PT Urban Issues provides original journalism and exclusive interviews at the heart of the Polish property industry, developing cities and urban spaces.
No. 027 / 15th September 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter Newsletter Editor: Adam Zdrodowski [email protected]tel. +48 504 182 308 OFFICE Capital Park is starting building second phase of Eurocentrum Office Complex in Warsaw page 2 INVESTMENT MAR- KET W. P. Carey has completed a sale- leaseback transaction in Kraków page 3 RESIDENTIAL Yareal has launched its largest housing project to date page 3 Robyg will soon start construction on a new residential scheme in Warsaw page 3 RETAIL Multishop Development will develop a new retail park in western Poland page 4 LOGISTICS Prologis has acquired a major logistics centre in Warsaw page 4 INTERVIEW Poland Today talks to Leszek Sikora, managing director at ECE Projektmanagement Polska page 4 LATEST LEASE DEALS IN BRIEF Recent lease transactions in the office, retail and warehouse sectors page 6 COMING & GOING Marta Slysz, DTZ page 6 FACTS &FIGURES Largest completions, largest lease deals and rents in the commercial property market in 2013 page 7 A preliminary vision for the area covered by the zoning plan Photo: CPD New zoning paves way for huge New zoning paves way for huge New zoning paves way for huge New zoning paves way for huge revitalization project in Warsaw revitalization project in Warsaw revitalization project in Warsaw revitalization project in Warsaw A new zoning plan will enable the revitalization of a huge ne- glected portion of the Ursus district of Warsaw. Listed devel- oper CPD has very ambitious development plans for the area page 2
OFFICE Capital Park is starting building second phase of Eurocentrum Office Complex in Warsaw page 2
INVESTMENT MAR-KET W. P. Carey has completed a sale-leaseback transaction in Kraków page 3
RESIDENTIAL Yareal has launched its largest housing project to date page 3 Robyg will soon start construction on a new residential scheme in Warsaw page 3
RETAIL Multishop Development will develop a new retail park in western Poland page 4
LOGISTICS Prologis has acquired a major logistics centre in Warsaw page 4
INTERVIEW Poland Today talks to Leszek Sikora, managing director at ECE Projektmanagement Polska page 4
LATEST LEASE DEALS IN BRIEF Recent lease transactions in the office, retail and warehouse sectors page 6
COMING & GOING Marta Słysz, DTZ page 6
FACTS &FIGURES Largest completions, largest lease deals and rents in the commercial property market in 2013 page 7
A preliminary vision for the area covered by the zoning plan Photo: CPD
New zoning paves way for huge New zoning paves way for huge New zoning paves way for huge New zoning paves way for huge revitalization project in Warsawrevitalization project in Warsawrevitalization project in Warsawrevitalization project in Warsaw A new zoning plan will enable the revitalization of a huge ne-glected portion of the Ursus district of Warsaw. Listed devel-oper CPD has very ambitious development plans for the area page 2
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New zoning paves way New zoning paves way New zoning paves way New zoning paves way for huge revitalization for huge revitalization for huge revitalization for huge revitalization project in Warsawproject in Warsawproject in Warsawproject in Warsaw
A new zoning plan which has recently been adopted by the Warsaw City Council will enable the revitali-zation of around 220 hectares of post-industrial land located in the Ursus district of the Polish capi-tal. The huge plot, which accounts for approximate-ly 25% of the total area of Ursus, used to house the ZPC Ursus tractor factory and is expected to be to-tally redeveloped in the upcoming years. This is a historic moment for Ursus, said district mayor Wiesław Krzemień.
A sizable portion of Ursus will be redeveloped Image: CPD The most land within the area covered by the zon-ing plan is owned by Warsaw Stock Exchange-listed developer CPD (formerly Celtic Property Develop-ment) who is planning to develop a massive multi-function project called Smart City Ursus in the loca-tion. According to estimates, Smart City Ursus will be inhabited by more than 30,000 people and will
offer around 200,000 sqm of office and retail space when fully developed. The development will also feature a number of education, healthcare and rec-reation facilities. The scheme will be developed in cooperation with the local authorities, to whom CPD has already transferred for free almost eight hectares of land to facilitate the construction of new roads in the area, noted Michalina Wiczkowska, management board president at the company. CPD last week also signed a cooperation agreement with developer Unidevelopment, part of the Warsaw Stock Ex-change-listed construction group Unibep, as the private partner with whom it will develop the first residential phase of the Smart City Ursus scheme. Unidevelopment will soon start preparing the phase which, according to preliminary estimates, will comprise a total of approximately 400 apartments in four buildings, said Zbigniew Gościcki, president of the management board at the company. It is very probable that Unidevelopment will also be involved in the development of other phases of the invest-ment but this will ultimately depend on how the cooperation on the first phase of the project goes, Gościcki added.
