WBJ #15 2013

A decade of quality

Decline of democracy?

A special supplement on 10 years of CEEQA

A new report says that Poland’s democracy is “flawed,” and ranks it fifth-lowest in the EU

WWW.WBJ.PL

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VOLUME 19, NUMBER 15 • APRIL 22-28, 2013 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127

LOKALE IMMOBILIA

Since 1994 . Poland’s only business weekly in English

The pension ‘trap’ COURTESY OF COIMPEX

REAL ESTATE

COURTESY OF THE ISRAELI EMBASSY IN WARSAW

• Plac Defilad • M∏ociny makeover • Impexmetal’s towers 11-13

Finance Minister Jacek Rostowski says Poland’s open pension funds system amounts to a “trap.”

Business leaders beg to 3 differ

Historical perspective Israel’s ambassador to Poland talks about the 70th anniversary of the Warsaw Ghetto Uprising and the tangled politics of the Middle East 8

News . . . . . . . . . . . . . . . . . . . . . . .2-4 Business . . . . . . . . . . . . . . . . . . . .6-7 Interview . . . . . . . . . . . . . . . . . . . . .8 Finance & Economics . . . . . . . . . . .9 Opinion & Analysis . . . . . . . . . . . .10 Lokale Immobilia . . . . . . . . . .11-13 The List . . . . . . . . . . . . . . . . . . . . . .14 Markets . . . . . . . . . . . . . . . . . . . . .17 Sports & Lifestyle . . . . . . . . . . . . .18 Last Word . . . . . . . . . . . . . . . . . . . .19

REPORTER

In this issue

Monumental icon

Rising stock

While Polish officials paid their final respects to Margaret Thatcher, local authorities bickered over whether she should be honored in their cities

After 22 years of trade, the Warsaw Stock Exchange is making big moves to keep it ahead of the regional competition 7

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NEWS

www.wbj.pl

EP rejects carbon backloading law The European Parliament has voted against an intervention in the EU Emission Trading Scheme (ETS). The move, called backloading, would mean suspending auctions of 900 million CO2 emissions in 2013-2015, in order to raise their price. Polish MEPs are part of a group that opposed the proposal.

Poland’s energy sector is heavily dependent on coal. ●

z∏.2.25 billion is how much PKO BP has earmarked for its dividend on 2012 profits, which comes to z∏.1.80 per share.

z∏.1.5 billion is how much the budget will benefit from the recordlow yields on Treasury bonds, according to Finance Ministry estimates.

12

Senator and former Prime Minister W∏odzimierz Cimoszewicz about now-former Treasury Minister Miko∏aj Budzanowski in an interview with Polish Radio.

Figures in focus Working hard or hardly working?

Average work week in selected EU states (hours per week) 45 42.1 41

41.1

40.9

40.6

40.5

38.0 36.4

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Calendar

April/May APRIL 23 JEWELRY AUCTION Event:

Location:

Web:

Pieces of jewelry from art deco and other periods will go under the hammer. The pieces include many spring colors and flower themes.

DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw www.desa.pl

24-25 SPEED UPPP POLAND Event:

Location:

Web:

The Polish edition of the international “Speed upp” conference will enable public-private partnership players to discuss key issues and come up with solutions.

Palace of Culture and Science, Plac Defilad 1, Warsaw www.ippp.pl

APRIL 30-MAY 2 ANNUAL INVESTMENT MEETING Event:

AIM is an emerging markets FDI-focused

Location:

Web:

event that blends a trade fair with intellectual features aimed at enriching institutional, corporate and individual investors attending with a comprehensive set of guidelines for their future investment decisions in highgrowth regions.

Dubai International Convention and Exhibition Center, Dubai, UAE www.aimcongress.com

MAY 13-15 EUROPEAN ECONOMIC CONGRESS Event:

Location: Web:

The congress will feature a number of debates and meetings, featuring 6,000 guests representing Poland and other European countries, who will discuss the most significant matters of economic and social development in Europe.

Katowice www.eecpoland.eu

35.6

33

30.5

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Growth for all Lynn Forester de Rothschild, CEO of E.L. Rothschild and co-chair of the Henry Jackson Initiative for Inclusive Capitalism, says the the role of the private sector in achieving economic growth that benefits everyone has been neglected. Read more this week on WBJ.pl

* Highest in EU ** Lowest in EU

39.2

Un

On WBJ.pl

“He is a time bomb, you never know when it explodes and what it destroys.”

ug al

KW, JC

Quote of the Week

Por t

job. Within minutes of the news, PGNiG’s stock dropped by 1 percent.

Mr Karpiƒski will also have to continue with the rescue plan for the Polish stateowned airline LOT. It’s too early to tell if this change will affect the future of the troubled carrier, whose recently appointed CEO Sebastian Mikosz was hand-picked by Mr Budzanowski.

Mr Karpiƒski has been a Civic Platform member since 2001, and from November 2011 has been secretary of state in the Ministry of Administration and Digitization.

Between 2003-2005 he was management board member at chemical firm ZA Pu∏awy.

nd

ki about it. “Effective supervision and a full exchange of information are of key importance,” Mr Tusk explained after announcing his decision to dismiss Mr Budzanowski.

One of the first acts of his successor, Mr Karpiƒski, will be to make some changes at PGNiG. “The manner in which PGNiG’s management acted does not arouse my trust or confidence that these managers can guarantee effective protection of the public interest,” Mr Tusk said. “I will expect the new Treasury Minister to take quick and decisive action in the matter of PGNiG, including personnel decisions,” hinting that the gas giant’s CEO Gra˝yna Piotrowska-Oliwa might lose her

a

In a surprise move, Prime Minister Donald Tusk dismissed Miko∏aj Budzanowski from his post as Treasury Minister and appointed W∏odzimierz Karpiƒski in his place.

As the primary grounds for dismissal, the prime minister cited the government’s lack of knowledge about a memorandum signed between Polish pipeline operator EuRoPol Gaz and Russia’s Gazprom regarding a feasibility study for building a new gas pipeline across Polish territory.

A report prepared on the matter by Poland’s Ministry of Internal Affairs concluded that while state-run gas giant PGNiG’s management knew about the memorandum, it didn’t inform Mr Budzanows-

is the number of meat production units closed by Polish veterinary inspectors since the beginning of the horse-meat scandal.

aki

US senators have submitted a new bill to Congress that could pave the way to visa-free travel for Polish citizens.

The proposed law is based on the Jobs Originating through Launching Travel (JOLT) Act, which was submitted to Congress last year.

According to the proposal, the main criterion for acceptance into the US’s Visa Waiver Program would be a visa overstay rate below 3%. Poland would meet this criterion.

was Poland's annualized CPI inflation figure in March.

Po la

Poland closer to visa-free travel to US?

1%

Slo v

A group of utility company shareholders filed suit against the State Treasury last week, claiming that they have lost money in the process of consolidation of stateowned energy firms. In the process, their stakes were exchanged for shares in the newly formed utility groups, which they claim had a lower value than the original ones. The total value of the claims may reach z∏.250 million.

W∏odzimierz Karpiƒski

lga ria

Energy firm shareholders sues Treasury

Numbers in the News

Bu

Credit Suisse has announced that it will move its Polish stocktrading unit to London.

The move follows a steep decline in turnover on the Warsaw Stock Exchange in 2012. Credit Suisse is the third-largest broker on the WSE. The decision is part of the bank’s €4 billion cost-cutting program.

IN THE SPOTLIGHT

Gre e Cz ech ce* Re pu blic

Credit Suisse moves Polish stocks unit to London

APRIL 22-28, 2013

COURTESY OF WIKIMEDIA COMMONS

2

Source: Eurostat, Sedlak & Sedlak

Company index Acron ................................................6 Agroton ..........................................17 APA Kury∏owicz & Associates ......11 ArcelorMittal ..................................11 Art Norblin ....................................11 Asseco ..............................................8 Asus................................................19 Azoty Tarnów ....................................6 Bank Zachodni WBK........................9 BMW ..............................................11 Boryszew ........................................17 Burgundy AB ....................................7 Business Centre Club......................3 Cargill ............................................11 CBRE ..............................................13 CEE Stock Exchange Group ............7 Coimpex..........................................11 Creative ........................................19 Credit Suisse ....................................2 Dantex ............................................13 E.L. Rothschild ................................2 EBRD ................................................6 EmiTel ............................................11 Emmerson......................................13 Erste Group ......................................7 EuRoPol Gaz ....................................2 Gazprom ..........................................2 Ghelamco ......................................11 Giorgio Armani ..............................13 Google ............................................19 Greiffenberger................................11 Grove ..............................................11 Gucci ..............................................13 Hyundai Motor Poland ..................11

Impexmetal ....................................11 Jastrz´bska Spó∏ka W´glowa........17 JW Construction ......................11, 13 KGHM ........................................6, 17 KPMG..............................................13 Lanvin ............................................13 LC Corp ..........................................13 LG Electronics Polska....................11 LOT ..................................................2 Louis Vuitton ..................................13 Medicover ......................................11 Moody’s ............................................3 Nestle Polska ..................................6 NYSE Euronext ................................7 Okam ..............................................13 Oslo Stock Exchange ......................7 PGNiG ..............................................2 Pirelli ..............................................11 PKO BP ............................................2 PKS Kielce......................................12 Polnord ..........................................13 Retail Provider ..............................12 Sharp ..............................................19 TriGranit ........................................11 Warsaw Stock Exchange..2,6,7,11,17 Waryƒski Holding Group................13 Wolf Bracka....................................13 X-Trade Brokers ............................17 Yareal ..............................................13 Yves Saint Laurent ........................13 ZA Pu∏awy ....................................2, 6

NEWS

APRIL 22-28, 2013

3

www.wbj.pl

Pension funds

The pension polemic What’s at stake OFE in numbers (as of March 29, 2013) Number of OFEs

14

Number of OFE members

“The intellectual system that has underpinned the [open] pension funds has turned into rubble.”

COURTESY OF KPRM/FLICKR

A heated debate The discussion on the future payouts became particularly heated at the end of March, after OFE representatives announced a highly unorthodox proposal to replace lifelong pensions with a fixed pension payment period of 10-20 years with an option for the pensioner’s family to inherit the remainder of his or her savings. The idea was quickly denounced by politicians and economists.

At the beginning of April, Donald Tusk issued a warning to OFEs, saying that although there were no plans to shut down OFEs, they would not be maintained at all costs. He also stressed that it is ZUS and the state which can guarantee a safe pension plan and that, “open pension funds, despite their creators’ intentions, do not guarantee high pensions.”

Mr Tusk also vowed that the debate on the future of OFEs in Poland would soon be brought to an end.

Polish President Bronis∏aw Komorowski took a more conservative stance on changes to private pension funds. “I will be open to discussion, but I want to know what results the proposed changes will have not only for the next three years, but also in a 30-year perspective,” Mr Komorowski

Average three-year return (2010-2013)

16.636%

Minimum three-year return (2010-2013)

8.318%

said in a radio interview with radio station RMF FM. “I see a tremendous number of flaws that have been revealed in open pension funds,” he said, but stressed that any changes to the pension system should be introduced carefully, because “its main advantage was its relative stability, which is of great importance to future pensioners.”

Government propaganda?

The idea to transfer the money from OFEs to the payas-you-go system was also criticized by Leszek Balcerowicz, a former finance minister and the author of the market reforms that led to Poland’s transformation into a market economy in the 1990s. “The word ‘transfer’ suggests that the money will be treated the same way in the ZUS system as if they remained in the capital fund,” he said in an interview with TOK FM. “And, by nature, ZUS makes no savings. This money would stop being savings and would simply be used to plug the budget hole,” he added.

Mr Balcerowicz went as far as to call the government’s suggested changes “a grab of politically easy money” and in an interview with Rzeczpospolita warned that “the real goal of the whole campaign of discrediting OFEs is to take away people’s pension savings.”

Top Polish economists were equally prompt to censure both parties in the debate.

Professor Marek Góra, co-creator of the pension-fund reform, criticized OFEs for the controversial fixed-period payment proposal, calling it “an attempt to flush pensioners down the drain.” However, he also called the government proposal to transfer money back to ZUS a “dangerous solution,” which has no other purpose than to cover the cur- Cost-benefit analysis rent budget deficit.

Taking the money from OFEs At a conference on April is definitely safer, politically 15, a group of economists and pension-fund experts debated the Finance Ministry’s proposals.

“An earlier transfer of funds from OFEs to ZUS is a loan, however, it’s – Former Finance Minister not a voluntary loan, but a forced Leszek Balcerowicz one,” said professor Stanis∏aw Gomu∏ka, chief economist at the Business Centre Club (BCC) an employers’ advocacy group. He added that the money “would be spent immediately on current pension payouts.”

speaking, than doing away with the pension privileges that certain social groups, such as miners, farmers or uniformed services, have acquired over the past 20 years and which cost some z∏.20 billion a year, economists from the Business Centre Club wrote in a statement.

And the deficit in the pension scheme is no trifle, either.

“The deficit in the social pension fund has been forecast at z∏.52.4 billion in 2013, and no less than z∏.360 billion in the period 2013-2017,” economists from BCC wrote.

The cost-benefit analysis is not as easy as it may seem, though. The government plans may have dire repercussions, both long-term, when the system has to pay pensions to a disproportionally large group of retirees in some 20-30 years; and also short-term, if it results in the country’s credit rating being lowered.

Jaime Reusche, Moody’s chief analyst for Poland, warned in an interview with Reuters that if Poland should move the assets, even partially, from the private OFEs to the state social security system, the agency might consider lowering Poland’s rating, since the move would indicate the country was shifting away from businessand market-friendly policy.

However Mr Reusche quickly backed away from those statements a few hours later in a separate interview

with the state-owned press agency PAP, saying that the government’s proposals would have a positive influence on public finances in the short term, and that only a full, forced nationalization – which the government isn’t proposing – would be negative. The Finance Ministry declared that it was “satisfied” with his statements in that interview.

Many investors would see transferring funds from OFEs to ZUS as similar to what the Hungarian government did in 2011 when it dismantled the private pension system. Currently, ratings of countries which have nationalized their pension systems are below investment levels, Mr Reusche warned in the original interview, naming Hungary, Argentina and Bolivia as examples of the route Poland should not take.

There are, however, those who believe that “investors might accept such a solution with composure, as it will not increase the amount of public debt,” Marcin Mazurek, a senior analyst from BRE Bank told WBJ. He added that the ministry’s proposal was a feasible solution, since “it will enable the finance minister to circumvent legislative limitations of exceeding the public debt threshold. Shifting some z∏.10-15 billion of assets from OFEs to ZUS would give the budget exactly how much it is Beata Socha missing.”

“Money [transferred from OFEs to ZUS] would stop being savings and would simply be used to plug the budget hole.”

COURTESY OF BALCEROWICZ.PL

For weeks now an intense debate on the future of open pension funds (OFEs), has gripped Poland’s financial and economic circles. Poland’s entire pension system, which is currently being reviewed by the Finance Ministry, is at stake.

