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VOLUME 18, NUMBER 40 • OCTOBER 8-14, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English
WW
W.W
BJ.P
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EXPO REAL SPECIAL EDITION12 pages of real estatenews & analysis, including:
• KSP’s investment plans
• Polish investment market
• GreenWings construction
• ECE’s new shopping center
• Warsaw PPP project
• Home sales slipping
Poland’s commercial realestate sectors all showthe country out ahead ofthe regional pack 12-23
SECTOR ANALYSES:Retail . . . . . . . . . . . . . . .14
Office . . . . . . . . . . . . . . .17
Logistics . . . . . . . . . . .22
PPrreetteennddeerr ttoo tthhee tthhrroonneeLaw and Justice have revealed their candidate
to replace PM Donald Tusk 3
MMoonneettaarryy mmyysstteerryyPoland’s Monetary Policy Council shocked the
market with its decision to keep rates on hold 8, 28
News . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
Business . . . . . . . . . . . . . . . . . . . . . . . . . .4-5
Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Finance & Economics . . . . . . . . . . . . . . . .8
Art in Focus . . . . . . . . . . . . . . . . . . . . . . . .10
Opinion & Analysis . . . . . . . . . . . . . . . . .11
Lokale Immobilia . . . . . . . . . . . . . . .12-23
Interview . . . . . . . . . . . . . . . . . . . . . . .24-25
The List . . . . . . . . . . . . . . . . . . . . . . . .26-27
Markets . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Sports . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Lifestyle . . . . . . . . . . . . . . . . . . . . . . . . . . .30
Last Word . . . . . . . . . . . . . . . . . . . . . . . . .31
In this issue
Prime Poland
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Plus• Yelp enters Poland
• Kubica’s comeback
• Alior looking at IPO
• Growing art market
• Gadu-Gadu going quiet?
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Interview:Juliusz MadejDon’t fault Polish
universities for
graduates’ unprepared-
ness, argues the
president of Lazarski
University 24-25
0
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40
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Cyprus
IrelandSpa
inUK
GermanyEU27
France
Czech R
epublic
PolandRom
ania
OCTOBER 8-14, 2012NNEEWWSS2 www.wbj.pl
Poland gets
LNG loanPolish state-controlled
gas grid operator Gaz-
System has received the
final round of financing it
needs to start building
Poland’s first liquefied
natural gas terminal,
securing a €75 million
loan from the European
Bank for Reconstruction
and Development. The
terminal is expected to
start importing gas from
Qatar in 2014. “What this
project really represents
is a choice for Poland to
receive one third of its
gas from a country other
than Russia for the first
time,” EBRD managing
director for energy and
natural resources
Ricardo Puliti told
Reuters.
Poll: PiS
ahead of PO
The latest TNS Polska
voter survey has Poland's
biggest opposition party
Law and Justice (PiS)
with 39% support, putting
it 6 percentage points
ahead of the ruling Civic
Platform (PO). Third was
the Democratic Left
Alliance with 9% support,
followed by Palikot's
Movement and PO's
junior coalition partner,
the Polish People's Party
– both at 5%
Road projects
at z∏.15 bln
in 2013Some z∏.15 billion will
be spent on road
construction projects in
Poland next year,
Rzeczpospolita
reported, citing General
Directorate for National
Roads and Highways
data. That’s almost half
of what contractors
were promised in 2012
for public projects,
although the real
amount that will go to
their pockets will most
likely be z∏.4 billion
less.
Nuclear
partner talks
French energy giant EDF
has reiterated its interest
in partnering up with
Polish state-controlled
utility PGE in the Polish
nuclear power program,
said Dominique Lagarde,
director of EDF’s nuclear
engineering division,
Parkiet reported. PGE
recently invited all
potential partners for
talks on the current
assumptions for the
project. ●
Abbey House ....................10
Abercrombie & Fitch ........14
Acer ..................................31
Acteeum Central Europe..13
Alior Bank ..........................4
American Eagle
Outfitters ..........................14
Biedecki ..............................6
BPH FIZ ............................22
BRE Bank..........................21
Budimex..............................2
Carlo Tassara Group ..........4
Case Tech..........................22
CBRE ........12, 13, 14, 17, 22
CBRE Global Investors ....13
CFE Polska ......................13
Colliers International 18, 22
Cushman & Wakefield13, 22
DCT Gdaƒsk ......................16
DLA Piper..........................20
Dom Maklerski Citi
Handlowy ............................4
EBRD ..................................2
EC Harris ..........................20
ECE Projektmanagement
Polska ..............................12
EDF ....................................2
Equity Holding ....................5
Ernst & Young Corporate
Finance ............................20
Gadu-Gadu..........................5
Gaz-System ........................2
Ghelamco Poland ............16
Goodman ....................16, 22
GreenWings Offices ..........13
GTC....................................14
Handlowy ..........................28
HSBC ..................................8
Immofinanz Group............12
ING Securities ....................4
JEMS Architekci................13
Jones Lang
LaSalle ..................14, 17, 22
Karmar..............................21
Kernel ..............................28
KGHM................................28
KR Group ..........................19
Kulczyk Silverstein
Properties ........................19
Meble Emilia ....................19
Multi ..................................14
NAI Estate Fellows ..........13
Naspers ..............................5
OKRE Development ..........13
ORTIS ................................12
P.A. Nova ..........................14
PBG ....................................7
Peakside Polonia
Management ....................12
Peter Nielsen & Partners ..6
PGE ................................2, 7
PGNiG ................................7
PKO ..................................28
Poczta Polska ..................13
Polenergia ..........................7
Polimex-Mostostal ............7
Polish Energy Partners ......7
Polski Holding
NieruchomoÊci ................13
Rafako ................................7
REM II................................23
Robyg ................................12
Ronson Development ......21
Samsung ..........................31
SSW ..................................13
TVN....................................28
VGP....................................14
Victoria’s Secret................14
Volvo ....................................4
Warsaw Stock Exchange ..21
Warszawski Holding
NieruchomoÊci ................13
Weng Fine Art ..................10
Westdeutsche
ImmobilienBank ..............12
X-Trade Brokers ..........8, 28
Yelp ....................................5
Tensions have escalated
between Syria and Turkey fol-
lowing a mortar strike
launched from Syria that killed
five Turkish civilians in a resi-
dential district of the south-
eastern Turkish town of
Akcakale. Turkey’s armed
forces responded by firing on
military targets inside Syria,
while also deploying troops
near the border.
The original incident,
which claimed the lives of a
woman and four children, has
raised the specter of a wider
conflagration that could force
the US to deploy troops in the
already volatile region. Fur-
ther mortar rounds were later
fired from Syria into Turkey,
with no casualties reported.
“We hope that this doesn’t
escalate into a broader
conflict; we hope that
the situation de-esca-
lates,” Pentagon press
secretary George Little
said during a news con-
ference.
The shelling “consti-
tutes a cause of greatest
concern for, and is strong-
ly condemned by, all
allies,” NATO ambassa-
dors said in a statement
drawn up during an emer-
gency meeting held at the
behest of Turkey, a NATO
member.
“The alliance continues
to stand by Turkey and
demands the immediate cessa-
tion of such aggressive acts
against an ally, and urges the
Syrian regime to put an end to
flagrant violations of interna-
tional law,” the statement
added.
The meeting was held
under Article 4 of the NATO
charter which deals with situa-
tions where one member state
feels its territorial integrity,
political independence or
security is under threat.
NATO defense ministers
are due to meet in Brussels
this week, where they are
expected to discuss the Syria
question. Being an Article 4
matter, it remains on the
alliance’s agenda.
Syrian authorities have said
they are investigating the
source of the mortar fire, and
have offered their condo-
lences to the family of the
deceased, according to the
state-run Syrian Arab News
Agency. Terrorist groups have
been suggested as a source of
the mortar fire. Some
observers say it may have been
an accident.
In line with NATO’s state-
ment, Poland’s Ministry of
Foreign Affairs condemned
the strike, saying that Poland
expresses its full solidarity with
Turkey.
“We would like to empha-
size strongly that the violation
of another state’s territorial
integrity is inadmissible,” said
ministry spokesperson Marcin
Bosacki.
Poland, itself a NATO mem-
ber, called on Syrian authorities
to adhere to international law
and to take appropriate meas-
ures to restore security along
the Syrian-Turkish border, in
line with the NATO statement.
The Syrian regime is trying
to quell an uprising against the
government of President
Bashar al-Assad, with bloody
consequences.
Poland’s Ministry of For-
eign Affairs has helped organ-
ize a total of three evacuations
from Syria in recent months,
with the latest involving three
Polish citizens. GGaarreetthh PPrriiccee
z∏.11.5 billion is the value of PGE’s flagship energy investment inOpole. The company decided to continue the projectdespite the protests of activists who took the case to
court.
122,000 is the number of Poles living in Ireland, the Irishcentral statistics office reports, making them the
largest minority group in the country.
z∏.10.45 billionis how much the state budget would make per year if
all long-term unemployed were able to find jobs.
12.5-12.6% was the unemployment rate in September, according
to Deputy Labor Minister Jacek M´cina.
“I have the impression this is a matrix.”Ma∏gorzata Kidawa-B∏oƒska, deputy leader of Civic Platform’s parliamentaryclub, commenting on the decision of opposition Law and Justice to announcetheir candidate for PM three years away from parliamentary elections.
Quote of the Week
Turkey strikes back at SyriaThe Turkish parliament has given the country’s governmentthe approval to go to war. As it seeks to retaliate for the killingof its citizens in a mortar attack launched from Syria, ten-sions are escalating in the already volatile region. Log on toWBJ.pl to read an analysis by Stratfor on how the conflictmight develop and whether war is the likeliest outcome.
On WBJ.pl
Numbers in the News
Company index
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8-10 EXPO REAL 2012 Event: This commercial real estate trade fair – one
of the biggest in Europe – focuses on net-working, market orientation and cultivatingvaluable business contacts. Across the64,000-sqm site, 1,610 exhibitors presenttheir real estate product portfolios.
Location: Messe München, MunichWeb: Exporeal.net
10-11 INTERNATIONAL FORUM ON PUBLIC-PRIVATEPARTNERSHIPS
Event: Organized by the British Polish Chamber ofCommerce, this event will focus on interna-tional, municipal and regional infrastructure.
Location: Column Hall of the Ministry of Economy, PlacTrzech Krzy˝y 3/5, Warsaw
Web: bpcc.org.pl
16 YOUNG ART AUCTIONEvent: This auction of a diverse set of works
includes both well-known young artists anddebutantes, who have graduated from fineart academies in recent years. Ninety-eight
selected works by young painters will beauctioned. The starting price of each isz∏.500.
Location: ul. Marsza∏kowska 34-50, WarsawWeb: desa.pl
24-28 FASHIONPHILOSOPHY Event: FashionPhilosophy Fashion Week Poland is
the biggest fashion event in the region, sayorganizers. This event will presentSpring/Summer 2013 trends.
Location: ¸ódêWeb: fashionweek.pl
25 OFFICE BUILDINGS IN POLANDEvent: This 5th edition of the conference, organized
by Nowy Adres, will feature over 30 expertspeakers, as well as a number of lecturesand panel discussions. It promises to be agreat meeting opportunity for senior man-agement of companies in the Polish officemarket.
Location: Warsaw Marriott HotelWeb: konferencje.nowyadres.pl/office-buildings-in-
poland.php
October
DATELINE
Turkey-Syria border tensionIN THE SPOTLIGHT
Figures in focusService economiesPercentage of labor force employed in the market servicesindustry in 2011, selected EU27 countries
Source: Eurostat
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President Bashar al-Assad of Syria
OCTOBER 8-14, 2012 NNEEWWSS www.wbj.pl 3
Politics
PiS announces candidate for PMElections are in threeyears, but that isn’tstopping Poland’slargest oppositionparty from trying tooust Donald Tusk
Opposition party Law and Jus-
tice (PiS) has announced Piotr
Gliƒski, a sociology professor
previously unknown to most
political observers, as its candi-
date for prime minister of a
technocratic government the
party says Poland now needs.
“We have a situation which
demands change … [The situa-
tion] demands creating a non-
parliamentary government,”
said PiS leader Jaros∏aw
Kaczyƒski while introducing Mr
Gliƒski to the public.
PiS has said it will initiate a
no-confidence vote against
Prime Minister Donald Tusk
and his government. The next
parliamentary elections are
scheduled in 2015.
Meanwhile, Mr Gliƒski
pointed to five issues his gov-
ernment would tackle immedi-
ately. Top of the list would be
replacing the “ineffective” gov-
ernment of Donald Tusk with a
technocratic government, then
immediately implementing
decisions to counter the eco-
nomic and social crisis, improv-
ing public administration, pre-
senting a vision and strategy for
Poland’s development and
changing the “style” of politics
in government.
“We must not only deal with
the crisis. We must change
Poland,” said Mr Gliƒski.
But in order to get rid of Mr
Tusk, PiS would need the sup-
port of all the other opposition
parties in parliament, as well as
the votes of four MPS in the
current ruling coalition.
A ‘joke’However, Janusz Palikot,
leader of the third-largest party
in parliament, has dismissed the
idea off-hand, calling Mr Gliƒs-
ki’s candidacy a “joke.” The rul-
ing party, Civic Platform (PO)
reacted in similar fashion.
“Professor Gliƒski now
believes he can be prime minis-
ter despite a stable coalition
that has a parliamentary major-
ity. I have the impression this is
a matrix,” said Ma∏gorzata
Kidawa-B∏oƒska, deputy leader
of PO’s parliamentary club.
The Gliƒski candidacy is
widely perceived as part of what
PiS has dubbed its “autumn
offensive.”
This week, the party was
scheduled to hold a debate on
the condition of the health care
sector in Poland. Two weeks
ago it organized a debate on the
challenges facing Poland’s
economy. The latest TNS Pols-
ka voter poll had PiS with 39
percent support and PO at 33
percent.
RRAA
EA
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PiS’s candidate for Prime Minister, Piotr Gliƒski
The economy
Finance minister seessignificant rebound in 2014But Jacek Rostowskiexpects the next twoyears to be tough forthe Polish economy
Finance Minister Jacek Ros-
towski has said there is “every
reason to believe” that the
years 2014-2015 will be better
for Europe and should usher
in a “significant rebound” for
the Polish economy. The
finance minister made the
comments at an economic
debate organized by the oppo-
sition Democratic Left
Alliance (SLD) party.
“We will have a tough 2012
and a tough 2013, with a signif-
icant slowdown, we are aware
of this,” said Mr Rostowski
before making his more opti-
mistic forecast for the subse-
quent years.
However, economists say a
lot depends on how the word
“significant” is defined in this
context, and how the global
economic crisis plays out.
Witold Or∏owski, chief eco-
nomic advisor at PwC, who
was also at the debate, said it is
“unlikely that Polish GDP
growth will return to 5-7 per-
cent if Western Europe does
not solve its problems.”
Mr Or∏owski, who also
serves on the economic coun-
cil which advises Prime Minis-
ter Donald Tusk, said the way
Poland is handling economic
problems during the crisis is a
“miracle.”
He also said that Poland,
paradoxically, had done more
catching up with the West in
the recent years of crisis than
during any other period in its
post-communist history. “We
have been developing slowly
while they have regressed,” he
said.
Mr Or∏owski sees four
major issues that need urgent
reform in Poland: public serv-
ices like education and health-
care, public administration
and the justice system,
Poland’s business climate and
a rethink of the country’s role
in Europe.
Meanwhile, SLD leader
Leszek Miller, who hosted the
debate, was categorical on
where his party stands regard-
ing the economy. “No to
democracy in accordance with
the market, yes to the market
in accordance with democra-
cy,” said the SLD leader dur-
ing the debate.
Mr Miller said it was
important to find a “new com-
promise between the rationali-
ty of the markets and the
rationality of societies which
are finding it increasingly diffi-
cult to accept the constant
belt-tightening.”
RReemmii AAddeekkooyyaa
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Mr Rostowski expects 2012 and 2013 to be “tough”
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The automotive giantplans to shutter itsplant in Säffle due tolow demand in Europe
Automotive company Volvo
plans to close its bus manufac-
turing facility in Säffle, Swe-
den and concentrate produc-
tion at its main plant in
Wroc∏aw, western Poland.
Volvo says its decision to
increase bus production in
Poland comes as a result of
low demand and strong com-
petition in Europe. Production
in Säffle will cease at the end
of June 2013, provided that
negotiations with unions are
completed in time.
The move will affect 330
permanent employees and
some 60 consultants.
“The demand for new
buses in Europe has dropped
steadily over the past few
years, paralleled by consider-
able pressure on prices, partic-
ularly in the Nordic markets,”
Hakan Karlsson, president of
Volvo Bus Corporation, said in
a statement.
“By concentrating the pro-
duction of complete buses in
one single plant, we can reduce
our costs and thus reverse our
negative profitability trend,”
he added.
Volvo Buses predicts that
volume growth in Europe will
remain low in the coming years
and that price pressure will
continue, the company wrote.
By focusing all production
on the much larger plant in
Poland, it expects to achieve
the economies of scale “that
are essential in order to tackle
the increasingly tough compe-
tition on the market.” The
plant in Poland has four times
the capacity of the one in Säf-
fle.
Local media report that the
plant in Wroc∏aw, which has
until this point operated at half
capacity, will now see an
increase in production vol-
umes, although headcount is
not expected to increase from
the current level of 1,550. The
company could not be reached
for comment.
Volvo Group’s operating
profit in the fourth quarter of
2012 is expected to take a hit of
about 100 million kronor if
production is relocated accord-
ing to schedule.
