Warsaw Business Journal, vol. 18, #17-18, April 30-May 13, 2012
32
VOLUME 18, NUMBER 17-18 • APR 30 – MAY 13, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English WWW.WBJ.PL 29 3 9 Polish banks enjoy another record quarter PM Tusk visits the UAE and Saudi Arabia Legia Warszawa wins the Polish Cup A hero, honored The United States awards its Presidential Medal of Freedom to Jan Karski 4 Profit in Poland WBJ presents a special 8-page pull-out investment guide including: • Attractive sectors for investment • Investment trends • How to set up a business • Tender procedures • Business organizations • Chambers of commerce • Government agencies • An investor’s glossary 13-20 Business oriented Chinese Premier Wen Jiabao makes a big splash in Poland 3 SHUTTERSTOCK News . . . . . . . . . . . . . . . . . . . . . . .2-4 Finance & Economics . . . . . . . . . . .6 Business . . . . . . . . . . . . . . . . . . . .8-9 Opinion & Analysis . . . . . . . . . . . .10 Poland Investment Guide . . . .13-20 Lokale Immobilia . . . . . . . . . . .21-25 The List . . . . . . . . . . . . . . . . . . .26-27 Markets . . . . . . . . . . . . . . . . . . . . . 28 Sports . . . . . . . . . . . . . . . . . . . . . . .29 Lifestyle . . . . . . . . . . . . . . . . . . . . .30 Last Word . . . . . . . . . . . . . . . . . . . .31 In this issue COURTESY OF HOME BROKER REAL ESTATE Lokale Immobilia • Historical properties • Apricot Capital plans • InterContinental stake sale 21-25 COURTESY OF THE IMF Government officials expect a budget surplus within a few years and say Poland is resistant to euro-zone woes 6 Optimistic outlook
Transcript
VOLUME 18, NUMBER 17-18 • APR 30 – MAY 13, 2012 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127 Since 1994 . Poland’s only business weekly in English
WW
W.W
BJ.P
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Polish banks enjoyanother record quarter
PM Tusk visits theUAE and Saudi Arabia
Legia Warszawawins the Polish Cup
AA hheerroo,,hhoonnoorreeddThe United States awards its
Presidential Medal of Freedom
to Jan Karski 4
Profit in PolandWBJ presents a special 8-pagepull-out investment guide including:
• Attractive sectors for investment• Investment trends• How to set up a business• Tender procedures• Business organizations• Chambers of commerce• Government agencies• An investor’s glossary
13-20
BBuussiinneessssoorriieenntteeddChinese Premier Wen Jiabao
May 3 is Constitution Day inPoland, a national holidayheld to celebrate the adoptionon May 3, 1791 of what hasbeen described by many schol-ars as the first constitution inEurope and the second in theworld.
The constitution is consid-ered one of the most signifi-cant achievements in Poland’shistory, despite being in effectfor only a year, until the Russ-ian-Polish war of 1792. It wasdesigned to address long-standing political defects in thethen Polish-Lithuanian Com-monwealth. The documentspecifically sought to tackle theexisting anarchy fostered bysome of the country’s mag-
nates with a more democraticconstitutional monarchy.
The May 3rd Constitutionintroduced political equalitybetween town-dwellers andthe nobility and also placedthe peasants under the protec-tion of the government, allevi-ating some of the worst abusesconnected with serfdom.
The document also didaway with ill-construed parlia-mentary institutions such as theliberum veto, which had put theparliament at the mercy of anyMP who might choose – or bebribed by a special interest orforeign power – to block anylegislation adopted at that ses-sion of parliament.
The adoption of the May
3rd Constitution provoked thehostile reaction of the Com-monwealth’s neighbors, lead-ing to the Second Partition ofPoland in 1793.
The memory of the May 3rd
Constitution, widely recog-nized as a progressive docu-ment for its time, helped keepalive Polish aspirations for anindependent state and a justsociety. Poles view it as anational symbol and theembodiment of all that wasgood and enlightened in Polishhistory and culture.
Under communist rule,May 3 was removed as anational holiday and was onlyreestablished as such in 1990.
RReemmii AAddeekkooyyaa
$10 billionis the size of the credit line that China is set to open
for supporting the development of infrastructure, newtechnologies and a green economy in the Central and
Eastern Europe region.
z∏.1 billionis the amount of extra funding granted by the EU toPoland to use for innovation and new technologies.
300,000is the number of foreign patients who used medical
services in Poland in 2011.
8.8%is how much passenger traffic at Polish airports is
expected to increase this year.
“We are working on the seed which we aresowing now to bring a good harvest.”
Chinese Premier Wen Jiabao, on his recent discussions with Polish Prime Minister Donald Tusk on greater Sino-Polish cooperation.
Quote of the Week
Strolling around WarsawThis spring and summer log on to WBJ.pl and discov-er or re-discover the capital through itineraries com-piled by Warsaw Business Journal’s sister publica-tion Warsaw Insider, starting with a stroll aroundWarsaw’s trendy Praga district.
On WBJ.pl
Numbers in the News
Company index
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Event: AUTOSTRADA-POLSKA, MASZBUD, TRAFIC-EXPO and ROTRA are annual exhibitions thatshowcase products required to build high-ways.
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Location: WarsawWeb: prch.org.pl
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May
DATELINE
The May 3rd ConstitutionIN THE SPOTLIGHT
Figures in focus
Belgian bountyLabor cost per hour in €, selected EU27 countries in 2011
Source: Eurostat
“The May 3 Constitution”
by Jan Matejko, 1891
APRIL 30 – MAY 13, 2012 NNEEWWSS www.wbj.pl 3
Polish
ambassador
back in Minsk
Belarusian authorities
have allowed Poland’s
ambassador to the
country, Leszek Szerepka,
to return to the capital
Minsk. Mr Szerepka was
asked to leave on
February 28 following an
announcement that EU
sanctions against Belarus
had been extended.
Ambassadors from other
EU countries who left
Belarus at the same time
are also now set to return.
Polish bison
may be killed
A herd of Poland’s famous
wild bison may have to be
culled after they were
found to be infected with
tuberculosis, a panel of
18 veterinary and
breeding experts has
decided. The panel plans
to ask Polish authorities
for permission to kill the
25-strong herd which
lives near the village of
Stuposiany in the
Bieszczady Mountains,
The Associated Press
reported. “I would have
preferred some other
possibility, not so very
drastic. (But) under these
conditions I don’t see any
and the commission did
not see any either,” said
veterinarian Miros∏aw
Welz, a member of the
panel.
Turkish
Airlines nears
LOT purchaseTurkish Airlines is coming
closer to finalizing a deal
to purchase LOT Polish
Airlines, according to
sources cited by
Rzeczpospolita. In March,
Turkish Airlines
conducted due diligence to
analyze the financial
situation of the Polish
carrier, according to the
newspaper. Talks with the
Turkish carrier are being
taken very seriously, said
Magdalena Kobos,
spokesperson for the
Treasury.
Tesco to cut
3,000 jobs?
Tesco will soon start
laying off employees in
Poland, with trade unions
estimating that as many
as 10% of the company’s
workforce, or almost
3,000 people, are set to
lose their jobs, Puls
Biznesu reported. But
representatives of the
company claim these
numbers are too high. ●
Foreign business ties
TTuusskk ttoouuttss PPoollaanndd dduurriinngg MMiiddddllee EEaasstt vviissiittPolish-Saudi oil-related business tieswere strengthenedduring the PM’s trip
Polish Prime Minister DonaldTusk was in Saudi Arabia andthe United Arab Emirates inlate April for an official state
visit in which he sought todrum up interest among Mid-dle Eastern businesspeople ininvesting in Poland.
During the four-day visit,Mr Tusk, who took part in aseries of meetings with localpoliticians and business lead-ers, emphasized that Poland
wanted to increase coopera-tion in areas including defense,financial services, food, healthtourism, medical services andoil, stressing at the Council ofSaudi Chambers in Riyadhthat it was also important tostrengthen trade ties.
“We are also seeking Saudi
investment for infrastructureprojects,” he added.
The Polish PM highlightedthe economic strength of hiscountry, pointing out thatPoland’s economy has contin-ued to grow in the last fewyears, despite the economiccrisis. Mr Tusk also empha-sized the high levels of FDIthat are being pumped intoPoland and the large-scalegovernment spending beingcarried out on infrastructure.
Oil and defenseOn the final day of his visit MrTusk took part in the Polish-Saudi Business Forum inRiyadh. There, the Polish PMrevealed that followingmonths of negotiations,Poland is very likely to soonmake its first major purchaseof Saudi oil.
“We recognize this trend asbeing an extremely importantelement of diversification,” MrTusk said during the meeting.
Moreover, the Polish PressAgency quoted Mr Tusk assaying that Saudi Basic Indus-
tries Corp (SABIC), theworld’s biggest petrochemicalfirm, has expressed an interestin buying Polish state-ownedchemical companies and incooperating with Polish refinerPKN Orlen. Mr Tusk wasaccompanied on the trip byOrlen’s chief executive as wellas by other businesspeople.
“It is very likely that apartfrom SABIC’s active participa-tion in the potential privatiza-tion of Polish firms, a mutualenterprise on quite a largescale in the petrochemical sec-tor between Orlen and SABICwill be possible,” Mr Tusk said.
Poland’s PM also spokewith Saudi Arabia’s defenseminister during his trip, tellingreporters afterwards that themeeting had provided thebasis for future discussions ondefense and armaments.
“This region has alwaysbeen important for those com-panies of ours which areinvolved in the [sector]; herethe patronage of the state isreally the key,” Mr Tusk said.
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PM Tusk talked up Polish investment opportunities while in the United Arab Emirates
Sino-Polish relations
CChhiinneessee pprreemmiieerr iinn PPoollaannddWen Jiabao was inWarsaw in late April,where he sought tostrengthen ties withPoland and the region
Chinese Premier Wen Jiabaopromised during his visit toPoland in late April that thetwo countries would doubletheir bilateral trade turnover inthe next five years.
Trade between the twocountries was worth €14 billionin 2011. However, importsfrom China were worth 10times the value of Polishexports to China, an imbalancethe Chinese premier said hisgovernment is willing to tackle.
“Poland has maintained sta-bility and development and hassecured 20th spot in the rankingof global economies,” Mr Wentold reporters at a joint pressconference with Polish PrimeMinister Donald Tusk.
“I had very fruitful discus-sions with Tusk ... and wereached an agreement on howto strengthen ties and friend-ship between our countries.”
“We are working on theseed which we are sowing nowto bring a good harvest,” headded.
China is also seeking toimprove economic ties with theregion as a whole. Its govern-ment has promised to open a$10 billion credit line for
Eastern Europe to support thedevelopment of infrastructure,new technologies and a greeneconomy in the region, MrWen said at the EconomicForum Poland – CentralEurope – China in Warsaw onApril 26.
Mr Wen also announcedthe creation of a fund whichwould initially provide $500million to assist Chinese invest-ments in the region. In addi-tion, he said he hoped to dou-ble the current trade volumebetween the region and Chinato $100 billion by 2015.
“We have a long-term planfor increasing our coopera-tion,” he said.
Among other initiatives, aspecial committee to coordi-nate industrial cooperationbetween the two countries willbe launched.
A bright futureMr Tusk said at the EconomicForum that China and EasternEuropean countries are “thehope for a better world foreveryone.”
“Today two partners whohave no cause for an inferiority
complex are meeting. Partnerswho break stereotypes and area symbol of success and devel-opment in the world,” Mr Tusksaid, adding that Poland haddecided to upgrade bilateralrelations to a “strategic” level.
The Chinese PM’s visitcomes after Polish PresidentBronis∏aw Komorowski’s tripto China in December of lastyear, during which time the twocountries signed a strategicpartnership agreement. A totalof eight EU member stateshave now signed strategic part-nership agreements with the
Asian superpower. As part of an effort to make
China more accessible to Polishbusinesspeople, Poland’snational flag-carrier LOT Pol-ish Airlines will begin directflights from Warsaw to Beijingin May this year. The govern-ment also recently announceda program called “Go China”to help Polish businesses enterthe Chinese market. Amongother things, the program seeksto provide entrepreneurs withinformation about Chinese lawand business culture.
RReemmii AAddeekkooyyaa
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Poland and China are symbols of success in the world, Mr Tusk said
APRIL 30 – MAY 13, 2012NNEEWWSS4 www.wbj.pl
Marek Papa∏a wasshot dead in 1998 bycriminals attemptingto steal his car, sayprosecutors
Polish prosecutors chargedtwo men in late April with themurder 14 years ago of formernational police chief, MarekPapa∏a.
Testimony from a suspectarrested in 2011 suggests MrPapa∏a, who died after beingshot in the head, was killedduring an attempted robberyof his car outside his Warsawapartment in June 1998.
Jaros∏aw Szubert, spokes-person for the prosecutor’soffice in ̧ ódê, told a news con-ference that the murder “hap-pened as a result of an armedrobbery with a firearm.”
“They planned to stealGeneral Papa∏a’s car. The fatalshot was fired during theattack.”
The spokesperson did notreveal whether the accusedknew who Mr Papa∏a was.
Aside from the two who arefacing murder charges and
charges of armed robbery,three others have beencharged with armed robbery,including the suspect who gavethe vital testimony in 2011.
Following the killing,many in Poland theorizedthat Mr Papa∏a had been shoton the orders of a criminalgang, or for political revenge.The former police chief waslinked to ex-communists andwas due to start work inBrussels fighting organizedcrime. Several months beforehis death, Mr Papa∏a hadbeen dismissed from his postas police chief by the right-wing government that was inpower at the time.
Those charged with themurder and robbery belongedto a gang that stole hundredsof automobiles in the 1990s.They were all in their 20s whenMr Papa∏a was shot.
In 2007, a US federal courtin Chicago refused a Polishrequest to extradite EdwardMazur, a Polish-Americanbusinessman accused of order-ing Mr Papala’s murder.
GGaarreetthh PPrriiccee
Papa∏a case
Two chargedwith murder of ex-police chief Mr Karski was one of
the first to report onthe existence of Naziextermination camps
US President Barack Obamaannounced in late April thatJan Karski, a Polish WorldWar II resistance fighter, willposthumously be awarded thePresidential Medal of Free-dom, the United States’ high-est civilian honor.
Mr Karski, who died in2000 aged 86, worked as aclandestine officer of the Pol-ish government-in-exile, andwas one of the first people togive an eyewitness account ofthe treatment of Warsaw Jewsby the Nazis after infiltratingthe Warsaw Ghetto. He alsoreported on the existence ofNazi extermination camps.
“We must tell our childrenabout how this evil wasallowed to happen – becauseso many people succumbed totheir darkest instincts; becauseso many others stood silent,”Mr Obama said at the USMemorial Holocaust Muse-um.
“But let us also tell our chil-dren about the RighteousAmong the Nations. Amongthem was Jan Karski, a young
Polish Catholic who witnessedJews being put on cattle cars,who saw the killings, and whotold the truth, all the way toPresident Roosevelt himself,”he added.
After the end of WWII, MrKarski published a book calledthe “Story of a Secret State:My Report to the World” andlater became a professor atGeorgetown University’sSchool of Foreign Service afteremigrating to the US.
“His life story epitomizedhis love of freedom,” MarcinBosacki, a spokesperson for
Poland’s Ministry of ForeignAffairs, said in a statement.
The Medal of Freedom wasestablished in 1963 and hasbeen presented to individualswho have made especiallymeritorious contributions tothe security or national inter-ests of the United States, toworld peace, or to cultural orother significant public or pri-vate endeavors.
Apart from Mr Karski,other Poles honored with thisdistinction include Pope JohnPaul II and Lech Wa∏´sa.