Particularly harsh words came from Jacek Rostowski, Poland’s deputy prime minister and finance minister, who said that “the intellectual system that has underpinned the [open] pension funds has turned into rubble,” in an interview with radio station TOK FM last week. “We need to find a way to lead Poland out of this trap,” he added. He however denied accusations that the government plans to do away with privately managed pension funds entirely.

Since its reform in 1999, Poland’s pension system has been composed of a state-controlled Social Insurance Institution (ZUS) and privatelymanaged open pension funds that receive part of employees’ pension contributions each month.

Now, as the first batch of pensioners covered by both the pay-as-you-go ZUS and private OFEs are to start receiving payments next year, the government has to decide how and which institution will pay out pensions from OFEs. Several options are being considered. Pensions could be paid out by OFEs themselves,

by ZUS or by another agent, for example insurance institutions or a new public fund.

The government, based on

a recommendation from the Labor Ministry, would like to see the assets from pension funds gradually shifted from OFEs, which have accumulated z∏.270 billion since their conception in 1999, to the state-controlled ZUS some 10 years before a person’s retirement. Such a move would bring some z∏.40 billion to the state budget in the first year alone. The government may also reduce or entirely scrap fees private funds charge for contributions.

z∏.269.6 billion

Source: Polish Financial Supervision Authority

– Finance Minister Jacek Rostowski

The government wants to “transfer” some private pension fund money to state coffers, but business leaders warn it would only be a short-term solution

16,216,895

Value of OFE assets

4

NEWS

www.wbj.pl

APRIL 22-28, 2013

70th anniversary of Warsaw Ghetto Uprising observed Polish President Bronis∏aw Komorowski, Prime Minister Donald Tusk, Mayor of Warsaw Hanna Gronkiewicz-Waltz, other dignitaries, representatives of Jewish communities and former insurgents honored the victims and the survivors of the Warsaw Ghetto Uprising last Friday, on the 70th anniversary of the beginning of the revolt. “Warsaw is the only city in the world that stood-up to Nazi occupiers three times. First in September of 1939, second in April of 1943 during the Ghetto Uprising and finally in September of 1944 when the Warsaw Uprising started,” said Mr Komorowski in his speech at the foot of Warsaw’s Monument to the Heroes of the Ghetto. The Warsaw Ghetto Uprising is a symbol of Jewish resistance against the Nazis during World War II. The month-long revolt ended on May 16, 1943, and claimed 13,000 Jewish lives, while thousands of survivors were captured and sent to concentration camps, where they were murdered. ●

A contested legacy Polish officials paid their last respects to Ms Thatcher, as local authorities debated how to honor her memory Former Polish president and Solidarity icon Lech Wa∏´sa, Prime Minister Donald Tusk, Finance Minister Jacek Rostowski and Foreign Minister Rados∏aw Sikorski were among 2,300 people from 170 countries who attended the funeral of the former British Prime Minister Margaret Thatcher last week.

Ms Thatcher, dubbed the “Iron Lady” for her uncompromising leadership style, has been praised by Polish politicians for her role in helping to

bring down communism. Mr Sikorski even wrote on his Twitter account that she “deserves a statue in Poland.”

But while government officials were united in their praise of Ms Thatcher, local authorities were divided. Politicians from the Law and Justice party in the Tri-city region proposed that a street be named in her honor. The idea was supported by local Civic Platform politicians. Ms Thatcher visited the Tri-city area, birthplace of the Solidarity movement, in both 1988 and 2000.

However, local politicians from leftist parties and representatives of the Solidarity labor union were strongly opposed. Piotr Duda, leader of the Solidarity union, said, “Ms Thatcher, despite her role in

fighting communism, was insensitive to social outcries.

That’s why I’m against the idea.” Andrzej Ró˝aƒski, a local Democratic Left Alliance (SLD) leader asked, “In the birthplace of Solidarity, should we really honor someone who thwarted workers’ unions in her own country?”

In Warsaw, local authorities for the Civic Platform party suggested a roundabout in central Warsaw be named after Ms Thatcher, though SLD politicians were hoping to name the same roundabout after Edward Gierek. Mr Gierek was first secretary of Poland’s communist party from 1970-1980.

As WBJ went to press, it seemed a compromise solution had been reached to

SHUTTERSTOCK

COURTESY OF JEWISHMUSEUM.ORG.PL

Margaret Thatcher

Will she have a statue in Poland? name the roundabout after the railway station nearby.

Mr Sikorski has suggested that a statue of Ms Thatcher be erected just outside the Hala Mirowska marketplace

in central Warsaw, not far from the contested roundabout. Ms Thatcher visited Hala Mirowska during her trip to Warsaw in 1988.

Jacek Ciesnowski

Political systems

Polish democracy scores low in new ranking A recent study calls Poland’s democracy “flawed” and ranks it below that of TimorLeste The quality of Poland’s democracy ranks fifth-lowest in the EU, above only Latvia, Hungary, Bulgaria and Romania, according to the latest Democracy Index, a regular report published by the Economist Intelligence Unit.

The index ranks 167 countries and their political systems based on five criteria: electoral process and pluralism, civil liberties, the functioning of government, political participation, and political culture.

Poland scored high in the

first two categories: 9.58 and 9.12 respectively (out of 10 maximum points), but its score in the other categories dragged down its ranking.

Poland’s score was especially low in the category of political culture, at 4.38. It received a score of 6.11 in the political participation category and 6.43 in the functioning of government category.

Overall, Poland earned a score of 7.12, the same as last year, putting it in 44th place, tied with Brazil and behind countries such as Timor-Leste (43), Jamaica (39), and Costa Rica (22).

With the exception of the Czech Republic (ranked 17th), which claimed a spot in the top

“full democracy” tier of countries, all of Poland’s EU peers in the Central and Eastern Europe region were also placed in the “flawed democracy” tier.

The study’s authors blame the “flawed” state of democracies in the CEE region on the changes most of the countries had to implement to join the EU. “That transition has resulted in a large stratum of discontented voters who feel that they have lost out,” the report reads.

“Another problem in the region is that party politics is fragmented, primarily reflecting the shallow roots of many parties and low voter identifi-

cation with parties. Once [EU] accession was achieved, and politics reverted to ‘natural’ antagonistic patterns, the

underlying fragility of eastcentral European political systems was exposed.”

Jacek Ciesnowski

Democracy Index 2012 Rank

Country

Overall Score

1.

Norway

9.93

2.

Sweden

9.73

3.

Iceland

9.65

14.

Germany

8.34

16.

United Kingdom

8.21

21.

United States

8.11

28.

France

7.88

42.

Lithuania

7.24

44.

Poland

7.12

122.

Russia

3.73 Source: Economist Intelligence Unit

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BUSINESS

www.wbj.pl

APRIL 22-28, 2013

Commodities

SHUTTERSTOCK

Treasury sells its stake in Metals prices sink, hurting KGHM and WSE Azoty Tarnów to EBRD

The price of copper sank to an 18-month low last week

With prices of most commodities falling drastically, copper and silver miner KGHM’s stock has plummeted China, one of the world’s largest consumers of commodities, released weaker-than-expected economic growth figures of 7.7 percent against expectations of 8 percent growth last week. The news sent commodities prices tumbling, with oil, soybeans, corn and wheat all seeing drops.

Copper and silver were no

exception, dropping at various points to 18- and 30-month lows respectively.

The drop in prices of those two metals took a significant toll on shares of Poland’s KGHM, one of the world’s largest miners of both. The company’s stock price lost some 10 percent last week.

This year alone, KGHM shares have dropped an eyewatering 27 percent. The other reason for the steep drop is a recently introduced “mining tax,” which according to estimates, will cost KGHM

z∏.2 billion this year alone.

Thus far KGHM’s management has been playing it cool.

“We do not plan to change our budgetary estimates or revise our forecast for 2013, since the first quarter was in line with our expectations,” the company’s CEO Herbert Wirth told Reuters.

Not all investors share Mr Wirth’s calm. KGHM’s shares comprise 15 percent of the valuation of the Warsaw Stock Exchange’s WIG20 index, which lost 3.44 percent this Jacek Ciesnowski week.

Poland’s State Treasury sold 12.1 percent of its stake in chemical conglomerate Azoty Tarnów to various investors, including 5.75 percent to the European Bank for Reconstruction and Development (EBRD) for z∏.296.4 million.

“Our involvement aims at actively promoting and supporting the privatisation process of the company,” Lucyna Staƒczak, EBRD director for Poland, said in an e-mailed statement.

“Poland has taken decisive action to consolidate the chemical sector and the next step now must be to make the players fit to compete on the global market,” she added.

“EBRD will use its stake to pay special attention to the restructuring of the company and the introduction of best corporate governance standards.”

According to sources quoted by news agency Reuters prior to the deal, the move was aimed at blocking Russia’s Acron from increasing its holding in the Polish company.

Recently, Acron announced that it had raised its stake in Azoty Tarnów to 12.9 percent and that it would continue to buy shares. It also suggested a strategic partnership between the firms.

The EBRD is obliged not to sell the stock for the next

12 months and the Treasury will have preemptive rights to buy them back.

The Treasury needed to sell a 12 percent stake by April 24 in order to cut its share below 33 percent.

Otherwise it would have been legally bound to increase its stake to 66 percent, something the government wanted to avoid considering budget constraints.

The Treasury stake in Azoty Tarnów had increased to 45 percent as a result of the company’s merger with ZA Pu∏awy, which began last year and was completed early this year.

KW, JC, AK

Nestle Polska to invest z∏.164 million in 2013 This year, Nestle Polska plans to invest z∏.164 million to further develop its production potential, company officials announced, adding that the company wanted to develop faster than the fast-moving consumer goods (FMCG) market in Poland.

“We have nine plants and we want to further develop them. This year we will invest z∏.164 million to modernize them,” Nestle Polska board member for financial affairs Chandra Kumar said.

In 2012 Nestle Polska recorded sales revenues of

z∏.3.5 billion, up from z∏.2.7 billion in 2011. According to the company, the FMCG market in Poland grew by some 6.7 percent year-on-year in 2012.

Nestle inaugurated its operations in Poland in 1993 and currently its nine plants AS employ 5,100 people.

BUSINESS

APRIL 22-28, 2013

Stock exchange

MATEUSZ GO∏ÑB/WBJ

2013 turning out to be a big year for the WSE

The WSE wants to hold onto its position as regional leader

The Warsaw Stock Exchange has just implemented a new trading system, and talks have begun on a potential merger with its biggest regional peer On April 16, 1991 history was made in Poland: the first trading session on the newly opened Warsaw Stock Exchange began. While that day was historic, it was a rather slow one in terms of trade turnover, at least by modern standards. On the first day only five companies were listed, and the total value of trade was some $2,000. Today, 437 companies are listed on the main market of the WSE and days with more than z∏.1 billion in turnover are not uncommon. By market capitalization, the WSE is the biggest bourse in the CEE region.

Looking ahead Last week saw the 22nd anniversary of that historic day, and was groundbreaking in its own right. On April 15, the WSE finally implemented its new trading system, the Universal Trading Platform (UTP), which it obtained in a partnership with NYSE Euronext. The new platform is faster, more secure and can handle more operations. The WSE’s management hopes it will lure both investors and companies.

According to information from various brokerages, as many as 50 new companies may enter WSE this year. A poll by ISBnews recently found that brokers were working on 36 IPOs, while 19 companies are looking to make the

move from the NewConnect alternative market to the WSE’s main market. While not all of those companies may end up listing this year, the number of IPOs still looks set to beat last year’s paltry figure of 19, the lowest number since 2009.

Revolution and evolution But the introduction of the new trading platform may not be the only major change coming to the WSE this year. In April, it began preliminary merger talks with the CEE Stock Exchange Group (CEESEG), which owns Wiener Börse, the stock exchange in Vienna, as well as several other regional exchanges including the Budapest and Prague bourses.

Up till now CEESEG has been a regional rival, and officials on both sides are emphasizing that talks are at a very early stage and will not necessarily result in a deal.

Nevertheless, the move has mostly been received positively by the market. “I’m completely in favor,” said Andreas Triech, CEO of Erste Group in an interview with German television station DAF. “I’m in favor of creating a big trading center for Central and Eastern Europe and I believe Warsaw would be a very good place,” he added. Erste Group is the second-largest shareholder in Wiener Börse.

Those statements seem to imply that if the talks do indeed result in merger, the Warsaw side would take the lead. WSE CEO Adam Maciejewski confirmed that was the type of arrangement the Warsaw bourse was looking for. “The cooperation with the Vienna bourse may go according to almost all options

except the one in which the Vienna bourse takes over the Warsaw bourse,” he told the media last week.

Officials have said that the reason for this is that Warsaw is a bigger stock exchange than its Austrian peer. However, the Wall Street Journal quoted a source as claiming that CEESEG’s shareholders are looking to exit their investment, and prefer selling to Warsaw than to Istanbul or Moscow.

Combining the two exchanges would create a regional powerhouse – Warsaw had a market capitalization of some €128.5 billion, while CEESEG’s was €123.9 billion. Nevertheless, it would still pale in comparison to the major European exchanges.

The Frankfurt Stock Exchange’s market capitalization at the end of March was €1.16 trillion.

Defending its turf The potential merger might be the only possible way for WSE to continue to grow. “Stock exchanges are fully aware that engaging in M&A activity is a way to deal with current market conditions and the economic backdrop,” said Peter Lenardos, analyst at RBC Capital Markets in an interview with Financial News, adding that, “a potential merger would help to keep these markets on the radar of institutional investors.”

Indeed, regional competition for the Warsaw Stock Exchange is heating up. In 2012 the Russian MICEX and RTS exchanges merged to create Moscow Exchange. Early this year, the Oslo Stock Exchange acquired the Swedish-based trading platform Burgundy AB. Jacek Ciesnowski

www.wbj.pl

7

8

INTERVIEW

www.wbj.pl

APRIL 22-28, 2013

Polish-Israeli relations

Common history WBJ sat down with Zvi Rav-Ner, Israel’s ambassador to Poland, to talk about the 70th anniversary of the Uprising in the Warsaw Ghetto, the Museum of the History of the Polish Jews in Warsaw, political and economic PolishIsraeli relations, as well as Israel’s role in the Middle East and its attitude towards talks with the Palestinians

Do you agree that the Museum of the History of the Polish Jews, a part of which will open for the anniversary of the Uprising, is a lasting testimony and material proof of our common history?

Yes, it will be a unique museum, just as the history of the Jewish community in Poland is unique. Its origins date back 900 years. For many centuries Poland had the biggest Jewish diaspora in the world. Before World War II there were 3.5 million Jews living in Poland and they contributed to the development of the country, its culture, intellectual life and also filled the ranks of the Polish army. Let’s not forget that some of the 1,800 officers

murdered in Katyƒ by the Soviets were Jewish.

The museum will not only tell the story of how the Jews died, but also how they lived.

