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

RRiissiinngg ssttoocckkAfter 22 years of trade, theWarsaw Stock Exchange is makingbig moves to keep it ahead of theregional competition 7

Since 1994 . Poland’s only business weekly in English

WW

W.W

BJ.P

L

The pension ‘trap’

Finance Minister JacekRostowski says Poland’sopen pension funds systemamounts to a “trap.”Business leaders beg todiffer 3

MMoonnuummeennttaall iiccoonnWhile Polish officials paid their finalrespects to Margaret Thatcher, localauthorities bickered over whethershe should be honored in their cities 5

RE

PO

RT

ER

A decade of qualityA special supplement on 10 years of CEEQA

4

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

News . . . . . . . . . . . . . . . . . . . . . . .2-4

Business . . . . . . . . . . . . . . . . . . . .6-7

Interview . . . . . . . . . . . . . . . . . . . . .8

Finance & Economics . . . . . . . . . . .9

Opinion & Analysis . . . . . . . . . . . .10

Lokale Immobilia . . . . . . . . . .11-13

The List . . . . . . . . . . . . . . . . . . . . . .14

Markets . . . . . . . . . . . . . . . . . . . . .17

Sports & Lifestyle . . . . . . . . . . . . .18

Last Word . . . . . . . . . . . . . . . . . . . .19

In this issue

• Plac Defilad

• M∏ociny makeover

• Impexmetal’s towers

11-13

CO

UR

TE

SY O

F C

OIM

PE

X

LLOOKKAALLEEIIMMMMOOBBIILLIIAARREEAALL EESSTTAATTEE

HistoricalperspectiveIsrael’s ambassador to

Poland talks about the

70th anniversary of the

Warsaw Ghetto

Uprising and the

tangled politics of the

Middle East 8

CO

UR

TE

SY O

F T

HE

IS

RA

EL

I E

MB

AS

SY I

N W

AR

SA

W

25

29

33

37

41

45

Netherla

nds**

Germany

United K

ingdomFra

nce

Portug

al

PolandSlo

vakia

Bulgar

ia

Czech R

epublic

Greece*

40.542.1

41.1 40.9 40.639.2

38.036.4 35.6

30.5

* Highest in EU** Lowest in EU

APRIL 22-28, 2013NNEEWWSS2 www.wbj.pl

Credit Suisse

moves Polish

stocks unit

to LondonCredit Suisse has

announced that it will

move its Polish stock-

trading unit to London.

The move follows a steep

decline in turnover on the

Warsaw Stock Exchange

in 2012. Credit Suisse is

the third-largest broker

on the WSE. The decision

is part of the bank’s €4

billion cost-cutting

program.

Energy firm

shareholders

sues TreasuryA group of utility

company shareholders

filed suit against the

State Treasury last week,

claiming that they have

lost money in the process

of consolidation of state-

owned energy firms. In

the process, their stakes

were exchanged for

shares in the newly

formed utility groups,

which they claim had a

lower value than the

original ones. The total

value of the claims may

reach z∏.250 million.

Poland closer

to visa-free

travel to US?US senators have

submitted a new bill to

Congress that could pave

the way to visa-free

travel for Polish citizens.

The proposed law is

based on the Jobs

Originating through

Launching Travel (JOLT)

Act, which was submitted

to Congress last year.

According to the proposal,

the main criterion for

acceptance into the US’s

Visa Waiver Program

would be a visa overstay

rate below 3%. Poland

would meet this criterion.

EP rejects

carbon

backloading

law

The European Parliament

has voted against an

intervention in the EU

Emission Trading Scheme

(ETS). The move, called

backloading, would mean

suspending auctions of

900 million CO2

emissions in 2013-2015,

in order to raise their

price. Polish MEPs are

part of a group that

opposed the proposal.

Poland’s energy sector is

heavily dependent on

coal. ●

Acron ................................................6

Agroton ..........................................17

APA Kury∏owicz & Associates ......11

ArcelorMittal ..................................11

Art Norblin ....................................11

Asseco ..............................................8

Asus................................................19

Azoty Tarnów....................................6

Bank Zachodni WBK........................9

BMW ..............................................11

Boryszew ........................................17

Burgundy AB ....................................7

Business Centre Club......................3

Cargill ............................................11

CBRE ..............................................13

CEE Stock Exchange Group ............7

Coimpex..........................................11

Creative ........................................19

Credit Suisse....................................2

Dantex ............................................13

E.L. Rothschild ................................2

EBRD ................................................6

EmiTel ............................................11

Emmerson......................................13

Erste Group ......................................7

EuRoPol Gaz ....................................2

Gazprom ..........................................2

Ghelamco ......................................11

Giorgio Armani ..............................13

Google ............................................19

Greiffenberger................................11

Grove ..............................................11

Gucci ..............................................13

Hyundai Motor Poland ..................11

Impexmetal ....................................11

Jastrz´bska Spó∏ka W´glowa........17

JW Construction ......................11, 13

KGHM ........................................6, 17

KPMG..............................................13

Lanvin ............................................13

LC Corp ..........................................13

LG Electronics Polska....................11

LOT ..................................................2

Louis Vuitton ..................................13

Medicover ......................................11

Moody’s ............................................3

Nestle Polska ..................................6

NYSE Euronext ................................7

Okam ..............................................13

Oslo Stock Exchange ......................7

PGNiG ..............................................2

Pirelli ..............................................11

PKO BP ............................................2

PKS Kielce......................................12

Polnord ..........................................13

Retail Provider ..............................12

Sharp ..............................................19

TriGranit ........................................11

Warsaw Stock Exchange..2,6,7,11,17

Waryƒski Holding Group................13

Wolf Bracka....................................13

X-Trade Brokers ............................17

Yareal ..............................................13

Yves Saint Laurent ........................13

ZA Pu∏awy ....................................2, 6

In a surprise move, PrimeMinister Donald Tusk dis-missed Miko∏aj Budzanowskifrom his post as Treasury Min-ister and appointed W∏odz-imierz Karpiƒski in his place.

As the primary grounds fordismissal, the prime ministercited the government’s lack ofknowledge about a memoran-dum signed between Polishpipeline operator EuRoPolGaz and Russia’s Gazpromregarding a feasibility study forbuilding a new gas pipelineacross Polish territory.

A report prepared on thematter by Poland’s Ministry ofInternal Affairs concludedthat while state-run gas giantPGNiG’s management knewabout the memorandum, itdidn’t inform Mr Budzanows-

ki about it. “Effective supervi-sion and a full exchange ofinformation are of key impor-tance,” Mr Tusk explainedafter announcing his decisionto dismiss Mr Budzanowski.

One of the first acts of hissuccessor, Mr Karpiƒski, willbe to make some changes atPGNiG. “The manner inwhich PGNiG’s managementacted does not arouse my trustor confidence that these man-agers can guarantee effectiveprotection of the public inter-est,” Mr Tusk said. “I willexpect the new Treasury Min-ister to take quick and decisiveaction in the matter ofPGNiG, including personneldecisions,” hinting that the gasgiant’s CEO Gra˝yna Piot-rowska-Oliwa might lose her

job. Within minutes of thenews, PGNiG’s stock droppedby 1 percent.

Mr Karpiƒski will also haveto continue with the rescueplan for the Polish state-owned airline LOT. It’s tooearly to tell if this change willaffect the future of the trou-bled carrier, whose recentlyappointed CEO SebastianMikosz was hand-picked byMr Budzanowski.

Mr Karpiƒski has been aCivic Platform member since2001, and from November2011 has been secretary ofstate in the Ministry of Admin-istration and Digitization.Between 2003-2005 he wasmanagement board memberat chemical firm ZA Pu∏awy.

KKWW,, JJCC

1%was Poland's annualized CPI inflation figure in March.

z∏.2.25 billionis how much PKO BP has earmarked for its dividend

on 2012 profits, which comes to z∏.1.80 per share.

z∏.1.5 billionis how much the budget will benefit from the record-low yields on Treasury bonds, according to Finance

Ministry estimates.

12is the number of meat production units closed by

Polish veterinary inspectors since the beginning of thehorse-meat scandal.

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

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

Quote of the Week

Growth for allLynn Forester de Rothschild, CEO of E.L. Rothschildand co-chair of the Henry Jackson Initiative for Inclu-sive Capitalism, says the the role of the private sectorin achieving economic growth that benefits everyonehas been neglected. Read more this week on WBJ.pl

On WBJ.pl

Numbers in the News

Company index

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

APRIL23 JEWELRY AUCTIONEvent: Pieces of jewelry from art deco and other

periods will go under the hammer. Thepieces include many spring colors andflower themes.

Location: DESA Unicum auction house, ul. Marsza∏kowska 34-50, Warsaw

Web: www.desa.pl

24-25 SPEED UPPP POLANDEvent: The Polish edition of the international “Speed

upp” conference will enable public-privatepartnership players to discuss key issuesand come up with solutions.

Location: Palace of Culture and Science, Plac Defilad 1, Warsaw

Web: www.ippp.pl

APRIL 30-MAY 2 ANNUAL INVESTMENT MEETINGEvent: AIM is an emerging markets FDI-focused

event that blends a trade fair with intellectu-al features aimed at enriching institutional,corporate and individual investors attendingwith a comprehensive set of guidelines fortheir future investment decisions in high-growth regions.

Location: Dubai International Convention and Exhibi-tion Center, Dubai, UAE

Web: www.aimcongress.com

MAY13-15 EUROPEAN ECONOMIC CONGRESSEvent: The congress will feature a number of

debates and meetings, featuring 6,000guests representing Poland and other Euro-pean countries, who will discuss the mostsignificant matters of economic and socialdevelopment in Europe.

Location: KatowiceWeb: www.eecpoland.eu

April/May

Calendar

W∏odzimierz KarpiƒskiIN THE SPOTLIGHT

Figures in focusWorking hard or hardly working?Average work week in selected EU states (hours per week)

Source: Eurostat, Sedlak & Sedlak

APRIL 22-28, 2013 NNEEWWSS www.wbj.pl 3

Pension funds

The pension polemic

The government wantsto “transfer” someprivate pension fundmoney to state coffers,but business leaderswarn it would only bea short-term solution

For weeks now an intensedebate on the future of openpension funds (OFEs), hasgripped Poland’s financial andeconomic circles. Poland’sentire pension system, which iscurrently being reviewed bythe Finance Ministry, is atstake.

Particularly harsh wordscame from Jacek Rostowski,Poland’s deputy prime minis-ter and finance minister, whosaid that “the intellectual sys-tem that has underpinned the[open] pension funds hasturned into rubble,” in aninterview with radio stationTOK FM last week. “We needto find a way to lead Polandout of this trap,” he added. Hehowever denied accusationsthat the government plans todo away with privately man-aged pension funds entirely.

Since its reform in 1999,Poland’s pension system hasbeen composed of a state-con-trolled Social Insurance Insti-tution (ZUS) and privately-managed open pension fundsthat receive part of employees’pension contributions eachmonth.

Now, as the first batch ofpensioners covered by boththe pay-as-you-go ZUS andprivate OFEs are to startreceiving payments next year,the government has to decidehow and which institution willpay out pensions from OFEs.Several options are being con-sidered. Pensions could bepaid out by OFEs themselves,by ZUS or by another agent,for example insurance institu-tions or a new public fund.

The government, based on

a recommendation from theLabor Ministry, would like tosee the assets from pensionfunds gradually shifted fromOFEs, which have accumulat-ed z∏.270 billion since theirconception in 1999, to thestate-controlled ZUS some 10years before a person’s retire-ment. Such a move wouldbring some z∏.40 billion to thestate budget in the first yearalone. The government mayalso reduce or entirely scrapfees private funds charge forcontributions.

A heated debateThe discussion on the futurepayouts became particularlyheated at the end of March,after OFE representativesannounced a highly unortho-dox proposal to replace life-long pensions with a fixed pen-sion payment period of 10-20years with an option for thepensioner’s family to inheritthe remainder of his or hersavings. The idea was quicklydenounced by politicians andeconomists.

At the beginning of April,Donald Tusk issued a warningto OFEs, saying that althoughthere were no plans to shutdown OFEs, they would not bemaintained at all costs. Healso stressed that it is ZUS andthe state which can guaranteea safe pension plan and that,“open pension funds, despitetheir creators’ intentions, donot guarantee high pensions.”Mr Tusk also vowed that thedebate on the future of OFEsin Poland would soon bebrought to an end.

Polish President Bronis∏awKomorowski took a more con-servative stance on changes toprivate pension funds. “I willbe open to discussion, but Iwant to know what results theproposed changes will havenot only for the next threeyears, but also in a 30-year per-spective,” Mr Komorowski

said in a radio interview withradio station RMF FM.

“I see a tremendous num-ber of flaws that have beenrevealed in open pensionfunds,” he said, but stressedthat any changes to the pen-sion system should be intro-duced carefully, because “itsmain advantage was its rela-tive stability, which is of greatimportance to future pension-ers.”

Government propaganda?Top Polish economists wereequally prompt to censureboth parties in the debate.Professor Marek Góra, co-cre-ator of the pension-fundreform, criticized OFEs forthe controversial fixed-periodpayment proposal, calling it“an attempt to flush pension-ers down the drain.” However,he also called the governmentproposal to transfer moneyback to ZUS a “dangeroussolution,” which has no otherpurpose than to cover the cur-rent budget deficit.

At a conference on April15, a group ofeconomists andp e n s i o n - f u n dexperts debatedthe Finance Min-istry’s proposals.“An earlier trans-fer of funds fromOFEs to ZUS is aloan, however, it’snot a voluntaryloan, but a forcedone,” said profes-sor Stanis∏awGomu∏ka, chiefeconomist at theBusiness CentreClub (BCC) anemployers’ advo-cacy group. Headded that themoney “would bespent immediatelyon current pen-sion payouts.”

The idea to transfer themoney from OFEs to the pay-as-you-go system was also crit-icized by Leszek Balcerowicz,a former finance minister andthe author of the marketreforms that led to Poland’stransformation into a marketeconomy in the 1990s. “Theword ‘transfer’ suggests thatthe money will be treated thesame way in the ZUS systemas if they remained in the capi-tal fund,” he said in an inter-view with TOK FM. “And, bynature, ZUS makes no sav-ings. This money would stopbeing savings and would sim-ply be used to plug the budgethole,” he added.

Mr Balcerowicz went as faras to call the government’s sug-gested changes “a grab ofpolitically easy money” and inan interview with Rzeczpospoli-ta warned that “the real goal ofthe whole campaign of discred-iting OFEs is to take away peo-ple’s pension savings.”

Cost-benefit analysisTaking the money from OFEsis definitely safer, politically

speaking, than doing awaywith the pension privilegesthat certain social groups, suchas miners, farmers or uni-formed services, have acquiredover the past 20 years andwhich cost some z∏.20 billion ayear, economists from theBusiness Centre Club wrote ina statement.

And the deficit in the pen-sion scheme is no trifle, either.“The deficit in the social pen-sion fund has been forecast atz∏.52.4 billion in 2013, and noless than z∏.360 billion in theperiod 2013-2017,” economistsfrom BCC wrote.

The cost-benefit analysis isnot as easy as it may seem,though. The government plansmay have dire repercussions,both long-term, when the sys-tem has to pay pensions to adisproportionally large groupof retirees in some 20-30 years;and also short-term, if itresults in the country’s creditrating being lowered.

Jaime Reusche, Moody’schief analyst for Poland,warned in an interview withReuters that if Poland shouldmove the assets, even partially,from the private OFEs to thestate social security system, theagency might consider loweringPoland’s rating, since the movewould indicate the country wasshifting away from business-and market-friendly policy.

However Mr Reuschequickly backed away fromthose statements a few hourslater in a separate interview

with the state-owned pressagency PAP, saying that thegovernment’s proposals wouldhave a positive influence onpublic finances in the shortterm, and that only a full,forced nationalization – whichthe government isn’t propos-ing – would be negative. TheFinance Ministry declared thatit was “satisfied” with his state-ments in that interview.

Many investors would seetransferring funds from OFEsto ZUS as similar to what theHungarian government did in2011 when it dismantled theprivate pension system. Cur-rently, ratings of countrieswhich have nationalized theirpension systems are belowinvestment levels, Mr Reuschewarned in the original inter-view, naming Hungary,Argentina and Bolivia asexamples of the route Polandshould not take.

There are, however, thosewho believe that “investorsmight accept such a solutionwith composure, as it will notincrease the amount of publicdebt,” Marcin Mazurek, a sen-ior analyst from BRE Banktold WBJ. He added that theministry’s proposal was a feasi-ble solution, since “it willenable the finance minister tocircumvent legislative limita-tions of exceeding the publicdebt threshold. Shifting somez∏.10-15 billion of assets fromOFEs to ZUS would give thebudget exactly how much it ismissing.” BBeeaattaa SSoocchhaa

CO

UR

TE

SY O

F K

PR

M/F

LIC

KR

CO

UR

TE

SY O

F B

AL

CE

RO

WIC

Z.P

L

“The intellectual systemthat has underpinned the[open] pension funds hasturned into rubble.”

