PT Urban Issues No. 023

No. 023 / 11th August 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

[email protected]

tel. +48 504 182 308

OFFICE Wisher Enterprise is now finishing construction on its Silver Tower Center project in Wrocław page 2

RESIDENTIAL Robyg has acquired land for another large-scale residential scheme in Warsaw page 3

BUILDING LAND The so-called Porta Varsovia site in Warsaw will be ready for sale next year page 3

LOGISTICS Panattoni Europe has launched construction on a new logistics park in Silesia page 4

FROM OUR PART-NERS A JLL-organized charity beach volleyball tournament has helped raise record sum page 4

INTERVIEW Poland Today talks to Jarosław Bator, managing director for real estate at Polish State Railways (PKP) page 5

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

COMING & GOING Kamil Pakosz, Colliers International page 6

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

The scheme will be developed on the site of a historic market hall Photo: Griffin Group

Griffin Group with building permit for Griffin Group with building permit for Griffin Group with building permit for Griffin Group with building permit for Hala Koszyki project in WarsawHala Koszyki project in WarsawHala Koszyki project in WarsawHala Koszyki project in Warsaw Real Estate investor Griffin Group will soon go ahead with the revitalization of the historic Hala Koszyki site in the Polish capital page 2

weekly newsletter # 023 / 11th August 2014 / page 2

RETAIL

Griffin with building Griffin with building Griffin with building Griffin with building permit for Hala permit for Hala permit for Hala permit for Hala Koszyki in WarsawKoszyki in WarsawKoszyki in WarsawKoszyki in Warsaw

The project will include 6,000 sqm of retail space Image: Griffin Group Real estate investor Griffin Group has obtained a building permit for its planned Hala Koszyki retail and office project in downtown Warsaw. Construc-tion on the scheme, which will be built by Erbud, is scheduled to launch later this month and finish in 2016. “We have finished negotiations with banks regarding the financing of the development. We are also in advanced talks concerning the lease of the office and retail space in the complex,” said Przemysław Krych, CEO of Griffin Group.

The Hala Koszyki investment, which is valued at approximately €80 million, will involve the recon-struction of an eponymous historic market hall that was built in the years 1906-1909 and was closed and dismantled in 2006. Griffin Group acquired the property in 2012. The project will comprise 6,000 sqm of retail space, as well as 15,000 sqm of office areas. Griffin Group plans to develop three boutique office buildings on the plots which neighbor the market hall site. The retail sector is one of the most important mar-kets for Griffin Group. The company already has a number of retail assets in its portfolio, including Dom Handlowy Renoma in Wrocław and Supersam in Katowice. Griffin Group is planning further ac-quisitions in the retail property market. “We are mostly interested in assets which boast of a long commercial tradition and are located in the centres of large cities,” said Krych.

OFFICE

Silver Tower Center Silver Tower Center Silver Tower Center Silver Tower Center project in Wrocław project in Wrocław project in Wrocław project in Wrocław nearing completionnearing completionnearing completionnearing completion

Real estate investor Wisher Enterprise is finishing construction on its Silver Tower Center office and hotel project in Wrocław, with the scheme sched-uled to open for business in a few weeks. Located in the downtown of the city, near the main railway station, and designed by the Maćków Pracownia Architektoniczna architectural studio, the Silver Tower Center development is expected to deliver a total of approximately 16,230 sqm of leasable space.

The mixed-use investment, whose value amounts to 113 million zloty, is being built by construction company Karmar and commercialized by Cushman & Wakefield and Knight Frank. It will include al-most 7,300 sqm of office space, nearly 4,800 sqm of hotel space, more than 1,600 sqm of conference space, as well as retail and service areas on the ground floor and the underground floor.

