PT Urban Issues No. 016

No. 016 / 2nd June 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

[email protected]

tel. +48 504 182 308

HOSPITALITY Baltic Park Molo will be the first LEED-certified hotel complex in Poland page 2

OFFICE A number of locations are emerging as new office markets in Poland page 2 HB Reavis has got financing for Gdański Business Center in Warsaw page 3 GreenWings Offices in Warsaw has obtained an occupancy permit page 3

RETAIL The Galeria Bursztynowa mall in Ostrołęka has opened for business page 3

RESIDENTIAL Dom Development has launched another project in Warsaw page 4

INTERVIEW Poland Today talks to Piotr Firsowicz, the director of the urban planning department at Białystok City Hall page 5

LATEST LEASE DEALS IN BRIEF Recent lease transactions in the office, retail and warehouse sectors page 6

COMING & GOING Kamil Piaskowski, B&B Hotels Polska page 6

FACTS &FIGURES Largest completions, largest lease deals and rents in the commercial property market in 2013 page 7

CONFERENCES Poland Transformed conference page 8

The assets are in locations including Mysłowice Photo: Cushman & Wakefield

SSSStandard Life Invtandard Life Invtandard Life Invtandard Life Investments sellsestments sellsestments sellsestments sells itsitsitsits Polish Polish Polish Polish logistics portfolilogistics portfolilogistics portfolilogistics portfolio for o for o for o for €€€€118.2 million118.2 million118.2 million118.2 million Standard Life Investments Select Property Fund has offloaded seven existing logistics assets in three locations across Poland to Logicor, the European logistics platform of Blackstone page 4

RegisteR now foR

Poland & CEE Real Estate Summit Network Global Capital | Warsaw–London–Frankfurt

25 – 26 June 2014, Bristol Hotel, warsaw

DISCUSSION TOPICS INCLUDE:• How does central & eastern Europe fit into the global

property picture? • Poland: Already overbought and overpriced?• Go East!.. But are the global investors ready?• WARSAW OFFICE: How much can the Polish capital

absorb?• POLAND RETAIL: Is the nation already over-sup-

plied?• POLAND LOGISTICS: Is Europe‘s centre a logical

warehouse hub?• Speed dating: Meet new partners for capital, co-invest-

ment and deals• Central Europe: Where is the value in CE around Poland?• Investors in CE: Who are they and what do they want?

• CE OFFICE: Where’s hot and where’s not?• CE RETAIL: Variable speed consumption• CE LOGISTICS: Does it all depend on roads and rail?• OUTSOURCING: Still big but moving up the value

curve• POLAND RESIDENTIAL: Safe as houses ..

or maybe not?• HOTELS: The rise and rise of CEE hospitality• Financing CEE: Are the banks playing ball?

RegisteR today!

... to get the eaRly biRd Rate!

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Poland & CEE Real Estate Summit partners will have an unrivalled opportunity to promote to key industry players in this fast-growing region. Raise your company profile in this increasingly important region for property investment and associate your brand with

the most up-to-date discussion and thought leadership. Bespoke packages are available

upon request.Please contact [email protected] or

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weekly newsletter # 016 / 2nd June 2014 / page 2

HOSPITALITY

Baltic Park Molo to be Baltic Park Molo to be Baltic Park Molo to be Baltic Park Molo to be first LEEDfirst LEEDfirst LEEDfirst LEED----certified certified certified certified hotel project in Polandhotel project in Polandhotel project in Polandhotel project in Poland

Real estate developer and investor Zdrojowa Invest has announced that the hotel part of its flagship Baltic Park Molo hotel and recreation project in Świnoujście on the Baltic coast will feature a LEED certificate of energy efficiency and environmental performance. According to the company, the scheme will be the first hotel complex in Poland to have LEED certification. Currently, 29 buildings in the country, mostly office facilities, can boast of a LEED certificate. “Modern architecture is the distinguishing feature of our hotels,” Jan Wróblewski, management board member at Zdrojowa Invest, said in a statement. He added that the future belongs to passive build-ings and the under-construction Baltic Park Molo will be one of them. The Baltic Park Molo develop-ment will include two five-star hotels, the first of which is scheduled to be delivered in 2016. The whole investment should be completed by 2020. Kołobrzeg-based Zdrojowa Invest specializes in the development of premium second-home and apart-ment hotel projects in prime locations in the most popular tourist destinations across Poland. The on-going schemes of the company include Boulevard Ustronie Morskie in Ustronie Morskie and Diune Hotel***** & Resort in Kołobrzeg. The developer is planning a total of five new investments in the mountains, on the Baltic coast and in the Masurian Lake District.

