is thus in a rude state of health compared to many in Europe, with Warsaw as ever carrying the flag supported by the country’s largest regional Gareth Price cities.

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LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

W. P. Carey finances warehouse Investment management company W. P. Carey will deliver 100% of the funds needed to construct a new 11,000-sqm lightindustrial warehouse facility that Panattoni Europe will develop in the western Polish city of ˚ary. The scheme will be developed for logistics and supply-chain management company Syncreon. The investment is located close to the German border. “W. P. Carey as a long-term investor has demonstrated that it can provide the financing companies need to construct and develop new facilities in both up and down market cycles,” Jeffrey Lefleur, managing director of W. P. Carey, said in a statement.

Brochocki brokes new deals The Kancelaria Brochocki real estate agency has brokered lease agreements for a total of approximately 10,000 sqm of office space in Warsaw and Wroc∏aw in recent weeks. The largest deals in the Polish capital included the lease by EDF Polska and Polska Organizacja Turystyczna of respectively 1,300 sqm in the Skylight building and 1,000 sqm in the Oxford Tower building. In Wroc∏aw, clients included AXIT, which leased 1,150 sqm in Aquarius Business House. ●

OCTOBER 8-14, 2012

Real estate investment

Holding firm Lokale Immobilia sits down with Monika Rajska-Woliƒska, managing partner at Colliers International, to talk about the current situation in, and prospects for, the Polish real estate investment market Adam Zdrodowski: Two office towers have recently changed hands in Warsaw and a third has been put on sale. What’s behind this trend?

Monika Rajska-Woliƒska: That the sale of the two skyscrapers in Warsaw took place at almost the same time is accidental. Such transactions follow long negotiations and take months to close. Still, they can be attributed to the large interest that real estate investors now have in the Polish market.

Poland is high on the target list of investors deploying capital in Europe given its economic growth, and the Warsaw CBD office market offers a relatively low risk profile given its strong liquidity and low vacancy. Twenty-one out of 22 Polish office transactions that closed in 2011 were Warsaw properties.

What are the prices like in comparison to previous years?

The price levels for core CBD office products – class-A, welllocated, fully leased, and of institutional quality – have held firm, together with the investment volumes which in 2011 amounted to €2.5 billion, out of which 49 percent was attributable to office assets.

H1 reports forecast a decrease in the investment volume in 2012. Could the recently concluded large deals mean the

volume will actually not be lower than last year?

We are of the opinion that the 2012 investment volumes will be similar to the 2011 level of €2.5 billion, provided that the transactions which are currently in due diligence or are subject to preliminary agreements, close before year end.

Deals currently in due diligence and scheduled to close in 2012 amount to well over €1 billion in volume. The total investment volume in the first three quarters of this year was approximately €1.15 billion.

Which office products are now on investors’ radars in Poland and in which locations? Is it just offices in central Warsaw or are buildings in some other parts of the capital and in regional cities also in demand?

The prevailing demand from investors for office buildings are for core office assets in Warsaw’s CBD. That said, there are several office buildings in the Mokotów district that are under offer or in due diligence at the present time.

With regard to retail, which has recently accounted for approximately 45 percent of the total investment volume, investor interest is nationwide with a focus on Warsaw and major secondary cities, including Kraków, Wroc∏aw and Katowice.

COURTESY OF COLLIERS INTERNATIONAL

18

Ms Rajska-Woliƒska said Poland is high on the target list of investors in Europe The most sought-after shopping centers are those which are food-anchored and dominant within their respective catchment areas. They also have a strong trading history and the potential for being expanded.

With regard to logistics, the preference has in the recent past been for well-located class-A assets with generally long-term leases, mostly builtto-suit projects. However, the logistics investment market is evolving quickly and we expect to see a number of larger logistics transactions in the near future.

Do you expect more large transactions in the office and

retail sectors to be concluded in Warsaw and Poland at large in upcoming months?

Yes, we expect that the market will see the closing of a number of large transactions before year-end. The last quarter of the year is always the most active and exciting in the investment market. Unfortunately, I cannot yet reveal any particular deals that are being worked on.

Do you see investor interest in projects which are at the planning stage?

Construction financing constraints and pre-lease requirements are requiring office developers to consider joint venture structures or

forward sale transactions and there is a lot of capital available for joint ventures from value added or opportunistic investors.

The challenges in these types of transactions arise during the structuring process, since few developers have the ability to provide the completion guarantees and other forms of security that a joint venture investor generally requires.

However, core investors generally prefer to acquire completed projects, those which are leased out and generate revenues. Those investors consider buying such projects less risky than investing in planned schemes. ●

OCTOBER 8-14, 2012

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

www.wbj.pl

19

Real estate investors

KSP touts Polish office opportunities Adam Zdrodowski: KSP is a relatively new entity in Poland but has already acquired three office buildings in Warsaw. How do you view investment prospects in the Polish property market at the moment?

Edgar Rosenmayr: The Polish property market due to its stability and growing maturity offers a number of attractive investment opportunities, ranging from greenfield and brownfield developments to recently completed properties.

How much is your company going to invest in Polish property in the next few years and which locations and sectors are of particular interest to you?

It always has been the company’s strategy to build a portfolio of institutional quality over the medium term with a target equity value of around €500 million. The majority of this

portfolio will comprise offices but will also include retail to some extent.

Our strategy foresees acquiring unique properties – centrally located, of exquisite architecture, with excellent technical parameters, attractive to tenants, offering a good potential for value growth during a medium- and a long-term ownership, also those meeting the highest environmental standards and being certified

by BREAM or LEED, or qualifying for such certification.

In terms of markets, Poland will account for the largest part of our portfolio which eventually may also include properties or developments in other CEE markets.

KSP is also planning to develop real estate projects – what will be the share of developer projects in your overall portfolio in Poland?

There is no set percentage of

development projects in our portfolio. Going forward we expect that approximately half of our portfolio could be developments.

The planned Chmielna Tower in Warsaw has encountered some administrative obstacles. When could construction on the skyscraper launch and what will be its ultimate height?

We are currently working on a new design and once completed will reinitiate the permitting process. If everything goes well we may see construction start in the fourth quarter of 2013.

Have you already secured some other sites in Warsaw or elsewhere in Poland on which new projects will be launched in the near future?

Yes of course, KSP is evaluating a few development opportunities at the moment, especially in Warsaw. Unfortunately, the stage of negotiations is too early to talk about details.

We will inform the public about our new projects at the appropriate time.

KSP has recently unsuccessfully tried to buy Meble Emil-

ia with its prime site in central Warsaw. Does this mean the company is also looking for land for other skyscraper projects in the Polish capital?

We regard development of high-rise buildings as one of the strengths of our company given that we have access to the respective wealth of expertise of our US shareholder. KSP therefore is looking at land plots which potentially qualify for high-rise developments.

What are your expansion plans for the next few years?

Which other Polish cities/CEE countries could KSP enter in the near future?

Our expansion plans will follow our strategy mentioned above. According to our mandate, KSP is allowed to invest in major regional cities in Poland, as well as in the capital cities of other CEE countries.

KSP has previously mentioned the possibility of debuting on a stock exchange.

Would that debut take place in Warsaw and when could it potentially happen?

A stock-exchange listing still remains one of the options for optimizing the capital struc-

COURTESY OF KULCZYK SILVERSTEIN PROPERTIES

Lokale Immobilia talks to Edgar Rosenmayr, managing director and member of the board of real estate developer and investor Kulczyk Silverstein Properties (KSP), about the company’s investment plans in the Polish market

KSP’s Edgar Rosenmayr says the development of high rises is one of his company’s strengths ture and ensuring future growth which will be contemplated in a few years. A War-

saw listing will certainly be one of the possible options to be considered. ●

Expert’s opinion

Commercial property purchase transactions: How to improve your cash flow Beata Stasiek-Juszczyƒska Tax Director, KR Group Whilst planning an asset transaction, one of the most important issues that has a big impact on the cost of financing is the tax aspects, in particular VAT paid on the deal.