The scheme will include a three-star hotel Image: Wisher Enterprise A three-star ibis Styles Wrocław Centrum hotel will open for business in the building on October 1. Re-tail tenants at Silver Tower Center will include a Biedronka store which will occupy 1,100 sqm of space. “The commercialization process is still un-derway. At the moment, we are in talks regarding the lease of approximately 3,500 sqm of office and retail space,” said Aleksandra Sikora, the lease man-ager at Silver Tower Center. Kiev-based Wisher Enterprise develops real estate projects in the Eastern and Central and Eastern Eu-rope regions. The company is present in countries including Ukraine, Lithuania, Latvia, Estonia and Poland. In Poland, Wisher Enterprise is currently also developing an office scheme located on ul. Grzybowska in the Wola district of Warsaw which


will deliver almost 11,000 sqm of leasable space next year.

RESIDENTIAL

Robyg planning new Robyg planning new Robyg planning new Robyg planning new largelargelargelarge----scale scheme in scale scheme in scale scheme in scale scheme in WarsawWarsawWarsawWarsaw

Warsaw Stock Exchange-listed developer Robyg is planning a new large-scale residential project in the Polish capital which will comprise approximately 1,000 apartments, as well as around 6,000 sqm of commercial space. The company has just an-nounced the acquisition of 85,000 sqm of land in the Mokotów district of Warsaw for 68.5 million zloty. The land is located between ul. Puławska and Al. Sikorskiego, with Robyg not revealing the exact location.

Supervisory board president Oskar Kazanelson

Image: Robyg

Robyg is already active in the Wilanów, Żoliborz and Bemowo districts of the city. The purchase of the new plot is part of a strategy to acquire more

land in Warsaw in the upcoming years, said Oskar Kazanelson, supervisory board president at the company. Last year, Robyg adopted an investment plan which envisions the spending of up to 150 mil-lion zloty on the acquisition of new sites in Warsaw in the years 2014-2016. The company has recently purchased an almost 5,500-sqm plot in Żoliborz for around 10 million zloty. Robyg sold a total of more than 1,000 apartments in Warsaw and Gdańsk, the two cities in which it is ac-tive, in the first half of this year, which marked a 50% increase upon the same period of last year. This year, the company hopes to be able to offload a total of approximately 2,000 housing units if the current market trends continue. In the next few years, the developer wants to reach an annual apartment sales level of around 2,500, Kazanelson said. Robyg has recently announced the launching of apartment sales in a number of new residential pro-jects in Warsaw, construction on which is sched-uled to commence later this year. These are the Osiedle Park Królewski (first two phases) scheme in the Wilanów district and the Osiedle Kameralne (eighth phase) and Young City (fifth and sixth phase) developments in the Bemowo district.

BUILDING LAND

Porta Varsovia site in Porta Varsovia site in Porta Varsovia site in Porta Varsovia site in Warsaw to be ready for Warsaw to be ready for Warsaw to be ready for Warsaw to be ready for sale next yearsale next yearsale next yearsale next year

The so-called Porta Varsovia site in downtown Warsaw, one of the most attractive pieces of munic-

ipal land in the Polish capital, should be ready for sale next year, said Vice President of Warsaw Michał Olszewski. The municipal authorities want to sell the site, which is located on ul. Emilii Plater in the Central Business District of Warsaw, after se-curing a planning decision for it as the area is not covered by a zoning plan. Currently, the land in question houses school build-ings. It is expected that two connected high-rise buildings, rising up to 180 metres tall and mainly comprising office space, could be developed on the site. The plot is located in direct proximity to a piece of land on which Warsaw Stock Exchange-listed developer BBI Development is going to de-velop a high-rise office project called Roma Tower.

