PT Urban Issues No. 009-10

No. 009-010 / 14th April 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

[email protected]

tel. +48 504 182 308

OFFICE Wisher Enterprise will develop a new office project in downtown Warsaw page 2 Owners are planning to thoroughly refurbish K1, the tallest office building in Krakw page 3

RETAIL Warsaw has room for more retail projects, said participants in the Primetime Warsaw II conference organized by Poland Today earlier this month page 3

RESIDENTIAL The largest Warsaw Stock Exchange-listed residential developers have reported very good Q1 apartment sales results page 4

LOGISTICS Prologis is developing a new speculative project near Wrocaw page 5

INTERVIEW Poland Today talks to Filippo Rean, head of MIPIM markets at Reed MIDEM page 5

LATEST LEASE DEALS IN BRIEF Recent lease transactions in the office, retail and warehouse sectors page 7

COMING & GOING Joerg Kreindl, CBRE page 7

Facts &Figures Largest completions, largest lease deals and rents in the commercial property market in 2013 page 8

The complex will neighbor the Warsaw Spire site Photo: Skanska Property Poland

SkanskaSkanskaSkanskaSkanska unveils Generation Park projectunveils Generation Park projectunveils Generation Park projectunveils Generation Park project Developer Skanska Property Poland has revealed the architec-tural design of the planned Generation Park office project in downtown Warsaw, the largest scheme in the portfolio of the company page 2

weekly newsletter # 009-010 / 14th April 2014 / page 2

OFFICE

Skanska unveils design Skanska unveils design Skanska unveils design Skanska unveils design of its largest office of its largest office of its largest office of its largest office investment in Polandinvestment in Polandinvestment in Polandinvestment in Poland

The Generation Park project will comprise approx-imately 80,000 sqm of leasable office space Image: Skanska Property Poland

Developer Skanska Property Poland has revealed the architectural design of its planned Generation Park office project in Warsaw. The scheme will be the largest investment to have ever been developed by the company. Designed by the renowned JEMS

Architekci architectural studio, the development will be located near the Daszyskiego Roundabout in the Wola district of the Polish capital, on a plot neighbouring the ongoing Warsaw Spire project which is being built by Ghelamco. Skanska Property Poland acquired the developed 13,000-sqm site, which is conveniently located just next to a new second metro line stop, due to be completed later this year, from Ruch in 2012. Cur-rently the developer is continuing the demolition of a number of warehouse and office buildings stand-ing on the plot in question and is waiting for the Warsaw authorities to issue a building permit for the planned complex. The Generation Park project will comprise three of-fice buildings, including one 140-metre skyscraper. The scheme will deliver a total of approximately 80,000 sqm of leasable office space. Skanska Prop-erty Poland hopes to be able to launch construction on the development in the upcoming months. The first building in the park, which will be built by con-struction company Skanska, is scheduled to be completed in the first quarter of 2016.

OFFICE

Wisher Enterprise to Wisher Enterprise to Wisher Enterprise to Wisher Enterprise to build new office build new office build new office build new office project in Warsawproject in Warsawproject in Warsawproject in Warsaw

Developer Wisher Enterprise will soon launch con-struction on a new office project in downtown War-saw which will be located on ul. Grzybowska in the Wola district of the Polish capital. The company is going to start building the scheme, which will be

developed on a plot neighbouring the existing The Mint of Poland building, within the next few weeks and hopes to deliver the development at the turn of the second and the third quarter of next year. Wisher Enterprise, known for the ongoing Silver Tower office and hotel investment in downtown Wrocaw, is currently in the process of selecting a general contractor for its new Warsaw project. The scheme will feature 13 storeys and will comprise almost 11,000 sqm of leasable space. Cushman & Wakefield experts designed the development and secured the building permit for it.

The scheme will be developed on a site neigh-bouring the Mint of Poland building Image: Cushman & Wakefield

Several other new office investments are expected to be developed on ul. Grzybowska in the upcoming years. Developer Golub GetHouse has just launched construction on its Prime Corporate Center project that will deliver approximately 20,000 sqm of leas-


able office space. Another site in the same street, on which an office scheme with around 16,700 sqm of leasable space can be developed, is expected to be acquired by a major developer in the near future, with Colliers International being involved in the selling process. The area of ul. Grzybowska is an established loca-tion in the Warsaw office market and the delivery of the second metro line will further strengthen its status, said Bolesaw Koodziejczyk, senior consult-ant, valuation and consultancy, at Cushman & Wakefield. He added that more than 135,000 sqm of office space is currently under construction in the so-called near Wola area. The continued large tenant interest in that part of Warsaw should enable the launching of new projects in the near future, Koodziejczyk said.

