PT Urban Issues No. 029

No. 029 / 29th September 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

[email protected]

tel. +48 504 182 308

OFFICE The competition in the office market in Warsaw is now creating new opportunities for public sector tenants page 2

RETAIL The Centrum Galardia shopping centre in Starachowice will open for business on October 15 page 3

INVESTMENT MAR-KET There is a shortage of good investment product in the commercial property market in Poland page 3

RESIDENTIAL Atal has launched sales of apartments in new residential projects in Warsaw and Wrocław page 3 Robyg will launch construction on a new scheme in the Polish capital in Q1 next year page 4

INTERVIEW Poland Today talks to Szymon Wojciechowski, architect and partner at the APA Wojciechowski Architekci architectural studio page 4

LATEST LEASE DEALS IN BRIEF Recent lease transactions in the office, retail and warehouse sectors page 5

COMING & GOING Katarzyna Krokosińska, JLL page 6

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

The project will comprise 12,500 sqm of leasable space Photo: RE project development

Raiffeisen EvolutionRaiffeisen EvolutionRaiffeisen EvolutionRaiffeisen Evolution projprojprojproject ect ect ect developmendevelopmendevelopmendevelopment lays cornerstonet lays cornerstonet lays cornerstonet lays cornerstone for new for new for new for new shopping centre in Warsawshopping centre in Warsawshopping centre in Warsawshopping centre in Warsaw Developer and investor Raiffeisen Evolution project develop-ment has laid the cornerstone for its FERIO Wawer shopping centre investment which will involve the redevelopment of a historic post-industrial site in eastern Warsaw page 2

weekly newsletter # 029 / 29th September 2014 / page 2

OFFICE

New opportunities New opportunities New opportunities New opportunities emerging for public emerging for public emerging for public emerging for public sector occupierssector occupierssector occupierssector occupiers

The high level of competition in the office market in Warsaw now creates exceptional opportunities for public sector institutions to move to modern office buildings, according to a recent report by CBRE. Public sector occupiers are usually ready to accept a slightly lower office space standard than private companies and are thus ideal tenants for older B-class buildings which have to compete with the newly delivered stock and often offer relatively low rents, the study said.

A public sector entity has recently leased almost 6,000 sqm at Gdański Business Center in Warsaw Image: HB Reavis From the point of view of property owners, public sector occupiers are an attractive group of tenants as they are financially stable and usually sign long-

term lease deals, said Daniel Bienias, senior direc-tor, head of tenant representation, office agency, at CBRE in Poland. In Western Europe, the leasing of modern office space by public sector entities has al-ready become a standard practice. The trend is well visible in cities including Brussels, Strasbourg, Par-is, Amsterdam and Berlin, the CBRE report said. In Poland, a growing interest in modern office space on the part of the public sector has been seen for three years now. CBRE experts estimate that public sector occupiers will account for the lease of approximately 70,000 sqm of space this year. Major tenants from the sector already include the Civil Aviation Authority (ULC), the General Directorate for National Roads and Motorways (GDDKiA) and the Institute of National Remembrance (IPN). A large public sector institution, whose name has not been revealed, has recently leased almost 6,000 sqm of office space at the Gdański Business Center complex which HB Reavis is developing in Warsaw. The transaction evidences a new trend in the Polish property market, consisting in public sector institu-tions moving from old facilities to new class-A of-fice buildings, the developer said in a statement.

RETAIL

Cornerstone laid for Cornerstone laid for Cornerstone laid for Cornerstone laid for FERIO Wawer project FERIO Wawer project FERIO Wawer project FERIO Wawer project in Warsawin Warsawin Warsawin Warsaw

Developer and investor Raiffeisen Evolution project development last week held a cornerstone-laying ceremony at the construction site of its FERIO Wawer shopping centre project in Warsaw. The

scheme is being developed on a historic post-industrial site located in the Międzylesie neigh-bourhood of the Wawer district of the Polish capital and will comprise 12,500 sqm of leasable space. The FERIO Wawer development has been designed by the renowned APA Kuryłowicz & Associates ar-chitectural studio and is being built by construction company PORR Polska. The investment is sched-uled to be completed in the autumn of next year. The project has already been commercialized in approximately 65%, with its tenants including Alma Market, H&M, Carry, Calypso Fitness, Rossmann, TB Bowling and Bilard Club, Pepco and WellMed.