OFFICE
Capital Park starting Capital Park starting Capital Park starting Capital Park starting work on Delta office work on Delta office work on Delta office work on Delta office building in Warsawbuilding in Warsawbuilding in Warsawbuilding in Warsaw
Real estate investor and developer Capital Park will in the upcoming weeks launch construction on the second phase of its Eurocentrum Office Complex
project located in the Ochota district of Warsaw. Called Delta, the second phase of the scheme is ex-pected to deliver approximately 27,000 sqm of leas-able space on 15 floors and is scheduled to be com-pleted in the third quarter of next year.
The whole project will comprise over 69,000 sqm Image: Capital Park Capital Park has recently selected listed construc-tion company Erbud as the general contractor of the development. The builder is currently also building the Royal Wilanów office investment which Capital Park is developing in the Wilanów district of the Polish capital. In June this year, Capital Park fin-ished construction on the first two buildings within the Eurocentrum Office Complex project – Beta and Gamma – which delivered a total of more than 42,000 sqm of leasable space. When fully developed, the scheme will comprise a total of over 69,000 sqm of GLA, including approx-imately 67,000 sqm of office space and around 2,000 sqm of service and restaurant areas. Already secured tenants at the LEED CS Gold-pre-certified Eurocentrum Office Complex investment include Unilever, AB Foods Polska, Group One, Imtech Polska, Tebodin, Qumak, CEPD Management and Randstad Polska. The second phase of the Eurocentrum Office Com-plex development will be the last one. However,
Capital Park also owns a piece of land located slightly to the west of the project which it plans to develop in the future. Work on a concept for the development of the plot is now underway, said Jo-anna Zielińska, investor relations officer at Capital Park. She did not disclose any details as to what could be built on the site.
INVESTMENT MARKET
W. P. Carey completes W. P. Carey completes W. P. Carey completes W. P. Carey completes salesalesalesale----leaseback leaseback leaseback leaseback transaction in Krakówtransaction in Krakówtransaction in Krakówtransaction in Kraków
W. P. Carey managing director Jeffrey Lefleur Image: W. P. Carey Global net-lease real estate investment trust W. P. Carey has completed a sale-leaseback transaction with Nokia Solutions and Networks, acquiring the Kraków office/R&D facility of the company for €9.7 million. The building in question was completed in 2003 and comprises almost 5,000 sqm of space,
housing approximately 300 Nokia Solutions and Networks engineers, computer technicians and re-searchers. Poland is the second largest economy in the Central Eastern Europe region with projected GDP growth and a healthy and liquid banking industry, com-mented Jeffrey Lefleur, managing director at W. P. Carey. This, as well as the strength of the Nokia tenancy and positive outlook for the Kraków office market, enhanced the attractiveness of the acquisi-tion, he added. W. P. Carey earlier this year also ac-quired the Bank Pekao headquarters in Warsaw for €115 million.
RESIDENTIAL
Yareal launches sales Yareal launches sales Yareal launches sales Yareal launches sales in its largest housing in its largest housing in its largest housing in its largest housing project to dateproject to dateproject to dateproject to date
Developer Yareal Polska has launched sales of apartments in its planned Kolorowy Gocław resi-dential project in Warsaw. The scheme will be de-veloped in two phases and will comprise a total of almost 400 housing units in six buildings. Construc-tion on the first phase of the development is sched-uled to launch in the first half of next year. “Kolorowy Gocław is our largest residential project to date,” said Olga Prokopiak, marketing director at Yareal Polska. The Kolorowy Gocław investment is located in the Gocław neighbourhood of the Praga Południe dis-trict of Warsaw. The scheme has been designed by the Hermanowicz Rewski Architekci architectural studio. Apart from Kolorowy Gocław, Yareal Polska
is now also selling apartments in a number of other residential developments in the Polish capital, in-cluding Rezydencja Konstancińska in the Mokotów district and Brylowska 2 in the Wola district.