GGaarreetthh PPrriiccee
OCTOBER 8-14, 2012BBUUSSIINNEESSSS4 www.wbj.pl
Bus manufacturing
Volvo to move bus productionfrom Sweden to Wroc∏aw
Banks
AAlliioorr BBaannkk mmuullllss IIPPOOaass ssaallee ttaallkkss ssttaallll
Alior Bank is no closer to find-
ing a buyer, though bids were
due on September 7, local
media reported last week, and
the lender is now considering
listing on the stock exchange.
Business daily Parkietreported that Alior’s owner,
Italy’s Carlo Tassara Group,
expects some z∏.4 billion
(about €1 billion) for the bank.
However, none of the potential
buyers, mostly private equity
funds, were willing to offer that
much, the newspaper said.
When WBJ contacted Alior
to ask about the reports, the
firm’s spokesperson, Dariusz
Kozdra, said, “The bank is tak-
ing all possible development
scenarios in the future into
consideration, but no decisions
have been made as of yet.”
Analysts said the offers for
the bank are lower than Carlo
Tassara expects because of
unfavorable market condi-
tions.
“Alior could be considering
an IPO because they need cap-
ital to fund further growth and
the main shareholders may
want the IPO,” said Andrzej
Powier˝a, an equity analyst at
brokerage house Dom Makler-
ski Citi Handlowy.
Another factor that could
potentially push the bank
towards an IPO is the strong
opposition of Poland’s finan-
cial market regulator, the
Financial Supervision Auth-
ority, to private equity funds
becoming major stakeholders
in banks.
“The problem with private
equity funds is that they have
a limited knowledge about
the banking business so they
don’t provide the know-how
which is invaluable for strate-
gy,” said Piotr Palenik, bank-
ing sector analyst at ING
Securities.
IIzzaabbeellaa DDeeppcczzyykk
Potential buyers are offering less than theasking price, leading Alior to consider an IPO,local media report
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The Wroc∏aw plant has four times the production
capacity of Volvo’s facility in Sweden
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Unfavorable market conditions have led to
disappointing offers for Alior Bank
The Polish instantmessagingservice hasincurredsubstantiallosses in thepast fewyears
The owner of Pol-
ish instant messag-
ing service Gadu-
Gadu has laid off a large
number of employees,
according to daily Puls Biznesu.
The company underwent a
deep restructuring last week,
and from a team of 300 only 60
employees are left, the news-
paper wrote without citing its
sources.
“We have made a lot of
changes as a result of the eco-
nomic slowdown and the wors-
ening situation on the advertis-
ing market, and [with changes]
come layoffs,” said Jaros∏aw
Rybus, Gadu-Gadu’s spokes-
person. He did not confirm the
actual number of employees
who were made redundant.
The company has been
experiencing financial trou-
ble ever since 2009, when it
reported losses of z∏.6 million.
Gadu-Gadu, which now is
officially called GG, was
launched in 2000. Its creator
was ¸ukasz Foltyn, and the
project was financed by Equity
Holding. Equity Holding
made the company public, and
then sold it to Naspers. To this
day GG is the leader in the
Polish instant messaging mar-
ket, through which hundreds
of thousands of instant mes-
sages are sent daily.
IIDD
Web-based business
YYeellpp eenntteerrss PPoolliisshh mmaarrkkeett The company wants togain a strong footholdbefore it startsthinking aboutmonetizing its onlinedirectory service
Yelp, an online city guide that
helps connect consumers with
local businesses, began operat-
ing in Poland last week.
Founded in the US in 2004,
Yelp is an online directory of
local businesses such as restau-
rants, shops, bars, and other
service outlets that gives mem-
bers the opportunity to rate
and review the places they
visit. Yelp has 78 million
online visitors every month.
From last week, Poles have
been able to register at
Yelp.pl, as well as download it
as an app for iPhones and for
Android-operated cell phones.
Yelp’s new markets vice
president Miriam Warren said
that entering Poland was a nat-
ural choice, considering that
Poland has relatively high eco-
nomic growth, and has avoid-
ed falling into recession
despite the ongoing global
economic slowdown.
“The industriousness of the
Polish people, their openness
to new technologies as well as
the fact that there isn’t anoth-
er site like this [in Poland],
were our reasons for entering
the Polish market,” she added.
Development firstAlthough in the US, the UK,
Canada and Ireland, business-
es are able to advertise on
Yelp, this will not be possible
in Poland right away, since the
company’s priority is not to
monetize but to develop the
service.
“Our real focus here in
Poland for the near future is to
create the best local guide –
and it is tough to give a date
for now when we will start to
sell. It is not going to be any
time soon,” Ms Warren said.
Analysts are skeptical about
the possibility of the service
meeting with success in Poland.
“The problem with foreign
online services is that they
wrongly assume that if a serv-
ice worked in their country, all
they need to do is translate it
and it will be a success else-
where,” said Sylwester Kozak,
an IT market analyst at portal
e-biznes.pl. “Take for example
the complete failure of eBay in
Poland,” he added.
Moreover, Yelp will not
have an office in Poland,
meaning its knowledge of the
local market is likely to be lim-
ited, Mr Kozak said.
He explained that if such a
firm doesn’t have a base in the
country in which it is present,
then it is less likely to be suc-
cessful because it will be less
able to understand what
appeals to local internet users.
He added that what deter-
mines the success of such a
portal is its marketing, and so
far Yelp hasn’t been advertised
at all.
Poland is the 18th country
that Yelp is entering and the
first CEE country in which the
service has been made avail-
able. IIzzaabbeellaa DDeeppcczzyykk
OCTOBER 8-14, 2012 BBUUSSIINNEESSSS www.wbj.pl 5
Instant messaging
Gadu-Gadu carriesout large-scalelayoffs: daily
Everybody would like to pay less
taxes. However, investors that have
decided to conduct business or spe-
cific projects in Poland through a
limited joint-stock partnership
(“LJSP”) to optimize their taxes
now have a tough nut to crack.
Currently, just as every other
partnership type in Poland, LJSPs
do not pay a corporate income tax
(“CIT”), like capital companies do.
Their profits are taxed only when
they are distributed to partners or
shareholders. However, this may
soon change, as the Ministry of
Finance has proposed legislation
which, if it comes into force, will
turn taxation rules applicable to
LJSP upside down.
Profits taxed twiceAccording to the Ministry of
Finance’s draft legislation, dated
August 24, 2012, LJSPs will be
equated with the capital companies
in the way they are taxed. As a
result, LJSPs’ profits will, in effect,
be taxed twice.
Firstly, the LJSP itself will pay
CIT from retained earnings.
Secondly, each partner or share-
holder of the LJSP will pay tax indi-
vidually upon any payment of a div-
idend made from the LJSP’s profit
(already taxed by CIT). The am-
endment is very likely to come into
force as of January 1, 2013.
Under the proposed new rules,
LJSPs will have to pay advance CIT
payments towards their profits. This
may affect the liquidity of LJSPs and
reduce their ability to make invest-
ments. Currently, advance payments
are neither applicable to LJSPs, nor
to their partners or shareholders.
The new taxation rules will apply to
all LJSPs, including those whose
financial year does not correspond
to the calendar year. As a result,
they would be forced to close their
accounting books on December 31,
2012 and start a new financial year
from January 1, 2013.
Other benefitsThis all begs the question: Will
LJSPs stand the test of time or will
they vanish from the market? Just as
a reminder, LJSPs were introduced
to the Polish legal system in January
1, 2001. More than 2,000 LJSPs
have been incorporated to date, and
this number has been increasing at a
rate of about 40 percent per year
starting from 2010. However,
regardless of the tax issues, there are
more reasons for the popularity of
this form of partnership.
First of all, LJSPs, as a form of
partnership, have many elements in
common with capital companies.
This allows the partners/shareholders
to combine advantages of both forms.
The general partners of an LJSP are
jointly and severally liable without
limitation for the debts and obliga-
tions of the partnership; they repre-
sent the partnership and manage its
affairs, just as partners in registered
partnerships.
However, shareholders are not
liable for any obligations of the
partnership and their liability is
limited only to money they
brought to the partnership in
return for shares. Furthermore,
LJSPs facilitate fund-raising from
a large number of investors,
including small and anonymous
ones, since they may issue shares
in exactly the same manner as a
joint-stock company. They may
also go public by offering shares to
the stock market.
Next stepAt least a few options are possible
for businesspeople. They can main-
tain their LJSP, which will be less
attractive than other forms of part-
nership from the taxation point of
view, but still combines advantages
of a partnership and a capital com-
pany. They can transform its busi-
ness into a capital company to
make full use of its tools and pay
tax according to the same rules as
will most likely applicable for
LJSPs from January 1, 2013.
Or, if they really want to pay less
taxes, they can transform the
LJSP’s business into a limited part-
nership to avoid payment of CIT.
After all, a limited partnership’s
flexibility enables it to form a tai-
lored-fit structure with profit shar-
ing and limitation of liability, some-
what resembling an LJSP, without
any prejudice to taxation rules cur-
rently applicable to all partner-
ships. ●
OCTOBER 8-14, 2012LLAAWW6 www.wbj.pl
Contact: Miros∏aw Stefanik
ms@pnplaw.pl
Legal News
BROUGHT TO YOU BY PETER NIELSEN & PARTNERS LAW OFFICE
Waste management rulesOn October 2, the government adopteda draft of a new act on managing pack-aging and packaging waste. With someexceptions, the provisions of the actcover all packaging introduced to thePolish market (regardless of the type ofmaterial) as well as the waste createdby such packaging. The act will not beapplicable to products in packagingimported to Poland and in the sameyear exported out of the country. At thesame time, companies that producepackaging weighing up to 1,000 kg peryear will be released from the obliga-tion of recovering and recycling a cer-tain level of waste.
Moreover, financial penalties will beintroduced, from z∏.5 up to z∏.500,000,for violating provisions of the act. Thegovernment assumes that thanks tothe new regulations, the number ofentrepreneurs fulfilling their duties withregard to recycling and recovery willincrease.
If a national holiday falls ona day off, additional time offis dueOn October 2, 2012 the ConstitutionalTribunal recognized the application ofthe National Commission of NSZZ Soli-
darnoÊç (a trade union) and decidedthat art. 130 § 21 of the act of June 26,1974 (the Labor Code), was inconsis-tent with art. 32 item 1 of the constitu-tion (case file no. K 27/11).
Starting from January 1, 2011 theabove-mentioned provision of theLabor Code was used by the govern-ment as the basis of a law whichdenied employees a compensatory dayof leave for any national holiday whichfell on a day that was already free fromwork. The Tribunal claims that the legis-lator re-established Epiphany as anadditional day statutorily free fromwork. At the same time, however, itdenied employees a day off in obser-vance of a national holiday, if thatnational holiday fell on a day that wasalready free from work, depending onthe work schedule of a given employ-ee.
The Constitutional Tribunal foundthat this violated the rule of equal treat-ment, because some employees havedays off work between Monday and Fri-day. Previously, all employees in Polandwere entitled to take a day off in obser-vance of a national holiday, if the holi-day fell on a day free from work.
The decision is final and it will beannounced in the Journal of Laws. ●
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decisions; assisting clients in changing the legal set up of their business activities e.g. transformation of branches/partnerships into corporations or vice versa, trusteeships as well as business appraisals, economic and financial analysis, due diligences valuation of business within privatization or restructuring procedures, providing trainings.
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Black clouds over limited joint-stock partnershipsLegal Forum
Legal Forum is a paid-for module which gives law firms in Poland an opportunity to discuss and inform readers about important developments in the market. The content is created in consultation with Warsaw Business Journal's editorial staff.
OCTOBER 8-14, 2012 EENNEERRGGYY www.wbj.pl 7
Kulczyk acquires wind energy
firm for over z∏.400 millionPolenergia, a firm controlled by
Jan Kulczyk, Poland’s richest
man, has purchased a 58 per-
cent stake in wind energy hold-
ing company Polish Energy
Partners (PEP) in a deal worth
z∏.406 million.
Polenergia had earlier
hoped to buy 80 percent of PEP
– for over z∏.700 million – in
order to allow it to delist the
company, Reuters reported.
But Mr Kulczyk’s firm failed to
persuade the required number
of PEP shareholders to relin-
quish their stakes.
“Buying a 58 percent stake
gives us control and assures the
possibility of realizing our strat-
egy,” the Polish Press Agency
quoted Polenergia CEO Dar-
iusz Mioduski as saying. He
added that the company is not
planning to launch a bid for the
remaining PEP shares.
PEP is at the head of a capi-
tal group which produces elec-
trical energy in wind farms. It
operates wind farms with an 80
megawatt (MW) capacity and
plans to increase that to 100
MW next year.
After the announcement of
the deal, Polenergia released a
statement saying that it had
“achieved [its] goal” with the
purchase. “We will have a deci-
sive voice in the activity and the
development of the company,”
the statement read.
Before the transaction went
through, Polenergia Holding
had to apply for the approval of
Poland’s consumer watchdog,
the Office of Competition and
Consumer Protection, which it
has now received.
RRAA
Economy Ministry to forcePGNiG to sell 30 percent ofgas on new exchangePoland’s Economy Ministry
will order gas monopoly
PGNiG to offer 30 percent of
its sales on the country’s
planned gas exchange in an
effort to speed up the liberal-
ization of the gas market,
Reuters reported last week.
The legislation that would
usher in the changes is expect-
ed to be accepted by the Pol-
ish government by October
17. The European Commis-
sion has threatened to fine
Poland up to €270,000 next
year if it does not liberalize
gas prices, which are capped
by the Energy Regulatory
Office.
PGNiG, which is a state-
controlled firm, sells nearly all
of the gas available in Poland.
Seventy percent of the gas
goes to industry and the rest
to individual customers.
Poland plans to establish
the gas exchange before the
end of the year and to address
the EC’s complaints by weak-
ening the dominant position
of PGNiG in the market,
where demand totals more
than 14 billion cubic meters.
After the legislation is
accepted by the government it
will go on to parliament for
approval, where it is expected
to pass without difficulty.
RRAA
Power-plant construction
Renewed PGE projectis lifeline to firmsPoland’s largest utilitywill move forward witha project that will givetwo troubled firms alift
Energy group PGE has
announced that despite envi-
ronmental activists’ protests, it
will carry on with an z∏.11.5 bil-
lion investment in the south-
ern Polish city of Opole. The
investment, for the construc-
tion of coal-fired power units,
could help save troubled Pol-
ish builders Polimex-Mostostal
and PBG, who have incurred
huge losses as a result of their
involvement in infrastructure
projects for this year’s Euro
2012 soccer tournament.
The announcement came
after Poland’s Supreme
Administrative Court (NSA)
overturned a previous order to
halt the construction of the
two 900MW units for PGE’s
Elektrownia Opole power
plant and sent the case back
for retrial.
A consortium led by PBG
subsidiary Rafako won the
tender for the construction of
the coal power units, only to
have activists appeal against
the investment’s environmen-
tal permits. Rafako is a boiler
manufacturer and a key part
of the PBG group, which was
the main contractor for
Poland’s National Stadium
and is now facing bankruptcy.
The firm had a z∏.1.6 billion
net loss in the first half of 2012.
The fact that PGE has now
said it will move forward with
the construction is welcome
news for the firms involved in
the project, not only for
Rafako and PBG but also for
Polimex-Mostostal, which suf-
fered a z∏.389 million net loss
in Q2 of this year and was also
rumored to be facing bank-
ruptcy.
ClientEarth Poland, the
foundation that has been
blocking the investment, has
already announced it will con-
tinue to oppose PGE’s project
in Opole. The next round in
the battle will take place in the
voivodship administrative
court, which has said it will
take on the case no sooner
than January. RReemmii AAddeekkooyyaa
SH
UT
TE
RS
TO
CK
Environmentalists vehemently oppose the
construction of the coal-fired units
OCTOBER 8-14, 20128 www.wbj.pl FFIINNAANNCCEE && EECCOONNOOMMIICCSS
Industrial output
Manufacturing outputcontinues to fall sharplyPolish factories arepulling back as neworders slump
Poland’s manufacturing PMI
dropped to 47 points in
September, its worst reading
since the height of the crisis in
Poland – July 2009 – as the
country’s economy continues
to show signs of a sharp slow-
down.
The fall to crisis-period
lows is “a negative surprise
even compared to already neg-
ative expectations,” said Agata
Urbaƒska, an economist for
Central & Eastern Europe at
HSBC, in an e-mailed state-
ment.
The PMI measures the per-
formance of the manufactur-
ing sector, and anything below
a score of 50 indicates contrac-
tion. HSBC and Markit, the
companies that compile the
survey, found that output, new
orders and backlogs all
declined at faster rates than in
August, while employment in
the sector fell for the first time
since March.
The report that the compa-
nies issued along with the
release of the figures made for
some ugly reading. “Inflows of
new orders deteriorated more
sharply in September. The vol-
ume of new work has declined
every month since February,
and the rate of contraction in
the latest period was the steep-
est since June 2009. New
export business declined for
the sixth successive month,
with the pace unchanged for
the second period running,” it
read.
Output has fallen every
month since May. In Septem-
ber, new orders dropped
sharply, the report found,
prompting manufacturers to
work through their backlogs
rather than produce more.
“This reading follows
below-expectation industrial
production growth in August
and feeds expectations for
this growth rate turning neg-
ative in September as fore-
cast by the economy min-
istry,” said Ms Urbaƒska.
“[T]he leading indicators
domestically and abroad,
among them PMI, still give
no indication of the econom-
ic slowdown bottoming out
in the near future,” she
added.
AAnnddrreeww KKuurreetthh
45
50
55
Sep. '1
2Aug
. '12
Jul. '12
Jun. '1
2May
'12Ap
r. '12
Mar. '12
Feb. '1
2Jan
. '12
Dec. '11
Nov. '11
Oct. '11
Sep. '1
1
*
Producing worryPoland’s manufacturing PMI, September 2011-September 2012
Source: Markit, HSBC
*Anything above 50 indicates expansion, below 50 indicates contraction
Interest rates
NBP surprises, holds main interest rate steadyAnalysts now expect arate cut in November
In a decision that surprised the
market, the National Bank of
Poland’s interest-rate setting
Monetary Policy Council
(RPP) decided to leave its
main interest rate unchanged
at 4.75 percent last Wednes-
day.