The scheme is now approximately 65% leased out Image: RE project development Founded in 2003, Vienna-based Raiffeisen Evolu-tion project development is active in both the resi-dential and commercial property sectors in Austria and the Central and Eastern Europe region coun-tries. The company has been developing its FERIO chain of shopping centre schemes in Poland since 2005, with the developer having already opened fa-cilities in Wrocław, Puławy, Legnica and Konin.


RETAIL

Centrum Galardia mall Centrum Galardia mall Centrum Galardia mall Centrum Galardia mall in Starachowice about in Starachowice about in Starachowice about in Starachowice about to open for businessto open for businessto open for businessto open for business

Investors NBGI Private Equity and Balmain Asset Management are now finishing work on their Cen-trum Galardia shopping centre project in Starachowice in southern Poland, with the scheme set to open for business on October 15. The devel-opment has already got an occupancy permit. The tenants of the mall will be furnishing their stores in the upcoming weeks, said Agnieszka Wójcik, a pro-ject manager at Balmain Asset Management.

Anchor tenants will include a Tesco hypermarket Image: Balmain Asset Management The Centrum Galardia investment, whose value is estimated at approximately €25 million, is located on ul. Kardynała Wyszyńskiego in the eastern part of Starachowice and will comprise 18,000 sqm of leasable space. The largest tenants at the shopping centre will include a Tesco hypermarket and a He-lios multi-screen cinema which will respectively

occupy 6,200 sqm and 1,330 sqm of space at the mall. NBGI Private Equity is a European private equity and venture capital investment company which currently manages a total of approximately €900 million across a number of investment funds. Bal-main Asset Management is a co-investor and multi-disciplined service provider, focused on European retail and leisure assets. The company established its presence in Poland in 2005 via the acquisition of the Galeria Pomorska shopping centre in Byd-goszcz.

INVESTMENT MARKET

Good product Good product Good product Good product increasingly in short increasingly in short increasingly in short increasingly in short supplysupplysupplysupply

The prospects for the commercial real estate in-vestment market in Poland remain positive, with new property investors planning to allocate their capital in the country in the upcoming years. How-ever, while investor interest is there and bank fi-nancing is becoming more available, good product in Poland is increasingly difficult to find, said par-ticipants in the latest edition of the annual Property Forum conference, held in Warsaw last week. Mieczysław Godzisz, president of the management board at Hines Polska, said that property in Poland is now getting more and more expensive and that fewer and fewer prime assets are on sale. The capi-tal is there but the availability of good commercial property is a problem, argued Michał Koślacz, member of the management board at Capital Park.

Michał Sternicki, general director at Aareal Bank in Poland, said there will soon be more demand for non-prime assets. Godzisz said he is moderately optimistic about the prospects for the commercial property investment market in Poland in the near future. Its perfor-mance will ultimately depend on the situation in Western Europe and the United States, he noted. In the western markets, everybody is now wondering whether property prices have already reached the peak. There are concerns that the market could again become overheated, Godzisz said. According to Damian Grzywacz, senior manager, business development, at Penta Investments, prop-erty in Poland is a safe bet. We are planning invest-ments in the country, he said. The participants in the conference pointed to the growing investment activity of local investors in Poland. This will have a positive impact on the stability of the market, Godzisz said.

