PT Urban Issues No. 38

No. 038 / 8th December 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

[email protected]

tel. +48 504 182 308

BUILDING LAND Griffin Group has ac-quired more than 15,000 sqm of land in the Rondo Daszyńskiego area of Warsaw page 2

INDUSTRIAL Panattoni Europe is now developing a $54-million factory for GE in Bielsko-Biała in southern Poland page 3

LOGISTICS MLP Group will develop a total of around 45,000 sqm of warehouse space in two locations for Piotr i Paweł page 3

RESIDENTIAL Robyg has launched its Park Wola Residence residential scheme in the Wola district of Warsaw page 4 Dom Development is further expanding its Wilno residential investment in the Polish capital page 4

INTERVIEW Poland Today talks to Anna Szmeja-Kroplewska, general director of the Polish Council of Shopping Centres page 5

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

COMING & GOING Justyna Williams, JLL page 6

FACTS &FIGURES Largest completions, largest lease deals and rents in the commercial property market in 2013-2014 page 7

The new project will neighbour the already completed Mokotów Nova scheme Photo: Ghelamco

Ghelamco secures Ghelamco secures Ghelamco secures Ghelamco secures €€€€34.1 m34.1 m34.1 m34.1 million in bank illion in bank illion in bank illion in bank financifinancifinancifinancing for ng for ng for ng for new new new new Warsaw office projectWarsaw office projectWarsaw office projectWarsaw office project Developer Ghelamco has recently secured €34.1 million and ten million zloty in bank financing from PKO Bank Polski for its under-construction Wołoska 24 office project in the Mokotów district of Warsaw. page 2

weekly newsletter # 038 / 8th December 2014 / page 2

BUILDING LAND

Griffin Group acquires Griffin Group acquires Griffin Group acquires Griffin Group acquires 15,000 sqm of land in 15,000 sqm of land in 15,000 sqm of land in 15,000 sqm of land in downtown Warsawdowntown Warsawdowntown Warsawdowntown Warsaw

Real estate investor Griffin Group has recently an-nounced the acquisition of a total of over 15,000 sqm of developed land in Warsaw from Zakłady Graficzne “Dom Słowa Polskiego,” with the trans-action expected to be finalized next month. The land in question is located on ul. Miedziana in the Wola district of the Polish capital and neighbours a number of plots of land which the company ac-quired in the area earlier this and last year. In December last year, Griffin Group bought the Jupiter shopping centre site on ul. Towarowa from Catalunya Banc. In May this year, the company ac-quired over 16,000 sqm of developed land on ul. Pańska and on ul. Miedziana from Zakłady Graficz-ne “Dom Słowa Polskiego.” Due to the latest acqui-sition, whose value has not been disclosed, Griffin Group already owns 5.5 hectares of land in this area of Warsaw. The company sees investment potential in the area and consistently builds its portfolio there, said Piotr Fijołek, partner at Griffin Real Es-tate. He added that Griffin Group now owns the largest amount of building land in the business centre of Warsaw which can be used for commercial devel-opment. The company is currently considering fur-ther acquisitions in the area, Fijołek said. Griffin Group has not yet revealed what it is going to de-velop on the recently acquired land. After the ac-quisition of the Jupiter mall, the company said that

it is considering a number of possible options with regard to the future redevelopment of the site. The Jupiter shopping centre will continue to oper-ate till the end of 2017. Property market experts ex-pect that a new large-scale shopping centre or a mixed-use complex with a number of mid-rise buildings featuring office and residential space could be developed in the location. The sites ac-quired by Griffin Group are located close to Daszyńskiego Roundabout where a stop of the sec-ond subway line will soon be completed. Several major developers, including Ghelamco, Hines and Skanska Property Poland, have large office projects in the area. Established in 2006, Griffin Group has a number of retail properties across Poland, including Hala Koszyki in Warsaw, Dom Handlowy Renoma in Wrocław and Supersam in Katowice, in its portfo-lio. The company also owns building land and office assets. Earlier this year, Griffin Group acquired the Nordic Park, Bliski Office Center and Company House II office buildings in Warsaw, as well as the Centrum Biurowe Lubicz office complex in Kraków.