– Finance Minister Jacek Rostowski

“Money [transferred fromOFEs to ZUS] would stopbeing savings and wouldsimply be used to plugthe budget hole.”

– Former Finance MinisterLeszek Balcerowicz

What’s at stakeOFE in numbers (as of March 29, 2013)

Number of OFEs 14

Number of OFE members 16,216,895

Value of OFE assets z∏.269.6 billion

Average three-year return (2010-2013) 16.636%

Minimum three-year return (2010-2013) 8.318%

Source: Polish Financial Supervision Authority

APRIL 22-28, 2013NNEEWWSS4 www.wbj.pl

Political systems

Polish democracy scores low in new rankingA recent study callsPoland’s democracy“flawed” and ranks itbelow that of Timor-Leste The quality of Poland’sdemocracy ranks fifth-lowestin the EU, above only Latvia,Hungary, Bulgaria and Roma-nia, according to the latestDemocracy Index, a regularreport published by the Econ-omist Intelligence Unit.

The index ranks 167 coun-tries and their political systemsbased on five criteria: electoralprocess and pluralism, civil lib-erties, the functioning of gov-ernment, political participa-tion, and political culture.

Poland scored high in the

first two categories: 9.58 and9.12 respectively (out of 10maximum points), but its scorein the other categoriesdragged down its ranking.

Poland’s score was espe-cially low in the category ofpolitical culture, at 4.38. Itreceived a score of 6.11 in thepolitical participation categoryand 6.43 in the functioning ofgovernment category.

Overall, Poland earned ascore of 7.12, the same as lastyear, putting it in 44th place,tied with Brazil and behindcountries such as Timor-Leste(43), Jamaica (39), and CostaRica (22).

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

“full democracy” tier of coun-tries, all of Poland’s EU peersin the Central and EasternEurope region were alsoplaced in the “flawed democ-racy” tier.

The study’s authors blamethe “flawed” state of democ-racies in the CEE region onthe changes most of the coun-tries had to implement to jointhe EU.

“That transition has result-ed in a large stratum of discon-tented voters who feel thatthey have lost out,” the reportreads.

“Another problem in theregion is that party politics isfragmented, primarily reflect-ing the shallow roots of manyparties and low voter identifi-

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

underlying fragility of east-central European political sys-tems was exposed.”

JJaacceekk CCiieessnnoowwsskkii

Democracy Index 2012

Rank Country Overall Score

1. Norway 9.93

2. Sweden 9.73

3. Iceland 9.65

14. Germany 8.34

16. United Kingdom 8.21

21. United States 8.11

28. France 7.88

42. Lithuania 7.24

44. Poland 7.12

122. Russia 3.73

Source: Economist Intelligence Unit

Margaret Thatcher

AA ccoonntteesstteedd lleeggaaccyyPolish officials paidtheir last respects toMs Thatcher, as localauthorities debatedhow to honor hermemory

Former Polish president andSolidarity icon Lech Wa∏´sa,Prime Minister Donald Tusk,Finance Minister Jacek Ros-towski and Foreign MinisterRados∏aw Sikorski wereamong 2,300 people from 170countries who attended thefuneral of the former BritishPrime Minister MargaretThatcher last week.

Ms Thatcher, dubbed the“Iron Lady” for her uncom-promising leadership style, hasbeen praised by Polish politi-cians for her role in helping to

bring down communism. MrSikorski even wrote on hisTwitter account that she“deserves a statue in Poland.”

But while government offi-cials were united in their praiseof Ms Thatcher, local authori-ties were divided. Politiciansfrom the Law and Justice partyin the Tri-city region proposedthat a street be named in herhonor. The idea was supportedby local Civic Platform politi-cians. Ms Thatcher visited theTri-city area, birthplace of theSolidarity movement, in both1988 and 2000.

However, local politiciansfrom leftist parties and repre-sentatives of the Solidaritylabor union were stronglyopposed. Piotr Duda, leader ofthe Solidarity union, said, “MsThatcher, despite her role in

fighting communism, wasinsensitive to social outcries.That’s why I’m against theidea.” Andrzej Ró˝aƒski, alocal Democratic Left Alliance(SLD) leader asked, “In thebirthplace of Solidarity, shouldwe really honor someone whothwarted workers’ unions inher own country?”

In Warsaw, local authori-ties for the Civic Platformparty suggested a roundaboutin central Warsaw be namedafter Ms Thatcher, thoughSLD politicians were hopingto name the same roundaboutafter Edward Gierek. MrGierek was first secretary ofPoland’s communist partyfrom 1970-1980.

As WBJ went to press, itseemed a compromise solu-tion had been reached to

name the roundabout after therailway station nearby.

Mr Sikorski has suggestedthat a statue of Ms Thatcherbe erected just outside theHala Mirowska marketplace

in central Warsaw, not farfrom the contested round-about. Ms Thatcher visitedHala Mirowska during her tripto Warsaw in 1988.

JJaacceekk CCiieessnnoowwsskkii

SH

UT

TE

RS

TO

CK

Will she have a statue in Poland?

70th anniversary of WarsawGhetto UprisingobservedPolish President

Bronis∏aw Komorowski,

Prime Minister Donald

Tusk, Mayor of Warsaw

Hanna Gronkiewicz-Waltz,

other dignitaries,

representatives of Jewish

communities and former

insurgents honored the

victims and the survivors

of the Warsaw Ghetto

Uprising last Friday, on

the 70th anniversary of

the beginning of the

revolt. “Warsaw is the only

city in the world that

stood-up to Nazi occupiers

three times. First in

September of 1939,

second in April of 1943

during the Ghetto Uprising

and finally in September

of 1944 when the Warsaw

Uprising started,” said Mr

Komorowski in his speech

at the foot of Warsaw’s

Monument to the Heroes

of the Ghetto. The Warsaw

Ghetto Uprising is a

symbol of Jewish

resistance against the

Nazis during World War II.

The month-long revolt

ended on May 16, 1943,

and claimed 13,000 Jewish

lives, while thousands of

survivors were captured

and sent to concentration

camps, where they were

murdered. ●

CO

UR

TE

SY O

F J

EW

ISH

MU

SE

UM

.OR

G.P

L

Warsaw

First phase completion Q 3 2012

Wroclaw

First phase completion 2015

Poznan

First phase completion 2014

T: (+48) 22 370 14 44 F: (+48) 22 820 91 40 E: info@swedecenter.pl W: www.swedecenter.pl

OVER 70%PRE-LEASED

Natural space for your business

Leasing +48 22 370 14 44

APRIL 22-28, 2013BBUUSSIINNEESSSS6 www.wbj.pl

Nestle Polska to investz∏.164 million in 2013This year, Nestle Polska plansto invest z∏.164 million to fur-ther develop its productionpotential, company officialsannounced, adding that thecompany wanted to developfaster than the fast-movingconsumer goods (FMCG)market in Poland.

“We have nine plants andwe want to further developthem. This year we will investz∏.164 million to modernizethem,” Nestle Polska boardmember for financial affairsChandra Kumar said.

In 2012 Nestle Polskarecorded sales revenues of

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

Nestle inaugurated itsoperations in Poland in 1993and currently its nine plantsemploy 5,100 people. AASS

Treasury sells its stake inAzoty Tarnów to EBRD Poland’s State Treasury sold12.1 percent of its stake inchemical conglomerate AzotyTarnów to various investors,including 5.75 percent to theEuropean Bank for Recon-struction and Development(EBRD) for z∏.296.4 million.

“Our involvement aims atactively promoting and sup-porting the privatisationprocess of the company,”Lucyna Staƒczak, EBRDdirector for Poland, said in ane-mailed statement.

“Poland has taken decisiveaction to consolidate thechemical sector and the nextstep now must be to make theplayers fit to compete on theglobal market,” she added.

“EBRD will use its stake topay special attention to therestructuring of the companyand the introduction of bestcorporate governance stan-dards.”

According to sources quot-ed by news agency Reutersprior to the deal, the movewas aimed at blocking Rus-sia’s Acron from increasing itsholding in the Polish compa-ny. Recently, Acronannounced that it had raisedits stake in Azoty Tarnów to12.9 percent and that it wouldcontinue to buy shares. It alsosuggested a strategic partner-ship between the firms.

The EBRD is obliged notto sell the stock for the next

12 months and the Treasurywill have preemptive rights tobuy them back.

The Treasury needed tosell a 12 percent stake byApril 24 in order to cut itsshare below 33 percent.Otherwise it would have beenlegally bound to increase itsstake to 66 percent, some-thing the government wantedto avoid considering budgetconstraints.

The Treasury stake inAzoty Tarnów had increasedto 45 percent as a result of thecompany’s merger with ZAPu∏awy, which began last yearand was completed early thisyear.

KKWW,, JJCC,, AAKK

Commodities

MMeettaallss pprriicceess ssiinnkk,,hhuurrttiinngg KKGGHHMM aanndd WWSSEE

With prices of mostcommodities fallingdrastically, copper andsilver miner KGHM’sstock has plummeted

China, one of the world’s largestconsumers of commodities,released weaker-than-expectedeconomic growth figures of 7.7percent against expectations of8 percent growth last week. Thenews sent commodities pricestumbling, with oil, soybeans,corn and wheat all seeing drops.Copper and silver were no

exception, dropping at variouspoints to 18- and 30-month lowsrespectively.

The drop in prices of thosetwo metals took a significanttoll on shares of Poland’sKGHM, one of the world’slargest miners of both. Thecompany’s stock price lostsome 10 percent last week.This year alone, KGHMshares have dropped an eye-watering 27 percent. Theother reason for the steepdrop is a recently introduced“mining tax,” which accordingto estimates, will cost KGHM

z∏.2 billion this year alone.Thus far KGHM’s manage-

ment has been playing it cool.“We do not plan to change ourbudgetary estimates or reviseour forecast for 2013, since thefirst quarter was in line with ourexpectations,” the company’sCEO Herbert Wirth toldReuters.

Not all investors share MrWirth’s calm. KGHM’s sharescomprise 15 percent of the valu-ation of the Warsaw StockExchange’s WIG20 index,which lost 3.44 percent thisweek. JJaacceekk CCiieessnnoowwsskkii

SH

UT

TE

RS

TO

CK

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

APRIL 22-28, 2013 BBUUSSIINNEESSSS www.wbj.pl 7

Stock exchange

22001133 ttuurrnniinngg oouutt ttoo bbeeaa bbiigg yyeeaarr ffoorr tthhee WWSSEE

The Warsaw StockExchange has justimplemented a newtrading system, andtalks have begun on apotential merger withits biggest regionalpeer

On April 16, 1991 history wasmade in Poland: the first trad-ing session on the newlyopened Warsaw Stock Ex-change began. While that daywas historic, it was a ratherslow one in terms of tradeturnover, at least by modernstandards. On the first dayonly five companies were list-ed, and the total value of tradewas some $2,000. Today, 437companies are listed on themain market of the WSE anddays with more than z∏.1 bil-lion in turnover are notuncommon. By market capi-talization, the WSE is thebiggest bourse in the CEEregion.

Looking aheadLast week saw the 22ndanniversary of that historicday, and was groundbreakingin its own right. On April 15,the WSE finally implementedits new trading system, theUniversal Trading Platform(UTP), which it obtained in apartnership with NYSEEuronext. The new platform isfaster, more secure and canhandle more operations. TheWSE’s management hopes itwill lure both investors andcompanies.

According to informationfrom various brokerages, asmany as 50 new companiesmay enter WSE this year. Apoll by ISBnews recentlyfound that brokers were work-ing on 36 IPOs, while 19 com-panies are looking to make the

move from the NewConnectalternative market to theWSE’s main market. Whilenot all of those companies mayend up listing this year, thenumber of IPOs still looks setto beat last year’s paltry figureof 19, the lowest number since2009.

Revolution and evolutionBut the introduction of the newtrading platform may not bethe only major change comingto the WSE this year. In April,it began preliminary mergertalks with the CEE StockExchange Group (CEESEG),which owns Wiener Börse, thestock exchange in Vienna, aswell as several other regionalexchanges including theBudapest and Prague bourses.Up till now CEESEG has beena regional rival, and officials onboth sides are emphasizing thattalks are at a very early stageand will not necessarily result ina deal.

Nevertheless, the move hasmostly been received positive-ly by the market. “I’m com-pletely in favor,” said AndreasTriech, CEO of Erste Group inan interview with German tel-evision station DAF. “I’m infavor of creating a big tradingcenter for Central and EasternEurope and I believe Warsawwould be a very good place,”he added. Erste Group is thesecond-largest shareholder inWiener Börse.

Those statements seem toimply that if the talks doindeed result in merger, theWarsaw side would take thelead. WSE CEO AdamMaciejewski confirmed thatwas the type of arrangementthe Warsaw bourse was look-ing for. “The cooperation withthe Vienna bourse may goaccording to almost all options

except the one in which theVienna bourse takes over theWarsaw bourse,” he told themedia last week.

Officials have said that thereason for this is that Warsawis a bigger stock exchange thanits Austrian peer. However,the Wall Street Journal quoteda source as claiming thatCEESEG’s shareholders arelooking to exit their invest-ment, and prefer selling toWarsaw than to Istanbul orMoscow.

Combining the twoexchanges would create aregional powerhouse – War-saw had a market capitaliza-tion of some €128.5 billion,while CEESEG’s was €123.9billion. Nevertheless, it wouldstill pale in comparison to themajor European exchanges.The Frankfurt Stock Ex-change’s market capitalizationat the end of March was €1.16trillion.

Defending its turfThe potential merger might bethe only possible way for WSEto continue to grow. “Stockexchanges are fully aware thatengaging in M&A activity is away to deal with current mar-ket conditions and the econom-ic backdrop,” said Peter Lenar-dos, analyst at RBC CapitalMarkets in an interview withFinancial News, adding that, “apotential merger would help tokeep these markets on theradar of institutionalinvestors.”

Indeed, regional competi-tion for the Warsaw StockExchange is heating up. In 2012the Russian MICEX and RTSexchanges merged to createMoscow Exchange. Early thisyear, the Oslo Stock Exchangeacquired the Swedish-basedtrading platform Burgundy AB.

JJaacceekk CCiieessnnoowwsskkii

MA

TE

US

Z G

O∏Ñ

B/W

BJ

The WSE wants to hold onto its position as regional leader

APRIL 22-28, 2013IINNTTEERRVVIIEEWW8 www.wbj.pl

Polish-Israeli relations

Common history

Ewa Boniecka: The 70thanniversary of the WarsawGhetto Uprising has just beenobserved. How important isthis date for Israelis?Zvi Rav-Ner: This anniversaryof the uprising is very impor-tant for Israeli society. Most ofthe survivors of the WarsawGhetto Uprising live in Israel,such as Szymon Ratajzer-Rotem, whose call sign was“Kazik,” and who was invitedby president Bronis∏aw Komo-rowski to take part in the com-memorations in Poland.

While the date of thebeginning of the Uprising isApril 19 in Poland, accordingto the Jewish calendar it is onHolocaust Day and it changesfrom year to year. This year itwas commemorated on April8. But the Israeli minister ofeducation came to attend thecommemoration ceremoniesin Poland.

Our countries share thecommon history of this heroicJewish uprising against Ger-mans occupying Poland duringWorld War II. Hundreds ofevents were organized to com-memorate this anniversary inPoland, such as performancesof the Israeli PhilharmonicOrchestra, ceremonies on ul.Prosta in Warsaw, where, afterthe fall of the Uprising, its sur-vivors led by Marek Edelmanand “Kazik” came out of theGhetto.

I know that hundreds ofPoles and guests from Israelparticipated in those celebra-tions, which are also veryimportant for the Jews livingin other countries.

Do you agree that the Muse-um of the History of the Pol-ish Jews, a part of which willopen for the anniversary ofthe Uprising, is a lasting testi-mony and material proof ofour common history?Yes, it will be a unique muse-um, just as the history of theJewish community in Poland isunique. Its origins date back900 years. For many centuriesPoland had the biggest Jewishdiaspora in the world. BeforeWorld War II there were 3.5million Jews living in Polandand they contributed to thedevelopment of the country,its culture, intellectual life andalso filled the ranks of the Pol-ish army. Let’s not forget thatsome of the 1,800 officers

murdered in Katyƒ by theSoviets were Jewish.

The museum will not onlytell the story of how the Jewsdied, but also how they lived.It will not be like the Shoahmuseum. While the WarsawGhetto Uprising will be well-documented, the museum inWarsaw will also present otheraspects of the life of Jews inPoland: their customs, reli-gion, intellectual life, all ofwhich contributed to the col-orful fabric of Jewish and Pol-ish history.

We see the creation of sucha museum not only as a greatachievement for Poland butalso as an important contribu-tion to the better understand-ing of the history of Jews andas such, the museum will havean important place on theEuropean and global culturalmap.

How do you see the relationsbetween Poland and Israel?The relations between ourstates are very good. We havecommon values, we pursuedemocratic principles in theinternational arena. We con-sider Poland to be one of ourbest friends in the EuropeanUnion and both our countrieshave close relations with theUnited States.