It will not be like the Shoah museum. While the Warsaw Ghetto Uprising will be welldocumented, the museum in Warsaw will also present other aspects of the life of Jews in Poland: their customs, religion, intellectual life, all of which contributed to the colorful fabric of Jewish and Polish history.

We see the creation of such a museum not only as a great achievement for Poland but also as an important contribution to the better understanding of the history of Jews and as such, the museum will have an important place on the European and global cultural map.

COURTESY OF THE ISRAELI EMBASSY IN WARSAW

Ewa Boniecka: The 70th anniversary of the Warsaw Ghetto Uprising has just been observed. How important is this date for Israelis?

Zvi Rav-Ner: This anniversary of the uprising is very important for Israeli society. Most of the survivors of the Warsaw Ghetto Uprising live in Israel, such as Szymon RatajzerRotem, whose call sign was “Kazik,” and who was invited by president Bronis∏aw Komorowski to take part in the commemorations in Poland.

While the date of the beginning of the Uprising is April 19 in Poland, according to the Jewish calendar it is on Holocaust Day and it changes from year to year. This year it was commemorated on April 8. But the Israeli minister of education came to attend the commemoration ceremonies in Poland.

Our countries share the common history of this heroic Jewish uprising against Germans occupying Poland during World War II. Hundreds of events were organized to commemorate this anniversary in Poland, such as performances of the Israeli Philharmonic Orchestra, ceremonies on ul.

Prosta in Warsaw, where, after the fall of the Uprising, its survivors led by Marek Edelman and “Kazik” came out of the Ghetto.

I know that hundreds of Poles and guests from Israel participated in those celebrations, which are also very important for the Jews living in other countries.

“We consider Poland to be one of our best friends in the European Union.”

Zvi Rav-Ner, Israeli ambassador to Poland How do you see the relations between Poland and Israel?

The relations between our states are very good. We have common values, we pursue democratic principles in the international arena. We consider Poland to be one of our best friends in the European Union and both our countries have close relations with the United States.

Israel is not a member of

East is, of course, very complicated. Unfortunately the socalled “Arab Spring” has not led to democracy and those events did not change the hostile attitude of Arab countries towards Israel.

We are hoping for that to change, but instead we see instability in almost all Arab countries. Such an atmosphere leads to extremism. Where

“Polish-Israeli economic cooperation is developing and shows the capacity for growth on both sides.”

NATO, but we have a special security arrangement signed with it. Israel and Poland also maintain military cooperation.

While I cannot delve into details, I will mention the joint production of missiles based on Israeli technology. We conducted joint military exercises last year in Israel. We have a common view on the fight with international terrorism and we feel great appreciation for what the Polish forces were doing in Afghanistan, fighting against terrorism.

How do you see the present developments in the situation in the Middle East and Israeli policy in the region?

The situation in the Middle

governments are weak, the power of extremists and AlQaeda is growing.

We think that the regime of Bashar al-Assad in Syria should come to the end, but we worry who will replace him and whether Al-Qaeda operatives would become part of the next regime. But Israel cannot and does not want to be involved in any internal developments in Arab countries, so in the face of that great instability around us, Israel remains an island of democracy and responsible policy.

And in our view it is very important that in the face of the current chaotic internal developments in Arab countries, Israel and the West lead

a responsible policy, analyzing the changing situation in the Middle East.

During his visit to Israel, President Obama, while confirming the US-Israeli strategic and military partnership, also stressed that Palestinians should have their own state.

Is there any chance for resuming the dialogue between Israeli and Palestinian leaders?

We agree on the establishment of the Palestinian state and we think that it’s the only solution that could bring peace. We would like to resume talks with Palestinians without any preconditions, even on subjects such as the status of Jerusalem. But Palestinians do not agree to it.

As many as 90 percent of members of our parliament agree that we should renew negotiations without any preconditions. Even the rightwing leaders in Israel think that peace has its price and we are ready to pay the price.

I want to point out that 8,400 Jewish settlers were removed from Gaza in 2005, which was politically very difficult for us. Those people are still angry and they still have no permanent homes. And what did we get in return?

Nothing. Hamas still carries out attacks. Last November they fired thousands of mis-

siles onto our territory.

Fortunately, we have an anti-missile defense system, otherwise we would have had tragedy in Israel. As far as the international pressure for renewing talks with Palestinians, the only power which can do something is the United States.

We have the deepest respect for the European Union, but honestly we do not see the possibility of EU being a mediator in the Middle East.

The EU is helping the Palestinian Autonomy economically, otherwise it would not survive, that is all. So the visit of President Obama was good for Israel, he developed good rapport with ordinary people and confirmed the American role in pursuing peace, which is so vital to us.

Despite the political relations between Poland and Israel being good, our trade exchange is relatively modest.

Mutual trade is indeed relatively modest, reaching the value of $653 million per year, but our economic ties are developing. Polish companies are starting to invest in Israel, a good example of which is Asseco, Poland’s biggest IT firm, which now owns two Israeli companies. And while Israel is a world leader in this field of technology, the Polish company shows a real zeal to

form partnerships with Israeli companies, in order to expand further on international markets. I’d say that Polish-Israeli economic cooperation is developing and shows the capacity for growth on both sides.

Let me mention the less pleasant side of the Polish-Jewish relations. We know that antiSemitic incidents occur in Poland. Those events are condemned by most of Polish society and the offenders are punished, yet they still occur.

How you see it?

There are some disturbing anti-Semitic incidents in Poland on occasion. The recent interview with professor Krzysztof Jasiewicz, in which he claimed that Jews themselves were responsible for the Holocaust is one such example. It is disgusting. But I think that the anti-Semitic posters or slogans exposed in stadiums are not important, although maybe government services should be more active there and punish offenders.

In my opinion, however, the most important in eliminating such attitudes is education. And a lot in that matter is being done in Poland, by the Catholic Church, among others. Its leaders say that antiSemitism is a sin and Pope John Paul II called Jews “the older brothers of Catholics.”

So I think that in Poland anti-Semitic incidents are marginal, while in France, for instance, there is a real problem of acts of violence against Jews.

The problem of restitution of former Jewish property in Poland has not been resolved yet. These cases, when they end up in court, take years to be reviewed. How should it be handled?

Well, this is a Polish legal problem. Of course, there are many thousands of Israelis, as well as other people, who have such claims and I listen to both sides. But I would not say that a special law for Jewish claims should be passed in Poland.

There had been some attempts to do that, but they didn’t come to fruition.

I know the costs of compensation will be high, and many cases would be legally complicated, but a law regulating these matters should be passed, a law that would include everybody, not just Jews. I hope that Poland will continue its dialogue with Jewish organizations in order to find the best solution for everybody. Justice needs to be done. ●

FINANCE & ECONOMICS

APRIL 22-28, 2013

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9

Interest rates

Policy makers sharply divided on rate cuts One says wait till July, the other says cut 125 basis points from current levels Two recent interviews of members of Poland’s Monetary Policy Council (RPP), the National Bank of Poland’s interestrate setting body, showed a deep divide in the council about whether or not to cut interest rates further.

In early April, the council

left its benchmark rate unchanged at 3.25 percent, a record low. But that came after five months of cuts – of 25 basis points each for four months starting in November and a surprise cut of 50 bp in March – as the economy and inflation slowed.

In an interview with Bloomberg, RPP member Adam Glapiƒski said the council should wait until June at the earliest before potentially

resuming interest rate cuts because it needs to “better assess” the prospects for economic recovery.

“The pause before we potentially move to another cycle of rate cuts should last at least a quarter, ideally until June or even July,” Mr Glapiƒski said. “Interest rates are already at historic lows and cutting them further would be an unconventional step,” he added.

However, his view is in sharp contrast with that of another council member, Andrzej Bratkowski. Mr Bratkowski told Dow Jones Newswires that expectations of an economic rebound in the second half of the year were “wishful thinking,” and that the RPP should therefore cut by a further 125 basis points – and should start with a 50bp cut in May. “If output, employment

and wage data due in the coming days do not show signs of recovery, then there is no reason to wait,” Mr Bratkowski said. After his statements were made, Poland’s statistics office reported that wages had grown in March by 1.6 percent yearon-year – a slower pace than economists had expected.

Mr Bratkowski added that postponing rate cuts until the second half of the year was not a good idea. “Cutting rates in

the second half of this year with a view to a recovery sometime in 2014 would be odd,” he said, explaining that decisions are now “all about the real economy,” rather than inflation.

Even so, inflation has slowed significantly in the past few months to well below the central bank’s target of 2.5 percent. In March it fell to 1 percent (see accompanying story).

AS, AK

Poland’s inflation falls to 1% in March

AS

Steep drop Poland’s CPI inflation rate, March 2011-March 2013

5.5 4.4 3.3 2.2 1.1 0.0

Source: Central Statistical Office

target, or even below 1 percent in the medium term – which can be the case – then room for further cuts will become larger,” said Monetary Policy Council Member Anna Zieliƒska-G∏´bocka after the figures were reported.

BZ WBK economists said that inflation will continue to decline in the coming months (down to 0.7 percent) due to the high base effect from the previous year. “The situation may reverse in the second half of the year,” they said.

r. ’ 1 Ap 1 r. ’ 11 Ma y ’1 Jun 1 . ’1 1 Jul . ’1 1 Au g. ’1 Se 1 p. ’11 Oc t. ’ 1 No 1 v. ’ 1 De 1 c. ’11 Jan . ’1 Feb 2 . ’1 Ma 2 r. ’ 1 Ap 2 r. ’ 12 Ma y ’1 Jun 2 . ’1 2 Jul . ’1 2 Au g. ’1 Se 2 p. ’12 Oc t. ’ 1 No 2 v. ’ 1 De 2 c. ’12 Jan . ’1 Feb 3 . ’1 Ma 3 r. ’ 13

ing-related expenses rose by 1.9 percent. Telecommunications prices fell by 7.3 percent y/y, while clothing and footwear prices fell by 5.2 percent.

Economists from Bank Zachodni WBK said that “the current data [on inflation] should be neutral ... from the monetary policy point of view.” Other experts say, however, that if inflation continues to slow, it will add pressure on policy makers to resume cutting interest rates.

“If it turns out that inflation runs considerably below the

Ma

Poland’s consumer price index (CPI) inflation rate slowed in March to 1 percent on an annualized basis, and 0.2 percent month-on-month, the Central Statistical Office (GUS) said. The figures marked Poland’s slowest price growth in seven years, and were lower than analysts’ expectations. Economists surveyed by the Polish Press Agency had expected the figure to come in at 1.1 percent y/y and 0.3 percent m/m.

Prices of food and energy rose the most, by 2 percent y/y, while the prices of hous-

10

OPINION & ANALYSIS

www.wbj.pl

APRIL 22-28, 2013

SHUTTERSTOCK

What’s stopping Europe?

Allan H. Meltzer

On

a recent visit to Greece, French President Francois Hollande declared that Europe’s decline was over, and urged French companies to invest in Greece. Bad advice. French production costs are high, but Greek costs are higher. Despite the considerable decline in Greek (and Italian and Spanish) real GDP since 2007, adjustment is far from complete.

In fact, one would be hardpressed to find broad agreement with Mr Hollande’s assessment anywhere in Europe. Before the recent Italian election, financial markets showed signs of optimism, encouraged by the European Central Bank’s policy of guaranteeing euro zone members’ sovereign debt, expanding its balance sheet, and lowering interest rates.

Bondholders gain when interest rates fall. But unemployment continues to rise in the heavily indebted southern countries, and output continues to lag behind Germany and other northern European countries.

Cost differences The main reason for the lag is not simply low demand or large debts.

There is a vast difference between unit labor costs – real wages adjusted for productivity – in Germany and in

the heavily indebted southern countries. When the crisis began, production costs in Greece were about 30 percent higher than in Germany, so Greece exported very little and imported very much. Production costs in other heavily indebted countries were 20-25 percent higher than in Germany.

“A monetary union would require enforceable fiscal and banking rules. But such rules were never adopted.”

Growth will not resume until production costs in the indebted countries decline, which requires either a substantial permanent increase in productivity, a reduction in real wages, or both. While some adjustment has occurred, much of the change is not permanent. Austerity reduced the number of employed workers, particularly those with low skill and productivity levels. But gains in measured productivity growth from this source are not permanent changes, so a large part of the report-

ed reductions in unit labor costs are temporary.

Indeed, major cost differences remain. In Greece, the private sector has been forced to adjust, but the government failed to keep its promise to reduce public employment.

That will prolong excessive government spending, and deficit targets will not be met on a sustained basis.

Large reductions in public-sector wages brought down the primary deficit, but employment maintenance lowers productivity, raises costs, and delays adjustment.

In Italy, former Prime Minister Mario Monti’s government undertook some reforms, but it continued to support unions and corporate monopolies. And Italy’s parliament rejected many of Mr Monti’s proposed reductions in government spending. Labor and many product markets remain closed, despite the urgent need to increase competition, lower production costs, and raise productivity.

After five years of slow growth and rising unemployment, voters in other indebted countries, like Italians (and French voters before them), are likely to reject additional spending reductions, tax increases, and further painful deregulation. Europe must

find more effective policies that reduce production costs toward German levels.

They knew it was coming The economic historian Harold James has shown in a recent book that in the 40 years of negotiations leading to the adoption of the common currency, all of the problems that now beset the euro zone were discussed repeatedly. Everyone understood that a monetary union would require enforceable fiscal and banking rules. But such rules were never adopted.

Before the euro, countries adjusted misaligned production costs by devaluing or revaluing their exchange rates. Fiscal austerity is a poor substitute. It works slowly, if at all, because elected governments are often reluctant to implement their promises – and may not feel bound by those of previous administrations (especially if they owe their victory to voters who are rebelling against years of belttightening with no evidence of renewed growth). Likewise, politicians are reluctant to adopt deregulation that eliminates state-sponsored special privileges.

For several years, I have proposed a policy that combines growth and fis-

cal rectitude. Let all the heavily indebted southern European countries jointly agree to join a weak euro, which would float against the stronger northern euro. When the weak euro reduces the heavily indebted countries’ production costs by 20-25 percent, they can rejoin the “hard” euro if they accept fiscal reforms that are subject to approval by the European Commission (and thus by the hard-euro creditor countries). After all, a fixed exchange rate or common currency requires limits on fiscal independence.

The Italian election sent a message. After five years of decline in living standards, voters oppose more austerity and further retrenchment without growth. Restoring a sound euro requires policies that revive growth, rein in government spending, and reform heavily regulated labor and product markets. ● Allan H. Meltzer, professor of political economy at the Tepper School, Carnegie Mellon University, and distinguished visiting fellow at the Hoover Institution, is the author of “Why Capitalism?”

Copyright: Project Syndicate, 2013.