The whole complex will be ready by 2020 Image: Zdrojowa Invest

OFFICE

The rThe rThe rThe rising significance ising significance ising significance ising significance of emerging office of emerging office of emerging office of emerging office markets in Polandmarkets in Polandmarkets in Polandmarkets in Poland

Eight emerging office markets in Poland – Biały-stok, Bydgoszcz, Kielce, Olsztyn, Opole, Radom, Rzeszów and Toruń – now offer good business de-velopment opportunities, according to a recent re-port by JLL. The eight markets in questions are now attracting a significant amount of interest from developers and tenants, with their growth being predominantly driven by the business services sec-tor, the study said. The cities are alluring to both domestic and interna-tional outsourcing companies planning to establish smaller units, employing up to 150 people, Anna Młyniec, head of office agency and tenant represen-tation at JLL, said in a statement. Smaller office markets are attractive alternatives for business ser-

vices companies, especially for those which are looking to start operations in Poland and for those which are expanding or relocating selected func-tions from their existing centres in the largest cities, Młyniec added. According to JLL data, the total modern office stock in the eight emerging office markets amounts to more than 321,500 sqm, which represents 4.4% of the entire available office stock in Poland. Prime headline rents range from €8 to €12 per sqm per month. The majority of the buildings in those mar-kets are of moderate quality, compared to the build-ings in large cities. However, class-A projects are now also appearing and include Cezal Business Center A in Olsztyn (6,600 sqm) and Radom Office Park A in Radom (4,850 sqm). Currently, a total of almost 50,300 sqm of office space is under construction, with the majority of the new areas being located in Rzeszów (19,700 sqm), Olsztyn (11,900 sqm) and Bydgoszcz (9,800 sqm). Another 194,400 sqm of office space located in the eight cities analyzed by JLL is in the pipeline, which translates into a 70% increase on the second quarter of 2012, the company said in its report.

SkyRes Warszawska office project in Rzeszów Image: Jll


OFFICE

HB Reavis with HB Reavis with HB Reavis with HB Reavis with financing for Gdański financing for Gdański financing for Gdański financing for Gdański Business CenterBusiness CenterBusiness CenterBusiness Center

The project comprises two office buildings Image: HB Reavis

Developer HB Reavis has secured a total of €46.8 million in bank financing from Bank Zachodni WBK and BNP Paribas Bank Polska for its Gdański Business Center (building A) office project in War-saw. This is the second bank loan to have been ob-tained by the company in recent months, noted Stanislav Frnka, CEO HB Reavis Poland. The devel-oper earlier this year got €61.55 million in bank fi-nancing from Bank Pekao for its Konstruktorska Business Center in the Polish capital. The Gdański Business Center scheme is located in the northern part of the Śródmieście district of Warsaw and comprises two buildings which offer 30,000 sqm and 15,600 sqm of office space. The first tenant, SNC Lavalin, has already moved into build-ing B, while building A, which will be occupied by companies including KPMG and Provident, is set to be delivered in June. Construction on the second

phase of the investment is expected to launch in au-tumn this year.

OFFICE

GreenWings Offices in GreenWings Offices in GreenWings Offices in GreenWings Offices in Warsaw gets Warsaw gets Warsaw gets Warsaw gets occupancy permitoccupancy permitoccupancy permitoccupancy permit

Developer OKRE Development has recently ob-tained an occupancy permit for its GreenWings Of-fices office project in Warsaw. The scheme is lo-cated on ul. 17 Stycznia in the Włochy district of the Polish capital, close to the international Warsaw Chopin Airport. Designed by the renowned JEMS Architekci architectural studio, the GreenWings class-A BREEAM-certified development comprises almost 11,000 sqm of leasable office space and also includes a conference centre.