OFFICE

Tallest office building Tallest office building Tallest office building Tallest office building in Krakw in for major in Krakw in for major in Krakw in for major in Krakw in for major refurbishmentrefurbishmentrefurbishmentrefurbishment

Pramerica Real Estate Investors and WX Manage-ment Services, part of the Austrian group Warim-pex, are going to start refurbishing K1, the tallest of-fice building in Krakw, later this month. Formerly known as Bkitek, the building stands 76 metres tall and is a landmark of the Krakw skyline. The refurbishment of the structure, which comprises 12,800 sqm of leasable space, is scheduled to finish in October this year. The refurbishment works will put the building back on the Krakw office map, making it one of the

most interesting office locations in Krakw, Chris-tian Fojtl, managing director at WX Management Services, said in a statement. The architectural de-sign of the refurbishment of the K1 building has been prepared by the international architectural studio Rolfe Judd. JLL is responsible for the com-mercialization of the property.

A night view of Krakw with the K1 building in the background

Image: JLL

RETAIL

Warsaw with room for Warsaw with room for Warsaw with room for Warsaw with room for new shopping centre new shopping centre new shopping centre new shopping centre projectsprojectsprojectsprojects

The Polish capital still offers opportunities for the development of new shopping centres, said partici-pants in the Primetime Warsaw II conference which Poland Today organized in the city earlier this month. Also the high-street retail in Warsaw has much potential for further development in the upcoming years, but a number of major hurdles are

yet to be cleared, the participants in the conference said. There is much room for malls in Warsaw but the municipal authorities have to decide where the fu-ture shopping centres should be located, said Leszek Sikora, managing director at ECE Pro-jektmanagement Polska. Is has been a long time since a new large-scale shopping centre was last developed in Warsaw, Sikora said. Piotr Go-dziewicz, director of capital market CEE at BNP Paribas Real Estate, pointed out that the Polish capital has one of the lowest shopping centre pene-tration rates among the largest cities in Poland. Admittedly, Warsaw Stock Exchange-listed devel-oper Globe Trade Centre is now planning two large shopping centre projects in Warsaw, but it is not known yet when exactly the company will be able to launch construction on them. The schemes, called Galeria Wilanw and Galeria Pnocna, will respectively be located in the Wilanw and Bia-oka districts of Warsaw in which many new housing estates have been developed in recent years.

Poland Today held its Primetime Warsaw II con-ference in the Polish capital earlier this month Image: Poland Today


Vice Mayor of Warsaw Micha Olszewski (right) speaking at the Primetime Warsaw II conference

Image: Poland Today

Meanwhile, there could soon emerge an opportu-nity for the development of a new large-scale retail project in downtown Warsaw. PKP is now planning the redevelopment of the ten-hectare Warszawa Gwna site that houses a former railway station and a museum, Jarosaw Bator, managing director for real estate at the company, said. Jarosaw Zagrski, commercial and business development di-rector at Ghelamco, stressed that the developers of the new malls should make sure that their centres offer something different from the existing retail of-fer in Warsaw. Ghelamco itself will not be develop-ing malls, but will rather focus on small conven-ience centres, he said.

During a panel discussion devoted to the high-street retail in Warsaw, the participants discussed the various factors hindering the development of that sector of the market. Marta Machus-Burek, di-rector at Colliers International, mentioned owner-ship and legal issues, property claims and the lack of sufficiently large retail units as some of the major problems faced by the high streets in Warsaw.

Piotr Krawczyski, managing director, board mem-ber, at Kulczyk Silverstein Properties, pointed to management problems. It is much easier to manage a shopping centre than a high street in which the properties belong to many owners, he noted. Ac-cording to Micha Olszewski, the Vice Mayor of Warsaw, solving the ownership issues will take many years. However, he was convinced that the downtown of Warsaw, as well as the Praga area which Warsaw City Hall plans to revitalize, have big high-street potential.