DDaavviidd IInngghhaamm
World War II
Jan Karski honored with USPresidential Medal of Freedom
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Government extendsretirement ageOn April 20, 2012 the government adopt-ed two drafts of new legislation aimed atreforming the retirement system inPoland. One of the drafts involved thegradual extension of the retirement agefrom 65 to 67 for men and from 60 to 67for women. The second draft refers to thelimitation of special retirement benefits foremployees of uniformed services.
Double Taxation AvoidanceTreaty with the CzechRepublicIn the middle of April the Polish presidentsigned an act ratifying a treaty betweenthe Republic of Poland and the CzechRepublic on the avoidance of double taxa-tion. The treaty concerns corporateincome tax and personal income tax.
Criminal recordsavailable onlineOn April 27, 2012 legislation came into forcewhich amended the Act on National Crimi-nal Records, which contains data of per-sons who have been sentenced for crimescommitted and have no right to appeal.
The change to the act is to implementthe decision 2009/316/WSiSW relating tothe establishment of the European Crimi-nal Records Information System (ECRIS).Moreover, it will be possible to submit
motions and requests for informationfrom the National Criminal Records (andreplies to them) electronically.
Every Polish citizen or a member of anyother EU member state, as well as everyperson who is or was residing in one ofthese states, is entitled to submit amotion with a request for informationabout himself/herself contained in thecriminal records of other EU memberstates.
Credit for payment ofdividends is tax deductibleIn the opinion of the Supreme Administra-tive Court (valid judgment of April 3, 2012,court ref. no. II FSK 249/12) when a com-pany gets credit in order to pay a dividend,this should be recognized as a cost con-nected with business activity conductedby the company. This is pursuant to Article15 item 1 of the Act on Corporate IncomeTax. This is because generating profits isthe chief aim of a joint-stock company,and of the shareholders who have boughtstock in the company.
In the opinion of the court, credit con-tracted by a company for payment of adividend in a case where the companyallocated its profits for development andcurrent activity not only secures thesource of income, namely the businessactivity, but also prevents the companyfrom losing its financial liquidity. ●
Public finances
PPMM TTuusskk:: BBuuddggeett ssuurrpplluussbbyy 22001166 ‘‘rreeaalliissttiicc’’The prime ministerand finance ministerare optimistic aboutshrinking the deficit
Prime Minister Donald Tusksaid that Eurostat figuresreleased in April 23 which putPoland’s budget deficit for2011 at 5.1 percent of GDP,less than the 5.6 percentplanned by the government,means that a deficit under 3percent this year and a surplusby 2016 is realistic.
“It is possible that we willachieve a budget surplus inthree to four years. This is veryimportant information,” saidMr Tusk.
Finance Minister Jacek Ros-towski was also happy with thenews, saying, “We have everyreason to be happy with the[Eurostat] result. I must remindyou that many analysts believedthe budget deficit would signifi-cantly surpass our 5.6 percenttarget last year,” said Mr Ros-towski.
In the government’s fiscalconsolidation program, thedeficit is expected to fall to 2.9percent of GDP this year, to 2.2
percent by 2013 and to 1.6 per-cent by 2014.
Although Mr Rostowski wasreluctant to make a predictionabout when Poland’s budgetmight have a positive balance,he said that a “slight surplus”might be possible by 2016 andthat he “doesn’t exclude that itcould happen earlier if there’s agood economic climate.”
Regarding public debt, thegovernment expects it to comein at 50.5 percent of GDP bythe end of this year and to dropunder 50 percent by 2013.
“In favorable conditions, theratio of the public debt [to GDP],according to Polish accounting,may be below 50 percent nextyear,” said Mr Rostowski.
RReemmii AAddeekkooyyaa
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PM Tusk said a deficit under 3 percent is possible
this year
Poland more resistant thanothers in the region: Belka
Despite warnings from theInternational Monetary Fundthat the euro-zone crisis mayspill over to European coun-tries not in the zone, NationalBank of Poland presidentMarek Belka does not expectto see a recession in Polandthis year.
“If the economic situationin Western Europe continuesto slide, Polish exporters willhave a hard time placingexport goods. We have already
anticipated that and, to adegree, we are already feelingthe effect,” said the NBP chiefat the annual conference ofthe IMF/World Bank AnnualSpring Meetings in Washing-ton, DC.
He added that the nextchannel of “infection” is cred-it. “Countries heavily in debt,which include those in ourregion, may fear a sudden cutin financing,” Mr Belkaexplained.
“Poland, both in terms ofsales channels and financialchannels, is a country less vul-nerable to the danger of suchan ‘infection’ than most coun-tries in the region, as indeed itturned out in 2009, when all[EU] countries fell into reces-sion, and [Poland] did not,” hesaid.
“This year, we expect someslowdown, but again nothinglike what would be similar to arecession.” MMOO,, AATT
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NBP president Marek Belka feels that Poland is “less vulnerable” than other EU
countries to a sudden cut in financing
Retail sales andunemployment decreaseRetail sales growth slowed inMarch to 10.7 percent y/yfrom 13.7 percent y/y inFebruary, while the unem-ployment rate dropped by 0.2percentage points to 13.3 per-cent in March. “Stronger salesprior to Easter could havehelped to maintain the head-line figure at a double-digitlevel. Retail sales growth inreal terms in the whole of Q1suggests a stabilization of con-sumer demand growth at alevel close to that seen in Q42011,” BZ WBK wrote in astatement.
The bank assesses the dataas neutral for the rate-settingMonetary Policy Council whendeciding on interest rates, whichhave been left unchanged at 4.5percent since June 2011.
“We expect that the [Coun-cil] will keep interest rates onhold. In our view, it will be dif-ficult to gather a majority to
back a hike at the upcomingMonetary Policy Councilmeeting, provided that NBPgovernor Marek Belka will notsupport such a motion,” thebank wrote.
The unemployment dropwas expected, and is broadly inline with the seasonal trendthat sees hiring increase in thespring.
RRGG,, AAKK
10
11
12
13
14
Mar. '12
Feb. '1
2Jan
. '12
Dec. '11
Nov. '11
Oct. '11
Sep. '1
1Aug
. '11
Jul. '11
Jun. '1
1May
'11Apr
. '11
Mar. '11
Ups and downsPoland's unemployment rate, March 2011-March 2012
Source: Central Statistical Office
Company savings increasingPolish companies are expectedto start saving more in prepa-ration for an upcoming eco-nomic slowdown. These sav-ings will provide a buffer orreserve, which in the comingyears will support the Polish
economy, say economists. “This is a buffer, through
which, if nothing unexpectedhappens, Poland will be pro-vided with decent economicgrowth over the next fewyears,” Rados∏aw Bodys, chief
economist of PKO BP, told thePuls Biznesu daily.
By the end of 2011, Polishentrepreneurs held z∏.203 bil-lion in bank deposits. This isequivalent to 13.3 percent ofPoland’s GDP. RRGG
APRIL 30 – MAY 13, 20128 www.wbj.pl BBUUSSIINNEESSSS
Oil refining
Orlen scraps plan to sellMazeikiai refineryThe company plans toincrease the value of itsLithuanian asset
Polish oil refiner Orlen hasdecided to keep hold of itstroubled Mažeikiai refinery inLithuania, the company’s chiefexecutive said in late April.
“The management recom-mendation is to keep increasingthe refinery’s value and to notcontinue the sale process. Thesupervisory board approvedthis recommendation,” JacekKrawiec told journalists.
Japanese investment bankNomura advised Orlen on itsoptions for the refinery, whichit had for a long time consid-ered selling. In the end, basedon conclusions from Nomura’sanalyses, the company chosenot to sell the asset, since itsperformance has improvedand its debt load has shrunk inthe last couple of years.
Orlen bought the Mažeiki-ai refinery in 2006 for $2.8 bil-lion and has since investedover $700 million in the asset.
Transportation of rawmaterials to the refinery fromRussia via an overgroundpipeline has been stopped
since Orlen made the acquisi-tion. The refinery is now sup-plied with fuel which is firstshipped into Lithuania andthen transported to Mažeikiaiby train, making the produc-tion process much moreexpensive. This is one of themain reasons Orlen consid-ered selling the refinery.
While not ruling out thepossibility of selling the refin-ery in the future, Mr Krawiecsaid Orlen didn’t receive satis-factory offers for the asset.
Orlen Lietuva, whose oper-
ations are centered around theMažeikiai refinery, recordedan operational profit of z∏.73million in the first quarter ofthis year, down z∏.27 millionyear-on-year. The companyplans to process around 9 mil-lion metric tons of crude oil in2012.
For PKN Orlen’s balancesheet, Q1 was a good period. Itearned a net profit of z∏.1.26billion for the first threemonths of 2012, a 15 percenty/y rise due to higher oil prices.
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Energy
Enea joins four state-ownedgiants in search for shale gasAnalysts are divided onthe potential results ofsuch cooperation
Polish utility Enea is set to joinstate-owned giants PGNiG,Tauron, PGE and KGHM inexploring and potentiallyextracting shale gas from Polishdeposits, Poland’s gas monop-oly announced in late April.
“The joint effort of all part-ners will make it possible tointensify the exploration forshale gas,” Joanna Zakrzewska,press officer at PGNiG, said in astatement. The firm is leadingefforts, called for by the Polishgovernment, for state-con-trolled firms to invest and coop-erate in the sector.
Energy provider PGE,energy group Tauron and cop-per and silver miner KGHMsigned three separate letters ofintent with PGNiG regardingcooperation in shale gas proj-ects in January.
Although they bring togeth-er phenomenal investmentcapacities, none of these com-panies has experience in search-ing for or exploiting unconven-tional gas, and some analysts areskeptical that the cooperationwill bear much fruit.
“These companies areforced by the State Treasury;they would most likely neverthink of cooperating with eachother otherwise. Nothing willcome of this,” said ¸ukaszProkopiuk, analyst at DMIDM.
But ¸ukasz Cioch, generaldirector of the Tischner Euro-pean University Centre forEnergy Studies in Kraków, didnot share this skepticism.“Exploring shale gas in Polandrequires a cooperative ap-proach and strong business-focused leadership to leveragethe positive effects of scale
and optimize risk distribution.As private companies inPoland are nowhere near thepotential required, I think thistype of cooperation can bejustified,” said Mr Cioch.
“In many respects, Polandis pioneering shale gas explo-ration in the EU, and, as longas it is business-relevant andnot politically motivated, thistype of joint-venture couldcontribute to an increasinglypositive investment climate,especially for American andCanadian investors,” he ad-ded.
AAlliiccee TTrruuddeellllee
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together for shale gas in Poland
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APRIL 30 – MAY 13, 2012 BBUUSSIINNEESSSS www.wbj.pl 9
Vodka market
RRuussssiiaann SSttaannddaarrdd bbuuyyss ssiizzaabbllee ssttaakkee iinn CCEEDDCC The Polish firm needsthe $100 millioninvestment to financeits debts
Vodka producer RussianStandard, a company ownedby billionaire Roustam Tariko,has decided to invest $100 mil-lion in a stake of around 28percent in Polish alcoholicbeverage company CentralEuropean Distribution Corp(CEDC).
Based on a strategic agree-ment announced towards theend of April, Russian Stan-dard (via Roust Trading) willbuy CEDC shares for $30 mil-
lion and notes for $70 millionthat it can exchange for com-mon shares in the Polish firm.The Russian company alreadyowns 10 percent in CEDC.
Last year the Polish com-pany posted losses of some$1.2 billion, a record for acompany listed on the WarsawStock Exchange.
The Financial Timesreported that CEDC’s expan-sion into the Russian marketin recent years has seen thecompany lose money andforce it to look for newinvestors. The cash injectionfrom Russian Standard willnow allow CEDC to finance
its debts.“After many months of
working on this transaction,[CEDC is] pleased to an-nounce the signing of defini-tive agreements today withRussian Standard for a strate-gic investment that addressesour near term financial obliga-tions,” said William V. Carey,president and CEO of CEDC,in a statement.
“Our partnership withRoustam Tariko and RoustTrading, will not only benefitCEDC from the financial andbusiness side but with MrTariko’s vast experience in theRussian spirits market, he will
represent valuable support formanagement and the board instrengthening CEDC’s posi-tion in the Russian market, aswell as in international mar-kets,” he added.
CEDC is one of the world’slargest producers of vodkaand the largest integratedcompany in the alcohol pro-duction sector in Central andEastern Europe. Its brandsinclude Absolwent, Parlia-ment and Bols.
Russian Standard Vodka isthe world leader when itcomes to sales of original pre-mium Russian vodka.
DDaavviidd IInngghhaamm
PPoolliisshh bbaannkkss sseeee eeaarrnniinnggss rriissee iinn QQ11A number of Polish banksposted year-on-year net profitincreases in the first quarterof 2012, mainly due toimproved margins.
In particular, both NordeaBank Polska and BZ WBKmade strong starts to the year.Nordea’s Q1 net profitincreased from z∏.56.9 millionto z∏.74.5 million year-on-year,while BZ WBK’s net profitrose to z∏.314 million comparedto z∏.270 million in Q1 2011.
“The results for the firstquarter of 2012 are positive… net profit increased bynearly 31 percent comparedto the corresponding periodof 2011,” Nordea Bank wrotein its report.
Tomasz Bursa, an analystat Ipopema Securities, saidthat both Nordea and BZWBK have done exceptional-ly well so far this year.
“They increased theirclient volumes and we are
now seeing the effects of that.Also, both banks have a verylow risk profile, because bothhave very good credit poli-cies,” Mr Bursa said.
Bank Millennium’s Q1profit also rose, but not by asmuch as the profits of BZWBK and Nordea.
In Q1, Millennium earneda profit of z∏.110 million com-pared to last year’s z∏.101 mil-lion.
“Millennium’s Q1 results
were in line with analysts’expectations,” said Micha∏Konarski, an analyst at Wood& Company.
ING Securities analystPiotr Palenik explained thatPolish lenders have seen theirtakings rise due to theirimproved margins.
“What has affected theincreased year-on-year netprofit for banks is theimprovement in margins,which is a result of the
increase in interest rates andreduced competition, as wellas better loan volumes, espe-cially in the corporate seg-ment,” he said.
But although the begin-ning of 2012 has been positivefor Poland’s banking sector,analysts predict that thiswon’t continue after the endof this year.
“The future for the bank-ing sector this year dependson how the economy is going
to behave, and on whether wewill experience an economicslowdown after the Euro 2012soccer tournament,” MrKonarski said.
“I predict that there will bea decrease in the growth rateof profit by the end of thisyear, and next year the bank-ing sector won’t be doing aswell due to economic slow-down and increased creditrisk,” Mr Bursa said.
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Bols is one of the brands produced by CEDC
HHooww ttoo ccoommppeettee iinn EEuurrooppee
APRIL 30 – MAY 13, 201210 www.wbj.pl OOPPIINNIIOONN && AANNAALLYYSSIISS
Philippe Maystadt
I nterest in the European Union’scompetitiveness did not beginwith the euro crisis. Safeguarding
Europe’s advanced position in theworld economy was, after all, a keymotivation behind the creation of thesingle market. Since then, interest inEU competitiveness has risen fur-ther, spurred in particular by thechallenge posed by countries likeChina.
In order to ensure sustainable andinclusive economic growth inEurope, policymakers and the publicmust, above all, regard internationaltrade as a mutually beneficialexchange of goods and services. Pro-ductivity growth and innovation arecritical to reaping the benefits of thisexchange, and, to ensure both, poli-cies that cost European taxpayersnothing are at least as important aspolicies requiring public funds.
Not a zero-sum gameThe first step is to stop viewing inter-national trade as a zero-sum gamethat costs some countries as much as
it benefits others. Obviously, compa-nies within the same industry are indirect competition with each other,and gains in market share by onetend to come at the expense of com-petitors. So it follows that the payrolland earnings of a company will rise ifit outperforms its competitors.
Unfortunately, many peoplebelieve that their country’s prosperityrequires that it outperform othercountries in the same way. Thisunderstanding of international com-petitiveness continues to motivate awide range of policy initiatives,including industrial policies to createand defend “national champions”and support a variety of so-calledstrategic industries.