Project-syndicate.org

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A life in the business: A special interview with last year's Lifetime 2-3 Acheivement Award Winner

That’s entertainment! A look back at the music and special performances at past CEEQA events 10-11

10 YEARS OF CEEQA PROMOTIONAL SUPPLEMENT

APRIL 22-28, 2013

CEEQA history & plans

A decade of quality A lot has changed over the last 10 years. A decade ago Aleksander KwaÊniewski was the Polish president, Poland was still waiting to become a member of the EU, and the nascent CEE real estate market was still in the process of modernizing itself for the demands of the 21st century.

This period also saw the beginnings of the Central and Eastern European Real Estate Quality Awards (CEEQA), with the first-ever gala taking place at the InterContinental Hotel on January 22, 2004, recognizing business achievements in 2003. The region was then battling to shake off its communist legacy, as despite the emergence of privately developed office buildings, shopping centers, logistic centers, residential developments and hotels there was still little in the way of institutional equity and senior debt finance.

The original CEEQA Gala & Industry Awards attracted some 300 guests, most of whom were locally based international industry professionals. A total of 16 awards for business performance and achievement were given out, including the award for Lifetime Achievement in Real Estate, which went to Eugene Golub, founder and President of Golub & Co. The Financial Times was one of the sponsors of that first gala, a cooperation which is still going strong.

Internationally rewarded Now, 10 years on, CEEQA has become an internationally renowned business event bringing together owners, CEOs and board representatives of leading investors, developers, financiers and consultants from 40 different nations, who represent business activity across eighteen countries throughout emerging Europe.

The concept for the firsttime ever event came about due to lack of high-quality business events in the region at the time, a gap in the market that CEEQA founder Richard

COURTESY OF CEEQA

As it celebrates its 10-year anniversary, CEEQA continues to go from strength to strength

Monika Richardson and Richard Hallward Hallward was quick to seize upon.

“The aim was always to create a positive, world-class showcase for the sector on the international stage. … On a brief visit to the region to assist on an event in Prague, it didn’t take me long to figure out there was a gap in the market for something like this and everything has been geared around making it happen,” said Mr Hallward.

Special anniversary The 10th edition of the awards and accompanying market insight forum program will include a range of special anniversary initiatives and ideas to commemorate achievements in the market during the past decade, while looking forward to the next 10 years.

This year’s black-tie CEEQA Gala will take place on April 23 in Warsaw’s SOHO Factory. Located in the Praga district, on the capital’s east bank, it is situated in an area known for its creative and artistic talent. The venue itself is one of the best examples of post-industrial renovation in Warsaw, having previously housed one of the largest motorcycle factories in Europe.

With some 3,000 sqm of space spread over the two largest buildings in the complex, all guests at this year’s function will have unprecedented space and view of the action.

Speaking about the venue, a shift from the previous galas which have mainly been hosted by the capital’s top hotels, Mr Hallward said, “It gives us the opportunity to take the interna-

four-course dinner, and awards, there will also be a range of special features to commemorate this 10th anniversary. Entertainment on the night will be provided by one of Poland’s biggest singing talents, Edyta Górniak, as well as 1980s girl group Bananarama, among others.

In terms of the judging process, this year’s jury once

“The aim was always to create a positive, world-class showcase for the sector on the international stage. tional real estate sector to the heart of an important urban renewal story for Warsaw’s future, and gives us a lot more space to work with as well as a fantastic post-industrial aesthetic to play with. It will be closer to our vision of what the CEEQA Gala should be and will hopefully build on its reputation as one of the best business events in Europe.”

Once again, along with Mr Hallward, Polish journalist and television presenter Monika Richardson will host the evening. As well as the traditional champagne reception,

again comprises senior representatives of market-leading companies who are active in three or more national markets in the emerging Europe arena. Jury places are rotated each year among developers, investors, lenders, consultants and services providers, with six major international agents operating across the region retaining permanent seats on the jury. These permanent seats are held by: CBRE, Colliers International, Cushman & Wakefield, DTZ, Jones Lang LaSalle, Knight Frank and Savills.

Lifetime achievement As always, one of the key awards on the night will be the annual Lifetime Achievement Award. This year this prestigious award is being given to Brian Patterson, managing partner of AIG/Lincoln. Mr Patterson first started exploring business opportunities in Poland in 1992, leading the developments of Warsaw Distribution Center (WDC) and Diamond Business Park (DBP), two of the first modern commercial projects realized in Warsaw after the end of communism. In 1997, he became a founding partner of AIG/Lincoln, a joint venture with American International Group and Lincoln Property Company, which has successfully developed and managed projects in Poland, Russia, the Czech Republic, Hungary, Romania, Slovakia, Germany, Italy, Bulgaria and Spain.

Speaking about the honor Mr Patterson said, “I very much appreciate that my friends and peers believe that I deserve this award. I am somewhat uncomfortable with receiving this award as an individual, as there are so many people that have been involved in creating AIG/Lincoln’s busi-

ness units and its projects over the years. However, I am pleased to accept this award in the name of my partners who have also led the development of these projects, including especially Lance Bozman in Hungary, Walter Dackiw in the Czech Republic, Mirek Szydelski in Poland and Dariusz Dworakowski in Russia.”

Richard Hallward, founder and organiser of CEEQA, added, “I am delighted Brian has accepted to attend this year’s CEEQA Gala to receive our annual award for Lifetime Achievement in Real Estate.

Few people, if any, have matched his dynamism and brought so much value into the market place across this sector and other sectors, over a sustained period. We congratulate him for his past achievements, while recognising that he remains and continues to be one of the most active and respected leaders of the commercial real estate sector in Emerging Europe.”

Prior to the main event, all past and present CEEQA jurors, sponsors and partners will be invited to a pre-gala lunch at Signature restaurant, located in luxury residential hotel H15 in central Warsaw. ●

2

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10 YEARS OF CEEQA

APRIL 22-28, 2013

Interview

A life in the The Lifetime Achievement Award honors the most influential names in emerging Europe real estate Each year one individual is chosen by CEEQA to gain a Lifetime Achievement Award for services to the real estate industry. Sponsored by the Financial Times, the award is given each year to an inspirational industry leader who has made a significant and durable

porate senior vice president at Arcadis, who during a 30-year career with EC Harris is credited with building the company’s project management capability from scratch and, as group chairman for 15 years, steering it to its current position as a global powerhouse in built-asset consultancy. Here he talks about his experience, achievements and winning at last year’s event.

Tell us about your first experience in the CEE real estate market?

Richard Clare

COURTESY OF ARCADIS

“The CEEQA awards are number-one really, everyone in the industry turns up.” contribution to the real estate business and to the emerging Europe real estate investment sector and internationally.

In 2012 the winner was Richard Clare, currently cor-

Richard Clare: We originally opened our first office in Budapest, Hungary, and as I said in my speech at last year’s CEEQA gala, one of our youngest partners, a real red-

braces banker type, did brilliantly well winning contracts, and we essentially built it from there. We followed that quite quickly by opening offices in Warsaw and Prague.

How has the region and the market changed in the time you have been doing business here?

Well, now when you’re producing a real estate product it’s got to have investment value.

Some of the early projects we were involved in really weren’t up to the mark. In those days there was a different mentality and it took a while for international standards to arrive and for companies to realize that international standards were worth paying for. We’ve been involved with a lot of FDI clients like Nokia, Oracle, PepsiCo, Anderson Consulting and inward investors like these companies have helped change the mentality within the CEE market.

How did it feel to be recognized by members of the industry with a Lifetime Achievement Award at CEEQA 2012?

10 YEARS OF CEEQA

APRIL 22-28, 2013

www.wbj.pl

3

business

What achievements in your career are you most proud of?

The enormous changes I made to EC Harris. Obviously I did not make them on my own, I recruited and managed to keep some very clever people with great ideas, who helped implement them. The last 10 years have seen the biggest changes in the company and moving into value propositions helped our clients, and helped

take us much higher up the value chain. Secondly, implementing broader ownership – we originally had 40 owners, but now we have about 150 owners and that’s something I’m proud of. The reason for this decision was that people like to own part of the business that they are involved in.

What projects are Arcadis and EC Harris currently involved in?

With EC Harris we are mainly involved in property and real estate. Now with Arcadis we’re additionally involved in environment, infrastructure and water. We have prestigious projects like the subways in Prague and Warsaw, we’ve also been involved in strategic rail, including the renovation of the Wroc∏aw G∏ówny train station, while at the same time we still maintain our office clients, such as Google. We’re currently involved in the largest retail rollout in Poland, and then looking back a bit there’s the Stary Browar retail development in Poznaƒ, which has won numerous awards, and when I first saw it I could not believe

COURTESY OF CEEQA

Very depressing! The problem is that one might presume your working life is over when you achieve an award like this. But in reality it was a great honor to win. The CEEQA awards are numberone really, every one in the industry turns up and it is the quality of the people that are involved that makes it such an important event. If you look at the past winners of the CEEQA Lifetime Achievement Award, I am proud to be included among them. But it’s not just the winners, if you look at the quality of people who are on the jury it’s really a privilege to be recognized by them in this way.

Richard Clare (far left) receives the CEEQA Lifetime Achievement Award from Richard Hallward how good it looked.

What trends or changes do you foresee in the CEE real estate market in the next few years?

Infrastructure has improved

massively and I see this being a big factor in the future. The linkage with the Baltic states will be greater and probably they will become a lot more involved in real estate markets. But I

see the improved infrastructure across the region being the main factor that will lead to the involvement of smaller cities. Previously the market has been focused on the major cities but I defi-

nitely see this changing.

We’ll also see many more innovative offerings, so projects will be much more competitively aligned to global gratuity demand to achieve success. ●

4

10 YEARS OF CEEQA

www.wbj.pl

APRIL 22-28, 2013

Future markets

Crystal ball gazing This year’s CEEQA@MIPIM event had industry experts looking into the future For real estate professionals, having a crystal ball enabling them to see into the future would be an invaluable tool to aid business growth. But while

this may be a dream scenario, what CEEQA has been particularly successful in doing over the years is bringing together the leading minds in the real estate industry to predict what the future holds.

This year’s CEEQA@MIPIM event in Cannes included two discussion panels: the Money Panel, which focused on finance, investment and the

economy; and the Development Panel, which focused on how that money is being put to work now and in the future.

Liquidity issues Liquidity issues were at the forefront for the first panel, with Martin Erbe, head of international real estate finance for Northern and Central Europe at Helaba,

suggesting their would be little immediate respite in the concentration of what liquidity is available on the core CEE markets.

The panel also discussed the possibility that banks may have misallocated EU capitalization funds as an investment tool rather than a liquidity tool. However, speaking after the event Mr Erbe said that it

was difficult to definitively say whether EU funds are being misallocated. But, if this is indeed the case, he said the impact on all markets is the same, with liquidity missing for better assignments.

He added that in terms of the key concerns for both sides of the market, for investors the question is: Will I get my exit in five years’ time

and if yes, on what terms? And for banks, the question is: Is the sponsor capable fulfilling its business plan?

Mr Erbe concluded that it is now more difficult to make the right decision, and therefore more difficult to make a profit.

Regional outlook Other points touched upon were the current positions and future prospects of the SEE markets, as well as Ukraine and “radar” markets such as Turkey, with investors Yannis Delikanakis of Bluehouse Capital and Tim Norman of Europa Capital both talking up the prospects of the SEE markets. This was a view shared by Mr Erbe, who added the caveat that higher yields in the more “difficult” markets in SEE and elsewhere could not be an attraction in themselves if the exit remained unclear.

According to an April report by real estate advisory firm Cushman & Wakefield, investment activity in the key Central European markets of Poland, the Czech Republic, Slovakia, Hungary and Romania was maintained in the first quarter of 2013 with €958 million invested, some 6 percent above the five-year average.

And positive investor sentiment and underlying activity suggests investment volumes for the year should match those achieved in 2012.

Another advisory firm, CBRE, found that regionally, Warsaw is the leading city in the CEE and the fifth-most desirable city in Europe behind London, Paris, Berlin and Frankfurt.

“Poland is right up there for a top destination for investors. ... The outlook is very good,” said Mike Atwell, head of CEE capital markets at CBRE.

Going green The Development Panel focused on issues relating to the case for green building, sustainability, urban regeneration and infrastructure. All of the experts that commented for this supplement agreed that green building is going to be of major importance for the future of both the CEE and SEE markets.

“What we see from observing market is a strive for achieving maximum work comfort. And comfort is now understood differently than it was five years ago,” said Jeroen van der Toolen, managing director for Central & Eastern Europe at Ghelamco.

“It includes not only space effectiveness, proper parking

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for sustainability innovation, not through a box-ticking approach to certification.

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Urban regeneration

From left to right: John Banka (Colliers International), Arpad Torok (TriGranit Development Corporation), Jeroen van der Toolen (Ghelamco) ratios or restaurants in a building. Now it is also about green solutions, which not only enhance cost effectiveness of the building but also significantly influence the wellbeing of future tenants,” he added.

This was a view shared by Mr Atwell, who said, “Green, sustainability and environmental issues are going to be a requirement for the major

investors. Having BREEAM certification is going to be a key requirement for the big funds.”

An emerging trends report published by PwC in March found that for developers, banks, and investors, environmental concerns are now intrinsic to their due diligence because sustainable properties are increasingly commanding

higher rents and values. The reports says that, “The most important aspect of lending today is how that asset will look five years down the line.

In five years’ time, will I get my money back? For that reason sustainability is very, very important.”

Speaking about this CEEQA founder Richard Hallward added, “It is no

longer just about making greener and greener buildings, it’s about making them smarter and and more lifeintegrated within which greenness will be one, though ever more of an automatic and central, aspect.”

However, Mr Van der Toolen cautioned that real benefits could only be achieved by a genuine drive

Another key trend highlighted was the view that regeneration of existing office space will play a major role, as big city center locations continue to be the most attractive for the new generation of talented young office workers.

Hadley Dean of Colliers International said, “There’ll be a big push towards re-engineering early 1990s office buildings, making them more accessible for modern clients’ needs. We’ll see FMCGs in suburban migration back towards city centers as part of a fight to retain staff. Generation Y wants to be downtown where the bars, restaurants and entertainment are, so this will be a key factor.”

In terms of the retail market, the integration of lifestyle and work was a central theme, with a greater focus on entertainment needed to attract consumers, particularly given the rise of online shopping.

Changing influences Another point raised was the

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potential of new investors entering the market, with a change of the guard from the traditional major players. The influence of Asia investors and developers, particularly from China and South Korea, is expected to increase, with PwC stating that “Europe needs to think about how it accommodates this important consumer of retail and residential real estate,” as its influence grows.

The burgeoning BPO sector is also expected to see continued growth in the CEE region, with Poland remaining a regional leader, although both Ukraine, in terms of specialized IT outsourcing, and Romania, which has seen significant recent BPO growth, could challenge Poland’s superiority in the future.