RESIDENTIAL

Largest developers Largest developers Largest developers Largest developers reporting reporting reporting reporting very very very very good Q1 good Q1 good Q1 good Q1 sales resultssales resultssales resultssales results

Supervisory board president Kazanelson: Robyg could sell more than 2,000 apartments this year

Image: Robyg

The two largest Warsaw Stock Exchange-listed residential developers active in the Polish market have recently reported very good apartment sales results for the first quarter of this year. The housing giants Robyg and Dom Development, which respec-tively offloaded 1,731 and 1,605 apartments last year, both saw their apartment sales improve y/y in the first quarter of 2014.

Dom Development president Jarosaw Szanajca, described Q1 as a good period for developers Image: Dom Development

Robyg sold a record 576 apartments in Warsaw and Gdask, the two cities in which it is active, in the first quarter of 2014, which marked an over 90% in-crease over the same period of last year. The com-pany hopes to continue this trend in the upcoming months and sell a total of more than 2,000 housing units in 2014, said Oscar Kazanelson, president of the supervisory board at Robyg. For its part, Dom Development sold a combined 400 housing units in Warsaw and Wrocaw in Q1 2014, which would mean an 18% increase over the


same period of last year, according to preliminary data published by the company. Even though the first quarter of this year did not bring record sales of new apartments, Dom Development views it as a successful period for the industry, Jarosaw Szana-jca, president of the management board at the com-pany, said in a statement. Also the other Warsaw Stock Exchange-listed resi-dential developed have shown good Q1 apartment sales results. Admittedly, they were slightly worse than in Q4 2013 but much better than in Q1 2013. The aggregate sales results of eight major listed de-velopers Budimex Nieruchomoci, Dom Devel-opment, Inpro, JW Construction, Marvipol, Pol-nord, Robyg and Ronson increased by 63% y/y in the first quarter of this year, according to DM BZ WBK data.

LOGISTICS

Prologis developing Prologis developing Prologis developing Prologis developing new speculative new speculative new speculative new speculative project near Wrocawproject near Wrocawproject near Wrocawproject near Wrocaw

Distribution space developer and manager Prologis has launched construction on a new speculative project near Wrocaw that constitutes the last phase of its Prologis Park Wrocaw III park. The scheme will comprise 18,240 sqm of space, of which 6,800 sqm has already been pre-leased to Neuca and Metalcom, and is scheduled to be completed in the third quarter of this year. For many months now we have been witnessing increasing demand for modern warehouse space in the Wrocaw area, Ewa Zawadzka, vice president,

head of development, at Prologis in Poland, said in a statement. Prologis Park Wrocaw III is located seven kilometres to the south-east of Wrocaw and comprises a total of more than 130,000 sqm of space. The park is currently more than 90% leased out.

The new development will be the last phase of the Prologis Park Wrocaw III park Image: Prologis

INTERVIEW

International inInternational inInternational inInternational investors vestors vestors vestors increasingly active increasingly active increasingly active increasingly active across Europeacross Europeacross Europeacross Europe

Poland Today talks to Filippo Rean, head of MIPIM markets at Reed MIDEM, about the latest edition of the MIPIM annual international property fair in Cannes, France, and the plans of the organizers for the upcoming years. Poland Today: TPoland Today: TPoland Today: TPoland Today: The attendance at MIPIM usually he attendance at MIPIM usually he attendance at MIPIM usually he attendance at MIPIM usually well reflects the overall situation in the global well reflects the overall situation in the global well reflects the overall situation in the global well reflects the overall situation in the global

real estate markets. Judging by how the latest real estate markets. Judging by how the latest real estate markets. Judging by how the latest real estate markets. Judging by how the latest edition of the fair went, what is the market seedition of the fair went, what is the market seedition of the fair went, what is the market seedition of the fair went, what is the market sen-n-n-n-timent right now?timent right now?timent right now?timent right now? Filippo Rean: Filippo Rean: Filippo Rean: Filippo Rean: This 25