VAT, by definition, should be neutral for an entrepreneur, but it often isn’t.

A standard practice on the real estate market is that the VAT amount on a property purchase is to be settled by the acquiring party just after the Sale and Purchase Agreement (SPA) is signed, while the VAT paid may be reclaimed back from the tax authorities within 60 days – a standard term according to Polish VAT regulations. This state of affairs can substantially increase the financing costs of a deal. However, it’s possible to obtain significant savings if the transaction has the assistance of tax planning that covers an analysis of the opportunities and threats of an accelerated VAT refund application, which is often an option.

Opportunities for accelerated reclaim of VAT Following VAT regulations, it is possible to apply for a 25-day refund of input VAT, which offers a huge advantage for leverage in asset transactions. An application for the accelerat-

ed refund should be submitted along with the VAT declaration for the month of the acquisition, which is submitted to the tax authorities usually by the 25th day of the month following the month of the transaction. The basis for VAT deduction is the original hard copy of the VAT invoice received by the buyer, unless electronic invoicing is implemented.

It should be underlined that the accelerated VAT refund option is restricted to certain cases, such as when VAT has already been paid. This should be documented with a payment confirmation available before the date that the refund application is submitted. Additionally, VAT on sales should be declared in the same VAT declaration.

Within the above-mentioned VAT reclaim procedure there is still place for further optimization. It is worth mentioning that the VAT return with the refund application may also be submitted just after the SPA is signed, that is, before the end of a VAT-calculating period.

Such an opportunity is possible by predicting cash inflows on the income side. Rental agreements for commercialized properties offer a clear picture of the expected turnover, which may be stated in a VAT declaration even before the month’s end. This may considerably shorten the time gap between the closing date and the deadline for VAT return and substantially relieve the financing’s cost burden.

Additionally, even a small amount of output VAT on sales gives a green light for the accelerated refund. Therefore, in case no VAT-able turnover resulting from rental agreements signed for the acquired commercial property occurs in the month of the claim, proper tax planning may still give an advantage.

Potential risks As VAT amounts involved with asset deals are usually of significant size, the refund applications are always subject to detailed examination by the tax authorities. For this reason the VAT declaration with the refund claim should be carefully drafted and any potential risks should be identified in advance and hedged if possible.

What should be remembered is that for the accelerated VAT refund a necessary condition of a full payment of the asset price should be fulfilled, which may seem to be an obstacle, having in mind the business practice of retention payments or deposit accounts for such transactions.

Recently, the tax authorities have taken a new approach, according to which they analyze the transaction conditions in more detail, in particular the payment terms based on escrow-account transfers. In such a case, the SPA wording may be relevant for the successful fast claim of input VAT.

BROUGHT TO YOU BY KR GROUP

The attention of the purchaser should also be drawn to a potential VAT exemption which may be applicable for properties that are already commercialized. Additionally, the asset deal may be deemed as the transfer of an organized business unit, which is out of the scope of VAT. VAT regulations are very complex and tricky in this respect, meaning in-depth insight into the transaction tax aspects are required, especially given that the threat of an incorrect qualification of the VAT rate imposes a significant risk for the purchaser: He may be deprived of the right of a VAT deduction of the incurred VAT amount.

However, despite the existence of potential VAT risks, there is still place for tax optimization which may be dealt with successfully with the assistance of experienced tax advisors, allowing for financing cost cuts and additional cash benefits for the investor. ●

KR Group ul. Owsiana 12, 03-825 Warsaw, Poland Tel.: +48 22 262 81 00, fax: +48 22 616 13 38 office@krgroup.pl, www.krgroup.pl

20

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

OCTOBER 8-14, 2012

Infrastructure

Warsaw pursues PPP parking project SHUTTERSTOCK

The municipal authorities are proposing eight potential locations across the city

Warsaw authorities hope to add up to 2,500 parking spaces through the scheme

Warsaw City Hall is looking for a private investor with whom it could develop several multi-storey underground

parking lots within a publicprivate partnership formula.

The authorities hope construction on the first such facility could launch in 2015.

“We estimate that we will finish the negotiations in 2013 and in the following year the selected private partner will be securing building permits. We expect that con-

struction on the first parking lots could launch in 2015,” Jaros∏aw Kochaniak, deputy mayor of Warsaw, said in a statement.

Warsaw City Hall has come up with proposals for eight potential locations for the planned parking lots in the capital’s ÂródmieÊcie and ˚oliborz districts, each of which could contain from 120 to 1,000 parking spaces.

The locations are mostly some of the busiest squares in central Warsaw and include Plac Bankowy (Bank Square), Plac Konstytucji (Constitution Square) and Plac Trzech Krzy˝y (Three Crosses Square) in the capital’s downtown. A total of up to 2,500 new underground parking spaces could be developed in those places, the authorities hope.

“We expect that construction on the first parking lots could launch in 2015” The selected private partner will manage the newly developed parking lots for a specific, to-be-negotiated, period of time. The entity will finance the whole project and will have revenues from the operation of the parking facilities and the accompanying commercial spaces.

The municipal authorities are looking for an investor that has built at least one multi-storey underground parking lot for 200 or more cars, designed at least one completed facility of this kind and managed at least two paid underground parking lots for at least 200 cars over the last five years.

The goals of developing the planned underground parking lots include vacating the spaces above ground that are now occupied by cars in the proposed locations and improving parking conditions in downtown Warsaw, Warsaw City Hall said in the statement.

A consortium of consulting companies Ernst & Young Corporate Finance, EC Harris and DLA Piper has already provided Warsaw City Hall with a preliminary feasibility study for the project. The advisors will also support the municipal authorities in the process of selecting the private investor.

Adam Zdrodowski

OCTOBER 8-14, 2012

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

Residential

WSE developers see home sales slump A group of 11 major residential developers listed on the Warsaw Stock Exchange sold a total of 1,690 new homes during the third quarter of this year, a 6.8 percent drop compared to Q3 2011.

After the first nine months of the year, cumulative sales totaled 5,147 units, a decrease of 9.8 percent y/y.

On a quarterly basis, new home sales actually rose in Q3, according to BRE Bank data.

Experts say the fourth quarter should see similar levels of new home sales to Q3, since developers are likely to continue taking advantage of a government subsidy program that finishes at the end of this year.

“That’s the reason why Q3 was better on a quarter-on-quarter basis – developers have been using the government subsidies to help them sell new homes,” said Piotr Zyba∏a, a real estate analyst at BRE Bank. “The year-on-year slump, howev-

er, is caused by more fundamental factors: because of the stricter credit policies of Polish banks and of the regulator,” he added.

When the subsidy program ends, new home sales are expected to fall on a quarterly basis.

“The only way new home sales could stay on a similar level as today would be if the regulator were to introduce less strict regulations on mortgages,” Mr Zyba∏a said.

“However, despite there being political will for such regu-

latory changes, no hard decisions have been made,” he added.

Authors of a report on the state of the Polish residential and commercial real estate markets, published last week by the National Bank of Poland, noted that the industry is now undergoing heavy restructuring to adapt to increasing competition and lower demand.

However, they feel that the situation of the average company in the sector does not warrant major concerns, at least for the moment.

GP, RA

SHUTTERSTOCK

Analysts say stricter credit and regulatory policies are behind the drop

Home sales have fallen as lenders come up against stricter regulations

COURTESY OF NBS COMMUNICATIONS

Ronson launches M∏ody Grunwald in Poznaƒ

M∏ody Grunwald will deliver a total of 268 apartments Warsaw Stock Exchange-listed developer Ronson Development has launched construction on the first phase of its M∏ody Grunwald multifamily residential investment in Poznaƒ, in western Poland. Karmar is the general contractor of the development.