Israel is not a member of

NATO, but we have a specialsecurity arrangement signedwith it. Israel and Poland alsomaintain military cooperation.While I cannot delve intodetails, I will mention the jointproduction of missiles basedon Israeli technology. We con-ducted joint military exerciseslast year in Israel. We have acommon view on the fight withinternational terrorism and wefeel great appreciation forwhat the Polish forces weredoing in Afghanistan, fightingagainst terrorism.

How do you see the presentdevelopments in the situationin the Middle East and Israelipolicy in the region? The situation in the Middle

East is, of course, very compli-cated. Unfortunately the so-called “Arab Spring” has notled to democracy and thoseevents did not change the hos-tile attitude of Arab countriestowards Israel.

We are hoping for that tochange, but instead we seeinstability in almost all Arabcountries. Such an atmosphereleads to extremism. Where

governments are weak, thepower of extremists and Al-Qaeda is growing.

We think that the regime ofBashar al-Assad in Syriashould come to the end, butwe worry who will replace himand whether Al-Qaeda opera-tives would become part of thenext regime. But Israel cannotand does not want to beinvolved in any internal devel-opments in Arab countries, soin the face of that great insta-bility around us, Israel remainsan island of democracy andresponsible policy.

And in our view it is veryimportant that in the face ofthe current chaotic internaldevelopments in Arab coun-tries, Israel and the West lead

a responsible policy, analyzingthe changing situation in theMiddle East.

During his visit to Israel,President Obama, while con-firming the US-Israeli strate-gic and military partnership,also stressed that Palestiniansshould have their own state.Is there any chance forresuming the dialoguebetween Israeli and Palestin-ian leaders?We agree on the establishmentof the Palestinian state and wethink that it’s the only solutionthat could bring peace. Wewould like to resume talks withPalestinians without any pre-conditions, even on subjectssuch as the status of Jeru-salem. But Palestinians do notagree to it.

As many as 90 percent ofmembers of our parliamentagree that we should renewnegotiations without any pre-conditions. Even the right-wing leaders in Israel thinkthat peace has its price and weare ready to pay the price.

I want to point out that8,400 Jewish settlers wereremoved from Gaza in 2005,which was politically very diffi-cult for us. Those people arestill angry and they still haveno permanent homes. Andwhat did we get in return?Nothing. Hamas still carriesout attacks. Last Novemberthey fired thousands of mis-

siles onto our territory. Fortunately, we have an

anti-missile defense system,otherwise we would have hadtragedy in Israel. As far as theinternational pressure forrenewing talks with Palestini-ans, the only power which cando something is the UnitedStates.

We have the deepestrespect for the EuropeanUnion, but honestly we do notsee the possibility of EU beinga mediator in the Middle East.The EU is helping the Pales-tinian Autonomy economical-ly, otherwise it would not sur-vive, that is all. So the visit ofPresident Obama was good forIsrael, he developed good rap-port with ordinary people andconfirmed the American rolein pursuing peace, which is sovital to us.

Despite the political relationsbetween Poland and Israelbeing good, our tradeexchange is relatively modest.Mutual trade is indeed rela-tively modest, reaching thevalue of $653 million per year,but our economic ties aredeveloping. Polish companiesare starting to invest in Israel,a good example of which isAsseco, Poland’s biggest ITfirm, which now owns twoIsraeli companies. And whileIsrael is a world leader in thisfield of technology, the Polishcompany shows a real zeal to

form partnerships with Israelicompanies, in order to expandfurther on international mar-kets. I’d say that Polish-Israelieconomic cooperation isdeveloping and shows thecapacity for growth on bothsides.

Let me mention the less pleas-ant side of the Polish-Jewishrelations. We know that anti-Semitic incidents occur inPoland. Those events are con-demned by most of Polishsociety and the offenders arepunished, yet they still occur.How you see it?There are some disturbinganti-Semitic incidents inPoland on occasion. Therecent interview with profes-sor Krzysztof Jasiewicz, inwhich he claimed that Jewsthemselves were responsiblefor the Holocaust is one suchexample. It is disgusting. But Ithink that the anti-Semiticposters or slogans exposed instadiums are not important,although maybe governmentservices should be more activethere and punish offenders.

In my opinion, however,the most important in elimi-nating such attitudes is educa-tion. And a lot in that matter isbeing done in Poland, by theCatholic Church, among oth-ers. Its leaders say that anti-Semitism is a sin and PopeJohn Paul II called Jews “theolder brothers of Catholics.”

So I think that in Polandanti-Semitic incidents are mar-ginal, while in France, forinstance, there is a real prob-lem of acts of violence againstJews.

The problem of restitution offormer Jewish property inPoland has not been resolvedyet. These cases, when theyend up in court, take years tobe reviewed. How should it behandled?Well, this is a Polish legalproblem. Of course, there aremany thousands of Israelis, aswell as other people, who havesuch claims and I listen to bothsides. But I would not say thata special law for Jewish claimsshould be passed in Poland.There had been someattempts to do that, but theydidn’t come to fruition.

I know the costs of com-pensation will be high, andmany cases would be legallycomplicated, but a law regulat-ing these matters should bepassed, a law that wouldinclude everybody, not justJews. I hope that Poland willcontinue its dialogue withJewish organizations in orderto find the best solution foreverybody. Justice needs to bedone. ●

CO

UR

TE

SY O

F T

HE

IS

RA

EL

I E

MB

AS

SY I

N W

AR

SA

W

Zvi Rav-Ner, Israeli ambassador to Poland

WBJ sat down with Zvi Rav-Ner, Israel’sambassador to Poland, to talk about the 70thanniversary of the Uprising in the WarsawGhetto, the Museum of the History of the PolishJews in Warsaw, political and economic Polish-Israeli relations, as well as Israel’s role in theMiddle East and its attitude towards talks withthe Palestinians

“We considerPoland to be one

of our best friendsin the European

Union.”

“Polish-Israeli economic cooperationis developing and shows the capacity

for growth on both sides.”

APRIL 22-28, 2013 FFIINNAANNCCEE && EECCOONNOOMMIICCSS www.wbj.pl 9

Interest rates

Policy makers sharply divided on rate cutsOne says wait till July,the other says cut 125basis points fromcurrent levels

Two recent interviews of mem-bers of Poland’s Monetary Pol-icy Council (RPP), the Nation-al Bank of Poland’s interest-rate setting body, showed adeep divide in the councilabout whether or not to cutinterest rates further.

In early April, the council

left its benchmark rateunchanged at 3.25 percent, arecord low. But that came afterfive months of cuts – of 25 basispoints each for four monthsstarting in November and asurprise cut of 50 bp in March– as the economy and inflationslowed.

In an interview withBloomberg, RPP memberAdam Glapiƒski said the coun-cil should wait until June at theearliest before potentially

resuming interest rate cutsbecause it needs to “betterassess” the prospects for eco-nomic recovery.

“The pause before wepotentially move to anothercycle of rate cuts should last atleast a quarter, ideally untilJune or even July,” MrGlapiƒski said. “Interest ratesare already at historic lows andcutting them further would bean unconventional step,” headded.

However, his view is insharp contrast with that ofanother council member,Andrzej Bratkowski. MrBratkowski told Dow JonesNewswires that expectations ofan economic rebound in thesecond half of the year were“wishful thinking,” and thatthe RPP should therefore cutby a further 125 basis points –and should start with a 50bpcut in May.

“If output, employment

and wage data due in the com-ing days do not show signs ofrecovery, then there is no rea-son to wait,” Mr Bratkowskisaid. After his statements weremade, Poland’s statistics officereported that wages had grownin March by 1.6 percent year-on-year – a slower pace thaneconomists had expected.

Mr Bratkowski added thatpostponing rate cuts until thesecond half of the year was nota good idea. “Cutting rates in

the second half of this yearwith a view to a recovery some-time in 2014 would be odd,” hesaid, explaining that decisionsare now “all about the realeconomy,” rather than infla-tion.

Even so, inflation hasslowed significantly in the pastfew months to well below thecentral bank’s target of 2.5 per-cent. In March it fell to 1 per-cent (see accompanying story).

AASS,, AAKK

Poland’s inflation falls to 1% in MarchPoland’s consumer priceindex (CPI) inflation rateslowed in March to 1 percenton an annualized basis, and0.2 percent month-on-month,the Central Statistical Office(GUS) said. The figuresmarked Poland’s slowestprice growth in seven years,and were lower than analysts’expectations. Economists sur-veyed by the Polish PressAgency had expected the fig-ure to come in at 1.1 percenty/y and 0.3 percent m/m.

Prices of food and energyrose the most, by 2 percenty/y, while the prices of hous-

ing-related expenses rose by1.9 percent. Telecommunica-tions prices fell by 7.3 percenty/y, while clothing andfootwear prices fell by 5.2percent.

Economists from BankZachodni WBK said that “thecurrent data [on inflation]should be neutral ... from themonetary policy point ofview.” Other experts say,however, that if inflation con-tinues to slow, it will addpressure on policy makers toresume cutting interest rates.“If it turns out that inflationruns considerably below the

target, or even below 1 per-cent in the medium term –which can be the case – thenroom for further cuts willbecome larger,” said Mone-tary Policy Council MemberAnna Zieliƒska-G∏´bockaafter the figures were report-ed.

BZ WBK economists saidthat inflation will continue todecline in the coming months(down to 0.7 percent) due tothe high base effect from theprevious year. “The situationmay reverse in the secondhalf of the year,” they said.

AASS

0.0

1.1

2.2

3.3

4.4

5.5

Mar. ’13

Feb. ’1

3Jan

. ’13

Dec. ’12

Nov. ’12

Oct. ’12

Sep. ’1

2

Aug. ’1

2Jul.

’12Jun

. ’12

May ’12

Apr. ’1

2Mar.

’12Feb

. ’12

Jan. ’1

2Dec.

’11Nov.

’11Oct.

’11Sep

. ’11

Aug. ’1

1Jul.

’11Jun

. ’11

May ’11

Apr. ’1

1Mar.

’11

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

So

urc

e:

Ce

ntr

al

Sta

tisti

ca

l O

ffic

e

APRIL 22-28, 201310 www.wbj.pl OOPPIINNIIOONN && AANNAALLYYSSIISS

Allan H. Meltzer

On a recent visit to Greece,French President Fran-cois Hollande declared

that Europe’s decline was over, andurged French companies to invest inGreece. Bad advice. French produc-tion costs are high, but Greek costsare higher. Despite the considerabledecline in Greek (and Italian andSpanish) real GDP since 2007,adjustment is far from complete.

In fact, one would be hard-pressed to find broad agreement withMr Hollande’s assessment anywherein Europe. Before the recent Italianelection, financial markets showedsigns of optimism, encouraged by theEuropean Central Bank’s policy ofguaranteeing euro zone members’sovereign debt, expanding its balancesheet, and lowering interest rates.Bondholders gain when interest ratesfall. But unemployment continues torise in the heavily indebted southerncountries, and output continues tolag behind Germany and other north-ern European countries.

Cost differencesThe main reason for the lag is notsimply low demand or large debts.There is a vast difference betweenunit labor costs – real wages adjustedfor productivity – in Germany and in

the heavily indebted southern coun-tries. When the crisis began, produc-tion costs in Greece were about 30percent higher than in Germany, soGreece exported very little andimported very much. Productioncosts in other heavily indebted coun-tries were 20-25 percent higher thanin Germany.

Growth will not resume until pro-duction costs in the indebted coun-tries decline, which requires either asubstantial permanent increase inproductivity, a reduction in realwages, or both. While some adjust-ment has occurred, much of thechange is not permanent. Austerityreduced the number of employedworkers, particularly those with lowskill and productivity levels. But gainsin measured productivity growthfrom this source are not permanentchanges, so a large part of the report-

ed reductions in unit labor costs aretemporary.

Indeed, major cost differencesremain. In Greece, the private sectorhas been forced to adjust, but thegovernment failed to keep its prom-ise to reduce public employment.That will prolong excessive govern-ment spending, and deficit targetswill not be met on a sustained basis.Large reductions in public-sectorwages brought down the primarydeficit, but employment maintenancelowers productivity, raises costs, anddelays adjustment.

In Italy, former Prime MinisterMario Monti’s government under-took some reforms, but it continuedto support unions and corporatemonopolies. And Italy’s parliamentrejected many of Mr Monti’s pro-posed reductions in governmentspending. Labor and many productmarkets remain closed, despite theurgent need to increase competition,lower production costs, and raise pro-ductivity.

After five years of slow growthand rising unemployment, voters inother indebted countries, like Italians(and French voters before them), arelikely to reject additional spendingreductions, tax increases, and furtherpainful deregulation. Europe must

find more effective policies thatreduce production costs toward Ger-man levels.

They knew it was comingThe economic historian HaroldJames has shown in a recent bookthat in the 40 years of negotiationsleading to the adoption of the com-mon currency, all of the problemsthat now beset the euro zone werediscussed repeatedly. Everyoneunderstood that a monetary unionwould require enforceable fiscal andbanking rules. But such rules werenever adopted.

Before the euro, countries adjust-ed misaligned production costs bydevaluing or revaluing their exchangerates. Fiscal austerity is a poor substi-tute. It works slowly, if at all, becauseelected governments are often reluc-tant to implement their promises –and may not feel bound by those ofprevious administrations (especiallyif they owe their victory to voters whoare rebelling against years of belt-tightening with no evidence ofrenewed growth). Likewise, politi-cians are reluctant to adopt deregula-tion that eliminates state-sponsoredspecial privileges.

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

cal rectitude. Let all the heavilyindebted southern European coun-tries jointly agree to join a weak euro,which would float against thestronger northern euro. When theweak euro reduces the heavilyindebted countries’ production costsby 20-25 percent, they can rejoin the“hard” euro if they accept fiscalreforms that are subject to approvalby the European Commission (andthus by the hard-euro creditor coun-tries). After all, a fixed exchange rateor common currency requires limitson fiscal independence.

The Italian election sent a mes-sage. After five years of decline in liv-ing standards, voters oppose moreausterity and further retrenchmentwithout growth. Restoring a soundeuro requires policies that revivegrowth, rein in government spending,and reform heavily regulated laborand product markets. ●

Allan H. Meltzer, professor ofpolitical economy at the Tepper

School, Carnegie Mellon University,and distinguished visiting fellow at the

Hoover Institution, is the author of“Why Capitalism?”

Copyright: Project Syndicate, 2013.Project-syndicate.org

WWhhaatt’’ss ssttooppppiinnggEEuurrooppee??WWhhaatt’’ss ssttooppppiinnggEEuurrooppee??

“A monetary union wouldrequire enforceable fiscaland banking rules. Butsuch rules were never

adopted.”

MANAGING EDITORSJACEK CIESNOWSKI(JCIESNOWSKI@WBJ.PL)

BEATA SOCHA(BSOCHA@WBJ.PL)

POLITICS EDITORREMI ADEKOYA(RADEKOYA@WBJ.PL)

REAL ESTATE EDITORKAROLINA KOWALSKA(KKOWALSKA@WBJ.PL)

REPORTERKAMILA WAJSZCZUKCONTRIBUTORSE. BLAKE BERRYEWA BONIECKADAVID INGHAMALEKSANDRA S¸ABISZALEX ZARGANIS

COLUMNISTSADAM NARCZEWSKIANDREW NAWROCKIINTERNMARTA MARDOSZ

PRODUCTION MANAGERPIOTR WYSKOKGRAPHIC DESIGNER¸UKASZ MAZUREK

MARKETING &SALESAGNIESZKA BREJWO MARKETING &SALES DIRECTOR(ABREJWO@WBJ.PL)

MAGDALENA KARPI¡SKA(MKARPINSKA@WBJ.PL)

AGNIESZKA KUCZY¡SKA(AKUCZYNSKA@WBJ.PL)

EWA BROGOSZ-KORYCKA(EBROGOSZ-KORYCKA@WBJ.PL)

PR & MARKETING MANAGER KATARZYNA MAREK(KMAREK@WBJ.PL)

SUBSCRIPTIONS MANAGERAGNIESZKA MICHALIK(AMICHALIK@VALKEA.COM)

PRINT & DISTRIBUTION COORDINATORKRZYSZTOF WILI¡SKI(DYSTRYBUCJA@VALKEA.COM)

BOOK OF LISTS COORDINATORMONIKA BRYSIAK(MBRYSIAK@VALKEA.COM)

PUBLISHER VALKEA MEDIA SA EDITOR-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.

Prenumerata realizowana przez RUCH S.A: Zamówienia na prenumerat´ w wersji papierowej i na e-wydania mo˝na sk∏adaç bezpoÊrednio na stronie www.prenumerata.ruch.com.plEwentualne pytania prosimy kierowaç na adres e-mail: prenumerata@ruch.com.pl lub kontaktujàc si´ z Telefonicznym Biurem Obs∏ugi Klienta pod numerem: 801 800 803 lub 22 717 59 59 – czynne w godzinach 700 – 1800. Koszt po∏àczenia wg taryfy operatora.

SH

UT

TE

RS

TO

CK

four-course dinner, andawards, there will also be arange of special features tocommemorate this 10thanniversary. Entertainment onthe night will be provided byone of Poland’s biggest singingtalents, Edyta Górniak, as wellas 1980s girl group Bananara-ma, among others.