In recent weeks there has
been a parade of macroeco-
nomic figures showing that
Poland’s economy is in slow-
down mode. Just last Monday,
Poland’s manufacturing PMI
reading dropped to 47, its low-
est since the height of the crisis
in Poland, in July 2009.
Taking the slowdown into
account, most analysts had
expected the RPP to lower
rates by 25 basis points.
After it was announced
rates would be left on hold, the
z∏oty gained against major cur-
rencies.
The decision was a bigger
surprise than the one the RPP
made in May, when it decided
to raise rates by 25 basis
points, Przemys∏aw Kwiecieƒ,
chief economist at X-Trade
Brokers said in an e-mailed
statement in reaction to the
decision. He titled his report
“The council from another
world,” referring to the
Monetary Policy Council.
“There is now hard evi-
dence [of a slowdown in
Poland],” he wrote, “but the
council continues to wait.”
It a statement released
with the announcement, the
NBP indicated that it left
rates on hold because infla-
tion remains at 3.8 percent,
well above its target of 2.5
percent.
The statement had a most-
ly dovish tone, however, and
analysts now expect the RPP
to cut rates by 25 basic points
at its November meeting.
AAnnddrreeww KKuurreetthh
Oct. '12
Sep. '1
2Aug
. '12
Jul. '12
Jun. '1
2May
'12Apr
. '12
Mar. '12
Feb. '1
2Jan
. '12
Dec. '11
Nov. '11
Oct. '11
Sep. '1
1Aug
. '11
Jul. '11
Jun. '1
1May
'11Apr
. '11
Mar. '11
Feb. '1
1Jan
. '11
Dec. '10
Nov. '10
Oct. '10
3.0
3.5
4.0
4.5
5.0
Still on holdPoland's reference interest rate, October 2010 to October 2012 (%)
So
urc
e:
Na
tio
na
l B
an
k o
f P
ola
nd
OCTOBER 8-14, 201210 www.wbj.pl AARRTT IINN FFOOCCUUSS
Art market
PPoollaanndd’’ss aarrtt mmaarrkkeettsseett ffoorr rreennaaiissssaannccee
Though still anabstract concept formany Poles, investingin art is growing inpopularity
Investing in art is still a rela-
tively new concept in post-
communist Poland, but
experts who gathered at last
month’s International Art
Industry Forum in Vienna
agreed that it is quickly
becoming a popular form of
investing money and diversify-
ing portfolios among the coun-
try’s affluent.
Poland’s art investment
market is nevertheless still in
its “early stages,” said Jakub
Kokoszka, president of the
board at auction house Abbey
House, and a guest speaker at
the Vienna forum.
Its fledgling nature is due
to Poland’s tumultuous history
and stymied economic devel-
opment – factors which mean
there has been little money
spent on educating people
about the value of art. Conse-
quently, a strong tradition of
collecting artwork has not
developed in Poland.
“There is no deeply rooted
collecting habit in Poland as
there is in Austria, for exam-
ple,” said Sergey Skater-
schikov, CEO of Skate’s Art
Market Research.
In addition, the customer
base for artwork is small, and
“their pockets are not so
deep,” said Andras Szanto,
curator of the International
Art Industry Forum in New
York.
Moreover, with some not-
able exceptions, Polish art is
not well known among wealthy
international investors.
“International investors,
those who can afford the more
expensive pieces, tend to look
first to artists they know, to
those who have the backing of
established galleries and art
institutions,” he added.
Growth in storeNevertheless, the Polish art
market has been growing
quickly of late. Turnover on
Poland’s art auction market
increased 90 percent, from
z∏.15.8 million in the first half
of 2011, to z∏.30.1 million in
H1 2012, according to a report
by Abbey House.
Mr Szanto said that there is
more growth in store, while
other experts said that
Poland’s art market is one of
the fastest growing in Central
and Eastern Europe.
“The Polish market has
more momentum than the
Hungarian or the Czech art
markets for example,” said
Christian W. Roehl, superviso-
ry board member of German
art dealer Weng Fine Art.
Poland’s relatively strong
economy is helping underpin
this growth.
“Poland is one of the most
interesting economies in
Europe these days. I happen
to manage money out of Lux-
embourg and [when it comes
to stocks] … Poland is our sec-
ond priority market after Ger-
many in terms of value and
growth that we see there,” said
Mr Skaterschikov.
He added that Poland’s art
market shouldn’t in fact be
put in a basket with its CEE
peers, but should instead be
compared with those in
Western Europe.
“Art is the most popular
alternative asset group, as
investing in art is motivated
by the need to secure capital
from the crisis,” said Maciej
Gajewski, an art market ana-
lyst at Abbey House.
“The crisis has given impe-
tus to the global art market,
and Poland is beginning to
reflect this trend,” he added.
IIzzaabbeellaa DDeeppcczzyykk
SH
UT
TE
RS
TO
CK
Turnover on
Poland’s
art auction
market
(z∏. mln)
Increase
of 90%
Source: Abbey House
OCTOBER 8-14, 2012 OOPPIINNIIOONN && AANNAALLYYSSIISS www.wbj.pl 11
Nobody can accuse Poland’s largest opposi-
tion party of sitting back lately.
Two weeks ago, it organized a much-publi-
cized debate to discuss Poland’s economic
problems. Then it spent the next few days ener-
getically lambasting Prime Minister Donald
Tusk for “mishandling” the aftermath of the
2010 Smolensk airplane catastrophe, in which
President Lech Kaczyƒski and 95 others died.
On September 29, it organized a protest
march involving anything from 50,000 to
100,000 people, along with the controversial but
influential Father Tadeusz Rydzyk and the leg-
endary Solidarity trade union.
Last Monday, PiS unveiled its surprise can-
didate for prime minister, Piotr Gliƒski, a soci-
ology professor who is not a member of the
party. This came despite the fact that elections
are three years away.
Party leader Jaros∏aw Kaczyƒski now says
his party will soon initiate a no-confidence
vote against Mr Tusk and announce its shadow
cabinet.
Meanwhile, this week, PiS was scheduled to
host another debate, this time on the condition
of the health care system, a topic which no
doubt concerns millions of Poles.
Is all this having any effect? A TNS Polska
poll taken at the beginning of October showed
PiS with 39 percent support while the ruling
Civic Platform (PO) was backed by 33 percent
of the Polish electorate.
PO backers in the media are now blasting it
for “sleeping”while PiS runs riot.
It will of course take a few more polls to con-
firm if PiS can indeed overtake PO in the longer
run.
PiS, the trendsetter?But other opposition parties clearly envy the
media attention PiS has been receiving. In fact,
the Democratic Left Alliance (SLD) shame-
lessly copied its idea, organizing its own eco-
nomic debate last week.
PiS, supposedly the old-fashioned party out
of place in today’s politics, is now playing the
role of trendsetter?
As for Mr Gliƒski, he must know he won’t
become PM. And so does PiS. But his candida-
cy could benefit the party politically.
Mr Kaczyƒski knows that although he has
guru-like status among his supporters (roughly
a third of the electorate), the rest of the country
doesn’t think much of him, evidenced by popu-
larity polls.
He thus seems to be saying to Poles: “Don’t
worry, even if my party wins, you won’t have me
as prime minister.”
This could, in theory, help PiS during the
next parliamentary elections by weakening
turnout for PO, which wins elections largely on
the anti-Kaczyƒski vote, not because it is itself
overly popular.
Also, PiS is often derided as the party of the
uneducated and frustrated. Presenting a calm
professor as its candidate for prime minister
could impress some among the conservative-
minded intelligentsia.
Where’s the consistency? Still, there are many “buts” to this plan.
First of all, PiS still makes it too easy for its
political opponents to caricature it, due to radi-
cal moves such as taking part in controversial
marches like that on September 29.
Even conservative-minded intellectuals
must cringe at the sight of Mr Kaczyƒski march-
ing alongside Father Rydzyk, who has made
several public xenophobic and anti-Semitic
statements in the past.
Pop singers need to have a cohesive image;
so do politicians. You can’t be “street” one day
and play posh the next without confusing peo-
ple about who you really are.
Secondly, observing Mr Kaczyƒski leaves
you in no doubt as to his ambitions to play the
alpha male role. Before the 2005 parliamentary
elections he promised that if his brother Lech
was elected president, he would not become
PM even if PiS won the vote.
Both Lech Kaczyƒski and PiS did win. And
although Mr Kaczyƒski initially installed Kaz-
imierz Marcinkiewicz, who was little-known at
the time, as PM, he removed him a year later
and took over. Why should Poles believe this
time will be any different?
That said, PiS does seem to have sharpened
its game recently. That is good, since it should
keep the current government on its toes. But
“believability” is Mr Kaczyƒski’s biggest prob-
lem. Most Poles just don’t believe anything he
does or says. Until Jaros∏aw Kaczyƒski finds a
way to change that, he will remain as far from
the prime minister’s seat as his candidate, Mr
Gliƒski. ●
Remi Adekoya is Warsaw Business Journal’s politics editor.
Read his blog, “The business of politics” on WBJ.pl
Can a hyperactive PiSoverthrow the ruling party?
MANAGING EDITORGARETH PRICE(GPRICE@WBJ.PL)
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PRINT & DISTRIBUTION COORDINATORKRZYSZTOF WILI¡SKI(DYSTRYBUCJA@VALKEA.COM)
BOOK OF LISTS SPECIALISTJOANNA RASZKA(JRASZKA@VALKEA.COM)
PUBLISHER VALKEA MEDIA SAEDITOR-IN-CHIEF ANDREW KURETH (AKURETH@WBJ.PL)MANAGING DIRECTOR MONIKA STAWICKA
Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should
be sent to editor@wbj.pl. Please include a name and contact information and clearly indicate if they are to be considered for publication.
Should Europe be fracking?The global energy community is abuzz with
excitement about hydraulic fracturing, or
“fracking,” a newish technology that has opened
formerly inaccessible reserves of gas trapped in
underground shale formations. The boom in this
so-called shale gas production has allowed the
United States to become almost self-sufficient in
natural gas.
Europe, by contrast, is clearly lagging. Explo-
ration is proceeding only hesitantly and shale gas
production has not even started.
Critics of Europe’s apparent lack of enthusi-
asm for fracking miss two key points. First,
Europe’s geology is different from that of Amer-
ica. There is a huge difference between potential
deposits hidden somewhere in large shale forma-
tions and recoverable reserves that can actually
be produced economically.
In fact, estimates by the International Energy
Agency suggest that the most significant recover-
able reserves of shale gas are in the US and
China, not Europe. Moreover, even these esti-
mates are really not much more than educated
guesses, because only in the US have shale for-
mations been subject to intense exploration over
a period of decades.
This process is starting in Europe only now.
Poland appears to have Europe’s most favorable
geology, and it might become a significant pro-
ducer on a local scale in about 10 years. This is a
fortunate coincidence, because shale gas produc-
tion would probably make it politically easier to
phase out Poland’s economically and environ-
mentally irrational subsidies to local coal produc-
tion (and consumption).
National authorityBut pro-fracking critics of the European Union
miss a second point: the EU has no authority
over the development of shale gas in Europe.
Licensing and regulation of exploration and pro-
duction are decided at the national level.
While it might be true that Europeans are too
sensitive to environmental concerns, incentives
also play a role. In particular, whereas ownership
rights over natural resources in the US typically
belong to the individual owner of the land under
which the resources lie, in Europe ownership
belongs to the state.
As a result, Europeans, facing uncertain envi-
ronmental consequences while receiving none of
the revenues, tend to oppose fracking nearby. In
the US, by contrast, local residents benefit hand-
somely from being able to sell their ownership
rights to gas companies – a strong counter-bal-
ance to fears of environmental costs.
But private versus state ownership of natural
resources is not the only institutional factor
underlying the US gas boom. A seldom-men-
tioned reason is that shale gas development in the
US has benefited from important tax incentives –
a model that Europe has no reason to emulate.
But the most crucial point about fracking is
that shale gas, like all hydrocarbons, can be used
only once. The real issue is thus not whether
shale gas should be developed in Europe, but
when it should be used: today or tomorrow.
Europe is already a heavy user of gas, but its
consumption is stagnating (along with its econo-
my). Despite the hype about the shale gas revolu-
tion, the extraction cost of (onshore) convention-
al gas remains below that of shale gas. Moreover,
an existing pipeline network implies that this con-
ventional gas can be brought to Europe at a low
marginal cost. From an economic (and environ-
mental) standpoint, fracking is thus unlikely to
bring large benefits for Europe: shale gas might
simply substitute for plentiful conventional gas. ●Daniel Gros is director of
the Center for European Policy Studies.Copyright: Project Syndicate, 2012.
project-syndicate.org
“Pop singers need to havea cohesive image; so dopoliticians”
LLOOKKAALLEE IIMMMMOOBBIILLIIAAW 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 l y s u p p l e m e n t o n r e 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 OCTOBER 8-14, 2012, LI 17/40
PPM outlet cen-
ters refinancedInvestment-fund manager
Peakside Polonia
Management (PPM) has
obtained over €106 million
in bank refinancing from
Westdeutsche
ImmobilienBank that will
help the company operate
and further develop three
outlet centers from the
Polonia Property Fund II
portfolio. The three
Fashion House Outlet
Centre facilities in
question are located in
Gdaƒsk (in northern
Poland), Sosnowiec (in
southern Poland) and
Piaseczno (near Warsaw).
Each of them comprises
17,000 sqm of leasable
space and houses from
100 to 120 tenants.
CBRE leases
for Robyg
Developer Robyg has
appointed CBRE as the
leasing agent for its Robyg
Business Center office and
retail project in Warsaw.
The company is
responsible for the leasing
of more than 35,000 sqm
of space that will be
developed within the
complex. Robyg Business
Center is located on
Al. Rzeczypospolitej in the
capital’s Wilanów district.
Construction is currently
underway on the first
building in the complex
which will provide over
8,000 sqm of usable
space. ●
New ECE mall . . . . . . . . . . . . . . .12Immofinanz in Lublin . . . . . . . .12GreenWings construction . . . .13Ogrody mall green-lit . . . . . . . .13Poczta Polska lease . . . . . . . . . .13Retail market . . . . . . . . . . . . . . .14Property-related stocks . . . . . .14Goodman in Gdańsk . . . . . . . . .16Łopuszańska Business Park . .16Office market . . . . . . . . . . . . . . .17Investment market . . . . . . . . . .18KSP plans . . . . . . . . . . . . . . . . . . .19PPP in Warsaw . . . . . . . . . . . . . .20Home sales . . . . . . . . . . . . . . . . .21New Ronson project . . . . . . . . .21Logistics market . . . . . . . . . . . .22
In this issue
SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONNNew shopping malls | Sector analyses | Polish investment market | KSP’s investment plans | Warsaw PPP project | Slipping home sales
Shopping centers
EECCEE ttoo llaauunncchh iittss €€117700 mmiilllliioonnGGaalleerriiaa KKuujjaawwsskkaa pprroojjeecctt nneexxtt yyeeaarrThe company’splanned GaleriaKujawska scheme willdeliver 50,000 sqm ofspace
Developer ECE Projektman-
agement Polska is planning to
launch construction on a new
major shopping center in
Poland in spring next year.
The company’s Galeria
Kujawska mall will be built in
Bydgoszcz, in Kujawsko-
Pomorskie voivodship, and
deliver 50,000 sqm of space.
The investment, whose
value is estimated at €170 mil-
lion, will be the largest shop-
ping and entertainment facility
in Bydgoszcz. It will also be the
largest shopping center project
that ECE Projektmanagement
Polska has developed to date.
According to the company,
there is already considerable
tenant interest in the scheme,
which will house 180 retail
outlets. “Since the middle of
this year, intensive work on
leasing the space has been
underway,” Rafa∏ Pruba, leas-
ing director at ECE Projekt-
management Polska, said in a
statement.
He added that so far terms
of cooperation have been
reached for approximately 40
percent of the retail space in
the development. “Our most
important partners include
some of the most appreciated
fashion brands in the world
and a recognized retailer of
consumer electronics,” Mr
Pruba said.
Earlier this year, ECE fin-
ished demolishing the build-
ings of the former ORTIS
printing facility in Bydgoszcz
that used to occupy the site on
which the planned Galeria
Kujawska project will be
developed.
“We are planning to apply
for a building permit in the
first months of next year,”
Leszek Sikora, development
department director at ECE
Projektmanagement Polska,
said in a statement. The mall is
scheduled to be completed in
spring 2015.
ECE has been developing
shopping centers since 1965.
The company, which is known
in Poland for projects includ-
ing Galeria Kaskada in
Szczecin, is currently involved
in the development of 14 new
malls across Europe.
AAddaamm ZZddrrooddoowwsskkii
Retail
IImmmmooffiinnaannzz ttoo bbuuiilldd zz∏∏..448800 mmllnn mmaallll iinn LLuubblliinnThe project willprovide 37,000 sqm of retail space
Immofinanz Group has
revealed the details of its
planned z∏.480 million Tarasy
Zamkowe retail and entertain-
ment center in Lublin, south-
eastern Poland.
The Austrian real estate
investor purchased land in
Lublin that once hosted the
Galeria Zamek shopping cen-
ter, and has decided to build a
mall that combines shopping
and entertainment facilities on
the plot.
“The city’s economic
strength as well as a low satura-
tion of retail space were the
main reasons for buying the
land along with the old mall
Galeria Zamek and deciding to
transform it into a shopping
and entertainment center,”
Eduard Zehetner, chairman of
the company, said in a state-
ment.