The M∏ody Grunwald project is located at the intersec-

tion of ul. Jeleniogórska and ul. Kamiennogórska in the city’s Grunwald district. The whole scheme will deliver 268 apartments when completed.

The first phase of the investment will comprise 136 housing units. They are priced from over z∏.5,400 to z∏.6,500 per sqm and include homes that qualify for the “Family on its Own”

subsidized mortgage program for first-time home buyers.

Ronson Development has been active in the Polish market since 1999. The company, which has been listed on the Warsaw bourse since 2007, is currently involved in projects including Espresso, Verdis and Sakura in Warsaw.

Adam Zdrodowski

www.wbj.pl

21

22

www.wbj.pl

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

OCTOBER 8-14, 2012

Logistics space market

Warehouse completion volumes are rising fast in Poland, helping to support the wider region The warehouse market in Poland has picked up the pace so far in 2012 and is helping to prop up the wider Central European logistics market, according to industry experts.

In the first half of 2012, some 305,000 sqm of warehouse space was completed in Poland – double the volume delivered in the corresponding period of last year, and more than twice as much as in H1 2010, according to a report by CBRE. Most of the warehouse space in Poland is being built in the Upper Silesia region and in the city of Poznaƒ.

“At present approximately 251,000 sqm of modern warehouse space is under construction in Poland. Most of the space is built in Upper Silesia and in Poznaƒ,” Colliers International wrote in a recent report.

Cushman & Wakefield estimated that some 370,000 sqm of warehouse space was completed in Central Europe in H1 2012. The combined value of the space is put at €170 million. As most of this warehouse space is in Poland, experts say the country is one of the biggest stabilizing factors in the Central European warehouse market.

Stabilizing influence “The biggest warehouse space transactions have been noted in Poland,” said Ferdinand

Hlobil, head of the Central European Industrial Department at Cushman & Wakefield. “Poland has been [one of the] main stabilizers in the region,” he added.

Mr Hlobil said that regardless of the ongoing economic crisis in Europe, the industrial real estate market in Central Europe is in relatively good shape. He added that developers’ and investors’ plans to continue their activity indicates that there is a possibility that the sector could see satisfactory profits.

The number of warehouse transactions in Poland has nevertheless been low compared to the volume seen in the office and retail markets, due to the limited availability of high-quality schemes.

In Q1 2012, just one invest-

Logistics by numbers Polish warehouse market in the first half of 2012 Warsaw (city) Warsaw (peripheries) Upper Silesia Poznaƒ Supply (sqm)

Central Poland

Wroc∏aw

526,100

1,976,600

1,322,600

1,001,100

977,500

651,500

New supply in H1 2012 (sqm)

6,800

68,500

58,900

59,500

41,200

36,300

Net demand in H1 2012 (sqm)

17,700

61,200

105,900

32,900

60,000

66,100

Vacancy rate in H1 2012 (sqm)

12.5%

19.0%

4.5%

3.4%

13.7%

13.4%

Source: Jones Lang LaSalle

COURTESY OF CBRE

Poland provides stability for region

Some 305,000 sqm of logistics space was delivered in Poland in H1, 2012. Pictured is Prologis Park Wroc∏aw III, which was delivered in 2011 ment transaction was finalized in the logistics sector, with Hines purchasing a portfolio of Prologis projects for €96 million. In Q2, two investment deals were closed: Ideal Idea Park II in Warsaw was purchased by BPH FIZ and Goodman sold a built-to-suit project in Legnica to Case Tech.

Output gap The Polish warehouse space market is facing a serious output gap, which means developers will engage more in speculative projects, Jones Lang LaSalle said in a report.

However, Tomasz Olszewski, head of the industrial agency for the CEE region at Jones Lang LaSalle, said speculative projects won’t be implemented on a large scale, and will only enter the market in H2 2013. He explained that the small supply of speculatively built facilities is primarily the result of restrictive bank policies. Lenders, he said, are reluctant to provide loans for projects which have not secured lease agreements.

According to Colliers International, the outlook for the industrial market for the

next few months is optimistic.

“Rising demand for modern warehouse space results in the decrease of vacant space levels in certain markets which may increase rental rates.

Almost all projects under construction are already leased.

However, developers still have a significant amount of land prepared for warehouse projects that will be able to satisfy the demand of prospective tenants,” said Maciej Chmielewski, a partner in the industrial and logistics department at Colliers International.

Izabela Depczyk

OCTOBER 8-14, 2012

LOKALE IMMOBILIA – SPECIAL EXPO REAL EDITION

www.wbj.pl

23

Case study

PrzemyÊl as an investment location are electrical machinery, wood production, mechanical engineering, railway electromechanical equipment, construction, lighting, furniture, textiles manufacturing and as cosmetics.

PrzemyÊl also boasts investment areas in a subzone of the Tarnobrzeg Special Economic

Why did REM II decide to invest in this particular special economic zone?

Andrzej Pichur: The decision to invest in the PrzemyÊl special economic sub-zone was a natural continuation of the development of our company. In the first years we were selling our products, mainly in the Podkarpackie voivodship. Today we export windows and doors to much more demanding markets, mainly in Germany, Italy and Slovakia. Initially we were going to invest in a different zone, but eventually we decided on PrzemyÊl. Our company has headquarters in the city PrzemyÊl and investing in the zone here meant our factory could be built two kilometers away from our offices. Also, the legal benefits were a factor that affected our decision.

What made PrzemyÊl so attractive for REM II? The most important factors were the business aspects that I mentioned. It is important to underline that throughout the time we have been present here as a company, we have experienced a very friendly environment in PrzemyÊl and very attractive conditions to carry on with our business activities. We built a strong group of talented people. Aside from that, as I am from

Zone. The zone offers ample opportunities for investors interested in penetrating markets in Belarus, Ukraine, Russia and Poland’s own fast-developing eastern markets.

The SEZ provides investors with public aid in the form of tax exemptions covering up to 70 per-

cent of total investment outlays, while it also offers labor costs which are the lowest in Poland, according to officials.

The following is an interview with Andrzej Pichur, the CEO of REM II, a maker of .in the PrzemyÊl subzone, about why the company chose to invest in PrzemyÊl. ●

COURTESY OF MACIEJ FIGIEL / WWW.MACIEJFIGIEL.INFO

PrzemyÊl is a city with a fairly diversified economic structure.

The three main sectors which have developed here are heavy industry, agritourism and recreation, but the city is also developing the telecommunication, construction and service sectors.

The dominant industries here

COURTESY OF MACIEJ FIGIEL / WWW.MACIEJFIGIEL.INFO

rzemyÊl is a city with an area of 46 square km and a population of 66,909 inhabitants. Located in eastern part of the Podkarpackie voivodship, in southeastern Poland, today it is one of the easternmost towns in the European Union and plays an important part in crossborder cooperation with Ukraine.

PrzemyÊl, I have been attached to this city and I care about its growth and development. This is why I never considered moving production elsewhere.

How much is your investment worth?

Our investment is worth z∏.7 million When is REM II planning to start production?

We are currently preparing to launch production. As soon as we are done with the formal and legal issues we will launch production of the doors and windows of Hensfort, which is the company which we introduced this year.

What were the positive surprises that you came across in PrzemyÊl once you made the investment?

