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VOLUME 17, NUMBER 33-34 • AUG 22 – SEP 4, 2011 . z∏.12.50 (VAT 8% included) . ISSN 1233 7889 INDEX-RUCH-332-127
CCoossttllyy ddiisscclloossuurreeTwo Polish prosecutors lost their jobs after
giving the Lukashenko regime information
that led to the arrest of a Belarusian
democracy activist
4
Since 1994 . Poland’s only business weekly in English
WW
W.W
BJ.P
L
Poland is on the verge of finally
developing its own space
industry. WBJ met the people
behind this celestial enterprise10-11
SSaaffee ffrroommtthhee ssttoorrmm??While Franco-German rescue plans failed
to calm investors, Prime Minister Tusk
says Poland is safe from the global
economic storm 3, 9
SH
UT
TE
RS
TO
CK
6-752
PiS has once again demand-
ed the infrastructure
minister’s head
A z∏.926 million deal
between two FMCG
giants has turned sour
Deputy Defense Minister
Zbigniew W∏osowicz says
Poland is as secure as ever
News . . . . . . . . . . . . . . . . . . . . . . .2-4
Industry News . . . . . . . . . . . . . . . . .5
Interview . . . . . . . . . . . . . . . . . . . .6-7
Tax . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Finance & Economics . . . . . . . . . . .9
Cover Story . . . . . . . . . . . . . . . .10-11
Opinion & Analysis . . . . . . . . . . . .12
Lokale Immobilia . . . . . . . . . . .13-19
Markets . . . . . . . . . . . . . . . . . . . . . .20
The List . . . . . . . . . . . . . . . . . . . . . .21
Arts & Culture . . . . . . . . . . . . . . . .22
Last Word . . . . . . . . . . . . . . . . . . . .23
In this issue
REAL ESTATELokale Immobilia
• Renovation, redesign
and risks
• Ronson in Warsaw
• Investing in Szczecin
13-19
CO
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RE
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DE
VE
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PM
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A guide to Polish business and industry Przewodnik po polskim biznesie i gospodarce
Leasing companies 21
Poland’s next frontier
zł.
3,125
3,250
3,375
3,500
3,625
3,750
3,875
4,000
July 20
11
June 2
011
May 20
11
April 2
011
March 2
011
Februa
ry 2011
Januar
y 2011
December
2010
November
2010
October
2010
Septem
ber 20
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August
2010
July 20
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AUGUST 22 – SEPTEMBER 4, 2011NNEEWWSS2 www.wbj.pl
PO launches
TV channel
Poland’s ruling Civic
Platform (PO) party
launched its own internet
television channel in mid-
August. That’s despite
technical problems that
kept the station from
working at a pre-launch
press conference the day
before, Rzeczpospolita
reported. The channel
will feature news updates
from PO’s campaign trail,
general party information
and interviews with PO
politicians.
iPad takes
Poland by
storm Despite its hefty price
tag, Apple’s tablet
computer, the iPad, is
making waves in Poland.
It is now the most widely
used device for mobile
browsing. The iPad
trumps the iPhone and
the Nokia C3 in terms of
the total number of
mobile browser users,
according to new data
from GemiusRanking, as
cited by Rzeczpospolita.
The data suggests 18.4%
of all mobile internet
users in Poland are iPad
users, with 15.3% using
the iPhone.
PiS destroys
PO brochure
During a press
conference in Warsaw in
mid-August, Law and
Justice party (PiS)
spokesperson Adam
Hofman and election
campaign head Tomasz
Por´ba took turns ripping
out pages from the
promotional brochure
“Poland under
construction” that was
recently published by the
ruling Civic Platform
(PO). As each page was
ripped out it was
accompanied by
comments suggesting
that PO was taking the
credit for the success of
others.
Polish vodka
having good
yearVodka producer
Belvedere’s share of the
Polish market stood at
21% at the end of May,
compared to 16.3% in the
same period of last year,
with improved figures
related to increased sales
of the Krupnik brand,
reported Rzeczpospolita.
At the same time,
Poland’s Sobieski vodka
has continued to gain
popularity abroad. ●
Arche ............................................5
Archer Daniels Midland ..............5
Artdesign....................................17
ASTARIS Property Solutions......14
Atrium European Real Estate ..13
Auchan ......................................13
Bank Polskiej Spó∏dzielczosci ..14
Bank Zachodni WBK....................3
Bawe∏nianka ..............................14
Biuro Projektowania
Architektonicznego Pallado i
Skupin ........................................14
Budimex ....................................14
Budimex NieruchomoÊci ..........14
BZ WBK ........................................9
CB Richard Ellis Poland ............18
Colliers International Polska ....13
Danske Bank................................9
Dexia BIL Private Banking
Luxembourg ................................5
Dom Development ....................13
Echo Investment ..................13, 18
Elbfonds ....................................14
Elstar Oils ....................................5
Emperia........................................5
Empik ........................................22
Eurocash ......................................5
European Space Agency ............10
FSO ............................................13
Gant ............................................16
Ghelamco Poland ......................17
gowebtrade.com ........................20
Green Development ..................17
Grupa Unibep ............................14
HOLA Design..............................17
Honda Wyszomirski ....................5
Ipopema Securities......................9
Jarvis Insurance ..........................5
Jones Lang LaSalle ..................18
JW Construction ........................13
JW Construction Holding ..........18
KHS Krosno..................................5
Koncepta ....................................18
Livescribe ..................................23
Mamdom ....................................16
Mayland ......................................18
Media Markt ..............................22
Monday Development ................14
Neinver ......................................18
On/off architekci ........................17
PGE ..............................................5
PGNiG ..........................................5
Police............................................5
Polish Space Agency ................11
Raiffeisen Evolution
Project Development ................18
Realkapital ................................18
Red5 ..........................................23
Robyg..........................................16
Ronson ......................................13
Saturn ........................................22
St. Martin Arabians......................5
STRATFOR ..................................12
SwedeCenter..............................18
Taxplan Sp. z.o.o. ........................8
Tradis............................................5
Unidevelopment ........................14
Visconti ........................................5
vision research ..........................23
Warsaw Stock Exchange 3, 13, 16
Westmark Polska ......................13
X-Trade Brokers ......................3, 9
X-Trade Brokers
Dom Maklerski SA ....................20
As WBJ went to press, Poland’slower house of parliament, theSejm, was due to vote at theend of August on whetherInfrastructure Minister CezaryGrabarczyk would keep his job.
A debate on the tenabilityof Mr Grabarczyk’s positionwas expected to precede thevote, which was prompted by amotion of no confidencebrought against the minister bythe country’s main oppositionparty, Law and Justice (PiS).
Party leader Jaros∏awKaczyƒski cited the deplorablestate of Polish road and railwayinfrastructure as PiS’s reasonfor presenting the motion,before calling Mr Grabarczykan “exceptional loser.”
The opposition DemocraticLeft Alliance (SLD) and PolandComes First (PJN) parties wereexpected to vote in favor of themotion, while the ruling coali-
tion of Civic Platform (PO) andthe Polish People’s Party (PSL)declared it would vote against it.
The motion against MrGrabarczyk was precipitatedby the recent accumulationof negative news concerningthe Polish rail network. OnAugust 12, a train derailmentin central Poland left onedead and some 30 injured. Afew days later, unionizedemployees of regional rail-way operator PKP PrzewozyRegionalne went on generalstrike demanding higherwages.
It is not the first time thatopposition parties have tried toremove Mr Grabarczyk fromoffice. In January this year, theruling coalition was successfulin defending the minister afterSLD filed a no-confidencemotion motivated by the chaosthat gripped Polish railways fol-
lowing the introduction of new,faulty timetables towards theend of 2010.
For its part, PiS tried tobring about the removal of MrGrabarczyk in July 2009. Thecriticism that the party thendirected at the minister mainlyconcerned constant changes inroad construction plans, as wellas the signing of allegedly unfa-vorable concession dealsregarding, among other proj-ects, the A2 motorway.
Born in 1960 in ¸ódê, MrGrabarczyk first became amember of the Polish parlia-ment in 2001. In that sameyear, he joined the PO partyand five years later became itshead in ¸ódzkie voivodship. Alawyer by profession, MrGrabarczyk has been serving asPoland’s infrastructure minis-ter since November 2007.