Tarasy Zamkowe is to pro-
vide 37,000 sqm of retail space,
23,000 sqm of public space as
well as 44,000 sqm of parking
space.
There will be 150 shops,
three restaurants, as well as sev-
eral cafes and food outlets.
Work on the project is due
to start this month, and the
shopping center is expected to
be ready by autumn 2014.
Mr Zehetner said Lublin is a
very attractive area for this kind
of investment.
“[With] an actual popula-
tion of 350,000 and a popula-
tion reach of 800,000, [Lublin]
represents a very attractive
place for investment,” Mr
Zehetner said.
Tarasy will combine unique
architecture with high ecologi-
cal standards, the company
says.
On the center’s rooftop
there will be lawns, paths and
viewing points. The company
also hopes to secure BREEAM
certification for the scheme.
“We are happy about the
positive assessment that we
have been receiving so far in
terms of our care for the envi-
ronment,” said Ralph Bezjak,
director of commercial devel-
opment at Immofinanz Group.
“We will certainly try and
acquire BREEAM [certifica-
tion],” he added.
IIzzaabbeellaa DDeeppcczzyykk
CO
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PR
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The Galeria Kujawska scheme is scheduled to be completed in spring 2015
CO
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SK
I B
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AR
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Tarasy Zamkowe will be ready by autumn 2014
OCTOBER 8-14, 2012 www.wbj.pl 13LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Poczta Polska leases 13,000 sqmfrom PHN for new headquartersPoczta Polska, Poland’s pub-
lic post service, has signed a
lease agreement for 13,000
sqm of office space in a new
building in Warsaw that will
become its new headquar-
ters. The deal was signed
with Warszawski Holding
NieruchomoÊci, part of the
Polski Holding Nieru-
chomoÊci (PHN) capital
group.
The future headquarters
will be located on ul.
Domaniewska in Warsaw’s
Mokotów district. According
to the deal, the new premises
are due to be handed over for
use by the middle of 2015.
“The whole process was a
major challenge, not only
due to the investment, legal
and technical issues, but also
a short realization period,
compared to market stan-
dards,” Kamil Tyszkiewicz, a
senior negotiator at CBRE,
which helped broker the
deal, said in a statement.
“The facility in question
has not yet been built and the
whole project was interesting
in that it combined a lease
agreement with an invest-
ment agreement,” stated
Joanna Winter, a legal advi-
sor at SSW, which also
helped broker the agree-
ment. She added that the
tenant would have a say in
the final shape of the build-
ing. AAddaamm ZZddrrooddoowwsskkii
Construction to launchon GreenWings offices
The Warsaw projectwill deliver over10,800 sqm of GLA
Investor GreenWings Offices
has appointed CFE Polska as
the general contractor of the
planned GreenWings class-A
office investment in Warsaw.
Construction on the develop-
ment is scheduled to launch
this month.
The GreenWings project is
located on ul. 17 Stycznia in War-
saw’s W∏ochy district, near the
Chopin international airport.
The seven-floor scheme will
deliver 10,810 sqm of leasable
space and 270 parking spaces in
an underground parking lot.
GreenWings’ architectural
design was furnished by the
JEMS Architekci studio. It
calls for the development of a
sustainable facility which has
already been granted a “very
good” BREEAM assessment.
Cushman & Wakefield and
NAI Estate Fellows are the real
estate agents responsible for
leasing space in the GreenWings
project. OKRE Development,
an entity belonging to two Bel-
gian groups, is managing the
whole investment process.
AAddaamm ZZddrrooddoowwsskkii
CO
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SY O
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KR
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EV
EL
OP
ME
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The scheme was designed by the JEMS Architekci studio
Shopping centers
OOggrrooddyy mmaallll iinn EEllbbllààggggeettss bbuuiillddiinngg ppeerrmmiittThe extendedshopping center willfeature approximately40,000 sqm of leasablespace
CBRE Global Investors has
received a building permit for
the modernization and exten-
sion of the Ogrody shopping
center in Elblàg, in Warmiƒ-
sko-Mazurskie voivodship.
The investment is set to launch
this quarter and be completed
in 2014.
“After the modernization
and extension, Ogrody will be
a latest-generation shopping
center,” Krzysztof Bocianows-
ki, head of Asset Management
Poland at CBRE Global
Investors, said in a statement.
He added that the facility is
enjoying a lot of tenant interest
and is already 50 percent leased
out. The leasable space of the
Ogrody center will more than
double after the extension, to
approximately 40,000 sqm.
“The realization of the
project will start as early as in
Q4 this year and the opening
of Ogrody in its new shape is
scheduled for 2014,” Tomasz
Szewczyk, regional managing
director of Acteeum Central
Europe, a firm that is respon-
sible for the extension and
commercialization of the mall,
said in a statement.
AAddaamm ZZddrrooddoowwsskkii
OCTOBER 8-14, 201214 www.wbj.pl
Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value
on Oct 4 (z∏. mln)
BUDIMEX 57.60 0.61 45.85 88.35 71.55 25,530,098 1,470.53
CELTIC 8.45 1.81 7.02 20.30 19.01 34,231,466 289.26
DOMDEV 28.70 0.74 23.50 42.80 25.04 24,715,272 709.33
ECHO 4.25 -1.16 3.05 4.45 3.44 420,000,000 1,785.00
ELBUDOWA 108.00 0.93 87.00 120.00 100.00 4,747,608 512.74
ENERGOPLD 0.21 -8.70 0.17 2.75 2.45 70,972,001 14.90
ERBUD 13.66 1.19 11.33 23.20 19.60 12,677,956 173.18
GANT 4.21 7.67 3.37 9.85 7.35 20,120,000 84.71
GTC 7.60 1.60 5.20 12.49 10.98 319,372,990 2,427.23
HBPOLSKA 0.02 -33.33 0.01 1.43 0.75 210,558,445 4.21
JWCONSTR 4.19 -4.77 3.85 8.42 6.10 54,073,280 226.57
LCCORP 1.16 -0.85 0.85 1.48 0.98 447,558,311 519.17
MARVIPOL 9.99 -2.06 6.20 11.00 7.25 36,923,400 368.86
MIRBUD 1.15 8.49 0.98 2.68 2.41 75,000,000 86.25
MOSTALWAR 14.30 -0.69 11.30 25.88 21.00 20,000,000 286.00
MOSTALZAB 1.22 -3.94 0.81 1.80 1.14 149,130,538 181.94
ORCOGROUP 7.70 13.07 6.36 19.55 17.90 107,840,962 830.38
PBG 6.11 0.16 3.36 92.00 62.00 14,295,000 87.34
PLAZACNTR 2.39 2.58 1.88 2.94 1.88 297,181,703 710.26
POLAQUA 3.51 6.36 3.30 8.29 7.50 27,500,100 96.53
POLIMEXMS 0.79 -10.23 0.48 2.04 1.60 521,154,076 411.71
POLNORD 14.57 9.63 10.49 19.85 11.03 23,798,439 346.74
RANKPROGR 8.70 9.02 7.10 16.97 9.60 37,145,050 323.16
ROBYG 1.30 -0.76 1.04 1.75 1.10 257,935,500 335.32
RONSON 0.80 -2.44 0.61 1.15 1.00 272,360,000 217.89
TRAKCJA 0.88 2.33 0.65 1.87 1.39 232,105,480 204.25
ULMA 39.20 -0.13 37.20 74.80 62.90 5,255,632 206.02
UNIBEP 4.79 7.40 3.60 6.55 6.08 34,021,684 162.96
WARIMPEX 3.19 0.31 2.64 5.77 5.43 54,000,000 172.26
ZUE 7.25 4.17 5.07 8.98 8.98 22,000,000 159.50
Property-related stocks
LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
MMiixxeedd mmeessssaaggeess iinn CCEEEEExpert’s opinion
BROUGHT TO YOU BY JONES LANG LASALLE
We see rather mixed messages comingfrom the markets across Central andEastern Europe (CEE). In SoutheasternEurope (SEE) real estate trade has beenvery limited, and markets rather illiquid;elsewhere in CEE investors are more activebut certainly cautious.
Notwithstanding, a number of deals areprogressing in Poland, which is by far themost active market in the region, and someof these deals, especially in the retail sector,are at a very core pricing.
Indeed, a number of larger volume trans-actions have been signed and await closingacross Poland. These include Manufakturashopping centre in ¸ódê, Warsaw FinancialCenter (value of around €210 million), Pla-tinium Business Park in Warsaw (value ofaround €170 million) and other deals,including some portfolio deals in the logis-tics sector. It should be noted that so far in2012 investment volumes in Poland havematerially reduced in comparison to 2011,but with some larger transactions underpreliminary agreements and/or some otherin due diligence, it is expected that theentire 2012 investment volume in Poland
will be similar to 2011, somewherebetween €2.0 and €2.5 billion.
Other countries in the CEE/SEE regionwill, however, trade substantially lower vol-umes in 2012, and this includes the CzechRepublic. The Czech Republic had a spec-tacular year in 2011, when a few big-ticketvolume deals traded (examples includeMulti portfolio, VGP portfolio, Olympia Brnoor Palace Flora), and it is now back to morestable market volumes in 2012. Such areduction in volumes is nothing unexpect-ed, bearing in mind the above big-ticketdeals of 2011 – and the Czech market isnow back to smaller volume deals but sta-ble market activity and continued investorinterest.
Over the remainder of the yearinvestors will continue to focus on prime,core markets and products, both in termsof asset quality and locations with flag-ship projects attracting the most atten-tion and good pricing.
Secondary assets continue to beeither illiquid or subject to significant re-pricing. However, prime yields are likelyto remain at reasonably aggressive lev-els, and so prime office yields in Polandand potentially also in the Czech Republicare likely to be at around 6.25%, primeretail yields to be around 5.75% for bestassets, and warehouse yields at around8.0%, again for prime and long-termleased properties. ●
Tomasz Trzós∏oHead of CapitalMarkets,Central Europe,Jones Lang LaSalle
Retail market
PPoollaanndd sseeeeiinngg sstteeaaddyy ggrroowwtthh,, mmooddeerrnniizzaattiioonn In 2012 retail stock inPoland will growabout as much as inyears past, on theback of healthydemand and a slew ofmodernizationprojects
While there is still plenty of
room for more retail develop-
ment in Poland, at least the
continuing economic malaise
in Europe isn’t dragging the
market down. Poland’s retail
market is maintaining steady
growth, as supply still fails to
meet demand, according to
analysts. Modernization and
expansion is a big trend, and
even with a largish pipeline of
projects on the way, there is
still plenty of room for devel-
opment.
According to Jones Lang
LaSalle, the third quarter of
2012 saw anemic delivery of
retail stock in Poland, at just
31,600 sqm. But that belies the
overall trend – the last quarter
of the year will see a huge
increase, to some 162,000 sqm
of stock in seven new and three
extended schemes. By year-
end, Poland’s retail stock will
have grown by 415,000 sqm, in
line with 2010 and 2011 levels.
Warsaw dominantWarsaw maintains average
density for Poland in terms of
stock to population, with about
400 sqm for every 1,000 peo-
ple. Moreover, only 14 percent
of the country’s total stock is
located in the Warsaw market.
As a capital city with by far the
largest purchasing power
(about €9,091, compared to a
country average of €6,607),
analysts see this as far too little.
Even though there are several
projects in the pipeline –
including under construction
projects at Plac Unii, just south
of the city center, and two
shopping and leisure centers
planned by GTC, CBRE char-
acterizes Warsaw’s 2011-2013
pipeline as “clearly insuffi-
cient,” leading to negligible
vacancies and an expanding
area of the prime retail zone.
CBRE calculates the vacancy
rate in Warsaw at about 1.6
percent, compared to an aver-
age vacancy rate in cities with
more than 200,000 inhabitants
of nearly 3 percent, according
to JLL.
Demand reflects these
assessments, with a number of
well-known international
retailers pulling the trigger to
enter the Warsaw market.
These include American Eagle
Outfitters (Arkadia), Victoria’s
Secret Beauty & Accessories
(Z∏ote Tarasy and Galeria
Mokotów), and Hollister from
Abercrombie & Fitch (Galeria
Mokotów).
Smaller citiesSome 57 percent of Poland’s
retail stock is situated within
the markets of Poland’s eight
largest cities, according to
CBRE, but small cities contin-
ue to attract plenty of atten-
tion. The two shopping centers
that were brought to the Polish
market in Q3 were in cities
with fewer than 70,000 inhabi-
tants. Both were developed by
P.A. Nova – Odrzaƒskie
Ogrody was delivered in
K´drzyn Koêle, a city of just
64,000 inhabitants, while Gale-
ria Miodowa went up in
Kluczbork, with just 25,000
people.
This, according to JLL,
“proves that developers and
retailers value the attractive-
ness of smaller cities, even
those below 50,000 citizens.”
Plenty more development in
small cities is expected to come
over the next couple of years,
at least.
More modern As developers try to find ways
to meet demand, several shop-
ping centers in Poland are
undergoing modernization and
extension.
“To date, one-third (i.e. 2.5
million sqm) of the existing
shopping center supply has
been put under some kind of
revitalization program,” wrote
JLL analysts in a recent report.
By 2014, a further 20 projects,
in addition to the 74 that have
already been modernized, will
see revitalization. Included in
this number are some Warsaw
malls, such as Blue City, Gale-
ria Mokotów, Klif and Prome-
nada.
The consultancy says that
the number of value-add and
opportunity-driven investors
has increased significantly, and
describes their investment
strategy of buying up older
assets and revitalizing them to
help them reach their full
potential as an “interesting”
one, but one which neverthe-
less requires considerable
experience and expertise.
RentsWarsaw remains the most
expensive retail location in
the country, with high-street
locations demanding any-
where between €75-95 per
sqm per month. Z∏ote Tarasy,
Arkadia and Wolf Bracka
charge significantly more than
other schemes, according to
CBRE.
In major agglomerations,
rents are significantly lower,
around €35-55, while prime
rents in secondary cities vary
between €21 and €40.
JLL warns that shopping
center owners and developers
must be prepared for down-
ward rental pressure and ten-
ants’ expectations with regard
to fit-out contribution, but
adds that this refers to “sec-
ondary, not leading assets.”
AAnnddrreeww KKuurreetthh
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The Arkadia shopping mall in Warsaw
OCTOBER 8-14, 201216 www.wbj.pl LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Developer Ghelamco Poland’s
under-construction ¸opuszaƒs-
ka Business Park office project
in Warsaw is now more than 80
percent leased out after the
company secured two tenants
from the financial sector.
The ¸opuszaƒska Business
Park scheme is located on ul.
¸opuszaƒska in the capital’s
W∏ochy district. The complex
will comprise two buildings
offering a total of approximate-
ly 17,000 sqm of office space.
The typical floor will be sized
around 1,500 sqm.
An underground parking lot
with 320 parking spaces will
also be part of the investment.
Construction on the ¸opusza-
ƒska Business Park develop-
ment, which will feature green
building solutions, is scheduled
to be completed within a year.
Ghelamco Poland special-
izes in the development of
office and warehouse buildings
and has turned over more than
390,000 sqm of commercial
space for use over the last 21
years. The company is also,
under the Ghelamco Residen-
tial brand, present in the Polish
housing market. AAZZ
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OM
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ION
The scheme is now over 80 percent leased out
Logistics
Goodman builds PomeranianLogistics Centre in GdaƒskThe investment will bethe largest logisticshub of its kind innorthern Poland
Industrial space developer
Goodman has launched con-
struction on its Pomeranian
Logistics Centre project in
Gdaƒsk. The scheme is located
adjacent to the city’s Deepwa-
ter Container Terminal (DCT)
and is expected to become the
largest logistics hub of its kind
in northern Poland.
When completed, the
development will comprise
approximately 500,000 sqm of
warehouse and light industrial
space and its total value will
exceed €300 million. The first
facility within the investment is
scheduled to be delivered at
the end of Q1 2013.
“Due to its excellent loca-
tion, we are convinced that our
Pomeranian Logistics Centre
in Gdaƒsk will meet with con-
siderable customer interest,”
B∏a˝ej Ciesielczak, regional
director at Goodman Poland,
said in a statement.
“The potential customers
we are targeting with this
development include compa-
nies operating locally, domes-
tically and internationally,
across country sectors includ-
ing sea transport, logistics, dis-
tribution, food and FMCG,”
Mr Ciesielczak added.
Goodman is touting the
center’s proximity to road,
rail and air traffic infrastruc-
ture. The nearby Deepwater
Container Terminal, the
largest facility of its kind on
the Baltic Sea, provides a
unique opportunity for port-
centric logistics, the company
said.
“The development of the
logistics center has signifi-
cance for Gdaƒsk as a city aim-
ing to become the main gate-
way to countries in Central
and Eastern Europe,” Boris
Wenzel, CEO of DCT
Gdaƒsk, said in a statement.
Goodman commenced its
operations in Poland in 2005.
The company owns and man-
ages 266,000 sqm of facilities
across the country. It also
holds over 210 hectares of land
in Poland on which 776,000
sqm of warehouse space can
be developed.
AAddaamm ZZddrrooddoowwsskkii
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The project is located adjacent to Gdaƒsk’s Deepwater Container Terminal
¸opuszaƒskaBusiness Park signsmajor tenants
OCTOBER 8-14, 2012 www.wbj.pl 17LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Office market
PPoollaanndd aa ssttaannddoouutt ppeerrffoorrmmeerr iinn 22001122The Warsaw marketremains buoyant,supported by Poland’slargest regional cities
The Polish office sector remains
one of the brightest spots in a
European market haunted by
the ongoing sovereign debt cri-
sis, with strong fundamentals
and its ability to attract interna-
tional occupiers allowing it to
continue growing this year,
where others have stagnated or
shrunk.