Vice President of Warsaw Michał Olszewski

Image: Warsaw City Hall

During the MIPIM international property fair in Cannes, France, earlier this year, Jan Budniak, di-rector of the property management bureau at War-saw City Hall, told Poland Today that a number of leading developers are interested in the Porta Varsovia site. Budniak added that the exact bid price for the attractively located plot is not known yet. However, he estimated that the Porta Varsovia


site could be valued at approximately 180 million zloty. Warsaw City Hall last year successfully carried out 18 tender procedures for the sale of municipal land, with the total revenue having amounted to almost 30.3 million zloty, Olszewski said. In H1 2014, plots valued at around 21.5 million zloty were sold, he added. More tenders are planned for the upcoming months, with the most attractive sites including plots on ul. Żeromskiego (Bielany district), on ul. Kujawska and ul. Cieszyńska (Mokotów), on ul. Miodowa (Śródmieście) and on ul. Siemieńskiego (Ochota), Olszewski said.

LOGISTICS

Panattoni Europe Panattoni Europe Panattoni Europe Panattoni Europe developing new developing new developing new developing new logistics park in Silesialogistics park in Silesialogistics park in Silesialogistics park in Silesia

Industrial space developer Panattoni Europe has launched construction on a new logistics project in Sosnowiec in Silesia which is expected to offer a to-tal of 90,000 sqm of space when fully developed. The scheme, which is located close to the A4 mo-torway, will comprise four buildings. The first phase of the development will deliver 21,900 sqm of space, including 900 sqm of office areas. Panattoni Park Sosnowiec is a speculative invest-ment that is being developed for many tenants, in response to the market trends in Silesia, said Robert Dobrzycki, managing partner at Panattoni Europe. Along with launching construction on the project, we started the commercialization of the space in

the scheme, with our offer being targeted at both local and international companies, Dobrzycki said.

The Panattoni Park Sosnowiec site

Image: Panattoni Europe

Panattoni Park Sosnowiec is the first development of Panattoni Europe in Sosnowiec. The developer already has logistics parks in the Silesian cities of Bielsko-Biała, Czeladź, Gliwice and Mysłowice. Panattoni Europe is currently developing more than 300,000 sqm of logistics space across Poland, in in-vestments including two large projects for Amazon located in Poznań and near Wrocław.

FROM OUR PARTNERS

Record sum collected Record sum collected Record sum collected Record sum collected during JLLduring JLLduring JLLduring JLL----organized organized organized organized charity eventcharity eventcharity eventcharity event

A record 187,000 zloty was collected during the 5th Charity Real Estate Beach Volleyball Tournament which JLL organized at the La Playa Music Bar in Warsaw on the last day of July. Poland Today was

one of the media patron of the event. The collected money has been donated to the Happy Kids founda-tion to help finance the construction of a new fami-ly-type children’s home in Dąbrówka near Zgierz (in Łódzkie Voivodship). A total of approximately 1,000 people came to the event. These included a combined 224 players from 32 teams competing in the volleyball matches and representing international and domestic real estate companies. After a head-to-head competition, a joint team of TriGranit and TPA Horwath won the tournament, while the teams of Prologis and MLP Group respectively came in second and third. The 5th edition of the Charity Real Estate Beach Volleyball Tournament was a record one, both in terms of the number of the participating and sup-porting companies and the amount of the collected money, said Tomasz Trzósło, managing director at JLL Poland. “We are delighted with this result and wish to thank all the players, partners, sponsors and guests for their participation, as well as for their support and cooperation. We hope to meet you all next year,” Trzósło said.

The money will help build a children’s home

Image: JLL


INTERVIEW

PKP to select PKP to select PKP to select PKP to select Warszawa Główna Warszawa Główna Warszawa Główna Warszawa Główna investor later this yearinvestor later this yearinvestor later this yearinvestor later this year