AAddaamm ZZddrrooddoowwsskkii
5.81%was how much the WSE’s blue chip WIG20 index had
dropped at closing on August 18, after plunging almost
9% earlier in the day
z∏.23.9 billion was the amount Polish banks lent for the construction
and purchase of real estate in H1, 49% less than the
same period in 2010
4.3%was the total share of Poland’s exports going to Russia
during H1 2011, rising from 3.6% for the same period
of last year
3.3%was the rise in year-on-year employment figures for
the private sector in July; predictions had been for a
3.5% increase
“Unfortunately, Donald Tusk has … appointedan exceptional loser, Cezary Grabarczyk, the
infrastructure minister.” PiS leader Jaros∏aw Kaczyƒski didn’t pull any punches in his evaluation of
Infrastructure Minister Grabarczyk
Quote of the Week
Poland less corrupt
Great efforts have been made in recent years to counterPoland’s still-lingering reputation for corruption. But last year,Transparency International raised Poland’s ranking in its annu-al Corruption Perceptions Index. And while some residualeffects remain, the country is moving in the right direction. Logon to find out the current rating and much more.
On WBJ.pl
Numbers in the News
Company index
RE
PO
RT
ER
AUGUST
31 FACILITY MANAGEMENT CONFERENCEEvent: The conference will be a great place to
exchange experiences related to the func-tioning of all of the attributes of a building.Location: Centrum Bankowo-Finansowe“Nowy Âwiat,” Warsaw. multitrain.pl
SEPTEMBER
7-9 21st ECONOMIC FORUM Event: The euro-zone crisis, activities of ratings
agencies, and the relative resistance of Euro-pean banks to potential economic turmoilwill be some of the main topics of discus-sion during this year’s Economic Forum inKrynica-Zdroj. Location: Krynica-Zdrój. forum-ekonomiczne.pl
8-9 SHOPPING CENTER FORUM & TRADE FAIR 2011Event: The most important meeting of the shopping
center industry in Poland. Location: HiltonHotel, Warsaw. shoppingcenter.pl
17-18 WROCLOVE BEAUTY SALON Event: This presentation and lecture program will
provide information about the latest treat-ments and trends in cosmetics.Location: ul.Wystawowa 1, hall IASE,Wroc∏aw. salon-wroclaw.pl
19-21 SECURITY RESEARCH CONFERENCE Event: A debate about legal, technological and
organizational solutions to the most difficultchallenges faced by the public safety andsecurity industry today. Location: Hilton Hotel, Warsaw. src11.eu
August/September
DATELINE
Cezary Grabarczyk
IN THE SPOTLIGHT
Figures in focus
Golden growth
Average private sector gross wage in z∏oty, July 2010-July 2011
Source: GUS
AUGUST 22 – SEPTEMBER 4, 2011 NNEEWWSS www.wbj.pl 3
Poland and the crisis
PPMM TTuusskk:: PPoollaanndd rreeaaddyy ffoorr aa sseeccoonndd ccrriissiissThere is no indicationthat Poland isthreatened and Polesremain confident,according to the primeminister
The government is doingeverything it can to ensurePoland sails unscathed throughthe current economic turbu-lence, Polish Prime MinisterDonald Tusk told politicians inthe Sejm on August 19.
“The task of every responsi-ble political formation is to pro-tect their homeland from thethreat of chaos, the threat ofnervous impulses … because
they can have a very seriousimpact on the global and thelocal economy,” he said.
He added that although lifein a crisis can never be easy,Poland remains a stable andresponsible country, and isprepared for the eventuality ofa second wave of global finan-cial crisis. There is no indica-tion that Poland is threatenedwith recession, he said.
On the day before MrTusk’s speech in parliament,the Warsaw Stock Exchangehad seen the WIG20 plunge byalmost 9 percent, before clos-ing the day 5.8 percent down.The markets, nervous aboutthe sovereign debt crisis plagu-
ing the euro zone and a slow-down in economic growtharound the globe, hadn’t seensuch drastic falls since the lastcrisis, in the autumn of 2008.Earlier in August, rating agencyS&P downgraded the US’scredit rating by a notch, trigger-ing panic on global markets.
Don’t panicMr Tusk had been called uponby the main opposition partyLaw and Justice (PiS) toexplain what actions his gov-ernment was taking to protectPoles against the current crisis.
After his speech, PiS politi-cian Beata Szyd∏o accused thePM of being surprised by
recent events, and of giving noresponse as prices rose and thestock market fell.
“The whole narrative of MrTusk, the ‘excellent’ results ofhis policy ... is, to put it mildly,detached from reality,” said PiSleader Jaros∏aw Kaczyƒski. Headded that the PM’s speechhad once again increased thechaos and confusion in thecountry.
Mr Tusk responded by urg-ing the opposition not toundermine Poles’ confidence.
“Poles trust their country,the government, and banks,unlike in many Europeancountries,” he said.
DDaavviidd IInngghhaamm
Global economy
MMaarrkkeettss iinn ttuurrmmooiill oovveerr EEuurrooppeeaann ddeebbtt ccrriissiissInvestors remainednervous after theheads of France andGermany proposedstronger economicgovernance in the euro zone
After weeks of uncertaintycaused by unsustainable levelsof debt in Europe and the lackof a unified Europeanresponse, French PresidentNicholas Sarkozy and GermanChancellor Angela Merkelcalled for “a real economic gov-ernment” for the euro zone.
At a Franco-German sum-mit on August 16, the leadersof Europe’s two biggesteconomies argued for theappointment of a euro-zonepresident, proposing EuropeanCouncil President Herman VanRompuy for the job. They alsosuggested the group of 17 euro-zone countries hold summits atleast twice a year.
Many investors were hopingthe meeting would launch aswift resolution to the growingeuro-zone debt crisis. But asWBJ went to press, the propos-als did not seem enough toreverse the downward trendthat plagued stocks around theworld in August.
On the edgeGlobal indices, including inPoland, fell sharply in the daysfollowing the Franco-Germanproposals. Former EuropeanCommission President Jacques
Delors declared that “the euroand Europe are on the edge ofthe precipice,” and that theFranco-German summit hadbeen “useless.”
Gloomy growth forecastscontributed to the grim moodon global markets. MorganStanley revised its euro-areaGDP growth forecast downfrom 2 percent to 1.7 percent in2011 and from 1.2 to 0.5 per-cent in 2012.
“Germany and France willlead further discussions and anychanges towards greater inte-gration [of the euro zone] arewelcome,” said Maciej Reluga,chief economist at BankZachodni WBK. “But marketsare concerned about how thesovereign debt crisis will beresolved, and it is difficult tolower public debt when there isslower growth.”
Euro bonds the answer?One of the main disappoint-ments for investors was that MsMerkel and Mr Sarkozy reject-
ed the idea of creating eurobonds any time in the nearfuture. By issuing its own debtin the form of euro bonds, the
euro zone would be able toensure affordable financing forits poorest economies.
This was, explained MarcinKiepas, an analyst at X-TradeBrokers in Warsaw, the most
important point for investors.“[Euro bonds] would have hada positive impact in the shortterm in providing financial aid
to debt-saddled countries suchas Italy and Spain,” he said.
But euro bonds would alsobind strong economies likeGermany more tightly thanthey might like to weaker
economies. And Ms Merkelmade it clear that enshriningfiscal discipline in the constitu-tions of the 17 euro-zone coun-tries – another element of theFranco-German proposal –would come before any discus-sion on euro bonds.
Poland silent, but worriedAlthough it is legally bound byits EU accession treaty to oneday join the common currency,Poland doesn’t have an adop-tion date for the euro and canstill expect to be partiallyshielded from turbulence in theeuro zone by its free-floatingcurrency.
When it does join the eurohowever, one of the Franco-German proposals could beespecially painful. That is, pay-ments from structural andcohesion funds could be sus-pended for euro-zone coun-tries whose public deficitexceeds 3 percent of GDP andwhose debt reaches over 60 of
GDP. Poland, currently thelargest recipient of structuralfunds, recorded a public deficitof 7.9 percent of GDP in 2010.
Polish Prime Minister Don-ald Tusk, in his capacity as headof the country holding the EU’srotating presidency, urgedeuro-zone countries to act rap-idly to resolve the debt crisis.
But as a non-euro zonecountry, there is little Polandcan do. Mr Tusk admitted asmuch in a speech on August 19.Poland had expected strongerprovisions to come out of theMerkel-Sarkozy meeting, andthe country would supportrules to strengthen the euroarea, he said. But, he added,“We can not do it too forceful-ly, because we are not membersof the monetary union.”
Mr Tusk was expected tomeet with Mr Van Rompuyand EC President José ManuelBarroso to discuss legislationaimed at strengthening eco-nomic governance in the euroarea on August 30.
On the domestic front,recent economic turmoil hasshaken Poles’ confidence inthe global recovery.