According to a recent report
by CBRE, there is over 6 mil-
lion sqm of modern office space
in nine major Polish cities,
160,000 sqm of which was deliv-
ered in the first six months of
this year. Over 1 million sqm is
currently under construction,
scheduled for delivery in 2013
and 2014.
Moreover, while rents for
office space in Europe contin-
ued to fall in the second quarter
of this year (by 0.2 percent q/q,
according to CBRE’s Euro-
pean rental index), rents in
Poland have remained stable.
“The first half of 2012, simi-
larly to the two previous years
on Poland’s real estate market,
was an exceptionally good peri-
od, especially if considering the
volume of leased office space,”
said Tomasz Czuba, director of
the office leasing department at
Jones Lang LaSalle.
Capital activityWarsaw was one of the busiest
markets in Europe in Q2 in
terms of tenant activity, with
lease agreements signed for
more than 172,800 sqm of
space. New contracts accounted
for 67 percent of all transac-
tions.
“The highest rents in the
Polish capital remained at a sta-
ble level in comparison with the
end of 2011,” said Mr Czuba.
Almost 280,000 sqm of
office space is due to be com-
pleted in Warsaw in 2012, mak-
ing it one of the most active
cities in Europe, according to
the CBRE report.
The largest office projects
under construction include the
Warsaw Spire, Gdanski Busi-
ness Centre and Konstruktors-
ka Business Centre.
Tenants’ marketLooking ahead, the supply of
office space in the capital is
expected to start favoring occu-
piers.
If the number of planned
office projects is completed
according to schedule by the
end of next year, Warsaw
should turn into a typical ten-
ants’ market, where tenants will
be able to dictate their condi-
tions, said Rafa∏ Wdowczyk, a
senior office property negotia-
tor at CBRE in Warsaw.
Moreover, 2014 will be the
start of a new five-year leasing
cycle, following on from the
credit crunch of 2009, when
only 350,000 sqm of office space
was leased during the whole
year. This means tenant activity
may be lower in 2014 in com-
parison to today, said Mr
Wdowczyk.
“This should definitely build
the negotiating position of ten-
ants wanting to renegotiate or
relocate,” he added.
In addition, companies in
the financial sector – and partic-
ularly brokerage houses – are
scaling back operations in War-
saw as the government runs out
of assets to privatize and the
boom in stock market listings
continues to subside.
“Assuming that all the
planned projects in the Wola
area [of Warsaw] will be deliv-
ered on time, we can expect
that rents in the CBD may fall
slightly. Office rents for [the
Warsaw district of] Mokotów
should remain stable,” Mr
Wdowczyk said.
“Today companies are still
actively looking for space in
Warsaw. There is no major
slowdown in the amount of
office space activity in the city
center or Mokotów,” he added.
BPO boosts regionsBeyond Warsaw, business serv-
ices firms are helping to drive
office market activity.
Experts say tenants from the
BPO and offshoring, shared
services, and research and
development sectors are eager
to locate their centers in
Poland’s regional cities, where
costs are lower and well-quali-
fied staff readily available.
Daniel Bienias, director of
the office agency and tenant
representation at CBRE, says
the global economic situation,
far from weakening Poland’s
office market, is working in its
favor, since occupiers are locat-
ing or expanding in the coun-
try’s regional cities to take
advantage of lower costs.
“Regional office rents
should remain on a stable
level. Currently many local
markets [are experiencing] a
kind of a rare balance between
the supply and demand for
office space.” said Mr Bienias.
Poland’s office market is
thus in a rude state of health
compared to many in Europe,
with Warsaw as ever carrying
the flag supported by the
country’s largest regional
cities. GGaarreetthh PPrriiccee
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Warsaw Spire is one of the largest ongoing office projects in the Polish capital
OCTOBER 8-14, 201218 www.wbj.pl LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Real estate investment
Holding firmAdam Zdrodowski: Two officetowers have recently changedhands in Warsaw and a thirdhas been put on sale. What’sbehind this trend?Monika Rajska-Woliƒska:That the sale of the two sky-
scrapers in Warsaw took place
at almost the same time is acci-
dental. Such transactions fol-
low long negotiations and take
months to close. Still, they can
be attributed to the large inter-
est that real estate investors
now have in the Polish market.
Poland is high on the target
list of investors deploying cap-
ital in Europe given its eco-
nomic growth, and the Warsaw
CBD office market offers a
relatively low risk profile given
its strong liquidity and low
vacancy. Twenty-one out of 22
Polish office transactions that
closed in 2011 were Warsaw
properties.
What are the prices like incomparison to previous years?The price levels for core CBD
office products – class-A, well-
located, fully leased, and of
institutional quality – have
held firm, together with the
investment volumes which in
2011 amounted to €2.5 billion,
out of which 49 percent was
attributable to office assets.
H1 reports forecast a decreasein the investment volume in2012. Could the recently con-cluded large deals mean the
volume will actually not belower than last year?We are of the opinion that the
2012 investment volumes will
be similar to the 2011 level of
€2.5 billion, provided that the
transactions which are cur-
rently in due diligence or are
subject to preliminary agree-
ments, close before year end.
Deals currently in due dili-
gence and scheduled to close
in 2012 amount to well over €1
billion in volume. The total
investment volume in the first
three quarters of this year was
approximately €1.15 billion.
Which office products are nowon investors’ radars in Polandand in which locations? Is itjust offices in central Warsawor are buildings in some otherparts of the capital and inregional cities also indemand?The prevailing demand from
investors for office buildings
are for core office assets in
Warsaw’s CBD. That said,
there are several office build-
ings in the Mokotów district
that are under offer or in due
diligence at the present time.
With regard to retail, which
has recently accounted for
approximately 45 percent of
the total investment volume,
investor interest is nationwide
with a focus on Warsaw and
major secondary cities, includ-
ing Kraków, Wroc∏aw and
Katowice.
The most sought-after
shopping centers are those
which are food-anchored and
dominant within their respec-
tive catchment areas. They
also have a strong trading his-
tory and the potential for
being expanded.
With regard to logistics, the
preference has in the recent
past been for well-located
class-A assets with generally
long-term leases, mostly built-
to-suit projects. However, the
logistics investment market is
evolving quickly and we expect
to see a number of larger logis-
tics transactions in the near
future.
Do you expect more largetransactions in the office and
retail sectors to be concludedin Warsaw and Poland atlarge in upcoming months?Yes, we expect that the market
will see the closing of a num-
ber of large transactions be-
fore year-end. The last quarter
of the year is always the most
active and exciting in the
investment market. Unfortu-
nately, I cannot yet reveal any
particular deals that are being
worked on.
Do you see investor interest inprojects which are at theplanning stage?Construction financing con-
straints and pre-lease
requirements are requiring
office developers to consider
joint venture structures or
forward sale transactions and
there is a lot of capital avail-
able for joint ventures from
value added or opportunistic
investors.
The challenges in these
types of transactions arise dur-
ing the structuring process,
since few developers have the
ability to provide the comple-
tion guarantees and other
forms of security that a joint
venture investor generally
requires.
However, core investors
generally prefer to acquire
completed projects, those
which are leased out and gen-
erate revenues. Those invest-
ors consider buying such proj-
ects less risky than investing in
planned schemes. ●
W. P. Carey
finances
warehouse
Investment management
company W. P. Carey will
deliver 100% of the funds
needed to construct a
new 11,000-sqm light-
industrial warehouse
facility that Panattoni
Europe will develop in the
western Polish city of
˚ary. The scheme will be
developed for logistics
and supply-chain
management company
Syncreon. The investment
is located close to the
German border. “W. P.
Carey as a long-term
investor has
demonstrated that it can
provide the financing
companies need to
construct and develop
new facilities in both up
and down market cycles,”
Jeffrey Lefleur, managing
director of W. P. Carey,
said in a statement.
Brochocki
brokes new
dealsThe Kancelaria Brochocki
real estate agency has
brokered lease
agreements for a total of
approximately 10,000
sqm of office space in
Warsaw and Wroc∏aw in
recent weeks. The
largest deals in the
Polish capital included
the lease by EDF Polska
and Polska Organizacja
Turystyczna of
respectively 1,300 sqm in
the Skylight building and
1,000 sqm in the Oxford
Tower building. In
Wroc∏aw, clients included
AXIT, which leased 1,150
sqm in Aquarius
Business House. ●
Lokale Immobilia sits down with MonikaRajska-Woliƒska, managing partner at ColliersInternational, to talk about the currentsituation in, and prospects for, the Polish realestate investment market
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Ms Rajska-Woliƒska said Poland is high on the target list of investors in Europe
OCTOBER 8-14, 2012 www.wbj.pl 19
Real estate investors
KKSSPP ttoouuttss PPoolliisshh ooffffiiccee ooppppoorrttuunniittiieess
Adam Zdrodowski: KSP is arelatively new entity in Polandbut has already acquiredthree office buildings in War-saw. How do you view invest-ment prospects in the Polishproperty market at themoment?Edgar Rosenmayr: The Polish
property market due to its sta-
bility and growing maturity
offers a number of attractive
investment opportunities, ran-
ging from greenfield and
brownfield developments to
recently completed properties.
How much is your companygoing to invest in Polish prop-erty in the next few years andwhich locations and sectorsare of particular interest toyou?It always has been the compa-
ny’s strategy to build a portfo-
lio of institutional quality over
the medium term with a target
equity value of around €500
million. The majority of this
portfolio will comprise offices
but will also include retail to
some extent.
Our strategy foresees
acquiring unique properties –
centrally located, of exquisite
architecture, with excellent
technical parameters, attrac-
tive to tenants, offering a good
potential for value growth dur-
ing a medium- and a long-term
ownership, also those meeting
the highest environmental
standards and being certified
by BREAM or LEED, or qual-
ifying for such certification.
In terms of markets,
Poland will account for the
largest part of our portfolio
which eventually may also
include properties or develop-
ments in other CEE markets.
KSP is also planning to devel-op real estate projects – whatwill be the share of developerprojects in your overall port-folio in Poland?There is no set percentage of
development projects in our
portfolio. Going forward we
expect that approximately half
of our portfolio could be
developments.
The planned Chmielna Towerin Warsaw has encounteredsome administrative obsta-cles. When could constructionon the skyscraper launch andwhat will be its ultimateheight?We are currently working on a
new design and once complet-
ed will reinitiate the permitting
process. If everything goes well
we may see construction start
in the fourth quarter of 2013.
Have you already securedsome other sites in Warsaw orelsewhere in Poland on whichnew projects will be launchedin the near future?Yes of course, KSP is evaluat-
ing a few development oppor-
tunities at the moment, espe-
cially in Warsaw. Unfortunate-
ly, the stage of negotiations is
too early to talk about details.
We will inform the public
about our new projects at the
appropriate time.
KSP has recently unsuccess-fully tried to buy Meble Emil-
ia with its prime site in cen-tral Warsaw. Does this meanthe company is also lookingfor land for other skyscraperprojects in the Polish capital?We regard development of
high-rise buildings as one of
the strengths of our company
given that we have access to
the respective wealth of expert-
ise of our US shareholder. KSP
therefore is looking at land
plots which potentially qualify
for high-rise developments.
What are your expansionplans for the next few years?Which other Polish cities/CEEcountries could KSP enter inthe near future?Our expansion plans will fol-
low our strategy mentioned
above. According to our man-
date, KSP is allowed to invest
in major regional cities in
Poland, as well as in the capital
cities of other CEE countries.
KSP has previously men-tioned the possibility of debut-ing on a stock exchange.Would that debut take placein Warsaw and when could itpotentially happen?A stock-exchange listing still
remains one of the options for
optimizing the capital struc-
ture and ensuring future
growth which will be contem-
plated in a few years. A War-
saw listing will certainly be one
of the possible options to be
considered. ●
Commercial property purchase transactions:How to improve your cash flow
Expert’s opinion
BROUGHT TO YOU BY KR GROUP
Whilst planning an asset transaction, one ofthe most important issues that has a bigimpact on the cost of financing is the taxaspects, in particular VAT paid on the deal.VAT, by definition, should be neutral for anentrepreneur, but it often isn’t.
A standard practice on the real estate mar-ket is that the VAT amount on a property pur-chase is to be settled by the acquiring partyjust after the Sale and Purchase Agreement(SPA) is signed, while the VAT paid may bereclaimed back from the tax authorities within60 days – a standard term according to PolishVAT regulations. This state of affairs can sub-stantially increase the financing costs of adeal. However, it’s possible to obtain signifi-cant savings if the transaction has the assis-tance of tax planning that covers an analysis ofthe opportunities and threats of an accelerat-ed VAT refund application, which is often anoption.
Opportunities for acceleratedreclaim of VAT Following VAT regulations, it is possible toapply for a 25-day refund of input VAT, whichoffers a huge advantage for leverage in assettransactions. An application for the accelerat-
ed refund should be submitted along with theVAT declaration for the month of the acquisi-tion, which is submitted to the tax authoritiesusually by the 25th day of the month followingthe month of the transaction. The basis forVAT deduction is the original hard copy of theVAT invoice received by the buyer, unless elec-tronic invoicing is implemented.
It should be underlined that the accelerat-ed VAT refund option is restricted to certaincases, such as when VAT has already beenpaid. This should be documented with a pay-ment confirmation available before the datethat the refund application is submitted. Addi-tionally, VAT on sales should be declared in thesame VAT declaration.
Within the above-mentioned VAT reclaimprocedure there is still place for further opti-mization. It is worth mentioning that the VATreturn with the refund application may also besubmitted just after the SPA is signed, that is,before the end of a VAT-calculating period.Such an opportunity is possible by predictingcash inflows on the income side. Rental agree-ments for commercialized properties offer aclear picture of the expected turnover, whichmay be stated in a VAT declaration even beforethe month’s end. This may considerably short-en the time gap between the closing date andthe deadline for VAT return and substantiallyrelieve the financing’s cost burden.
Additionally, even a small amount of outputVAT on sales gives a green light for the accel-erated refund. Therefore, in case no VAT-ableturnover resulting from rental agreementssigned for the acquired commercial propertyoccurs in the month of the claim, proper taxplanning may still give an advantage.
Potential risksAs VAT amounts involved with asset deals areusually of significant size, the refund applica-tions are always subject to detailed examina-tion by the tax authorities. For this reason theVAT declaration with the refund claim shouldbe carefully drafted and any potential risksshould be identified in advance and hedged ifpossible.
What should be remembered is that forthe accelerated VAT refund a necessary condi-tion of a full payment of the asset price shouldbe fulfilled, which may seem to be an obsta-cle, having in mind the business practice ofretention payments or deposit accounts forsuch transactions.
Recently, the tax authorities have taken anew approach, according to which they ana-lyze the transaction conditions in more detail,in particular the payment terms based onescrow-account transfers. In such a case, theSPA wording may be relevant for the success-ful fast claim of input VAT.
The attention of the purchaser should alsobe drawn to a potential VAT exemption whichmay be applicable for properties that arealready commercialized. Additionally, theasset deal may be deemed as the transfer ofan organized business unit, which is out of thescope of VAT.
VAT regulations are very complex andtricky in this respect, meaning in-depth insightinto the transaction tax aspects are required,especially given that the threat of an incorrectqualification of the VAT rate imposes a signifi-cant risk for the purchaser: He may bedeprived of the right of a VAT deduction of theincurred VAT amount.
However, despite the existence of poten-tial VAT risks, there is still place for tax opti-mization which may be dealt with successful-ly with the assistance of experienced tax advi-sors, allowing for financing cost cuts and addi-tional cash benefits for the investor. ●
LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Beata Stasiek-JuszczyƒskaTax Director, KR Group
KR Group
ul. Owsiana 12, 03-825 Warsaw, Poland
Tel.: +48 22 262 81 00, fax: +48 22 616 13 38
office@krgroup.pl, www.krgroup.pl
Lokale Immobilia talks to Edgar Rosenmayr,managing director and member of the board ofreal estate developer and investor KulczykSilverstein Properties (KSP), about thecompany’s investment plans in the Polishmarket
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KSP’s Edgar Rosenmayr says the development of high
rises is one of his company’s strengths
OCTOBER 8-14, 201220 www.wbj.pl LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Infrastructure
WWaarrssaaww ppuurrssuueessPPPPPP ppaarrkkiinngg pprroojjeeccttThe municipalauthorities areproposing eightpotential locationsacross the city
Warsaw City Hall is looking
for a private investor with
whom it could develop sever-
al multi-storey underground
parking lots within a public-
private partnership formula.
The authorities hope con-
struction on the first such
facility could launch in 2015.
“We estimate that we will
finish the negotiations in
2013 and in the following
year the selected private part-
ner will be securing building
permits. We expect that con-
struction on the first parking
lots could launch in 2015,”
Jaros∏aw Kochaniak, deputy
mayor of Warsaw, said in a
statement.
Warsaw City Hall has
come up with proposals for
eight potential locations for
the planned parking lots in
the capital’s ÂródmieÊcie and
˚oliborz districts, each of
which could contain from 120
to 1,000 parking spaces.
The locations are mostly
some of the busiest squares in
central Warsaw and include
Plac Bankowy (Bank
Square), Plac Konstytucji
(Constitution Square) and
Plac Trzech Krzy˝y (Three
Crosses Square) in the capi-
tal’s downtown. A total of up
to 2,500 new underground
parking spaces could be
developed in those places,
the authorities hope.
The selected private part-
ner will manage the newly
developed parking lots for a
specific, to-be-negotiated,
period of time. The entity will
finance the whole project and
will have revenues from the
operation of the parking
facilities and the accompany-
ing commercial spaces.
The municipal authorities
are looking for an investor
that has built at least one
multi-storey underground
parking lot for 200 or more
cars, designed at least one
completed facility of this kind
and managed at least two
paid underground parking
lots for at least 200 cars over
the last five years.