Even though we are from here, we were very pleasantly surprised by the environment of the zone. From our company’s windows you can see beautiful views. Another positive surprise is the timely release of the bypass road in PrzemyÊl, which significantly facilitates the access to the economic zone, and ultimately makes it more attractive. ● BROUGHT TO YOU BY MIASTO PRZEMYÂL

COURTESY OF MACIEJ FIGIEL / WWW.MACIEJFIGIEL.INFO

P

INTERVIEW

www.wbj.pl

Economic strength, weaknesses Professional services firm Grant Thornton recently published its own economic indicator which blends GDP growth with 21 other factors that influence the economy. In this ranking, Poland gained 57.2 points out of a possible 100, placing the country in 28th spot among 50 countries examined in the study, Puls Biznesu reported. Poland’s strong points include a high level of business activity and a favorable political framework, while weak points include a low level of R&D investments.

Joblessness costs state z∏.10.5 bln The long-term unemployed, namely people who have been unsuccessfully looking for a job for at least one year, pose a serious social problem in Poland and are a source of lost revenue for the state budget. They cost taxpayers z∏.10.5 billion a year, according to calculations made by Deloitte. ●

OCTOBER 8-14, 2012

Higher education

Does Poland produce too many graduates?

WBJ sits down with Juliusz Madej, president of one of Poland’s best-known private institutions of higher education, Lazarski University, to talk about how prepared today’s graduates are for the labor market, how Poland can develop an innovative economy and what has changed for young Poles over the last two decades Remi Adekoya: OECD figures show that Poland has one of the highest numbers of university-educated youth in Europe proportional to its population.

But Andrzej Klesyk, head of insurer PZU, said recently that Polish universities are merely “unemployment factories.” Are they?

Juliusz Madej: I have often wondered to myself whether it is a good thing that we have so many graduates or a bad thing.

In my opinion, a higher education should be an in-depth, high-quality experience. In reality, can we give half our youth a thorough education? I doubt that.

So you agree that Polish universities produce graduates who are bound to join the

ranks of the unemployed?

Mr Klesyk accused us of not preparing students for the labor market. I beg to disagree.

Universities are not the only ones to blame. Each particular stage of the education system in Poland requires improvement, from the primary classrooms onwards. Changes in educational policy and regulations would help develop more market-oriented curricula.

At Lazarski University, we regularly conduct surveys among businesses to ask them what they expect from new employees and how happy they are with the graduates they have. The fact is that they generally do not complain about the level of knowledge young people have, but about the quality of their skills.

“Today, Poland has a ‘copy-cat’ economy.

Technology is simply transferred here” – Juliusz Madej

COURTESY OF LAZARSKI UNIVERSITY

24

INTERVIEW

OCTOBER 8-14, 2012

SHUTTERSTOCK

“There are powerful players in Europe who have no interest whatsoever in Poland becoming an innovative economy or overtaking them”

What kind of skills?

Soft skills in particular.

Employers look for graduates with excellent communication skills and the ability to cooperate, which many young people apparently lack. They also expect advanced computer skills and fluency in one or two foreign languages. Some complain about the young people’s attitude to work, their commitment and so on. Many of these skills are, to a large extent, shaped earlier on in life, by the family environment and later in primary and secondary schools.

Why is it that young Poles have trouble working in a group?

Poles are known as being very individualistic …

So are Americans, but they often manage to cooperate effectively.

The current model of education actually discourages cooperation between students. In primary and secondary schools the emphasis is on individual achievement benchmarked against that of others. At Lazarski, we make sure students have opportunities to enhance their skills in this sphere. For instance, students are given group tasks and then asked to conduct peer evaluation. Do they give their colleague who they know cheated during a task an A or an F? No matter what they decide they will give the matter much thought – and that in itself is a good lesson.

What do your professors complain about regarding their students?

There seems to be a Europewide problem – the level of general knowledge demonstrated by university candidates is gradually decreasing,

year by year. For a time math was not obligatory on A-level exams, which was a big mistake. Also, literature is no longer compulsory, so young people read less and less.

Again higher institutions are not to blame for the level students are at when they enter universities!

How has the situation of young Poles on the labor market changed over the last two decades?

In the 1990s the world offered many opportunities to young people. There was a huge demand for educated workers and people’s careers moved fast. In two or three years, you could move up several levels on the ladder.

Today it is very different.

There is a global crisis, which is affecting Poland as well. Nowadays it is difficult to get a job even if you are very well-prepared. For young people who made an effort to study hard at university, this can be extremely frustrating. Back then the labor market was benign, today it is cruel.

What are some things the government could do to improve the situation of Polish universities?

Greater autonomy for higher institutions, also a leveling of the playing field between private and public universities.

So you think private universities are discriminated against?

Yes, we are. For example, public universities are subsidized while private universities aren’t. Under the Higher Education Act of 2005, private universities could receive subsidies for full-time students; however the minister of higher education has not yet issued an order that would enforce this regulation.

A lot is made of Poland’s need to transform into a knowledgebased economy, but that doesn’t seem to be happening at a particularly fast pace. What can the government do to help?

Today, Poland has a “copy-cat” economy. Technology is simply transferred here. This is strange because Poles are extremely creative and innovative as a people. There are no major international IT firms where Poles don’t work. So it’s not we universities that are making the mistakes, because we are producing these people.

It’s the government and regional authorities who must now do their part. There should be serious tech hubs in Poland. Why isn’t there even one in Warsaw?

So you think private universities should receive money from the government?

Money is not even the biggest problem. There are actually significant EU funds available for that purpose. What we need is someone who will organize things from the logistical point of view. The real money is in innovation. Also, in trying to copy others effectively, we have to compete with serious players like China and India.

Why do you think the Polish government is not doing its part?

I am not sure whether it is the government or external factors. We are not operating on an island. There are powerful players in Europe who have no interest whatsoever in Poland becoming an innovative economy and gaining competitive advantage.

So you need to understand all these things and have the determination to push things forward. ●

www.wbj.pl

25

26

THE LIST

www.wbj.pl

OCTOBER 8-14, 2012

Construction & Real Estate

Construction Project Management Companies Ranked by revenue from project management in 2011

www.bookoflists.pl

WND WND 1.5 WND

40.0(1) 33.0(1) 23.2 WND

✓ ✓

CH2M Hill Polska Ltd. Sp. z o.o. ul. Podgórska 34, 31-536 Kraków 2 12 376-5500/12 376-5600 officepl@ch2m.pl www.ch2m.com

26.1 17.8 18.5 24.0

-

26.1 17.8 18.5 26.4

✓ ✓ ✓

URS Polska Sp. z o.o. ul. Rejtana 17, 02-516 Warsaw 3 22 427-3700/22 427-3701 warsaw@urs.com www.ursglobal.com

19.8 15.4 27.4 26.8

-

70.8 77.8 80.5 54.2

16.5 19.0 16.0 24.0

24.8 23.0 19.0 22.0

15.9(1) 16.5(1) 17.5 17.0

Bureau Veritas Polska Sp. z o.o. ul. Migda∏owa 4, 02-796 Warsaw 6 22 549-0400/22 549-0410 biuro@pl.bureauveritas.com www.bureauveritas.com

Hill International Sp. z o.o. ul. Marynarska 15, 02-674 Warsaw 7 22 581-3777/22 581-3778 warsaw@hillintl.com.pl www.hillintl.com.pl

Document preparation for tenders / Tender management

34.2(1) 25.7(1) 16.9 16.0

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

Foreign project authorization / Pre-investment / Architectural design / Investor representation

WS Atkins-Polska Sp. z o.o. ul. Bonifraterska 17, 00-203 Warsaw 1 22 246-0700/22 246-0701 atkins@atkinsglobal.pl www.atkinsglobal.pl

Rank

Land acquisition / Cost estimates / Feasibility studies / Investment supervision

Services

✓ ✓ -

✓ -

A4 highway including LNG terminal - investment Murckowska junction supervision (ÂwinoujÊcie); A2 investment supervision; Stryków highway Âwiecko-Nowy TomyÊl; ring road; A2, A1 highways Bielsko-Bia∏a ringroad