An August poll commis-sioned by Puls Biznesu foundthat 58 percent of those sur-veyed believed that the recentinstability would lead to asecond wave of economic cri-sis at least as serious as theglobal crisis that was broughton by the collapse of LehmanBrothers in 2008.
AAlliiccee TTrruuddeellllee,, EEllllaa PPaa∏∏kkaa
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Mr Tusk responds to panic on the markets
18.0817.0816.0815.08 18.0817.0816.0815.08 18.0817.0816.0815.08 18.0817.0816.0815.08 18.0817.0816.0815.0838,000
39,000
40,000
41,000
42,000
2,200
2,250
2,300
2,350
2,400
5,600
5,750
5,900
6,050
6,200
3,000
3,100
3,200
3,300
3,400
10,800
11,000
11,200
11,400
11,600WIG* (Warsaw) WIG20* (Warsaw) DAX (Frankfurt) CAC40 (Paris) DJIA (New York)
*The Warsaw Stock Exchange was closed on August 15
SH
UT
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TO
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A Franco-German proposal failed to reassure investors
AUGUST 22 – SEPTEMBER 4, 2011NNEEWWSS4 www.wbj.pl
The man had allegedlylost his family’s lifesavings on a failedproperty deal
A 30-year-old Polish man hasbeen arrested for the murder ofsix people, including his wifeand two children, on the Britishisland of Jersey.
Damian Rzeszowski, fromNowy Sàcz in southern Poland,is the prime suspect in the case,after his wife Izabela, their six-year-old daughter and 18-month-old son were stabbed todeath. Also among the victimswas the suspect’s father-in-law,along with a friend and her five-year-old daughter. All of thevictims were Polish.
Mr Rzeszowski had report-edly lost his family’s life savingson a property deal in Poland,after failing to retrieve moneyfrom business partners whoseinvestment never materialized.Weeks before the murders MrRzeszowski had attempted totake his own life, the JerseyEvening Post reported.
“We still do not believe whathas happened,” the brother ofMr Rzeszowski’s wife told thesame newspaper.
The family had recentlyreturned from a trip to Poland.
“My mother is in a reallypoor condition and is seeing apsychiatrist. The situation isbeyond her. My sister did notsay there was anything wrongwhen they visited us in Polandin the last few days. They didnot even show that there wassomething wrong betweenthem,” the brother of Mr Rzes-zowski’s wife said.
A witness, quoted by theUK’s Guardian newspaper,said he saw a man stabbing awoman in the street with aknife. The man then reportedlyturned the weapon on himself,causing multiple injuries.
Local police subsequentlysaid that two of the victims werefound outside, with the otherfour discovered inside the prop-erty in which the suspect and hiswife lived.
As WBJ went to press, MrRzeszowski was under guard ata Jersey hospital, following sur-gery for the wounds he hadinflicted on himself.
The killings occurred while athree-day festival celebratingJersey’s Polish links was under-way in the island’s capital, StHelier. The island, located inthe English Channel, is home tosome 3,000 Poles.
DDaavviidd IInngghhaamm
Jersey murder
Pole accused in UK killing spree
Polish prosecutorsprovided informationto Belarusianauthorities that led tothe arrest of ademocracy activist
Following revelations thatPoland’s General Prosecutor’sOffice mistakenly aidedBelarusian authorities in theirattempts to convict humanrights activist Ales Belyatsky,key figures in the office losttheir jobs.
Krzysztof Karsznicki, thehead of the office’s depart-ment of international coopera-tion, resigned and his deputy,Anna WiÊniewska, was dis-missed.
Mr Belyatsky, who is headof the Viasna Human RightsCenter, was arrested byBelarusian authorities earlierin August over alleged tax eva-sion offenses. The chargeswere based in part on informa-tion disclosed by officials fromPoland’s General Prosecutor’sOffice relating to a bankaccount held by Mr Belyatsky.
The activist used theaccount to finance the activi-
ties of Viasna, which supportsopposition to the regime.
Attorney General AndrzejSeremet told a press conferencein mid-August that an investiga-tion into the incident concludedthat there had been irregulari-ties in the procedures used byprosecutors related to therelease of financial informationconnected to Mr Belyatsky.
The news was particularlyembarrassing for Poland giventhat the country’s government
has consistently criticized theregime of Belarus’ PresidentAlexander Lukashenko, who iscurrently carrying out a crack-down on political dissenters.
Reacting to the disclosure,Poland’s Foreign MinisterRados∏aw Sikorski issued anapology on his Twitter account.
“I apologize on behalf onthe Republic of Poland,” MrSikorski wrote.
“A reprehensible mistakedespite the Foreign Ministry’s
warnings. We will redoubleefforts to support democracyin Belarus.”
Viasna is one of the feworganizations in Belarus tohave provided independentinformation about abuses ofpower and arrests ordered byMr Lukashenko, while MrBelyatsky has actively lob-bied European officials toimpose strict economic sanc-tions on Belarus as a result ofthe government’s abuses ofpower.
After his arrest, a state-ment posted on the Viasnawebsite said, “We unequivo-cally consider the criminal caseagainst Ales Belyatsky aslynching and revenge for hislongstanding human rightsactivity, and also as an attemptto destroy the Human RightsCenter Viasna and intimidatethe whole human rights move-ment of Belarus.”
On August 15 Mr Bely-atsky’s detention period wasextended for a further twomonths after he was officiallycharged with the concealmentof profits. If convicted, he facesup to seven years in prison.
DDaavviidd IInngghhaamm
Belarus
Heads roll following Polish officials’ Belarus blunder
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Foreign Minister Sikorski apologized for the mistake
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American firm Archer DanielsMidland (ADM), the largestprocessor of grain in the world,has reached an agreement tobuy 100 percent of all shares inElstar Oils, a Polish vegetableoils processing company.
ADM made a call forshares in the company beforeagreeing with the currentshareholders to buy theirshares for z∏.5.5 apiece. Thisvalues Elstar Oils at z∏.265.166million.
Elstar, which produces edi-
ble oils and biofuels in Elblàg,northern Poland, released thenews in a statement over theweekend of August 13-14. Onits next opening Elstar’s shareprice rose by 52 percent fromits Friday closing price.
As WBJ went to press thefirm’s share price stood atz∏.5.25, a rise of 0.38 percenton the week.
“Poland is an importantorigination and consumermarket for ADM,” Brent Fen-ton, president of ADM
Europe, said in a statement. “Elstar’s location in the
heart of a rapeseed growingregion, with easy access to theports of Gdaƒsk and Gdynia,complements our existingpresence in the region and willenable ADM to furtherstrengthen its position inEastern Europe,” he added.
The purchase is now sub-ject to approval by antitrustauthorities in Austria, Ger-many, Poland, Slovakia andUkraine. DDaavviidd IInngghhaamm
Archer Daniels set to buyElstar Oils for z∏.265 million
Emperia wants out ofthe agreement, whileEurocash says it isstill binding
A deal which would see one ofthe biggest takeovers in the his-tory of Poland’s FMCG mar-ket is hanging in the balance.
FMCG group EmperiaHolding says it wants to with-draw from an agreement withEurocash, Poland’s largestcompany in the sector, thatwould see the latter purchaseTradis, Emperia’s distributionarm.
After Eurocash failed tomake payment for the agreedprice tag of z∏.926 million by theJuly 15 deadline, Emperia saidit was going to seek z∏.200 mil-lion in damages.
For its part, Eurocash saidit was unable to complete thetransaction on time because ithad not received approvalfrom UOKiK, Poland’s anti-monopoly authority.
Eurocash disputes Empe-ria’s demand for compensationand said the investment agree-ment is still binding and valid.
“Once we receive approvalfrom the regulators we willcomplete payment in accor-
dance with the terms of theagreement … and if problemsarise, we will resolve them incourt,” stated Jan Domaƒski, aspokesperson for Eurocash.
Emperia, however, claimspayment was required with orwithout the regulator’s ap-proval.
“The parties had agreedthat if Eurocash did not makepayment within the alottedtime, then Emperia had a rightto withdraw from the agree-ment and a right to claim dam-ages of z∏.200 million. Thisclause was found in the invest-ment agreement of which bothparties were informed, inreports dated January 3, 2011,”stated Artur Kawa, President
of Emperia in a press releaseon August 18.
Ernest Makowski fromUOKiK’s Press Office, mean-while, said that thus far, nodecision regarding Eurocash’stakeover application has beenmade.
He declined to comment onthe status of the application andon when a decision could beexpected, saying only that pro-ceedings relating to mergersand acquisitions may last up totwo months. They can takelonger if additional informationis needed or if, for example, thesituation requires furtherassessment, Mr Makowskiadded.