In terms of the judgingprocess, this year’s jury once

again comprises senior repre-sentatives of market-leadingcompanies who are active inthree or more national mar-kets in the emerging Europearena. Jury places are rotatedeach year among developers,investors, lenders, consultantsand services providers, with sixmajor international agentsoperating across the regionretaining permanent seats onthe jury. These permanentseats are held by: CBRE, Col-liers International, Cushman& Wakefield, DTZ, JonesLang LaSalle, Knight Frankand Savills.

Lifetime achievement As always, one of the keyawards on the night will be theannual Lifetime AchievementAward. This year this presti-gious award is being given toBrian Patterson, managingpartner of AIG/Lincoln. MrPatterson first started exploringbusiness opportunities inPoland in 1992, leading thedevelopments of WarsawDistribution Center (WDC)and Diamond Business Park(DBP), two of the first moderncommercial projects realized inWarsaw after the end of com-munism. In 1997, he became afounding partner of AIG/Lin-coln, a joint venture with Amer-ican International Group andLincoln Property Company,which has successfully devel-oped and managed projects inPoland, Russia, the CzechRepublic, Hungary, Romania,Slovakia, Germany, Italy, Bul-garia and Spain.

Speaking about the honorMr Patterson said, “I verymuch appreciate that myfriends and peers believe that Ideserve this award. I am some-what uncomfortable withreceiving this award as an indi-vidual, as there are so manypeople that have been involvedin creating AIG/Lincoln’s busi-

ness units and its projects overthe years. However, I ampleased to accept this award inthe name of my partners whohave also led the developmentof these projects, includingespecially Lance Bozman inHungary, Walter Dackiw in theCzech Republic, Mirek Szydel-ski in Poland and DariuszDworakowski in Russia.”

Richard Hallward, founderand organiser of CEEQA,added, “I am delighted Brianhas accepted to attend thisyear’s CEEQA Gala to receiveour annual award for LifetimeAchievement in Real Estate.Few people, if any, havematched his dynamism andbrought so much value into themarket place across this sectorand other sectors, over a sus-tained period. We congratulatehim for his past achievements,while recognising that heremains and continues to beone of the most active andrespected leaders of the com-mercial real estate sector inEmerging Europe.”

Prior to the main event, allpast and present CEEQAjurors, sponsors and partnerswill be invited to a pre-galalunch at Signature restaurant,located in luxury residentialhotel H15 in central Warsaw. ●

APRIL 22-28, 2013

As it celebrates its 10-year anniversary,CEEQA continues togo from strength tostrength

A lot has changed over the last10 years. A decade ago Alek-sander KwaÊniewski was thePolish president, Poland wasstill waiting to become a mem-ber of the EU, and the nascentCEE real estate market wasstill in the process of moderniz-ing itself for the demands of the21st century.

This period also saw thebeginnings of the Central andEastern European Real EstateQuality Awards (CEEQA),with the first-ever gala takingplace at the InterContinentalHotel on January 22, 2004, rec-ognizing business achieve-ments in 2003. The region wasthen battling to shake off itscommunist legacy, as despitethe emergence of privatelydeveloped office buildings,shopping centers, logistic cen-ters, residential developmentsand hotels there was still littlein the way of institutional equi-ty and senior debt finance.

The original CEEQA Gala& Industry Awards attractedsome 300 guests, most of whomwere locally based internation-al industry professionals. Atotal of 16 awards for businessperformance and achievementwere given out, including theaward for Lifetime Achieve-ment in Real Estate, whichwent to Eugene Golub,founder and President ofGolub & Co. The FinancialTimes was one of the sponsorsof that first gala, a cooperationwhich is still going strong.

Internationally rewardedNow, 10 years on, CEEQA hasbecome an internationallyrenowned business event bring-ing together owners, CEOs andboard representatives of lead-ing investors, developers, finan-ciers and consultants from 40different nations, who repre-sent business activity acrosseighteen countries throughoutemerging Europe.

The concept for the first-time ever event came aboutdue to lack of high-quality busi-ness events in the region at thetime, a gap in the market thatCEEQA founder Richard

Hallward was quick to seizeupon.

“The aim was always to cre-ate a positive, world-classshowcase for the sector on theinternational stage. … On abrief visit to the region to assiston an event in Prague, it didn’ttake me long to figure outthere was a gap in the marketfor something like this andeverything has been gearedaround making it happen,”said Mr Hallward.

Special anniversaryThe 10th edition of the awardsand accompanying marketinsight forum program willinclude a range of specialanniversary initiatives and ideasto commemorate achievementsin the market during the pastdecade, while looking forwardto the next 10 years.

This year’s black-tieCEEQA Gala will take placeon April 23 in Warsaw’s SOHOFactory. Located in the Pragadistrict, on the capital’s eastbank, it is situated in an areaknown for its creative and artis-tic talent. The venue itself isone of the best examples ofpost-industrial renovation inWarsaw, having previouslyhoused one of the largestmotorcycle factories in Europe.

With some 3,000 sqm of spacespread over the two largestbuildings in the complex, allguests at this year’s functionwill have unprecedented spaceand view of the action.

Speaking about the venue, ashift from the previous galaswhich have mainly been hostedby the capital’s top hotels, MrHallward said, “It gives us theopportunity to take the interna-

tional real estate sector to theheart of an important urbanrenewal story for Warsaw’sfuture, and gives us a lot morespace to work with as well as afantastic post-industrial aes-thetic to play with. It will becloser to our vision of what theCEEQA Gala should be andwill hopefully build on its repu-tation as one of the best busi-ness events in Europe.”

Once again, along with MrHallward, Polish journalist andtelevision presenter MonikaRichardson will host theevening. As well as the tradi-tional champagne reception,

That’s entertainment! A look backat the music and special perform-ances at past CEEQA events 10-11

A life in the business: A specialinterview with last year's LifetimeAcheivement Award Winner 2-3

1100 YYEEAARRSS OOFF CCEEEEQQAAPPRROOMMOOTTIIOONNAALL SSUUPPPPLLEEMMEENNTT

CO

UR

TE

SY O

F C

EE

QA

Monika Richardson and Richard Hallward

CEEQA history & plans

A decade of quality

“The aim was always to create apositive, world-class showcase for the

sector on the international stage.

APRIL 22-28, 20132 www.wbj.pl 1100 YYEEAARRSS OOFF CCEEEEQQAA

Interview

A life in theThe LifetimeAchievement Awardhonors the mostinfluential names inemerging Europe realestate

Each year one individual ischosen by CEEQA to gain aLifetime Achievement Awardfor services to the real estateindustry. Sponsored by theFinancial Times, the award isgiven each year to an inspira-tional industry leader who hasmade a significant and durable

contribution to the real estatebusiness and to the emergingEurope real estate investmentsector and internationally.

In 2012 the winner wasRichard Clare, currently cor-

porate senior vice president atArcadis, who during a 30-yearcareer with EC Harris is cred-ited with building the compa-ny’s project managementcapability from scratch and,as group chairman for 15years, steering it to its currentposition as a global power-house in built-asset consul-tancy. Here he talks about hisexperience, achievements andwinning at last year’s event.

Tell us about your first experi-ence in the CEE real estatemarket?

Richard Clare: We originallyopened our first office inBudapest, Hungary, and as Isaid in my speech at last year’sCEEQA gala, one of ouryoungest partners, a real red-

braces banker type, did bril-liantly well winning contracts,and we essentially built it fromthere. We followed that quitequickly by opening offices inWarsaw and Prague.

How has the region and themarket changed in the timeyou have been doing businesshere? Well, now when you’re produc-ing a real estate product it’s gotto have investment value.Some of the early projects wewere involved in really weren’tup to the mark. In those daysthere was a different mentalityand it took a while for interna-tional standards to arrive andfor companies to realize thatinternational standards wereworth paying for. We’ve beeninvolved with a lot of FDIclients like Nokia, Oracle, Pep-siCo, Anderson Consultingand inward investors like thesecompanies have helped changethe mentality within the CEEmarket.

How did it feel to be recognizedby members of the industrywith a Lifetime AchievementAward at CEEQA 2012?C

OU

RT

ES

Y O

F A

RC

AD

IS

Richard Clare

“The CEEQA awards arenumber-one really,

everyone in the industry turns up.”

APRIL 22-28, 2013 www.wbj.pl 31100 YYEEAARRSS OOFF CCEEEEQQAA

businessVery depressing! The prob-lem is that one might presumeyour working life is over whenyou achieve an award likethis. But in reality it was agreat honor to win. TheCEEQA awards are number-one really, every one in theindustry turns up and it is thequality of the people that areinvolved that makes it such animportant event. If you lookat the past winners of theCEEQA Lifetime Achieve-ment Award, I am proud tobe included among them. Butit’s not just the winners, if youlook at the quality of peoplewho are on the jury it’s reallya privilege to be recognizedby them in this way.

What achievements in yourcareer are you most proud of?The enormous changes I madeto EC Harris. Obviously I didnot make them on my own, Irecruited and managed tokeep some very clever peoplewith great ideas, who helpedimplement them. The last 10years have seen the biggestchanges in the company andmoving into value propositionshelped our clients, and helped

take us much higher up thevalue chain. Secondly, imple-menting broader ownership –we originally had 40 owners,but now we have about 150owners and that’s somethingI’m proud of. The reason forthis decision was that peoplelike to own part of the businessthat they are involved in.

What projects are Arcadisand EC Harris currentlyinvolved in?With EC Harris we are mainlyinvolved in property and realestate. Now with Arcadis we’readditionally involved in envi-ronment, infrastructure andwater. We have prestigiousprojects like the subways inPrague and Warsaw, we’ve alsobeen involved in strategic rail,including the renovation of theWroc∏aw G∏ówny train station,while at the same time we stillmaintain our office clients,such as Google. We’re current-ly involved in the largest retailrollout in Poland, and thenlooking back a bit there’s theStary Browar retail develop-ment in Poznaƒ, which has wonnumerous awards, and when Ifirst saw it I could not believe

how good it looked.

What trends or changes doyou foresee in the CEE realestate market in the next fewyears?Infrastructure has improved

massively and I see thisbeing a big factor in thefuture. The linkage with theBaltic states will be greaterand probably they willbecome a lot more involvedin real estate markets. But I

see the improved infrastruc-ture across the region beingthe main factor that willlead to the involvement ofsmaller cities. Previously themarket has been focused onthe major cities but I defi-

nitely see this changing.We’ll also see many moreinnovative offerings, soprojects will be much morecompetitively aligned toglobal gratuity demand toachieve success. ●

CO

UR

TE

SY O

F C

EE

QA

Richard Clare (far left) receives the CEEQA Lifetime Achievement Award from Richard Hallward

APRIL 22-28, 20134 www.wbj.pl 1100 YYEEAARRSS OOFF CCEEEEQQAA

Future markets

CCrryyssttaall bbaallll ggaazziinnggThis year’sCEEQA@MIPIMevent had industryexperts looking intothe future

For real estate professionals,having a crystal ball enablingthem to see into the futurewould be an invaluable tool toaid business growth. But while

this may be a dream scenario,what CEEQA has been par-ticularly successful in doingover the years is bringingtogether the leading minds inthe real estate industry to pre-dict what the future holds.

This year’s CEEQA@-MIPIM event in Cannes includ-ed two discussion panels: theMoney Panel, which focused onfinance, investment and the

economy; and the DevelopmentPanel, which focused on howthat money is being put to worknow and in the future.

Liquidity issuesLiquidity issues were at theforefront for the first panel,with Martin Erbe, head ofinternational real estatefinance for Northern andCentral Europe at Helaba,

suggesting their would be littleimmediate respite in the con-centration of what liquidity isavailable on the core CEEmarkets.

The panel also discussedthe possibility that banks mayhave misallocated EU capital-ization funds as an investmenttool rather than a liquiditytool. However, speaking afterthe event Mr Erbe said that it

was difficult to definitively saywhether EU funds are beingmisallocated. But, if this isindeed the case, he said theimpact on all markets is thesame, with liquidity missingfor better assignments.

He added that in terms ofthe key concerns for bothsides of the market, forinvestors the question is: WillI get my exit in five years’ time

and if yes, on what terms? Andfor banks, the question is: Isthe sponsor capable fulfillingits business plan?

Mr Erbe concluded that itis now more difficult to makethe right decision, and there-fore more difficult to make aprofit.

Regional outlookOther points touched uponwere the current positions andfuture prospects of the SEEmarkets, as well as Ukraineand “radar” markets such asTurkey, with investors YannisDelikanakis of BluehouseCapital and Tim Norman ofEuropa Capital both talkingup the prospects of the SEEmarkets. This was a viewshared by Mr Erbe, who addedthe caveat that higher yields inthe more “difficult” markets inSEE and elsewhere could notbe an attraction in themselvesif the exit remained unclear.

According to an Aprilreport by real estate advisoryfirm Cushman & Wakefield,investment activity in the keyCentral European markets ofPoland, the Czech Republic,Slovakia, Hungary and Roma-nia was maintained in the firstquarter of 2013 with €958 mil-lion invested, some 6 percentabove the five-year average.And positive investor senti-ment and underlying activitysuggests investment volumesfor the year should matchthose achieved in 2012.

Another advisory firm,CBRE, found that regionally,Warsaw is the leading city inthe CEE and the fifth-mostdesirable city in Europebehind London, Paris, Berlinand Frankfurt.

“Poland is right up therefor a top destination forinvestors. ... The outlook isvery good,” said Mike Atwell,head of CEE capital marketsat CBRE.

Going greenThe Development Panelfocused on issues relating tothe case for green building,sustainability, urban regenera-tion and infrastructure. All ofthe experts that commentedfor this supplement agreedthat green building is going tobe of major importance for thefuture of both the CEE andSEE markets.

“What we see from observ-ing market is a strive forachieving maximum workcomfort. And comfort is nowunderstood differently than itwas five years ago,” saidJeroen van der Toolen, manag-ing director for Central &Eastern Europe at Ghelamco.

“It includes not only spaceeffectiveness, proper parking

APRIL 22-28, 2013 www.wbj.pl 51100 YYEEAARRSS OOFF CCEEEEQQAA

ratios or restaurants in a build-ing. Now it is also about greensolutions, which not onlyenhance cost effectiveness ofthe building but also signifi-cantly influence the wellbeingof future tenants,” he added.

This was a view shared byMr Atwell, who said, “Green,sustainability and environmen-tal issues are going to be arequirement for the major

investors. Having BREEAMcertification is going to be akey requirement for the bigfunds.”

An emerging trends reportpublished by PwC in Marchfound that for developers,banks, and investors, environ-mental concerns are nowintrinsic to their due diligencebecause sustainable propertiesare increasingly commanding

higher rents and values. Thereports says that, “The mostimportant aspect of lendingtoday is how that asset willlook five years down the line.In five years’ time, will I get mymoney back? For that reasonsustainability is very, veryimportant.”

Speaking about thisCEEQA founder RichardHallward added, “It is no

longer just about makinggreener and greener buildings,it’s about making themsmarter and and more life-integrated within which green-ness will be one, though evermore of an automatic and cen-tral, aspect.”

However, Mr Van derToolen cautioned that realbenefits could only beachieved by a genuine drive

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

Urban regenerationAnother key trend highlightedwas the view that regenerationof existing office space willplay a major role, as big citycenter locations continue to bethe most attractive for the newgeneration of talented youngoffice workers.

Hadley Dean of ColliersInternational said, “There’llbe a big push towards re-engi-neering early 1990s officebuildings, making them moreaccessible for modern clients’needs. We’ll see FMCGs insuburban migration backtowards city centers as part ofa fight to retain staff. Genera-tion Y wants to be downtownwhere the bars, restaurantsand entertainment are, so thiswill be a key factor.”

In terms of the retail mar-ket, the integration of lifestyleand work was a central theme,with a greater focus on enter-tainment needed to attractconsumers, particularly giventhe rise of online shopping.

Changing influencesAnother point raised was the

potential of new investorsentering the market, with achange of the guard from thetraditional major players. Theinfluence of Asia investorsand developers, particularlyfrom China and South Korea,is expected to increase, withPwC stating that “Europeneeds to think about how itaccommodates this importantconsumer of retail and resi-dential real estate,” as itsinfluence grows.

The burgeoning BPO sec-tor is also expected to seecontinued growth in the CEEregion, with Poland remain-ing a regional leader,although both Ukraine, interms of specialized IT out-sourcing, and Romania,which has seen significantrecent BPO growth, couldchallenge Poland’s superiori-ty in the future.