The goals of developing
the planned underground
parking lots include vacating
the spaces above ground that
are now occupied by cars in
the proposed locations and
improving parking conditions
in downtown Warsaw, War-
saw City Hall said in the
statement.
A consortium of consult-
ing companies Ernst &
Young Corporate Finance,
EC Harris and DLA Piper
has already provided Warsaw
City Hall with a preliminary
feasibility study for the proj-
ect. The advisors will also
support the municipal
authorities in the process of
selecting the private investor.
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Warsaw authorities hope to add up to 2,500 parking spaces through the scheme
“We expect thatconstruction onthe first parking
lots could launchin 2015”
OCTOBER 8-14, 2012 www.wbj.pl 21LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Ronson launches M∏odyGrunwald in Poznaƒ
Warsaw Stock Exchange-listed
developer Ronson Develop-
ment has launched construc-
tion on the first phase of its
M∏ody Grunwald multifamily
residential investment in Poz-
naƒ, in western Poland. Kar-
mar is the general contractor
of the development.
The M∏ody Grunwald proj-
ect is located at the intersec-
tion of ul. Jeleniogórska and
ul. Kamiennogórska in the
city’s Grunwald district. The
whole scheme will deliver 268
apartments when completed.
The first phase of the invest-
ment will comprise 136 housing
units. They are priced from
over z∏.5,400 to z∏.6,500 per sqm
and include homes that qualify
for the “Family on its Own”
subsidized mortgage program
for first-time home buyers.
Ronson Development has
been active in the Polish mar-
ket since 1999. The company,
which has been listed on the
Warsaw bourse since 2007, is
currently involved in projects
including Espresso, Verdis and
Sakura in Warsaw.
AAddaamm ZZddrrooddoowwsskkii
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M∏ody Grunwald will deliver a total of 268 apartments
Residential
WWSSEE ddeevveellooppeerrss sseeeehhoommee ssaalleess sslluummppAnalysts say strictercredit and regulatorypolicies are behindthe drop
A group of 11 major residen-
tial developers listed on the
Warsaw Stock Exchange sold
a total of 1,690 new homes
during the third quarter of
this year, a 6.8 percent drop
compared to Q3 2011.
After the first nine
months of the year, cumula-
tive sales totaled 5,147 units,
a decrease of 9.8 percent y/y.
On a quarterly basis, new
home sales actually rose in
Q3, according to BRE Bank
data.
Experts say the fourth
quarter should see similar
levels of new home sales to
Q3, since developers are
likely to continue taking
advantage of a govern-
ment subsidy program
that finishes at the end
of this year.
“That’s the reason
why Q3 was better on
a quarter-on-quarter
basis – developers have
been using the govern-
ment subsidies to help
them sell new homes,” said
Piotr Zyba∏a, a real estate
analyst at BRE Bank. “The
year-on-year slump, howev-
er, is caused by more funda-
mental factors: because of
the stricter credit policies of
Polish banks and of the regu-
lator,” he added.
When the subsidy pro-
gram ends, new home sales
are expected to fall on a
quarterly basis.
“The only way new home
sales could stay on a similar
level as today would be if the
regulator were to introduce
less strict regulations on
mortgages,” Mr Zyba∏a said.
“However, despite there
being polit-
ical will for
such regu-
latory changes, no hard deci-
sions have been made,” he
added.
Authors of a report on the
state of the Polish residential
and commercial real estate
markets, published last week
by the National Bank of
Poland, noted that the indus-
try is now undergoing heavy
restructuring to adapt to
increasing competition and
lower demand.
However, they feel that the
situation of the average com-
pany in the sector does not
warrant major
concerns, at
least for the
moment.
GGPP,, RRAA
Home sales have fallen as lenders come up against
stricter regulations
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OCTOBER 8-14, 201222 www.wbj.pl LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
Logistics space market
PPoollaanndd pprroovviiddeess ssttaabbiilliittyy ffoorr rreeggiioonnWarehouse completionvolumes are rising fastin Poland, helping tosupport the widerregion The warehouse market in
Poland has picked up the pace
so far in 2012 and is helping to
prop up the wider Central
European logistics market,
according to industry experts.
In the first half of 2012,
some 305,000 sqm of ware-
house space was completed in
Poland – double the volume
delivered in the corresponding
period of last year, and more
than twice as much as in H1
2010, according to a report by
CBRE.
Most of the warehouse
space in Poland is being built
in the Upper Silesia region
and in the city of Poznaƒ.
“At present approximately
251,000 sqm of modern ware-
house space is under construc-
tion in Poland. Most of the
space is built in Upper Silesia
and in Poznaƒ,” Colliers Inter-
national wrote in a recent
report.
Cushman & Wakefield esti-
mated that some 370,000 sqm
of warehouse space was com-
pleted in Central Europe in
H1 2012. The combined value
of the space is put at €170 mil-
lion. As most of this ware-
house space is in Poland,
experts say the country is one
of the biggest stabilizing fac-
tors in the Central European
warehouse market.
Stabilizing influence“The biggest warehouse space
transactions have been noted
in Poland,” said Ferdinand
Hlobil, head of the Central
European Industrial Depart-
ment at Cushman & Wake-
field. “Poland has been [one of
the] main stabilizers in the
region,” he added.
Mr Hlobil said that regard-
less of the ongoing economic
crisis in Europe, the industrial
real estate market in Central
Europe is in relatively good
shape. He added that develop-
ers’ and investors’ plans to
continue their activity indi-
cates that there is a possibility
that the sector could see satis-
factory profits.
The number of warehouse
transactions in Poland has nev-
ertheless been low compared
to the volume seen in the
office and retail markets, due
to the limited availability of
high-quality schemes.
In Q1 2012, just one invest-
ment transaction was finalized
in the logistics sector, with
Hines purchasing a portfolio of
Prologis projects for €96 mil-
lion. In Q2, two investment
deals were closed: Ideal Idea
Park II in Warsaw was pur-
chased by BPH FIZ and Good-
man sold a built-to-suit project
in Legnica to Case Tech.
Output gapThe Polish warehouse space
market is facing a serious out-
put gap, which means develop-
ers will engage more in specu-
lative projects, Jones Lang
LaSalle said in a report.
However, Tomasz Olszew-
ski, head of the industrial
agency for the CEE region at
Jones Lang LaSalle, said
speculative projects won’t be
implemented on a large scale,
and will only enter the market
in H2 2013. He explained that
the small supply of specula-
tively built facilities is prima-
rily the result of restrictive
bank policies. Lenders, he
said, are reluctant to provide
loans for projects which have
not secured lease agreements.
According to Colliers
International, the outlook for
the industrial market for the
next few months is optimistic.
“Rising demand for mod-
ern warehouse space results in
the decrease of vacant space
levels in certain markets which
may increase rental rates.
Almost all projects under con-
struction are already leased.
However, developers still have
a significant amount of land
prepared for warehouse proj-
ects that will be able to satisfy
the demand of prospective
tenants,” said Maciej Chmie-
lewski, a partner in the indus-
trial and logistics department
at Colliers International.
IIzzaabbeellaa DDeeppcczzyykk
CO
UR
TE
SY O
F C
BR
E
Some 305,000 sqm of logistics space was delivered in Poland in H1, 2012. Pictured
is Prologis Park Wroc∏aw III, which was delivered in 2011
Logistics by numbersPolish warehouse market in the first half of 2012
Warsaw (city) Warsaw (peripheries) Upper Silesia Poznaƒ Central Poland Wroc∏aw
Supply (sqm) 526,100 1,976,600 1,322,600 1,001,100 977,500 651,500
New supply in H1 2012 (sqm) 6,800 68,500 58,900 59,500 41,200 36,300
Net demand in H1 2012 (sqm) 17,700 61,200 105,900 32,900 60,000 66,100
Vacancy rate in H1 2012 (sqm) 12.5% 19.0% 4.5% 3.4% 13.7% 13.4%
Source: Jones Lang LaSalle
OCTOBER 8-14, 2012 www.wbj.pl 23LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– SSPPEECCIIAALL EEXXPPOO RREEAALL EEDDIITTIIOONN
PrzemyÊl as aninvestment location
Case study
Why did REM II decide to invest in thisparticular special economic zone?
Andrzej Pichur: The decision to invest inthe PrzemyÊl special economic sub-zonewas a natural continuation of the develop-ment of our company. In the first years wewere selling our products, mainly in thePodkarpackie voivodship. Today we exportwindows and doors to much more demand-ing markets, mainly in Germany, Italy andSlovakia. Initially we were going to invest ina different zone, but eventually we decidedon PrzemyÊl. Our company has headquar-ters in the city PrzemyÊl and investing in thezone here meant our factory could be builttwo kilometers away from our offices. Also,the legal benefits were a factor that affect-ed our decision.
What made PrzemyÊl so attractive forREM II?The most important factors were the busi-ness aspects that I mentioned. It is impor-tant to underline that throughout the timewe have been present here as a company,we have experienced a very friendly envi-ronment in PrzemyÊl and very attractiveconditions to carry on with our businessactivities. We built a strong group of talent-ed people. Aside from that, as I am from
PrzemyÊl, I have been attached to this cityand I care about its growth and develop-ment. This is why I never considered mov-ing production elsewhere.
How much is your investment worth?
Our investment is worth z∏.7 million
When is REM II planning to start produc-tion?
We are currently preparing to launch pro-duction. As soon as we are done with theformal and legal issues we will launch pro-duction of the doors and windows of Hens-fort, which is the company which we intro-duced this year.
What were the positive surprises thatyou came across in PrzemyÊl once youmade the investment?
Even though we are from here, we werevery pleasantly surprised by the environ-ment of the zone. From our company’s win-dows you can see beautiful views. Anotherpositive surprise is the timely release of thebypass road in PrzemyÊl, which significantlyfacilitates the access to the economic zone,and ultimately makes it more attractive. ●
BROUGHT TO YOU BY MIASTO PRZEMYÂL
PrzemyÊl is a city with an area of46 square km and a population
of 66,909 inhabitants. Located ineastern part of the Podkarpackievoivodship, in southeastern Poland,today it is one of the easternmosttowns in the European Union andplays an important part in cross-border cooperation with Ukraine.
PrzemyÊl is a city with a fairlydiversified economic structure.The three main sectors whichhave developed here are heavyindustry, agritourism and recre-ation, but the city is also develop-ing the telecommunication, con-struction and service sectors.
The dominant industries here
are electrical machinery, woodproduction, mechanical engineer-ing, railway electromechanicalequipment, construction, lighting,furniture, textiles manufacturingand as cosmetics.
PrzemyÊl also boasts invest-ment areas in a subzone of theTarnobrzeg Special Economic
Zone. The zone offers ampleopportunities for investors inter-ested in penetrating markets inBelarus, Ukraine, Russia andPoland’s own fast-developing east-ern markets.
The SEZ provides investorswith public aid in the form of taxexemptions covering up to 70 per-
cent of total investment outlays,while it also offers labor costswhich are the lowest in Poland,according to officials.
The following is an interviewwith Andrzej Pichur, the CEO ofREM II, a maker of .in the PrzemyÊlsubzone, about why the companychose to invest in PrzemyÊl. ●
CO
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TE
SY O
F M
AC
IEJ F
IGIE
L /
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W.M
AC
IEJF
IGIE
L.I
NF
O
CO
UR
TE
SY O
F M
AC
IEJ F
IGIE
L /
WW
W.M
AC
IEJF
IGIE
L.I
NF
OC
OU
RT
ES
Y O
F M
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IEJ F
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WW
W.M
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IEJF
IGIE
L.I
NF
O
OCTOBER 8-14, 2012IINNTTEERRVVIIEEWW24 www.wbj.pl
Higher education
DDooeess PPoollaanndd pprroodduuccee ttoooommaannyy ggrraadduuaatteess??
Remi Adekoya: OECD figuresshow that Poland has one ofthe highest numbers of univer-sity-educated youth in Europeproportional to its population.But Andrzej Klesyk, head ofinsurer PZU, said recentlythat Polish universities aremerely “unemployment facto-ries.” Are they?Juliusz Madej: I have often
wondered to myself whether it
is a good thing that we have so
many graduates or a bad thing.
In my opinion, a higher educa-
tion should be an in-depth,
high-quality experience. In
reality, can we give half our
youth a thorough education? I
doubt that.
So you agree that Polish uni-versities produce graduateswho are bound to join the
ranks of the unemployed?Mr Klesyk accused us of not
preparing students for the
labor market. I beg to disagree.
Universities are not the only
ones to blame. Each particular
stage of the education system
in Poland requires improve-
ment, from the primary class-
rooms onwards. Changes in
educational policy and regula-
tions would help develop more
market-oriented curricula.
At Lazarski University, we
regularly conduct surveys
among businesses to ask them
what they expect from new
employees and how happy they
are with the graduates they
have. The fact is that they gen-
erally do not complain about
the level of knowledge young
people have, but about the
quality of their skills.
WBJ sits down with Juliusz Madej, president ofone of Poland’s best-known private institutionsof higher education, Lazarski University, to talkabout how prepared today’s graduates are forthe labor market, how Poland can develop aninnovative economy and what has changed foryoung Poles over the last two decades
CO
UR
TE
SY O
F L
AZ
AR
SK
I U
NIV
ER
SIT
Y
Economic
strength, weak-
nesses
Professional services firm
Grant Thornton recently
published its own
economic indicator which
blends GDP growth with 21
other factors that
influence the economy. In
this ranking, Poland
gained 57.2 points out of a
possible 100, placing the
country in 28th spot among
50 countries examined in
the study, Puls Biznesu
reported. Poland’s strong
points include a high level
of business activity and a
favorable political
framework, while weak
points include a low level
of R&D investments.
Joblessness
costs state
z∏.10.5 blnThe long-term
unemployed, namely
people who have been
unsuccessfully looking for
a job for at least one year,
pose a serious social
problem in Poland and are
a source of lost revenue
for the state budget. They
cost taxpayers z∏.10.5
billion a year, according to
calculations made by
Deloitte. ●
“Today, Poland has a‘copy-cat’ economy.Technology is simplytransferred here”
– Juliusz Madej
OCTOBER 8-14, 2012 IINNTTEERRVVIIEEWW www.wbj.pl 25
What kind of skills?Soft skills in particular.
Employers look for graduates
with excellent communication
skills and the ability to cooper-
ate, which many young people
apparently lack. They also
expect advanced computer
skills and fluency in one or two
foreign languages. Some com-
plain about the young people’s
attitude to work, their commit-
ment and so on. Many of these
skills are, to a large extent,
shaped earlier on in life, by the
family environment and later
in primary and secondary
schools.
Why is it that young Poleshave trouble working in agroup?Poles are known as being very
individualistic …
So are Americans, but theyoften manage to cooperateeffectively.The current model of educa-
tion actually discourages coop-
eration between students. In
primary and secondary schools
the emphasis is on individual
achievement benchmarked
against that of others. At
Lazarski, we make sure stu-
dents have opportunities to
enhance their skills in this
sphere. For instance, students
are given group tasks and then
asked to conduct peer evalua-
tion. Do they give their col-
league who they know cheated
during a task an A or an F? No
matter what they decide they
will give the matter much
thought – and that in itself is a
good lesson.
What do your professors complain about regardingtheir students?There seems to be a Europe-
wide problem – the level of
general knowledge demon-
strated by university candi-
dates is gradually decreasing,
year by year. For a time math
was not obligatory on A-level
exams, which was a big mis-
take. Also, literature is no
longer compulsory, so young
people read less and less.
Again higher institutions are
not to blame for the level stu-
dents are at when they enter
universities!
How has the situation ofyoung Poles on the labor mar-ket changed over the last twodecades?In the 1990s the world offered
many opportunities to young
people. There was a huge
demand for educated workers
and people’s careers moved
fast. In two or three years, you
could move up several levels
on the ladder.
Today it is very different.
There is a global crisis, which is
affecting Poland as well. Nowa-
days it is difficult to get a job
even if you are very well-pre-
pared. For young people who
made an effort to study hard at
university, this can be extreme-
ly frustrating. Back then the
labor market was benign, today
it is cruel.
What are some things the gov-ernment could do to improvethe situation of Polish univer-sities?Greater autonomy for higher
institutions, also a leveling of
the playing field between pri-
vate and public universities.
So you think private universi-ties are discriminated against?Yes, we are. For example, pub-
lic universities are subsidized
while private universities
aren’t. Under the Higher Edu-
cation Act of 2005, private uni-
versities could receive subsi-
dies for full-time students;
however the minister of higher
education has not yet issued an
order that would enforce this
regulation.
A lot is made of Poland’s needto transform into a knowledge-based economy, but that does-n’t seem to be happening at aparticularly fast pace. Whatcan the government do tohelp?Today, Poland has a “copy-cat”
economy. Technology is simply
transferred here. This is
strange because Poles are
extremely creative and innova-
tive as a people. There are no
major international IT firms
where Poles don’t work. So it’s
not we universities that are
making the mistakes, because
we are producing these people.
It’s the government and
regional authorities who must
now do their part. There
should be serious tech hubs in
Poland. Why isn’t there even
one in Warsaw?
So you think private universi-ties should receive moneyfrom the government?Money is not even the biggest
problem. There are actually
significant EU funds available
for that purpose. What we
need is someone who will
organize things from the logis-
tical point of view. The real
money is in innovation. Also,
in trying to copy others effec-
tively, we have to compete with
serious players like China and
India.
Why do you think the Polishgovernment is not doing itspart?I am not sure whether it is the
government or external fac-
tors. We are not operating on
an island. There are powerful
players in Europe who have no
interest whatsoever in Poland
becoming an innovative econo-
my and gaining competitive
advantage.