Poland Today talks to Jarosław Bator, managing di-rector for real estate at Polish State Railways (PKP), about the redevelopment of the former Warszawa Główna railway station in Warsaw. The property in question is located on ul. Towarowa in the quickly developing Wola district of the Polish capital. It is expected that a new large-scale real estate project will be developed on the site in the upcoming years. Poland Today: Poland Today: Poland Today: Poland Today: PKP has recently aPKP has recently aPKP has recently aPKP has recently annnnnounced a list nounced a list nounced a list nounced a list of developers interested in the redeveloof developers interested in the redeveloof developers interested in the redeveloof developers interested in the redeveloppppment of ment of ment of ment of the former Warszthe former Warszthe former Warszthe former Warszawa Główna railway station in awa Główna railway station in awa Główna railway station in awa Główna railway station in Warsaw. When will the process of sWarsaw. When will the process of sWarsaw. When will the process of sWarsaw. When will the process of seeeelecting lecting lecting lecting a a a a private parprivate parprivate parprivate parttttner for the invesner for the invesner for the invesner for the investtttment fiment fiment fiment finnnnish?ish?ish?ish? Jarosław Bator: Jarosław Bator: Jarosław Bator: Jarosław Bator: Preliminary cooperation offers have been made by as many as six entities. In the next phase of the procedure selected investors will be asked to submit binding offers. This will be fol-lowed by negotiations. We expect that by the end of this year we will select one investor with whom we will arrange in detail the terms on which the in-vestment will be carried out. Does PKP havDoes PKP havDoes PKP havDoes PKP have, at this early stage, any pree, at this early stage, any pree, at this early stage, any pree, at this early stage, any preffffeeeer-r-r-r-ences as to the shape of the planned project and ences as to the shape of the planned project and ences as to the shape of the planned project and ences as to the shape of the planned project and the type of the type of the type of the type of the the the the space that will be developed on space that will be developed on space that will be developed on space that will be developed on the site of the former raithe site of the former raithe site of the former raithe site of the former raillllway station?way station?way station?way station? We have not pointed to any preferable way of de-veloping the site. However, we have clearly indicat-

ed the limitations related to the existing and planned railway infrastructure. While selecting the private partner, we will take into account both ar-chitectural blueprints and the benefits that the pro-ject will bring to PKP. It is important that the scheme be integrated with the neighbouring urban space and meet the needs of the inhabitants of War-saw.

Poland Today talks to: Jarosław Bator, managing director for real estate at Polish State Rail-ways (PKP) You have consulted You have consulted You have consulted You have consulted international international international international propropropropppperty eerty eerty eerty ex-x-x-x-perts about the perts about the perts about the perts about the planned planned planned planned prprprprooooject. What do they ject. What do they ject. What do they ject. What do they

say about the devesay about the devesay about the devesay about the devellllopment potential of the foopment potential of the foopment potential of the foopment potential of the for-r-r-r-mer Warszmer Warszmer Warszmer Warszaaaawa Główna railway stationwa Główna railway stationwa Główna railway stationwa Główna railway station site?site?site?site? The potential is huge due to factors including the location of the site. The analysis prepared by our business advisor made us make the decision to de-velop the site in cooperation with an external part-ner. Our experience shows that the model works very well. New railway stations and shopping cen-tres in Katowice and Poznań have been developed in this way. Construction will soon launch on a new Warsaw West railway station where office build-ings will also be developed at a later stage. You have receYou have receYou have receYou have recently finished the procntly finished the procntly finished the procntly finished the proceeeedure of sdure of sdure of sdure of se-e-e-e-lecting a private partner for an investment ilecting a private partner for an investment ilecting a private partner for an investment ilecting a private partner for an investment in-n-n-n-volving the redevelopment of the Warszawa volving the redevelopment of the Warszawa volving the redevelopment of the Warszawa volving the redevelopment of the Warszawa Gdańska raiGdańska raiGdańska raiGdańska raillllway stway stway stway staaaation. How tion. How tion. How tion. How are theare theare theare the preparpreparpreparprepara-a-a-a-tions to launch the project going?tions to launch the project going?tions to launch the project going?tions to launch the project going? Work is currently underway on a detailed architec-tural and urban planning concept for the site, as well as on the fulfillment of the conditions which are necessary for the investment agreement to enter into force. PKP has aPKP has aPKP has aPKP has already redeveloped a nulready redeveloped a nulready redeveloped a nulready redeveloped a nummmmber of raiber of raiber of raiber of rail-l-l-l-way station across Polandway station across Polandway station across Polandway station across Poland in coopein coopein coopein cooperrrration with ation with ation with ation with private partners. Where are you planning private partners. Where are you planning private partners. Where are you planning private partners. Where are you planning to cato cato cato car-r-r-r-ry out more investments of this kiry out more investments of this kiry out more investments of this kiry out more investments of this kinnnndddd???? More investments of this kind are planned for cities including Kraków, Gdynia and Wrocław. For small-er cities we are planning the so-called Small Devel-oper Projects (Małe Projekty Deweloperskie) which will involve the development of plots lying adjacent to railway stations. Such plots are very good sites for retail developments. At the beginning, the pro-jects will be developed in seven cities including Mińsk Mazowiecki, Konin, Włocławek, Oświęcim and Dębica. Small Developer Projects are meant to