The investment has delivered 11,000 sqm of GLA Image: OKRE Development

CFE Polska, Fagerhult, Tavola, Zespół Zarządców Nieruchomości and Goodyear Dunlop Tires Polska have already leased space at the investment and are expected to move into the property in the upcoming

months. OKRE Development last year secured a building permit for its second office project in War-saw – Grójecka Offices – which will be located in the Ochota district and will deliver 7,400 sqm of leasable space.

RETAIL

Galeria Bursztynowa Galeria Bursztynowa Galeria Bursztynowa Galeria Bursztynowa mall in Ostrołęka mall in Ostrołęka mall in Ostrołęka mall in Ostrołęka opens for businessopens for businessopens for businessopens for business

The mall comprises 27,000 sqm of retail space Image: Cushman & Wakefield

The Galeria Bursztynowa shopping centre project in downtown Ostrołęka in north-eastern Poland of-ficially opened for business at the end of May. The scheme was developed by Narev Inwestycje. The Galeria Bursztynowa development comprises 27,000 sqm of retail space and is now leased out in 93%. Major tenants at the investment include Tesco, OBI, RTV EURO AGD, H&M and fashion brands of the LPP group. “Galeria Bursztynowa is a regional shopping centre with stores leased by both well-known international


retailers and local entrepreneurs,” Tomasz Górski, senior negotiator at the retail department of Cush-man & Wakefield, the leasing agent of the mall, said in a statement. “Its occupancy level is high, given the current market conditions,” he added. Narev Inwestycje is already planning to expand the shop-ping centre, which proves that the region has huge potential, Górski said.

RESIDENTIAL

Dom Development Dom Development Dom Development Dom Development launlaunlaunlaunches new project ches new project ches new project ches new project in Warsawin Warsawin Warsawin Warsaw

The whole project will deliver 631 homes Image: Dom Development

Warsaw Stock Exchange-listed residential devel-oper Dom Development has launched apartment sales in the first two phases of its Apartamenty Saska nad Jeziorem project in Warsaw. Designed by the Hermanowicz Rewski Architekci architectural studio, the scheme is located in the Gocław neighbourhood of the Praga Południe district of the city and will deliver a total of 631 housing units. The first two phases of the development, which will be built by construction company Unibep, will

comprise a combined 392 homes. They are sched-uled to be completed in the second and the fourth quarter of next year. Apartments in the Aparta-menty Saska nad Jeziorem investment, which neighbours the Osiedle Saska project, also devel-oped by Dom Development, are priced at from 8,350 zloty to 14,100 zloty per sqm. Jarosław Szanajca, president of the management board at Dom Development, announced earlier this year that the company would launch a combined eight residential projects in the first half of 2014. The schemes will be located in Warsaw and Wro-cław – the two cities in which the developer is ac-tive – and will include three new developments (two in Warsaw and one in Wrocław) and five new phases of the already ongoing investments. Since the beginning of this year, Dom Development has already officially announced the launch of Aura in Wrocław, Palladium in Warsaw and a new phase of Żoliborz Artystyczny in the Polish capital. Meanwhile, the company has also been acquiring land for future projects of late. In recent months, the developer has announced the purchase of sites for a total of five new schemes in the Ochota, Mokotów and Praga Południe districts of Warsaw.

LOGISTICS

Standard Life Standard Life Standard Life Standard Life Investments selling Investments selling Investments selling Investments selling Polish portfolioPolish portfolioPolish portfolioPolish portfolio

Standard Life Investments Select Property Fund has sold its Polish logistics portfolio to Logicor, the European logistics platform of Blackstone, for over