There are two problems with thisapproach. First, there is little evi-dence to support the view that indus-trial policies enlarge a country’s sharein world trade. All too often, govern-ment interventions based on strate-gic-trade considerations simply pro-vide cover for protecting domesticindustries, which harms other coun-tries – and ultimately the protection-ist’s own economy.
Second, and more important,analogizing companies to countries isdeeply flawed. When a companybecomes more competitive, it crowdsout its rivals; they get nothing inreturn. But when a country becomesmore productive and increases itsexports, it acquires the means to
import more, so other countries’exports rise. Indeed, increasingimports is the ultimate reason for acountry to boost its exports, whereasa company is motivated to outper-form its competitors so that it neverneeds to buy anything from them.
‘Dangerous obsession’Thus, external competitiveness iswhat the Nobel laureate economistPaul Krugman calls a “dangerousobsession” – at least to the extent thatit is based on the company-countryanalogy. But if competitiveness refersto productivity, it remains a meaning-ful concept. Productivity growth andinnovation benefit countries not byhelping them to compete with othercountries, but by enabling them toproduce and consume more, or toproduce and consume the sameamount with fewer resources.
Understanding competitiveness inthis sense is a prerequisite for suc-cessfully designing and implementinga growth agenda for Europe. Indeed,a considerable body of research –pioneered by Harvard economistPhilippe Aghion and his colleagues –suggests that innovation is the keydriver of economic growth inadvanced countries.
This implies, first and foremost,the need to expose companies tostrong domestic and foreign competi-tion. Faced with strong competitionand the threat of extinction, compa-
nies typically try to innovate to sur-vive. The EU would thus do well tocombine budgetary support for R&Dpolicies with competition rules thatkeep companies on their toes, whilegranting successful innovators appro-priate patent protection.
Include servicesIn recent decades, Europe has notmoved vigorously enough on thesefronts, but it is not too late to pick upthe pace. Here, the services sectorholds the greatest promise.
Our everyday experience inclinesus to regard innovation in terms ofmore sophisticated and/or higher-quality goods and productionprocesses. And, indeed, manufactur-ing is arguably an important sourceof innovation and economic growth.But any agenda aimed at stimulatingeconomic growth in Europe mustinclude the services sector.
Indeed, services account for abouttwo-thirds of total value added in theEU economy. In employment terms,the services sector is larger still.Moreover, since the 1990s, outputgrowth in the EU has been primarilydriven by expansion of services.
At the same time, productivitygrowth in the EU’s services sector hasbeen lagging behind developments inthe United States (even given the possi-bility that pre-crisis productivity growthin US financial services was partlynotional). This suggests that there
remains untapped potential to boostinnovation and productivity in Europe.
Of course, the best type of pro-ductivity growth in services resultsfrom innovation that improves quali-ty rather than increases quantity withthe same or fewer resources, notablylabor. Think of health care, educa-tion, and care for the elderly. Produc-tivity growth should not result infewer employees taking care of morepatients, students, and old people.
In raising productivity in services,what economists call “intangible cap-ital” becomes ever more important.Intangible capital results from invest-ment in R&D, but it is also the resultof investing in workers’ skills, organi-zational improvements, betterprocesses, new designs, and so on.
Countries whose services sectorshave made a large contribution toproductivity growth have invested sig-nificantly in intangible capital, point-ing the way to success in boostinginnovation. This is the route that theEU should follow. ●
Philippe Maystadt is a former Min-ister for Economic Affairs, Minister of
Finance, and Deputy Prime Ministerof Belgium. He was president of the
European Investment Bank from2000 to 2011.
Copyright: ProjectSyndicate/Europe’s World, 2012.
project-syndicate.orgeuropesworld.org
A fter the first round of the Frenchpresidential elections on April22, current French President
Nicolas Sarkozy and Socialist Partyleader François Hollande will face offin the second round, scheduled forMay 6. It is not a surprise that thesetwo rivals will meet in this decisive bat-tle. Indeed, since the official beginningof the campaign, the polls have given aclear indication as to who would becompeting in the run-off. The onlytouch of uncertainty in the final weeksbefore the vote was the question ofwho would come in first and whowould come in second. The French,who went to the ballot boxes ratherenthusiastically – the turnout was over80 percent – put Mr Hollande ahead ofMr Sarkozy by 1.5 percentage points.
It now seems highly likely that afterthree failed attempts, the left couldreturn to the Élysée Palace.
Europe by Sarkozy,and by HollandeEuropean issues are the subject of con-troversy in France, and they are usual-
ly included in the pre-election debatesonly with reluctance. This election wasno different: Europe was not at theforefront of the issues that the candi-dates used to lure voters. Taking intoaccount the growing indifference andeven skepticism among the Frenchwhen it comes to the current shape ofEurope, the candidates did what theycould so as not to appear too enthusi-astic about the EU. However, the debtcrisis affecting Europe, the economicslowdown and the discussion on thefuture of Europe meant that the candi-dates could not completely avoid thetopic.
When it comes to Mr Sarkozy’stake on the EU, some key elementsimmediately come to mind. In his view,the EU is a construction in which theEuropean Council (that is, heads ofstate or governments) takes the pre-dominant role and the French presi-dent tries to extract the “hard core” –including countries of the euro area –leaving the rest of countries outside thecenter of decision-making.
It is Europe led by “Merkozy”
(France and Germany) which havechosen austerity as a cure for the euro-zone’s woes. But while fighting forreelection, Mr Sarkozy expanded thescope of his proposals somewhat. He isnot only demanding a debate onwhether the European Central Bankshould take on more of a role in sup-
porting growth, as the left insists, but isalso proposing a reform of the Schen-gen Agreement. That should pleasethe voters of the extreme right whoseleader, Marine Le Pen, opposes thevery concept of the visa-free Schengenarea.
Mr Hollande’s vision of Europe isstill to some extent opaque, as in his
official 60-point electoral plan onlythree points directly touch upon theOld Continent. In principle, the social-ist European discourse was dimmed byone postulate – the need to renegotiatethe so-called Fiscal Compact. Promo-tion of economic growth over austeri-ty is what Mr Hollande wants to focuson. If he is elected, we will see whetherMr Hollande is determined enough totry to change the thinking on how toovercome the crisis or if he will insteadsettle for the declaration on growth,which was added to the Fiscal Com-pact.
Regarding EU decision-making,although his vision not as clear as MrSarkozy’s, Mr Hollande also appearsto be in favor of the intergovernmentalapproach. It should also be noted thatwhat is disturbing and may further hin-der his pursuit of ambitious Europeanpolicy are serious divisions within hisSocialist Party on this issue.
Hollande and PolandA change in the Élysée Palace will notnecessarily mean an immediate break-
through in Polish-French relations. Itstill will be difficult to develop the con-tent of the Strategic Partnership whichwas concluded in 2008, since many ofthe countries’ interests diverge signifi-cantly. Nevertheless, Mr Hollande hasgiven some positives signals which ifclarified and put into practice could leadto an intensification of cooperation.
Mr Hollande has shown greateropenness to cooperation with EUcountries other than Germany, includ-ing Poland. What is noteworthy is thathe specifically mentioned Poland as apossible partner in the context offuture cooperation in the field of com-mon security and defense policy. Also,with regard to the future MultiannualFinancial Framework, Mr Hollanddemands less radical EU spending cutsthan Mr Sarkozy, which seems favor-able from the point of view of Polishinterests. ●
Dorota Liszczyk is an analyst atthe Polish Institute
of International Affairspism.pl
“Externalcompetitiveness is a dangerousobsession”
France’s elections: implications for the EU and PolandDorota Liszczyk
PUBLISHER VALKEA MEDIA SA EDITOR-IN-CHIEF ANDREW KURETH ([email protected]) MANAGING DIRECTOR MONIKA STAWICKA
Editorials are the opinions of WBJ’s editorial board. Other opinions are those of the authors alone. Comments, opinions and letters should be sent to [email protected]. Please include a name and contact information and clearly indicate if they are to be considered for publication.
“It now seems highlylikely that after three
failed attempts, the leftcould return to the Élysée
Palace”
Combining the most in-depth social media knowledge with the sophisticated insights of consumer behavior
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PPOOLLAANNDD IINNVVEESSTTMMEENNTT GGUUIIDDEEW a r s a w B u s i n e s s J o u r n a l ’s s p e c i a l s u p p l e m e n t o n P o l a n d ’s i n v e s t m e n t p o t e n t i a l APRIL 30 – MAY 13, 2012
Polish economic trends
PPoollaanndd,, EEuurrooppee’’ss bbiiggggeesstt ccoonnssttrruuccttiioonn ssiitteeWhile most ofEurope’s economiesseem to be stumblingalong or remain miredin recession, Poland isstill powering forward
During a visit to the UnitedArab Emirates in late April,Polish Prime Minister DonaldTusk encouraged businesspeo-ple from his host country toinvest in Poland, which hecalled “the biggest construc-tion site in Europe” and thecontinent’s “biggest invest-ment.”
The prime minister men-tioned that Poland would bespending some $200 billion oninfrastructure over the nextdecade. He also pointed to thefact that while EU economieshad recorded cumulativegrowth of close to zero onaverage in the last four years,Poland had grown by 18 per-cent during the same period.
Mr Tusk spoke at the UAE-Poland Business Forum whichwas attended by Abdul Rah-man Saif Al Ghurair, thechairman of Dubai-based Al-Ghurair Group and vice presi-dent of the Dubai Chamber ofCommerce and Industry, who
spoke about the future of busi-ness relations between the twocountries.
“Expanding into EasternEuropean markets is a strate-gic priority for the DubaiChamber,” Mr Al Ghurairsaid. “Therefore we have thisforum to discuss the strength-ening of economic relationswith our Polish partners,” he
added.According to April IMF
figures, Poland’s economy isexpected to grow by 2.6 per-cent in 2012 and by 3.2 percentin 2013, making it the leader interms of growth in Central andEastern Europe. The Polishgovernment itself has predict-ed a growth rate of 2.5 percentthis year.
Privatization plans Regarding possible areas ofinterest for Gulf investors, MrTusk mentioned the fact thathis government plans to priva-tize some 300 firms which itcurrently controls. The gov-ernment is expected to contin-ue selling stakes in its listed,large-cap companies, such asPKO Bank Polski, with assets
of $60.5 billion, and insurerPZU, with assets of $16.5 bil-lion. The government will,however, maintain opera-tional control over thesefirms, the Treasury Ministryannounced in its 2012-2013privatization plan releasedearlier this year.
The plan aims to raise $3.2billion in 2012, compared with
privatization income of $4 bil-lion in 2011, and $7 billion in2010.
The Polish governmentowns about $30 billion worthof companies across varioussectors.
The 2012-2013 programcontinues the state’s policy ofselling stakes in large compa-nies and selling controllingstakes in small companies,which has been in place since2008. It includes plans to sellstakes in coking coal minerJastrz´bska Spó∏ka W´glowaand other, unlisted, coal min-ers as well as power utilitiesand hundreds of smaller com-panies.
In addition to the sale of279 companies controlled bythe Treasury, the plan includesthe sale of 15 companies over-seen by the Defense Ministry,four companies overseen bythe Economy Ministry and twooverseen by the TransportMinistry.
OutsourcingPoland’s track record forattracting outsourcing invest-ments is impressive. A largenumber of major Westernmultinationals, including IBM,
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The 10 stepsto setting upa business in Poland
Investment outlook
Investing in CEE attractive for Gulf investors
There are companies and proj-ects in the Central and EasternEurope (CEE) region that cer-tainly have the potential toattract investors from the GulfCooperation Council (GCC) –which includes Bahrain,Kuwait, Oman, Qatar, SaudiArabia, and the United ArabEmirates – in 2012. ManyCEE countries have madetremendous progress during
the last few years and the vastmajority are now well estab-lished economies with highpotential for growth.
In a recent study by Ernst& Young, investors rankedCEE as the third-most attrac-tive investment region in theworld. Companies looking foropportunities in Europe areincreasingly considering theCEE region, due to the factthat it offers dynamic growthprospects, high returns oninvestment and much morestable and predictable growththan crisis-stricken Western
Europe.However, in order to
secure a successful and prof-itable entry into CEE markets,some principles of investmentneed to be followed.
The CEE regionand PolandGermany and Poland’s econ-omies form a bridge betweenWestern Europe and CentralEuropean countries. The CEEregion itself borders the BalticSea in the north of Europe, aswell as the Adriatic and theBlack Sea in the south, and has
a population of over 180 mil-lion (including Ukraine).
The region’s work force iswell educated and technicallyskilled, and labor costs remainvery competitive comparedwith Western European coun-tries. EU structural and cohe-sion funds allocated to CEEcountries for infrastructuredevelopment stand at over€177 billion for the 2007-2013period. Meanwhile the UnitedNations global economic fore-cast predicts average GDPgrowth of above 2.5 percent inCEE this year (with Poland at
4.1 percent), whereas the eurozone is expected to grow byjust 0.3 percent.
The economic volatility ofsome CEE countries during thefinancial crisis did not negative-
Opportunities areexpected to beparticularly bountifulin Poland this year
Alice Trudelle: Prime Minis-ter Donald Tusk was recentlyin the United Arab Emirates,where he signed an agreementon economic cooperation.What are the most promisingsectors for economic coopera-tion between Poland and theUAE? Bo˝ena Czaja: There is nodoubt that there are seriousmeasures undertaken inPoland to stimulate coopera-tion with the whole of theMiddle East. Countries fromthe region are treated with pri-ority. Polish delegations attendvital events organized in theregion to mark Poland’s pres-ence in the region and makebusinesses there aware of whatwe offer.
Apart from the prime min-ister’s visit, November 2011also saw an official delegationof the Polish undersecretary ofstate in the Ministry of ForeignAffairs. PAIiIZ attended theAnnual Investment MeetingDubai in 2011 and will also bepresent at the event this year.
We also organized a trade mis-sion to this year’s GULFOODin February 2012 to presentPoland’s food sector –Poland’s eco-friendly prod-ucts, reasonably priced andadjusted to the region’s tastes,attracted much attention.
Our organization takes anactive part in preparing busi-ness offers for the region. Wedo see great potential for ourentrepreneurs in this wealthymarket, and do not only focuson the big energy projects, buttry to facilitate the entry ofsmaller producers. We helpedgather businesspeople whoaccompanied the prime minis-ter, for example from thetourism industry.
At the moment the tradeexchange between the UAEand Poland varies from $0.3billion to $0.8 billion annually.Some concrete fields of coop-eration are already well-devel-oped. Poland exports cosmet-ics, food products, mechanicaland electric appliances, andnon-precious metals, while
importing aluminum, plasticproducts and textiles.
And what about Saudi Arabia? Undoubtedly the visit of ahigh-ranking figure like theprime minister [who also visit-ed Saudi Arabia at the end ofApril] may hardly be eclipsed
by any event and will certainlystimulate mutual contacts.Which is not to say that theseare nonexistent, since forexample the year 2008 wit-nessed a 10-year record-hightrade volume between Polandand Saudi Arabia.
Talks with Saudi partnersshow that among the potential
sectors which could see themost development in upcom-ing years are chemical prod-ucts, plastics, rubber and glass,the food sector, and the woodand paper industry. There isalso room for products fromPolish ceramics firms, thedefense industry and metallur-gy, as well as opportunities for
cooperation in the fields ofelectrical power, environmen-tal protection and water man-agement.
