PT Urban Issues No. 006

No. 006 / 17th March 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

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BBI Development is planning several new projects in Warsaw, at least one of which could be announced this year page 2 Echo Investment will launch construction on a new office project in Kraków in the upcoming weeks page 2 S+B Gruppe will start building a new office scheme in Warsaw in the second quarter of this year page 2 Architects are now designing a new 190-metre skyscraper that will be developed in downtown Warsaw page 2 Ghelamco Poland will soon start building a new office scheme in Warsaw page 3 A star architect will design a new HB Reavis investment in Warsaw page 3

BPTO delivers road infrastructure for the planned Young City development in Gdańsk page 3

Black Lion will later this year launch another phase of the Soho Factory project in Warsaw page 3

The city of Warsaw will soon be selling a down-town skyscraper site page 4 Łódź is planning more tenders for the sale of land in the new centre of the city page 4 Kraków wants to interest investors with new development opportunities in the east of the city page 4 Lublin City Hall envisions a new business hub on the site of a former bus depot page 4 Facts & Figures page 5

The Warsaw stand at MIPIM 2014 Photo: Warsaw City Hall

New projects discussed at MIPIM 2014New projects discussed at MIPIM 2014New projects discussed at MIPIM 2014New projects discussed at MIPIM 2014 In this special issue of the PT Urban Issues newsletter, we are taking a look at new commercial and residential projects, as well as attractive municipal plots, which were being presented or discussed during the MIPIM international property fair in Cannes, France, last week. Pages 2-4

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Conference: Primetime Warsaw II Developing a sustainable European metropolis3 April 2014, Conference Center Muranów, The Museum of the History of Polish Jews

LEAD SPEAkErS:

• Keynote: Elżbieta Bieńkowska, Deputy Prime Minister & Minister of Infrastructure and Development

• Professor Hanna Gronkiewicz-Waltz, Mayor of the City of Warsaw

• Professor Sven Bienert, MrICS, Professor of Sustainable real Estate at the University of regensburg and ULI Sustainability Fellow (Europe’s leading expert in the financial implications of sustainable development)

ToPICS:

• Infrastructural and Social Challenges for Warsaw within the new European Funds Perspective 2014-2020

• Wola & Praga: two of Warsaw’s most dynamic districts, soon to be joined by the 2nd metro line

• Cutting away the ‘green’ Pr fluff: what are the financial results and implications of sustainable development?

• Can Warsaw come up with a comprehensive ‘high street retail’ plan?

• Trends & issues in the office and retail sectors

• The art of Placemaking: creating attractive public spaces in and around commercial properties

Building on the success of our first conference about Poland's capital, we bring you all the major issues and opportunities, in Central Europe's pre-eminent city.

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weekly newsletter # 006 / 17th March 2014 / page 2

MIPIM 2014

Developers Developers Developers Developers planningplanningplanningplanning a a a a host of new projects host of new projects host of new projects host of new projects across Polandacross Polandacross Polandacross Poland

As the commercial property market in Poland con-tinues its strong performance and the residential market evidently picks up, developers are now pre-paring a host of new projects across the country. In this special issue of the newsletter, we are taking a look at a number of new schemes that were being discussed during the MIPIM international property fair in Cannes, France. Some of them have not been officially announced yet. BBIBBIBBIBBI planninplanninplanninplanning several new projects in Warsag several new projects in Warsag several new projects in Warsag several new projects in Warsawwww Warsaw Stock Exchange-listed developer BBI De-velopment is now preparing a number of new pro-jects in the Polish capital, one or two of which could be announced before the end of this year, said Rafał Szczepański, vice president of the management board at the company. The schemes are still at an early stage of preparation and their exact locations cannot be revealed. The developer is interested in sites in locations including the downtown and the Mokotów district of Warsaw, Szczepański added. In general, BBI Development is currently almost exclusively looking at new development opportuni-ties in Warsaw because the Polish capital is the market which the company knows best, Szczepań-ski said. He has recently said in an interview with Poland Today that his company is now also planning a new project in the Praga part of the city. For the

time being, no further details of the scheme can be revealed, Szczepański said.

BBI Development is planning a high-rise office project called Roma Tower in downtown Warsaw

Image: BBI Development

BBI Development, which delivered, in cooperation with Liebrecht & wooD, the Plac Unii mixed-use complex in Warsaw last year, is currently involved in projects including Centrum Praskie Koneser, Centrum Marszałkowska and Roma Tower in the Polish capital. The latter scheme will be an office skyscraper located at the intersection of ul. Emilii Plater and ul. Nowogrodzka in downtown Warsaw. BBI Development is waiting for the city officials to enact a zoning plan for the area in question so that it can go ahead with the construction.