th edition reflected markets positive mood and showed signs that the post-2008 distressed territories, particularly in Southern Eu-rope, are coming back into favour with investors. This was visible at MIPIM with, for example, the extended presence of Spain in the MIPIM exhibi-tion area, with private and public companies from Madrid, Barcelona and the Catalonia Region. Investors confirm their strong interest in real estate assets. For example, they have accelerated their ac-tivities in the Central European markets and more particularly in Poland. Beyond the question of in-vesting in Europe, or in an individual country, they are now considering the attractiveness of cities and sectors within countries. Also Asian investors are taking an increasingly international approach and several deals and joint ventures were announced during this MIPIM. Which trends concerning the Polish presence at Which trends concerning the Polish presence at Which trends concerning the Polish presence at Which trends concerning the Polish presence at MIPIM could be seen this year?MIPIM could be seen this year?MIPIM could be seen this year?MIPIM could be seen this year? The general feedback from the Polish cities and companies at MIPIM is very positive. All major Polish cities, including Warsaw, d, Krakw, Wrocaw, Pozna, Gdask and Katowice exhibited at MIPIM with their partners, highlighting the leading role of these cities in supporting the proper-ty sector with ambitious long-term projects. New Polish exhibitors such as Konin, Zielona Gra and Lublin, together with the Lublin Region, also at-tended MIPIM this year. [A number of] ambitious Polish projects were showcased this year, among them a new section of the Warsaw metro, the largest local government in-


vestment in Poland. The Polish real estate invest-ment volume hit a record level in 2013, according to the Polish Real Estate Report recently published by Cushman & Wakefield. With a stable economy, Po-land remains an attractive investment destination in Europe. MIPIM this year celebrates the 25MIPIM this year celebrates the 25MIPIM this year celebrates the 25MIPIM this year celebrates the 25

thththth aaaannnnniversary niversary niversary niversary of its existence. How has the event changed over of its existence. How has the event changed over of its existence. How has the event changed over of its existence. How has the event changed over the period, both in terms of its scale and its fothe period, both in terms of its scale and its fothe period, both in terms of its scale and its fothe period, both in terms of its scale and its for-r-r-r-mula?mula?mula?mula? The first MIPIM took place in 1990 in a completely different economic environment. When MIPIM was created, it was a very innovative idea to launch a trade fair based on the globalisation of real estate investment. At that time, the property industry was still very local with few international investors. MIPIM certainly helped to accelerate the globalisa-tion of real estate investment as it gathered together the key actors in the industry from all over the world. It contributed to the opening of the market by welcoming each year new participants from countries which were still new for the real estate industry. MIPIM kept adapting to the new economic context and focusing on the best way to meet clients re-quirements. A lot of initiatives have been undertak-en in this way, like, for example, the recent pro-grams dedicated to the specific growing segments such as logistics, sports, health care real estate, and the focus on innovation in real estate with the crea-tion of the MIPIM Innovation Forum. We know that good decisions start with good information, and thats the reason why the conference program has also been reinforced to offer a comprehensive overview of the industry so that the participants can have a clear vision to facilitate a more thorough un-derstanding of the future.

Poland Today talks to: Filippo Rean, head of MIPIM mar-kets at Reed MIDEM What areWhat areWhat areWhat are your goals and priorities when it comes your goals and priorities when it comes your goals and priorities when it comes your goals and priorities when it comes to the further development of MIPIM in the uto the further development of MIPIM in the uto the further development of MIPIM in the uto the further development of MIPIM in the up-p-p-p-coming years?coming years?coming years?coming years? Changes in the financing of buildings, end-user ex-pectations, increasing urbanization, and the diversi-fication strategies of investors will have an impact on the real estate industry and, therefore, on MIPIM. My main priority for the further develop-ment of MIPIM now and in a few years to come, is to bring MIPIM in line with the expectations and needs of our clients. I am convinced that in the cur-rent changing real estate environment, MIPIM can play a strategic role in allowing real estate profes-sionals to meet, discuss and exchange ideas on the different ways of facing challenges and boosting