✓ ✓ ✓ ✓

✓ ✓

WSK “PZL-Rzeszów” (Rzeszów) - modernization and extension; project of extension of production plant from cosmetics industry (¸ódê); document preparation, extension and investment management (Garwolin)

✓ ✓ ✓

✓ ✓ ✓

✓ -

Warsaw Railway Junction feasibility study; Pu∏awy ring road; S69 high-speed road; diametrical tram line reconstruction (Wroc∏aw); water supply and sewage network modernization (¸ódê)

41.3 42.0 35.0 46.0

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

WND WND WND WND

45.9(1) 54.0(1) 56.0 50.0

✓ ✓ ✓

✓ ✓ ✓ ✓

13.0 16.1 7.3 6.9

-

28.3 29.6 31.0 25.0

✓ ✓ ✓

11.0 9.0 20.0 34.0

-

11.0 9.0 20.0 34.0

✓ ✓ ✓

Revenue from Revenue from project management architectural design (z∏. mln) (z∏. mln)

Total revenue (z∏. mln)

2011 / 2010 / 2009 / 2008

PM Group Polska Sp. z o.o. ul. Kleciƒska 125, 54-424 Wroc∏aw 4 71 354-8900/71 354-8901

wroclaw@pmgroup-global.com www.pmgroup-global.com

Ove Arup & Partners International Ltd. Sp. z o.o. oddzia∏ w Polsce ul. Królewska 16, 00-103 Warsaw 5 22 455-4554/22 455-4555 arup.poland@arup.com www.arup.com

Notable projects recently completed

Current projects

Number of architects / Number of licensed architects

Number of project Total managers / number of Number of employees / construction Year engineers / founded in Number of Poland licensed engineers

Ownership: Polish / Foreign

Top local executive / Title

None WS Atkins International Limited - 100%

Stephen Novis

WND WND

WND WND WND

WND 1993

PKP PLK - construction of switchboard stations KrakówZab∏ocie, Kraków-Krzemionki

8 6

7 101 28

183 1996

None CH2M Hill International Ruben A. Robles 90%; CH2M Hill International Engineering - Vice President; General Director 10%

A4 highway Jaros∏aw-Korczowa and Rzeszów-Jaros∏aw; E-65 Pó∏noc and E-65 Po∏udnie railway modernization project; Wroc∏aw Water Junction modernization; technical advice on highway projects for GDDKiA

-

52 212 110

311 1993

None URS Corporation - 100%

Managing Director in Europe

BAMA Europa; Pittsburgh Glass Works; Autoliv; Weyerhaeuser; Corporation; Fresh Start L’Oreal; 3M; Frito-Lay (Hamburg) Mando Bakeries; Pasta Food Company

30 20

41 80 36

233 1997

None PM - 100%

Managing Director

✓ ✓

Galeria Katowicka (Katowice); National Forum of Music CH Silesia City Centre extension; (Wroc∏aw); Atrium South Cracow Cyclotron (Kraków) (Warsaw); CH Gdynia Wzgórze (Gdynia); hospital (˚ywiec)

-

20 100 45

133 1998

None Arup Group Limited UK 100%

Andrzej Sitko; Jan Zabierzewski

✓ ✓ -

✓ ✓

Asbestos monitoring program in Nestle plants; technical audit of King Cross Leopolis (Lviv); due diligence for Greenlab; technical audit of B&B (Toruƒ)

Rezydencja Bia∏a 3 construction project management and investment supervision; Urzàd Skarbowy investment supervision (Piaseczno); Wilanów Office Park bank monitoring (Warsaw)

-

-

72 1958

None Bureau Veritas - 100%

Artur Sroka

✓ ✓

✓ ✓

GTC Platinium IV; GTC Platinium V

Z∏ota 44; Miasteczko Orange; PAOP Cold Store Gdaƒsk; Villa Arte

1 1

16 51 46

61 1991

None Hill International - 100%

17 7

11 25 19

203 1947

Prochem Holding - 24.7%; Legg Mason Zarzàdzanie Aktywami - 15.5%; ING Jaros∏aw St´pniewski TFI - 9.2%; OFE PZU “Z∏ota President Jesieƒ” - 8.4% Steve G. Tappan - 9.8%

Prochem SA ul. Powàzkowska 44C, 01-797 Warsaw 8 22 326-0100/22 326-0101 prochem@prochem.com.pl www.prochem.com.pl

10.6 8.6 7.3 22.9

18.6 22.2 32.4 36.0

186.0 127.0 183.0 380.0

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

Portico Project Management Sp. z o.o. i Wspólnicy Sp.k. ul. Gdaƒska 27/31, 01-633 Warsaw 9 22 560-4900/22 560-4910 office@portico.com.pl www.portico.com.pl

8.0 7.8 5.0 5.0

0.3 -

8.3 7.8 5.0 5.0

✓ ✓ ✓

✓ ✓ ✓ ✓

Managing Director

Simon Hindshaw

Con Murphy

Directors

President

Irvin E. Richter; Jacek ˚urawski; Grzegorz WiÊniewski Board Member; Managing Director; Project Director

✓ ✓

Biological and Chemical Research Centre for University of Special education center Warsaw (Warsaw); Faculty of (Dàbrowa Górnicza); “Ochota” Linguistics and Modern Center for New Technologies Languages for University of (CeNT I and CeNT II) for Warsaw (Warsaw); storage and University of Warsaw (Warsaw); transshipment of sulfuric acid Center of Clean Coal base for KGHM Metraco Technologies (Zabrze); (Szczecin); sewage sludge organization of wastewater utilization station in “Czajka” policy on Barycz wastewater plant (Warsaw)

✓ ✓

The Forest Opera modernization (Sopot); Interferie Medical SPA Hotel (ÂwinoujÊcie); educational pavilionfor AGH University of Science and Technology (Kraków); IKEA store extention and modernization (Kraków)

PZPN headquarters (Warsaw); radiopharmaceuticals production plant (Mszczonów); Megapolis residential complex (Kraków); Malachit Hotel modernization and Aquapark construction (Âwieradów Zdrój); office building on ul. Foksal (Warsaw)

WND WND

WND WND WND

WND 1998

Robert Pawlak; Aleksandra Wilczyƒska; Steven Davis None

Robert Pawlak

STOP.SHOP shopping malls (K´trzyn, M∏awa); Geronimo Martins Dystrybucja distribution center (Lubartów); S17 highspeed road Kurów-Lublin-Piaski; technical advice for GDDKiA; extension and modernization of Integrated Waste Management System (Pu∏awy)

3 1

10 20 6

34 2004

None AECOM Limited - 100%

Jaros∏aw Karpiejuk

President

AECOM Sp. z o.o. ul. Emilii Plater 53, 00-113 Warsaw 10 22 822-0051/22 822-0108 warsaw.europe@eacom.com www.aecom.com

6.5 3.2 3.4 1.5

-

6.5 3.2 3.4 1.5

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

Drainage of land for Arena Ba∏tycka stadium (Gdaƒsk Letnica); Geronimo Martins Dystrybucja distribution center (Sieradz); JP Morgan new office (Warsaw); John Deere Polska new training and marketing center (Tarnowo Podgórne); Waste Management Facility (Bielsko-Bia∏a Lipnik)

EC Harris Sp. z o.o.