EchoEchoEchoEcho to launch new office project in Krakóto launch new office project in Krakóto launch new office project in Krakóto launch new office project in Krakówwww Warsaw Stock Exchange-listed developer Echo In-vestment has recently obtained a building permit for a new office project in Kraków, said Rafał Ma-zurczak, office and hotel department director at the company. The phased scheme will be located on ul. Opolska and will comprise approximately 50,000 sqm of office space. Construction is expected to launch in the upcoming months, Mazurczak said. S+BS+BS+BS+B to to to to startstartstartstart new office project in Warsaw in Q2new office project in Warsaw in Q2new office project in Warsaw in Q2new office project in Warsaw in Q2 Developer S+B Gruppe is planning to launch con-struction on a new office project in downtown War-saw in the second quarter of this year, said Franz Paul Bauer, managing director at the company. The planned scheme will be located on ul. Królewska and will comprise around 6,000 sqm of leasable of-fice space. S+B Gruppe has already secured a build-ing permit for the development, Bauer said. S+B Gruppe is best known in Poland for its Zebra Tower investment in Warsaw which delivered al-most 18,300 sqm of usable space in 2010. In the fol-lowing year, the building was sold to the German investment fund Union Investment for approxi-mately €76 million. In May this year, S+B Gruppe will open a 300-room Hampton by Hilton hotel which it is building in downtown Warsaw. The company is looking for new development opportu-nities in the Polish capital, Bauer said. New skyscraper planned for downtown WaNew skyscraper planned for downtown WaNew skyscraper planned for downtown WaNew skyscraper planned for downtown Warrrrsawsawsawsaw The APA Wojciechowski Architekci studio is now designing a new 190-metre skyscraper which will be developed in downtown Warsaw, said Szymon Wojciechowski, architect and president of the man-agement board at the company. For now, the details of the planned tower remain confidential – neither


the developer of the project, nor the exact location of the scheme can be revealed at this moment, Wo-jciechowski added. Ghelamco to start new office project in WaGhelamco to start new office project in WaGhelamco to start new office project in WaGhelamco to start new office project in Warrrrsawsawsawsaw Developer Ghelamco is planning to commence con-struction on a new office project in Warsaw in the upcoming months, said Jeroen van der Toolen, managing director, Central and Eastern Europe, at the company. The scheme will be located on ul. Wołoska in the Mokotów district of the city, on a plot neighbouring the Mokotów Nova development which Ghelamco completed in 2012, van der Toolen said.

The new project will be located adjacent to the Mokotów Nova scheme completed in 2012 Image: Ghelamco Poland

He added that the developer is now close to secur-ing a building permit for the planned development. The investment is expected to deliver approxi-mately 21,000 sqm of leasable office space. In other news, van der Toolen said that Ghelamco is also planning to develop two office projects in down-town Warsaw which will comprise approximately 10,000 sqm and 15,000 sqm of leasable space.

Star architect to design new HB Reavis projectStar architect to design new HB Reavis projectStar architect to design new HB Reavis projectStar architect to design new HB Reavis project A star architect of international fame will design the office project which developer HB Reavis Poland is planning to develop on ul. Chmielna in downtown Warsaw, said Stanislav Frnka, country CEO at the company. The design of the scheme should be re-vealed later this year, Frnka added. HB Reavis is planning a major investment that will include at least one skyscraper in the location in question. BBBBPTO finishing Young CityPTO finishing Young CityPTO finishing Young CityPTO finishing Young City road infrastructurroad infrastructurroad infrastructurroad infrastructureeee Developer BPTO, the owner of 22 hectares of post-industrial land which used to house the historic Gdańsk Shipyard in Gdańsk on the Baltic coast, is now finishing construction on new road infrastruc-ture that should streamline the planned redevelop-ment of the huge site. The company has financed the construction on its own and hopes its comple-tion will help attract investors willing to participate in the development of the Young City Gdansk mixed-use project which will be built on the site in the upcoming years. The scheme is expected to include approximately 155,000 sqm of office space, around 140,000 sqm of residential space, approximately 65,000 sqm of re-tail space and around 45,000 sqm of hotel and con-ference areas. The Young City Gdansk investment is located within walking distance from both the main railway station of Gdańsk and the historic part of the city and is one of the largest waterfront revitali-zation projects in Europe. Mogens Jorgensen, chairman of the board of direc-tors at BPTO, said that the objective is to create a place that will combine historic elements of the former shipyard, including its iconic cranes, with modern architecture. BPTO is currently looking for investors who can acquire either the entire site or