OFFICE

Ghelamco with Ghelamco with Ghelamco with Ghelamco with €34.1€34.1€34.1€34.1----million loan for new million loan for new million loan for new million loan for new Warsaw developmentWarsaw developmentWarsaw developmentWarsaw development

Developer Ghelamco has recently secured €34.1 million and ten million zloty in bank financing from PKO Bank Polski for Wołoska 24 – the latest office project of the company in Warsaw. Construction on

the scheme, which will comprise approximately 21,000 sqm of office space and around 800 sqm of retail and service areas, launched in August this year and is scheduled to finish towards the end of the first quarter of 2016.

The project neighbors the Mokotów Nova scheme Image: Ghelamco The Wołoska 24 development is located on ul. Wołoska in the Służewiec Przemysłowy neigh-bourhood of the Mokotów district of Warsaw, next to the existing Mokotów Nova office investment which was also developed by Ghelamco. The devel-oper has recently signed the first tenant for the Wołoska 24 project – the full-service leasing com-pany Arval Service Lease Polska is going to take up approximately 2,400 sqm of office space at the scheme. According to Colliers International data, there are currently almost 70 completed office projects in Służewiec Przemysłowy which comprise a total of more than 900,000 sqm of leasable space. This ac-counts for over 20% of the total office stock in the Warsaw, said Ewa Grudzień, analyst, research and consultancy, at the company. She added that 138,000 sqm of space is now under construction in


the neighbourhood, while a further 270,000 sqm is being planned. One of the largest office developers in Poland in terms of the volume of completed office space, Ghelamco is known for completed projects includ-ing Senator and T-Mobile Office Park in Warsaw. The company is currently developing the Warsaw Spire scheme in the Wola district of the Polish capi-tal which will deliver approximately 100,000 sqm of leasable space. Planned developments include an investment located on the Gdański railway station site in the city. Next year, Ghelamco could start developing the planned Sienna Towers office and retail scheme that will be located close to the Warsaw Spire site and will deliver around 100,000 sqm of leasable space, financial director Jarosław Jukiel has recent-ly told Poland Today. The company has already se-cured a building permit for the development. Ghelamco wants to launch construction on the in-vestment after at least 50% of the space in the War-saw Spire project has been commercialized, which is expected to happen in a few months, Jukiel add-ed.

INDUSTRIAL

Panattoni developing Panattoni developing Panattoni developing Panattoni developing $54$54$54$54----million GE factory million GE factory million GE factory million GE factory in southern Polandin southern Polandin southern Polandin southern Poland

Industrial space developer Panattoni Europe is go-ing to develop a 45,000-sqm factory and customer experience centre project in Bielsko-Biała in south-ern Poland for GE. The scheme is valued at $54 mil-

lion. Panattoni Europe and GE have recently held a breaking-ground ceremony at the construction site of the planned development which is scheduled to become operational by the end of next year.

The project will comprise 45,000 sqm of space Image: GE The agreement between Panattoni Europe and GE is one of the largest lease transactions regarding an industrial facility in the Bielsko-Biała region, said Beata Hryniewska, head of BTS and business devel-opment at the industrial and logistics team of CBRE. CBRE represented GE in the transaction, providing its client with design and construction advice, as well as with project monitoring and man-agement services. The ground-breaking ceremony crowned a long process of preparations and nego-tiations, Hryniewska said. Panattoni has been active in the Central and East-ern Europe region since 2005. The company has al-ready developed a total of more than two million sqm of industrial space in Poland and the Czech Republic. The developer has completed a number of major built-to-suit investments, with its clients in-cluding Amazon, Arvato Services Polska, Coty Cosmetics, DSV, H&M, Intermarché, Leroy Merlin, ND Logistics, Still, Schenker and Tesco.

In the first half of this year, Panattoni Europe com-pleted a total of 108,000 sqm of space, in projects including a 50,000-sqm facility for Castorama Pol-ska and a 33,600-sqm facility for Polaris. The com-pany has recently delivered a combined 246,000 sqm of built-to-suit space for Amazon, in two dis-tribution parks located in Bielany Wrocławskie near Wrocław and in Sady near Poznań.