BBaarrbbaarraa GG´́ddeekk,, EEllllaa PPaa∏∏kkaa
FMCG takeover
Retail firms in deadlockover z∏.926 million deal
Poland’s largest utility, PGE, isweighing a plan to construct a600-megawatt gas-fired heatand power plant in cooperationwith chemical producer Police.
The project would costbetween z∏.1.5 billion and z∏.2billion, Reuters reported.
Police board president
Krzysztof Ja∏osiƒski said theplant would be built on a sitethe firm owns in the Zachod-nipomorskie voivodship.
The chemical producer iscoming off a good first half of2011, after it saw a H1 netprofit of z∏.115.3 million due toincreased fertilizer sales. A
year earlier Police had made anet profit of z∏.22.4 million.
The firm’s sales rose 40 per-cent year-on-year in H1 toz∏.1.29 billion, which MrJa∏osiƒski said he partly attrib-utes to the success of a recentlyimplemented restructuringprogram. GGPP
PGE and Police mulling multi-billion
z∏oty power plant investment
AUGUST 22 – SEPTEMBER 4, 2011 IINNDDUUSSTTRRYY NNEEWWSS www.wbj.pl 5
Poland’s President Bronis∏aw Komorowskiopened the 33rd Polish National ArabianHorse Show, in Janów, Podlaski, as buyersfrom all over the world flocked to the regionfor the main event, the 42nd Pride of PolandAuction Sale on August 7.
In total 43 horses were sold at the auctionfor the sum of €1.994 million, with membersof the Saudi and United Arab Emirates royalfamilies in attendance among other high-pro-file names.
The most expensive horse sold at thethree-day event was Piacenza, a two-year-oldfilly from Micha∏ów Stud, which went to theUnited States for €475,000. Other expensiveacquisitions included Palabra, a four-year-oldmare from Janów Podlaski Stud which wassold for €400,000, and eight-year-old Fabrysz-
ka, which went to Saudi Arabia for €150,000.The average price offered for a mare was€80,000, twice as much as last year’s aver-age offer. That bodes well for the Arabianhorse-breeding market across the globe.
The event also saw the award of numerousprizes in various categories. The Micha∏ówStud took home two big wins, with filly Wie˝aMocy winning the Junior Female Champi-onships and Kabsztad, a gray stallion, win-ning the Senior Male Championships.
This year the awards for horses and thepeople dedicated to them were sponsoredby: PGNiG, Arche, Dexia BIL Private BankingLuxembourg, Visconti, Honda Wyszomirski,KHS Krosno, St. Martin Arabians, and JarvisInsurance.
DDaavviidd IInngghhaamm
Pride of Poland Arabian horse auction
raises nearly €2 million in sales
Media patronage
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Eurocash says the deal is still on
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AUGUST 22 – SEPTEMBER 4, 2011IINNTTEERRVVIIEEWW6 www.wbj.pl
Exports to
Russia riseThe proportion of Polish
exports that went to
Russia rose to 4.3%
during H1 2011, from
3.6% a year earlier,
according to Central
Statistical Office data.
Russia’s economy has
continued to expand,
growing 3.7% y/y in H1
2011, helping Polish
exporters to increase
their (z∏oty-denominated)
sales to Russia by 33.7%
percent year-on-year.
Engineering industry
products dominate
among Polish exports to
Russia, making up 37%
of the total.
Concern over
Tymoshenko
arrest The four members of the
Visegrad Group are
worried about the state
of the rule of law in
Ukraine in relation to the
arrest of former Prime
Minister Yulia
Tymoshenko. In an
official statement, the
group, which comprises
Poland, the Czech
Republic, Hungary and
Slovakia, wrote that Ms
Tymoshenko’s arrest was
disproportionate to the
charges she faces. The
former prime minister
was arrested recently for
contempt of court. Ms
Tymoshenko stands
accused of abusing
power.
Grain woes
This year’s grain harvest
in Poland could be
weaker than it was last
season due to the recent
heavy rains, reports
Rzeczpospolita.
According to the
country’s Central
Statistical Office, this
year’s final production
figure could be as much
as 5% lower than it was
in 2010. ●
Defense policy
SSttrraatteeggyy ffoorr sseeccuurriittyy
Ewa Boniecka: What do youregard as the foundations ofPolish defense policy and howdo you asses Poland’s effortsto ensure maximum security?Zbigniew W∏osowicz: Poland’ssecurity system rests on threemain pillars: our membershipin NATO, in the EuropeanUnion and our strategic part-nership with the United States.This is complemented in otherbilateral and multilateralframeworks such as theWeimar Triangle and theVisegrad Group.
We have been building oursecurity system since 1989 andwe have been doing it very con-
sistently and effectively toensure maximum security forour country.
NATO is changing, and Polandmust re-position itself in thealliance in view of thesechanges. How does NATO’snew strategic concept relate toPolish security?It is true that NATO is chang-ing, because the whole world ischanging – at a surprisingly fastrate. So there is a need for thealliance to react to some ofthese unpredictable changes,and to respond to new develop-ments such as the Arab Spring,for example.
This poses new challengesfor NATO members, includingPoland. We all have to respondto global threats such as terror-ism, cyber-attacks, the prolifer-ation of weapons of massdestruction and their means ofdelivery, and other dangersaffecting international security.
NATO’s new strategic con-cept, which was approved atthe summit in Lisbon lastNovember and which is cur-rently in the implementationphase, is such a response. It isvery important that the presentstrategy provides effectiveinstruments to conductNATO’s task of collective
defense and adds momentumto the development of NATO’smissile-defense system.
The alliance has also begunthe process of gradually with-drawing troops fromAfghanistan and the transfer ofresponsibility for the country’ssecurity to the Afghan people.
The plan also sets the goalof developing a strategic part-nership between NATO andRussia.
Poland, due to negative histor-ical experiences, is showingcertain reserve towards devel-oping closer cooperationbetween NATO and Russia.How do you see the situation?It is quite natural that we arevitally interested in theimprovement of relationsbetween NATO and Russiaand therefore monitor themclosely. These relations are ofcrucial importance for Polandas one of the alliance’s easternmembers and a neighbor ofRussia. Therefore, when thenew NATO Strategic Conceptwas being shaped, we activelysupported the goal of takingthe relations with Russia to astrategic level. We are ready toexplore every opportunity lead-ing to improvement in NATO-Russia relations, because weunderstand that this is in theinterest of Poland and thealliance.
After the reset in Russian-American relations initiated byPresident Obama and theexpansion of NATO-Russiacooperation in some importantinternational issues, such asAfghanistan and counter-ter-rorism, the Russian attitudetowards NATO has becomemore pragmatic.
The NATO-Russia Council,or NRC, is a good forum fordialogue. Currently one of theimportant issues being dis-cussed within the NRC is coop-eration on missile defense. Thiscooperation should develop inconjunction with an improve-ment of NATO-Russia rela-tions in general.
The meeting of the NRC inSochi last July did not yield tan-gible results, but the importantthing is that the talks will con-tinue. We have to rememberhow complex and burdened byhistory these security issues are.Nobody should expect quick,spectacular results. But we arelistening to each side’s argu-ments, which means that weare on a better path to commu-nication.
During that meeting in Sochi,Russia declared that it woulddevelop its own missile-defensesystem, and that the NATOand Russian systems shouldbe linked, with a division of
responsibility for protectingvarious areas and Russia’s sys-tem covering the Baltic Statesand parts of Poland. This pro-posal was rejected off hand bySecretary General AndersFogh Rasmussen. What is yourview of this proposal?It is obvious that such an optionis not and never will be consid-ered by NATO. The alliance isfully responsible for thedefense of its members’ territo-ry, and Russia for its territory.Nevertheless, graduallyexpanded cooperation betweenboth systems is desired. To startwith, NATO is proposingmutual monitoring and dataexchange, and has assuredMoscow that its missile-defense system is not directedagainst Russia.
A permanent base for NATO’smissile shield will be built inPoland, putting such militaryinstallations in CentralEurope for the first time. Howcould this affect NATO-Russiarelations?NATO decided at the Lisbonsummit that it would build amissile-defense system. As partof this system, the US will con-struct a base in Redzikowo,near S∏upsk, which will becomefully operational by 2018.
Until then, discussionsbetween NATO and Russia willcontinue and I hope we will beable to convince Moscow thatNATO’s missile-defense sys-tem, being of no danger forRussia, will increase securityfor Europe, including Russia. Itis essential to underline thatcreation of consistent commu-nication between the NATOand Russian systems would bemutually beneficial.