But, speaking about the possibility of smaller cities in the CEE region seeing increased development, Ghelmaco’s Jeroen van der Toolen said that, in Poland’s case at least, the main urban centers of Warsaw, Kraków, Wroc∏aw and Poznaƒ are set to remain the major markets. ●

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CEEQA highlights

Looking back

Brian Patterson at the first CEEQA Gala

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The industry’s leaders give their view of the best moments from 10 years of CEEQA

David Mitzner gives his rousing speech in 2005

There have been many highlights at the nine previous CEEQA Galas, both in terms of the awards given and the entertainment on offer. But arguably the most dramatic of them all was David Mitzner’s speech following his Lifetime Achievement Award in 2005.

Mr Mitzner, founder and

managing director of Rida Development, was born in Warsaw, but after surviving first in the city’s Jewish ghetto, then as a prisoner in a Soviet gulag, he emigrated to the United States. It took more than 40 years before he returned to Poland on business. After he was presented with the award, he used his emotional speech to detail the sacrifices and struggle he went through. Here is an abbreviated version of what he told the audience that night: Ladies and gentlemen as I stand before you tonight … it is more than 70 years since Germany invaded Poland turning my life, my family’s life, and the entire Polish nation into a living nightmare. I realized then that unless I provided for my family they would surely starve to death.

Eventually my luck ran out and I was captured by the Gestapo and taken west … but I was able to escape. However a short time later I was then captured by the Soviet border guards. I was accused of antiSoviet activities and sentenced to eight years in a Siberian gulag.

After serving the full eight years, I arrived in the United States in April 1949. I spoke no English, I brought all my belongings in a single suitcase.

Money? I had $17, which quickly dwindled to $7 after I took a taxi to my uncle’s house.

So, how does one go from $7 to purchasing 28 malls? …

In 1949 I had no track record and yet I had the confidence to believe that I would succeed and I took risks … and I stuck to my guns, even as everybody was telling me that it was risky to invest in Poland. But you don’t make money unless you’re willing to take risks. And those people did not understand that Poland is in my heart and I wanted to go to Poland. I believed in Poland, the country of my birth.

Touching moment Speaking about his own personal highlight, long-term CEEQA jury member and managing partner for Eastern Europe at Colliers International, Hadley Dean, also mentioned Mr Mitzner, but not his 2005 speech – rather, when he had taken the role as prize-giver for Eli Alroy’s Lifetime Achievement Award in 2010.

“David’s speech handing over to Eli Alroy, it was a comedy but at the same time a very touching moment, those two did more to shape Warsaw’s skyline than anyone else,” he said.

Mr Alroy himself said of

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Why CEEQA?

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Past winners and jury members give their thoughts on what makes CEEQA special:

Eli Alroy (left) and David Mitzner (right) the award, “Getting regional recognition after 16 years of work in the region, by the most respected organizer of real estate events in the CEE, was beyond my expectations.”

And referring to Mr Mitzner he added, “David Mitzner is one of a kind, a giant in the field of real estate, the introduction he did for me was the unforgettable moment of the event. Only he

could make the crowd stand on its feet for so long.”

Another moment that will live long in the memory was King Sturge’s 2011 victory in the Office Agency category.

The firm’s then head of of Central and Eastern Europe, Jason Sharman, entertained those present with an onstage dance after securing a win that was given added significance as it came not long

before the company’s aquisition by Jones Lang LaSalle.

Among the other standout wins was the victory of AIG/Lincoln’s The Lakeside in Bucharest, which won the Office Development of the Year award in 2010, after it became the first BREEAMcertified office building in Romania, and subsequently the first ever green building to win this prestigious award. ●

John Duckworth, former managing director for Central & Eastern Europe and South Eastern Europe, Jones Lang La Salle “CEEQA has been the consistent leader in terms of real estate awards in CEE during the last 10 years. It is an inspirational mark of quality across a wide geographic and cultural region and has helped the region adhere to greater levels of consistency and performance. Additionally, CEEQA is a strong thought leader in the region, identifying trends, issues and opportunities and helping to stimulate discussion amongst industry leaders. The fact that the Financial Times is a partner is testament to this leadership.”

Eugene Golub, founder and chairman of Golub & Company, 2004 Lifetime Achievement Award winner “The CEEQA awards honors the accomplishments of the many active real estate companies and individual real estate professionals in the region. The awards reflect on the creativity and excellence that is present in the real estate community and creates a benchmark for everyone in the industry to achieve.”

Carl Panattoni, founder and chairman of Panattoni Development Company, and 2011 Lifetime Achievement Award winner

“Central Europe is its own market with its own drivers and nuances. CEEQA affords the opportunity to talk to everyone that is in the flow of the CEE real estate business. If I did not live 10,000 miles away, I would never miss it. Obviously receiving personal recognition adds to my personal experience, but just being at the event is the main benefit for us and everyone else.”

Hadley Dean, managing partner for Eastern Europe, Colliers International “It is the event. It’s really well-organized and it’s the only event that gets the entertainment right along with the awards. All the seriously important people who make the major decisions attend.”

Eli Alroy, former head of GTC and 2010 Lifetime Achievement Award winner “For 10 years the CEEQA event has demonstrated who are the most active and recognized players in each sector.

Its a great place for networking, feeling the trends and connecting the dots.”

Daniel Harris, managing director of investments at Tristan Capital Partners “CEEQA are not only the most respected awards in the CEE property industry, but the event is also an opportunity to enjoy an entertaining evening with colleagues and friends.” ●

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Award nominees

CEEQA 2013: RealGreen winners RealGreen Winners

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REALGREEN BUILDING OF THE YEAR 2013 – sponsored by RICS Green Towers Wroc∏aw – Phase A, Skanska Commercial Development Europe REALGREEN DEVELOPER OF THE YEAR 2013 Skanska Commercial Development Europe REALGREEN INVESTOR OF THE YEAR 2013 – sponsored by Skanska Commercial Development Europe Union Investment Real Estate REALGREEN SERVICE PROVIDER OF THE YEAR 2013 Arcadis EC Harris

Green Towers Wroc∏aw – RealGreen Building of the Year 2013

Skanska dominated the CEEQA RealGreen Awards at MIPIM MIPIM, the annual international real estate event at the Palais des Festivals, in Cannes, France, was once again the venue for this year’s CEEQA RealGreen Awards. The event, which takes place every March, saw the launch of the CEEQA Green Leadership Award and the first-ever Green Debate

market insight forum which took place in 2008, with the aim, both then and now, being to address the issue of the built world’s contribution to greenhouse gases and furthering understanding of our carbon footprint.

CEEQA has sought to champion the business case for green building investment through research, consultation and business-leader events such as the RealGreen Awards,

which recognize companies that have realized the need for green building have begun to incorporate this in to their business strategy.

In Cannes on March 12, Skanska Development Europe dominated this year’s RealGreen Awards, picking up two of the four prizes on offer on the night, including Building of the Year for Green Towers in Wroc∏aw, as well as claiming the overall Developer of the Year award.

Speaking about these achievements Waldemar Olbryk, the president of Skanska Property Poland said, “We are very proud that our long-term, consistent commitment to sustainable development has once again been acknowledged. The RealGreen awards further confirm that we con-

tinue to be successful in setting green trends on the Polish market, always being one step ahead in our environmental endeavors.”

“The future of green building is bright. Its merits have been recognized by tenants and their employees, with investors increasingly eager to purchase such properties, viewing them as future-proof investments of high value,” he added.

Along with taking home two awards, Skanska also assisted with the presentations as sponsor of the RealGreen Investor of the Year award, which was won by Union Investment Real Estate. EC Harris took the final award for RealGreen Service Provider of the Year. ● For the full shortlist of nominations and awards, log on to CEEQA.com

APRIL 22-28, 2013

2013 CEEQA Industry Awards The shortlist for the main CEEQA awards, which contains 22 categories encompassing real estate projects, companies and industry professionals was also announced at the RealGreen event at MIPIM. Notable trends among the project candidates saw a significant rise in the number of high-level, green refurb projects as well as a general increase in the green credentials of new building projects with many achieving LEED Platinum or BREEAM Very Good status.

In fitting with CEEQA’s 10-

year anniversary, there will be two standout awards on the night that will look back over the past decade. They include Building of the Decade, which is sponsored by Gardiner & Theobald, and Company of the Decade. Another standout prize on the night will be the Lifetime Achievement Award, which is once again sponsored by the Financial Times. The winners of the CEEQA Industry Awards will be announced at the 10th anniversary edition of the CEEQA Gala, which take at SOHO Factory, in Warsaw. ●

Building of the Decade The shortlist for this award is drawn from past winners of CEEQA’s overall Building of the Year award for each of the past nine editions of CEEQA. This year’s two Building of the Year CEE and Building of the Year SEE awards will also be added to the list before the final judging process takes place.

• Arkadia, Warsaw – Retail • City Gate, Bucharest – Office • Eurovea, Bratislava – Mixed use • Focus Mall, Bydgoszcz – Office • National Stadium, Warsaw – Office • Palladium, Prague – Retail/office • Rondo 1, Warsaw – Office • Silesia City Centre, Katowice – Retail • The Park, Prague – Office For more, log on to: www.ceeqa.com/2013/building-of-the-decade.html

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Insight forum

A successful track record

Back to the future A history of CEEQA’s CEE Insight Forum Since 2004 CEE Insight Forums have provided future knowledge on key issues, and trends driving forward the real estate market across 18 CEE and SEE markets. By bringing together the sector’s top business leaders, thinkers and industry experts to debate on specific areas that are shaping the flow of money and prod-

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ucts in an increasingly diverse and vibrant market, Insight Forum has been able to lead market opinion on upcoming trends whilst also predicting potential future problems and crisis in the market.

By ensuring that topics are focused on one specific area, with presentations from key speakers being followed by a round-table debate, the forums have maximized the possibility for information

exchange between market experts and the leading lights in the industry. But while the focus of the forums, which are held in major cities across emerging Europe, has always been about predicting and influencing future trends, the events have also presented an unparalleled business networking opportunity, with participants and audience members from the most senior levels of the sector both on stage

and in the audience.

Looking right back to the first Insight Forum in 2004, there is a record of predictions that have been proven correct.

In 2004, the CEE Insight Forum correctly called the move on the Baltic markets with the event “Eye on the Baltics.” In 2005, the run on the Warsaw residential market was pre-empted with “Dreamtime Warsaw,” and then in February 2006 there was

• “Eye on the Baltics” – called the move on the Baltic markets • “Dreamtime Warsaw” – pre-empted the run on the Warsaw residential market • “Tropical Storm” – successfully predicted the impact of the global economic crisis • “RealGreen Symposium” – put forward the case for green building advanced warning on the run on land prices in Central and Eastern Europe with “Square Deals.” In October 2007 the Insight Forum made an early attempt at understanding the possible implications of the US sub-prime crisis for commercial real estate investment in the region.

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Tropical Storm

The “Tropical Storm” CEE Insight Forum in Budapest, October 2008

Gardiner & Theobald is one of the world’s leading independent construction and property consultancies.

But one of the Insight Forum’s major successes came in October 2008 and March 2009 with two “Tropical Storm” events in Budapest and Warsaw. The forums aimed to foresee the impact of the global economic crisis on the region’s real estate sector.

The Budapest event was chaired by Mark Rea of Gardiner & Theobald, with Regional IMF head Christoph Rosenberg the event’s keynote speaker.

“Cash is king” and “quality rides high” were the twin messages emerging from the forum, with Mr Rosenberg giving warning of a significant pull against continued growth

Established in Central and Eastern Europe since 1992, delivering projects for clients across all sectors.

in the CEE economies while suggesting that the crisis would “put the emerging European economies to the test” and further expose countries with high levels of borrowing and foreign direct investment. He also correctly stated that countries like Poland, with more domestically driven economies, were likely to experience a softer landing than neighboring nations like Hungary and the Czech Republic.

In 2010 the “Buying Signals” event in Zagreb, focused on the Southeastern European markets, and attracted a wide range of investors from across the region. Next, 2011 and 2012 saw the focus shift to the case for green building, culminating in the RealGreen Symposium & Fair.

At MIPIM 2013 “Back to the Future – The next 10 years for the CEE & SEE property markets” saw the views of two panels aired on future market conditions, prospects and opportunities in the market. ●

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Music

That’s entertainment

COURTESY OF CEEQA

CEEQA is not just about industry recognition – over the years it’s been famed for some great live entertainment, offering real estate professionals the opportunity to celebrate their achievements while letting their hair down.

Hadley Dean, managing partner for Eastern Europe at Colliers International and a CEEQA jury member, confirmed this, saying, “It’s the only real estate event that gets the entertainment right along with the awards.”

A mixture of new Polish and international talent and some blasts from the past have been the order of the day over the years, with 1970s disco legends BoneyM, who appeared at the 2007 gala and Sister Sledge in 2008, among the classic performers to have entertained revelers.

Arguably the standout performances were by leg-

COURTESY OF CEEQA

CEEQA has hosted some top-notch acts in previous years, and the best is yet to come

Gloria Gaynor wows the crowd at last year’s CEEQA@MIPIM event endary 1970s Philadelphia band Sister Sledge back in 2008 and when 1980s charttoppers Bananarama wowed the crowd in 2009 at Warsaw’s Hilton Hotel. The group, who scored their first hit in 1982, hold the record as the most-charting girl group in the history of pop, with songs such as “Venus” and “Cruel Summer” among their many worldwide hits.

Gloria Gaynor, known as “The Queen of Disco” was

also a major high point at last year’s CEEQA@MIPIM event, belting out unforgettable songs from her repertoire including the classic “I Will Survive.”

One less well-known entertainer who also deserves a special mention is CEEQA legend Albert Kurowski, a pianist who has played at every CEEQA Gala since the event first began. Albert has serenaded CEEQA guests with classical and pop songs,

as well as playing along to club anthems, to entertain all attendees over the past 10 years. And once again he’ll be on hand at this year’s event to showcase his talent as a versatile and entertaining piano player.

Speaking about the past performers to have entertained the cream of the CEE’s real estate professionals, CEEQA founder Richard Hallward said, “We have a lot of favorites. Gloria Gaynor

Edyta Górniak will perform this year was a bit special at last year’s CEEQA@MIPIM reception.

At the Gala, I think Bananarama and Sister Sledge were probably the most memorable. A lot of people liked Audiofeels a few years ago.

The Errol Linton blues jam in the champagne reception two years ago was a personal favorite, while Tara McDonald and Klaudia Kulovic were also great three years ago.

Wet Fingers last year was a risky call as they’re more ‘club

land’ than ‘corporate land’ but they did a spectacular show with Nick Sinckler and Ewa Jach and this was the first time we really got the crowd dancing till dawn.”

Classic lineup This year, in line with CEEQA’s 10th-anniversary theme, the entertainment will look back at some of the past favorites. Bananarama and dance-duo Wet Fingers are back by popular demand,

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Bananarama will be back for this year’s gala while Poland’s biggest entertainment star, Edyta Górniak, will take to the stage to perform hits from her back catalog. Ms Górniak first found widespread fame back in 1994 when she was Poland’s first Eurovision entrant, coming in a very respectable second behind that year’s Irish winners. In 2012 she released her sixth studio album, “My,” which saw her return to the top of her game following some time away from the limelight.