LOGISTICS

MLP to develop 45,000 MLP to develop 45,000 MLP to develop 45,000 MLP to develop 45,000 sqm of warehouse sqm of warehouse sqm of warehouse sqm of warehouse space for grocery chainspace for grocery chainspace for grocery chainspace for grocery chain

Warehouse space developer MLP Group will de-velop a total of approximately 45,000 sqm of built-to-suit warehouse areas in two projects for the gro-cery supermarkets chain owner Piotr i Paweł. The agreement, whose combined value is estimated at almost €14.3 million, is one of the largest built-to-suit transactions that have been signed in the ware-house property market in Poland this year. The planned schemes will be located in Teresin near Warsaw and near Poznań and will respectively deliver approximately 38,000 sqm and around 7,000 sqm of warehouse space. They will be com-pleted in the years 2016-2017. The focus on the de-velopment of built-to-suit projects is part of the new strategy of MLP Group, said Radosław Kro-chta, general director and vice president of the management board at the company. MLP Group has recently also announced it is going to develop a total of approximately 120,800 sqm of warehouse and office space in three built-to-suit


schemes for retail chains Merlin.pl, Małpka Express and Dyskont Czerwona Torebka within the next four years. The facilities for Małpka Express and Dyskont Czerwona Torebka will be developed within a new logistics park called MLP Poznań Zachód, while the facility for Merlin.pl will be de-veloped within the existing MLP Pruszków II logis-tics park located in the Warsaw area. MLP Group is one of the largest warehouse space developers in Poland. The portfolio of the company currently comprises five logistics parks across the country – MLP Pruszków I, MLP Pruszków II, MLP Tychy, MLP Poznań and MLP Bieruń. Earlier this year, MLP Group finalized the acquisition of a piece of building land on which a new logistics park called MLP Lublin will be developed. The park is expected to offer around 55,000 sqm of leasable space.

RESIDENTIAL

RobyRobyRobyRobyg launches Park g launches Park g launches Park g launches Park Wola Residence Wola Residence Wola Residence Wola Residence investment in Warsawinvestment in Warsawinvestment in Warsawinvestment in Warsaw

Warsaw Stock Exchange-listed developer Robyg has started developing and selling apartments in Park Wola Residence – its latest multi-family resi-dential project in the Polish capital. The scheme is located in the Odolany neighbourhood of the Wola district of Warsaw. The development will comprise 318 housing units and is scheduled to be completed in the first quarter of 2016. The Odolany neighbourhood has become one of the main residential hotspots in Warsaw in recent

years. The area is located relatively close to the downtown of the city and offers plenty of undevel-oped and post-industrial land. A number of residen-tial developers, including Bouygues Immobilier, Dantex, Hochtief Polska, J.W. Construction, Polnord and Ronson Development, are currently developing new investments in the neighbourhood.

The scheme will be ready in Q1 2016 Image: Robyg Robyg has in recent weeks launched two other new residential projects in Warsaw – Młody Wilanów and Modern Żoliborz Residence – that are respec-tively located in the Wilanów and the Żoliborz dis-trict of the Polish capital. At the beginning of next year, the company is planning to launch construc-tion on another phase of its Young City residential scheme in the Bemowo district of Warsaw that will deliver 135 apartments in the second quarter of 2016. Robyg is now stepping up its development activity to be able to achieve its ambitious apartments sales goals. The management of the company thinks that Robyg could reach an annual sales level of even more than 2,500 apartments in the upcoming years. The developer has recently acquired a large plot for

a new development in the Mokotów district of Warsaw. Robyg still has around 100 million zloty earmarked for land acquisitions in the city, said Os-car Kazanelson, president of the supervisory board at the company. In the first three quarters of this year, Robyg sold a total of 1,569 apartments in Warsaw and Gdańsk, the two cities in which the company is active. This was the best result among all the residential devel-opers listed on the Warsaw Stock Exchange. In Q3 alone, the Robyg offloaded 513 housing units, which marked a 7% increase upon the same period of last year. The company hopes to sell a total of more than 2,000 apartments this year.

RESIDENTIAL

Dom Development Dom Development Dom Development Dom Development expands its giantexpands its giantexpands its giantexpands its giant WilnoWilnoWilnoWilno project in Warsawproject in Warsawproject in Warsawproject in Warsaw

Warsaw Stock Exchange-listed developer Dom De-velopment has launched construction on, and apartment sales in, a new phase of its Wilno multi-family residential project in the Polish capital. The company will develop six four-floor buildings, comprising a total of more than 250 housing units, within the phase which is scheduled to be complet-ed in the second quarter of 2016. The Wilno scheme is located in the Elsnerów neighbourhood of the Targówek district of Warsaw and is expected to comprise approximately 2,500 apartments, when fully developed. The investment is one of the largest projects in the history of Dom Development. The company launched the first


phase of the Wilno development in 2010 and has al-ready completed more than 690 housing units with-in the scheme. Construction on almost 570 homes is now underway.