An ARCADIS company ul. Królewska 16, 00-103 Warsaw 11 22 310-2222/22 310-2255 echwarsaw@echarris.com www.echarris.com

5.1(2) 11.6 10.5 9.9

WND WND WND WND

12.2(2) 22.1 21.0 19.7

✓ ✓ ✓

✓ ✓ ✓

✓ ✓

TK Maxx stores; CH Galeria TK Maxx stores; Logistics Centre Zamek TK Maxx stores; (Gliwice); Panattoni logistics Galeria (Lublin); Garaldia (Starachowice); center (Gliwice); Bumar Schindler Polska headquarters headquartes (Warsaw) (Warsaw)

4 3

11 24 12

40 1996

None EC Harris Holding - 100%

Marcin Klammer

Lemminkäinen Polska Sp. z o.o. ul. Marconich 11/3, 02-954 Warsaw 12 22 858-9837/22 642-7622 lemminkainen@lemminkainen.pl www.lemminkainen.pl

4.7 40.2 52.8 101.3

-

4.7 40.2 52.6 112.0

✓ ✓

✓

-

Suominen Production Plant Stora Enso Narew PM 5 paper Extention (Grodzisk Mazowiecki); mill (Ostro∏´ka); Telefonika Cable CARGOTEC The Multi Assembly Factory - preconstruction phase Unit (Stargard Szczeciƒski) (Bydgoszcz)

-

7 13 6

16 1996

None Lemminkäinen International - 100%

Eero Punovuori

Managing Director

Managing Director

Managing Director

THE LIST

OCTOBER 8-14, 2012

www.wbj.pl

27

Services

4.3 6.9 7.1 8.1

4.6 7.2 7.4 8.5

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

Adria residential complex (Warsaw); Wilga 7 residential building (Warsaw); POEMA residential building (Warsaw)

Karolkowa Business Park (Warsaw); Concept Tower (Warsaw)

22 9

6 2 1

28 1988

Mariusz Âcis∏o - 79.3%; Andrzej Bàkowski - 12.4% None

Mariusz Âcis∏o

Cushman & Wakefield Polska Sp. z o.o.

Pl. Pi∏sudskiego 1, 00-078 Warsaw NR 22 820-2020/22 820-2021 info.poland@eur.cushwake.com www.cushmanwakefield.com

WND WND WND WND

WND WND WND WND

WND WND WND WND

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

Galeria Mazovia interior design (P∏ock); Millennium Hall interior design (Rzeszów)

Plejada (Sosnowiec); Tate & Lyle (¸ódê); Galeria Neptun (Starogard Gdaƒski); Galeria Celtic (Legionowo); Galeria Bursztynowa (Ostro∏´ka)

9 2

2 1 -

130 1991

None WND

Richard Petersen

Gleeds Polska Sp. z o.o.

Pl. Bankowy 2, 00-095 Warsaw NR 22 531-2002/22 531-2003 gleeds@gleeds.com.pl www.gleeds.com

WND WND WND WND

-

WND WND WND WND

✓ ✓ ✓ ✓

✓ ✓

✓ ✓

Park Biznesu Teofilów (¸ódê); office buildings for Ghelamco Cosmopolitam (Warsaw); (Warsaw); Chung Hong Nimbus (Warsaw); Nowy Targ production plant (Biskupice undergroung parking (Wroc∏aw); Podgórne); Villa Parc residential Rua Bonita residential complex complex (Warsaw); Campanile (Kraków); logistics centers for Hotel, Premiere Class Hotel Panattoni (Wroc∏aw)

-

34 45 27

65 1992

None Gleeds Europe Holdings 100%

Tadeusz Jachowicz

JJM Sp. z o.o. ul. Ciechociƒska 26, 02-924 Warsaw NR 22 646-1883 /22 842-6125 jjm@jjm.com.pl www.jjm.com.pl

WND WND WND WND

WND WND WND WND

WND WND WND WND

✓ ✓

✓ ✓

✓ ✓

WND

Electric works investment supervision (Józefos∏aw); residential building (Piaseczno); technical supervision over Polservices office building construction; residential building (Warsaw)

1 1

2 8 8

11 1991

Marek Poncyljusz - 50%; Jerzy Poncyljusz - 50% None

Marek Poncyljusz

✓ ✓

Ergo Arena sports and entertainment hall (Gdaƒsk, Sopot); Farma Wiatrowa (Linowo); TSK Elektronica y Electricidad bioethanol factory (Kostrzyn nad Odrà); Oxygen office building (Szczecin); FACTORY Outlet Annopol (Warsaw); FUTURA Park (Kraków); Gdynia railway station reconstruction

Browar Lubicz office, residential and retail complex (Kraków); T1 transshipment station in Port Pó∏nocny (Gdaƒsk); EUROCENTRUM Office Complex (Warsaw); wind turbines (Pàgów, Laszki, Linów); Las Palm entertainment centre (Grodzisk Mazowiecki); Coca-Cola production plant extension

16 16

37 267 126

327 2006

None Tebodin - 100%

Petr Bilek

Rank

Document preparation for tenders / Tender management

Top local executive / Title

Foreign project authorization / Pre-investment / Architectural design / Investor representation

Ownership: Polish / Foreign

Land acquisition / Cost estimates / Feasibility studies / Investment supervision

Number of project Total Number of managers / number of architects / Number of employees / Number of construction Year licensed engineers / founded in architects Number of Poland licensed engineers

0.3 0.2 0.3 0.3

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

Revenue from Revenue from project management architectural design (z∏. mln) (z∏. mln)

Total revenue (z∏. mln)

2011 / 2010 / 2009 / 2008

FS&P Arcus Sp. z o.o. ul. Gen. Abrahama 12/11, 03-982 Warsaw 13 22 671-9525/22 671-1236 fsparcus@fsparcus.com.pl www.fsparcus.com.pl

Tebodin Poland Sp. z o.o. ul. TaÊmowa 7, 02-677 Warsaw NR 22 334-4111/22 334-4112 info@tebodin.pl www.tebodin.pl

WND WND 41.3 41.3

WND WND 18.9 24.2

WND WND 60.2 70.8

✓ ✓ ✓ ✓

Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was conducted in October 2012. Number of employees and ownership structure are as of September 2012. All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Footnotes: (1) Financial year: April 1 - March 31; (2) Financial year: May 1 – April 30

✓ ✓ ✓ ✓

Notable projects recently completed

Current projects

President

Managing Partner

Director

President

President

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

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.

28

MARKETS

www.wbj.pl

OCTOBER 8-14, 2012

Stocks report

world stock indices DJIA

NASDAQ

13,575.36 (Oct 4 close)

S&P500

3,149.46 (Oct 4 close)

0.66% (for the week)

FTSE100

1,461.40 (Oct 4 close)

0.41% (for the week)

DAX

5,827.80 (Oct 4 close)

0.98% (for the week)

0.84% (for the week)

Strong start, weak finish

NIKKEI225 7,305.21 (Oct 4 close)

8,824.59 (Oct 4 close)

0.21% (for the week)

-1.40% (for the week)

CHANGE: 9.50%

CHANGE: 18.90%

CHANGE: 14.43%

CHANGE: 2.24%

CHANGE: 20.24%

CHANGE: 3.09%

(year to Oct 4)

(year to Oct 4)

(year to Oct 4)

(year to Oct 4)

(year to Oct 4)

(year to Oct 4)

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: 11,051.10

52-week low: 2,441.48

52-week low: 1,150.26

52-week low: 5,075.20

52-week low: 5,366.50

52-week low: 8,135.79

Andrew Nawrocki WBJ market analyst Polish stocks opened last week with strong gains, as investors shrugged off unflattering economic data in Europe. The first day of October saw shares dip initially, with the blue-chip WIG20 losing close to half a percent within the first few hours of trading. Despite worse-than-expected industrial data in Poland being announced, shares managed to claw their way up by noon, helped partially by strong openings by other major indices. For the day, the WIG20 closed 1.2 percent higher, with financials Handlowy and PKO BP leading the way.