€118 million. Cushman & Wakefield represented the vendor in the sale process. The portfolio was devel-oped by Standard Life Investments and PDC in 2007-2008 and includes seven completed logistics assets with more than 200,000 sqm of GLA, located in three parks in Mysłowice (Silesia), Stryków (cen-tral Poland) and Robakowo (Poznań area). The logistics portfolio disposal is meant to help Standard Life Investments meet its current objec-tive to refocus on assets that will benefit from the economic recovery which is now seen in a number of markets internationally. “As a fund we remain a committed investor in Poland and continue to look for new opportunities in line with our overall fund strategy,” Andrew Jackson, fund manager at Stan-dard Life Investments Select Property Fund, said in a statement. Soren Rodian Olsen, head of office and industrial investments at the capital markets department of Cushman & Wakefield in Poland, pointed to the large scale of the sale transaction. “This disposal represents one of the largest logistics portfolio transactions in Poland which demonstrates a con-tinued strong demand for high-quality logistics as-sets in strategic Polish distribution hubs,” he said.

The assets are in locations including Mysłowice Image: Cushman & Wakefield


INTERVIEW

Białystok with room Białystok with room Białystok with room Białystok with room for largefor largefor largefor large----scale office scale office scale office scale office parksparksparksparks

Poland Today talks to Piotr Firsowicz, the director of the urban planning department at Białystok City Hall, about zoning plans and the locations in the city where new residential and commercial projects are expected to be developed in the near future. Poland Today: WPoland Today: WPoland Today: WPoland Today: What are the main goals when it hat are the main goals when it hat are the main goals when it hat are the main goals when it comes to urban planning in Białystok in the ucomes to urban planning in Białystok in the ucomes to urban planning in Białystok in the ucomes to urban planning in Białystok in the up-p-p-p-coming years?coming years?coming years?coming years? Piotr Firsowicz: Piotr Firsowicz: Piotr Firsowicz: Piotr Firsowicz: After the current law on urban planning and development came into force, Biały-stok, like the other cities in Poland, was left almost without any zoning plans. Only 1.6% of the city area within the city boundaries at that time was covered by such plans. Since then, the percentage has been rising steadily. Currently, approximately 4,714 hec-tares, that is more than 46% of the city area, are covered by zoning plans. We are working on plans for another 18% of the city area, including for cen-trally located areas, crucial for the image of Biały-stok. After the completion of that work, almost all the ar-eas which are threatened by uncontrolled develop-ment will be covered by zoning plans (forests, which are protected by virtue of a law on the pro-tection of agricultural and forested land, account for 18% of the area of Białystok). We are also finish-ing work on a new study of land use conditions and directions which will provide for inward develop-

ment as the priority when it comes urban develop-ment in Białystok.

Poland Today talks to: Piotr Firsowicz, the director of the urban planning department at Białystok City Hall Which are some of the main problems and chaWhich are some of the main problems and chaWhich are some of the main problems and chaWhich are some of the main problems and chal-l-l-l-lenges that urban planners in the city are facing lenges that urban planners in the city are facing lenges that urban planners in the city are facing lenges that urban planners in the city are facing at the moment?at the moment?at the moment?at the moment? The fragmented ownership structure, which makes it very difficult to acquire land in areas which need thorough redevelopment, is a problem which has negative impact on the rational development of the city. This applies to the city centre where enclaves of neglected, wooden single-family houses have been preserved. Some of them will stay – their pro-tection and modernization is provided for by the zoning plans – and some will be demolished and re-placed with multi-family buildings. The process of transformation is slow. This is why many of the residential projects that have been de-veloped in recent years were built in post-industrial