The new phase will comprise over 250 apartments Image: Dom Development The Elsnerów neighbourhood of Warsaw where the Wilno investment is located is an area with a lot of potential for further development, said Radosław Bieliński, a press spokesperson at Dom Develop-ment. He added that the zoning plan for the area al-lows for the development of up to 5,000 apart-ments. At the moment, Dom Development owns building land in Elsnerów which allows for the de-velopment of 2,500 housing units, Bieliński said. One of the largest developers active in the residen-tial market in Poland, Dom Development has to date completed more than 20,000 apartments in Warsaw and Wrocław, the two cities in which it is present. In the first three quarters of this year, the company offloaded a total of 1,358 apartments, which marked a 19% increase upon the same period of last year. In Q3 alone, the developer sold 495 housing units.

INTERVIEW

GrowingGrowingGrowingGrowing space space space space supplsupplsupplsupplyyyy putting putting putting putting retail cretail cretail cretail chainshainshainshains in in in in a privileged positiona privileged positiona privileged positiona privileged position

Poland Today talks to Anna Szmeja-Kroplewska, general director of the Polish Council of Shopping Centres (PRCH), about the expansion of retail chains to new locations across Poland and the rela-tions between shopping centre tenants and shop-ping centre managers. Poland Today: Poland Today: Poland Today: Poland Today: Which seWhich seWhich seWhich secccctors currentors currentors currentors currenttttly aly aly aly acccccount count count count for the most new shofor the most new shofor the most new shofor the most new shoppppping centre store openingsping centre store openingsping centre store openingsping centre store openings in Polandin Polandin Polandin Poland???? Anna SzmejaAnna SzmejaAnna SzmejaAnna Szmeja----KroplewKroplewKroplewKroplewska: ska: ska: ska: The data published in the Retail Research Forum report for the first half of 2014 show that the largest number of tenants of the analyzed shopping centres came from the fash-ion, service, restaurant and footwear sectors. Also health and beauty sector tenants, as well as jewelry and accessories retailers were strongly represented. On the basis of the data, one can say that the fashion sector now accounts for the most new shopping centre store openings. However, one also has to mention catering services which are developing very fast in the Polish market and are becoming an integral element of shopping centres. Do you see anyDo you see anyDo you see anyDo you see any evident evident evident evident trends when it comes to trends when it comes to trends when it comes to trends when it comes to the prefethe prefethe prefethe preferrrrences that tenants have while chooences that tenants have while chooences that tenants have while chooences that tenants have while choossssing ing ing ing new new new new lllloooocations?cations?cations?cations? It is worth mentioning that this year new shopping centres have mostly been opened in small and me-

dium-sized cities. This is the main feature of the supply this year – last year large shopping malls were mostly opened in the largest agglomerations. Tenants are choosing those centres which give them the largest chance of seeing profits and re-turns on their investments, irrespective of the size of a particular city. However, there are, of course, brands, including those coming from the fashion sector, which only open new stores in the largest cities as such is their business and marketing strat-egy.

Poland Today talks to: Anna Szmeja-Kroplewska, general director of the Polish Council of Shopping Centres Generally speaking, is it a tenantGenerally speaking, is it a tenantGenerally speaking, is it a tenantGenerally speaking, is it a tenant’’’’s mas mas mas marrrrket or a ket or a ket or a ket or a landlordlandlordlandlordlandlord’’’’s market?s market?s market?s market?