But, speaking about thepossibility of smaller citiesin the CEE region seeingincreased development,Ghelmaco’s Jeroen van derToolen said that, in Poland’scase at least, the mainurban centers of Warsaw,Kraków, Wroc∏aw and Poz-naƒ are set to remain themajor markets. ●

CO

UR

TE

SY O

F C

EE

QA

From left to right: John Banka (Colliers International), Arpad Torok (TriGranit Development Corporation),

Jeroen van der Toolen (Ghelamco)

APRIL 22-28, 20136 www.wbj.pl 1100 YYEEAARRSS OOFF CCEEEEQQAA

CEEQA highlights

LLooookkiinngg bbaacckkThe industry’s leadersgive their view of thebest moments from 10years of CEEQA

There have been many high-lights at the nine previousCEEQA Galas, both in termsof the awards given and theentertainment on offer. Butarguably the most dramatic ofthem all was David Mitzner’sspeech following his LifetimeAchievement Award in 2005.Mr Mitzner, founder and

managing director of RidaDevelopment, was born inWarsaw, but after survivingfirst in the city’s Jewish ghet-to, then as a prisoner in aSoviet gulag, he emigrated tothe United States. It tookmore than 40 years before hereturned to Poland on busi-ness. After he was presentedwith the award, he used hisemotional speech to detail thesacrifices and struggle hewent through. Here is anabbreviated version of whathe told the audience thatnight:

Ladies and gentlemen as Istand before you tonight … it ismore than 70 years since Ger-many invaded Poland turningmy life, my family’s life, and theentire Polish nation into a liv-ing nightmare. I realized thenthat unless I provided for myfamily they would surely starveto death.

Eventually my luck ran outand I was captured by theGestapo and taken west … butI was able to escape. However ashort time later I was then cap-tured by the Soviet borderguards. I was accused of anti-Soviet activities and sentencedto eight years in a Siberiangulag.

After serving the full eightyears, I arrived in the UnitedStates in April 1949. I spoke noEnglish, I brought all mybelongings in a single suitcase.Money? I had $17, whichquickly dwindled to $7 after Itook a taxi to my uncle’s house.

So, how does one go from$7 to purchasing 28 malls? …In 1949 I had no track recordand yet I had the confidence tobelieve that I would succeedand I took risks … and I stuckto my guns, even as everybodywas telling me that it was riskyto invest in Poland. But youdon’t make money unlessyou’re willing to take risks. Andthose people did not under-stand that Poland is in myheart and I wanted to go toPoland. I believed in Poland,the country of my birth.

Touching momentSpeaking about his own per-sonal highlight, long-termCEEQA jury member andmanaging partner for EasternEurope at Colliers Interna-tional, Hadley Dean, alsomentioned Mr Mitzner, butnot his 2005 speech – rather,when he had taken the role asprize-giver for Eli Alroy’sLifetime Achievement Awardin 2010.“David’s speech handing overto Eli Alroy, it was a comedybut at the same time a verytouching moment, those twodid more to shape Warsaw’sskyline than anyone else,” hesaid.

Mr Alroy himself said of

CO

UR

TE

SY O

F C

EE

QA

Brian Patterson at the first CEEQA Gala David Mitzner gives his rousing speech in 2005

CO

UR

TE

SY O

F C

EE

QA

APRIL 22-28, 2013 www.wbj.pl 71100 YYEEAARRSS OOFF CCEEEEQQAA

the award, “Getting regionalrecognition after 16 years ofwork in the region, by themost respected organizer ofreal estate events in the CEE,was beyond my expectations.”

And referring to MrMitzner he added, “DavidMitzner is one of a kind, agiant in the field of realestate, the introduction he didfor me was the unforgettablemoment of the event. Only he

could make the crowd standon its feet for so long.”

Another moment that willlive long in the memory wasKing Sturge’s 2011 victory inthe Office Agency category.The firm’s then head of ofCentral and Eastern Europe,Jason Sharman, entertainedthose present with an onstagedance after securing a winthat was given added signifi-cance as it came not long

before the company’s aquisi-tion by Jones Lang LaSalle.

Among the other standoutwins was the victory ofAIG/Lincoln’s The Lakesidein Bucharest, which won theOffice Development of theYear award in 2010, after itbecame the first BREEAM-certified office building inRomania, and subsequentlythe first ever green building towin this prestigious award. ●

Why CEEQA?Past winners and jury membersgive their thoughts on whatmakes CEEQA special:

John Duckworth, former managing direc-tor for Central & Eastern Europe andSouth Eastern Europe, Jones Lang LaSalle“CEEQA has been the consistent leaderin terms of real estate awards in CEE dur-ing the last 10 years. It is an inspirationalmark of quality across a wide geographicand cultural region and has helped theregion adhere to greater levels of consis-tency and performance. Additionally,CEEQA is a strong thought leader in theregion, identifying trends, issues andopportunities and helping to stimulatediscussion amongst industry leaders. Thefact that the Financial Times is a partneris testament to this leadership.”

Eugene Golub, founder and chairman ofGolub & Company, 2004 LifetimeAchievement Award winner“The CEEQA awards honors the accom-plishments of the many active real estatecompanies and individual real estate pro-fessionals in the region. The awardsreflect on the creativity and excellencethat is present in the real estate communi-ty and creates a benchmark for everyonein the industry to achieve.”

Carl Panattoni, founder and chairman ofPanattoni Development Company, and2011 Lifetime Achievement Award winner

“Central Europe is its own market withits own drivers and nuances. CEEQAaffords the opportunity to talk to every-one that is in the flow of the CEE realestate business. If I did not live 10,000miles away, I would never miss it. Obvi-ously receiving personal recognitionadds to my personal experience, but justbeing at the event is the main benefitfor us and everyone else.”

Hadley Dean, managing partner forEastern Europe, Colliers International“It is the event. It’s really well-organizedand it’s the only event that gets theentertainment right along with theawards. All the seriously important peo-ple who make the major decisionsattend.”

Eli Alroy, former head of GTC and 2010Lifetime Achievement Award winner“For 10 years the CEEQA event hasdemonstrated who are the most activeand recognized players in each sector.Its a great place for networking, feelingthe trends and connecting the dots.”

Daniel Harris, managing director ofinvestments at Tristan Capital Partners“CEEQA are not only the most respect-ed awards in the CEE property indus-try, but the event is also an opportunityto enjoy an entertaining evening withcolleagues and friends.” ●

CO

UR

TE

SY O

F C

EE

QA

Eli Alroy (left) and David Mitzner (right)

APRIL 22-28, 20138 www.wbj.pl 1100 YYEEAARRSS OOFF CCEEEEQQAA

Award nominees

CCEEEEQQAA 22001133:: RReeaallGGrreeeenn wwiinnnneerrss

Skanska dominatedthe CEEQA RealGreenAwards at MIPIM

MIPIM, the annual interna-tional real estate event at thePalais des Festivals, in Cannes,France, was once again thevenue for this year’s CEEQARealGreen Awards. The event,which takes place every March,saw the launch of the CEEQAGreen Leadership Award andthe first-ever Green Debate

market insight forum whichtook place in 2008, with theaim, both then and now, beingto address the issue of the builtworld’s contribution to green-house gases and furtheringunderstanding of our carbonfootprint.

CEEQA has sought tochampion the business case forgreen building investmentthrough research, consultationand business-leader events suchas the RealGreen Awards,

which recognize companies thathave realized the need forgreen building have begun toincorporate this in to their busi-ness strategy.

In Cannes on March 12,Skanska Development Europedominated this year’s Real-Green Awards, picking up twoof the four prizes on offer onthe night, including Building ofthe Year for Green Towers inWroc∏aw, as well as claiming theoverall Developer of the Yearaward.

Speaking about theseachievements Waldemar Ol-bryk, the president of SkanskaProperty Poland said, “We arevery proud that our long-term,consistent commitment to sus-tainable development hasonce again been acknowl-edged. The RealGreen awardsfurther confirm that we con-

tinue to be successful in set-ting green trends on the Polishmarket, always being one stepahead in our environmentalendeavors.”

“The future of green build-ing is bright. Its merits havebeen recognized by tenants andtheir employees, with investorsincreasingly eager to purchasesuch properties, viewing themas future-proof investments ofhigh value,” he added.

Along with taking home twoawards, Skanska also assistedwith the presentations as spon-sor of the RealGreen Investorof the Year award, which waswon by Union Investment RealEstate. EC Harris took the finalaward for RealGreen ServiceProvider of the Year. ●

For the full shortlist of nominations and awards,

log on to CEEQA.com

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

The shortlist for the mainCEEQA awards, which con-tains 22 categories encompass-ing real estate projects, compa-nies and industry professionalswas also announced at theRealGreen event at MIPIM.Notable trends among the proj-ect candidates saw a significantrise in the number of high-level,green refurb projects as well asa general increase in the greencredentials of new buildingprojects with many achievingLEED Platinum or BREEAMVery Good status.

In fitting with CEEQA’s 10-

year anniversary, there will betwo standout awards on thenight that will look back overthe past decade. They includeBuilding of the Decade, which issponsored by Gardiner &Theobald, and Company of theDecade. Another standoutprize on the night will be theLifetime Achievement Award,which is once again sponsoredby the Financial Times. The win-ners of the CEEQA IndustryAwards will be announced atthe 10th anniversary edition ofthe CEEQA Gala, which take atSOHO Factory, in Warsaw. ●

Building of the DecadeThe shortlist for this award is drawn from past winners ofCEEQA’s overall Building of the Year award for each ofthe past nine editions of CEEQA. This year’s two Build-ing of the Year CEE and Building of the Year SEEawards will also be added to the list before the final judg-ing process takes place.

• Arkadia, Warsaw – Retail• City Gate, Bucharest – Office• Eurovea, Bratislava – Mixed use• Focus Mall, Bydgoszcz – Office• National Stadium, Warsaw – Office• Palladium, Prague – Retail/office• Rondo 1, Warsaw – Office• Silesia City Centre, Katowice – Retail• The Park, Prague – Office

For more, log on to:www.ceeqa.com/2013/building-of-the-decade.html

CO

UR

TE

SY O

F S

KA

NS

KA

Green Towers Wroc∏aw – RealGreen Building of the

Year 2013

2013 CEEQA Industry Awards

APRIL 22-28, 2013 www.wbj.pl 91100 YYEEAARRSS OOFF CCEEEEQQAA

Gardiner & Theobald is one of the world’s leading independent

construction and property consultancies.

Established in Central and Eastern Europe since 1992, delivering

projects for clients across all sectors.

Insight forum

BBaacckk ttoo tthhee ffuuttuurreeA history of CEEQA’sCEE Insight Forum

Since 2004 CEE InsightForums have provided futureknowledge on key issues, andtrends driving forward the realestate market across 18 CEEand SEE markets. By bringingtogether the sector’s top busi-ness leaders, thinkers andindustry experts to debate onspecific areas that are shapingthe flow of money and prod-

ucts in an increasingly diverseand vibrant market, InsightForum has been able to leadmarket opinion on upcomingtrends whilst also predictingpotential future problems andcrisis in the market.

By ensuring that topics arefocused on one specific area,with presentations from keyspeakers being followed by around-table debate, theforums have maximized thepossibility for information

exchange between marketexperts and the leading lightsin the industry. But while thefocus of the forums, which areheld in major cities acrossemerging Europe, has alwaysbeen about predicting andinfluencing future trends, theevents have also presented anunparalleled business net-working opportunity, with par-ticipants and audience mem-bers from the most senior lev-els of the sector both on stage

and in the audience. Looking right back to the

first Insight Forum in 2004,there is a record of predictionsthat have been proven correct.In 2004, the CEE InsightForum correctly called themove on the Baltic marketswith the event “Eye on theBaltics.” In 2005, the run onthe Warsaw residential marketwas pre-empted with “Dream-time Warsaw,” and then inFebruary 2006 there was

advanced warning on the runon land prices in Central andEastern Europe with “SquareDeals.” In October 2007 theInsight Forum made an earlyattempt at understanding thepossible implications of theUS sub-prime crisis for com-mercial real estate investmentin the region.

Tropical StormBut one of the Insight Forum’smajor successes came in Octo-ber 2008 and March 2009 withtwo “Tropical Storm” events inBudapest and Warsaw. Theforums aimed to foresee theimpact of the global economiccrisis on the region’s realestate sector.

The Budapest event waschaired by Mark Rea of Gar-diner & Theobald, withRegional IMF headChristoph Rosenberg theevent’s keynote speaker.“Cash is king” and “qualityrides high” were the twinmessages emerging from theforum, with Mr Rosenberggiving warning of a significantpull against continued growth

in the CEE economies whilesuggesting that the crisiswould “put the emergingEuropean economies to thetest” and further exposecountries with high levels ofborrowing and foreign directinvestment. He also correctlystated that countries likePoland, with more domesti-cally driven economies, werelikely to experience a softerlanding than neighboringnations like Hungary and theCzech Republic.

In 2010 the “Buying Sig-nals” event in Zagreb, focusedon the Southeastern Europeanmarkets, and attracted a widerange of investors from acrossthe region. Next, 2011 and2012 saw the focus shift to thecase for green building, culmi-nating in the RealGreen Sym-posium & Fair.

At MIPIM 2013 “Back tothe Future – The next 10years for the CEE & SEEproperty markets” saw theviews of two panels aired onfuture market conditions,prospects and opportunitiesin the market. ●

CO

UR

TE

SY O

F C

EE

QA

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

A successful track record• “Eye on the Baltics” – called the move on the Baltic

markets

• “Dreamtime Warsaw” – pre-empted the run on the

Warsaw residential market

• “Tropical Storm” – successfully predicted the

impact of the global economic crisis

• “RealGreen Symposium” – put forward the case for

green building

APRIL 22-28, 201310 www.wbj.pl 1100 YYEEAARRSS OOFF CCEEEEQQAA

Music

TThhaatt’’ss eenntteerrttaaiinnmmeennttCEEQA has hostedsome top-notch actsin previous years,and the best is yet tocome

CEEQA is not just aboutindustry recognition – overthe years it’s been famed forsome great live entertain-ment, offering real estate pro-fessionals the opportunity tocelebrate their achievementswhile letting their hair down.

Hadley Dean, managingpartner for Eastern Europeat Colliers International anda CEEQA jury member, con-firmed this, saying, “It’s theonly real estate event thatgets the entertainment rightalong with the awards.”

A mixture of new Polishand international talent andsome blasts from the pasthave been the order of theday over the years, with1970s disco legends Boney-M, who appeared at the 2007gala and Sister Sledge in2008, among the classic per-formers to have entertainedrevelers.

Arguably the standoutperformances were by leg-

endary 1970s Philadelphiaband Sister Sledge back in2008 and when 1980s chart-toppers Bananarama wowedthe crowd in 2009 at War-saw’s Hilton Hotel. Thegroup, who scored their firsthit in 1982, hold the recordas the most-charting girlgroup in the history of pop,with songs such as “Venus”and “Cruel Summer” amongtheir many worldwide hits.Gloria Gaynor, known as“The Queen of Disco” was

also a major high point at lastyear’s CEEQA@MIPIMevent, belting out unforget-table songs from her reper-toire including the classic “IWill Survive.”

One less well-knownentertainer who also deservesa special mention is CEEQAlegend Albert Kurowski, apianist who has played atevery CEEQA Gala since theevent first began. Albert hasserenaded CEEQA guestswith classical and pop songs,

as well as playing along toclub anthems, to entertain allattendees over the past 10years. And once again he’ll beon hand at this year’s event toshowcase his talent as a ver-satile and entertaining pianoplayer.

Speaking about the pastperformers to have enter-tained the cream of the CEE’sreal estate professionals,CEEQA founder RichardHallward said, “We have a lotof favorites. Gloria Gaynor

was a bit special at last year’sCEEQA@MIPIM reception.At the Gala, I think Bana-narama and Sister Sledgewere probably the most mem-orable. A lot of people likedAudiofeels a few years ago.The Errol Linton blues jam inthe champagne reception twoyears ago was a personalfavorite, while Tara McDon-ald and Klaudia Kulovic werealso great three years ago.Wet Fingers last year was arisky call as they’re more ‘club

land’ than ‘corporate land’but they did a spectacularshow with Nick Sinckler andEwa Jach and this was thefirst time we really got thecrowd dancing till dawn.”

Classic lineupThis year, in line withCEEQA’s 10th-anniversarytheme, the entertainmentwill look back at some of thepast favorites. Bananaramaand dance-duo Wet Fingersare back by popular demand,

CO

UR

TE

SY O

F C

EE

QA

Gloria Gaynor wows the crowd at last year’s CEEQA@MIPIM event

CO

UR

TE

SY O

F C

EE

QA

Edyta Górniak will perform this year

APRIL 22-28, 2013 www.wbj.pl 111100 YYEEAARRSS OOFF CCEEEEQQAA

201303XXXX_Immo_WarsawBusinessJournal_QA_CEE_253x170_Pfad_39L.indd 1 26.03.13 15:11

while Poland’s biggest enter-tainment star, Edyta Górni-ak, will take to the stage toperform hits from her backcatalog. Ms Górniak firstfound widespread fame backin 1994 when she wasPoland’s first Eurovisionentrant, coming in a veryrespectable second behindthat year’s Irish winners. In2012 she released her sixthstudio album, “My,” whichsaw her return to the top ofher game following sometime away from the lime-light.

Another performer tak-ing to the stage at this year’sgala is Bryson Andres, whois being flown in from thePhilippines, where he is cur-rently performing a seasonat Resorts World Manilla.Performing a unique style of

electric loop-station dub vio-lin, Mr Andres has achievedinternational recognition forhis talent and individual per-formance technique that iscertain to win him new fansat this Warsaw event.