areas and on land which was previously used for ag-ricultural purposes, in places where it was easier to acquire large sites with a regulated legal status. Some of those projects are in line with the zoning plans. Others, built by virtue of planning decisions, in areas for which zoning plans have not yet been prepared, are in less fortunate locations. Which parts of Białystok are expected to see the Which parts of Białystok are expected to see the Which parts of Białystok are expected to see the Which parts of Białystok are expected to see the most profound changes in tmost profound changes in tmost profound changes in tmost profound changes in the near future?he near future?he near future?he near future? In accordance with the planned inward develop-ment of Białystok, we hope for a sustainable devel-opment of the areas which already have well-developed technical and transport infrastructure. The most anticipated is the transformation of the city centre, in particular of the area around the new Podlasie Opera and Philharmonic building and of the ul. Angielska area. The fringes of the city centre – the area around the railway and bus stations where the development of a new integrated trans-port centre is planned – will also change. Where will new multiWhere will new multiWhere will new multiWhere will new multi----family residential projects family residential projects family residential projects family residential projects be developed?be developed?be developed?be developed? New multi-family residential projects should mainly be developed in the city centre or close to it. We are also planning multi-family residential schemes in post-industrial areas – one such com-plex will be located in the Bojary neighbourhood and another in the Dojlidy neighbourhood. In the future, multi-family residential investments will also be developed in the east of the city but those areas, even though covered by zoning plans, still re-quire the development of transport and technical infrastructure. The retail map of Białystok has changed a lot in The retail map of Białystok has changed a lot in The retail map of Białystok has changed a lot in The retail map of Białystok has changed a lot in recent years. Do you envision more largerecent years. Do you envision more largerecent years. Do you envision more largerecent years. Do you envision more large----scale scale scale scale retail projects in the city?retail projects in the city?retail projects in the city?retail projects in the city?


Large-scale retail projects are now being developed not only close to the multi-family residential schemes on the outskirts of the city, but also in the city centre. It is not known which facilities will be developed in the near future but the study of land use conditions and directions provides for many re-tail space development opportunities. Preferred lo-cations are in the city centre and include the area of the railway and bus stations and the area of ul. Prezydenta Ryszarda Kaczorowskiego. Białystok has not yet developed as a majorBiałystok has not yet developed as a majorBiałystok has not yet developed as a majorBiałystok has not yet developed as a major office office office office market but this could change in the near future. market but this could change in the near future. market but this could change in the near future. market but this could change in the near future. Are there any areas in the city that are reserved Are there any areas in the city that are reserved Are there any areas in the city that are reserved Are there any areas in the city that are reserved for future office parks?for future office parks?for future office parks?for future office parks? It is true that Białystok does not yet have a major office market but there is no shortage of land for fu-ture large office parks in the city. The area of the planned new road infrastructure west of ul. Łomżyńska is perfect for the office function. The zoning plan for the area, which is now being worked on, provides for the office function as the main function of the area. Another large office complex is planned for the area of ul. Adama Mickiewicza, close to the new District Court and Białystok Prosecutor Office building.

LATEST LEASE DEALS IN BRIEF IT and consumer electronics products distributor Komputronik Komputronik Komputronik Komputronik has leased 10,000 sqm of warehouse space in a logistics park located at Komorniki near Poznań from industrial space developer Panattoni Europe. The developer will deliver the built-to suit space in February next year. The agreement be-tween Komputronik and Panattoni Europe has been signed for the period of five years and can be ex-tended by another five years.

Prologis Park Sochaczew Image: Prologis

Industrial space developer and operator Prologis has recently signed six agreements for the lease of a total of almost 94,000 sqm of warehouse space in the Warsaw area. The transactions are a mix of lease deal extensions, lease deal renewals and new lease deals. The two largest agreements involved the extension by Procter & Gamble Procter & Gamble Procter & Gamble Procter & Gamble of a lease deal at Prologis Park Sochaczew (35,000 sqm) and the extension by Viva Viva Viva Viva of a lease deal at Prologis Park Teresin (34,000 sqm).

Galeria Sudecka in Jelenia Góra Image: Echo Investment

A Jupi Park Jupi Park Jupi Park Jupi Park playground will be opened at the Gale-ria Sudecka shopping centre which Warsaw Stock Exchange-listed developer Echo Investment is cur-rently developing in Jelenia Góra in Lower Silesia. The tenant will take up almost 300 sqm of space at the mall. The Galeria Sudecka development, which

is currently leased out in almost 80%, will comprise 45,000 sqm of retail space. MSF Polska MSF Polska MSF Polska MSF Polska has leased 240 sqm of office space at the Atrium Plaza office building in downtown War-saw. Meanwhile, T.G.I. Friday’sT.G.I. Friday’sT.G.I. Friday’sT.G.I. Friday’s, which currently occupies almost 490 sqm of space at the building, has renewed its lease agreement. The Atrium Plaza building is located on Al. Jana Pawła II in the Cen-tral Business District of Warsaw and comprises 14,700 sqm of office space. The facility is owned by Peakside Polonia Management.