The amount of the new shopping centre space de-livered by developers continues to grow – according to the data which PRCH published in the Retail Re-search Forum report, there was a total of 10.09 mil-lion sqm of leasable space in 426 shopping centres at the end of June 2014. With the supply being so large and landlords competing with each other to secure tenants, the latter are obviously in a privi-leged position. What do the relations between shoWhat do the relations between shoWhat do the relations between shoWhat do the relations between shoppppping ceping ceping ceping cennnntre tre tre tre tenants and shopping centre manatenants and shopping centre manatenants and shopping centre manatenants and shopping centre managgggers look like? ers look like? ers look like? ers look like? Are there any major proAre there any major proAre there any major proAre there any major probbbblems?lems?lems?lems? The cooperation between tenants and managers looks different in each case and one should not gen-eralize here. The economic situation in Poland is conducive to business growth, and each side wants to make the most of that growth. It is in the interest of a good manager to make sure that the centre which he manages generates turnover and is liked by buyers. It is in the interest of a tenant to make sure that buyers visit the centre and, most im-portantly, shop there. The goals of both sides over-lap, which, when the centre is well managed and has the right tenant mix, guarantees success of the mall and gives satisfaction to both sides. Has the publication of the PRCH Code of Good Has the publication of the PRCH Code of Good Has the publication of the PRCH Code of Good Has the publication of the PRCH Code of Good Practice Practice Practice Practice (Kodeks Dobrych Praktyk) (Kodeks Dobrych Praktyk) (Kodeks Dobrych Praktyk) (Kodeks Dobrych Praktyk) brought any brought any brought any brought any tangible benefits?tangible benefits?tangible benefits?tangible benefits? The publication of the Code of Good Practice has undoubtedly brought tangible benefits for the in-dustry. The Code was created after long and fruitful talks which PRCH conducted with tenants, devel-opers and landlords. A number of agreements were made which are now reference points for both sides during their talks. Despite the fact, that we have re-ceived many signals that the Code has defined the standards in the industry, there is still room for the

promotion of good practices. The publication of the Code was one of many efforts taken by the Polish Council of Shopping Centres to make the relations between tenants and landlords as good, and as prof-itable for both sides, as possible. In the future, as the market develops, the Code may yet be updated.

LATEST LEASE DEALS IN BRIEF

Warsaw Spire Image: Ghelamco BNP BNP BNP BNP ParParParPariiiibbbbas as as as SSSSeeeeccccuuuurrrriiiities Seties Seties Seties Serrrrvices vices vices vices will take up 4,000 sqm of space at building B of the Warsaw Spire office project which developer Ghelamco is currently developing in the Wola district of the Polish capital. Additionally, another tenant has signed a letter of intent regarding the lease of 6,000 sqm at the scheme. The Warsaw Spire development will comprise a total of around 100,000 sqm of of-fice space in three buildings. Multichem Multichem Multichem Multichem has recently leased more than 2,000 sqm of warehouse space at the SEGRO Logistics Park Poznań, Gądki complex in the Poznań area which SEGRO acquired in June this year. The

SEGRO Logistics Park Poznań, Gądki park is locat-ed approximately 13 kilometres from the downtown of Poznań and will comprise a total of more than 76,000 sqm of warehouse and light production space.

COMING & GOING

JJJJustyna Williamsustyna Williamsustyna Williamsustyna Williams

Justyna Williams has recently been appointed as the director of retail operations at the property management department of JLL in Poland. She will oversee 37 retail projects across the country. Wil-liams has twelve years of experience in the com-mercial real estate market. She was previously a re-tail asset manager at Cushman & Wakefield and a property asset management team leader at Tesco Polska.

weekly newsletter # 038/ 8th December 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 argest argest argest office lease dealsoffice lease dealsoffice lease dealsoffice 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


Highest retail rents (EUR/sqm/month), H1 2014Highest retail rents (EUR/sqm/month), H1 2014Highest retail rents (EUR/sqm/month), H1 2014Highest retail rents (EUR/sqm/month), H1 2014

20

30

40

50

60

70

80

90

100

Other citiesŁódź

WrocławTri-city

SzczecinPoznańKraków

KatowiceWarsaw

Source: Cushman & Wakefield

Office rents (EUR/sqm/month), H1 2014Office rents (EUR/sqm/month), H1 2014Office rents (EUR/sqm/month), H1 2014Office rents (EUR/sqm/month), H1 2014

10 15 20 25

ŁódźKatowice

Tri-cityKrakówPoznań

WrocławWarsaw - non-central

Warsaw - central locations

Source: Cushman & Wakefield

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 123,000 Goodman Wrocław South

Logistic Center

Poznań Amazon 123,000 Panattoni Poznań

Wrocław Amazon 123,000 Panattoni Wrocław

Poznań supermarket

chain 82,385 -

Central Po-

land Castorama 49,961 Panattoni Park Stryków


Documents

PT Urban Issues No. 38