Poland has concluded anagreement with the UnitedStates on military cooperationand we will soon see Americanairplanes and troops on ourterritory. What effect will thishave on Poland’s security andits position in NATO?The agreement has twoaspects: political and military.The political part of the agree-ment underlines the close tiesbetween Poland and the Unit-ed States, dating back to theUS’s very beginnings, all theway through the 1980s, whenthe US supported Solidarityand Poland’s struggle for free-dom and democracy. Thestrategic partnership with theUS has important implicationsfor our security, while Poland isseen by the US as an importantpartner. The very friendly char-acter of our relations createsthe foundations for our cooper-ation in defense.
In strictly military terms, theagreement establishes that
Deputy Minister of Defense Zbigniew W∏osowicz speaks to WBJ aboutPoland’s defense policy priorities, the development of NATO’s missile-defense program, Polish efforts to strengthen the EU’s defense capabilitiesand Poland’s military cooperation with the United States
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AUGUST 22 – SEPTEMBER 4, 2011 IINNTTEERRVVIIEEWW www.wbj.pl 7
there will be a permanent USAir Force detachment inPoland starting in 2013, as wellas continuous rotations ofAmerican F-16s and C-130Hercules transport planes withAmerican troops.
The development of coop-eration between the Polish andUS air forces will bring ourdefense relationship to a higherlevel. It will also have signifi-cant military value for Poland,deepening the interoperabilityof the Polish Air Force with USand NATO units.
Moreover, it will enable Pol-ish pilots and ground personnelto improve their skills throughexercises and training withcrews who are the most experi-enced in the use of F-16 and C-130 aircraft. Consequently,cooperation with the US willincrease the combat capabili-ties of the Polish Air Force andwill add to its capabilities forreceiving NATO reinforcementforces in Poland. All of this willhave a positive effect on Polishsecurity.
At the same time, it willstimulate the more balanceddistribution of US and NATOmilitary installations in Europe.This initiative should also con-tribute to the implementationof NATO’s strategic concept,especially with regard tostrengthening the alliance’s col-lective defense capabilities anddeepening the interoperability
of NATO forces.
Poland favors the establish-ment of the European Union’sown defense forces. Does thismean building a Europeanarmy? A European army is a very far-reaching concept. What we aretrying to do now is to developsome civilian-military capabili-ties to help the EU to reactbetter in crises. In practicalterms this means improving
the effectiveness of alreadyexisting forces such as the EUBattle Groups. In 2010,Poland was the lead nation ofthe Battle Group composed ofPolish, German, Lithuanianand Slovak soldiers. Recentlywe signed an agreement toform a Battle Group in 2013within the framework of theWeimar Triangle, wherePoland will be the lead nationagain. There is also a plan toform a Battle Group for 2015within the framework of theVisegrad Group.
The current internationalfinancial situation does notmake such initiatives easy. Butthe idea of building variousforms of military cooperationbetween EU members andpartners is regarded as impor-tant and a good example of this[is the cooperation between]France and the UK. Thosecountries are already cooperat-ing closely in the field ofdefense.
One of Poland’s prioritiesduring our presidency of the EUis to strengthen the CommonSecurity and Defence Policy.
Some opinion polls show thatthere are still a number ofPoles who are afraid of someunspecified dangers, regard-less of our membership inNATO and other assurances ofPolish security. Should Polesfeel 100 percent secure?Such a feeling of 100-percentsecurity is unattainable. It ishard to comment on the polls,but it is difficult to accept theopinion that Poles do not feeltheir country is secure. Polandhas not been as secure as it isnow for a long time. As a member of NATO andthe European Union we arenot only a security “con-sumer” but also a “provider.”I am convinced that Polish cit-izens have every reason in theworld to be sure that ourcountry is secure. ●
“Poland hasnot been as
secure as it isnow for a long
time”
NATO members
1949
(founding members)
Belgium, Canada, Denmark, France, Ice-land, Italy, Luxembourg,Netherlands, Norway,Portugal, United King-dom, United States
1952
Greece, Turkey
1955
Germany
1982
Spain
1999
Czech Republic, Hun-gary, Poland
2004
Bulgaria, Estonia, Latvia,
Lithuania, Romania, Slova-
kia, Slovenia
2009
Albania, Croatia
AUGUST 22 – SEPTEMBER 4, 20118 www.wbj.pl TTAAXX
Last chance for corporate tax optimization– tax free step-up to market value
Tax Eye
The train is about to leave thestation for those who are stillinterested in optimizing cor-porate taxes. The tried andtested step-up to marketvalue structure, which hasbeen implemented effectivelyby many corporate taxpayers,will shortly become defunct.In fact, the tax law waschanged to block this plan-ning opportunity at the end of2010. However, transitionalrules still allow companies toutilize the planning opportu-nity according to the oldregime up until the end of2011 – in certain cases. Com-panies, however, need todecide to avail themselves ofthis opportunity at latest bythe first half of September2011.
What do we mean by a taxfree step-up? The processinvolves crystallizing “hiddenvalues” of fixed and intangi-ble assets, which are not cur-rently recorded on the bal-ance sheet of a company, up
to current market prices. Thisnew value is then recorded inthe company’s books and pro-vides a basis for tax deprecia-tion deductions. For intangi-bles assets the depreciationperiod is typically five years.
In order to obtain the taxbenefit we do need to put in alittle work. The procedureinvolves acquiring a newcompany with a so-called“long tax year“ (to whichthe old tax rules still apply)and contributing an exist-ing business into this entityin return for shares. Fol-lowing this in-kind contri-bution, the new companyis allowed to record thecontributed assets at currentmarket value and depreciatethem. This provides the newcompany a tax shield whichreduces corporate tax infuture years.
Let us take the example ofa business which was started10 years ago. Sales havegrown and the business has
built a niche for itself in themarketplace. It has becomerecognized for its own trade-mark and for brands which ithas developed itself.Although the trademark andbrands have real marketvalue, in most cases they arenot recorded in the compa-
ny’s balance sheet and cannotbe depreciated. This is good,cautious accounting practice.However, it is a waste in aneconomic sense, since thestrength of the company’sbalance sheet may be under-valued.
Our business decides thatit wants to reduce it corporate
tax bill and at the same timeto strengthen its balancesheet, allowing it possibly toborrow more in the future.For management purposesthe company is already splitinto two divisions – sales &marketing and production.These two divisions are, tosome extent, independentlyrun and undertake divisionalfinancial reporting.
The sales & marketingdivision, containing thebrand name and otherintangible assets, is carvedout and contributed into anew company in return forshares. The new companyrecords the intangible assets
at market value and licensesthem back to the old compa-ny under a license agree-ment. For tax purposes wenow have the right to deductthe depreciation on theintangibles in the new com-pany and the license feespaid by the old company. Allof this is made better by the
fact that to get to this pointwe generally do not incurtransactional taxes, whichwould potentially make theoptimization process itselfexpensive.
The tax rules generallyallow us to effect this opera-tion without paying VAT ortax on civil law transactionsor corporate income tax atthe time of the contribution(for any of the parties). It isno wonder that the Ministryof Finance took the view lastyear that it was too good tobe true and blocked theopportunity. Nonetheless, forthose able to act nimbly dur-ing the coming month or so,there is still an opportunityto take advantage of. Toequip yourself you will needthe following basic toolkit:(a) one-shelf company with along tax year (b) a currentmarket valuation, preferably(c) a positive tax ruling (d) agood tax lawyer.Then, you are all set. ●
Matthew O’Shaughnessy, partner and Polish tax advisor,Taxplan Sp. z.o.o.
“For those able toact nimbly duringthe coming monthor so, there is stillan opportunity”
While regulations regardinge-invoicing have been liberal-ized, problems still exist formany business owners. E-doc-uments do not require signa-tures, but there is little cer-tainty as to which ones will beaccepted by the tax office. Taxauthorities suggest that theauthenticity of e-invoices canonly be confirmed by way ofan audit. Therefore, business-es have little certainty thattheir documents will beaccepted until they arealready embroiled in a taxproceeding.
According to Polish taxlaw, e-invoices that originatefrom a secure source wherecontent has not been alteredwill be acceptable. However,the Ministry of Finance hasyet to define a set protocolsfor businesses to prove com-pliance with both conditions.
EU law states that compa-nies can define their own pro-cedures to regulate this issue,but some analysts suggest thatthe laws governing e-invoicingin Poland are too general andhave yet to satisfy the majorityof business owners.