RESIDENTIAL

Atal Atal Atal Atal launching new launching new launching new launching new projects projects projects projects in Warsaw, in Warsaw, in Warsaw, in Warsaw, WrocławWrocławWrocławWrocław

Developer Atal has started selling apartments in its planned Oaza Wilanów project in Warsaw. The scheme is the third development to have been launched by the company in the Polish capital this year. Located at the intersection of Al. Rzeczypospolitej and Al. Wilanowska in the Wilanów district of Warsaw, the Oaza Wilanów in-vestment will comprise a total of 456 housing units


when fully developed. The first phase of the project will deliver 91 homes in Q3 2016. Meanwhile, Atal has recently also launched sales of apartments in its planned Dmowskiego 19 scheme in Wrocław. The development is the 13th investment of the company in the city in which the developer is currently selling housing units in nine projects. The Dmowskiego 19 scheme will be located in the Kępa Mieszczańska neighbourhood of Wrocław and will comprise 173 apartments. The development is scheduled to be completed towards the end of next year.

Oaza Wilanów will deliver a total of 456 apartments Image: Atal One of the largest residential developers in Poland, Atal has been active in the market for more than 20 years now. To date, the company has offloaded over 4,000 apartments across the country. In December last year, Atal debuted on the Catalyst bond market in Warsaw, issuing bonds valued at more than 25 million zloty. The company also wants to debut on the main market of the Warsaw Stock Exchange in the future. Atal is currently involved in a total of 18 invest-ments in locations including Kraków, Katowice,

Łódź, Wrocław and Warsaw. In the latter city, the developer has recently launched the Nowe Bemowo project in the Bemowo district. At the beginning of this month, the company announced that it would launch sales of a combined 1,300 new apartments in Warsaw, Kraków and Wrocław before the end of this year.

RESIDENTIAL

Robyg about to start Robyg about to start Robyg about to start Robyg about to start building new Warsaw building new Warsaw building new Warsaw building new Warsaw schemeschemeschemescheme

Warsaw Stock Exchange-listed developer Robyg is going to launch construction on its planned Modern Żoliborz Residence project in the Polish capital in the first quarter of next year. The company has just started selling apartments in the scheme which will comprise approximately 140 housing units and is scheduled to be completed in the third quarter of 2016. The Modern Żoliborz Residence investment will be located in the area of ul. Przasnyska and ul. Rydygiera in the Żoliborz district of Warsaw where Robyg is already building a residential development called City Apartments. The project, construction on which is now nearing completion, will comprise a total of approximately 1,200 apartments when ful-ly developed. Robyg is currently selling homes in the last phase of the scheme. 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. By

the end of the year, the company hopes to be able to sell a total of approximately 2,000 housing units if the current market trends continue, said Oscar Kazanelson, supervisory board president at Robyg.

The development will be ready in Q3 2016 Image: Robyg Last year, Robyg adopted an investment plan which envisions the spending of up to 150 million zloty in the years 2014-2015 on the acquisition of sites for future developments in Warsaw. The company, which is currently developing investments in the Wilanów, Żoliborz and Bemowo districts of War-saw, has recently acquired land for a new large-scale project in the Mokotów district of the city.

INTERVIEW

Work on a new office Work on a new office Work on a new office Work on a new office tower in Wtower in Wtower in Wtower in Warsaw arsaw arsaw arsaw getting underwaygetting underwaygetting underwaygetting underway

Poland Today talks to Szymon Wojciechowski, ar-chitect and partner at the APA Wojciechowski