All for a good causeBut although the CEEQAGala is about industry recog-nition and entertainment, it’salso about helping worthycauses, with CEEQA havingraised more than €200,000for charities over the past 10years. The Bátor TáborFoundation is the officialcharity partner of theCEEQA Gala for the thirdyear in succession in 2013.The charity organizes thera-peutic and empowering campsessions for children diag-nosed with cancer or other

serious diseases in an uplift-ing and professionally serv-iced environment, and servesseriously sick children acrossCentral Europe.

During the past two years,through a range of fundrais-ing and entertainment activi-ties organized by BátorTábor, the charity andCEEQA have raised nearly€20,000 towards importantprojects improving the foun-dation’s facilities and servic-es. This year’s fundraisingtarget is to kick-start the revi-talization of the camp lake,which is located 60 km northof Budapest, in town calledHatvan. ●

For more information onBátor Tábor see the

organization’s website, at batortabor.hu

CO

UR

TE

SY O

F C

EE

QA

Bananarama will be back for this year’s gala

APRIL 22-28, 201312 www.wbj.pl 1100 YYEEAARRSS OOFF CCEEEEQQAA

CEEQA@MIPIM

CCEEEEQQAA ddrraawwss aatttteennttiioonn aatt MMIIPPIIMMThis year’s RealGreenAwards, paneldiscussions, andCEEQA shortlistannouncements tookplace at the CEEQAreception in Cannes

Many of the the CEE andSEE’s leading real estate pro-fessionals were in attendanceat the RealGreen Awardsreception on the first day ofthe MIPIM internationalproperty event which tookplace between the March 11-14 in Cannes. Building on theawards’ growing profile on theinternational stage, CEEQArepresentatives alsoannounced the full shortlist forthe 2013 CEEQA awards.

The elegant reception,which was attended by morethan 200 guests, once againincluded some top-drawer liveentertainment, with Britishblues artist Errol Linton pro-viding the music this timearound.

The evening program waspreceded by a full afternoonspecial edition market insightforum event, “MIPIM Back tothe Future >> The next tenyears for the CEE and SEE

property markets.” Commem-orating the 10th anniversary ofthe CEEQA and CEE InsightForum, a series of high-profilepanels presented the viewsand ideas of some of the sec-tor’s leading industry figures,analyzing current challengesand achievements while look-ing forward to future markettrends in the context of widerbusiness, political and eco-nomic dynamics.

Eye-catchingBoth the awards and the recep-tion drew significant attention,as did the numerous standsfrom CEE and SEE countrieswhich caught the eyes of majorinternational investors at thisyear’s event. As one of the fewEuropean countries relativelyunscathed by the recession,Poland was, as expected, farmore visible in the Palais deFestivals this year than formerEuropean real estate “giants,”such as Spain and Italy.

Warsaw in particular man-aged to draw the crowds, witha memorable green and whitestand which was decoratedwith artificial moss in line withthe city’s theme: the UN Cli-mate Change Conference tobe held there in November.

One of the Polish capital’smajor potential developmentswas on display, a 5,837-sqmplot on Plac Defilad in front ofWarsaw’s Palace of Cultureand Science, priced at z∏.70

million. Poland was also represent-

ed by great investment areas inKraków, Katowice, ¸ódê, Poz-naƒ and Gdaƒsk, and MIPIMfirst-timers, among which were

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

The representatives ofemerging Asian markets werealso trying to catch Europeaninvestors’ eyes. Reed MIDEM,

organizer of MIPIM andMIPIM Asia, announced plansto develop MIPIM Asia inHong Kong in 2013 and tolaunch a new event, MIPIMChina, in Shanghai in 2014. ●

SH

UT

TE

RS

TO

CK

Warsaw’s Plac Defilad plot was one of the most important Polish development opportunities on offer at MIPIM

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 APRIL 22-28, 2013, LI 18/15

EmiTel leases

at Mokotów

Nova

Telecommunication

company EmiTel has

leased 1,130 sqm in

Mokotów Nova. The

complex is located on

Warsaw’s ul. Wo∏oska

and is one of the largest

office developments in

that part of the city, with

a total of 40,000 sqm of

class-A office space. It

comprises three

buildings ranging from

seven to 12 storeys.

Mango leases

in Poznaƒ City

CenterMango has leased 500

sqm in Poznaƒ City

Center, with TriGranit as

the leasing agent. The

store will be located on

the first floor of the mall.

Poznaƒ City Center will

be the Spanish-based

clothing company’s third

store in Poznaƒ and one

of its 2,500 stores

globally.

Greiffenberger

in Wikana

Biznes ParkGermany-based ABM

Greiffenberger, a

manufacturer of electric

motors and gearboxes,

will open a new plant in

Lublin. The company has

signed a lease

agreement for

production, warehouse

and office space in

Wikana Biznes Park. The

plant in Lublin is

scheduled to open at the

end of 2013. ●

Galeria Młociny . . . . . . . . . . . . .11

Norblin towers . . . . . . . . . . . . . .11

Plac Defilad . . . . . . . . . . . . . . . . .12

Kielce's new mall . . . . . . . . . . . .12

Louis Vuitton in Warsaw . . . . .13

Wola top residential district . .13

CBRE office market report . . .13

In this issue

1212

A hard sellCity Hall wants to put Plac Defiladup for sale despite confusion surrounding its legal status

Round tripRetail Provider will build a 16,000-sqmdome-shaped shopping mall com-bined with a coach station in Kielce

Office

IImmppeexxmmeettaall’’ss sskkyyssccrraappeerrss ggeett ggoo--aahheeaaddAfter years of waiting,the firm will build itstwo 102-meter towersin the capital’s Woladistrict

Impexmetal, a WSE-listednon-ferrous metals tradingcompany, was granted thefinal construction permit lastweek for a high-rise complexthat will replace the compa-ny’s existing office buildingin Warsaw’s Wola district.

Impexmetal’s plan, whichcalls for the delivery of abuilding complex including alower five-storey structuredesignated for retail activityand two 102-meter towersconnected at the base andcomprising office, hotel and

residential space, wasplanned several years ago, ata time when the propertyboom justified such ambi-tious and potentially highlyprofitable schemes.

However another inves-tor, Art Norblin, a companywhich is developing its ownreal estate investment on aneighboring plot, filed aprotest against the scheme,stating it would block sun-light to its low-rise office-retail complex on the plot ofthe former Norblin factory.Impexmetal’s project was puton hold in 2009 pending afinal court ruling in the case.

It wasn’t until the admin-istrative court had dismissedthe protests from Art Nor-blin that Warsaw City Hall

granted Impexmetal an ini-tial construction permit. Butby then the situation in themarket had changed drasti-cally and the company decid-ed to wait.

Now Impexmetal is plan-ning to go ahead with con-struction, but hasn’t unveiledthe exact date it will start.Two Impexmetal towers willovershadow not only the ArtNorblin project but also thegigantic 30-storey residential¸ucka City building, erectednine years ago by JW Con-struction. Two years ago thebuilding, which many resi-dents had criticized as beingugly, was partially covered bythe Prosta Tower officescheme.

KKaarroolliinnaa KKoowwaallsskkaa

CO

UR

TE

SY O

F I

MP

EX

ME

TA

L

No start date has been announced for the construction of

the complex

Major projects

Huge commercial and officedevelopment set for northern WarsawA huge commercialcenter and a businessdistrict will bedeveloped in M∏ociny,in the capital’sBielany district

A mall the size of Warsaw’swell-known Galeria Moko-tów shopping center and alarge business district compa-rable in area to the S∏u˝ewiecPrzemys∏owy office quarterare planned in the neighbor-hood of M∏ociny, in thenorthernmost part of War-saw’s Bielany district. Thescheme will be developed ona 91-ha plot owned by devel-oper Coimpex in the vicinityof the M∏ociny subway sta-tion and international steelproducer ArcelorMittal’sWarsaw mill.

The mall will take up a 5-ha plot bordered by ul.Kasprowicza, ul. Zgrupowa-nia AK Kampinos and the

Most Pó∏nocny thorough-fare. It will comprise 67,000sqm on five floors and athree-storey undergroundgarage with 2,000 parkingspaces.

Designed by the APAKury∏owicz & Associatesarchitectural studio, it willfeature a roof garden and alight, glass-layered facade.Apart from an anchor hyper-market, it will host a movietheater, a food court andnumerous retail stores.

The office complex isplanned to be built after thecompletion of the mall, with-in the next five to 10 years. Itwill take up the land separat-ing the steelworks from resi-dential estates in the Bielanydistrict.

Originally, Coimpex hadplanned to develop a resi-dential estate on the plot,but city officials decided thatthere was too much pollutionin the area to allow it.

Instead, they decided toallow only the constructionof office buildings there.

The city’s plan allows for

the development of 200,000sqm of offices. Coimpex, acompany owned by develop-er Pirelli and investment

fund Grove, has not revealedthe launch date for construc-tion of the mall.

KKaarroolliinnaa KKoowwaallsskkaa

To subscribe: e-mail subscribe@wbj.pl or call +48 22 639 85 68, ext. 201 and sign up for free two-week no-obligation trial subscription

Warsaw Business Journal presents Real Estate weekly newsletter

• Know about the newest projects before they’re on the market• Keep up to date on the latest tenders and auctions• Learn the latest trends in Poland’s dynamic office, residential and retail sectors • Find out who’s who in Polish real estate

or

CO

UR

TE

SY O

F C

OIM

PE

X

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

Retail Provider willbuild a modern retailcenter in Kielce’slandmark bus station

Polska Komunikacja Samo-chodowa 2 (PKS 2), a sub-sidiary of the developer RetailProvider, plans to build a trans-port hub with retail space at thesite of the main bus station inKielce, in south-central Poland.At the end of March PKS 2 wonthe tender for the PKS Kielcecoach company, with its 30buses, the name and the station.The transaction is set to becompleted at the end of April.

The development, estimat-ed at some z∏.100 million, willcombine a shopping mall with amodern bus station. The plan isto construct a modern shoppingmall comprising 16,000 sqm ofgross leasable area.

The scheme will be based onthe existing bus station, built in1975. It is a round structurewith a dome-shaped roof, sur-rounded by bus terminals. Theinvestor wants to preserve theoriginal facade of Kielce’s land-mark structure, adjusting thefacility to the needs of moderntransportation, with a parking

lot located underground.According to Ewa Zurman,

a PKS 2 representative, thescheme compliments the cityand preserves the view of thespires of the nearby Church ofthe Holy Cross.

Combining the retail centerwith the city’s transit system willmake the former more accessi-ble for residents of the region.The mall will also cater fortourists who visit the city andincrease local employmentopportunities.

Retail Provider is carryingout a similar project in Olsztyn,the capital of the Warmiƒsko-Mazurskie voivodship, where itis planning to develop an invest-ment called Nowy DworzecOlsztyn – a shopping mall with45,000 sqm of leasable spacethat would be integrated withmodern railway and coach sta-tions. The construction of thescheme, estimated at approxi-mately €115 million, is sched-uled to be launched in Q3 2013.

KKaarroolliinnaa KKoowwaallsskkaa

APRIL 22-28, 2013LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE12 www.wbj.pl

CO

UR

TE

SY O

F R

ETA

IL P

RO

VID

ER

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

Warsaw Business Journal PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week for 12 months.

Choose one option by checking the box

OPTION 1

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

Warsaw Business Journal print edition delivered each week to your address for 12 months, plus WBJ PDF version and a link to view WBJ in e-zine format delivered to your e-mail address each week. Also receive Investing in Poland 2012 (zł.78 value) and Book of Lists 2012 (zł.100 value).

CLIENT DETAILS

Name......................................................................................................................Company......................................................................................................................Address......................................................................................................................Postal code......................................................................................................................City......................................................................................................................Country......................................................................................................................Telephone/Fax......................................................................................................................e-mail......................................................................................................................NIP (Poland)/EU VAT number (EU countries)......................................................................................................................

Please fax this form to: +48 22 639 85 69 or mail it to our office: Subscriptions Warsaw Business Journal Valkea Media S.A. ul. Elblàska 15/17, 01-747 Warsaw, Poland

PAYMENT OPTIONS (please check one)

❏ Pre-payment by bank transfer upon receipt of a pro-forma invoice. The pro-forma invoice will be sent to you immediately upon receipt of your order. Your subscription will start within one week of payment.

❏ Credit card: ❏ American Express ❏ Visa ❏ Mastercard

Cardholder name

......................................................................................................................Number

......................................................................................................................

CVV2/CVC2/CID Expiration date

....................................................... ............................................................

Signature

......................................................................................................................

SUBSCRIBE FOR 1 YEAR AND SAVE UP TO 50% OFF THE COVER PRICE

Wafor

ENQUIRIESAMICHALIK@VALKEA.COM, OR CALL +48 (22) 678-9912

Everywhere: zł.424

In Poland: zł.550 In Europe: €297 Outside Europe: €374

In Poland: zł.691 In Europe: €330 Outside Europe: €407

WBJ IS NOW AVAILABLE IN DIGITAL FORMAT.READ WBJ AS A PDF OR E-ZINE.

❏

OPTION 2❏ WBJ Print

OPTION 3❏ WBJ PremiumWBJ Electronic

Retail

Huge makeover forKielce bus station

Office

Plac Defilad plot unsellable?The plot the city isplanning to sell thisyear is unattractive todevelopers, due to alack of road access,according to reports

A 5,837-sqm plot in front of thePalace of Culture and Sciencethat Warsaw presented at theMIPIM international realestate fair in Cannes, Francelast month, could be impossibleto develop, newspaper GazetaWyborcza reported last week.The newspaper claims that theland, priced at z∏.70 million, hasno access roads and thereforecan’t be built on.

The plot, located at theintersection of ul. Marsza∏-kowska and ul. Z∏ota, near thenorthern exit of the MetroCentrum subway station, isdesignated for office, retailand cultural space. The zoningplan allows for the construc-tion of a building comprisingup to five storeys. “We expectthis plot to be sold this year,”said Hanna Gronkiewicz-Waltz, mayor of Warsaw, in aninterview with Lokale Immo-bilia earlier this year, sayingthat the area is not burdenedwith any claims from formertenants and it is fully owned bythe city.

Obstacles pile upBut independent experts quot-ed by Gazeta Wyborcza pointout that the plot has no accessto public roads. There is sim-ply no access for trucks,experts explain.

The land’s attractivenessmay be further diminished byelements of the subway infra-structure, such as ventilationshafts located on the plot.

However, Ms Gronkiewicz-Waltz denied these claims, say-ing in an e-mail to LokaleImmobilia, “The local zoningplan for the area near thePalace of Culture and Sciencecontains a direct access road,”and that the potential buyerwould “get detailed informa-tion on the conditions of the

city’s agreement with the sub-way operator.” She alsoassured that the City Hall was“doing everything to find abuyer for the area.”

Real estate analysts citedby the newspaper valued theplot at some z∏.40-50 million,and that is assuming no com-plications with the subwayoperator. Finding a buyer istherefore unlikely, they said.The only investor that couldsuccessfully develop the plotwould be City Hall itself, theexperts concluded.

However, they estimatedthe cost of developing the plotat some z∏.1 billion, a sum thatthe City Hall simply does nothave at its disposal.

KKaarroolliinnaa KKoowwaallsskkaa

CO

UR

TE

SY O

F W

IKIM

ED

IA C

OM

MO

NS

Some experts claim that Plac Defilad will be

impossible to develop

The district hassurpassed Bia∏o∏´kafor the number ofnew residential units

At the end of 2012 therewere some 19,500 newlycompleted apartments forsale in Warsaw, with over2,600 of these located in 40investments in Wola, accord-ing to calculations from realestate agency Emmerson.That made the district thetop location for new residen-tial units in the city.

The trend has continuedinto this year as well. In thefirst quarter of 2013, therewere a number of new resi-dential projects that weredelivered to the market, suchas Yareal’s scheme on ul.Brylowska, LC Corp’s on ul.Sowiƒskiego, the secondstage of Pro Urba’s 19. Dziel-nica estate, and the secondphase of Okam’s InCityinvestment on ul. Karolkowa.

Development projects areprimarily located along ul.Wolska and ul. Kasprzaka,the main thoroughfares inthe Wola district, as well asnear ul. Jana Kazimierza,where “the offer grew the

most in the past year,” saidJaros∏aw Skoczeƒ fromEmmerson.

“At the end of last yearthere were over 1,100 apart-ments offered by developershere. This is by far the mostrapidly developing area inWola,” Mr Skoczeƒ added.

Until recently Bia∏o∏´ka,in the northeastern part ofWarsaw, was the top residen-tial location, particularly foryoung couples with childrenlooking for relatively inex-pensive dwellings. Butdespite the low prices forhousing in the area, it hassome significant downsides,such as long commute timesand limited access to servic-es. An insufficient number ofplaces in schools has alsobecome an issue.

Wola, on the other hand,doesn’t suffer from these dis-advantages. Relatively cheappostindustrial plots locatednear the city center, a sub-way line that is currentlyunder construction, well-developed roads and freespots in schools mean Wola’sresidential projects are sell-ing well and attracting moreinvestors.