The scheme will deliver almost 400 apartments Image: Yareal Polska
RESIDENTIAL
Robyg about to start Robyg about to start Robyg about to start Robyg about to start new residential scheme new residential scheme new residential scheme new residential scheme in Warsawin Warsawin Warsawin Warsaw
Warsaw Stock Exchange-listed developer Robyg is going to launch construction on its planned Młody Wilanów residential project in the Polish capital in the last quarter of this year. The company has launched sales of apartments in the first phase of the scheme which will deliver 112 housing units. The whole Młody Wilanów development is ex-pected to comprise a total of 255 homes in two phases. The investment will be developed in the Wilanów district of Warsaw where Robyg is currently also selling apartments in two other residential projects – Osiedle Królewskie and Osiedle Królewski Park.
Wilanów is a district that attracts a lot of buyer in-terest, said Oscar Kazanelson, supervisory board president at Robyg. He added that the apartment sales results of Robyg in the location are better than the company had expected. Robyg sold a combined 1,056 apartments in Warsaw and Gdańsk, the two markets it is present in, in the first half of the year. The company wants to offload a total of more than 2,000 housing units by the end of this year, Kazanelson said. Last year, Robyg adopted an investment plan which envisions the spending of up to 150 million zloty on the acquisi-tion of sites for future developments in Warsaw in the years 2014-2016.
Construction on the project will launch in Q4
Image: Robyg
RETAIL
New retail park to be New retail park to be New retail park to be New retail park to be delivered in western delivered in western delivered in western delivered in western Poland next yearPoland next yearPoland next yearPoland next year
Developer Multishop Development plans to deliver a new retail park project in Jarocin in western Po-land in the last quarter of next year. The company
has just appointed Cushman & Wakefield as the ex-clusive leasing agent for the scheme. The planned Multishop Jarocin development will be located near two other existing retail facilities – a Bricomarche DIY store and an Intermarche hyper-market – and will comprise 5,400 sqm of leasable space. The nearest large shopping centres are located in Kalisz and Ostrów Wielkopolski, approximately 50 kilometres from Jarocin, said Tomasz Lipiński, a negotiator at the retail department of Cushman & Wakefield. The planned Jarocin ring road, running close to the Multishop Jarocin site, is scheduled for completion within a year from the delivery of the retail park, which will further enhance the expo-sure and enlarge the catchment area of the facility, Lipiński said.
LOGISTICS
Prologis acquires Prologis acquires Prologis acquires Prologis acquires major logistics park in major logistics park in major logistics park in major logistics park in WarsawWarsawWarsawWarsaw
The global industrial space owner, operator and de-veloper, Prologis has announced the acquisition of the Żerań Park I (now renamed Prologis Park War-saw-Żerań) logistics park in Warsaw from Heitman. The park is part of a larger portfolio, acquired by Prologis European Properties Fund II in Poland, the Czech Republic and Slovakia, which comprises 23 buildings and totals around 230,000 sqm of space. The value of the transaction, in which Prologis was advised by JLL, has not been disclosed. “We are
pleased to acquire such well-located logistics facili-ties at a discount to replacement cost,” said Philip Dunne, president of Prologis Europe. The Prologis Park Warsaw-Żerań complex encompasses four buildings and comprises a combined 55,400 sqm of space. It is located on ul. Annopol in the Białołęka district of the Polish capital.
Prologis Park Warsaw Żerań
Image: Prologis
INTERVIEW
There is still room for There is still room for There is still room for There is still room for new large shopping new large shopping new large shopping new large shopping centrescentrescentrescentres inininin PolandPolandPolandPoland
Poland Today sits down with Leszek Sikora, manag-ing director at shopping centre developer and man-ager ECE Projektmanagement Polska, to talk about the current condition of the retail property market in Poland. Poland TodayPoland TodayPoland TodayPoland Today: Developers now continue: Developers now continue: Developers now continue: Developers now continue to ato ato ato an-n-n-n-nounce and lnounce and lnounce and lnounce and launch all kinds of new retail praunch all kinds of new retail praunch all kinds of new retail praunch all kinds of new retail pro-o-o-o-jectsjectsjectsjects across Poland. How sustainable is the cuacross Poland. How sustainable is the cuacross Poland. How sustainable is the cuacross Poland. How sustainable is the cur-r-r-r-rent demand for retail space in the courent demand for retail space in the courent demand for retail space in the courent demand for retail space in the counnnntry?try?try?try?