Architekci architectural studio, about a new sky-scraper project in Warsaw and the latest trends in the designing of high-rise buildings. PPPPooooland land land land Today: Today: Today: Today: You are currently You are currently You are currently You are currently ddddeeeesigsigsigsignnnninginginging a new a new a new a new skyscraperskyscraperskyscraperskyscraper project project project project in Warsaw for developer in Warsaw for developer in Warsaw for developer in Warsaw for developer Karimpol. What will the Karimpol. What will the Karimpol. What will the Karimpol. What will the schemeschemeschemescheme look like and at look like and at look like and at look like and at which which which which stage of the design and administrative stage of the design and administrative stage of the design and administrative stage of the design and administrative process is it?process is it?process is it?process is it? Szymon Wojciechowski: Szymon Wojciechowski: Szymon Wojciechowski: Szymon Wojciechowski: The first phase of the project will involve the construction of a tower called Skyliner which will feature more than 39,000 sqm of leasable space and will have a total height of 195 metres. Ultimately, two slender towers with a sophisticated geometry will be developed. On the lower floors of the podium of the towers there will be 2,900 sqm of retail and service areas. Preliminary construction work has already started – some of the slurry walls are now being built and the existing on-site installations are being moved. We have applied for a building permit for the first phase of the de-velopment. Are you now working on any other highAre you now working on any other highAre you now working on any other highAre you now working on any other high----rise prrise prrise prrise pro-o-o-o-jectjectjectjects in Poland? Yos in Poland? Yos in Poland? Yos in Poland? You prevu prevu prevu previiiiously dously dously dously deeeesigned a sksigned a sksigned a sksigned a sky-y-y-y-scraperscraperscraperscraper called Licalled Licalled Licalled Libbbberty Tower in Warsaw erty Tower in Warsaw erty Tower in Warsaw erty Tower in Warsaw –––– is is is is work on that scheme work on that scheme work on that scheme work on that scheme prprprprooooceedingceedingceedingceeding???? We are now involved in several high-rise projects – three in Warsaw and one in Silesia. However, those are at an early planning stage and we are not al-lowed to speak about them. Generally speaking, it seems that the already designed and under-construction buildings will satisfy the demand for office space in Warsaw in the next few years and we do not expect many more spectacular investments in the near future. We are working on high-rise pro-jects in Russia. Work on Liberty Tower is on hold – the investor is now in the process of securing fi-nancing and is in talks with potential partners.

Poland Today talks to: Szymon Wojciechowski, architect and partner at APA Wojciechowski Architekci How much is the How much is the How much is the How much is the designingdesigningdesigningdesigning of offof offof offof office toice toice toice towwwwers ers ers ers didididif-f-f-f-ferenferenferenferent from the designing of t from the designing of t from the designing of t from the designing of “stan“stan“stan“standdddardardardard” of” of” of” office fice fice fice building and office pbuilding and office pbuilding and office pbuilding and office pararararks? What are some of the ks? What are some of the ks? What are some of the ks? What are some of the mainmainmainmain chachachachalllllenges ilenges ilenges ilenges innnnvolved in work on volved in work on volved in work on volved in work on skyscraskyscraskyscraskyscrap-p-p-p-ers?ers?ers?ers? The main challenge in the designing of high-rise buildings in Poland is coming up with an attractive, dynamic and elegant building shape that will com-ply with the “right to light” regulations. In densely developed areas, the several hundred metres-long shadow cast by skyscrapers affects thousands of apartments – each of them has to be analyzed to make sure that they have enough access to sunlight. We already have, and were involved in work on, special computer software which helps to do such analyses, but this still means a lot of work and is a

major challenge for architects. A high-rise building remains part of the skyline of a city for many, many years… The other technical aspects are only slightly different from those seen in the designing of “standard” buildings. The statics of the building is different – we have to take into account the wind forces, the optimization of the elevator core and the right location of the technical floors. Have the trends in the Have the trends in the Have the trends in the Have the trends in the designingdesigningdesigningdesigning of skof skof skof skyyyyscrascrascrascrappppers ers ers ers changchangchangchanged significantlyed significantlyed significantlyed significantly over theover theover theover the last few years?last few years?last few years?last few years? Have there appeared any new solutions which Have there appeared any new solutions which Have there appeared any new solutions which Have there appeared any new solutions which have already become a standard in the mahave already become a standard in the mahave already become a standard in the mahave already become a standard in the marrrrket?ket?ket?ket? There is the emphasis on green solutions which leads to the introduction of greenery to the higher floors, the use of natural ventilation systems and renewable energy sources (heat pumps, wind, pho-tovoltaic elements) and the introduction of lighting and shade control. There is also more and more emphasis on the creation of a micro-climate inside the building so that the building users can feel well, have access to natural light, the view from the win-dow and an efficient and friendly working area. The ground floors are becoming more open – the city flows through skyscrapers, rather than passes by them.