There are Polish-Saudicompanies established inSaudi Arabia which operate inother fields, such as BIATELARABIA, which is active intelecommunications and IT. In
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Bo˝ena Czaja, deputy president of the Polish Information and Foreign Investment Agency
“We see a greatpotential for ourentrepreneurs in theMiddle East, and wedo not only focus onthe big energyprojects”
WBJ sits down with Bo˝ena Czaja, deputypresident of the Polish Information and ForeignInvestment Agency (PAIiIZ), to discuss Polishefforts to reach out to newer economic partnerssuch as countries in Asia and the Middle East
APRIL 30 – MAY 13, 2012 PPOOLLAANNDD IINNVVEESSTTMMEENNTT GGUUIIDDEE www.wbj.pl 15
the context of Eastern Poland,which we promote, I think weshould focus on the followingsectors: automotive, especiallyluxury cars such as the Leop-ard car [produced by Polishcompany Leopard Automo-bile Mielec]; aviation, and inparticular light and ultralightaircraft, gliders, as well as sub-contracting projects and smallyachts and boats from theMazury region; food, and herein particular dairy products,fruit, honey and sweets.
We are also engaged in thepromotion of Eastern Polandand this year during the 2nd
Eastern Poland BusinessForum in Kielce [on May 24-25] we will focus on the Mid-dle East and India. PAIiIZ iswelcoming guests from theseregions and will make an intro-duction to the country itselfand its investment potential.
Are there other Asian marketsthat you find especially inter-esting and promising forPoland?Yes, let’s not forget that thereis a number of other interest-ing markets in Asia – of courseChina, India, Japan and SouthKorea. As a matter of fact, wehave been organizing Poland’sparticipation in the interna-tional trade fair InternationalFood Industry Exhibition inSeoul within the program to
promote Eastern Poland. We decided to attend the
fair because our trade missionto South Korea last yearproved very, very successful.The food sector, especially,drew a lot of interest in thecountry. Let me underlinehere that Poland has one ofthe most dynamic food pro-cessing industries in EasternEurope.
Even despite the latestcrises, Poland’s exports havebeen growing and even break-ing records – [yearly] growth inPolish food export in 2010reached 17.5 percent and in2011 rose by another 12 percent.
Last year during our mis-sion we were surprised by theinterest in our food. Contractswere signed for export of meatand dairy products, as well aspotatoes – and Eastern Polandis a macro region which has themost intensive potato cultiva-tion in the whole of Poland.
Coming back to Europe, isthere a life for investors afterthe Euro 2012 soccer champi-onships, especially in the
infrastructure sector? Of course there is. Euro 2012only marks the beginning ofthe big infrastructure move-ment in Poland. Together withEU funds and the upcomingbig soccer event we started towork really hard on infrastruc-ture. I am convinced thatinvestors who were attractedto Poland thanks to the eventgained experience, learnedhow the Polish administrativesystem works and may onlyfeel more at home after 2012.
The first investment proj-ects always involve a kind of“learn from your mistakes”process. Further projects mayonly be easier to execute andthus are usually done in amore effective way.
We have to admit that a lothas been done in the prepara-tions for Euro 2012 but thereare still regions and placeswhere infrastructure needs tobe improved. The funds andthe will are there, investorsand time will certainly show usmore and more effects, andEuro 2012 does not necessari-ly have to be involved. ●
“Euro 2012 only marks the beginning of the big
infrastructure movement in Poland”
Key sectors for foreign investors
AutomotivePoland is a leading market for passenger andcommercial vehicles manufacturers and sup-pliers. An outstanding ratio between qualityand cost of labor, and the presence of key auto-motive sub-suppliers are making Poland a veryfavorable investment destination. Fiat, GM,MAN, Toyota and Volkswagen are amongwell-known brands operating in the country.
AviationAlmost every passenger aircraft in the worldhas at least one part made in Poland. Key fea-tures of the Polish aviation sector include over100 certified and trusted sourcing companiesconcentrated in the country’s aviation cluster,where 90 percent of the sector’s productionand employment is located.
BiotechnologyAlthough Poland’s biotechnology industryfocuses mainly on the presentation and distri-bution of imported finished goods, transforma-tion towards a highly advanced biotech sectoris already under way. Among particularly valu-able substances produced in here are clonedantibodies, diagnostic tests and hormones, withbiopharmacology seeing fast development.
BPO/SSCThe CEE has enormous potential in the busi-ness services sector, and Poland is alreadyhome to international services centers in thefields of bookkeeping and finance, IT servicesand in R&D work. Poland’s main advantages -are its favorable investment climate, highlyqualified human resources and the develop-ment of a modern office market.
Domestic AppliancesDomestic appliance factories which haveinvested in Poland are continually developingtheir production lines and the majority of theproducts from the country’s plants are export-
ed. They include LG, Samsung Electronics andWhirlpool.
ElectronicsPoland is the EU’s largest producer of TV sets.The electronics industry’s total output is pro-jected to reach $14.8 billion by 2013, whilePoland’s domestic consumer electronics devi-ces market is expected to be worth $7.6 billionin 2013. Foreign investments range from audiovideo to components, computers and telecoms.
ITThe Polish IT market is the second largestmarket in the CEE, after Russia. Poland is see-ing a rapid increase in domestic demand, andthe presence of global companies such asGoogle, HP, IBM, and Microsoft also confirmthe country’s significance as an investment des-tination for the sector.
Machinery and Steel IndustryThe machinery sector in Poland has beendeveloping very dynamically in recent years. In2009 the value of the sector was already z∏.22.3billion. Growth is now expected at approxi-mately 9 percent annually.
R&DComparing expenditure on R&D in Polandand other EU countries indicates that there isgreat potential for development of the sector.Due to industrial traditions and a well devel-oped scientific environment, Poland offersmany attractive sectors for R&D investments.
Renewable EnergyPoland’s population of 38 million and itsbooming economy have meant demand hasrisen for clean technologies and energy. Thecountry is aiming to reduce its dependence onimports of oil and gas as well as the share ofcoal in its domestic energy production.
SSoouurrccee:: PPAAIIiiIIZZ
HP and UBS have alreadyopened Shared Service Cen-ters (SSC) or Business ProcessOutsourcing (BPO) sites inthe country. In total, over 200companies have chosen tolocate BPO and SSC servicesin Poland and more than40,000 jobs have been createdas a result, according to a 2010report by PwC. In 2011, thevalue of Polish outsourcingexceeded $4 billion.
Poland has a number of keycompetitive advantages whenit comes to attracting out-sourcing contracts. Expertsand investors alike often toutPoland’s skilled, well-educatedand multilingual workforce as
being a major incentive forlarge multinationals.
Poland also offers signifi-cant advantages in other keyareas: It is located in the heartof Central Europe, its popula-tion is the largest in the region,its economy the biggest and itsaverage age is far below that ofthe EU. All this has led to anincreasing number of firmschoosing to locate their servicecenters in Poland.
Shale gasIn recent years, internationalcompanies have also beenflooding into Poland in thehope of striking shale gas – atype of natural gas trapped inshale deposits deep under-
ground. And it’s little wonder.According to a report from thePolish Geological Institute(PIG), Poland’s shale gasreserves stand at between 0.35trillion and 0.77 trillion cubicmeters (tcm).
Although this was about 10times less than the 5.3 tcm esti-mated by the US EnergyInformation Administration(EIA) in April 2011, it wouldstill be enough to cover Polishenergy needs for 25-55 yearsaccording to Treasury MinisterMiko∏aj Budzanowski, whohas called the numbers “con-servative.”
Gra˝yna Bukowska, aspokesperson for energy firmChevron Polska EnergyResources, said PIG’s report“does not change Chevron’splans in Poland. We remaincommitted to exploring poten-tial for natural gas on our con-cession areas.” The US oilgiant plans to drill at leastthree exploratory wells by theend of 2012.
Experts agree that harderdata on Poland’s shale gasreserves will only be availablein three to four years’ time. Atthat point equally importantinformation regarding theactual profitability levels ofproduction is also expected tosurface.
In the meantime, techno-logical breakthroughs could
also be a game changer, saidGrzegorz Pytel, an energyexpert. “Experience showsthat typically once productionstarts, the results are muchbetter than initial estimates. Iexpect in time Polish reservesto be more than 5.3 tcm. Westill can expect a technologicalbreakthrough that could makesome options currentlyunavailable commerciallyviable in the future. If gasprices continue to go up, it willalso change things.”
The Warsaw StockExchange
Poland’s stock exchange isthe leader in the CEE region.As of March 2012 it had amarket capitalization of €125billion, while former CEEpowerhouse the CEESEGexchange in Vienna, is valuedat €74.2 billion and thePrague Exchange at €31.3 bil-lion, according to figuresfrom the Federation of Euro-pean Securities Exchanges(FESE).
When it comes to invest-ment flow, the WSE saw €226million channelled throughthe exchange from March2011 to March 2012. In com-
parison, the Vienna exchangerecorded €7 million for thesame period.
The WSE currently listsover 432 firms and is consid-ered among many economistsas one of Eastern Europe’sbiggest success stories.
Poland’s steady growthand economic resilience cou-pled with the presence ofstrong institutions whichguarantee the rule of law andprotection of private propertymake the country not only aprofitable place in which toinvest but also a secure one.
RReemmii AAddeekkooyyaa
APRIL 30 – MAY 13, 2012PPOOLLAANNDD IINNVVEESSTTMMEENNTT GGUUIIDDEE16 www.wbj.pl
ly impact on private equity (PE)and M&A transactions returns.Poland, as a CEE tiger, is anexample worth elaborating on.A 2011 annual survey on Invest-ment Attractiveness of Europeprepared by Ernst & Youngplaced Poland at the forefrontof the most attractive invest-ment destinations in Europe.The largest economy in theCEE region, Poland has a pop-ulation of over 38 million,which is young and willing towork hard. With high-potentialsectors, such as automotive,electronics, machinery andsteel, as well as pharmaceuti-cals, it is the only EU countrywhose economy has grownthroughout the financial crisis.
What are GCC investorsafter?Laws in GCC jurisdictions donot prohibit their nationalsfrom making investmentsabroad. There are also norestrictions on repatriation offunds by GCC nationals. WhatGCC businesspeople look forwhen they consider making aninvestment varies depending ona number of factors. Historical-ly there was a strong trend forGCC investors to invest in realestate assets locally as well as inthe US or Europe and therewas a significant focus on quick
and high return on investment.But the financial crisis, whichthe GCC region has not beenimmune from, has seen invest-ment interests evolve and shiftinto more diversified models.
According to a recentUNCTAD report, outward FDIfrom Arab countries reached
$169 billion during the periodfrom 2001 to 2010, of which 82percent came from GCC coun-tries. This investment was partof the diversification policies ofGCC countries as they moveaway from established oil andgas markets.
These days, investors fromthe Gulf not only seek politicalstability in investment locations,they are also interested in stableprojected economic growthrates. GCC entrepreneurs havean increasingly long-term focuson acquiring equity or assetswhose value is unlikely todepreciate, even if this meanswaiting a while for a return ontheir investment.
Sectors of interest for GCCinvestors fluctuate from oneinvestor to another quite signif-
icantly. GCC state-owned cor-porations tend to make invest-ments that are in line with statepolicies and the strategies oftheir governments. On theother hand, sovereign wealthfunds and family offices preferto invest in sectors that don’t yetform part of their portfolios, to
minimize investment riskthrough diversification.
Impressive levelsPEs’ fund-raising for the CEEregion reached a significantlevel in 2011. Capital for CEEfunds is still coming from theEU and the US but withincreasing participation of glob-al investors. Sovereign wealthfunds, pension funds and familyoffices have all been partici-pants in the fund of funds rushand are seeking new targets inCEE markets. There are sometop PE houses that will raisenew funds in 2012 as well, suchas Enterprise Investors, which isseeking to raise $700 million forits eighth and newest fund.
PE transactions reachedimpressive levels last year, with
over 40 PE deals closed in theCEE region in 2011. Polandattracted over $1.5 billion of PEinvestment in 2011, followed bythe Czech Republic and Hun-gary at approximately $400 mil-lion each, and Romania andUkraine with some $70 millioneach. Communication, con-sumer goods and retail were thekey sectors of focus for PEs lastyear.
The year 2011 was good forinvestor portfolio exits through-out CEE, with the averagereturn on investment at over100 percent. The Warsaw StockExchange also saw a lot of activ-ity, being the European leaderin terms of the number of IPOsin 2011.
The CEE is also a hot spotfor infrastructure projects with500 road infrastructure proj-ects planned for implementa-tion. Privatization efforts arealso likely to remain stable inthe region this year.
The key CEE sectors withhigh potential for growth are:agri-food, automotive, elec-tronics, insurance, machineryand steel, and pharmaceuti-cals.
2012 CEE marketpreview Numerous investment fundsare seeing more CEE companyowners prepared to discuss a
potential share or asset sale.More than 20 years since thestart of CEE economies’ trans-formation, many local familieswho established businesses inthe 1990s are seeking exit orexternal capital as well asadvice on growth and expan-sion strategies for new mar-kets.
Those CEE countries thatare part of the EU but havekept their local currency suchas Poland, Romania and CzechRepublic, are likely to do thebest in the coming years.
The largest chunk of thisyear is still ahead of us.Aggressive investors focusedon deals valued at over $50million will make their mark.Large deals already in thepipeline and many more in the
works attest to the fact that theCEE market is uniquelyattractive for direct invest-ments.
We are yet to see whichdirection the world will go in2012. For the time beingthough, CEE has the means ofattracting foreign investmentthrough easy access to the EUmarket and relatively lowlabor costs for well-qualifiedprofessionals. ●
Artur Kluz is an attorney,founder of The Hephaistone
Group and partner at Metropoli-tan Capital Solutions.
Izabella Szadkowska is abarrister and solicitor, SeniorAssociate with Al Tamimi &
Company, Corporate Commer-cial Department, Dubai.
Investing in CEE attractive for Gulf investors
Poland, the biggest construction site in Europe
➡ Continued from p. 13
➡ Continued from p. 13
What does the CEE offer? The most potentially attrac-tive CEE investment oppor-tunities that GCC investorsmight consider are: • Fund of funds investments
by sovereign wealth fundsand family offices;
•Direct investment or co-investment in the mostpromising sectors in theCEE, such as automotive,consumer goods, medicalservices and pharmaceuti-
cals;• Large-cap investments in
privatized companies andinfrastructure projects;
• Joint venture and partner-ship cooperation with CEEcompanies looking for glob-al expansion;
• Investors are clearly lookingfor growth in emergingeconomies as mature mar-kets continue to underper-form. ●
“Poland, a CEE tiger, is ranked at theforefront of the most attractive
investment destinations in Europe”
0
300
600
900Listed firms Market capitalization
Warsaw
Stoc
k Exch
ange
CEESE
G - Vien
na
CEESE
G - Prag
ue
CEESE
G - Ljub
ljana
CEESE
G - Bud
apes
t
Bulga
rian S
tock E
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ge
Buch
arest
Stock
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nge
Bratis
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Regional powerhouseMarket capitalization (in € billions) and number of listed compa-nies, CEE stock exchanges, March 2012
Source: FESE
CO
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F F
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KR
/KP
RM
The Warsaw Stock Exchange has become a regional leader
APRIL 30 – MAY 13, 2012 PPOOLLAANNDD IINNVVEESSTTMMEENNTT GGUUIIDDEE www.wbj.pl 17
Media patronage
AIM Congress 2012
Dubai will once again welcome businessleaders, decision-makers from the world’smost prominent financial institutions andpolitical leaders from around the globe forthe second Annual Investment Meeting(AIM) this May 1-3.
AIM is an emerging market-led three-day FDI-focused eventthat includes an executiveleadership conference,country presentations,workshops, site visits, aministerial networkingroundtable and an exhibi-tion.
It is the region’s firstEmerging Markets FDI-focused event to offer aperfect blend of trade fairand intellectual featuresaimed at enriching institu-tional, corporate and indi-vidual investors attendingwith a comprehensive setof guidelines for their future investmentdecisions in high growth regions.
The conference is born from a simpleequation, or rather a succession, of para-digms: the continuous shift in the worldeconomic order post 2008 recession, theprominence of fast-developing countrieson the world stage and the drasticchanges of global investors’ behaviorsand choice of investment destination orvehicles.