MMOO
Poland’s e-invoicingregulationstoo vague
AUGUST 22 – SEPTEMBER 4, 2011 FFIINNAANNCCEE && EECCOONNOOMMIICCSS www.wbj.pl 9
Currencies
Is now the time to invest in the z∏oty?WBJ asked analystswhether the Polishcurrency is a good buy
The roller-coaster ride thatthe markets have been on oflate has sent investors scur-rying from currencies thatare perceived as “risky” suchas the z∏oty. Although it haspulled back from some of thelows it hit in mid-August, thez∏oty is still far weaker thanit was earlier in the year.
The situation came to ahead on August 11, when thez∏oty-euro exchange ratereached as high as z∏.4.20. Atthat point Danske Bankissued a statement sayingthat the rate was unjustified,explaining that it was an“overreaction” by the mar-kets.
“We argue that the z∏oty
is cheap compared with fun-damentals,” the bank’s chiefanalyst Lars Christensen saidin the statement. The z∏oty stood at 4.19
against the euro as WBJ wentto press.
So, is now a good time toinvest in the z∏oty?
Experts that spoke with
WBJ were cautious. “It isvery difficult for us to predictwhether now is the correcttime to look for other cur-rencies such as the z∏oty,”said Tomasz Bursa, an ana-lyst at Ipopema Securities inWarsaw, who mooted thepossibility of further weak-ening.
“There could definitelybe a depreciation of thez∏oty.”
Pawe∏ Kordala of X-TradeBrokers echoed this opinion,saying investors should waitto assess the position of thecurrency, as its current weak-ness could hold. “Thevolatility of the markets isquite large at the currenttime and it’s not easy to pre-dict the future,” he said.
“That the Polish currencywill decline is quite proba-
ble. The [negative] senti-ment on the financial mar-kets could lead to the sell-offof risky assets such as thez∏oty. And if I were planning
to buy z∏oty, I would wait afew weeks before investing,”he added.
DDaavviidd IInngghhaamm,, AAlliiccee TTrruuddeellllee
Inflation
IInntteerreesstt rraatteess lliikkeellyy ttoo rreemmaaiinn ssttaabbllee,, RRPPPP ssaayyssThat’s despiteevidence inflationarypressures are easing
Indications from Poland’srate-setting Monetary PolicyCouncil (RPP) suggest it willkeep interest rates stable inthe near future, despite signseconomic and inflationarygrowth rates are decelerating.
RPP member AndrzejKaêmierczak said recently thatinflation was still too high, andthat current interest rates werelikely to be maintained in thenear future.
The RPP raised the head-line interest rate by a total ofone percentage point, to 4.5
percent, between January andJune this year.
“Inflation would have to fallclearly below 4 percent year-on-year to make interest ratecuts possible,” Mr Kaêmier-czak said in late August.
Poland’s inflation rateslowed in July on lower foodprices, growing 4.1 percent y/y,from 4.2 percent in June and 5percent in May.
According to analysts atBZ WBK, inflation will stayabove 4 percent for thereminder of the year, whichwould put the RPP in a ratheruncomfortable position – theoutlook for economic growthwill likely deteriorate and at
the same time inflation willremain above the centralbank’s target of 2.5 percent.
Signs of a slowdown Although economists wereworried just a few weeks agoabout Poland’s rocketing infla-tion rate and theorizing thatcentral bankers would contin-ue to raise interest rates tohead it off, global economicfactors have changed thelonger term outlook signifi-cantly.
A jittery global economyalong with slowing GDPgrowth rates in Europe nowlook to be taking a bite out ofinflation growth.
Poland’s largest tradingpartner, Germany, saw a par-ticularly sharp second-quarterslowdown, with its economygrowing just 0.1 percent q/q.
Indeed, factors hadchanged so dramatically thatDanske Bank, which had pre-viously predicted at least onemore interest-rate hike thisyear, changed its predictionand now believes that the RPPwill cut interest rates by a totalof 50 basis points within thenext 12 months.
“Given the sharp deterio-ration in the global financialsituation and downward pres-sure on commodity prices weno longer see major upside
inflationary risks in Polandand hence, we have decidedto change our forecast,”Danske Bank’s chief analyst
Lars Christensen wrote in areport.
GGaarreetthh PPrriiccee,, AAnnddrreeww KKuurreetthh
SH
UT
TE
RS
TO
CK
Is it time for investors to take a closer look at the z∏oty?
August
2011*
July 20
11
June 2
011
May 20
11
April 2
011
March 2
011
Februa
ry 2011
Januar
y 2011
*August average through 17.08
3.75
4.00
4.25
Steep climb
EUR/PLN exchange rate, average at the end of each month*
Source: National Bank of Poland
Jul. 20
11
Jun. 20
11
May 20
11
Apr. 20
11
Mar. 20
11
Feb. 20
11
Jan. 20
11
Dec. 20
10
Nov. 20
10
Oct. 20
10
Sep. 20
10
Aug. 20
10
Jul. 20
10
3
4
5
Steady climb
The National Bank of Poland's main interest rate, July 2010-July 2011
Source: National Bank of Poland
AUGUST 22 – SEPTEMBER 4, 201110 www.wbj.pl CCOOVVEERR SSTTOORRYY
A metal cupboard in a base-ment laboratory in Warsaw’sMokotów district contains avital piece of Polish history.Only a select handful have laideyes on the artifact though, andfew have ever even heard of it –because the history in questionsimply hasn’t happened yet.
The cupboard does not con-tain lost treasures, in fact itscontents look more like com-mon PC parts. But put togeth-er, they will form the first satel-lite ever built in Poland, theBRITE-PL 1, known to every-one outside the developmentteam as the Lem – named afterthe grand master of PolishScience Fiction, Stanis∏aw Lem.
A golden cube, roughly thesize of a mailbox, the satellitewill be an invaluable tool forPolish astronomers. But if itscreators have their way, thedevice could prove to be farmore significant than that – itcould mark the beginning of areal Polish space industry.Now, the 30-man team of sci-entists and engineers of thePolish Academy of Sciences’
Space Research Centre justneed to finish it.
Poland’s space odysseyWhile Poland’s space programto date has rarely been front-page material, Poles do haveplenty of experience buildingspace instruments. The 1978Soyuz 30 flight might be best-remembered as the one andonly time that a Pole, Miros∏awHermaszewski, travelled tospace. The capsule itself was100 percent Soviet technology,but many of the devices for theexperiments on board werebuilt in Poland, marking thefirst time that an item with a“Made in Poland” tag waslaunched into orbit.
Since then, Polish scientistshave built bits and pieces –often important ones – of vari-ous spacecraft. The SovietFobos 2 probe, launched in1988, was supposed to carryPolish scientific instruments allthe way to Phobos, a potato-shaped moon of Mars. It was tobe a triumph of Polish science,a symbol of the friendship
between Poland and the SovietUnion, and a boon to the Pol-ish communist government’spropaganda efforts.
A year later, just as the com-munist government was beingdismantled at the Round TableTalks, the spacecraft sufferedthe same fate that had befallenthe communist alliance thatlaunched it. Its system crashed.
But at other times, the Poleshad more luck. Polish opticalinstruments flew on the MarsExpress and Venus Expressorbiters. The The SpaceResearch Centre supplied keycomponents for the infraredspectrometer of the EuropeanSpace Agency’s (ESA) €1 bil-lion Herschel space observato-ry. The Wroc∏aw University ofTechnology’s logo made it allthe way to the InternationalSpace Station, along with a pairof antennae built for theColumbus module. And theAndrzej So∏tan Institute forNuclear Studies in Âwierk willsupply detectors for theplanned Chinese space stationif, and when, that launches.
And then there’s the spacehamster. Built by a small teamfrom Warsaw for this year’sRussian Fobos-Grunt space
probe, the CHOMIK (“HAM-STER”) geological penetratorwill attempt to take a sample ofthe surface of Phobos andbring it back home. If that hap-pens, the device, basically a tinyspace-age jackhammer, willearn redemption for the failureof the 1988 mission.
The CHOMIK is only thelatest in a line of Polish-builtspace power tools. Another one,chosen by ESA over a compet-ing American design, is current-ly flying on the European Roset-ta mission to the Churyumov-Gerasimenko comet. The latestin the series, nicknamed KRET,or “MOLE”, will soon hammeraway on the surface of themoon.
“Devices like the CHOMIKmight one day be used in deep-sea exploration” said KarolSeweryn, the manager of theinstrument’s developmentteam. “The conditions downthere are in fact very similar –pressure extremes and buoyan-cy, which, just like zero-gravity,makes digging difficult.”