Last Tuesday saw less enthusiasm, with shares struggling to continue their gains. European indices opened much lower, with both the DAX and CAC40

Major indices WIG

43,840.23 (October 4 close)

WIG20

2,370.18 (October 4 close)

04.10

03.10

02.10

01.10

28.09

27.09

26.09

25.09

24.09

21.09

20.09

19.09

07.09

04.10

03.10

02.10

01.10

28.09

27.09

26.09

25.09

24.09

2,200 21.09

40,000

20.09

2,260

19.09

41,000

18.09

2,320

17.09

42,000

14.09

2,380

13.09

43,000

12.09

2,440

11.09

44,000

10.09

2,500

07.09

45,000

18.09

52-week low: 2,035.80

17.09

Change year to October 04: 8.02%

14.09

52-week low: 36,653.28

13.09

52-week high: 2,417.32

Change year to October 04: 14.41%

12.09

Change for the week: -0.24%

11.09

52-week high: 44,232.06

10.09

Change for the week: 0.18%

Top 5 BBIZENNFI IFCAPITAL ATLANTIS OPTEAM BOMI

Closing 0.23 0.46 0.31 3.99 0.25

% change (week) 52-week high 43.75 0.69 43.75 14.97 34.78 1.21 33.44 4.95 31.58 4.60

52-week low 0.13 0.29 0.18 1.54 0.18

Top 5 LOTOS KGHM BRE GTC BZWBK

Closing 32.73 153.00 321.40 7.60 236.90

% change (week) 5.68 2.07 1.71 1.60 0.38

52-week high 33.12 174.20 323.50 12.75 240.00

52-week low 21.30 102.40 233.00 5.13 207.80

Bottom 5 HBPOLSKA ADVADIS AGROWILL ALTERCO ASSECOSEE

Closing 0.02 0.05 0.56 0.72 8.40

% change (week) -33.33 -16.67 -16.42 -16.28 -15.55

52-week low 0.01 0.04 0.56 0.71 6.81

Bottom 5 POLIMEXMS CYFRPOLSAT BOGDANKA PGE PGNIG

Closing 0.79 14.30 121.80 17.99 4.00

% change (week) -10.23 -3.25 -2.87 -2.76 -1.72

52-week high 2.09 15.85 130.60 21.78 4.39

52-week low 0.46 12.25 100.90 16.72 3.61

52-week high 1.47 0.11 0.97 47.98 9.90

Currency report

The RPP and its mysteries

Other indices sWIG80

9,972.58 (October 4 close)

Change year to October 04: 15.90%

NewConnect

34.24 (October 4 close)

WIG-Banki

52-week high: 43.83

Change for the week: 0.19%

52-week high: 6,495.06

Change year to October 04: -17.47%

52-week low: 33.85

Change year to October 04: 13.91%

52-week low: 5,163.30

6,500

35.4

6,380

34.8

6,260

34.2

6,140

33.6

SOURCE: WSE

04.10

03.10

02.10

01.10

28.09

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

07.09

10.09

5,900

04.10

03.10

02.10

01.10

28.09

27.09

26.09

25.09

24.09

21.09

20.09

19.09

18.09

17.09

14.09

13.09

12.09

11.09

10.09

6,020 07.09

33.0

After the previous week’s small movements, last week the currency market was much more volatile. Major central banks didn’t shock market participants, but some macroeconomic data had an impact.

Jobs increased in the private sector in the US, while the ISM Services index increased. The EUR/USD rebounded from its monthly low of $1.28 all the way to $1.30. Further upward movements can be expected if Spain asks for financial aid and the ECB intervenes on the bond market (supporting the euro at the same time).

On the local market, we experienced what we can call a “shocking” decision. The Monetary Policy Council (RPP) – the rate setting arm of the National Bank of Poland – in its mysterious

6,314.38 (October 4 close)

Change for the week: -1.38%

36.0

Adam Narczewski X-Trade Brokers DM SA

04.10

03.10

02.10

01.10

28.09

27.09

26.09

25.09

24.09

52-week low: 8,604.31

21.09

18.09

17.09

52-week high: 10,536.29

14.09

07.09

04.10

03.10

02.10

01.10

28.09

27.09

26.09

25.09

24.09

21.09

9,200

20.09

2,200 19.09

9,360

18.09

9,520

2,240

17.09

2,280

14.09

9,680

13.09

2,320

12.09

9,840

11.09

2,360

10.09

10,000

07.09

2,400

13.09

52-week low: 2,076.52

12.09

Change year to October 04: 8.39%

11.09

Change for the week: 1.55%

10.09

52-week high: 2,561.94

20.09

2,373.93 (October 4 close)

Change for the week: 1.20%

19.09

mWIG40

losing close to 1 percent within the first hour of trading.

The WIG20, after a relatively volatile session ended the day flat, while shares on the small-cap sWIG80 saw hefty gains, pushing the index up by 0.85 percent for the day. The next day, despite strongerthan-expected macroeconomic data from across the Atlantic, Polish stocks opened much lower, with blue-chips losing nearly half a percent. Shares of TVN and Kernel were hit hard.

On Thursday, despite reiterated commitment from the ECB to preserve the euro, shares fell. Polish blue-chips were hit hard, shares of KGHM in particular – it shed 2.5 percent.

On Friday, the WIG finished up 1.56 percent while the WIG20 rose 1.73 percent. ●

ways, decided to keep interest rates unchanged at 4.75 percent, despite all the signs of an economic slowdown. It seems to me that politics are taking over rational decisions and that the RPP made a mistake by not cutting interest rates.

The reaction on the z∏oty market was immediate – the slightly depreciating z∏oty suddenly regained value. The EUR/PLN tumbled from its weekly high of z∏.4.12 all the way to z∏.4.09 and continued sliding to z∏.4.07 by the end of the week.

Similarly, the USD/PLN declined from z∏.3.20 to z∏.3.13. Further appreciation of the z∏oty is possible if the euro also strengthens.

Otherwise, we should expect a corrective movement and see higher z∏oty exchange rates this week. ●

currency rates 4.0758

4.0780

4.0302

02.10

03.10

04.10

05.10

4.0775 01.10

SOURCE: NBP

4.0950 28.09

0.1015

0.1012 05.10

3.8

3.9971

PLN-100JPY

4.5

04.10

0.1025 03.10

0.1024 02.10

0.1022 01.10

05.10

04.10

03.10

02.10

01.10

28.09

0.1028

3.3649

3.3768

3.4044

3.3982

3.4008

PLN-RUB

0.11

0.10

28.09

5.0997

5.0726 05.10

3.0

3.3925

PLN-CHF

3.5

04.10

5.1416 03.10

5.1436 02.10

01.10

5.1571 28.09

3.1646

3.1353 05.10

5.0

5.1384

PLN-GBP

5.5

04.10

3.1896 03.10

3.1833 02.10

01.10

3.1780 28.09

4.0933

4.0766 05.10

3.0

3.1809

PLN-USD

3.5

04.10

4.1202 03.10

4.1115 02.10

01.10

4.1138 28.09

4.0

4.1020

PLN-EUR

4.5

SPORTS

OCTOBER 8-14, 2012

www.wbj.pl

Motorsports

Tennis

Kubica wins another rally

Radwaƒska keeps third-place ranking The Pole reached the final of the Pan Pacific Open in Tokyo

sia’s Maria Sharapova in second (8,435) and Belarus’ Victoria Azarenka in first (10,095).

Ms Radwaƒska’s younger sister Urszula moved up four places to 32nd – a career high in the WTA rankings – after she reached the third round of the Tokyo event. David Ingham

SHUTTERSTOCK

Poland’s top tennis star, Agnieszka Radwaƒska, has maintained her grip on a topthree spot in the WTA rankings despite losing the final of

the Pan Pacific Open in Tokyo.