In 2011 AIM attracted 2,300 visitorsfrom some 90 countries and saw the com-pletion of millions of dollars worth ofbusiness deals. This year’s event, which isonce again being held at the prestigiousDubai International Convention & Exhi-bition Center (DICEC), a location firmly
established as the largestand most sought-afterevents destination in theregion, is set to be evenbigger and better than in2011.
The stellar triumph ofthe first edition of theAnnual Investment Meet-ing was owed to a multi-plicity of factors stem-ming from the realizationthat there was a missinglink or connector betweenfast-developing economiesregistering record growthwith limited or foresee-
able sovereign risks and confidentinvestors seeking new investment destina-tions.
Poland is set to be represented at AIM2012 by the Polish Information and For-eign Investment Agency (PAIiIZ), as wellas Poland’s only business weekly in Eng-lish, Warsaw Business Journal. Those inattendance will be able to locate the WBJstand at A8 in the main conference hall,with PAIiIZ situated nearby at D3. ●
Paul Fogo is a senior attorney with Miller Canfield. [email protected]
Poland’s public tender requirementsLegal View
The award of public contracts inPoland is regulated by the PublicProcurement Act, originally enact-ed in early 2004 in advance ofPoland’s accession to the EU onMay 1, 2004 (the “Act”). The Actsets forth both the procedures forconducting a public tender, as wellas defining when such proceduresmust be used in awarding publiccontracts. On average in Polandpublic contracts in excess of €35billion in value are awarded annu-ally.
Foreign vs domesticinvestors?Foreign investors are entitled tocompete for public contracts inPoland on the same terms and con-ditions as domestic entities. Specif-ically, the Act requires the publicentity awarding such contract toensure the “equal treatment of eco-nomic operators” (Art. 7(1)). Nodistinction is made betweendomestic and foreign investors.
Public tender requirementsThe Act, in general, applies to allpublic contracts in excess of€14,000 in value including, forexample, those awarded by state
and local govern-ments, coopera-tives, public health-care centers andany other entitieswhich use publicfunds to finance atleast 50 percent of agiven project. Stateagencies that do nothave “legal person-ality” are also sub-ject to the Act, suchas national forests.Real property andtelecommunicationcontracts, by con-trast, are not subject to public ten-der requirements, and are insteadgoverned by different regulationsspecific to each sector. Moreover,contracts related to the perform-ance of an international obligationor labor issues are similarly exemptfrom the Act. Defense-related con-tracts may or may not be subject toPoland’s public procurement regu-lations, depending on the nature ofthe contract.
Public contracts may be awardedby one of six tender procedures,depending on the nature of the ten-der. The six include (1) open ten-
ders, (2) restricted tenders, (3)negotiated with publication, (4)competitive negotiations, (5) nego-tiated without publication and (6)single-source. The public entityadministering the tender retainssome discretion on the choice oftender. For instance, a tender maybe restricted to only those bidders,regardless of the value of the ten-der, who are able to meet specificeligibility requirements set by theterms of the tender. Additionally,the option exists to submit bids viathe internet in certain cases. Themost common tender procedure is
that of an opentender, by whichall interestedparties may sub-mit an offer. Forcontracts thatrequire spe-cialized services,expertise ort e c h n o l o g i c a lknow-how, themore limitedtypes of tendersmay be utilized,such as the nego-tiated, competi-tive and single-
source procedures. Generally, public contracts
involving the sale of goods or serv-ices up to €130,000 in value mayutilize simplified tender proce-dures, and thereby avoid the needto follow all public tender require-ments, including the need to post abid deposit. However, the publicentity retains the right to requiresuch a deposit at its discretion.
Information on the internetEU regulations require public ten-der announcements to be pub-lished in the Official Journal of the
European Union if the value of thetender exceeds €130,000 withrespect to the sale of goods or serv-ices and €5,000,000 with respect toconstruction services. Current ten-der announcements throughoutthe EU can be viewed on the EU’spublic tender website:ted.europa.eu. On any given dayhundreds of tender announce-ments are published on the web-site. Public tenders in Poland hav-ing a smaller value are publishedlocally in the Public ProcurementBulletin, which can be viewed atbzp0.portal.uzp.gov.pl.
Time framesThe Act imposes various timeframes in which a tender mustremain open. Tenders worth up to€60,000 must remain open for atleast 15 days. Tenders in excess of€60,000 must remain open for atleast 52 days following publicationin the Public Procurement Bul-letin. The time frames are some-what shorter for restricted ten-ders. ●
The author wishes toacknowledge Marcin Zak in
the preparation of this article.
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Ten steps to setting up a business in PolandWant to establish abusiness in Poland?Here are the ten stepsyou need to follow,according to experts atPwC
Step 1: Notarize thecompany agreement • Time to complete: 1 day • Cost to complete: z∏.1,010
notary fee + 0.5% overz∏.60,000 + 22% on top ofnotary’s fee (VAT) + 0.5%of share capital (civil lawtransaction tax)
The statute (joint-stock com-pany) or the articles of associ-ation (limited liability compa-ny) must be duly signed anddrawn up in the form of anotarial deed.
The statute of a joint-stockcompany should contain thefollowing: • business name and company
seat; • type of activity; • duration of the company, if
limited;• amount of share capital,
capital paid-in before regis-tration, the nominal valueof the shares and their num-ber, the indication whetherthey are registered shares orbearer shares;
• number of each type ofshares and rights associatedwith specific share types, ifapplicable;
• names and addresses of thefounders;
• number of members of themanagement board andsupervisory board, or atleast a minimum or a maxi-mum number of the mem-bers and a person author-ized to appoint the mem-bers;
• a newspaper/periodical for
publishing announcements,if the company intends topublish announcementsoutside of the Court andEconomic Monitor (Moni-tor Sàdowy i Gospodarczy).
The articles of association of alimited liability companyshould contain the following: • business name and company
seat; • type of activity; • duration of the company, if
limited;• amount of share capital;• information as to whether a
shareholder is entitled toone or more shares;
• number and nominal valueof shares subscribed for byindividual shareholders.
Step 2: Establish thecompany’s address• Time to complete: 1 day
(lease contract); up to 2months (a purchase of realestate)
• Cost: upon negotiations
The company should have itsseat – a registered office inthe territory of Poland. At thebeginning, investors prefersigning a lease or rental con-tract with a landlord, which isoften a company professional-ly offering a room and admin-istration of incoming corre-spondence. Acquiring realestate is a more complex pro-cedure. A contract of pur-chase of real estate or perpet-ual usufruct (a quasi-owner-ship of real estate belongingto the state or local communi-ty) must be made in the formof a notarial deed, withoutwhich it is invalid. A foreignermay purchase real estate orperpetual usufruct only after
receiving permission from theMinistry of Internal Affairsand Administration (afterasking for permission fromthe Ministry of Defense and,in the case of farmland, alsoafter consultation with theMinistry of Agriculture). Thismay take up to two months.
Step 3: Register thecompany in the NationalCourt Register (KrajowyRejestr Sàdowy) • Time to complete: 7-14 days • Cost to complete: z∏.500
(registration fee) + z∏.500(announcement fee)
The next step is to submit anapplication for registration inthe Register of Entrepreneursin the National Court Regis-ter. The applications must besubmitted to the regional eco-nomic departments of the
National Court Registerwhere the seat of the compa-ny is located. The application,signed by all managementboard members, should besubmitted with the followingdocuments attached: • the statute or articles of
association; • documents appointing the
members of the company’sgoverning bodies;
• a statement of all membersof the management boardthat the contributionstowards initial capital havebeen made by all sharehold-ers in full (limited liabilitycompanies) or paymentstowards shares and non-cash contributions asrequired under the statutehave been made in a lawfulmanner (joint-stock compa-nies);
• a list, signed by all members
of the management board,giving the names of theshareholders (individualsand companies) and thenumber and nominal valueof shares held (limited lia-bility companies);
• surnames and forenamesand addresses of the man-agement board members(limited liability compa-nies);
• specimens of the manage-ment board members’ sig-natures, certified by anotary or made in person inthe presence of the court;
• notarial deeds on establish-ing the company and on thesubscription of shares(joint-stock companies);
• a receipt for the payment ofshares, certified by a bankor an investment company.If there are contributions inkind to be made after theregistration, a statementfrom all members of themanagement board that thecontributions are ensured isrequired by law (joint-stockcompanies);
• a document confirming thecompany’s right to use thepremises or immovableproperty where its seat islocated.
According to the Act on theNational Court Register,along with the application forregistration in the Register ofEntrepreneurs in the NationalCourt Register, the applicantshall also submit:• an application for an entry
in the National OfficialRegister of Economic Enti-ties (REGON) (see Step 4);
• registration as a payer ofinsurance contributions (asdefined by the provisions ofthe social insurance system)(see Step 8);
• an application to assign a
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Notes: WND = Would Not Disclose.
BUSINESS ORGANIZATIONSOrganization nameAddressTel./FaxE-mailWeb page
Number of member
companies
Membership fee (zł.)
Registration fee (zł.) Market sectors Services Year founded
Top local executive /
Title
Business Centre ClubPl. Żelaznej Bramy 10, 00-136 Warsaw22 625-3037/22 [email protected]
2,500 Varies None All sectors
Providing economic law information (Polish and EU); promotion and advertising; spokesperson in crisis situations; advice and consulting on economic law, tax, manager training, 2007-2013 EU funds, legal transformation of companies, cost reduction, recruitment and selec-tion, restructuring; representing companies’ interests; partner and contractor acquisition intermediation; posting and dissemination of
Representation of members’ rights and interests; public relations management; support for Polish employers and entrepreneurs
acquiring EU funds; economic consultancy; legislative applications; market research; legal advice; expertise; representation of Polish
entrepreneurs in EU institutions; training sessions
1989 Andrzej MalinowskiPresident
Foreign Investors Chamber of Industry and Commerce in Polandul. Pańska 73, 00-834 Warsaw22 314-7575/22 [email protected], www.izbainwestorow.pl
WND 2,800 1,000 All sectors
Legal, fi nancial and organization consultancy; member representa-tion before state authorities; meetings with state representatives, politicians, etc.; training; discount system; “Inwestor Zagraniczny”
– quarterly
1989 Marcin GurdaGeneral Director
Polish Business Club Association Public Benefi t Organizationul. Rzeźbiarska 80, 04-620 Warsaw22 815-2200/22 [email protected], www.pkb.org.pl
153 2,400 100 Industrial and commercial sectors Export support; training; facilitating new commercial contacts; orga-nization of fairs and conferences; promotion; public relations services 1990 Andrzej Arendarski
President
Polish Chamber of Commerce of Importers, Exporters and Cooperationul. Św. Marcin 80/82, 61-809 Poznań61 851-7848/61 [email protected], www.pcc.org.pl
Economic law lobbying; giving opinions about legal projects and budget; representation for Tripartite Commission; negotiations with trade unions; representation of Polish entrepreneurs in European
institutions; support of day-to-day activities of members; workshops; trainings; conferences; contact with Polish and foreign experts
1999 Henryka BochniarzPresident
tax identification number(NIP) to the company (seeStep 6).
The court of registration willsend the aforementionedapplications, notifications andregistrations not later thanwithin three working daysfrom the day on which theentry is made. It must sendthem to:• the statistical office of the
voivodship in which thecompany has its seat;
• the head of the tax officeindicated by the company.
Having obtained informationregarding the assigning of aNIP number to the company,the court of registration willsend the registration as apayer of insurance contribu-tions (as defined by the provi-sions of the social insurancesystem) to the appropriateregional unit of the SocialInsurance Institution (Zak∏adUbezpieczeƒ Spo∏ecznych).
Step 4: Apply for aREGON identification
number • Time to complete: 1 day • Cost to complete: no charge
The REGON number isissued by the statistical office,free of charge and usuallystraight away.
Step 5: Open a bankaccount • Time to complete: 1 day • Cost to complete: no charge
(depending on the bank)
As required by Polish law,every company is obliged tohave an account with a Polishbank. In order to open anaccount the company shouldpresent, depending on thebank, at least the statute andnotarial deeds on establishingthe company and on the sub-scription of shares, or the arti-cles of association and speci-men signatures.
Step 6: Obtain a taxidentification number(NIP) • Time to complete: up to 4
weeks
• Cost to complete: no charge
In order to benefit from VATdeductions and issue invoices,the company must have a taxidentification number (NIP).The following documentsshould be filed in order toobtain a NIP: • statute or the articles of
association; • documents confirming legal
title to premises or realestate on which the compa-ny’s seat is located;
• bank account agreement.The account book should bekept in Polish using Polishcurrency (z∏oty, PLN).
Step 7: Register for VAT• Time to complete: 1 day • Cost to complete: z∏.170
The company is obliged toregister for the purposes ofVAT before conducting itsfirst VAT-covered businessactivity. If the company plansto conduct any activity involv-ing the intra-Community sup-ply of goods or services, it isobliged to register as a VAT
EU remitter.
Step 8: Register withthe Social InsuranceInstitution (ZUS) • Time to complete: 1 day • Cost to complete: no charge
Within seven days of theemployment of its firstemployee, the employershould be registered at theSocial Insurance Institution asa payer of insurance contribu-tions. Further, each employeeshould be registered by theemployer as an insurance con-tribution beneficiary withinseven days as of the date ofhis/her employment.
The registration documentsshould be filed with the ZUSinspectorate responsible forthe employer’s business loca-tion.
Step 9: Notice to Nation-al Labour Inspectorate(Paƒstwowa InspekcjaPracy) • Time to complete: 1 day • Cost to complete: no charge
Within 30 days of the launchof its business activity, theemployer is obligated to noti-fy in writing the labor inspec-torate office pertinent for theemployer’s business location.The notification shouldinclude information on thelocation, type and scope ofthe business. An update of thenotification should be filed ifany of the data changes, par-ticularly changes in the com-pany’s technological or pro-duction profile if this changecould influence employees’health. The notification canbe filed via an e-form avail-able on the inspectorate’swebsite.
Step10: Notice to ChiefSanitary Inspectorate(Paƒstwowa InspekcjaSanitarna) • Time to complete: 1 day • Cost to complete: no charge
Within 30 days of the launchof its business activity, theemployer is obligated tonotify in writing the sanitaryinspectorate office pertinent
for the employer’s businesslocation. The notificationshould include informationon the location, type andscope of the business. Anupdate of the notificationshould be filed if any of thedata changes, particularlychanges in the company’stechnological or productionprofile if this change couldinfluence employees’ health.The notification can be filedvia an e-form available onthe inspectorate’s website. ●
Material for this article isreprinted from Warsaw Busi-
ness Journal’s Investing inPoland 2012.
APRIL 30 – MAY 13, 2012PPOOLLAANNDD IINNVVEESSTTMMEENNTT GGUUIIDDEE20 www.wbj.pl
Glossary of useful Polish terms for investorsBurmistrz, Prezydent, So∏tys – MayorWhile the English word “mayor”describes the elected head of any cityor town, regardless of its size, Polishmakes a distinction. A major of anurban area like Warsaw or Kraków hasa prezydent, while a mid-sized town willhave a burmistrz. Villages are headedby a so∏tys.
Kodeks Spó∏ek Handlowych – Commercial Companies Code The Commercial Companies Code isthe legislation that regulates the legalforms in which entities may conducteconomic activities. It also regulatesthe manner of the day-to-day func-tioning, restructuring and the liqui-dation of companies.
Krajowy Rejestr Sàdowy (KRS) – National Court RegisterThe KRS is a public register run by theMinistry of Justice. It comprises threedifferent registers: a register of entre-preneurs; a register of associations,
voluntary and professional organiza-tions, foundations and public institu-tions of social service; and a bankrupt-cy register. All new businesses mustregister with the KRS.
Numer Identyfikacji Podatkowej (NIP) –Tax Identification Number A NIP is a 10-digit identifier whichallows tax to be paid. All individualsand economic entities must possessone. It is assigned by the Tax Office.