But before the Polish spaceindustry corners the market indeep-sea drilling, there is theslight challenge of actuallybuilding an industry in the first
place. And here’s the problem:while Poles have proven them-selves to be very competent atproducing instrumentation,they have yet to learn to createcomplete satellites or probes.Things like spacecraft commu-nications, satellite integrationand launch procedures aremissing from the CVs of mostPolish space engineers. Andwithout them they have longbeen restricted to playing asupporting role in the globalspace business.
That is changing though,thanks to some Canadians andtheir bright ideas.
Building an industryTomasz Zawistowski, the headof the BRITE-PL project, wasclearly excited as he gave WBJ atour of the lab. The tall, grayingscientist could talk for hoursabout the orientation gyros, thechallenges of fitting the instru-mentation into the custom-made housing and the arduoustesting process. It’s plain thathe’s proud of his baby.
“This project is the brain-child of proffesor S∏awekRucinski, who left for Canada30 years ago and teachesastronomy at the University ofToronto,” he explained.
“A couple of years ago hesuggested that Poland join theBRITE consortium, which atthat point included the Canadi-ans and the Austrians. The ideawas picked up by his Polish co-worker, professor AleksanderSchwarzenberg-Czerny, whowent to the Ministry of Scienceand convinced it to finance theproject.”
It must have taken a lot ofnegotiating, but finally the min-istry granted the Polish Acade-my of Sciences a z∏.13 milliongrant, enough to build two ofthe satellites. They will formpart of a mini-armada, alongwith two Canadian and twoAustrian spacecraft.
Together they will monitorfast-changing stars, whosedynamic evolution has not yetbeen accurately modeled.Hopefully, the satellites willhelp create a new theoreticalmodel of stellar dynamics.
The constellation will be
monitored by three trackingstations, one in each of the par-ticipating countries. The over-all design and most of the partsare Canadian-made, but thePoles are learning fast. Andthey are already coming upwith their own improvements.
“The knowledge we’regathering here will be passedon,” Mr Zawistowski ex-plained. “The know-how wegain now will be used on thesecond BRITE satellite, sincewe’re going to alter its design abit. And we’re hoping there’smore to follow. We’ve just filedour paperwork for the financ-ing of a new technology satel-lite and we’re hoping we’ll getto work on it soon.”
The BRITE-PL 2, or He-velius, will be assembled oncethe team finishes work on theLem. Once the first device isassembled, it will undergovibration testing that simulateslaunch conditions. Then it willgo into a vacuum chamber,where it will be alternatelyheated and frozen, to simulateorbital operations. After thisshake-and-bake is over, likelyby the end of November, it willbe considered flight-ready andwill await its launch on top of aformer Soviet ICBM – current-ly slated for September, 2012.
2012: a breakthrough yearIndeed, 2012 is shaping up tobe a breakthrough year for thenascent Polish space industry.It will likely be the year whenPoland finally becomes a fullmember of the EuropeanSpace Agency – a move thatPolish governments have beenreluctant to make, perhapsfearing that the very mention ofthe word “space” on theevening news would makethem targets for ridicule.
But for Jakub Ryzenko, aspace-policy specialist at theSpace Research Centre, Pol-and’s application to join ESA isgreat news, even if it is overdue.
“The truth of the matter iswe’re already paying a lot ofmoney for joint Europeanspace projects,” he said. “Trou-ble is, our companies and scien-tists aren’t getting any money in
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A model of the BRITE-PL1, the first wholly Polish-built satellite
The construction of the first entirely Polish-built satellite could finally mark the beginningof a fully fledged Polish space industry
The global space business is booming. According to TheSpace Report 2010, the global space economy for 2009reached $261.61 billion in government budgets and commer-cial revenue, a growth of nearly 40 percent in five years. ●
A business in lift-off
Commercial launch systems ($0.08 bln)
Other ($1.5 bln)
Public expenditures outside the US ($21.75 bln)
US public expenditures ($64.42 bln)
Commercial infrastructure ($83.63 bln)
Commercial satellite systems ($90.58 bln)
35%
32%
25%
8%
The global space economy
The Space Report 2010, the Space Foundation, USA; Polish Ministry of Economy
Total: $261.61 billion
Poland’s space industry
An overduelaunch Wojciech Brzeziƒski
AUGUST 22 – SEPTEMBER 4, 2011 CCOOVVEERR SSTTOORRYY www.wbj.pl 11
return.”Poland’s share of the com-
mon European space budgetcomes to just over €17 million,paid through its contribution tothe EU budget. But ESA’s rulesstate that the agency’s budget isdivided between its memberstates. Each country gets 90percent of its contribution back,as contracts to both scientificinstitutions and companies.Once Poland joins the ESA, itwill have to pay a yearly contri-bution of about €20 million ontop of what it already spends.But it would get nearly €40 mil-lion back. And Polish scientistswould love to get their hands onthat kind of money.
“The space industry is wortharound $260 billion per year,”Mr Ryzenko pointed out. Thatincludes launches, satellite con-struction, space applicationssuch as navigation, communica-tions and imaging, as well as themanufacture of devices like GPSsystems and satellite dishes.
Unfortunately, Poles havetrouble competing on the inter-national markets because theyface competitors who for yearshave been using public fundsand public research to developtheir own technologies.
A change in attitudeSo far, Poland doesn’t evenhave a space agency that couldensure that what money there iswould be spent on high-returnprojects. The Economy Min-istry currently has just one per-son handling everything con-nected to the space business.
But the government’s atti-tude might be changing. A pre-liminary space strategy hasbeen drafted – although thedocument is yet to be officiallyadopted by the government. Itproposes a three-step strategyfor developing the Polish spacesector.
The first move is alreadybeing made – that’s joiningESA. Polish scientists and busi-nesses would then be able togain experience, contacts andmoney that would help themcompete.
Step two would finally seethe creation of a Polish SpaceAgency that would coordinatethe country’s space strategy andspending.
Step three would see a sepa-rate Polish national space pro-gram with its own goals, and itsown budget, dedicated to fillingin the gaps in the Europeanprojects and helping to coverspecifically Polish interests by,say, launching and operatingsatellites that would help thegovernment respond to emer-gencies such as last year’s dev-astating floods.
If those plans seem far-fetched, it’s worth pointing outthat over 20 countries alreadyown and operate their ownimaging satellites. Quickaccess to satellite intelligence-gathering is no longer a luxury– it has become a standard formodern societies. And Poleshave lots of experience creat-ing complex computer and
robotic systems, as has beendemonstrated by the victory ateam of young Polish scientistswon earlier this year at theUniversity Mars Rover Chal-lenge in Utah. The Polishteam beat out US academicteams with NASA backing.
The final countdown“We’re in the final countdownphase, as far as the Polishspace industry is concerned,”said Tomasz Zawistowski,looking at the full-scale mock-up of the BRITE-PL 1.
“As soon as we join ESAwe’ll be getting a steady
stream of financing for anumber of projects, and touse that well, we’ll need anindustry. We have plenty ofskilled people, lots of ideas. Ifyou turn on the televisionyou’ll see how well our scien-tists, engineers and studentsare doing. So it’s just a matterof time. Maybe two years,before the first large satelliteprojects start rolling.”
And he intends to be therewhen the revolution finallylaunches.●
Wojciech Brzeziƒski is areporter for Polsat News
Miros∏aw Hermaszewski is the first,and so far only, Pole to have ever vis-ited space.
Born September 15, 1941 in anarea of Poland that is now part ofUkraine, Mr Hermaszewski knewhardship at an early age. His fatherwas one of 19 members of his familythat were murdered during the Vol-hynian massacres of World War II, inwhich Ukrainian nationalists killed Poles in an effort to eth-nically cleanse the region. After the war he and his familymoved to Wo∏ów, near Wroc∏aw.
He graduated in 1965 from the Polish Air Force Acade-my in D´blin. In 1976 he was chosen from several hundredPolish pilots to join the Intercosmos Group of future cosmo-nauts and in 1978 was selected to fly into space.
Mr Hermaszewski joined Belarusian-born Pyotr Klimukon the Soyuz 30 mission to the Salyut 6 space station. Themission lasted from 15:27 on June 27 to 13:30 on July 5,1978. During their mission, Mr Hermaszsewski and MrKlimuk visited the resident crew of the Salyut 6, and per-formed various experiments, including medical experiments(one, called “Smak” tested why some food was less palatablein weightlessness) and crystallization experiments (one ofwhich produced a significant yield of cadmium telluriummercury). The crew was also tasked with taking photos ofthe Earth – including Poland – with special photographyequipment.
On October 12, 1988, Mr Hermaszewski was promotedto the rank of brigadier general. In 1991-1992 he was deputycommander of the Polish Air Force and Air Defense.