The 23-year-old Kraków native lost 6-0, 1-6, 6-3 to Russia’s Nadia Petrova, as she failed to retain the title she captured last year.

Ms Radwaƒska currently has 8,015 points in the race for the number-one spot, behind Rus-

29

The Polish driver is bidding to return to Formula 1 Polish racing driver Robert Kubica made another big step towards achieving his goal of returning to Formula 1 after winning the Citta di Bassano rally in northern Italy.

The 27-year-old won seven of the nine stages in a near flawless performance to

show Formula 1 team bosses that despite his injury problems, he still has the talent to compete at the very highest level.

The former BMW and Renault driver, who finished fourth in the 2008 Formula 1 championships told journalists, “I still have a long road in front of me. … But this shows the road is not as long as we thought.”

This was Mr Kubica’s third rally and second overall victory since his return to racing after he received horrific injuries, including a partially severed right arm, in a crash during the Ronde di Andorra rally in February 2011.

Following this latest win, the driver’s surgeon Igor Rosello said Mr Kubica is now 50 percent recovered.

David Ingham

DAILY EXECUTIVE DIGEST

SHUTTERSTOCK

Prior to his accident last year, Robert Kubica was a force to be reckoned with in F1

Agnieszka Radwaƒska has held on to third place in the WTA rankings

> Establishment of companies > Accounting services > Payroll and human resources > Law and notary offices > Payment recovery and debt recovery > Permits for foreigners > Seat for the company

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

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

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

BILANS Accounting and Consulting Company Ltd., 02-729 Warszawa, 195 Rolna st., tel. (+ 48) 22 212 86 27-29, mobile: (+48) 502 057 107 e-mail: Jacek@bilans.eu

30

LIFESTYLE

www.wbj.pl

Concert

OCTOBER 8-14, 2012

Exhibition

Irish rockers return Violent art?

The Cranberries October 14 Torwar, ul. ¸azienkowska 6a Warsaw

David Ingham

Hools Until November 11 Zach´ta Gallery ul. Ga∏czyƒskiego 3 Warsaw This fascinating new exhibition attempts to answer whether young artists can afford to be hooligans, and whether a fascination with damage or destruction is part of the path to revolutionary change or just an artistic strategy to improve popularity.

The objects, films and paintings in this exhibition are all arranged in a way that presents different degrees of tension, from those less controlled, such as impulsive aggression, to those that are more subtle, poetic or metaphorical.

“They create a feeling of threat and at the same time act on us magnetically. …

They are a demonstration of human strength in the battle with oneself,” a statement on

the gallery’s website reads.

The exhibition, curated by Katarzyna Ko∏odziej and Magdalena Komornicka, presents the work of artists including David Adamo, Olaf Brzeski, Klara Lidén, Joris van de Moortel, Ahmet Ögüt, Ariel Schlesinger, Konrad Smoleƒski, and Satoru Tamura.

David Ingham

For more information log on to zacheta.art.pl

Concert

Cinema sounds Film Music in Concert October 14 Sala Kongresowa Palace of Culture and Science Pl. Defilad 1 Warsaw COURTESY OF WIKIMEDIA COMMONS

Led by the distinctive voice of Dolores O’Riordan, Irish rockers The Cranberries carved out a niche for themselves in the 1990s mainstream music scene.

The 1993 single “Linger,” propelled the band to stardom and enabled their first album “Everybody Else Is Doing It, So Why Can’t We?” to go multi-platinum across the globe and in the process help the band crack the lucrative US market at their first attempt.

Their second album “No Need to Argue,” which contains the band’s biggest hit, “Zombie,” improved on the success of their debut, selling a remarkable 17 million copies worldwide.

Although big sellers, the next three releases failed to achieve the same success and in 2003 the band went on a hiatus to allow members to work on other material.

But after reforming in 2009, the group, which hails from Limerick, is back on tour to promote its sixth record, “Roses.”

The Cranberries lead singer Dolores O'Riordan

For more information log on to torwar.cos.pl

A must for film buffs, this concert sees music from a live symphony orchestra mixed with clips from some classic movies to bring famous soundtracks to life.

The majority of the music comes from Hollywood’s most famous composer, John Wil-

liams, who wrote the scores for almost 100 films, winning five Oscars in the process for soundtracks including “Jaws” and “Star Wars.” The concert's website bills the event as a celebration of Mr Williams’ “80th birthday year.” Mr Williams turned 80 this past February.

This performance, which will be conducted by Maciej Sztora, will see the Polish Symphony Ochestra perform classic musical arrangements from “Superman,” “Star Wars,”

“Jurassic Park” and “Forrest Gump,” among others.

In addition to music composed by Mr Williams, there will also be performances of scores from other acclaimed soundtrack composers such as Hans Zimmer (“Gladiator”) and James Horner (“Titanic”).

Tickets for the event are priced from z∏.49.

David Ingham

For more information log on to kongresowa.pl

LAST WORD

OCTOBER 8-14, 2012

www.wbj.pl

31

Tech Eye

COURTESY OF ACER

When Techeye was a lad, technology was for geeks, and geeks were for bullies to beat up. That was the natural order of things.

Normal people did not think cutting-edge technology like the Commodore 64, with its ginormous keyboard and arcane datasette, was cool.

Highly innovative inventions like “The SunSack,” a codpiece covered in solar cells that we personally designed back in high school, were ridiculed.

Then, somewhere along the

way, technology became a fashion statement, catching Techeye completely off guard. One day it wasn’t enough to love technology for its own sake – suddenly technology had to be aesthetically pleasing too. Just when we had finally lined up a financial backer to mass produce SunSacks.

But whatever. The world has changed and Techeye is changing along with it. No more high-tech undies. And we’re replacing our uglybut-functional netbook, the one that’s missing its “m” key, with something more svelte and less “m”asculated.

To that end, we’ve been looking at the latest ultrabooks – lightweight, high-end notebooks – to find something both fashionable and geektastic. One product line that fits that description is the

The Aspire S7

Aspire S7 series, which manufacturer Acer (Acer.com) has designed as a rival to Apple’s MacBook Air. The Aspire S7 is available in two screen sizes, 11.6 inch and 13.3 inch, both of which boast lithe aluminum unibody frames and full-HD touchscreens. The devices run Windows 8 and are powered by Intel i5 or i7 processors.

The larger model offers 12 hours of battery life; its smaller sibling offers nine hours. Other niceties include a backlit keyboard that senses (and adjusts to) the lighting in its environment, a reportedly efficient cooling system and a solid-state drive (up to 256 GB).

And how much will you pay for all of this dapper technology? Around $1,465 for an i5 version with 128 GB of SSD storage, which is more than you would pay for a comparably kitted MacBook Air. Samsung’s Series 5 Ultra Touch, meanwhile, is aiming more for the mid-market. This too is a Windows 8 device and it’s got a 13-inch (nonHD) touchscreen. As with Acer’s ultrabooks there are Intel

COURTESY OF SAMSUNG

Geeks, bullies and ultra-fashionable ultrabooks

The Series 5 Ultra Touch

chips inside, though your choice is between the i3 and the i5 (rather than the higher-end i7). As for storage, you get a 500 GB hard drive.

And that’s it. Oh, Samsung would probably blather on about “advanced engineering” or “powerful components,” but we’ve covered the important stuff. Pricing and availability?

Approximately $1,200, on offer from

late October.

In today’s world of well-heeled technology, either of these ultrabooks would be a good present for a geek or a bully. But for a bully looking to beat up a geek, the Aspire S7, with its aluminum unibody, would definitely be the bludgeoning tool of choice.

After all, the natural order of things hasn’t changed that much. ●

Ever used an expensive piece of technology as a weapon? 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

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