Paƒstwowa Inspekcja Pracy – National Labor InspectorateThe National Labor Inspectoratesupervises and inspects the obeisanceof labor law in Poland. It is subordinateto Parliament. Among other powers,the Inspectorate has the right to con-duct inspections of all employers andof entrepreneurs who are not techni-cally employers but “have natural per-sons perform work for their benefit.”
Powszechny Elektroniczny System
Ewidencji LudnoÊci (PESEL) – Universal Electronic System forRegistration of the Population A PESEL number is the equivalent ofa REGON number for physical per-sons. It is an 11-digit statistical identifi-er which conveys four pieces of infor-mation: birth date, personal identifiernumber, gender and a “control digit.”
Rejestr Gospodarki Narodowej(REGON) –Register of the National Economy A REGON number is a nine-digit sta-tistical identifier for businesses issuedby the Central Statistical Office(G∏ówny Urzàd Statystyczny, GUS). A14-digit REGON number is issued tolocal entities whose main branches arelocated elsewhere in Poland.
Umowa o dzie∏o – Contract for specific task A contract for specific task relates tothe performance of a specifictask/work and is primarily attractive
for employers because the tax andinsurance contributions are lower thanwith an employment contract.
Umowa o prac´ – Employment Contract The “standard” type of a contract forthe performance of work in Poland isan employment contract. All types ofemployment contracts require theemployer to bear significant tax andsocial security contributions.
Umowa zlecenia – Contract of mandateThis is a popular form of independentcontractor (non-employment) agree-ment. The key difference between thisand an umowa o dzie∏o is that it is usu-ally for the performance of one specif-ic task, such as that of a craftsman.Whether an umowa zlecenia is suitabledepends on the type of project orwork, but it may serve for a longerperiod of time and involve repetition.
Województwo – Voivodship
Voivodships are the largest adminis-trative divisions in Poland. Eachvoivodship has a popularly electedVoivodship Council (sejmik wojew-ództwa) which holds four-year terms.The number of councilors on eachvoivodship council varies by voivod-ship. There are 16 voivodships inPoland today, the outcome of a 1999reform. Between 1975 and 1998Poland comprised 49 voivodships.
Zak∏ad Ubezpieczeƒ Spo∏ecznych (ZUS)– the Social Insurance Institution ZUS, which is controlled by the Min-istry of Labor, runs Poland’s socialsecurity system. Its responsibilitiesinclude pension and disability pay-ments, as well as collecting andaccounting for contributions to theNational Health Fund, the LaborFund and the Guaranteed EmployeeBenefit Fund. Employers whose work-ers are employed under full employ-ment contracts are required to makeZUS contributions. ●
CHAMBERS OF COMMERCENameAddress
Tel./FaxE-mailWebsite
Top executive
American Chamber of Commerce in Polandul. E. Plater 53, 00-113 Warsaw
LLOOKKAALLEE IIMMMMOOBBIILLIIAAW a r s a w B u s i n e s s J o u r n a l ’s w e e k l y s u p p l e m e n t o n r e a l e s t a t e , c o n s t r u c t i o n a n d d e v e l o p m e n t • APRIL 30 – MAY 13, 2012, LI 17/17-18
First tenants at
KonstruktorskaUnited Technologies
Corporation’s (UTC) OTIS
and Carrier are the first
tenants in developer HB
Reavis’s Konstruktorska
Business Center office
project in Warsaw. The
companies will take up a
total of 2,300 sqm in the
scheme in April 2013. The
tenants signed the
transaction with HB
Reavis for over 10 years.
Talks are currently
underway regarding an
additional 500 sqm that
other UTC companies
could potentially take up
at Konstruktorska
Business Center.
Construction on the
investment, which will
provide more than 48,000
sqm of leasable space,
started in April last year
and is scheduled to finish
in Q1 2013.
Saturn leases
at Europa
CentralnaElectronic goods retailer
Saturn has leased 3,750
sqm of space in Helical
Poland’s Europa Centralna
retail park in Silesia,
becoming, next to Tesco,
Castorama and Jula, an
anchor tenant in the
67,000-sqm scheme. “We
are delighted to have
attracted Saturn to Europa
Centralna. The brand has
a wonderful profile and
reputation in electronic
retailing in Poland and is
an important part of our
commercial offer,”
stated Peter Evans,
leasing director at
Helical Poland. ●
InterContinental sale . . . . . . . .21
Azora buys offices . . . . . . . . . .21
New regional mall . . . . . . . . . .21
Apricot interview . . . . . . . . . . .22
Property-related stocks . . . . .22
Historic property . . . . . . . . . . .23
Chmielna Park construction . .24
Unidevelopment in Poznań . . .24
Sustainable building . . . . . . . .25
Skanska’s Green Towers . . . . .25
Concept Tower certification .25
In this issue
2322
Apricot Capital Group is planning a number of newprojects in Warsaw
The Polish market offers lots ofopportunities to invest in historicproperty
Investment market
WWaarriimmppeexx ttoo sseellll 5500%% ssttaakkee iinnWWaarrssaaww’’ss IInntteerrCCoonnttiinneennttaall hhootteellThe company plansto finalize the dealfor the prime facilitybefore the end of2012
Developer Warimpex hasannounced plans to sell its 50percent stake in the Inter-Continental hotel in down-town Warsaw.
In a statement, the com-pany said the transaction willbe finalized before the end ofthis year.
“The transaction will havea very positive impact on theresult and the liquidity of thecompany in 2012,” the com-pany wrote.
However, Warimpex’s re-gional director ChristophSalzer told Lokale Immobiliathat a confidentiality agree-ment forbids him fromrevealing who the potentialbuyers are or how much thetransaction would be worth.
“What I can say is that theInterContinental is a won-derful hotel. It has alwaysbeen part of our business tosell hotels from time to time
to generate equity for newprojects,” Mr Salzer added.
Mr Salzer also said thatthis is not a sign that Warim-pex is backing out of the Pol-ish market.
“The Polish market is thethe most important marketfor us,” he added.
The remaining 50 percentstake belongs to Austrianbuilding and development
company UBM.“We are not interested in
buying Warimpex’ stake,”Katarzyna Szumaƒska-Kal-isz, a spokesperson for UBMtold Lokale Immobilia.
The five-star hotel is situ-ated in the heart of Warsawon ul. Emilii Plater. The facil-ity offers 326 guest rooms and75 luxury Residence Suites.
IIzzaabbeellaa DDeeppcczzyykk
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The five-star hotel is situated in downtown Warsaw
Spanish investment fundAzora Europe has boughtthree office buildings from Pol-ish developer Eko Park for €54million. Together, the buildingscomprise Harmony OfficeCenter II, and are part of the
Millennium Park complex inWarsaw.
Harmony Office Center IIis situated in Warsaw’sMokotów district and includesthree class-A office buildingswhich have a combined area of
18,100 sqm. Two of thesebuildings are occupied by Mil-lennium Bank Polska.
The developer of thesebuildings was NSB, a companywhich belongs to the Eko Parkgroup.
Harmony Office Center IIis the sixth acquisition made byAzora Europe in the office realestate sector in Central andEastern Europe, and theirthird acquisition in Warsaw.
Together with the Harmony
Office Center II, AzoraEurope has eight real estateproperties in Poland and onereal estate property in Prague.Their combined value is esti-mated at €190 million.
IIzzaabbeellaa DDeeppcczzyykk
Azora buys three office buildings in Warsaw
CBRE has been named theexclusive marketing and leas-ing agent for a new shoppingmall in Tarnowskie Góry, Sile-sia voivodship, that will bebuilt at the site of the city’sexisting Gwarek wholesale
center. The investor behindthe project has not yet beenrevealed.
The planned development,which has been designed by thevsf-creative studio, will com-prise 23,000 sqm of space with
approximately 75 retail unitsand will be the first project ofits kind in Tarnowskie Góry.
Construction on the newshopping center is scheduledto launch at the end of the sec-ond quarter of 2013. Tenants
of the planned mall willinclude supermarket operatorMarcPol which will occupy3,000 sqm in the development.
“The center is in a verygood location with a long com-mercial tradition, which will
certainly be an additional assetthat speaks in favor of visitingthe place,” MagdalenaFràtczak, retail space depart-ment director at CBRE, saidin a statement.
AAddaamm ZZddrrooddoowwsskkii
CBRE named agent for new Tarnowskie Góry mall
APRIL 30 – MAY 13, 2012LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE22 www.wbj.pl
DHL leases
from PrologisDHL Exel Supply Chain
has leased 33,800 sqm at
developer Prologis’s
Prologis Park Dàbrowa
distribution center in
Dàbrowa Górnicza,
Silesia voivodship. The
transaction was
facilitated by CBRE.
“The new lease
agreement with DHL
reflects our high-quality
industrial offering and
ability to fulfill the
requirements of the
largest players in the
global market,” Micha∏
Czarnecki, vice president
for leasing and
development in Poland at
Prologis, said in a
statement.
SEGRO secures
tenants
Industrial developer
SEGRO has secured
logistics solutions
provider DB Schenker
Logistics as the first
tenant at its SEGRO
Logistics Park Gdaƒsk in
northern Poland. The
company has also
recently signed conveyor
manufacturer FlexLink
for its Tulipan Park
Poznaƒ project in
western Poland. ●
Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value
Adam Zdrodowski: ApricotCapital Group entered Polandin 2007 and has recentlylaunched its first office proj-ect in Warsaw. Have you beenwaiting for the right momentto start building or did youneed that time to develop yourbusiness in the country?Agnieszka Jaworska: Our ideain 2007 was to buy cheap plotswithout an approved planningdecision or master planbecause we did not want tocompete with other develop-ers paying market prices.
In 2008, we sold our retailproject on ul. Radzymiƒska [inWarsaw] to Kaufland super-markets before the financialcrisis and since then we havejust been obtaining permits forour plots in ˚oliborz andMokotów and securing moreplots for future projects.
Your first Polish project islocated in an area of War-saw’s ˚oliborz district thathas until recently been mostlyassociated with industrialspace. Do you think the neigh-borhood could become an
attractive office location in thenear future?We believe that ˚oliborz isalready a very attractive loca-tion for offices. It doesn’t suf-fer from traffic problems andthe access to the city center ismuch better than fromMokotów, for example. Welike this project so much thatwe are actually planning tokeep the building for our ownfund.
How many apartments will bebuilt within the residentialpart of the ˚oliborz projectand when will construction onthose housing units launch?The residential part of the˚oliborz project, called “˚o-liborz Park,” will comprise350 apartments. The com-plex has a valid building per-mit and we are currentlypreparing a tender for a gen-eral contractor. We plan todeliver the first phase at theend of 2013.
Apricot is also planning anoffice building on ul.Domaniewska in Warsaw’s
Mokotów district. Can youreveal any more details?We will develop an office com-plex of around 32,000 sqm ofGLA and it will have the max-imum [number of] parking[spaces possible] in the wholearea. The disadvantage of thatpart of Mokotów is that com-petition is huge and a lot ofprojects have been deliveredrecently or are under construc-tion, which has made rent lev-els fall.
The main advantage is thatI find most of the projectsbeing built in the area to bereally similar and as if theywere designed 10 years ago.We will have the concept forour project in around threemonths and our building willbe a landmark for the wholearea. We think that top com-panies will prefer to pay €1more in headline rent and stayin a unique place.
Where will Apricot’s plannedretail project in Warsaw belocated? How large will theinvestment be, what will itsformat look like, and whencould construction start?We are planning a 30,000-sqm retail park on the east-ern side of the Vistula.Again, it will be different
from anything seen in War-saw. It will be composed ofretail boxes of 150 sqm ofspace on two floors and theywill be for sale or for rent. Itwill look like a luxury versionof the retail park on ul. Bar-tycka [in Warsaw].
Are you considering moreland acquisitions in Warsaw?If so, for which kinds of proj-ects and in which locations?We are currently in negotia-tions with a big multinationalfirm for whom we will con-
struct a built-to-suit office andwarehouse project in Warsaw,and we are also very interestedin office projects on the east-ern side of the Vistula.
Are you planning expansionto other Polish cities?For outside Warsaw, we areonly interested in joint ven-tures for retail projects withcompanies that need an equitypartner but have a ready proj-ect. We won’t develop any-thing by ourselves outsideWarsaw in the short term. ●
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Apricot Capital Group has recently launched construction
on its first office project in Poland (vizualization above)
Lokale Immobilia talks to Agnieszka Jaworska,development manager at real estate developerand manager Apricot Capital Group, about thecompany’s plans for the Polish market
APRIL 30 – MAY 13, 2012 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 23
Historic property
AA ttiimmeelleessss aappppeeaall
The Polish marketoffers some jewels forinvestors who arepatient and lovehistoric properties
The International Day forMonuments and Sites was cel-ebrated around the globe onApril 18 to promote awarenessof the world’s cultural heritageand to point to the need for itsprotection and preservation.
In Poland, where manypieces of historic propertywere neglected or ruined dur-ing the communist era, a largenumber of manors and palacesstill await investors who wouldbe able to help restore thebuildings’ original character.
The country has already wit-nessed successful renovationsof historic structures, as well asthe establishment of prosper-ous private businesses on thegrounds of many such premis-es. Arguably, many more suchopportunities exist for thosewho are not put off by thepotentially time-consumingand costly renovation process.
From palace to hotelA Polish-American couple,
Marzenna and Kehrt Reyher,recently opened a boutiquehotel in an 18th-centurypalace located in the village ofNak∏o in the Silesia region,which they purchased 10 yearsago.
Just before that, the Rey-hers accidentally came acrossan old estate north of Warsawwhile on a Sunday drive adecade ago. A conversationwith a real estate agent whowas at the site sparked offtheir interest in historicalproperty and soon afterwardsthey began to search for an oldbuilding to invest in.
Having considered approx-imately 10 pieces of historicalproperty, the couple decidedto buy the Nak∏o palace,whose design they liked fromthe very beginning and whichwas smaller than the otherestates they had seen.
“Only mega-millionairescan afford to keep a place suchas this as a private home. Weknew from the beginning thatwe’d have to develop somebusiness around it and, obvi-ously, that’s the hospitalitybusiness,” Mr Reyher said.
“It’s about renting rooms,yes, but more importantly
about developing the propertyfor social events such as wed-dings, anniversary celebrationsand the like. We’re operatingas a B&B now but we’re devel-oping a second building whichwill allow us to expand intohosting local events,” headded.
Mr Reyher admitted thatinvestment in historical prop-erty meant additional workand costs that the building of anew structure would not haveinvolved. The historical palacehad to be thoroughly renovat-ed, with parts of the buildingshaving been stabilized andstrengthened.
“It’s certainly differentfrom new construction,” hesaid. “Renovating old floors,ovens, fireplaces, doors andcrown molding is much morecostly than buying new. Ofcourse, we installed a moderncentral heating plant and allthe plumbing, electrical instal-lations, etc, is entirely new,”Mr Reyher added.
According to Mr Reyher,the cooperation with the his-toric preservation authoritieshas generally been good. Theauthorities’ main concern isthat the facade of the palace
and certain interior featuresstay as true to the original aspossible.
“We obviously had to makeadjustments to the floor plan,to provide for bathrooms, forexample, and we had no realproblems making those adjust-ments,” Mr Reyher said. Headded that the authoritieshave proven to be pretty flexi-ble.
The Reyhers hired a pro-fessional construction engi-neer to ensure they stayedabreast of the regulations andto take care of the necessaryadministrative permits.
“The historic preservationauthorities have more andmore understanding when pri-vate investors are involved insuch projects; they understandthat historic buildings musthave new functions and thatthe costs are high,” Mr Reyhersaid.