Leszek Sikora: Leszek Sikora: Leszek Sikora: Leszek Sikora: Retail chains continue to expand. Admittedly, they have become more selective and the process of choosing new locations takes more time than in the past. The growth is today slower than it used to be. The times when any new project in the market could easily and quickly be filled with tenants are over, which is good. Tenants are now much more careful when it comes to their expan-sion strategies. This is not a problem for us as we ourselves are very selective with regard to the loca-tions we want to be in as a developer. Many of the new retail schemes in Poland are Many of the new retail schemes in Poland are Many of the new retail schemes in Poland are Many of the new retail schemes in Poland are relatively small projects including conrelatively small projects including conrelatively small projects including conrelatively small projects including convenience venience venience venience shopping centres. Is there still room in the shopping centres. Is there still room in the shopping centres. Is there still room in the shopping centres. Is there still room in the PoPoPoPol-l-l-l-ish ish ish ish market for the regular largemarket for the regular largemarket for the regular largemarket for the regular large----scale shopping scale shopping scale shopping scale shopping malls?malls?malls?malls? There is still room for large shopping centre pro-jects in the largest cities, in good locations which al-low for the development of an investment that will remain dominant in a given city for many years. We are currently developing a large-scale shopping centre scheme in Bydgoszcz. Of course, there is more risk involved in this kind of developments. Small retail formats are growing in Poland but this is not a segment of the market that we would like to be present in. All or most of the large cities in PAll or most of the large cities in PAll or most of the large cities in PAll or most of the large cities in Pooooland probably land probably land probably land probably already have at least one large dominant shoalready have at least one large dominant shoalready have at least one large dominant shoalready have at least one large dominant shop-p-p-p-ping centre. How can developers coping centre. How can developers coping centre. How can developers coping centre. How can developers commmmpete today pete today pete today pete today with those existing malls?with those existing malls?with those existing malls?with those existing malls? The best sites in the largest Polish cities have probably already been developed. However, I think that there is much development potential in new lo-cations, created through the constant improvement of transport infrastructure. For example, the con-struction of new ring roads in the largest cities in Poland, and the second subway line in Warsaw, will
create new areas with a high concentration of pe-destrian and car traffic and thus generate new in-vestment opportunities.
Poland Today talks to: Leszek Sikora, managing director at ECE Projektmanagement Polska Has the size of new large shopping centre prHas the size of new large shopping centre prHas the size of new large shopping centre prHas the size of new large shopping centre pro-o-o-o-jects ijects ijects ijects in Poland changed in recent years?n Poland changed in recent years?n Poland changed in recent years?n Poland changed in recent years? There are fewer new large shopping centre projects but they have become larger. Statistics shows that the average size of new shopping centres in Poland and elsewhere in Europe grew by approximately 30% over the last ten years. And why is that?And why is that?And why is that?And why is that? This is because developers, who want to make sure that their projects will succeed in a competitive and relatively saturated market, focus on the develop-ment of dominant schemes and those need to be large. Do you see potential in the redeveDo you see potential in the redeveDo you see potential in the redeveDo you see potential in the redevellllopment of the opment of the opment of the opment of the existing shopping centres in Poland?existing shopping centres in Poland?existing shopping centres in Poland?existing shopping centres in Poland? Definitely. Last year, our owner actually decided that when it comes to the development of new