their development. All my efforts and these of the MIPIM team are focusing on this goal. October 2014 will see the first edition of MIPIM UK, the first property trade show in the UK. This event will bring together over 3,000 decision mak-ers from all sectors of real estate and provide the first forum of its kind for professionals looking to close deals across all major sectors of the UK real estate market. It targets the leading real estate deci-sion-makers operating on the national, regional and local level in cities throughout England, Northern Ireland, Scotland and Wales. Like MIPIM in Cannes, it will showcase projects and give up-to-date insight into the market via a large exhibition area, a conference program and a number of UK-specific networking opportunities. What are some of the challenges which the oWhat are some of the challenges which the oWhat are some of the challenges which the oWhat are some of the challenges which the or-r-r-r-ganization ofganization ofganization ofganization of the fair is now facing or could face the fair is now facing or could face the fair is now facing or could face the fair is now facing or could face in the near fin the near fin the near fin the near fuuuuture?ture?ture?ture? Innovation is a continuing challenge for our events: innovation in the products we sell to our clients to enhance their visibility, innovation in our custom-ers services to make our shows at the same time more efficient and easier to handle, innovation in our events to keep following or even anticipating new trends and evolutions in the industries we are dealing with.

FILIPPO REAN Filippo Rean joined Reed MIDEM as Director of MIPIM and MIPIM Asia in 2010. Prior to that, he was European Head of Product Development for the investment man-agement business at GE Capital Real Estate. Rean has an engineering degree from the Politecnico di Torino and an MBA degree from Harvard Business School.


LATEST LEASE DEALS IN BRIEF

The Park Rozwoju complex in Warsaw Image: Echo Investment

AXI IMMO has recently represented three clients who have leased a total of almost 6,500 sqm of modern warehouse and office space at logistics cen-tres in Warsaw and in Bonie near the Polish capi-tal. Kurier Kurier Kurier Kurier and Pcms Pcms Pcms Pcms have leased a total of ap-proximately 4,350 sqm at Europolis Park Bonie, and NUAIR PolskaNUAIR PolskaNUAIR PolskaNUAIR Polska has extended its lease agree-ment for over 2,000 sqm at Distribution Park Okcie.

Galeria Bursztynowa in Ostroka Image: Cushman & Wakefield

EricssonEricssonEricssonEricsson, a global supplier of technology and ser-vices for telecommunication operators, has leased 3,600 sqm of office space at the Park Rozwoju pro-ject that Warsaw Stock Exchange-listed Echo In-vestment is currently developing in the Mokotw district of the Polish capital. The scheme will com-prise two buildings offering a combined 32,000 sqm of leasable space. The second phase of the invest-ment is scheduled for completion in the second quarter of next year.

The Outlet Center in Lublin Image: CBRE

4F4F4F4F, GreenpointGreenpointGreenpointGreenpoint, Triumph Triumph Triumph Triumph and TTTT----mobile mobile mobile mobile have leased a total of more than 300 sqm of retail space at the Galeria Bursztynowa shopping centre project which investor Narev Inwestycje is now building in Ostroka in north-eastern Poland. The Galeria Bursztynowa scheme is scheduled to open for busi-ness next month. It will comprise approximately 27,000 sqm of leasable retail space which will house around 60 stores.

Sportswear brand 4F 4F 4F 4F has leased 160 sqm of retail space at the Outlet Center project which Outlet Center Retail Management, part of the ADV Por Property Investment group, is now developing in Lublin in south-eastern Poland. The Outlet Center

scheme in Lublin will comprise 12,500 sqm of leas-able space and will house approximately 100 stores. The investment is scheduled to be completed in the fourth quarter of this year.

COMING & GOING

Joerg KreindlJoerg KreindlJoerg KreindlJoerg Kreindl

Joerg Kreindl has been appointed as Head of Indus-trial and Logistics, Central and Eastern Europe, at CBRE. He will be focusing exclusively on the ex-pansion and relocation of large-scale industrial oc-cupiers in the region. Kreindl has been coordinating the CEE Occupier Services business lines at CBRE out of the Warsaw office of the company for the last three years. Earlier he established and managed the Slovak office of CBRE for six years.

weekly newsletter # 009-010/ 14th April 2014 / page 8

FACTS & FIGURES

LaLaLaLargest industrialrgest industrialrgest industrialrgest industrial projects delivered in 2013projects delivered in 2013projects delivered in 2013projects delivered in 2013

Location Project Developer Area

(sqm)