Big plansThere are some large devel-opments currently planned.Approximately 1,500 newapartments will be built on aplot between ul. Jana Kazi-mierza and ul. Ordona. Theplot belongs to WaryƒskiHolding Group, which isplanning to build on the landwith developers Dantex andPolnord. Construction workis likely to begin in late 2013and early 2014 and is due tobe completed within six to

eight years.Another major invest-

ment in Wola where the saleof units will soon begin is JWConstruction’s estate at theintersection of ul. Kasprzakaand ul. Prymasa Tysiàclecia.There, 3,000 dwellings aredue to be built, along with alarge shopping mall. The saleof the first stage of the devel-opment, comprising 153apartments, is to commencewithin the next few months.

MMaarrttaa MMaarrddoosszz

APRIL 22-28, 2013 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 13

Office

EExxppeerrttss aaddvviissee tteennaannttss ttoo rreenneeggoottiiaatteeChanging marketconditions arestrengthening theposition of tenants

Office tenants feeling thesqueeze of the economic slow-down should look to renegoti-ate their lease agreements,CBRE experts advise in a newreport.

In the face of rising vacancyrates and supply, as well asgrowing demand for cheaperoffice parks and locations onthe peripheries of Warsaw’s

central district, tenants whodecide to renegotiate leasecontracts on office space locat-ed centrally have a relativelystrong bargaining position anda chance to secure favorableconditions, the report finds.

Renegotiations were a sig-nificant portion of the totaloffice space leased over thepast three years in Warsaw.Total office leasing volume in2012 in Warsaw amounted to608,500 sqm, 28 percent ofwhich comprised renegotia-tions (132 agreements or over

170,000 sqm).“A lease contract is an

agreement which secures theinterests of both parties anddoes not entail altering its pro-visions,” Daniel Bienias, direc-tor of tenant representation inthe office department atCBRE in Poland said.

“This means that rent mustbe paid even if the tenant isgoing through a difficult finan-cial stretch. … [I]f the landlordcan be convinced that the ten-ant’s difficulties are tempo-rary, the company’s funda-

mentals are sound and itsprospects are good, significantsavings can be made,” MrBienias added.

The report says that whenlease contracts are extended,tenants have the opportunityto negotiate additional bene-fits such as a temporary rentholiday or an extra allowanceto renovate office space, whichcan then be used to create anarea for a sub-let. It is alwaysworth discussing indexationand running costs, the firmsays. KKaarroolliinnaa KKoowwaallsskkaa

Residential

Warsaw’s Wola becomestop residential district

Retail

LLuuxxuurryy ccoommiinngg ttoo ttoowwnnThe first LouisVuitton Boutique isfinally set to open inWarsaw

A huge monogrammed LouisVuitton suitcase has coveredthe facade of the DH Vitkacshopping mall in Warsaw’sdowntown. The 8.5-meter by13.5-meter installationannounces the arrival of theluxury French fashion house tothe Polish capital. The Warsaw

store’s grand opening is sched-uled for June. The impressivevintage suitcase installationtraditionally marks the arrivalof Louis Vuitton in citiesaround in the world.

The opening of the LouisVuitton store, offering one ofthe world’s best-known luxu-ry brands, is expected toattract other expensive goodsretailers to the Polish capital.The launch of the brand onthe Polish market is seen as

part of a general growthtrend in the popularity of pre-mium brands in the country.

The Louis Vuitton bou-tique will take up some 270sqm on two floors of DHVitkac, located in the WolfBracka building on ul. Brackain Warsaw. The mall alreadyhouses fashion boutiquessuch as Gucci, Yves SaintLaurent, Lanvin and GiorgioArmani, as well as restau-rants and a delicatessen.

In the years 2005-2010,the Polish market for luxuryconsumer goods rose by 50percent in real terms.According to advisory firmKPMG, around 606,000Poles can be described as“wealthy,” meaning theyearn more than z∏.15,500 amonth. The number ofwealthy Polish citizens hasnearly tripled in the past 10years.

KKEEKK

CO

UR

TE

SY O

F Y

AR

EA

L

Brylowska 2 will deliver 74 apartments in Warsaw’s Wola

APRIL 22-28, 2013TTHHEE LLIISSTT14 www.wbj.pl

Construction & Real Estate

Commercial Real Estate AgentsRanked by total commercial property leased in 2012 www.bookoflists.pl

A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce

Rank

Company nameAddressTel./FaxE-mailWebsite

Commercial (officeand retail) (sqm)

Office (sqm) Retail (sqm) Services offered

Number of agents /Total number of

employees /Year founded in

Poland

Number of offices in Poland /Locations

Ownership: Polish /Foreign

Top local executive /Title

1

CBRE Sp. z o.o.Rondo ONZ 1, 00-124 Warsaw22 544-8000/22 544-8001cbrewarsaw@cbre.comwww.cbre.pl

255,000126,77070,000187,000

230,00081,77045,000137,000

25,00045,00025,00050,000

Commercial real estate market research; strategicadvice and mediation in renting office, commercial,

industrial, logistics space; investment advisory;management of real estate portfolios; project and

cost management; property valuation; financialservices for client's real estate; property management

473302006

3Warsaw; Gdaƒsk

NoneWND

Colin WaddellManaging Director

2

Jones Lang LaSalle Sp. z o.o.ul. Królewska 16, 00-103 Warsaw22 318-0000/22 318-0099warsaw.office@eu.jll.comwww.joneslanglasalle.pl

246,819231,278

WNDWND

200,000193,000

WNDWND

46,81938,278WNDWND

Investment advice; real estate valuation; mediation incommercial real estate rental; project management

93451994

3Warsaw; Gdaƒsk; Kraków

NoneWND

Tomasz Trzós∏oManaging Director

3

Cushman & Wakefield Polska Sp. z o.o.Pl. Pi∏sudskiego 1, 00-078 Warsaw22 820-2020/22 820-2021info.poland@eur.cushwake.comwww.cushmanwakefield.com

198,000212,000278,000245,800

123,000110,000106,500110,000

75,000102,000171,500135,800

Property management; financial and investmentadvisory; real estate valuation; market research;

network clients service

291251991

2Warsaw; Kraków

WNDRichard Petersen

Managing Partner

4

Colliers International Poland Sp. z o.o.Pl. Pi∏sudskiego 3, 00-078 Warsaw22 331-7800/22 331-7801warsaw@colliers.comwww.colliers.com

145,525WND

107,30055,500

96,100WND

85,00043,000

49,425WND

22,30012,500

Investment advisory; real estate valuation andmanagement; construction projects management;

asset management; market research; greencertification

552001997

5Warsaw; Kraków; Wroc∏aw;

Poznaƒ; Szczecin

WND - 12%Sirti Holdings - 67%; Torsa

Investments - 20%

Monika Rajska-WoliƒskaManaging Partner

5

DTZ Polska Sp. z o.o.ul. Z∏ota 59, 00-120 Warsaw22 222-3000/22 222-3001info@dtz.comwww.dtz.com

110,500WND

61,29568,942

78,000WND

24,18727,837

32,500WND

37,10841,105

Mediation in retail, office, warehouse spaces rental;property management; advice on capital markets;

investment advisory; real estate valuation; investmentand construction advisory

WND3001994

WNDWarsaw

WNDPatrick Delcol

Country Head

6

Knight Frank Sp. z o.o.ul. Mokotowska 49, 00-542 Warsaw22 596-5050/22 596-5051office@pl.knightfrank.comwww.knightfrank.com.pl

77,54176,47561,28020,376

75,69474,16560,87419,145

1,8472,310406

1,232

Financial, developer and investment advice; marketresearch; real estate valuation; commercial real

estate management; mediation in commercial spacerental

151041991

7Katowice; Kraków; Poznaƒ;

Warsaw; Wroc∏aw; ¸ódê; GdaƒskWND

Monika D´bska; JosephBorowski; Katarzyna

BàczyƒskaPresident; Vice President;

Managing Director

7

Kancelaria Brochocki Sp. z o.o., Sp.k.ul. Krakowskie PrzedmieÊcie 14, 00-325 Warsaw22 826-1414/22 828-1545kancelaria@brochocki.plwww.brochocki.pl

44,80046,70049,30057,900

43,50043,30046,80051,400

1,3003,4002,5006,500

Renegotiations of lease contracts; real estatemanagement; tender organization; market analysis;

real estate promotion and PR

1419

1993

2Warsaw; Wroc∏aw

Andrzej Brochocki - 70%;Maciej Pe∏da - 30%

None

Andrzej BrochockiManaging Partner

8

Ober-Haus NieruchomoÊci Sp. z o.o.Al. Jerozolimskie 123A, 02-017 Warsaw22 116-6500/22 116-6530poland@ober-haus.comwww.ober-haus.com

36,60036,30038,00042,650

34,60027,20030,00031,100

12,0009,1008,00011,550

Rental and sale of commercial and residential space;projects sale on primary market; market analysis;

investment advisory; buy-to-let; real estate valuation

WNDWND2000

6Warsaw; Kraków; Poznaƒ; Gdaƒsk;

¸ódê

WNDRealia Group Oy

Jolanta LorantyPresident

9

A&A Marketing Sp. z o.o.ul. Piotrkowska 146, 90-063 ¸ódê42 632-0000/42 636-9474marketing@aia.plwww.nieruchomosci.aia.pl

28,90028,55028,560WND

18,60018,40018,560WND

10,30010,15010,000WND

Own commercial real estate leasing; facilitymanagement; complex lease service; events

organization for tenants; space for GSM antennasleasing

WND20

2004WND WND

Sylwia BorusowskaPresident

10

Wood Lark Group Sp. z o.o., Sp.k.ul. Bednarska 7, 00-310 Warsaw22 625-4040/22 828-0929info@woodlark.plwww.woodlark.pl

24,58019,43519,92011,000

24,58018,38519,52011,000

-1,050400

-

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

88

2006

1Warsaw

Pawe∏ Kucharski - 33.3%;Marcin WaÊ - 33.3%;Monika Krzemiƒska -

33.3%None

Pawe∏ Kucharski; Marcin WaÊBoard Members

11

MAXON NieruchomoÊci Sp. z o.o.ul. Okopowa 58/72, 01-042 Warsaw22 530-6000/22 530-6001maxon@maxon.plwww.maxon.pl

24,30022,38032,40034,900

23,00022,00031,00032,000

1,300380

1,4002,900

WND

6369

1989

1Warsaw

Janusz IrackiNone

Janusz IrackiPresident

12

Nuvalu Polska Sp. z o.o., Sp.k.ul. Prosta 70, 01-209 Warsaw22 465-9966/22 465-9955info@nuvalu.plwww.nuvalu.pl

22,33019,30017,0006,500

20,76018,25015,0006,500

1,5701,0502,000

-

WND

1012

2009

1Warsaw

Bartosz Kozie∏ - 25%;¸ukasz Wasilewski - 25%;Marcin Wasilewski - 25%;Andrzej W∏odarski - 25%

None

WND

13

Avestus Real Estate Sp. z o.o.ul. Nowogrodzka 47A, 00-695 Warsaw22 520-6000/22 520-6001mgolebiewski@avestusrealestate.comwww.avestusrealestate.com

21,0005,150WNDWND

20,0005,000WNDWND

1,000150

WNDWND

WND

WND38

1990WND

NoneAvestus Real Estate -

100%

Mariusz FràckiewiczDirector

14

TUP Property SAul. Zielna 37, 00-108 Warsaw22 250-8838/22 721-3857www.tupproperty.pl

18,75520,05124,71521,152

6,2317,58111,2687,239

12,52412,47013,44713,913

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

28

2006

3Warsaw; Pruszków; Poznaƒ

TUP - 100%None

Robert J. MoritzPresident

15

Vertigo Property Group Sp.c.ul. Kopernika 34, 00-336 Warsaw22 556-4400/22 556-4411kontakt@vertigogroup.plwww.vertigogroup.pl

15,60013,5008,4504,100

14,70013,2008,2004,100

900300250

-

Real estate agency; real estate management

WNDWND2008

1Warsaw

WNDNone

Wojciech Jaros; Tomasz DylaCo-owners

16

Estate Fellows Sp. z o.o., Sp.k.-a.ul. Pankiewicza 3, 00-696 Warsaw22 379-7300/22 379-7301biuro@estatefellows.comwww.estatefellows.com

12,26617,55014,70011,551

7,22414,49014,4009,902

5,0423,060300

1,649

Strategic advice; investment advisory; real estateportfolio management; cost optimization; real estate

management; technical maintenance; servicessuppliers management; budgets and reports; financial

management

WND30

2008

5Warsaw; ¸ódê; Wroc∏aw;

Bydgoszcz; PoznaƒWND

Rafa∏ MateusiakPresident

17

K&G Partners Sp. z o.o.ul. Wiktorska 65/14, 02-587 Warsaw22 331-1222/22 331-1223biuro@kgpartners.plwww.kgpartners.pl

2,5003,9504,2004,000

2,5003,5004,2004,000

-450

--

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

67

1998

1Warsaw

WNDKatarzyna Kwiatkowska

President

18

Atena Sp.c. Biuro Obrotu NieruchomoÊciamiAl. NajÊwi´tszej Marii Panny 31, 42-200 Cz´stochowa34 366-9996/34 365-6281atena@atena.com.pl, www.atena.com.pl

1,4104,0503,850WND

6303,0001,950WND

7801,0501,900WND

Investment analysis; investment advice; acquiring ofreal estate on client's behalf; transaction

management; design of real estate portfolio

WNDWND1992

WNDAneta Krygier - 80%;

Andrzej Olszewski - 20%None

Aneta KrygierOwner

2012 / 2011 / 2010 / 2009

Property leased

Notes: WND = Would Not Disclose. Research for The List was conducted in Febru-ary 2013. Number of employees and ownership structure are as of February 2013.All information pertains to the companies’ activities in Poland. Companies notresponding to our survey are not listed.

To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typo-graphical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Monika Brysiak, ul. Elblàska15/17, 01-747 Warsaw, via fax to +48 22 257-7500, or via e-mail to mbrysiak@valkea.com. Copyright 2013, Valkea Media SA. The List may not be reprinted orreproduced in whole or in part without prior written permission of the publisher. Reprints are available.

APRIL 22-28, 2013 MMAARRKKEETTSS www.wbj.pl 17

SO

UR

CE

: W

SE

PLN-EUR

4.12

00

4.11

25

4.11

78

4.10

97

4.11

50

4.11

18

12.0

4

15.0

4

16.0

4

17.0

4

18.0

4

19.0

44.1

4.2 PLN-USD

12.0

4

15.0

4

16.0

4

17.0

4

18.0

4

19.0

4

3.15

37

3.15

02

3.15

59

3.11

59

3.15

29

3.14

09

3.1

3.3 PLN-GBP

12.0

4

15.0

4

16.0

4

17.0

4

18.0

4

19.0

4

4.84

53

4.82

40

4.82

32

4.76

74

4.80

39

4.82

35

4

5 PLN-CHF

3.38

33

3.38

57

3.38

72

3.38

15

3.38

50

3.37

77

12.0

4

15.0

4

16.0

4

17.0

4

18.0

4

19.0

43.35

3.45 PLN-RUB

12.0

4

15.0

4

16.0

4

17.0

4

18.0

4

19.0

4

0.10

18

0.10

05

0.10

03

0.09

96

0.09

97

0.09

98

0.090

0.103 PLN-100JPY

12.0

4

15.0

4

16.0

4

17.0

4

18.0

4

19.0

4

3.18

21

3.21

25

3.23

10

3.17

22

3.21

22

3.16

52

3.0

3.5

currency rates

Z∏oty trades in

narrow range

Currency report

After the volatile move-ments in early April, lastweek was rather calm on thecurrencies markets.

The season for US com-panies’ results publicationshas begun, but so far no bigsurprises or disappointmentshave emerged. TheEUR/USD experienced aspike, though, hitting $1.32,its highest level since the endof February. By the end of theweek, investors realized theirgains and the main currencypair fell back down to $1.31.

On the Polish market avast amount of macroeco-nomic data was publishedlast week. Inflation declinedto 1 percent on a yearly basiswhile average wages in-creased by just 1.6 percent.Industrial production de-clined by 2.9 percent inMarch but this was expected,taking into account the win-

ter slowdown. Still, the dataare strong arguments for theMonetary Policy Council tocut interest rates as soon aspossible.

The published data hadlittle effect on the z∏oty,though, which traded in nar-row ranges against the majorcurrencies. The EUR/PLNstayed in the z∏.4.10-4.12zone, while the USD/PLNremained in the z∏.3.11-3.16range.