individual plots within it. According to Guy Perry, an architect and urban planner involved in work on the Young City Gdansk concept, the development of the scheme will take around ten years. Black Lion Black Lion Black Lion Black Lion planning newplanning newplanning newplanning new phase of Soho Facphase of Soho Facphase of Soho Facphase of Soho Factortortortoryyyy The Black Lion investment fund is planning to launch construction on another phase of its Soho Factory mixed-use project in Warsaw later this year. A new residential scheme within the multi-phased development, called Tetris, will deliver 145 apartments. The Soho Factory investment is located on ul. Mińska in the Praga Południe district of the Polish capital and involves the revitalization of ap-proximately eight hectares of post-industrial land. It will include both revitalized post-industrial buildings housing office, retail and cultural space, as well as a number of new buildings housing apartments. The first residential building, called Rebel One, has already been completed and has been fully sold out. Construction is now underway on the second residential building, called Kamion Cross, which will deliver 174 apartments later this year. More than a half of them has already been sold, said Magdalena Sikorska, sales manager at Soho Factory.

MIPIM 2014

Cities touting Cities touting Cities touting Cities touting attractive municipal attractive municipal attractive municipal attractive municipal plotsplotsplotsplots

The authorities of the largest cities in Poland were last week presenting a number of highly attractive


municipal plots that already are, or will soon be, on sale at the MIPIM international property fair in Cannes. Here were are taking a look at two interest-ing sites in Warsaw and Lublin, as well as two large areas in Łódź and Kraków which are expected to be completely revamped in the next few years. WarsawWarsawWarsawWarsaw hoping to sell skyhoping to sell skyhoping to sell skyhoping to sell skyscraper sitescraper sitescraper sitescraper site this yearthis yearthis yearthis year Among the properties that Warsaw City Hall was presenting in Cannes this year was a plot in the downtown on which two new high-rise buildings, standing 180 metres and 160 metres tall, could be developed in the near future. The site is located on ul. Emilii Plater and houses a school building. A new zoning plan, which is now being prepared by the city officials, is expected to allow for the con-struction of the towers but, in fact, the plot could be sold even before the plan is ready.

Like in previous years, there was much interest in the Warsaw stand at MIPIM last week Image: Warsaw City Hall

Jan Budniak, director of the property management bureau at Warsaw City Hall, said that a number of the leading developers active in the Polish market

are already interested in the plot in question. He added that the site could change hands before the end of this year. The exact bid price is not known yet but according to Budniak the property is valued at approximately 180 million zloty. More New CeMore New CeMore New CeMore New Cennnntre of Łódź sites up for saletre of Łódź sites up for saletre of Łódź sites up for saletre of Łódź sites up for sale For their part, the municipal authorities of Łódź were touting in Cannes their ambitious plans to re-vitalize and redevelop approximately 100 hectares of land located in the very downtown of the city. Called Nowe Centrum Łodzi (The New Centre of Łódź), the spectacular investment will involve the development of new residential, commercial and public areas on plots including post-industrial and railway premises. Construction is now underway on a new under-ground railway station which will lie at the heart of the area in question. A former heat and power sta-tion is being revitalized and will soon house modern education and cultural facilities. Towards the end of last year, the city of Łódź sold land which will house the so-called Brama Miasta (The City Gate) project – a Daniel Libeskind-designed building that is expected to connect the new and the historic cen-tre and to become a new architectural symbol of Łódź. The municipal authorities are currently preparing for sale more plots within The New Centre of Łódź area. More tenders are expected to be announced later this and next year, said Błażej Moder, director of The New Centre of Łódź Authority. Łódź Mayor Hanna Zdanowska pointed out that The New Cen-tre of Łódź will deliver new work and living places in downtown Łódź and should thus help reverse the negative demographic trends in the city – today many of the inhabitants chose to move to the sub-urbs.