So you need to understand
all these things and have the
determination to push things
forward. ●
“There are powerfulplayers in Europe whohave no interestwhatsoever in Polandbecoming an innovativeeconomy or overtakingthem”
SH
UT
TE
RS
TO
CK
OCTOBER 8-14, 2012TTHHEE LLIISSTT26 www.wbj.pl
Construction & Real Estate
Construction Project Management CompaniesRanked by revenue from project management in 2011 www.bookoflists.pl
Rank
Company nameAddressTel./FaxE-mail
Web page
Revenue fromproject
management(z∏. mln)
Revenuefrom
architecturaldesign
(z∏. mln)
Totalrevenue (z∏. mln)
Land a
cquis
itio
n /
C
ost
est
imate
s /
Feasi
bili
ty s
tudie
s /
Inve
stm
ent
superv
isio
n
Fore
ign p
roje
ct
auth
ori
zation /
P
re-inve
stm
ent
/A
rchitectu
ral desi
gn /
Inve
stor
repre
senta
tion
Docum
ent
pre
para
tion
for
tenders
/Te
nder
managem
ent
Notable projectsrecently completed
Current projects
Number ofarchitects /Number oflicensed
architects
Number ofproject
managers /Number of
constructionengineers /Number oflicensed
engineers
Totalnumber of
employees /Year
founded inPoland
Ownership: Polish /Foreign
Top localexecutive /
Title
1
WS Atkins-Polska Sp. z o.o.ul. Bonifraterska 17, 00-203 Warsaw22 246-0700/22 246-0701atkins@atkinsglobal.plwww.atkinsglobal.pl
34.2(1)
25.7(1)
16.916.0
WNDWND1.5
WND
40.0(1)
33.0(1)
23.2WND
--✓✓
-✓✓-
✓-
A4 highway includingMurckowska junction -
investment supervision; Strykówring road; A2, A1 highways
LNG terminal - investmentsupervision (ÂwinoujÊcie); A2
highway Âwiecko-Nowy TomyÊl;Bielsko-Bia∏a ringroad
WNDWND
WNDWNDWND
WND1993
NoneWS Atkins International
Limited - 100%
Stephen NovisManaging Director
2
CH2M Hill Polska Ltd. Sp. z o.o.ul. Podgórska 34, 31-536 Kraków12 376-5500/12 376-5600officepl@ch2m.plwww.ch2m.com
26.117.818.524.0
----
26.117.818.526.4
-✓✓✓
✓✓✓✓
✓✓
WSK “PZL-Rzeszów” (Rzeszów)- modernization and extension;
project of extension ofproduction plant from cosmetics
industry (¸ódê); documentpreparation, extension andinvestment management
(Garwolin)
PKP PLK - construction ofswitchboard stations Kraków-Zab∏ocie, Kraków-Krzemionki
86
710128
1831996
NoneCH2M Hill International -
90%; CH2M HillInternational Engineering -
10%
Ruben A. RoblesVice President; General Director
3
URS Polska Sp. z o.o.ul. Rejtana 17, 02-516 Warsaw22 427-3700/22 427-3701warsaw@urs.comwww.ursglobal.com
19.815.427.426.8
----
70.877.880.554.2
-✓✓✓
✓✓-✓
✓-
Warsaw Railway Junctionfeasibility study; Pu∏awy ringroad; S69 high-speed road;
diametrical tram linereconstruction (Wroc∏aw); water
supply and sewage networkmodernization (¸ódê)
A4 highway Jaros∏aw-Korczowaand Rzeszów-Jaros∏aw; E-65
Pó∏noc and E-65 Po∏udnie railwaymodernization project; Wroc∏awWater Junction modernization;technical advice on highway
projects for GDDKiA
--
52212110
3111993
NoneURS Corporation - 100%
Simon HindshawManaging Director in Europe
4
PM Group Polska Sp. z o.o.ul. Kleciƒska 125, 54-424 Wroc∏aw71 354-8900/71 354-8901wroclaw@pmgroup-global.comwww.pmgroup-global.com
16.519.016.024.0
24.823.019.022.0
41.342.035.046.0
✓✓✓✓
✓✓✓✓
✓✓
Pittsburgh Glass Works; Autoliv;L’Oreal; 3M; Frito-Lay (Hamburg)
Weyerhaeuser; BAMA Europa;Mando Corporation; Fresh StartBakeries; Pasta Food Company
3020
418036
2331997
NonePM - 100%
Con MurphyManaging Director
5
Ove Arup & Partners InternationalLtd. Sp. z o.o. oddzia∏ w Polsceul. Królewska 16, 00-103 Warsaw22 455-4554/22 455-4555arup.poland@arup.comwww.arup.com
15.9(1)
16.5(1)
17.517.0
WNDWNDWNDWND
45.9(1)
54.0(1)
56.050.0
-✓✓✓
✓✓✓✓
✓✓
CH Silesia City Centre extension;Cracow Cyclotron (Kraków)
Galeria Katowicka (Katowice);National Forum of Music(Wroc∏aw); Atrium South
(Warsaw); CH Gdynia Wzgórze(Gdynia); hospital (˚ywiec)
--
2010045
1331998
NoneArup Group Limited UK -
100%
Andrzej Sitko; JanZabierzewski
Directors
6
Bureau Veritas Polska Sp. z o.o.ul. Migda∏owa 4, 02-796 Warsaw22 549-0400/22 549-0410biuro@pl.bureauveritas.comwww.bureauveritas.com
13.016.17.36.9
----
28.329.631.025.0
-✓✓✓
✓✓--
✓✓
Asbestos monitoring program inNestle plants; technical audit ofKing Cross Leopolis (Lviv); due
diligence for Greenlab; technicalaudit of B&B (Toruƒ)
Rezydencja Bia∏a 3 constructionproject management and
investment supervision; UrzàdSkarbowy investment
supervision (Piaseczno);Wilanów Office Park bank
monitoring (Warsaw)
--
---
721958
NoneBureau Veritas - 100%
Artur SrokaPresident
7
Hill International Sp. z o.o.ul. Marynarska 15, 02-674 Warsaw22 581-3777/22 581-3778warsaw@hillintl.com.plwww.hillintl.com.pl
11.09.020.034.0
----
11.09.020.034.0
-✓✓✓
-✓-✓
✓✓
GTC Platinium IV;GTC Platinium V
Z∏ota 44; Miasteczko Orange;PAOP Cold Store Gdaƒsk; Villa
Arte
11
165146
611991
NoneHill International - 100%
Irvin E. Richter; Jacek˚urawski; Grzegorz
WiÊniewskiBoard Member; ManagingDirector; Project Director
8
Prochem SAul. Powàzkowska 44C, 01-797 Warsaw22 326-0100/22 326-0101prochem@prochem.com.plwww.prochem.com.pl
10.68.67.322.9
18.622.232.436.0
186.0127.0183.0380.0
✓✓✓✓
✓✓✓✓
✓✓
Biological and ChemicalResearch Centre for University of
Warsaw (Warsaw); Faculty ofLinguistics and Modern
Languages for University ofWarsaw (Warsaw); storage and
transshipment of sulfuric acidbase for KGHM Metraco
(Szczecin); sewage sludgeutilization station in “Czajka”wastewater plant (Warsaw)
Special education center(Dàbrowa Górnicza); “Ochota”Center for New Technologies
(CeNT I and CeNT II) forUniversity of Warsaw (Warsaw);
Center of Clean CoalTechnologies (Zabrze);
organization of wastewaterpolicy on Barycz
177
112519
2031947
Prochem Holding - 24.7%;Legg Mason ZarzàdzanieAktywami - 15.5%; ING
TFI - 9.2%; OFE PZU “Z∏otaJesieƒ” - 8.4%
Steve G. Tappan - 9.8%
Jaros∏aw St´pniewskiPresident
9
Portico Project Management Sp. z o.o. i Wspólnicy Sp.k.ul. Gdaƒska 27/31, 01-633 Warsaw22 560-4900/22 560-4910office@portico.com.plwww.portico.com.pl
8.07.85.05.0
0.3---
8.37.85.05.0
-✓✓✓
✓✓✓✓
✓✓
The Forest Opera modernization(Sopot); Interferie Medical SPAHotel (ÂwinoujÊcie); educational
pavilionfor AGH University ofScience and Technology
(Kraków); IKEA store extentionand modernization (Kraków)
PZPN headquarters (Warsaw);radiopharmaceuticals productionplant (Mszczonów); Megapolisresidential complex (Kraków);Malachit Hotel modernizationand Aquapark construction(Âwieradów Zdrój); office
building on ul. Foksal (Warsaw)
WNDWND
WNDWNDWND
WND1998
Robert Pawlak; AleksandraWilczyƒska; Steven Davis
None
Robert PawlakPresident
10
AECOM Sp. z o.o.ul. Emilii Plater 53, 00-113 Warsaw22 822-0051/22 822-0108warsaw.europe@eacom.comwww.aecom.com
6.53.23.41.5
----
6.53.23.41.5
✓✓✓✓
✓✓✓✓
✓✓
Drainage of land for ArenaBa∏tycka stadium (Gdaƒsk
Letnica); Geronimo MartinsDystrybucja distribution center
(Sieradz); JP Morgan new office(Warsaw); John Deere Polskanew training and marketingcenter (Tarnowo Podgórne);Waste Management Facility
(Bielsko-Bia∏a Lipnik)
STOP.SHOP shopping malls(K´trzyn, M∏awa); Geronimo
Martins Dystrybucja distributioncenter (Lubartów); S17 high-
speed road Kurów-Lublin-Piaski;technical advice for GDDKiA;
extension and modernization ofIntegrated Waste Management
System (Pu∏awy)
31
10206
342004
NoneAECOM Limited - 100%
Jaros∏aw KarpiejukManaging Director
11
EC Harris Sp. z o.o. An ARCADIS companyul. Królewska 16, 00-103 Warsaw22 310-2222/22 310-2255echwarsaw@echarris.comwww.echarris.com
5.1(2)
11.610.59.9
WNDWNDWNDWND
12.2(2)
22.121.019.7
-✓✓✓
✓✓-✓
✓✓
TK Maxx stores; Logistics Centre(Gliwice); Panattoni logistics
center (Gliwice); Bumarheadquartes (Warsaw)
TK Maxx stores; CH GaleriaZamek (Lublin); TK Maxx stores;Galeria Garaldia (Starachowice);Schindler Polska headquarters
(Warsaw)
43
112412
401996
NoneEC Harris Holding - 100%
Marcin KlammerManaging Director
12
Lemminkäinen Polska Sp. z o.o.ul. Marconich 11/3, 02-954 Warsaw22 858-9837/22 642-7622lemminkainen@lemminkainen.plwww.lemminkainen.pl
4.740.252.8101.3
----
4.740.252.6112.0
-✓-✓
---✓
--
Suominen Production PlantExtention (Grodzisk Mazowiecki);CARGOTEC The Multi Assembly
Unit (Stargard Szczeciƒski)
Stora Enso Narew PM 5 papermill (Ostro∏´ka); Telefonika CableFactory - preconstruction phase
(Bydgoszcz)
--
7136
161996
NoneLemminkäinen
International - 100%
Eero PunovuoriManaging Director
Services
2011 / 2010 / 2009 / 2008
OCTOBER 8-14, 2012 TTHHEE LLIISSTT www.wbj.pl 27
Notes: Notes: NR = Not Ranked, WND = Would Not Disclose. Research for the List was conducted inOctober 2012. Number of employees and ownership structure are as of September 2012. All information per-tains to the companies’ activities in Poland. Companies not responding to our survey are not listed.Footnotes: (1) Financial year: April 1 - March 31; (2) Financial year: May 1 – April 30
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, omis-sions and typographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn.Monika Brysiak, ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to wbjbol@wbj.pl. Copyright 2011, Valkea Media SA.The List may not be reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
Rank
Company nameAddressTel./FaxE-mail
Web page
Revenue fromproject
management(z∏. mln)
Revenuefrom
architecturaldesign
(z∏. mln)
Totalrevenue (z∏. mln)
Land a
cquis
itio
n /
C
ost
est
imate
s /
Feasi
bili
ty s
tudie
s /
Inve
stm
ent
superv
isio
n
Fore
ign p
roje
ct
auth
ori
zation /
P
re-inve
stm
ent
/A
rchitectu
ral desi
gn /
Inve
stor
repre
senta
tion
Docum
ent
pre
para
tion
for
tenders
/Te
nder
managem
ent
Notable projectsrecently completed
Current projects
Number ofarchitects /Number oflicensed
architects
Number ofproject
managers /Number of
constructionengineers /Number oflicensed
engineers
Totalnumber of
employees /Year
founded inPoland
Ownership: Polish /Foreign
Top localexecutive /
Title
13
FS&P Arcus Sp. z o.o.ul. Gen. Abrahama 12/11, 03-982 Warsaw22 671-9525/22 671-1236fsparcus@fsparcus.com.plwww.fsparcus.com.pl
0.30.20.30.3
4.36.97.18.1
4.67.27.48.5
✓✓✓✓
✓✓✓✓
✓✓
Adria residential complex(Warsaw); Wilga 7 residentialbuilding (Warsaw); POEMA
residential building (Warsaw)
Karolkowa Business Park(Warsaw); Concept Tower
(Warsaw)
229
621
281988
Mariusz Âcis∏o - 79.3%;Andrzej Bàkowski - 12.4%
None
Mariusz Âcis∏oPresident
NR
Cushman & Wakefield PolskaSp. z o.o.Pl. Pi∏sudskiego 1, 00-078 Warsaw22 820-2020/22 820-2021info.poland@eur.cushwake.comwww.cushmanwakefield.com
WNDWNDWNDWND
WNDWNDWNDWND
WNDWNDWNDWND
✓✓✓✓
✓✓✓✓
✓✓
Galeria Mazovia interior design(P∏ock); Millennium Hall interior
design (Rzeszów)
Plejada (Sosnowiec); Tate & Lyle(¸ódê); Galeria Neptun
(Starogard Gdaƒski); GaleriaCeltic (Legionowo); GaleriaBursztynowa (Ostro∏´ka)
92
21-
1301991
NoneWND
Richard PetersenManaging Partner
NR
Gleeds Polska Sp. z o.o.Pl. Bankowy 2, 00-095 Warsaw22 531-2002/22 531-2003gleeds@gleeds.com.plwww.gleeds.com
WNDWNDWNDWND
----
WNDWNDWNDWND
✓✓✓✓
-✓-✓
✓✓
Park Biznesu Teofilów (¸ódê);office buildings for Ghelamco
(Warsaw); Chung Hongproduction plant (Biskupice
Podgórne); Villa Parc residentialcomplex (Warsaw); Campanile
Hotel, Premiere Class Hotel(Wroc∏aw)
Cosmopolitam (Warsaw);Nimbus (Warsaw); Nowy Targ
undergroung parking (Wroc∏aw);Rua Bonita residential complex(Kraków); logistics centers for
Panattoni
--
344527
651992
NoneGleeds Europe Holdings -
100%
Tadeusz JachowiczDirector
NR
JJM Sp. z o.o.ul. Ciechociƒska 26, 02-924 Warsaw22 646-1883 /22 842-6125jjm@jjm.com.plwww.jjm.com.pl
WNDWNDWNDWND
WNDWNDWNDWND
WNDWNDWNDWND
-✓-✓
-✓-✓
✓✓
WND
Electric works investmentsupervision (Józefos∏aw);
residential building (Piaseczno);technical supervision overPolservices office building
construction; residential building(Warsaw)
11
288
111991
Marek Poncyljusz - 50%;Jerzy Poncyljusz - 50%
None
Marek PoncyljuszPresident
NR
Tebodin Poland Sp. z o.o.ul. TaÊmowa 7, 02-677 Warsaw22 334-4111/22 334-4112info@tebodin.plwww.tebodin.pl
WNDWND41.341.3
WNDWND18.924.2
WNDWND60.270.8
✓✓✓✓
✓✓✓✓
✓✓
Ergo Arena sports andentertainment hall (Gdaƒsk,
Sopot); Farma Wiatrowa(Linowo); TSK Elektronica y
Electricidad bioethanol factory(Kostrzyn nad Odrà); Oxygen
office building (Szczecin);FACTORY Outlet Annopol(Warsaw); FUTURA Park
(Kraków); Gdynia railway stationreconstruction
Browar Lubicz office, residentialand retail complex (Kraków); T1
transshipment station in PortPó∏nocny (Gdaƒsk);
EUROCENTRUM Office Complex(Warsaw); wind turbines
(Pàgów, Laszki, Linów); Las Palmentertainment centre (Grodzisk
Mazowiecki); Coca-Colaproduction plant extension
1616
37267126
3272006
NoneTebodin - 100%
Petr BilekPresident
Services
2011 / 2010 / 2009 / 2008
OCTOBER 8-14, 2012MMAARRKKEETTSS28 www.wbj.pl
SO
UR
CE
: W
SE
PLN-EUR
4.11
38
4.10
20
4.11
15
4.12
02
4.09
33
4.07
66
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
04.0
4.5 PLN-USD
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
0
3.
1780
3.
1809
3.
1833
3
.189
6
3.1
646
3.13
53
3.0
3.5 PLN-GBP
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
0
5.15
71
5.13
84
5.14
36
5.14
16
5.09
97
5.07
26
5.0
5.5 PLN-CHF
3.40
08
3.39
25
3.39
82
3.40
44
3.37
68
3.36
49
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
03.0
3.5 PLN-RUB
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
0
0.10
28
0.10
22
0.10
24
0.10
25
0.10
15
0.10
12
0.10
0.11 PLN-100JPY
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
05.1
0
4.09
50
4.07
75
4.07
58
4.07
80
4.03
02
3.99
71
3.8
4.5
currency rates
The RPP and
its mysteries
Currency report
After the previous week’s
small movements, last week
the currency market was
much more volatile. Major
central banks didn’t shock
market participants, but
some macroeconomic data
had an impact.