revitalize railway station areas, bringing benefits to both investors and the local communities.

JAROSŁAW BATOR Before joining PKP, Jarosław Bator worked for eleven years for Ernst & Young where he dealt with property appraisals. He is a licensed appraiser and member of the Royal Institution of Chartered Surveyors.

LATEST LEASE DEALS IN BRIEF

Gate One Business Park in Warsaw Image: Cushman & Wakefield

P4P4P4P4, the owner of the telecom operator Play, has leased almost 3,250 sqm of warehouse and office space at the Gate One Business Park in Warsaw. Cushman & Wakefield represented the tenant in the lease negotiations. The Gate One Business Park is located on ul. Działkowa in the Włochy district of the Polish capital. Owned by Raiffeisen Immobilien, the facility comprises a total of 18,780 sqm of GLA and is currently leased out in 76%. Sporting goods retailers Decathlon Decathlon Decathlon Decathlon and 4F 4F 4F 4F will open their stores at the Atrium Koszalin shopping

centre in Koszalin in northern Poland. The tenants have respectively leased 1,600 sqm and 100 sqm of space at the mall. The Atrium Koszalin shopping centre comprises over 55,000 sqm of GLA and houses 127 stores and points of services. The largest tenants at the mall include Tesco, Castorama and Media Markt. PKO Bank Polski PKO Bank Polski PKO Bank Polski PKO Bank Polski has leased more than 1,100 sqm of service space at building A of the Dominikański office complex which developer Skanska Property Poland is now developing in downtown Wrocław. The building, which is scheduled to be delivered in ten months, is currently leased out in approximately 30%. PKO Bank Polski has also taken up almost 2,000 sqm of office space at building B of the Green Horizon complex developed by Skanska Property Poland in Łódź.

Dominikański in Wrocław Image: Skanska Property Poland

Logistics operator RRRRiiiico Lco Lco Lco Loooogigigigisssstics tics tics tics has recently leased almost 1,250 sqm of warehouse and office space at the Warsaw Distribution Center in the Polish capital. Cushman & Wakefield represented the tenant in the lease negotiations. The Warsaw Distribution Center is located on ul. Szyszkowa in the Włochy district. It comprises five buildings of-fering a total of 35,000 sqm of leasable space and is

owned by a fund managed by CBRE Global Inves-tors.

Warsaw Distribution Center Image: Cushman & Wakefield

COMING & GOING

Kamil PakoszKamil PakoszKamil PakoszKamil Pakosz

Kamil Pakosz has recently been appointed as the new regional manager of Colliers International in Wrocław. He has replaced Daria Dudek who no longer works for the company. Before joining Colli-ers International, Pakosz worked for the Wrocław Agglomeration Development Agency where he was responsible for advising on planning and imple-menting foreign investments.

weekly newsletter # 023/ 11th August 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


Documents

PT Urban Issues No. 023