Another performer taking to the stage at this year’s gala is Bryson Andres, who is being flown in from the Philippines, where he is currently performing a season at Resorts World Manilla.

Performing a unique style of

electric loop-station dub violin, Mr Andres has achieved international recognition for his talent and individual performance technique that is certain to win him new fans at this Warsaw event.

All for a good cause But although the CEEQA Gala is about industry recognition and entertainment, it’s also about helping worthy causes, with CEEQA having raised more than €200,000 for charities over the past 10 years. The Bátor Tábor Foundation is the official charity partner of the CEEQA Gala for the third year in succession in 2013.

The charity organizes therapeutic and empowering camp sessions for children diagnosed with cancer or other

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serious diseases in an uplifting and professionally serviced environment, and serves seriously sick children across Central Europe.

During the past two years, through a range of fundraising and entertainment activities organized by Bátor Tábor, the charity and CEEQA have raised nearly €20,000 towards important projects improving the foundation’s facilities and services. This year’s fundraising target is to kick-start the revitalization of the camp lake, which is located 60 km north of Budapest, in town called Hatvan. ● For more information on Bátor Tábor see the organization’s website, at batortabor.hu

26.03.13 15:11

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CEEQA@MIPIM

CEEQA draws attention at MIPIM Many of the the CEE and SEE’s leading real estate professionals were in attendance at the RealGreen Awards reception on the first day of the MIPIM international property event which took place between the March 1114 in Cannes. Building on the awards’ growing profile on the international stage, CEEQA representatives also announced the full shortlist for the 2013 CEEQA awards.

The elegant reception, which was attended by more than 200 guests, once again included some top-drawer live entertainment, with British blues artist Errol Linton providing the music this time around.

The evening program was preceded by a full afternoon special edition market insight forum event, “MIPIM Back to the Future >> The next ten years for the CEE and SEE

property markets.” Commemorating the 10th anniversary of the CEEQA and CEE Insight Forum, a series of high-profile panels presented the views and ideas of some of the sector’s leading industry figures, analyzing current challenges and achievements while looking forward to future market trends in the context of wider business, political and economic dynamics.

Eye-catching Both the awards and the reception drew significant attention, as did the numerous stands from CEE and SEE countries which caught the eyes of major international investors at this year’s event. As one of the few European countries relatively unscathed by the recession, Poland was, as expected, far more visible in the Palais de Festivals this year than former European real estate “giants,” such as Spain and Italy.

Warsaw in particular managed to draw the crowds, with a memorable green and white stand which was decorated with artificial moss in line with the city’s theme: the UN Climate Change Conference to be held there in November.

SHUTTERSTOCK

This year’s RealGreen Awards, panel discussions, and CEEQA shortlist announcements took place at the CEEQA reception in Cannes

Warsaw’s Plac Defilad plot was one of the most important Polish development opportunities on offer at MIPIM One of the Polish capital’s major potential developments was on display, a 5,837-sqm plot on Plac Defilad in front of Warsaw’s Palace of Culture and Science, priced at z∏.70

million.

Poland was also represented by great investment areas in Kraków, Katowice, ¸ódê, Poznaƒ and Gdaƒsk, and MIPIM first-timers, among which were

the cities of Suwa∏ki, Jastrz´bie Zdrój, Chorzów and Tychy.

The representatives of emerging Asian markets were also trying to catch European investors’ eyes. Reed MIDEM,

organizer of MIPIM and MIPIM Asia, announced plans to develop MIPIM Asia in Hong Kong in 2013 and to launch a new event, MIPIM China, in Shanghai in 2014. ●

Round trip Retail Provider will build a 16,000-sqm dome-shaped shopping mall combined with a coach station in Kielce

A hard sell City Hall wants to put Plac Defilad up for sale despite confusion surrounding its legal status

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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

Mango leases in Poznaƒ City Center Mango has leased 500 sqm in Poznaƒ City Center, with TriGranit as the leasing agent. The store will be located on the first floor of the mall.

Poznaƒ City Center will be the Spanish-based clothing company’s third store in Poznaƒ and one of its 2,500 stores globally.

Greiffenberger in Wikana Biznes Park Germany-based ABM Greiffenberger, a manufacturer of electric motors and gearboxes, will open a new plant in Lublin. The company has signed a lease agreement for production, warehouse and office space in Wikana Biznes Park. The plant in Lublin is scheduled to open at the end of 2013. ●

In this issue Galeria Młociny . . . . . . . . . . . . .11 Norblin towers . . . . . . . . . . . . . .11 Plac Defilad . . . . . . . . . . . . . . . . .12 Kielce's new mall . . . . . . . . . . . .12 Louis Vuitton in Warsaw . . . . .13 Wola top residential district . .13 CBRE office market report . . .13

Huge commercial and office development set for northern Warsaw A huge commercial center and a business district will be developed in M∏ociny, in the capital’s Bielany district A mall the size of Warsaw’s well-known Galeria Mokotów shopping center and a large business district comparable in area to the S∏u˝ewiec Przemys∏owy office quarter are planned in the neighborhood of M∏ociny, in the northernmost part of Warsaw’s Bielany district. The scheme will be developed on a 91-ha plot owned by developer Coimpex in the vicinity of the M∏ociny subway station and international steel producer ArcelorMittal’s Warsaw mill.

The mall will take up a 5ha plot bordered by ul.

Kasprowicza, ul. Zgrupowania AK Kampinos and the

Most Pó∏nocny thoroughfare. It will comprise 67,000 sqm on five floors and a three-storey underground garage with 2,000 parking spaces.

Designed by the APA Kury∏owicz & Associates architectural studio, it will feature a roof garden and a light, glass-layered facade.

Apart from an anchor hypermarket, it will host a movie theater, a food court and numerous retail stores.

The office complex is planned to be built after the completion of the mall, within the next five to 10 years. It will take up the land separating the steelworks from residential estates in the Bielany district.

Originally, Coimpex had planned to develop a residential estate on the plot, but city officials decided that there was too much pollution in the area to allow it.

Instead, they decided to allow only the construction of office buildings there.

The city’s plan allows for

the development of 200,000 sqm of offices. Coimpex, a company owned by developer Pirelli and investment

fund Grove, has not revealed the launch date for construction of the mall.

Karolina Kowalska

The retail complex, called Galeria M∏ociny, will comprise 67,000 sqm of GLA

Office

Impexmetal’s skyscrapers get go-ahead After years of waiting, the firm will build its two 102-meter towers in the capital’s Wola district Impexmetal, a WSE-listed non-ferrous metals trading company, was granted the final construction permit last week for a high-rise complex that will replace the company’s existing office building in Warsaw’s Wola district.

Impexmetal’s plan, which calls for the delivery of a building complex including a lower five-storey structure designated for retail activity and two 102-meter towers connected at the base and comprising office, hotel and

residential space, was planned several years ago, at a time when the property boom justified such ambitious and potentially highly profitable schemes.

However another investor, Art Norblin, a company which is developing its own real estate investment on a neighboring plot, filed a protest against the scheme, stating it would block sunlight to its low-rise officeretail complex on the plot of the former Norblin factory.

Impexmetal’s project was put on hold in 2009 pending a final court ruling in the case.

It wasn’t until the administrative court had dismissed the protests from Art Norblin that Warsaw City Hall

granted Impexmetal an initial construction permit. But by then the situation in the market had changed drastically and the company decided to wait.

Now Impexmetal is planning to go ahead with construction, but hasn’t unveiled the exact date it will start.

Two Impexmetal towers will overshadow not only the Art Norblin project but also the gigantic 30-storey residential ¸ucka City building, erected nine years ago by JW Construction. Two years ago the building, which many residents had criticized as being ugly, was partially covered by the Prosta Tower office scheme.

Karolina Kowalska

COURTESY OF IMPEXMETAL

Telecommunication company EmiTel has leased 1,130 sqm in Mokotów Nova. The complex is located on Warsaw’s ul. Wo∏oska and is one of the largest office developments in that part of the city, with a total of 40,000 sqm of class-A office space. It comprises three buildings ranging from seven to 12 storeys.

Major projects

COURTESY OF COIMPEX

EmiTel leases at Mokotów Nova

APRIL 22-28, 2013, LI 18/15

No start date has been announced for the construction of the complex

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

12

LOKALE IMMOBILIA – REAL ESTATE

www.wbj.pl

APRIL 22-28, 2013

Office

Retail

Plac Defilad plot unsellable?

Huge makeover for Kielce bus station

COURTESY OF WIKIMEDIA COMMONS

A 5,837-sqm plot in front of the Palace of Culture and Science that Warsaw presented at the MIPIM international real estate fair in Cannes, France last month, could be impossible to develop, newspaper Gazeta Wyborcza reported last week.

The newspaper claims that the land, priced at z∏.70 million, has no access roads and therefore can’t be built on.

The plot, located at the intersection of ul. Marsza∏kowska and ul. Z∏ota, near the northern exit of the Metro Centrum subway station, is designated for office, retail and cultural space. The zoning plan allows for the construction of a building comprising up to five storeys. “We expect this plot to be sold this year,” said Hanna GronkiewiczWaltz, mayor of Warsaw, in an interview with Lokale Immobilia earlier this year, saying that the area is not burdened with any claims from former tenants and it is fully owned by the city.

Retail Provider will build a modern retail center in Kielce’s landmark bus station

Some experts claim that Plac Defilad will be impossible to develop Obstacles pile up But independent experts quoted by Gazeta Wyborcza point out that the plot has no access to public roads. There is simply no access for trucks, experts explain.

The land’s attractiveness may be further diminished by elements of the subway infrastructure, such as ventilation shafts located on the plot.

However, Ms GronkiewiczWaltz denied these claims, saying in an e-mail to Lokale Immobilia, “The local zoning plan for the area near the Palace of Culture and Science contains a direct access road,” and that the potential buyer would “get detailed information on the conditions of the

city’s agreement with the subway operator.” She also assured that the City Hall was “doing everything to find a buyer for the area.”

Real estate analysts cited by the newspaper valued the plot at some z∏.40-50 million, and that is assuming no complications with the subway operator. Finding a buyer is therefore unlikely, they said.

The only investor that could successfully develop the plot would be City Hall itself, the experts concluded.

However, they estimated the cost of developing the plot at some z∏.1 billion, a sum that the City Hall simply does not have at its disposal.

Karolina Kowalska

Polska Komunikacja Samochodowa 2 (PKS 2), a subsidiary of the developer Retail Provider, plans to build a transport hub with retail space at the site of the main bus station in Kielce, in south-central Poland.

At the end of March PKS 2 won the tender for the PKS Kielce coach company, with its 30 buses, the name and the station.

The transaction is set to be completed at the end of April.

The development, estimated at some z∏.100 million, will combine a shopping mall with a modern bus station. The plan is to construct a modern shopping mall comprising 16,000 sqm of gross leasable area.

The scheme will be based on the existing bus station, built in 1975. It is a round structure with a dome-shaped roof, surrounded by bus terminals. The investor wants to preserve the original facade of Kielce’s landmark structure, adjusting the facility to the needs of modern transportation, with a parking

lot located underground.

According to Ewa Zurman, a PKS 2 representative, the scheme compliments the city and preserves the view of the spires of the nearby Church of the Holy Cross.

Combining the retail center with the city’s transit system will make the former more accessible for residents of the region.

The mall will also cater for tourists who visit the city and increase local employment opportunities.

Retail Provider is carrying out a similar project in Olsztyn, the capital of the WarmiƒskoMazurskie voivodship, where it is planning to develop an investment called Nowy Dworzec Olsztyn – a shopping mall with 45,000 sqm of leasable space that would be integrated with modern railway and coach stations. The construction of the scheme, estimated at approximately €115 million, is scheduled to be launched in Q3 2013.

Karolina Kowalska

COURTESY OF RETAIL PROVIDER

The plot the city is planning to sell this year is unattractive to developers, due to a lack of road access, according to reports

The cost of the development is estimated at z∏.100 mln

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APRIL 22-28, 2013

LOKALE IMMOBILIA – REAL ESTATE

Retail

Luxury coming to town The first Louis Vuitton Boutique is finally set to open in Warsaw A huge monogrammed Louis Vuitton suitcase has covered the facade of the DH Vitkac shopping mall in Warsaw’s downtown. The 8.5-meter by 13.5-meter installation announces the arrival of the luxury French fashion house to the Polish capital. The Warsaw

store’s grand opening is scheduled for June. The impressive vintage suitcase installation traditionally marks the arrival of Louis Vuitton in cities around in the world.

The opening of the Louis Vuitton store, offering one of the world’s best-known luxury brands, is expected to attract other expensive goods retailers to the Polish capital.

The launch of the brand on the Polish market is seen as

part of a general growth trend in the popularity of premium brands in the country.

The Louis Vuitton boutique will take up some 270 sqm on two floors of DH Vitkac, located in the Wolf Bracka building on ul. Bracka in Warsaw. The mall already houses fashion boutiques such as Gucci, Yves Saint Laurent, Lanvin and Giorgio Armani, as well as restaurants and a delicatessen.

In the years 2005-2010, the Polish market for luxury consumer goods rose by 50 percent in real terms.

According to advisory firm KPMG, around 606,000 Poles can be described as “wealthy,” meaning they earn more than z∏.15,500 a month. The number of wealthy Polish citizens has nearly tripled in the past 10 years.

KEK

Residential

The district has surpassed Bia∏o∏´ka for the number of new residential units At the end of 2012 there were some 19,500 newly completed apartments for sale in Warsaw, with over 2,600 of these located in 40 investments in Wola, according to calculations from real estate agency Emmerson.

That made the district the top location for new residential units in the city.

The trend has continued into this year as well. In the first quarter of 2013, there were a number of new residential projects that were delivered to the market, such as Yareal’s scheme on ul.

Brylowska, LC Corp’s on ul.

Sowiƒskiego, the second stage of Pro Urba’s 19. Dzielnica estate, and the second phase of Okam’s InCity investment on ul. Karolkowa.

Development projects are primarily located along ul.

Wolska and ul. Kasprzaka, the main thoroughfares in the Wola district, as well as near ul. Jana Kazimierza, where “the offer grew the

most in the past year,” said Jaros∏aw Skoczeƒ from Emmerson.

“At the end of last year there were over 1,100 apartments offered by developers here. This is by far the most rapidly developing area in Wola,” Mr Skoczeƒ added.

Until recently Bia∏o∏´ka, in the northeastern part of Warsaw, was the top residential location, particularly for young couples with children looking for relatively inexpensive dwellings.

But despite the low prices for housing in the area, it has some significant downsides, such as long commute times and limited access to services. An insufficient number of places in schools has also become an issue.

Wola, on the other hand, doesn’t suffer from these disadvantages. Relatively cheap postindustrial plots located near the city center, a subway line that is currently under construction, welldeveloped roads and free spots in schools mean Wola’s residential projects are selling well and attracting more investors.

COURTESY OF YAREAL

Warsaw’s Wola becomes top residential district

Brylowska 2 will deliver 74 apartments in Warsaw’s Wola Big plans There are some large developments currently planned.