shopping centre projects in Poland, ECE Pro-jektmanagement will be very selective and will practically limit its choice of locations to Warsaw. In the regional cities, the company will mostly focus on the redevelopment and repositioning of the ex-isting shopping malls, which is, in some respects, even more difficult than the development of a new centre because you have to remodel a centre that continues to operate. This also pertains to our own centres – in Gdańsk, for instance, we will be rede-veloping and expanding the Galeria Bałtycka mall which will get another 16,000 sqm of leasable space. This market never ends and new opportunities are emerging all the time. What are the latest trends in desigWhat are the latest trends in desigWhat are the latest trends in desigWhat are the latest trends in designing new ning new ning new ning new shopping centre projects?shopping centre projects?shopping centre projects?shopping centre projects? First of all, shopping centres today have to be multi-functional and satisfy both the shopping and enter-tainment needs of their visitors. When it comes to the architectural aspect, people increasingly expect that a new shopping centre will be integrated with the neighbourhood it is developed in. Green build-ing solutions have become a standard in the sector. Another thing is the application of modern IT tech-nologies in shopping centres – studies are now un-derway on the use of applications and devices in-cluding smartphones as sales and marketing tools. Has the eHas the eHas the eHas the e----commerce market already had a major commerce market already had a major commerce market already had a major commerce market already had a major impact on shopping centres in Pimpact on shopping centres in Pimpact on shopping centres in Pimpact on shopping centres in Pooooland?land?land?land? There are tenants who have decided to withdraw from shopping centres. In Germany, which is the main market for us, around 16% of all shopping is now done online and in Poland we can see things going in the same direction. We are thinking of ways of addressing the issue, of how shopping cen-tres developers and investors could benefit from the development of e-commerce. I do not think that e-
commerce is or will ever be a major threat for shopping malls that offer a unique shopping experi-ence. I would rather call it an evolution of shopping habits. Read the whole interview with Leszek Sikora in the upcoming print
issue of Poland Today, due out later this month
LATEST LEASE DEALS IN BRIEF
Dominikański in Wrocław
Image: Skanska Property Poland
Stainless steel and aluminum distributor Investa Investa Investa Investa has leased more than 4,200 sqm of logis-tics/industrial and office space at the MLP Pruszków II logistics park near Warsaw. The com-pany moved to the park from the nearby MLP Pruszków I complex. Owned by industrial space developer MLP Group, the MLP Pruszków II logis-tics park is being developed on 67 hectares of land and is expected to comprise a combined 302,000 sqm of space when it is completed. HP HP HP HP has leased almost 16,400 sqm of office space at the Dominikański office project which Skanska Property Poland is currently developing in Wrocław. According to CBRE, which brokered the transaction, this is the largest office lease deal signed in a regional city this year. The
Dominikański scheme will comprise 40,000 sqm of leasable space which is currently commercialized in more than 50%. The development is scheduled for completion in the third quarter of next year.
Flanders Business Park in Warsaw
Image: Liebrecht & wooD
The Civil Aviation Authority The Civil Aviation Authority The Civil Aviation Authority The Civil Aviation Authority has extended its lease agreement regarding space at the Flanders Business Park complex in Warsaw. The entity has taken up more than 6,600 sqm of office areas at the park. Located in the Włochy district of the Polish capital and developed by Liebrecht & wooD, Flan-ders Business Park now comprises almost 14,500 sqm of office space. Construction on the second phase of the park, which will deliver 22,100 sqm of office areas, is underway.
Atrium Plaza in Warsaw
Image: Peakside Polonia Management
A total of almost 1,500 sqm of office space has re-cently been leased at the Atrium Plaza and Atrium Centrum office buildings located on Al. Jana Pawła II in the Wola district of Warsaw and owned by Peakside Polonia Management. The recently signed lease deals included lease extension agreements signed by Tax CareTax CareTax CareTax Care, Pieter Nielsen Pieter Nielsen Pieter Nielsen Pieter Nielsen and Home Home Home Home Broker Broker Broker Broker which respectively occupy 270 sqm, 550 sqm and 325 sqm of office space at the buildings.
COMING & GOING
Marta SłyszMarta SłyszMarta SłyszMarta Słysz
Marta Słysz has recently re-joined the Warsaw of-fice of DTZ as a senior consultant in the retail space lease department. She first started working in the same department in 2008 as a consultant. A li-censed real estate broker, Słysz has seven years of experience in the retail property market. She previ-ously worked at companies including Metro Prop-erties and Carrefour Polska.
weekly newsletter # 027/ 15th 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
LaLaLaLargest retailrgest retailrgest retailrgest retail projects delivered in 2013projects delivered in 2013projects delivered in 2013projects delivered in 2013
Location Project Developer Area
(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
Source: Colliers International
Selected Selected Selected Selected large investment transactions large investment transactions large investment transactions large investment transactions in 2013in 2013in 2013in 2013
Largest industrial lease deals in 2013Largest industrial lease deals in 2013Largest industrial lease deals in 2013Largest industrial lease deals in 2013