COMING & GOING

Kamil PiaskowskiKamil PiaskowskiKamil PiaskowskiKamil Piaskowski

Kamil Piaskowski has been appointed as the direc-tor of the B&B Toruń hotel in Toruń in north-western Poland. He previously worked at hotels in-cluding andel’s Hotel Łódź, Holiday Inn Warszawa Józefów and Radisson Blu Centrum Hotel Warsaw.

weekly newsletter # 016/ 2nd June 2014 / page 7

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



POLAND TRANSFORMED

TTTThe countryhe countryhe countryhe country’’’’s success s success s success s success story traces back story traces back story traces back story traces back to theto theto theto the Polish peoplePolish peoplePolish peoplePolish people

If there is one factor that accounts for Poland’s suc-cessful economic transformation more than others, then it is the country’s people, agreed participants at Poland Today’s ‘Poland Transformed’ confer-ence, held May 28 in Warsaw. “If you had to choose one driving force that was be-hind Poland’s economic success, it is its people,” said professor Witold Orłowski, chief economist at PwC. “Over the past 25 years, the economy has taken full advantage of its human capital. We have moved from 30% of the average European gross domestic product to just over 60% now.” The conference brought together leaders and opin-ion formers to tell the story of Poland’s transforma-tion to 50 journalists from around the world. The journalists are now well-equipped to relate Poland’s success story – and business’s prominent role in it – to their audiences on all continents, just ahead of the 25

th anniversary on June 4 of Poland’s first free

post-war elections, which marked the beginning of the end of communism in Europe. Some of the participants included: Senior Editor at The Economist Edward Lucas, Stratfor Founder and Chairman George Friedman, former Prime Minister Jan Krzysztof Bielecki, President of Con-federation Lewiatan Henryka Bochniarz, CEO of the Warsaw Stock Exchange Adam Maciejewski, CEO of GE in Europe Beata Stelmach, member of

the Prime Minister’s Economic Council Witold Or-łowski and Country Manager for Poland and the Baltic States Xavier Devictor. Issues discussed included the drivers behind Po-land’s success, business’s role in the Polish trans-formation, the challenges and opportunities facing the new generation of Polish business leaders, Po-land’s image abroad and Poland’s place in the global context. But no matter the discussion, participants continually came back to the strength, wit and per-severance of the Polish people that made the differ-ence.

Former Prime Minister Jan Krzysztof Bielecki said that

Poland’s early political reforms supported its economic reforms Image: Poland Today

For example, former Prime Minister Jan Krzysztof Bielecki, pointed out that political reforms made at the beginning of the transformation allowed dissat-isfied Poles to change their political leadership fre-quently – but perhaps surprisingly, this helped the country’s economic reforms. “The political reforms that were implemented were the strongest support for the economic reforms,” said Bielecki. “In the early days, we had more prime

ministers than a football team has players,” he quipped, adding that because leadership changed so frequently, it was difficult for any vested interest to establish itself as a dominant force.

Stratfor Founder and Chairman George Friedman (left) and The Economist Senior Editor Edward Lukas (right)

discussed Poland’s place in the global context with Po-land Today Editor Andrew Kureth (centre) Image: Poland Today

Despite Poland’s low position in innovation rank-ings, GE’s Beata Stelmach said that Polish compa-nies are actually quite innovative. “Poland does not have an innovation problem. We’ve been investing in technology the past 25 years, upgrading our solu-tions to international standards, closing the know-how gap,” she said. “Now we’re in the position to generate innovation from within and there are many companies that are already excelling at that,” she added. Though there are plenty of challenges ahead for the Polish economy, participants were overwhelmingly positive about the prospects for Poland going for-ward. The Economist’s Edward Lucas summed it up nicely: “Poland is finally the master of its own destiny,” he said.

by Andrew Kurethby Andrew Kurethby Andrew Kurethby Andrew Kureth For an extensive, in-depth series of reports on the conference,

please see next week’s issue of PT Urban Issues

Documents

PT Urban Issues No. 016