Wrocaw Panattoni BTS Lear Panattoni 32,300

Silesia SEGRO Business Park Gli-

wice Building B SEGRO 31,700

Warsaw Tulipan Park Warszawa

Bulding B SEGRO 24,000

Silesia SEGRO Industrial Park

Tychy B SEGRO 18,300

Wrocaw Prologs Park Wrocaw V Prologis 18,282

Source: Colliers International

Largest office projects delivered in 2013Largest office projects delivered in 2013Largest office projects delivered in 2013Largest office projects delivered in 2013


(sqm)

Warsaw Konstruktorska

Business Center HB Reavis 48,300

Warsaw Miasteczko Orange Bouygues Immobilier 43,700

Warsaw Plac Unii BBI Development

/Liebrecht & wooD 41,300

Warsaw Marynarska 12 Ghelamco 40,000

Wrocaw Sky Tower LC Corp 28,100


LaLaLaLargest retailrgest retailrgest retailrgest retail projects delivered in 2013projects delivered in 2013projects delivered in 2013projects delivered in 2013


(sqm)

Gliwice Europa Centralna Helical Poland 67,000

Krakw Galeria Bronowice Immochan 60,000

Pozna Pozna City Center TriGranit 58,000

Gdynia

Centrum Riviera

(Wzgrze

extension)

Mayland Real Estate 70,500

Katowice Galeria Katowice

Meyer Bergman

European Retail

Partners/ Neinver

42,000


Selected Selected Selected Selected large investment transactions large investment transactions large investment transactions large investment transactions in 2013in 2013in 2013in 2013

Sector

Project

Value

(EUR mil-

lion)

Seller

Buyer

Retail Silesia City

Center

412 Immofinanz Allianz, ECE

Retail Galeria

Kazimierz 180

Globe Trade

Center,

Aventus

Invesco RE

Retail Galeria Domini-

kaska 151.7 ECE

Atrium

European Real

Estate

Office New City

127 ECI

Hines Global

REIT

Office Mokotw Nova

121 Ghelamco

Tristan Capital

Partners

Office Senator

120 Ghelamco

Union

Investment

In-

dustrial

H&M ware-

house

64 Invesco RE W.P. Carey

Indus-

trial era Park II 43.2

Area Property

Parners,

Apollo Rida

Poland

SEGRO


LLLLargest office lease dealsargest office lease dealsargest office lease dealsargest office lease deals in 2013in 2013in 2013in 2013

Location Tenant Area(sqm) Project Warsaw Polkomtel 22,680 Konstruktorska 4

Warsaw Getin Holding 18,850 Wola Center

Warsaw Urzd Rejestracji Lekw 13,000 Adgar Park West

Warsaw Bank Zachodni

WBK 11,800 Atrium 1

Wrocaw Getin Holding 11,700 Sky Tower


Retail rents (EUR/sqm/month), Q3 2013Retail rents (EUR/sqm/month), Q3 2013Retail rents (EUR/sqm/month), Q3 2013Retail rents (EUR/sqm/month), Q3 2013

2

0

3

0

4

0

5

0

6

0

7

0

8

0

9

0

dWrocaw

Tri-citySzczecin

PoznaKrakw

Warsaw (out of town)Silesia

Warsaw (city centre)

Source: Cushman & Wakefield

Office rents (EUR/sqm/month), Q3 2013Office rents (EUR/sqm/month), Q3 2013Office rents (EUR/sqm/month), Q3 2013Office rents (EUR/sqm/month), Q3 2013

Source: Cushman & Wakefield

1

0

1

5

2

0

2

5

Gdask

Szczecin

Katowice

Pozna

Krakw

Wrocaw

Warsaw (non-central)

Warsaw (CBD)

Largest industrial lease deals in 2013Largest industrial lease deals in 2013Largest industrial lease deals in 2013Largest industrial lease deals in 2013

Location Tenant Area(sqm) Project

Wrocaw Amazon 123,500 Goodman Wrocaw South

Logistic Center

Pozna Amazon 100,653 Panattoni Pozna

Wrocaw Amazon 100,653 Panattoni Wrocaw

Pozna supermarket

chain 82,385 -

Central Po-

land Castorama 49,961 Panattoni Park Strykw


Documents

PT Urban Issues No. 009-10