KrakówKrakówKrakówKraków touttouttouttoutinginginging Nowa HuNowa HuNowa HuNowa Huta ta ta ta prospectsprospectsprospectsprospects Also Kraków City Hall was during the MIPIM fair trying to attract investor attention to a huge ne-glected post-industrial area in the east of the city which badly needs to be revitalized and redevel-oped. The municipal authorities have prepared a conceptual zoning plan and a feasibility study for the Kraków – Nowa Huta of the Future project which envisions massive changes in the Nowa Huta district of Kraków. Four independent investment initiatives will be im-plemented within the huge scheme, one of which will be the development of a science and technology park on over 127 hectares of land in the Branice neighbourhood of Nowa Huta. In the same neighbourhood, on more than 228 hectares of land, also a large-scale logistics centre will be developed. Construction on the first buildings of the centre could launch next year. Another initiative will involve the delivery of an open area with landscaped greenery, similar to the Błonia area in Kraków, which could be used for the organization of large-scale cultural and sports events. Last but not least, the Kraków – Nowa Huta of the Future scheme is expected to feature an over 191-hectare rest and recreation area with auxiliary services which would serve Kraków inhabitants and tourists alike. Lublin seekingLublin seekingLublin seekingLublin seeking buyers for former bus depot sitebuyers for former bus depot sitebuyers for former bus depot sitebuyers for former bus depot site The authorities of Lublin were looking for potential buyers for a 32,400-sqm site which used to serve as a bus depot and is now expected to be redeveloped as a new business district of the city in the upcom-ing years. The site is located close to residential ar-eas and a university campus and is covered by a zoning plan which allows for the construction of of-fice, retail, residential, leisure and hotel space.

weekly newsletter # 006/ 17th March 2014 / page 5

FACTS & FIGURES

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

Location Project Developer Area

(sqm)

Wrocław Panattoni BTS Lear Panattoni 32,300

Silesia SEGRO Business Park Gli-

wice Building B SEGRO 31,700

Warsaw Tulipan Park Warszawa

Bulding B SEGRO 24,000

Silesia SEGRO Industrial Park

Tychy B SEGRO 18,300

Wrocław Prologs Park Wrocław V Prologis 18,282

Source: Colliers International

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


(sqm)

Warsaw Konstruktorska

Business Center HB Reavis 48,300

Warsaw Miasteczko Orange Bouygues Immobilier 43,700

Warsaw Plac Unii BBI Development

/Liebrecht & wooD 41,300

Warsaw Marynarska 12 Ghelamco 40,000

Wrocław Sky Tower LC Corp 28,100


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


(sqm)

Gliwice Europa Centralna Helical Poland 67,000

Kraków Galeria Bronowice Immochan 60,000

Poznań Poznań City Center TriGranit 58,000

Gdynia

Centrum Riviera

(Wzgórze

– extension)

Mayland Real Estate 70,500

Katowice Galeria Katowice

Meyer Bergman

European Retail

Partners/ Neinver

42,000


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

Sector

Project

Value

(EUR mil-

lion)

Seller

Buyer

Retail Silesia City

Center

412 Immofinanz Allianz, ECE

Retail Galeria

Kazimierz 180

Globe Trade

Center,

Aventus

Invesco RE

Retail Galeria Domini-

kańska 151.7 ECE

Atrium

European Real

Estate

Office New City

127 ECI

Hines Global

REIT

Office Mokotów Nova

121 Ghelamco

Tristan Capital

Partners

Office Senator

120 Ghelamco

Union

Investment

In-

dustrial

H&M ware-

house

64 Invesco RE W.P. Carey

Indus-

trial Żerań Park II 43.2

Area Property

Parners,

Apollo Rida

Poland

SEGRO


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

Location Tenant Area(sqm) Project

Warsaw Polkomtel 22,680 Konstruktorska 4

Warsaw Getin Holding 18,850 Wola Center

Warsaw Urząd Rejestracji Leków 13,000 Adgar Park West

Warsaw Bank Zachodni

WBK 11,800 Atrium 1

Wrocław Getin Holding 11,700 Sky Tower


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

20

30

40

50

60

70

80

90

ŁódźWrocław

Tri-citySzczecin

PoznańKraków

Warsaw (out of town)Silesia

Warsaw (city centre)

Source: Cushman & Wakefield

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

Source: Cushman & Wakefield

10 15 20

25

Gdańsk

Szczecin

Katowice

Poznań

Kraków

Wrocław

Warsaw (non-central)

Warsaw (CBD)

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

Location Tenant Area(sqm) Project

Wrocław Amazon 123,500 Goodman Wrocław South

Logistic Center

Poznań Amazon 100,653 Panattoni Poznań

Wrocław Amazon 100,653 Panattoni Wrocław

Poznań supermarket

chain 82,385 -

Central Po-

land Castorama 49,961 Panattoni Park Stryków


Registration till 20 March 2014:www.prospectsinpoland.com

During the 3rd logistics conference in Gliwice, representatives of the City, sector experts, investors interested in the region, as well as those who have already put their money in, will discuss how to maximise the potential of the city and its surroundings.

Conference: Hub Silesia – logistics as a driver of the region's economic growth 26 March 2014, Silvia Gold Hotel, Gliwice

Organizers: Media Partner:Content Partner: Partner:

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PT Urban Issues No. 006