Jobs increased in the pri-
vate sector in the US, while
the ISM Services index
increased. The EUR/USD
rebounded from its monthly
low of $1.28 all the way to
$1.30. Further upward move-
ments can be expected if
Spain asks for financial aid
and the ECB intervenes on
the bond market (supporting
the euro at the same time).
On the local market, we
experienced what we can call
a “shocking” decision. The
Monetary Policy Council
(RPP) – the rate setting arm
of the National Bank of
Poland – in its mysterious
ways, decided to keep inter-
est rates unchanged at 4.75
percent, despite all the signs
of an economic slowdown. It
seems to me that politics are
taking over rational deci-
sions and that the RPP made
a mistake by not cutting
interest rates.
The reaction on the z∏oty
market was immediate – the
slightly depreciating z∏oty
suddenly regained value. The
EUR/PLN tumbled from its
weekly high of z∏.4.12 all the
way to z∏.4.09 and continued
sliding to z∏.4.07 by the end of
the week.
Similarly, the USD/PLN
declined from z∏.3.20 to
z∏.3.13. Further appreciation
of the z∏oty is possible if the
euro also strengthens.
Otherwise, we should expect
a corrective movement and
see higher z∏oty exchange
rates this week. ●
Adam NarczewskiX-Trade Brokers DM SA
SO
UR
CE
: N
BP
Major indices
Top 5 Closing % change (week) 52-week high 52-week low
BBIZENNFI 0.23 43.75 0.69 0.13IFCAPITAL 0.46 43.75 14.97 0.29ATLANTIS 0.31 34.78 1.21 0.18OPTEAM 3.99 33.44 4.95 1.54BOMI 0.25 31.58 4.60 0.18
WIG 43,840.23 (October 4 close)
Change for the week: 0.18% 52-week high: 44,232.06
Change year to October 04: 14.41% 52-week low: 36,653.28
Top 5 Closing % change (week) 52-week high 52-week low
LOTOS 32.73 5.68 33.12 21.30KGHM 153.00 2.07 174.20 102.40BRE 321.40 1.71 323.50 233.00GTC 7.60 1.60 12.75 5.13BZWBK 236.90 0.38 240.00 207.80
Bottom 5 Closing % change (week) 52-week high 52-week low
HBPOLSKA 0.02 -33.33 1.47 0.01ADVADIS 0.05 -16.67 0.11 0.04AGROWILL 0.56 -16.42 0.97 0.56ALTERCO 0.72 -16.28 47.98 0.71ASSECOSEE 8.40 -15.55 9.90 6.81
Bottom 5 Closing % change (week) 52-week high 52-week low
POLIMEXMS 0.79 -10.23 2.09 0.46CYFRPOLSAT 14.30 -3.25 15.85 12.25BOGDANKA 121.80 -2.87 130.60 100.90PGE 17.99 -2.76 21.78 16.72PGNIG 4.00 -1.72 4.39 3.61
WIG20 2,370.18 (October 4 close)
Change for the week: -0.24% 52-week high: 2,417.32
Change year to October 04: 8.02% 52-week low: 2,035.80
mWIG40 2,373.93 (October 4 close)
Change for the week: 1.20% 52-week high: 2,561.94
Change year to October 04: 8.39% 52-week low: 2,076.52
sWIG80 9,972.58 (October 4 close)
Change for the week: 1.55% 52-week high: 10,536.29
Change year to October 04: 15.90% 52-week low: 8,604.31
NewConnect 34.24 (October 4 close)
Change for the week: -1.38% 52-week high: 43.83
Change year to October 04: -17.47% 52-week low: 33.85
WIG-Banki 6,314.38 (October 4 close)
Change for the week: 0.19% 52-week high: 6,495.06
Change year to October 04: 13.91% 52-week low: 5,163.30
DJIA13,575.36 (Oct 4 close)
0.66% (for the week)
CHANGE: 9.50%
(year to Oct 4)
52-week high: 13,653.20
52-week low: 11,051.10
NASDAQ3,149.46 (Oct 4 close)
0.41% (for the week)
CHANGE: 18.90%
(year to Oct 4)
52-week high: 3,196.93
52-week low: 2,441.48
S&P5001,461.40 (Oct 4 close)
0.98% (for the week)
CHANGE: 14.43%
(year to Oct 4)
52-week high: 1,474.51
52-week low: 1,150.26
FTSE1005,827.80 (Oct 4 close)
0.84% (for the week)
CHANGE: 2.24%
(year to Oct 4)
52-week high: 5,989.10
52-week low: 5,075.20
DAX7,305.21 (Oct 4 close)
0.21% (for the week)
CHANGE: 20.24%
(year to Oct 4)
52-week high: 7,478.53
52-week low: 5,366.50
NIKKEI2258,824.59 (Oct 4 close)
-1.40% (for the week)
CHANGE: 3.09%
(year to Oct 4)
52-week high: 10,255.20
52-week low: 8,135.79
world stock indices
40,000
41,000
42,000
43,000
44,000
45,000
07.0
9
10.0
9
11.0
9
12.0
9
13.0
9
14.0
9
17.0
9
18.0
9
19.0
9
20.0
9
21.0
9
24.0
9
25.0
9
26.0
9
27.0
9
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
2,200
2,260
2,320
2,380
2,440
2,500
07.0
9
10.0
9
11.0
9
12.0
9
13.0
9
14.0
9
17.0
9
18.0
9
19.0
9
20.0
9
21.0
9
24.0
9
25.0
9
26.0
9
27.0
9
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
2,200
2,240
2,280
2,320
2,360
2,400
07.0
9
10.0
9
11.0
9
12.0
9
13.0
9
14.0
9
17.0
9
18.0
9
19.0
9
20.0
9
21.0
9
24.0
9
25.0
9
26.0
9
27.0
9
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0 9,200
9,360
9,520
9,680
9,840
10,000
07.0
9
10.0
9
11.0
9
12.0
9
13.0
9
14.0
9
17.0
9
18.0
9
19.0
9
20.0
9
21.0
9
24.0
9
25.0
9
26.0
9
27.0
9
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
33.0
33.6
34.2
34.8
35.4
36.0
07.0
9
10.0
9
11.0
9
12.0
9
13.0
9
14.0
9
17.0
9
18.0
9
19.0
9
20.0
9
21.0
9
24.0
9
25.0
9
26.0
9
27.0
9
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0 5,900
6,020
6,140
6,260
6,380
6,500
07.0
9
10.0
9
11.0
9
12.0
9
13.0
9
14.0
9
17.0
9
18.0
9
19.0
9
20.0
9
21.0
9
24.0
9
25.0
9
26.0
9
27.0
9
28.0
9
01.1
0
02.1
0
03.1
0
04.1
0
Other indices
Strong start,
weak finish
Stocks report
Polish stocks opened last
week with strong gains, as
investors shrugged off unflat-
tering economic data in
Europe. The first day of
October saw shares dip ini-
tially, with the blue-chip
WIG20 losing close to half a
percent within the first few
hours of trading. Despite
worse-than-expected indus-
trial data in Poland being
announced, shares managed
to claw their way up by noon,
helped partially by strong
openings by other major
indices. For the day, the
WIG20 closed 1.2 percent
higher, with financials Hand-
lowy and PKO BP leading the
way.
Last Tuesday saw less
enthusiasm, with shares
struggling to continue their
gains. European indices
opened much lower, with
both the DAX and CAC40
losing close to 1 percent with-
in the first hour of trading.
The WIG20, after a relatively
volatile session ended the day
flat, while shares on the
small-cap sWIG80 saw hefty
gains, pushing the index up by
0.85 percent for the day. The
next day, despite stronger-
than-expected macroeco-
nomic data from across the
Atlantic, Polish stocks
opened much lower, with
blue-chips losing nearly half a
percent. Shares of TVN and
Kernel were hit hard.
On Thursday, despite reit-
erated commitment from the
ECB to preserve the euro,
shares fell. Polish blue-chips
were hit hard, shares of
KGHM in particular – it shed
2.5 percent.
On Friday, the WIG fin-
ished up 1.56 percent while
the WIG20 rose 1.73 per-
cent. ●
Andrew Nawrocki WBJ market analyst
OCTOBER 8-14, 2012 SSPPOORRTTSS www.wbj.pl 29
BILANS Accounting and Consulting Company Ltd.,02-729 Warszawa, 195 Rolna st., tel. (+ 48) 22 212 86 27-29, mobile: (+48) 502 057 107 e-mail: Jacek@bilans.eu
www.bilans.eu www.bilans.eu
> Establishment of companies> Accounting services> Payroll and human resources> Law and notary offices> Payment recovery and debt recovery> Permits for foreigners> Seat for the company
Motorsports
KKuubbiiccaa wwiinnss aannootthheerr rraallllyy
The Polish driver isbidding to return toFormula 1
Polish racing driver Robert
Kubica made another big step
towards achieving his goal of
returning to Formula 1 after
winning the Citta di Bassano
rally in northern Italy.
The 27-year-old won
seven of the nine stages in a
near flawless performance to
show Formula 1 team bosses
that despite his injury prob-
lems, he still has the talent to
compete at the very highest
level.
The former BMW and
Renault driver, who finished
fourth in the 2008 Formula 1
championships told journal-
ists, “I still have a long road in
front of me. … But this shows
the road is not as long as we
thought.”
This was Mr Kubica’s third
rally and second overall victo-
ry since his return to racing
after he received horrific
injuries, including a partially
severed right arm, in a crash
during the Ronde di Andorra
rally in February 2011.
Following this latest win,
the driver’s surgeon Igor
Rosello said Mr Kubica is
now 50 percent recovered.
DDaavviidd IInngghhaamm
The Pole reached thefinal of the Pan PacificOpen in Tokyo
Poland’s top tennis star,
Agnieszka Radwaƒska, has
maintained her grip on a top-
three spot in the WTA rank-
ings despite losing the final of
the Pan Pacific Open in Tokyo.
The 23-year-old Kraków
native lost 6-0, 1-6, 6-3 to Rus-
sia’s Nadia Petrova, as she
failed to retain the title she
captured last year.
Ms Radwaƒska currently has
8,015 points in the race for the
number-one spot, behind Rus-
sia’s Maria Sharapova in second
(8,435) and Belarus’ Victoria
Azarenka in first (10,095).
Ms Radwaƒska’s younger
sister Urszula moved up four
places to 32nd – a career high
in the WTA rankings – after
she reached the third round of
the Tokyo event. DDaavviidd IInngghhaamm
SH
UT
TE
RS
TO
CK
Prior to his accident last year, Robert Kubica was a force to be reckoned with in F1
SH
UT
TE
RS
TO
CK
Agnieszka Radwaƒska has held on to third place in the WTA rankings
Tennis
RRaaddwwaaƒƒsskkaa kkeeeeppsstthhiirrdd--ppllaaccee rraannkkiinngg
DAILY EXECUTIVE DIGEST
S i g n u p f o r a 2 - w e e k f r e e - t r i a l ! w w w. p o l a n d a m . p lG e r m a n v e r s i o n : w w w. p o l e n a mm o r g e n . p l
Poland A.M. gives you the biggest Polish stories of the day.
Have the most valuable news delivered to your inbox each weekday morning.
OCTOBER 8-14, 2012LLIIFFEESSTTYYLLEE30 www.wbj.pl
The CranberriesOctober 14Torwar, ul. ¸azienkowska 6a Warsaw
Led by the distinctive voice of
Dolores O’Riordan, Irish rock-
ers The Cranberries carved out
a niche for themselves in the
1990s mainstream music scene.
The 1993 single “Linger,”
propelled the band to stardom
and enabled their first album
“Everybody Else Is Doing It,
So Why Can’t We?” to go
multi-platinum across the
globe and in the process help
the band crack the lucrative
US market at their first
attempt.
Their second album “No
Need to Argue,” which con-
tains the band’s biggest hit,
“Zombie,” improved on the
success of their debut, selling a
remarkable 17 million copies
worldwide.
Although big sellers, the
next three releases failed to
achieve the same success and
in 2003 the band went on a hia-
tus to allow members to work
on other material.
But after reforming in 2009,
the group, which hails from
Limerick, is back on tour to
promote its sixth record,
“Roses.”
DDaavviidd IInngghhaamm
Concert
IIrriisshh rroocckkeerrss rreettuurrnnThe Cranberries lead singer Dolores O'Riordan
CO
UR
TE
SY O
F W
IKIM
ED
IA C
OM
MO
NS
HoolsUntil November 11Zach´ta Galleryul. Ga∏czyƒskiego 3 Warsaw
This fascinating new exhibi-
tion attempts to answer
whether young artists can
afford to be hooligans, and
whether a fascination with
damage or destruction is part
of the path to revolutionary
change or just an artistic
strategy to improve populari-
ty.
The objects, films and
paintings in this exhibition
are all arranged in a way that
presents different degrees of
tension, from those less con-
trolled, such as impulsive
aggression, to those that are
more subtle, poetic or
metaphorical.
“They create a feeling of
threat and at the same time
act on us magnetically. …
They are a demonstration of
human strength in the battle
with oneself,” a statement on
the gallery’s website reads.
The exhibition, curated by
Katarzyna Ko∏odziej and
Magdalena Komornicka,
presents the work of artists
including David Adamo, Olaf
Brzeski, Klara Lidén, Joris
van de Moortel, Ahmet
Ögüt, Ariel Schlesinger,
Konrad Smoleƒski, and
Satoru Tamura.
DDaavviidd IInngghhaamm
For more informationlog on to zacheta.art.pl
Exhibition
VViioolleenntt aarrtt??
Film Music in ConcertOctober 14Sala Kongresowa Palace of Culture and SciencePl. Defilad 1Warsaw
A must for film buffs, this con-
cert sees music from a live sym-
phony orchestra mixed with
clips from some classic movies
to bring famous soundtracks to
life.
The majority of the music
comes from Hollywood’s most
famous composer, John Wil-
liams, who wrote the scores for
almost 100 films, winning five
Oscars in the process for
soundtracks including “Jaws”
and “Star Wars.” The concert's
website bills the event as a cel-
ebration of Mr Williams’ “80th
birthday year.” Mr Williams
turned 80 this past February.
This performance, which
will be conducted by Maciej
Sztora, will see the Polish Sym-
phony Ochestra perform clas-
sic musical arrangements from
“Superman,” “Star Wars,”
“Jurassic Park” and “Forrest
Gump,” among others.
In addition to music com-
posed by Mr Williams, there
will also be performances of
scores from other acclaimed
soundtrack composers such as
Hans Zimmer (“Gladiator”)
and James Horner (“Titanic”).
Tickets for the event are
priced from z∏.49.
DDaavviidd IInngghhaamm
For more informationlog on to kongresowa.pl
Concert
CCiinneemmaa ssoouunnddss
For more information log on to torwar.cos.pl
When Techeye was a lad, technology
was for geeks, and geeks were for bul-
lies to beat up. That was the natural
order of things.
Normal people did not think cut-
ting-edge technology like the Com-
modore 64, with its ginormous key-
board and arcane datasette, was cool.
Highly innovative inventions like
“The SunSack,” a codpiece covered in
solar cells that we personally designed
back in high school, were ridiculed.
Then, somewhere
along the
way, technology became a fashion
statement, catching Techeye com-
pletely off guard. One day it wasn’t
enough to love technology for its
own sake – suddenly technology had
to be aesthetically pleasing too. Just
when we had finally lined up a
financial backer to mass produce
SunSacks.
But whatever. The world has
changed and Techeye is changing
along with it. No more high-tech
undies. And we’re replacing our ugly-
but-functional netbook, the one that’s
missing its “m” key, with something
more svelte and less “m”-
asculated.
To that end, we’ve
been looking at the lat-
est ultrabooks – light-
weight, high-end
notebooks – to find
something both
fashionable and
geektastic. One
product line that
fits that de-
scription
is the
Aspire S7 series, which manu-
facturer Acer (Acer.com) has
designed as a rival to Apple’s
MacBook Air.
The Aspire S7 is available in
two screen sizes, 11.6 inch and
13.3 inch, both of which boast
lithe aluminum unibody frames
and full-HD touchscreens. The
devices run Windows 8 and are
powered by Intel i5 or i7 proces-
sors.
The larger model offers 12
hours of battery life; its smaller
sibling offers nine hours. Other
niceties include a backlit key-
board that senses (and adjusts
to) the lighting in its environ-
ment, a reportedly efficient
cooling system and a solid-state
drive (up to 256 GB).
And how much will you pay
for all of this dapper technolo-
gy? Around $1,465 for an i5 version
with 128 GB of SSD storage, which is
more than you would pay for a com-
parably kitted MacBook Air.
Samsung’s Series 5 Ultra Touch,
meanwhile, is aiming more for the
mid-market. This too is a Windows 8
device and it’s got a 13-inch (non-
HD) touchscreen. As with Acer’s
ultrabooks there are Intel
chips inside, though your choice is
between the i3 and the i5 (rather than
the higher-end i7). As for storage, you
get a 500 GB hard drive.
And that’s it. Oh, Samsung would
probably blather on about “advanced
engineering” or “powerful compo-
nents,” but we’ve covered the impor-
tant stuff. Pricing and availability?
Approximately $1,200, on offer from
late October.
In today’s world of well-heeled
technology, either of these ultrabooks
would be a good present for a geek or
a bully. But for a bully looking to beat
up a geek, the Aspire S7, with its alu-
minum unibody, would definitely be
the bludgeoning tool of choice.
After all, the natural order of
things hasn’t changed that much. ●
OCTOBER 8-14, 2012 LLAASSTT WWOORRDD www.wbj.pl 31
GGeeeekkss,, bbuulllliieess aanndd uullttrraa--ffaasshhiioonnaabbllee uullttrraabbooookkssTech Eye
Ever used an expensive piece of technology as a weapon? Let us know: techeye.wbj@gmail.com
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The Series 5 Ultra Touch
The Aspire S7
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