Approximately 1,500 new apartments will be built on a plot between ul. Jana Kazimierza and ul. Ordona. The plot belongs to Waryƒski Holding Group, which is planning to build on the land with developers Dantex and Polnord. Construction work is likely to begin in late 2013 and early 2014 and is due to be completed within six to

eight years.

Another major investment in Wola where the sale of units will soon begin is JW Construction’s estate at the intersection of ul. Kasprzaka and ul. Prymasa Tysiàclecia.

There, 3,000 dwellings are due to be built, along with a large shopping mall. The sale of the first stage of the development, comprising 153 apartments, is to commence within the next few months.

Marta Mardosz

Office

Experts advise tenants to renegotiate Changing market conditions are strengthening the position of tenants Office tenants feeling the squeeze of the economic slowdown should look to renegotiate their lease agreements, CBRE experts advise in a new report.

In the face of rising vacancy rates and supply, as well as growing demand for cheaper office parks and locations on the peripheries of Warsaw’s

central district, tenants who decide to renegotiate lease contracts on office space located centrally have a relatively strong bargaining position and a chance to secure favorable conditions, the report finds.

Renegotiations were a significant portion of the total office space leased over the past three years in Warsaw.

Total office leasing volume in 2012 in Warsaw amounted to 608,500 sqm, 28 percent of which comprised renegotiations (132 agreements or over

170,000 sqm).

“A lease contract is an agreement which secures the interests of both parties and does not entail altering its provisions,” Daniel Bienias, director of tenant representation in the office department at CBRE in Poland said.

“This means that rent must be paid even if the tenant is going through a difficult financial stretch. … [I]f the landlord can be convinced that the tenant’s difficulties are temporary, the company’s funda-

mentals are sound and its prospects are good, significant savings can be made,” Mr Bienias added.

The report says that when lease contracts are extended, tenants have the opportunity to negotiate additional benefits such as a temporary rent holiday or an extra allowance to renovate office space, which can then be used to create an area for a sub-let. It is always worth discussing indexation and running costs, the firm Karolina Kowalska says.

www.wbj.pl

13

14

THE LIST

www.wbj.pl

APRIL 22-28, 2013

Construction & Real Estate

Commercial Real Estate Agents Ranked by total commercial property leased in 2012

www.bookoflists.pl

Przewodnik po polskim biznesie i gospodarce

Property leased

Rank

A guide to Polish business and industry

Company name Address Tel./Fax E-mail Website

1

CBRE Sp. z o.o.

Rondo ONZ 1, 00-124 Warsaw 22 544-8000/22 544-8001 cbrewarsaw@cbre.com www.cbre.pl

255,000 126,770 70,000 187,000

230,000 81,770 45,000 137,000

25,000 45,000 25,000 50,000

Commercial real estate market research; strategic advice and mediation in renting office, commercial, industrial, logistics space; investment advisory; management of real estate portfolios; project and cost management; property valuation; financial services for client's real estate; property management

47 330 2006

3 Warsaw; Gdaƒsk

None WND

Colin Waddell

2

Jones Lang LaSalle Sp. z o.o. ul. Królewska 16, 00-103 Warsaw 22 318-0000/22 318-0099 warsaw.office@eu.jll.com www.joneslanglasalle.pl

246,819 231,278 WND WND

200,000 193,000 WND WND

46,819 38,278 WND WND

Investment advice; real estate valuation; mediation in commercial real estate rental; project management

9 345 1994

3 Warsaw; Gdaƒsk; Kraków

None WND

Tomasz Trzós∏o

3

Cushman & Wakefield Polska Sp. z o.o.

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

198,000 212,000 278,000 245,800

123,000 110,000 106,500 110,000

75,000 102,000 171,500 135,800

Property management; financial and investment advisory; real estate valuation; market research; network clients service

29 125 1991

2 Warsaw; Kraków

WND

4

Colliers International Poland Sp. z o.o.

Pl. Pi∏sudskiego 3, 00-078 Warsaw 22 331-7800/22 331-7801 warsaw@colliers.com www.colliers.com

145,525 WND 107,300 55,500

96,100 WND 85,000 43,000

49,425 WND 22,300 12,500

Investment advisory; real estate valuation and management; construction projects management; asset management; market research; green certification

55 200 1997

5 Warsaw; Kraków; Wroc∏aw; Poznaƒ; Szczecin

WND - 12% Sirti Holdings - 67%; Torsa Investments - 20%

5

DTZ Polska Sp. z o.o. ul. Z∏ota 59, 00-120 Warsaw 22 222-3000/22 222-3001 info@dtz.com www.dtz.com

110,500 WND 61,295 68,942

78,000 WND 24,187 27,837

32,500 WND 37,108 41,105

Mediation in retail, office, warehouse spaces rental; property management; advice on capital markets; investment advisory; real estate valuation; investment and construction advisory

WND 300 1994

WND Warsaw

WND

Patrick Delcol

6

Knight Frank Sp. z o.o. ul. Mokotowska 49, 00-542 Warsaw 22 596-5050/22 596-5051 office@pl.knightfrank.com www.knightfrank.com.pl

77,541 76,475 61,280 20,376

75,694 74,165 60,874 19,145

1,847 2,310 406 1,232

Financial, developer and investment advice; market research; real estate valuation; commercial real estate management; mediation in commercial space rental

15 104 1991

7 Katowice; Kraków; Poznaƒ; Warsaw; Wroc∏aw; ¸ódê; Gdaƒsk

WND

Monika D´bska; Joseph Borowski; Katarzyna Bàczyƒska

7

Kancelaria Brochocki Sp. z o.o., Sp.k. ul. Krakowskie PrzedmieÊcie 14, 00-325 Warsaw 22 826-1414/22 828-1545 kancelaria@brochocki.pl www.brochocki.pl

44,800 46,700 49,300 57,900

43,500 43,300 46,800 51,400

1,300 3,400 2,500 6,500

Renegotiations of lease contracts; real estate management; tender organization; market analysis; real estate promotion and PR

14 19 1993

2 Warsaw; Wroc∏aw

Andrzej Brochocki - 70%; Maciej Pe∏da - 30% None

Andrzej Brochocki

8

Ober-Haus NieruchomoÊci Sp. z o.o.

Al. Jerozolimskie 123A, 02-017 Warsaw 22 116-6500/22 116-6530 poland@ober-haus.com www.ober-haus.com

36,600 36,300 38,000 42,650

34,600 27,200 30,000 31,100

12,000 9,100 8,000 11,550

Rental and sale of commercial and residential space; projects sale on primary market; market analysis; investment advisory; buy-to-let; real estate valuation

WND WND 2000

6 Warsaw; Kraków; Poznaƒ; Gdaƒsk; ¸ódê

WND Realia Group Oy

Jolanta Loranty

9

A&A Marketing Sp. z o.o. ul. Piotrkowska 146, 90-063 ¸ódê 42 632-0000/42 636-9474 marketing@aia.pl www.nieruchomosci.aia.pl

28,900 28,550 28,560 WND

18,600 18,400 18,560 WND

10,300 10,150 10,000 WND

Own commercial real estate leasing; facility management; complex lease service; events organization for tenants; space for GSM antennas leasing

WND 20 2004

WND

WND

10

Wood Lark Group Sp. z o.o., Sp.k. ul. Bednarska 7, 00-310 Warsaw 22 625-4040/22 828-0929 info@woodlark.pl www.woodlark.pl

24,580 19,435 19,920 11,000

24,580 18,385 19,520 11,000

1,050 400 -

Real estate agent; advice on commercial real estate; market analysis; tenants and landlords representation

8 8 2006

1 Warsaw

11

MAXON NieruchomoÊci Sp. z o.o. ul. Okopowa 58/72, 01-042 Warsaw 22 530-6000/22 530-6001 maxon@maxon.pl www.maxon.pl

24,300 22,380 32,400 34,900

23,000 22,000 31,000 32,000

1,300 380 1,400 2,900

WND

63 69 1989

1 Warsaw

Janusz Iracki None

12

Nuvalu Polska Sp. z o.o., Sp.k. ul. Prosta 70, 01-209 Warsaw 22 465-9966/22 465-9955 info@nuvalu.pl www.nuvalu.pl

22,330 19,300 17,000 6,500

20,760 18,250 15,000 6,500

1,570 1,050 2,000 -

WND

10 12 2009

1 Warsaw

Bartosz Kozie∏ - 25%; ¸ukasz Wasilewski - 25%; Marcin Wasilewski - 25%; Andrzej W∏odarski - 25% None

13

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

21,000 5,150 WND WND

20,000 5,000 WND WND

1,000 150 WND WND

WND

WND 38 1990

WND

None Avestus Real Estate 100%

Mariusz Fràckiewicz

14

TUP Property SA ul. Zielna 37, 00-108 Warsaw 22 250-8838/22 721-3857 www.tupproperty.pl

18,755 20,051 24,715 21,152

6,231 7,581 11,268 7,239

12,524 12,470 13,447 13,913

Construction and management of own real estate portfolio; short-term development projects

2 8 2006

3 Warsaw; Pruszków; Poznaƒ

TUP - 100% None

Robert J. Moritz

15

Vertigo Property Group Sp.c. ul. Kopernika 34, 00-336 Warsaw 22 556-4400/22 556-4411 kontakt@vertigogroup.pl www.vertigogroup.pl

15,600 13,500 8,450 4,100

14,700 13,200 8,200 4,100

900 300 250 -

Real estate agency; real estate management

WND WND 2008

1 Warsaw

WND None

Wojciech Jaros; Tomasz Dyla

16

Estate Fellows Sp. z o.o., Sp.k.-a. ul. Pankiewicza 3, 00-696 Warsaw 22 379-7300/22 379-7301 biuro@estatefellows.com www.estatefellows.com

12,266 17,550 14,700 11,551

7,224 14,490 14,400 9,902

5,042 3,060 300 1,649

Strategic advice; investment advisory; real estate portfolio management; cost optimization; real estate management; technical maintenance; services suppliers management; budgets and reports; financial management

WND 30 2008

5 Warsaw; ¸ódê; Wroc∏aw; Bydgoszcz; Poznaƒ

WND

Rafa∏ Mateusiak

17

K&G Partners Sp. z o.o. ul. Wiktorska 65/14, 02-587 Warsaw 22 331-1222/22 331-1223 biuro@kgpartners.pl www.kgpartners.pl

2,500 3,950 4,200 4,000

2,500 3,500 4,200 4,000

450 -

Real estate agency; real estate valuation; audits; representation of landlords and tenants

6 7 1998

1 Warsaw

WND

Katarzyna Kwiatkowska

18

Atena Sp.c. Biuro Obrotu NieruchomoÊciami Al. NajÊwi´tszej Marii Panny 31, 42-200 Cz´stochowa 34 366-9996/34 365-6281 atena@atena.com.pl, www.atena.com.pl

1,410 4,050 3,850 WND

630 3,000 1,950 WND

780 1,050 1,900 WND

Investment analysis; investment advice; acquiring of real estate on client's behalf; transaction management; design of real estate portfolio

WND WND 1992

WND

Aneta Krygier - 80%; Andrzej Olszewski - 20% None

Commercial (office and retail) (sqm)

Office (sqm)

Retail (sqm)

Services offered

Number of agents / Total number of employees / Year founded in Poland

Number of offices in Poland / Locations

Ownership: Polish / Foreign

2012 / 2011 / 2010 / 2009

Notes: WND = Would Not Disclose. Research for The List was conducted in February 2013. Number of employees and ownership structure are as of February 2013.

All information pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed.

Top local executive / Title

Managing Director

Managing Director

Richard Petersen Managing Partner

Monika Rajska-Woliƒska Managing Partner

Country Head

President; Vice President; Managing Director

Managing Partner

President

Sylwia Borusowska President

Pawe∏ Kucharski - 33.3%; Marcin WaÊ - 33.3%; Pawe∏ Kucharski; Marcin WaÊ Monika Krzemiƒska Board Members 33.3% None

Janusz Iracki President

WND

Director

President

Co-owners

President

President

Aneta Krygier Owner

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

MARKETS

APRIL 22-28, 2013

www.wbj.pl

Stocks report

world stock indices DJIA

NASDAQ

14,537.14 (Apr 18 close)

S&P500

3,166.36 (Apr 18 close)

-2.21% (for the week)

FTSE100

1,541.61 (Apr 18 close)

-4.05% (for the week)

DAX

6,243.70 (Apr 18 close)

-3.25% (for the week)

-2.69% (for the week)

Macro news pushes indices down

NIKKEI 7,473.73 (Apr 18 close)

13,220.07 (Apr 18 close)

-5.05% (for the week)

-2.43% (for the week)

CHANGE: 8.38% (year to Apr 18)

CHANGE: 1.74% (year to Apr 18)

CHANGE: 5.41% (year to Apr 18)

CHANGE: 3.59% (year to Apr 18)

CHANGE: -3.92% (year to Apr 18)

CHANGE: 23.69% (year to Apr 18)

52-week high: 14,887.51

52-week high: 3,306.68

52-week high: 1,597.35

52-week high: 6,533.99

52-week high: 8,074.47

52-week high: 13,568.25

52-week low: 12,035.09

52-week low: 2,726.68

52-week low: 1,266.74

52-week low: 5,229.76

52-week low: 5,914.43

52-week low: 8,238.96

On Monday investors woke up to worrisome news from China. With its Q1 GDP growing by a disappointing 7.7 percent (experts predicted 8 percent growth), indices the world over dove into the red. Stocks of companies dealing in commodities were the most affected, and Polish mining giant KGHM was no exception, with its stocks dropping sharply, by 6.1 percent. However the biggest drop on Monday came from Agroton, an Ukrainian agriculture company, whose shares plummeted by a staggering 68.6 percent. The overall WIG index and the blue-chip WIG20 lost 1.8 and 2 percent, respectively.

On Tuesday there was no trade on the Warsaw Stock Exchange, as the performance of the newly implemented UTP system was being evaluated.