Little volatility mightmean the market is gettingready for a larger move. If ithappens, a depreciation ofthe z∏oty can be expected.The stock market in Polandis down, so foreign investorswill not help the currency. Inthe upcoming weeks theEUR/PLN could be headingup to z∏.4.15 while theUSD/PLN could rise to therange of z∏.3.20. ●

Adam NarczewskiX-Trade Brokers DM SA

SO

UR

CE

: N

BP

Major indices

Top 5 Closing % change (week) 52-week high 52-week low

ADVADIS 0.02 100.00 0.07 0.01INTAKUS 0.02 100.00 0.02 0.01FON 0.10 25.00 0.19 0.07KBDOM 0.05 25.00 0.19 0.04IDEON 0.06 20.00 0.20 0.04

WIG 43,364.70 (Apr 18 close)

Change for the week: -5.09% 52-week high: 48,222.72

Change year to Apr 18: -9.86% 52-week low: 36,653.28

Top 5 Closing % change (week) 52-week high 52-week low

TPSA 6.51 2.68 17.34 6.23ASSECOPOL 43.10 1.39 50.90 38.80EUROCASH 52.50 -0.38 56.25 36.34BOGDANKA 118.30 -1.42 143.00 114.00PGNIG 5.45 -1.98 6.10 3.63

Bottom 5 Closing % change (week) 52-week high 52-week low

AGROTON 3.45 -57.62 21.90 1.13COALENERG 3.70 -38.33 26.00 3.52IFCAPITAL 0.16 -33.33 10.20 0.15EUROMARK 0.02 -33.33 1.86 0.01BOMI 0.02 -33.33 1.52 0.01

Bottom 5 Closing % change (week) 52-week high 52-week low

KGHM 140.20 -16.00 194.80 92.14SYNTHOS 4.75 -11.21 6.00 4.29KERNEL 53.50 -10.31 76.00 47.30TAURONPE 3.90 -9.09 5.11 3.84JSW 83.00 -6.95 101.00 80.00

WIG20 2,269.22 (Apr 18 close)

Change for the week: -5.80% 52-week high: 2,628.36

Change year to Apr 18: -13.59% 52-week low: 2,035.80

mWIG40 2,520.54 (Apr 18 close)

Change for the week: -3.91% 52-week high: 2,718.31

Change year to Apr 18: -1.87% 52-week low: 2,147.52

sWIG80 10,415.53 (Apr 18 close)

Change for the week: -4.52% 52-week high: 11,245.80

Change year to Apr 18: -1.10% 52-week low: 8,984.43

NewConnect 31.42 (Apr 18 close)

Change for the week: -1.60% 52-week high: 41.55

Change year to Apr 18: -5.42% 52-week low: 31.21

WIG-Banki 6,160.57 (Apr 18 close)

Change for the week: -4.61% 52-week high: 6,723.16

Change year to Apr 18: -8.37% 52-week low: 5,163.30

DJIA14,537.14 (Apr 18 close)

-2.21% (for the week)

CHANGE: 8.38%

(year to Apr 18)

52-week high: 14,887.51

52-week low: 12,035.09

NASDAQ3,166.36 (Apr 18 close)

-4.05% (for the week)

CHANGE: 1.74%

(year to Apr 18)

52-week high: 3,306.68

52-week low: 2,726.68

S&P5001,541.61 (Apr 18 close)

-3.25% (for the week)

CHANGE: 5.41%

(year to Apr 18)

52-week high: 1,597.35

52-week low: 1,266.74

FTSE1006,243.70 (Apr 18 close)

-2.69% (for the week)

CHANGE: 3.59%

(year to Apr 18)

52-week high: 6,533.99

52-week low: 5,229.76

DAX7,473.73 (Apr 18 close)

-5.05% (for the week)

CHANGE: -3.92%

(year to Apr 18)

52-week high: 8,074.47

52-week low: 5,914.43

NIKKEI13,220.07 (Apr 18 close)

-2.43% (for the week)

CHANGE: 23.69%

(year to Apr 18)

52-week high: 13,568.25

52-week low: 8,238.96

world stock indices

19.0

3

20.0

3

21.0

3

22.0

3

25.0

3

26.0

3

27.0

3

28.0

3

02.0

4

03.0

4

04.0

4

05.0

4

08.0

4

09.0

4

10.0

4

11.0

4

12.0

4

15.0

4

17.0

4

18.0

443,000

43,800

44,600

45,400

46,200

47,00019

.03

20.0

3

21.0

3

22.0

3

25.0

3

26.0

3

27.0

3

28.0

3

02.0

4

03.0

4

04.0

4

05.0

4

08.0

4

09.0

4

10.0

4

11.0

4

12.0

4

15.0

4

17.0

4

18.0

42,200

2,260

2,320

2,380

2,440

2,500

19.0

3

20.0

3

21.0

3

22.0

3

25.0

3

26.0

3

27.0

3

28.0

3

02.0

4

03.0

4

04.0

4

05.0

4

08.0

4

09.0

4

10.0

4

11.0

4

12.0

4

15.0

4

17.0

4

18.0

42,500

2,540

2,580

2,620

2,660

2,700

0 0 0 0 0 0

19.0

3

20.0

3

21.0

3

22.0

3

25.0

3

26.0

3

27.0

3

28.0

3

02.0

4

03.0

4

04.0

4

05.0

4

08.0

4

09.0

4

10.0

4

11.0

4

12.0

4

15.0

4

17.0

4

18.0

410,400

10,560

10,720

10,880

11,040

11,200

19.0

3

20.0

3

21.0

3

22.0

3

25.0

3

26.0

3

27.0

3

28.0

3

02.0

4

03.0

4

04.0

4

05.0

4

08.0

4

09.0

4

10.0

4

11.0

4

12.0

4

15.0

4

17.0

4

18.0

4

31.0

31.4

31.8

32.2

32.6

33.0

19.0

3

20.0

3

21.0

3

22.0

3

25.0

3

26.0

3

27.0

3

28.0

3

02.0

4

03.0

4

04.0

4

05.0

4

08.0

4

09.0

4

10.0

4

11.0

4

12.0

4

15.0

4

17.0

4

18.0

4

6,100

6,180

6,260

6,340

6,420

6,500

Other indices

Macro news pushes

indices down

Stocks report

On Monday investors wokeup to worrisome news fromChina. With its Q1 GDPgrowing by a disappointing7.7 percent (experts predict-ed 8 percent growth), indicesthe world over dove into thered. Stocks of companiesdealing in commodities werethe most affected, and Polishmining giant KGHM was noexception, with its stocksdropping sharply, by 6.1 per-cent. However the biggestdrop on Monday came fromAgroton, an Ukrainian agri-culture company, whoseshares plummeted by a stag-gering 68.6 percent. Theoverall WIG index and theblue-chip WIG20 lost 1.8and 2 percent, respectively.

On Tuesday there was notrade on the Warsaw StockExchange, as the perform-ance of the newly imple-mented UTP system wasbeing evaluated.

Wednesday continued with

the fall of KGHM shares,which slid a further 7.49 per-cent. That helped drag downthe WIG20 by 1.94 percent, toits lowest level since Septem-ber of last year. On the sameday, the WIG lost 1.81 percent.

Thursday saw more nega-tive macroeconomic news.Industrial production inPoland in March slowed at arate of 2.9 percent y/y, whichdidn’t help stocks. TheWIG20 lost 1.54 percent andthe WIG 1.26 percent, withcoal miner Jastrz´bska Spó∏-ka W´glowa being the biggestloser, recording a 5.1 percentdrop. Meanwhile, Boryszew’sinvestors were the happiestof the bunch, with theirshares in the industrial com-pany gaining 2.3 percent.

Indices ended up on Fri-day, but just barely. TheWIG20 gained 0.37 percentand the WIG finished with ameager 0.17 percent gain.

JJaacceekk CCiieessnnoowwsskkii

APRIL 22-28, 2013SSPPOORRTTSS && LLIIFFEESSTTYYLLEE18 www.wbj.pl

CO

UR

TE

SY O

F O

RG

AN

IZE

RS

10th Planete+ Doc Film FestivalMay 10-19The Kinotekaand Iluzjon cinemas,Warsaw

One of the most importantevents on Warsaw’s cultural cal-endar is the Planete+ Doc FilmFestival, renowned for offeringaudiences the very best in docu-mentary cinema from aroundthe world. Once again, thecream of the entrants from theBerlin, Locarno and Sundancefilm festivals will be on show, as

well as numerous retrospec-tives, discussion panels andmeetings with the visionariesbehind the camera.

This year’s entrants, whowill have the opportunity to winprizes in 11 categories, include:“The Act of Killing” a filmwhich details, through theaccounts of the perpetrators,how more than one millionalleged communists and ethnicChinese were killed in 1960sIndonesia; “The End of Time”a film from visionary film-maker Peter Mettler, which

explores our perception oftime; “Pussy Riot: A PunkPrayer” which details the well-known case of the Pussy Riotprotestors in Russia, and “ALiar’s Autobiography: TheUntrue Story of MontyPython’s Graham Chapman,”an animated film about the lifeof the late comedy hero Gra-ham Chapman.

DDaavviidd IInngghhaamm

For more informationabout full listings visit the festi-vals homepage planetedocff.pl

Film festival

Life through a lens

The Art of Killing

Music festival

Electronic talentFreeFormFestival 2013May 10-11Soho Factoryul. Miƒska 25, Warsaw

Now in its ninth year, theFreeFormFestival is Warsaw’spremier weekend event for allthings electronic. Over theyears it has been renownedfor bringing together some ofthe best new musical talentwhile also giving the stage tohigh profile artists like Gold-frapp, The Orb and TheStreets.

This year’s lineup onceagain includes some of thehottest musical artists outthere, including trip-hop pio-neer Tricky, who released his10th studio album “FalseIdols” earlier this year, SimonDelacroix, better known byhis stage name The ToxicAvenger, an electro-thrashproducer and DJ hailing fromParis, and American rapperAzealia Banks, who toppedthe NME’s 2011 cool list.

There are three stages atthe festival, the Grolsch stage,

where the headliners willplay, the second stage and theclub stage, which is where DJswill entertain crowds untildawn. And all this takes placein the post-industrial settingof the SOHO Factory, whichis located in the capital’s artis-tic district of Praga. Weekendtickets for the festival arepriced from z∏.190, while one-day tickets can be purchasedfor z∏.120. DDII

For more information logon to freeformfestival.pl

American football

MMaarrqquueeee mmaattcchhuupplliivveess uupp ttoo bbiilllliinnggGdynia beat Wroc∏awin an exciting previewof potential playofffoes

The most anticipated matchupof the third weekend of gamesin the Polish American Foot-ball League’s Topliga livedentirely up to its billing, as thedefending champion Sea-hawks Gdynia defeated GiantsWroc∏aw 32-28 in the top divi-sion’s first 2013 meeting ofmembers of the “Big Four” inGdynia. The Seahawks movedto 3-0 with the victory.

The lead changed handsfour times in the second half,as the last two champions ofPoland slugged it out in agame that hopefully portendsthe kind of football that will beseen in this year’s Topliga play-offs. Gawe∏ Pilachowskiscored a pair of touchdownsfor the third straight game forthe Seahawks, who have nowwon 13 in a row overall datingback to last season.

While the Seahawks will bepleased with the result, theyhad no time to rest on their lau-rels, as they were due to travel

to Warsaw on April to face theWarsaw Eagles in a rematch oflast year’s championship game.The Giants, on the other hand,will get at least one morechance for revenge later in theyear, and possibly even two ifthese teams meet again in thepostseason. In other words,nothing is decided yet.

Elsewhere, The WarsawSpartans went down to theirbiggest Topliga defeat so far asthey lost 56-6 to Devils Wro-claw in their third match of theseason. With a new coachingstaff and several new players

dotting the roster, it was theDevils’ first match of the sea-son and it was a happy return,as American running backXavier Glenn scored fivetouchdowns.

In the weekend’s othergame, Koz∏y Poznaƒ used theirtrademark defense to get theirfirst win of the season, over-coming a halftime deficit tobeat the AZS Silesia Rebels13-4 in Chorzów. The Rebelsbecame the first team in PLFAhistory to finish a game with 4points.

AAlleexx ZZaarrggaanniiss

Tennis

Roberta Vinci wins Katowice Open

The Italian defeatedtournament favoritePetra Kvitova

Italian Roberta Vinci defeatednumber-one seed Petra Kvito-va 7-6, 6-1, for an upset in thefinal of the inaugural Katow-ice Open last week.

It took 69 minutes to sepa-rate the two players in a tightopening set before Ms Vinci,number 12 in the WTA rank-ings, took the tie breaker. TheItalian, who is the world num-ber-one-ranked doubles play-er, with three Grand Slam

wins, stepped up a gear in thesecond to blow away her high-er ranked opponent, takingthe set 6-1 to secure her eighthcareer singles title on theWTA tour.

“I played a really goodgame today,” Ms Vinci wasquoted as saying on the WTA’sofficial website. “Petra wasplaying very well and veryaggressively in the first set, get-ting a lot of first serves in, but Istayed with her and won thetie-break,” she said.

“Things were better in thesecond set, probably because

she was a little bit tired. … Buteverything was working for meall week. I’m happy I was ableto beat such a tough opponentand win this title,” she added.

For Ms Vinci, who is 30years old and hails from fromPalermo, Italy, it looks like thebest may be yet to come. Shehas notched up some signifi-cant wins over the past 12months, winning four doublestitles already this year, includ-ing the Australian Open,before adding her first singlestitle of the year in Katowice.

DDaavviidd IInngghhaamm

SH

UT

TE

RS

TO

CK

Roberta Vinci

CO

UR

TE

SY O

F J

AC

EK

STA

¡C

ZA

K/P

LF

A.P

L

Jeremy Dixon carries the ball for the Seahawks in their

win over the GiantsC

OU

RT

ES

Y O

F F

RE

EF

OR

MF

ES

TIV

AL

.PL

The Toxic Avenger

Techeye has finally gotten the greenlight to “pimp” one room of ourhome. Our beloved wife, also knownas She of the Iron Purse, has gracious-ly agreed to let us create a room-sizedshrine to technology. And it only tooksix weeks of non-stop whining to con-vince her.

Sadly, the space in question is theliving room. Fine, OK. But just for therecord, O Darling Wife, there’s noth-ing creepy or unsanitary aboutinstalling a big-screen TV, surround-sound speakers and an Xbox 360 withfour controllers in a water closet.

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

let in the liv-ing room.And thenwe’re going topurchase an80-inch AquosQuattron 8-Series TVfrom Sharp.

This is a3D -capableunit with a1080p LED

display, but it’snot one of those bleeding-edge TVswith 4K resolution. Let’s just get thatout of the way. On the upside,Sharp’s proprietary Quattroncolor-enhancing technologydelivers luscious, crisp images, soyou probably won’t care if the TVis a couple pixels shy of 4K.

The Aquos Quattron 8-Seriescontains a dual-core processor,built-in WiFi and 35W audio witha subwoofer. Two pairs of 3Dglasses are thrown in the deal,which is approximately two pairsmore than most TV makers offer.

You pay a premium for all ofthe above, of course: $6,500. Ifyou’re feeling thrifty, there’s alsoa 70-inch Aquos Quattron available

for $4,000. Now, conventional wisdom has it

that if you’re going to splash out on anice TV, you should pair it with anequally nice sound system. What con-ventional wisdom doesn’t have is limit-ed funds.

Techeye’s room-pimping budgetwill be more or less decimated by anew TV, you see, so we’re going tosettle for something modest when itcomes to audio. Something likeCreative’s T3150 wireless 2.1 Blue-tooth Speaker System, which costsan agreeable €70.

That’s not to suggest the T3150

lacks merits beyond its price point.It’s compact and svelte, yet square,much like a girl we dated in univer-sity. We’re also excited by the“down-firing subwoofer,” which“gives your music a boost that issure to delight your senses.” Thedownstairs neighbors are just goingto love it.

It’s worth noting that Creativemarkets the T3150 mainly as anaccessory for laptops or mobilephones; nevertheless, we’re confi-dent-ish that we can hook it up to asmart TV. Also, be aware that theT3150 has a range of 10 meters from

the device it’s connected to;walls, furniture or large-boned people will interferewith the signal.

And with that, Techeye’sbudget is almost gone.However, we may haveenough money for one lastitem – we just have to sell afew of our son’s toys.

The Cube from Asus is a“Google TV media stream-er” that “instantly upgradesHDTVs with a wealth ofonline content.” If you’reunfamiliar with Google TV,

it’s basically an Android-

enabled content platform that lets youaccess online entertainment. Formore info on Google TV, please see:the internet.

Anyway, the Cube – until recentlycalled the Qube – is the first GoogleTV device to integrate voice searchand motion control, with the latterfacilitated by a rather complicatedremote control. There’s also picture-in-picture viewing and games via theGoogle Play market.

The Cube launches this week inthe US, cost: $140. Internationalrelease and pricing are as yet unspeci-fied, but we expect it’ll head this waysoon enough. Hopefully before ourwife’s beneficence expires and she re-seals the iron purse. ●

APRIL 22-28, 2013 LLAASSTT WWOORRDD www.wbj.pl 19

Living rooms and technological pimpage

Tech Eye

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

CO

UR

TE

SY O

F C

RE

AT

IVE

CO

UR

TE

SY O

F S

HA

RP

To advertise in WBJ’s classifieds section, contact

Agnieszka Brejwo, at(+48) 222-577-526 or abrejwo@wbj.pl

CO

UR

TE

SY O

F A

SU

S

The Cube

The T3150 wireless 2.1 Bluetooth

Speaker System

The Aquos Quattron 8-Series