Historic bargainsAccording to a recent reportby real estate advisory HomeBroker, the Polish marketoffers a number of interestingpieces of historic propertywhich, mostly due to the factthat they require renovation,can be acquired at a relatively
low price.The study mentioned,
among other things, a 330-sqm19th-century watermill nearBielsko-Bia∏a that costsz∏.450,000 and a 1,100-sqm19th-century forester’s lodgefor which the owner hopes toreceive z∏.950,000.
Generally, historical estatesare priced in proportion to thecondition they are in, since theprocess of renovating such aproperty usually requires con-siderable financial outlays, theHome Broker study said.
Currently available in themarket, for instance, is a reno-vated 18th-century woodenmanor near Kraków whoseoffer price is z∏.2.5 million anda well-preserved palatial com-plex, located in Kujawsko-Pomorskie voivodship anddating back to 1800, that can
be bought for nearly z∏.3 mil-lion.
Financing problemsAccording to Home Brokeranalysts, buying historic prop-erty and using it for businesspurposes can be a profitableinvestment. However, thepotential investor is likely toexperience problems withsecuring bank financing forthe planned purchase, espe-cially if the property in ques-tion is to be used as the collat-eral.
“Banks are wary of such col-laterals as they see them asbeing illiquid. This is why mostof them will refuse to grantfinancing for such a purchase orwill offer a double margin,” saidGrzegorz Chojnacki, a HomeBroker advisor in Warsaw.
AAddaamm ZZddrrooddoowwsskkii
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A renovated 18th-century wooden manor near Kraków,
priced at z∏.2.5 million
APRIL 30 – MAY 13, 2012LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE24 www.wbj.pl
The first phase of theinvestment will deliver55 apartments by thethird quarter of 2013
Warsaw Stock Exchange-listeddeveloper Inpro has launchedconstruction on its ChmielnaPark multifamily residentialproject in Gdaƒsk, on theBaltic coast. The first of aplanned three phases of theinvestment is scheduled to becompleted in the third quarterof next year.
Located on Gdaƒsk’s WyspaSpichrzów (Granary Island),
the Chmielna Park develop-ment will comprise three build-ings, including one high-risestructure, with a total of 314apartments. The first buildingto be built within the complexwill deliver 55 housing units.
Chmielna Park apartmentsare sized from 35 sqm to 170sqm and priced betweenz∏.5,500 and z∏.8,500 per sqm.Sales of homes in the firstphase of the developmentlaunched in Q3 last year, with21 units having been offloadedso far.
“The investment enjoys
ample buyer interest. Welaunched sales of apartmentsin building A in September lastyear and almost 40 percent ofthe units have already beensold,” Rafa∏ Zdebski, commer-cial director at Inpro, said in astatement.
Founded in 1987, Gdaƒsk-based Inpro is one of thelargest development compa-nies in the Tri-city market. Thedeveloper’s ongoing projectsinclude Kwarta∏ Kamienic,City Park and Osiedle Jab∏o-niowa in Gdaƒsk.
AAddaamm ZZddrrooddoowwsskkii
KLIKOMATS IN CH FORUM – NEW TECHNOLOGIES AT YOUR SERVICE
Advertorial feature
There are six of them and theyattract attention. They look likegigantic smartphones and havetouch screens and panels display-ing adverts and announcements.They are equipped with interactivemaps of the mall, will help you findthe way to a shop or spot, find agiven kind of product and checkwhat time and where the next busdeparts. They also display newsitems about the mall – the sameones that are uploaded on its web-site. They are the KLIKOMATS –CLICK MACHINES. They haverecently taken the area of theForum shopping mall in Gliwice bystorm. Where does their namecome from? “It alludes to our CLICK[KLIK] multimedia loyalty pro-gramme that grants additional ben-efits to frequent shoppers, whichwe have been developing since thespring of 2010. Customers clearlylike it because approx. 30,000 usershave already registered in our sys-tem. CLICK was also created inorder to facilitate the managementof our flagship pro-sales campaignssuch as competitions and lotteries,”explains Agnieszka Mielcarz, man-aging director of CH FORUM onbehalf of Avestus Real Estate.
KLIKOMAT: more than atrendy gadgetThe CLICK MACHINES go with the
times. They follow newtrends of visual advertis-ing that not only influ-ences our senses but,more importantly,encourages customersto get involved in morefrequent interaction. Anengaged customer isthe dream of every mar-keter. Mobile applica-tions and devices utiliz-ing technological novel-ties are modern toolsthat make this dreamcome true.
But the CLICKMACHINES are not onlyspectacular gadgets.Integrating these mod-ern devices with theCLICK loyalty platformshows the direction ofCH FORUM’s strategyand the hopes this Gli-wice-based mall puts ininnovative technologies.
“Apart from usefulfunctionalities, theCLICK MACHINES aredesigned to service our marketingcampaigns such as lotteries. Sofar a lot of activities related tothese campaigns took place at ourinformation point. CLIK MA-CHINES will relieve informationpoint staff and automate these
pro-sales undertakings. Some ofthese activities were moved to ourwebsite and Facebook profile along time ago. The CLICKMACHINES are another steptowards modernity,” explainsAgnieszka Mielcarz.
The machines areundergoing their firsttest right now. A dia-mond lottery that usesthe CLICK MACHINESwas launched in CHFORUM in mid-April.Customers can nowscan their till receipts,print lottery cards orcheck whether theyhave won an immediateprize – a voucher worthz∏.50, of which there are2,000 in the lottery.
CLICK and whatnext?Shopping malls getbolder and bolder inreaching for techno-logical novelties. Towhat extent will thischange the habits ofshopping mall cus-tomers?
The issue seems tobe slightly more com-plex. “While openingourselves to new tech-
nologies we do not forget aboutmore traditional marketingmedia and try to find a suitablebalance between the two. Not allage groups absorb technologicalgadgets to the same degree,”says Agnieszka Mielcarz, who
also points out that the retailershave a role to play in thisprocess.
“A lot depends on the level oftheir cooperation with facilitymanagers. Even the best mobileapplications will not fully usetheir potential unless all tenantsget equally involved in theirdevelopment and content pro-viding.” Then the questionwhether it is the shopping mallor the shop itself that should tryto ‘catch the customer’ usinggeolocation tricks gets a com-pletely different meaning.
Meanwhile, the next develop-ment stadium of the CLICK plat-form at CH FORUM will be amobile application which is tomove all the functionalities ofthe CLICK MACHINES to users’devices.
“There will be as many CLICKMACHINES as the customersinterested in them. However,before this takes place, the intro-duction of the application will bepreceded by a detailed analysisof the functioning of the station-ary devices. We will most proba-bly ask various groups of cus-tomers to give us their opinionsabout them. However, we needsome time in order to accom-plish that,” Agnieszka Mielcarzinforms us. ●
Construction on a new multi-family residential projectcalled Hevelia is scheduled tolaunch in Poznaƒ, Wielkopol-skie voivodship, in the thirdquarter of this year. Thescheme will be a joint invest-ment of Warsaw-based Unide-velopment and a local devel-oper called Monday Develop-ment.
“The Hevelia estate is ourfirst investment in Poznaƒ, thisis why we are developing ittogether with Monday Devel-opment which knows the
nature of the [local] marketvery well,” Zbigniew GoÊcicki,president of the managementboard of Unidevelopment,said in a statement.
“The construction of multi-family estates in other Polishcities gives our company achance to develop so we arenot ruling out the launching ofmore investments outsideWarsaw,” Mr GoÊcicki added.
Sitting on 12,500 sqm ofland located at the intersec-tion of Poznaƒ’s ul. Hewe-liusza and ul. Palacza, the
Hevelia project will consist ofsix four-storey buildings com-prising a total of 174 apart-ments. The units, which arescheduled to be completed inQ4 2013, are priced fromz∏.6,300 per sqm.
Fully owned by WarsawStock Exchange-listed con-struction company Unibep,Unidevelopment is currentlyinvolved in residential projectsin Warsaw including PointHouse in Mokotów and Lykkein Bia∏o∏´ka.
AAddaamm ZZddrrooddoowwsskkii
Unidevelopment entersPoznaƒ residential market
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APRIL 30 – MAY 13, 2012 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 25
Developer Skanska PropertyPoland has completed the firstof two buildings in its GreenTowers office complex inWroc∏aw, Lower Silesiavoivodship. The first tenants,Ernst & Young and GrupaAllegro, have already movedinto the facility.
Located on Wroc∏aw’s ul.Strzegomska, the Green Tow-ers scheme comprises two 10-storey buildings that will deliv-er a total of 23,300 sqm ofleasable class-A office space.The project is being built inline with the principles of sus-tainable development and willbe LEED-certified.
Construction on the GreenTowers investment has beenunderway since April 2010.
The second phase of the com-plex, which will deliver 11,600sqm of space, is scheduled to
be completed at the turn of2012 and 2013.
AAddaamm ZZddrrooddoowwsskkii
Skanska completes first GreenTowers building in Wroc∏aw
Many Polishdevelopers, buildingowners and tenantsare holding on to thenotion that buildinggreen must beexpensive
Although they are generallyaware of the advantages of sus-tainable building, many playersin the Polish real estate marketstill think it is more costly thanit really is.
A new survey by ColliersInternational Poland, “Is thegrass greener for green build-ing certifications?” completedin April 2012 with the partici-pation of 65 developers, build-ing owners and major tenants,found that 52 percent ofrespondents believe that greenbuildings cost significantlymore to build than convention-al buildings. But Colliers esti-mates that in the CEE region,most green buildings cost justover 1 percent more to build.
“I am not surprised at thisresult, because that’s what wehear most often. We need toshow real examples of greenbuildings throughout the
region so that this misconcep-tion fades away. The goodnews is, with so many new proj-ects in Poland we won’t belacking examples,” said DevinSaylor, head of Colliers’ greencertification services for theCEE region.
According to Ulrich Sch-weig, head of technology cen-ter sustainable construction atStrabag, the sooner sustainablesolutions are incorporated intoa project, the easier and cheap-er it is. “The biggest problemwe have is that as a contractorwe get ready plans and thenthe client says he wants toachieve a certain level of certi-fication,” he said.
Part of the belief that greenmust be expensive is alsoattributable to the fact thatmany Polish players thinkgreen building materials aredifficult to find in EasternEurope and are more expen-sive. As many as 74 percent ofrespondents to Colliers’ surveysaid they believed this.
“I was very surprised.Although distributors and pro-ducers need to make themselvesmore widely known, sustainablebuilding materials including
cleaning products, concrete,glass, and paints are alreadywidely available in Poland.Moreover, products are consid-ered to be “local” in an 800-kmradius from the project site,which in Poland’s case includesGermany and many other CEEcountries,” said Ms Saylor.
Proof that more and morepeople recognize certain ad-vantages of sustainable build-ing, however, is that as many as92 percent of respondents cor-rectly said that green buildingscan cost less to operate andmaintain, and sell for morethan non-green buildings.
One example of this isRondo 1 in Warsaw, which re-duced its running costs by 15percent with a relatively smallinvestment to achieve LEEDGold certification in 2011,according to Karol Bartos,managing director Poland atMGPA.
“I think it’s good news thatpeople recognize the addedvalue of green buildings,because now it’s a matter ofunderstanding costs, and thenthere is really no objection tobuilding green,” said Ms Saylor.
AAlliiccee TTrruuddeellllee
Sustainable building
UUnnddeerrssttaannddiinngg tthhee ccoossttss
Developer Concept Develop-ment has announced that itwill secure both LEED andBREEAM certification for itsConcept Tower office buildingin Poland. According to thecompany, the project will bethe first office scheme inPoland applying for both cer-tificates.
Apart from environmentalconcerns, increasing the invest-ment value of the building and
enhancing its attractiveness forthe so-called green investmentfunds is an important factorthat led to the decision toobtain double certification forConcept Tower, the developersaid in a statement.
“Prestigious double certifi-cation additionally increasesthe value of the building, whichautomatically translates intoadvantages for investors andtenants,” said Rafa∏ Maresch,
president of the managementboard of Concept Develop-ment.
Located at the intersectionof ul. Karolkowa and ul. Grzy-bowska in Warsaw’s Wola dis-trict, the Concept Tower projectwill be a 15-storey buildingoffering over 8,800 sqm ofoffice and retail space. Thescheme is scheduled to be com-pleted in the fourth quarter of2012. AAddaamm ZZddrrooddoowwsskkii
Concept Tower in Warsaw setfor double certification
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APRIL 30 – MAY 13, 2012TTHHEE LLIISSTT26 www.wbj.pl
Construction & Real Estate
Commercial Real Estate Developers - RetailRanked by retail investments completed in 2010 www.bookoflists.pl
Rank
Company nameAddressTel./FaxE-mailWeb page
Gross Building Area(GBA) of retail
investments completed(sqm):
1st half of 2011 / 2010 / 2009 / 2008
Overall
Gross Leasable Area(GLA) of retailinvestments
completed (sqm): 1st half of 2011 / 2010
/ 2009 / 2008
SpecializationKey current investments: name
(location; space - sqm; GLA;completion year)
Largest investments recentlycompleted: name (address; space -
sqm; GLA; completion year)
Total employees /Year founded
Top local executive /Title
1
Inter IKEA Centre Polska SAPl. Szwedzki 3, Janki, 05-090 Raszyn22 [email protected]
APRIL 30 – MAY 13, 2012 TTHHEE LLIISSTT www.wbj.pl 27
Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was conductedin October 2011. Number of employees is as of September 2011. All information pertains to thecompanies’ activities in Poland. Companies not responding to our survey are not listed.Footnotes: (1) Completed November 30, 2011; (2) Completed October 19, 2011.
To the best of WBJ ’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions andtypographical errors may occur. Corrections or additions to The List should be sent, on official letterhead, to Warsaw Business Journal, attn. Joanna Raszka,ul. Elblàska 15/17, 01-747 Warsaw, via fax to (+48) 22 639-8569, or via e-mail to [email protected]. Copyright 2011, Valkea Media SA. The List may not be reprint-ed or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
Rank
Company nameAddressTel./FaxE-mailWeb page
Gross Building Area(GBA) of retail
investments completed(sqm):
1st half of 2011 / 2010 / 2009 / 2008
Overall
Gross Leasable Area(GLA) of retailinvestmentscompleted:
1st half of 2011 / 2010/ 2009 / 2008
SpecializationKey current investments: name
(location; space - sqm; GLA;completion year)
Largest investments recentlycompleted: name (address; space -
The week beginning April 23was a volatile one, withinvestors reacting negativelyto the news that PresidentNicolas Sarkozy had lost thefirst round of the presiden-tial elections in France. Itseems markets have gottenused to the “Merkozy” (Ger-man Chancellor AngelaMerkel-President Sarkozy)coalition fighting the debtcrisis in Europe, and anypolitical changes are seen asputting future reforms atrisk.
Risk aversion hitinvestors, causing theEUR/USD to slide to itsweekly lows at $1.31, whilethe EUR/PLN andUSD/PLN shot up all the wayto z∏.4.21 and z∏.3.21 respec-tively. The situation changedon Wednesday, when the USFederal Reserve stated that itwas ready to act if the econo-
my deteriorates. That calmedinvestors and optimismreturned, causing a reversalon the currency charts. TheEUR/USD rebounded andclimbed all the way above the$1.32 level.
In the Polish market, min-utes from a meeting of theinterest-rate-setting Mone-tary Policy Council were pub-lished, showing that a propos-al – eventually rejected – hadbeen made to hike the head-line rate by 25 basis points.This information proves thatwe cannot expect an interest-rate cut this year. An increaseis possible, unless economicgrowth shows clear signs ofslowing.