LATEST LEASE DEALS IN BRIEF AGFA Graphics AGFA Graphics AGFA Graphics AGFA Graphics has leased approximately 1,400 sqm of office space at the Oxygen Park office pro-ject in Warsaw. The company is going to move into its new premises within the next few weeks. The Oxygen Park scheme was developed by Yareal Polska and is located in the Włochy district of the Polish capital. The development comprises two buildings and offers a total of 18,400 sqm of leasable space.


Galeria Neptun in Starogard Gdański Image: Cushman & Wakefield

Three new tenants – PEPCOPEPCOPEPCOPEPCO, Zoo KarinaZoo KarinaZoo KarinaZoo Karina and Jupi Jupi Jupi Jupi ParkParkParkPark – have leased a total of more than 1,000 sqm of retail space at the Galeria Neptun retail project which is now being developed in Starogard Gdański in northern Poland. The scheme will comprise around 24,000 sqm of space and is scheduled for completion in spring next year. A company called Galeria Neptun is the developer of the investment which is being commercialized by Cushman & Wakefield.

Galeria Sudecka in Jelenia Góra

Image: Echo Investment

Five tenants – Bank PekaoBank PekaoBank PekaoBank Pekao, Bain & Company PBain & Company PBain & Company PBain & Company Po-o-o-o-landlandlandland, PayPal PolskaPayPal PolskaPayPal PolskaPayPal Polska, Panattoni WesternPanattoni WesternPanattoni WesternPanattoni Western Poland Poland Poland Poland

ManagementManagementManagementManagement and StarbucksStarbucksStarbucksStarbucks – have recently pro-longed their lease agreements or leased additional space at the Warsaw Financial Center office tower in downtown Warsaw. The companies signed deals for a total of almost 1,550 sqm of office and retail space. The Warsaw Financial Center is owned by Allianz Real Estate and Curzon Capital Partners III, and comprises 50,000 sqm of leasable space.

Warsaw Financial Center

Image: Advanced Public Relations

Bufab Poland Bufab Poland Bufab Poland Bufab Poland has signed a lease agreement for 1,700 sqm of warehouse space and 400 sqm of office areas at the Panattoni Park Gdańsk logistics com-plex in Tri-city. The transaction was brokered by JLL. Panattoni Park Gdańsk is conveniently located close to the A1 motorway, and the port and deepwater container terminal of Gdańsk. The com-plex is currently being expanded by 17,500 sqm. Komfort Komfort Komfort Komfort has signed a letter of intent with Warsaw Stock Exchange-listed developer Echo Investment regarding the opening of a 700-sqm store at the Galeria Sudecka retail project in Jelenia Góra in

Lower Silesia. The scheme will comprise 50,000 sqm of retail space. It will include a shopping cen-tre, anchored by an Auchan hypermarket, and a re-tail park whose tenants will include a Leroy Merlin DIY store.

COMING & GOING

Katarzyna KrokosińskaKatarzyna KrokosińskaKatarzyna KrokosińskaKatarzyna Krokosińska

Katarzyna Krokosińska has recently joined the of-fice agency and tenant representation team of JLL in Poland as a senior consultant specialized in the Wrocław office market. She is based at the Wrocław office of the company. Krokosińska grad-uated from the Wrocław University of Economics, where she studied international relations, and also finished post-graduate studies in property apprais-al. She previously worked at the Wrocław Agglom-eration Development Agency.

weekly newsletter # 029/ 29th September 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. 029