Wednesday continued with

Major indices WIG

43,364.70 (Apr 18 close)

WIG20

2,269.22 (Apr 18 close)

18.04

17.04

15.04

12.04

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

18.04

17.04

15.04

12.04

11.04

10.04

09.04

08.04

05.04

2,200

04.04

43,000

03.04

2,260

02.04

43,800

28.03

2,320

27.03

44,600

26.03

2,380

25.03

45,400

22.03

2,440

21.03

46,200

20.03

2,500

19.03

47,000

27.03

52-week low: 2,035.80

26.03

Change year to Apr 18: -13.59%

25.03

52-week low: 36,653.28

22.03

52-week high: 2,628.36

Change year to Apr 18: -9.86%

21.03

Change for the week: -5.80%

20.03

52-week high: 48,222.72

19.03

Change for the week: -5.09%

Top 5 ADVADIS INTAKUS FON KBDOM IDEON

Closing 0.02 0.02 0.10 0.05 0.06

% change (week) 52-week high 100.00 0.07 100.00 0.02 25.00 0.19 25.00 0.19 20.00 0.20

52-week low 0.01 0.01 0.07 0.04 0.04

Top 5 TPSA ASSECOPOL EUROCASH BOGDANKA PGNIG

Closing 6.51 43.10 52.50 118.30 5.45

% change (week) 2.68 1.39 -0.38 -1.42 -1.98

52-week high 17.34 50.90 56.25 143.00 6.10

52-week low 6.23 38.80 36.34 114.00 3.63

Bottom 5 AGROTON COALENERG IFCAPITAL EUROMARK BOMI

Closing 3.45 3.70 0.16 0.02 0.02

% change (week) -57.62 -38.33 -33.33 -33.33 -33.33

52-week low 1.13 3.52 0.15 0.01 0.01

Bottom 5 KGHM SYNTHOS KERNEL TAURONPE JSW

Closing 140.20 4.75 53.50 3.90 83.00

% change (week) -16.00 -11.21 -10.31 -9.09 -6.95

52-week high 194.80 6.00 76.00 5.11 101.00

52-week low 92.14 4.29 47.30 3.84 80.00

52-week high 21.90 26.00 10.20 1.86 1.52

sWIG80 Change for the week: -4.52%

Change year to Apr 18: -1.87%

52-week low: 2,147.52

Change year to Apr 18: -1.10%

52-week high: 11,245.80

WIG-Banki

18.04

17.04

15.04

12.04

11.04

10.04

6,160.57 (Apr 18 close)

SOURCE: WSE

18.04

17.04

15.04

12.04

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

28.03

18.04

17.04

15.04

12.04

11.04

10.04

09.04

08.04

05.04

04.04

03.04

02.04

6,100

28.03

6,180

31.0

27.03

31.4

26.03

6,260

25.03

31.8

22.03

6,340

21.03

32.2

20.03

6,420

19.03

6,500

32.6

27.03

52-week low: 5,163.30

26.03

Change year to Apr 18: -8.37%

25.03

52-week low: 31.21

22.03

52-week high: 6,723.16

Change year to Apr 18: -5.42%

21.03

Change for the week: -4.61%

20.03

52-week high: 41.55

19.03

Change for the week: -1.60%

33.0

Adam Narczewski X-Trade Brokers DM SA

0 09.04

0 08.04

0 05.04

0 04.04

02.04

28.03

27.03

26.03

25.03

22.03

21.03

20.03

19.03

18.04

17.04

15.04

12.04

11.04

31.42 (Apr 18 close)

0

52-week low: 8,984.43 0

NewConnect

10.04

09.04

08.04

05.04

10,400

04.04

2,500

03.04

10,560

02.04

2,540

28.03

10,720

27.03

2,580

26.03

10,880

25.03

2,620

22.03

11,040

21.03

2,660

20.03

11,200

19.03

2,700

Jacek Ciesnowski

Z∏oty trades in narrow range

10,415.53 (Apr 18 close)

52-week high: 2,718.31

03.04

2,520.54 (Apr 18 close)

Change for the week: -3.91%

the fall of KGHM shares, which slid a further 7.49 percent. That helped drag down the WIG20 by 1.94 percent, to its lowest level since September of last year. On the same day, the WIG lost 1.81 percent.

Thursday saw more negative macroeconomic news.

Industrial production in Poland in March slowed at a rate of 2.9 percent y/y, which didn’t help stocks. The WIG20 lost 1.54 percent and the WIG 1.26 percent, with coal miner Jastrz´bska Spó∏ka W´glowa being the biggest loser, recording a 5.1 percent drop. Meanwhile, Boryszew’s investors were the happiest of the bunch, with their shares in the industrial company gaining 2.3 percent.

Indices ended up on Friday, but just barely. The WIG20 gained 0.37 percent and the WIG finished with a meager 0.17 percent gain.

Currency report

Other indices mWIG40

17

After the volatile movements in early April, last week was rather calm on the currencies markets.

The season for US companies’ results publications has begun, but so far no big surprises or disappointments have emerged.

The EUR/USD experienced a spike, though, hitting $1.32, its highest level since the end of February. By the end of the week, investors realized their gains and the main currency pair fell back down to $1.31.

On the Polish market a vast amount of macroeconomic data was published last week. Inflation declined to 1 percent on a yearly basis while average wages increased by just 1.6 percent.

Industrial production declined by 2.9 percent in March but this was expected, taking into account the win-

ter slowdown. Still, the data are strong arguments for the Monetary Policy Council to cut interest rates as soon as possible.

The published data had little effect on the z∏oty, though, which traded in narrow ranges against the major currencies. The EUR/PLN stayed in the z∏.4.10-4.12 zone, while the USD/PLN remained in the z∏.3.11-3.16 range.

Little volatility might mean the market is getting ready for a larger move. If it happens, a depreciation of the z∏oty can be expected.

The stock market in Poland is down, so foreign investors will not help the currency. In the upcoming weeks the EUR/PLN could be heading up to z∏.4.15 while the USD/PLN could rise to the range of z∏.3.20. ●

currency rates 3.1722

3.2122

17.04

18.04

3.1652

3.2310 16.04

19.04

3.2125

SOURCE: NBP

3.1821

15.04

3.0

12.04

0.0998 19.04

0.0997

0.0996

PLN-100JPY

3.5

18.04

17.04

0.1003 16.04

15.04

0.1018 12.04

3.3850

3.3777 19.04

0.090

0.1005

PLN-RUB

0.103

18.04

3.3815 17.04

3.3872 16.04

15.04

3.3833 12.04

4.8039

4.8235 19.04

3.35

3.3857

PLN-CHF

3.45

18.04

4.7674 17.04

4.8232 16.04

15.04

4.8453 12.04

3.1529

3.1409 19.04

4

4.8240

PLN-GBP

5

18.04

3.1159 17.04

3.1559 16.04

15.04

3.1537 12.04

4.1150

4.1118 19.04

3.1

3.1502

PLN-USD

3.3

18.04

4.1097 17.04

4.1178 16.04

15.04

4.1200 12.04

4.1

4.1125

PLN-EUR

4.2

18

SPORTS & LIFESTYLE

www.wbj.pl

APRIL 22-28, 2013

Tennis

American football

Roberta Vinci wins Katowice Open

Marquee matchup lives up to billing

Roberta Vinci

The Italian defeated tournament favorite Petra Kvitova Italian Roberta Vinci defeated number-one seed Petra Kvitova 7-6, 6-1, for an upset in the final of the inaugural Katowice Open last week.

It took 69 minutes to separate the two players in a tight opening set before Ms Vinci, number 12 in the WTA rankings, took the tie breaker. The Italian, who is the world number-one-ranked doubles player, with three Grand Slam

wins, stepped up a gear in the second to blow away her higher ranked opponent, taking the set 6-1 to secure her eighth career singles title on the WTA tour.

“I played a really good game today,” Ms Vinci was quoted as saying on the WTA’s official website. “Petra was playing very well and very aggressively in the first set, getting a lot of first serves in, but I stayed with her and won the tie-break,” she said.

“Things were better in the second set, probably because

she was a little bit tired. … But everything was working for me all week. I’m happy I was able to beat such a tough opponent and win this title,” she added.

For Ms Vinci, who is 30 years old and hails from from Palermo, Italy, it looks like the best may be yet to come. She has notched up some significant wins over the past 12 months, winning four doubles titles already this year, including the Australian Open, before adding her first singles title of the year in Katowice.

David Ingham

The most anticipated matchup of the third weekend of games in the Polish American Football League’s Topliga lived entirely up to its billing, as the defending champion Seahawks Gdynia defeated Giants Wroc∏aw 32-28 in the top division’s first 2013 meeting of members of the “Big Four” in Gdynia. The Seahawks moved to 3-0 with the victory.

The lead changed hands four times in the second half, as the last two champions of Poland slugged it out in a game that hopefully portends the kind of football that will be seen in this year’s Topliga playoffs. Gawe∏ Pilachowski scored a pair of touchdowns for the third straight game for the Seahawks, who have now won 13 in a row overall dating back to last season.

While the Seahawks will be pleased with the result, they had no time to rest on their laurels, as they were due to travel

COURTESY OF JACEK STA¡CZAK/PLFA.PL

SHUTTERSTOCK

Gdynia beat Wroc∏aw in an exciting preview of potential playoff foes

Jeremy Dixon carries the ball for the Seahawks in their win over the Giants to Warsaw on April to face the Warsaw Eagles in a rematch of last year’s championship game.

The Giants, on the other hand, will get at least one more chance for revenge later in the year, and possibly even two if these teams meet again in the postseason. In other words, nothing is decided yet.

Elsewhere, The Warsaw Spartans went down to their biggest Topliga defeat so far as they lost 56-6 to Devils Wroclaw in their third match of the season. With a new coaching staff and several new players

dotting the roster, it was the Devils’ first match of the season and it was a happy return, as American running back Xavier Glenn scored five touchdowns.

In the weekend’s other game, Koz∏y Poznaƒ used their trademark defense to get their first win of the season, overcoming a halftime deficit to beat the AZS Silesia Rebels 13-4 in Chorzów. The Rebels became the first team in PLFA history to finish a game with 4 points.

Alex Zarganis

Film festival

Music festival

Life through a lens

Electronic talent

COURTESY OF ORGANIZERS

FreeFormFestival 2013 May 10-11 Soho Factory ul. Miƒska 25, Warsaw Now in its ninth year, the FreeFormFestival is Warsaw’s premier weekend event for all things electronic. Over the years it has been renowned for bringing together some of the best new musical talent while also giving the stage to high profile artists like Goldfrapp, The Orb and The Streets.

10th Planete+ Doc Film Festival May 10-19 The Kinoteka and Iluzjon cinemas, Warsaw One of the most important events on Warsaw’s cultural calendar is the Planete+ Doc Film Festival, renowned for offering audiences the very best in documentary cinema from around the world. Once again, the cream of the entrants from the Berlin, Locarno and Sundance film festivals will be on show, as

well as numerous retrospectives, discussion panels and meetings with the visionaries behind the camera.

This year’s entrants, who will have the opportunity to win prizes in 11 categories, include: “The Act of Killing” a film which details, through the accounts of the perpetrators, how more than one million alleged communists and ethnic Chinese were killed in 1960s Indonesia; “The End of Time” a film from visionary filmmaker Peter Mettler, which

explores our perception of time; “Pussy Riot: A Punk Prayer” which details the wellknown case of the Pussy Riot protestors in Russia, and “A Liar’s Autobiography: The Untrue Story of Monty Python’s Graham Chapman,” an animated film about the life of the late comedy hero Graham Chapman.

David Ingham

For more information about full listings visit the festivals homepage planetedocff.pl

COURTESY OF FREEFORMFESTIVAL.PL

The Art of Killing

The Toxic Avenger

This year’s lineup once again includes some of the hottest musical artists out there, including trip-hop pioneer Tricky, who released his 10th studio album “False Idols” earlier this year, Simon Delacroix, better known by his stage name The Toxic Avenger, an electro-thrash producer and DJ hailing from Paris, and American rapper Azealia Banks, who topped the NME’s 2011 cool list.

There are three stages at the festival, the Grolsch stage,

where the headliners will play, the second stage and the club stage, which is where DJs will entertain crowds until dawn. And all this takes place in the post-industrial setting of the SOHO Factory, which is located in the capital’s artistic district of Praga. Weekend tickets for the festival are priced from z∏.190, while oneday tickets can be purchased DI for z∏.120.

For more information log on to freeformfestival.pl

LAST WORD

APRIL 22-28, 2013

www.wbj.pl

19

Tech Eye

The Aquos Quattron 8-Series Techeye has finally gotten the green light to “pimp” one room of our home. Our beloved wife, also known as She of the Iron Purse, has graciously agreed to let us create a room-sized shrine to technology. And it only took six weeks of non-stop whining to convince her.

Sadly, the space in question is the living room. Fine, OK. But just for the record, O Darling Wife, there’s nothing creepy or unsanitary about installing a big-screen TV, surroundsound speakers and an Xbox 360 with four controllers in a water closet.

Anyway, to paraphrase Confucius, a little pimpage is better than no pimpage at all. We’re going to make the best of the situation by installing a toi-

for $4,000.

Now, conventional wisdom has it that if you’re going to splash out on a nice TV, you should pair it with an equally nice sound system. What conventional wisdom doesn’t have is limited funds.

Techeye’s room-pimping budget will be more or less decimated by a new TV, you see, so we’re going to settle for something modest when it comes to audio. Something like Creative’s T3150 wireless 2.1 Bluetooth Speaker System, which costs an agreeable €70.

That’s not to suggest the T3150

lacks merits beyond its price point.

It’s compact and svelte, yet square, much like a girl we dated in university. We’re also excited by the “down-firing subwoofer,” which “gives your music a boost that is sure to delight your senses.” The downstairs neighbors are just going to love it.

It’s worth noting that Creative markets the T3150 mainly as an accessory for laptops or mobile phones; nevertheless, we’re confident-ish that we can hook it up to a smart TV. Also, be aware that the T3150 has a range of 10 meters from the device it’s connected to; walls, furniture or largeboned people will interfere with the signal.

And with that, Techeye’s budget is almost gone.

However, we may have enough money for one last item – we just have to sell a few of our son’s toys.

The Cube from Asus is a “Google TV media streamer” that “instantly upgrades HDTVs with a wealth of online content.” If you’re The T3150 wireless 2.1 Bluetooth unfamiliar with Google TV, Speaker System it’s basically an Android-

COURTESY OF ASUS

let in the living room.

And then we’re going to purchase an 80-inch Aquos Quattron 8Series TV from Sharp.

This is a 3D -capable unit with a 1080p LED display, but it’s not one of those bleeding-edge TVs with 4K resolution. Let’s just get that out of the way. On the upside, Sharp’s proprietary Quattron color-enhancing technology delivers luscious, crisp images, so you probably won’t care if the TV is a couple pixels shy of 4K. The Aquos Quattron 8-Series contains a dual-core processor, built-in WiFi and 35W audio with a subwoofer. Two pairs of 3D glasses are thrown in the deal, which is approximately two pairs more than most TV makers offer.

You pay a premium for all of the above, of course: $6,500. If you’re feeling thrifty, there’s also a 70-inch Aquos Quattron available

COURTESY OF CREATIVE

COURTESY OF SHARP

Living rooms and technological pimpage

The Cube enabled content platform that lets you access online entertainment. For more info on Google TV, please see: the internet.

Anyway, the Cube – until recently called the Qube – is the first Google TV device to integrate voice search and motion control, with the latter facilitated by a rather complicated remote control. There’s also picturein-picture viewing and games via the Google Play market.

The Cube launches this week in the US, cost: $140. International release and pricing are as yet unspecified, but we expect it’ll head this way soon enough. Hopefully before our wife’s beneficence expires and she reseals the iron purse. ●

Ever whined for six weeks straight? Let us know: techeye.wbj@gmail.com

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