The EUR/PLN regainedground as it slid to aroundz∏.4.18, mirrored by theUSD/PLN which declinedeven further, all the way toz∏.3.16. ●
Adam NarczewskiX-Trade Brokers DM SA
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Major indices
Top 5 Closing % change (week) 52-week high 52-week low
Change for the week: -1.01% 52-week high: 2,932.62
Change year to April 26: 0.71% 52-week low: 2,089.84
mWIG40 2,398.59 (April 26 close)
Change for the week: -2.31% 52-week high: 2,959.86
Change year to April 26: 9.51% 52-week low: 2,076.52
sWIG80 9,773.24 (April 26 close)
Change for the week: -2.82% 52-week high: 12,932.00
Change year to April 26: 13.59% 52-week low: 8,218.71
NewConnect 40.20 (April 26 close)
Change for the week: -2.83% 52-week high: 58.92
Change year to April 26: -3.11% 52-week low: 40.19
WIG-Banki 5,700.92 (April 26 close)
Change for the week: -0.45% 52-week high: 7,316.39
Change year to April 26: 2.84% 52-week low: 4,944.19
DJIA13,204.62 (April 26 close)
1.86% (for the week)
CHANGE: 6.51%
(year to April 26)
52-week high: 13,243.83
52-week low: 10,404.49
NASDAQ3,050.61 (April 26 close)
1.43% (for the week)
CHANGE: 15.17%
(year to April 26)
52-week high: 3,134.17
52-week low: 2,298.89
S&P5001,399.98 (April 26 close)
1.67% (for the week)
CHANGE: 9.63%
(year to April 26)
52-week high: 1,422.38
52-week low: 1,074.77
FTSE1005,748.70 (April 26 close)
0.07% (for the week)
CHANGE: 0.86%
(year to April 26)
52-week high: 6,103.70
52-week low: 4,791.01
DAX6,739.90 (April 26 close)
1.03% (for the week)
CHANGE: 10.94%
(year to April 26)
52-week high: 7,600.41
52-week low: 4,965.80
NIKKEI2259,561.83 (April 26 close)
-0.28% (for the week)
CHANGE: 11.70%
(year to April 26)
52-week high: 10,255.20
52-week low: 8,135.79
world stock indices
39,000
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40,8
41,6
42,4
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44,0
28.0
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03.0
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4 5,400
5,500
5,600
5,700
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6,000
28.0
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Other indices
Low volumes in
a choppy week
Stocks report
Political uncertainty through-out Western Europe createdworry for investors in lateApril, causing stocks to openlower on Monday, April 23.
The collapse of the Dutchgovernment as well as uncer-tainty surrounding theFrench presidential electionsent shares lower acrossEurope, with both the overallWIG and blue-chip WIG20falling about 2.5 percent byclosing.
On Tuesday, Europeanmarkets got a little relief asdebt sales on the old conti-nent were well received,pushing bond yields lower.Strong corporate earningsfor big US manufacturersalso added some momentum,with stocks regaining some oftheir losses from the previousday.
Both the WIG andWIG20 gained about half a
percent, with TVN (up 3.08percent) and JSW (up 2.99percent) seeing the largestgains.
Stocks continued theirclimb on Wednesday.Despite a lackluster start andsome poor data beingreleased, Polish stocks fed onpositive comments from USFederal Reserve chairmanBen Bernanke in the lateafternoon, after he pledgedadditional support to aid theUS economy. Both the WIGand WIG20 closed about aquarter of a percent higher.
On Thursday, Polishindices outperformed mostof their European peers,feeding once again onstrong corporate earnings aswell as better-than-expectedoverseas housing data.Finally, on Friday April 27,the WIG closed up 1.57 per-cent. ●
Andrew Nawrocki WBJ market analyst
APRIL 30 – MAY 13, 2012MMAARRKKEETTSS28 www.wbj.pl
APRIL 30 – MAY 13, 2012 SSPPOORRTTSS www.wbj.pl 29
The game ended in a3-0 win for the leagueleaders against titlerivals Ruch Chorzów
Polish soccer club LegiaWarszawa won its 15th PolishCup after defeating RuchChorzów 3-0 in late April inKielce.
The two sides were sepa-rated by just one point at thetop of the Ekstraklasa leaguetable as WBJ went to press,but on the night there was agulf in class between theteams as Legia easily brushedaside its title rivals.
Serbian forward DanijelLjuboja opened the scoringfor Legia inside eight min-
utes, before goals on eitherside of half time for MiroslavRadoviç and Micha∏ ˚yroallowed the team from thecapital the opportunity tosecure yet another cup victo-ry.
“We won the first battleagainst Ruch, but we still haveanother in the league – I hopewe win that one, too,” Legiadefender Jakub Wawrzyniaktold reporters after the game.
“We had more qualitythan they did today,” headded.
Legia was on top of theleague table with 49 points,and Ruch in second with 48points as of press time.
DDaavviidd IInngghhaamm
American football
EEaagglleess wwiinn eexxtteennddss ssttrreeaakkThe Warsaw Eaglesremain at the top ofthe league after a 66-26 victory over theSilesia Rebels
The Warsaw Eagles extendedtheir winning start to theTopliga season with a 66-26win over the AZS SilesiaRebels in the fourth round ofmatches in the Polish Ameri-can Football League.
The Rebels jumped out toan early 13-0 lead against theundefeated Eagles but TyroneLandrum quickly put thoughts
of an upset to rest, scoring fivetouchdowns in what turnedinto a comfortable win for theleague leaders.
Elsewhere Koz∏y Poznaƒcontinued their dismal start tothe season as they fell to 0-4after losing 48-6 to the GdyniaSeahawks. Sebastian Krzysz-tofek scored three touchdownsin the game for the Seahawks.
In the weekend’s othergame the Wroc∏aw Devils’ run-ning back Niles Mittaschensured his side didn’t missstarting quarterback KrzysztofWydrowski, who was outinjured, as he put in an early
bid for Topliga Most ValuablePlayer by piling up a half-dozentouchdowns and over 300 yards
rushing in a 73-0 Devils rompover the Dom-Bud KrakówTigers. AAlleexx ZZaarrggaanniiss
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The Eagle's Piotr Osuchowski carries the ball
Euro 2012
Euro trophy tours Poland and UkrainePoland’s interiorminister alsoannounced theintroduction of Euro2012 border controls
The trophy awarded to win-ners of the UEFA EuropeanFootball Championship wason display in Warsaw in lateApril, as the first stop on atour of Poland and Ukraine.
The Henri Delaunay tro-
phy, which is named after thefirst secretary general of theUnion of European FootballAssociations (UEFA) andfounder of the Europeanchampionship, was present-ed to fans at the capital’sPlac Defilad by former worldand European championChristian Karembeu and leg-endary Polish soccer playerAndrzej Szarmach.
“Everywhere I go in Po-land I can sense the grow-
ing excitement. I am surethe Euro will be a huge andfantastic event for Poland.This trophy tour is a signthat the tournament is veryclose, and people can seethat the party is close togetting started,” said MrSzarmach.
Poland’s Interior Minis-ter Jacek Cichocki alsoannounced in late April theplanned temporary rein-statement of border controls
in certain areas during theEuro 2012 championship.
Mr Cichoski did, howev-er, confirm that this wouldnot cause difficulties for Pol-ish citizens, who will be ableto cross Poland’s borders asusual. Border controls willbe introduced from June 4to July 1 but will be intermit-tent and limited to specificlocations, the interior minis-ter said.
You’ve had an incredibly suc-cessful career breakingnumerous records and win-ning lots of internationaltitles. What is your motivationand how has success influ-enced you?Mateusz Kusznierewicz: Eachsuccess gives me wings andconfirms that what I do makessense. The fact that all thehard work and effort that Ihave made actually bringsresults is a source of great sat-isfaction for me. But successand prizes are not the mostimportant thing. Sailing is mypassion, and setting new goalsgives me motivation to keepworking. Success is just thecherry on the cake.
What achievements in yourcareer are you most proud of?Most certainly being worldchampion in 2008 in the StarClass. In that regatta 114 sail-ing crews from all over theworld took part and the levelwas very challenging. Racingamongst so many fantastic
rivals, and winning againstthem, gave me a great deal ofsatisfaction.
What was it like to compete atthe Olympic Games and whatdid it feel like to win a goldmedal for Poland at theAtlanta Olympics?It was one of the most pre-cious moments of my life. Itwas the first medal at theOlympic Games for a Polishsailor and it was gold. That wasreally something. When Iheard the Polish anthem onthe podium I was very proud.
At that time I was a young,ambitious and not a very expe-rienced athlete. That gave methe edge over competitors whowere nervous and tense. In away, my lack of awareness wasmy strength.
How is your life during com-petition different to when youare at home?During the regatta each day isprecisely planned. The drill,appropriate nutrition, extreme
concentration, physical andmental effort – these factorsare essential.
When I come back home Ineed to have some peace andquiet, so I can relax. My every-day life is still active. I run onthe beach, I roller-skate. I likereading on the terrace. Itmight sound surprising, butthe sound of the sea makes mefeel calm.
What advice would you give toyoung people who want to getinvolved in sailing and to oneday compete at the highestlevel?The best way to start a sailingadventure is to go on a sailingcamp. You have to try some-thing to know if you are reallyinterested in it. Going on anopen sea cruise isn’t a goodidea at the start. I would rec-ommend starting on one of thePolish lakes or in the Bay ofGdaƒsk. If it is something thatyou want to keep doing, thenext step would be to join asailing club where you cantrain and gain the necessaryskills.
This spring you signed a newsponsorship contract withQualia Development – can
you tell us some details aboutthis cooperation?My first contact with QualiaDevelopment was from a dif-ferent angle. I was looking foran apartment which wouldensure safety, peace and com-fort for me and my family, closeto the forest and sea, and at thesame time located near Gdaƒskwhere I work and train. After along search I chose an apart-ment in Neptun Park, aninvestment created by QualiaDevelopment. Only then camethe idea of me taking part inthe promotional campaign.
Our cooperation is a bit dif-ferent than a regular contractwith a sponsor. Apart from myimage being shown on bill-boards and promotional mate-rials, I will also encourage myneighbors and acquaintancesto take part in all sorts ofsports events like regattas,cruises, and events on thebeach, which is located just120 steps from my apartment.
Finally, it’s an important timeof year for you right now.What are your main aims forthe near future?Tough times are ahead of me.Before London I am takingpart in the World Champi-
onships and in regattas on theOlympic reservoir. But mostimportant is good health and
good luck, and what you usual-ly wish sailors – fair wind and afollowing seas. ●
WBJ sits down with professional sailor andOlympic gold medal winner MateuszKusznierewicz to talk about his careerhighlights and life away from professionalsports
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Mateusz Kusznierewicz
APRIL 30 – MAY 13, 2012LLIIFFEESSTTYYLLEE30 www.wbj.pl
Planete+ Doc Film FestivalMay 11-20Warsaw, and variouslocations across Poland
Since starting back in 2004the Planete+ Doc Film Festi-val has grown into one of thelargest events of its kind inthe world, attracting film fansboth from Poland and abroadto Polish cinemas. Last yearalone some 30,000 movielovers packed cinemas in
Warsaw and across Poland tosee some of the world’s bestdocumentaries.
The over 150 movies beingshown at this year’s event aresplit in to 14 categories cover-ing a wide range of broad top-ics including; Intimate Stories;LSD: Love, Sex and Dreams;Climate for Change andHeroes Are Among Us.
Among the standout filmsfor 2012’s edition is “ProjectNim.” Directed by James
Marsh, the man behind2008’s Academy Award-win-ning documentary “Man onWire,” “Project Nim” is anunflinching and at timesheartbreaking biography ofNim Chimpsky, a chimpanzeewho was brought up byhumans as part of a psycho-logical experiment.
For more information,log on to planetedocff.pl
DDaavviidd IInngghhaamm
Manzarek Rogers BandMay 10Stodo∏a, ul. Batorego 10Warsaw
The organ player from one ofthe 1960s’ most influentialbands and an eight-timeGrammy-nominated slide gui-tarist have recently united toform a rock ‘n’ roll blues bandset to perform in Warsaw thisMay.
Ray Manzarek was onequarter of legendary WestCoast band The Doors, thegroup behind such classic hitsas “Light my Fire,” “Break onThrough (To the other Side)”and “People are Strange.” Hispartner in the ManzarekRogers Band is Roy Rogers,famed for his work with theThe Delta Rhythm Kings andas producer for late guitarlegend John Lee Hooker.
Those thinking of attendingthe show shouldn’t expect thetwo famed performers andtheir band to break from thetraditional blues rock ‘n’ rolltemplate but for lovers of thisstyle of music this gig repre-sents a not-to-be missedopportunity to see two musicallegends in action.
For more information,log on to stodola.pl
DDaavviidd IInngghhaamm
Film festival
WWhhaatt’’ss uupp,, ddoocc??
Concert
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“Project Nim” is this year’s standout documentary
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Ray Manzarek (left) of The Doors and guitarist Roy Rogers
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Can a camel lick its own back? Canit? Argh… Techeye has been tor-mented by this question for weeks.We don’t really need to know, but atthe same time we need to. Youknow?
The internet has been no help. Ithosts terabyte upon terabyte of lol-cats, creepy 4chan memes, realityTV gossip forums and the ravings ofmad bloggers, but seemingly nothingabout whether a camel can back-lick. Dromedary or Bactrian.
For shame, internet. For shame. Techeye has wasted an embarrass-
ing amount of time in our quest forcamel knowledge. Thankfully theeffort was not for nought – we foundsome interesting gadgets in theprocess, including the Avenger Elite
Controller from N-Control(avengercontroller.com).
Referred to as “the straw thatbroke the camel’s back” by one frus-trated blogger, the Avenger Elite isan adapter for Xbox 360 and PS3controllers which adds levers andtriggers to mix so that gamers don’thave to take their thumbs off theanalog sticks. According to N-Con-trol’s marketing hype, this increasesaccuracy and lets players “up theirgame,” particularly in competitiveshooters.
Does it really? Sure, if you investenough time in learning the newcontrol scheme, though it does noth-ing for Techeye – we’re all thumbswhen it comes to first-person shoot-ing games. But the buzz in the gam-
ing community is largelypositive and the AvengerElite’s quirky levers andtriggers have made con-trol pads more friendlyfor some disabledgamers, which is cool.
If any of the aboveappeals, you can pick upan Avenger Elite in earlyMay for around $50. Justkeep in mind that if youreally suck at games, it
p r o b a b l ywon’t help you much.
The Handpresso Wild ESE,meanwhile, was something Techeyecame across while reading about aridiculous-looking “Baccarat CrystalCamel,” which functions as a lamp orfruit dish or something and costsabout half a million USD. Standing insharp contrast – both in terms ofprice and general usefulness – theHandpresso Wild ESE is a portableespresso maker sold by an epony-mous French firm (handpresso.com).
The product design is elegantlyawkward. Or awkwardly elegant, ifyou prefer. You pour 50 ml of hot
water into the plastic chamber,insert an “easy serving
espresso” (ESE) pod, letit brew for a few ticks
and then serve.That’s the elegantpart. The awk-ward part iswhere you usethe pump hid-den in the han-dle to buildpressure, kind
of like pumpingup a bike tire. We’d
recommend against doingthis in public, as you’ll look like a
complete tool. The Handpresso Wild ESE costs
€99, with a box of 200 ESE podsrunning around €63 (dependingon the coffee blend).
Last up is the BMC impecAutomobili Lamborghini Edi-tion bicycle, which apparentlyhas much in common withcamels. We discovered it linkedto a site about camel racing, butit was also mentioned in articlesabout camel milk and … um …camel hoof.
None of that’s important, ofcourse. What matters is that
Swiss bike crafter BMC hasteamed up with Lamborghini tomake 30 ultra high-end two-wheel-ers with carbon frames and rims,custom finishes and Shimano DI2electronic shifting. That last partrefers to a fancy gear-shifting sys-tem, if you’re unfamiliar with theconcept.
The BMC impec AutomobiliLamborghini Edition bike costs anequally high-end €20,000, with thebrand name accounting for abouthalf, we assume. That’s a heftyprice tag for a bicycle, but only athird the cost of a half-decent rac-ing camel. Just in case you werewondering. ●
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Ever been thoroughly vexed by a lack of useless knowledge? Let us know: [email protected]