In 2001, he ran unsuccessfully for election to the Senatefrom the Democratic Left Alliance – Labour Union group-ing, and in 2005 he also ran unsuccessfully for the Sejm onthe Democratic Left Alliance list.
He is also member of the Committee on Space and Satel-lite Research at the Polish Academy of Sciences and of theAssociation of Space Explorers.
In 2003 he was awarded the Commander’s Cross of theOrder of Polonia Restituta, one of Poland’s highest honors. ●
Miros∏awHermaszewskiThe only Pole to go to space
Mission statistics:
Mission name Soyuz 30Spacecraft mass 6,800 kg (15,000 lb)Crew size 2Call sign Kavkaz - "Caucasus"Launch site Baikonur Cosmodrome Launch date June 27 1978 15:27:21 UTCLanding July 5 1978 13:30:20 UTC, 300 km
(190 mi) W of TselinogradMission duration 7d/22:02:59Number of orbits 125Apogee 261.3 km (162.4 mi)Perigee 197.6 km (122.8 mi)Orbital period 88.83 minutesOrbital inclination 51.66°
The Soyuz 30 mission
AUGUST 22 – SEPTEMBER 4, 2011OOPPIINNIIOONN && AANNAALLYYSSIISS12 www.wbj.pl
Polish Foreign MinisterRados∏aw Sikorski issued a for-mal apology on August 12 for
the release of sensitive information,including financial data, about severalBelarusian opposition figures andgroups operating in Poland to author-ities in Minsk. This follows Lithua-nia’s revelation on August 5 that ithad released information on Belaru-sian opposition groups to the Belaru-sian government.
It remains unclear exactly why thisinformation was released to Belaru-sian authorities, who have used thedata to arrest prominent rightsactivists and opposition figures.Whatever the cause, these develop-ments have damaged both Lithua-nia’s and Poland’s reputations ashavens for the Belarusian oppositionand will hamper Vilnius and Warsaw
in their geopolitical competition withMoscow over Belarus.
Investigations underwayInvestigations into the release ofinformation are being held in bothLithuania and Poland. The Lithuan-ian Justice Ministry, which releasedthe information to its Belarusiancounterpart, has said the data releaseoccurred under legal and technicalnorms. Lithuanian Justice MinisterRemigijus Simasius said Minsk’srequest for information was treatedas a “routine question” and that theministry was not aware of the politi-cal status of the people involved. Headded that if the ministry had knownMinsk would use the information tocrack down on opposition figures, itwould have acted differently.
Meanwhile, the Polish ForeignMinistry issued an official statementthat Belarus obtained the informa-tion from the Polish Prosecutor Gen-eral’s Office by “taking advantage ofa system of international proceduresdesigned to counter terrorist andcriminal threats.” Two officials in theProsecutor General’s Office lost theirjobs over the affair (see article, p.4).
However, several groups – includ-
ing many within the Belarusian oppo-sition – are disputing these explana-tions. Ales Michalevic, a formerBelarusian presidential candidatewho resides in Warsaw, called theactions of the Polish Prosecutor Gen-eral’s Office a “betrayal.” Some with-in Lithuania and Poland are ques-tioning the reason for the informa-tion release.
Bringing Belarus closerThese developments are controver-sial because EU members Lithuaniaand Poland are two of the most fer-vent supporters of the opposition inBelarus. Lithuania and Poland havelong served as places for Belarusianopposition figures and groups to liveand operate and have helped thesegroups in terms of funding andorganization.
But there is also a geopoliticalcontext to this opposition activity:Lithuania and Poland want to count-er Russia’s resurgence into its formerSoviet periphery, which has been par-ticularly strong in Belarus. Warsawand Vilnius both have cultural andhistorical links to Belarus, and it is intheir interest to counter Russia’sgrowing influence over Minsk and at
the very least keep Belarus neutral. Thus, Lithuania and Poland have
been supporting the Belarusianopposition and trying to bring thecountry closer to Europe. This sup-port has grown considerably this pastyear since Belarusian PresidentAlexander Lukashenko rebuffed theEuropeans and has been forced tofurther accede to Russia’s demandsas a result of growing financial andeconomic problems in Belarus.Poland hosted a Belarusian opposi-tion conference in February 2010 andhas made Belarus’ closer integrationwith the European Union one of themain priorities of its EU presidency.Lithuania spearheaded the sanctionsregime against Lukashenko and hasvocally opposed Russian and Belaru-sian energy plans in the Baltic region.
Further complicationsGiven Lithuania and Poland’sinterest in wooing Belarus, it isstrange that both countries wouldrelease sensitive informationregarding opposition groups toBelarusian authorities. The investi-gations launched in both countrieswill tell whether there were in facttechnical and legal causes for the
information release or whetherthere were more political aspectsto Vilnius and Warsaw’s actions.
What is clear is that theserecent developments will compli-cate Lithuania and Poland’s effortsto strengthen the opposition inBelarus. Regardless of the reasonfor the release of information toBelarus, Lithuania and Poland’sreputations as effective supportersof the Belarusian opposition havebeen called into question.
This does not mean they willnot continue supporting the oppo-sition – they will – but now Belaru-sian opposition groups and non-governmental organizations oper-ating in Lithuania and Poland willbe concerned that they are lesssafe. This means that the efforts ofthe two countries that have beenmost active in bringing Belaruscloser to Europe and away fromRussia’s influence are facing amajor setback – to the delight ofMoscow. ●
This edited version of “Poland,Lithuania suffer strategic setback inBelarus” is republished with permis-
sion of STRATFOR
“These developmentshave damaged bothLithuania’s andPoland’s reputations”
September will mark 20 yearssince the Baltic States regainedtheir independence from Soviet
Russia. Estonia, Latvia and Lithuaniahave come a long way since then, buttheir transition to democratizationand Western institutions has beenuneven. Nevertheless, while theprocess has laid bare some stark dif-ferences between these countries,each has transitioned successfully.
The ‘Singing Revolution’and Baltic unityThe Baltic States regained their inde-pendence at the culmination of theso-called “Singing Revolution,” aseries of protests in the years 1987-1991 which were partly the result ofthe slow collapse of the Soviet Union.
During these demonstrationspatriotic songs, often derived fromfolklore, were sung. The singing uni-fied the people of the Baltic States intheir revolution, helping them to per-severe through the long processtowards independence.
This unity was in full view onAugust 23, 1989, the 50th anniversaryof the signing of the Molotov-Ribbentrop Pact in which Germanyand Russia agreed to divide Europeamongst themselves, with Russiareceiving the Baltic States. On thatday, approximately two million peo-ple stood in a row, holding hands to
create a human chain alongside theroad from Vilnius via Riga to Tallinn.The “Baltic Chain” was perhaps themost iconic moment of the SingingRevolution.
On March 11, 1990, Lithuaniadeclared independence. Latvia andEstonia soon followed suit. This metwith fierce opposition from Moscow.Only in September 1991 were theBaltic States recognized as independ-ent by the USSR.
The road to NATO and the EU– together or separate? The Baltic States passed that test, butother challenges came along in theform of European integration andaccession to NATO structures. Thesechallenges would ultimately proveharder to overcome with such unity.
The years after 1991 brought vari-ation in the process of democratiza-tion in the region. This resulted indivergent directions in foreign policy,among other things. Estonia optedfor strong cooperation with theNordic countries, especially with Fin-land, while Lithuania focused on rela-tions with Poland and the other coun-tries of Central and Eastern Europe.
Although Russia remained animportant economic partner for allthree countries, especially concerningthe energy sector, they carried outvery different economic policies.
Estonia became the most liberal andLithuania the most protectionist, withLatvia opting for a moderate variant.
So though they had geopolitics incommon, the different paths each ofthe countries took after independ-
ence show that post-independenceBaltic unity is often more of a myththan a reality.
Success despite differencesThe Baltic States have succeeded inbecoming members of the EU andNATO. Estonia has led the Baltics intheir transition, and has consistentlybuilt up a positive image. The Eston-ian authorities have been deter-mined and have maintained a restric-tive financial policy, allowing thecountry to meet the Maastricht crite-ria despite the global economic crisis.It entered the euro zone in January2011. Although the crisis forcedLatvia to postpone plans to adopt theeuro, it nevertheless efficiently andeffectively coped with the crisis afteran EC and IMF-led bailout.
Over the last two decades, it is dif-ficult to identify a loser among theBaltic States, especially when com-pared to other former Sovietrepublics, which are faced with seri-ous problems on the road to democ-ratization. The Baltic States, despitetheir divergence after independence,have transformed successfully. ●
Kinga Dudziƒska is an analystat The Polish Institute
of International Affairs(PISM). www.pism.pl
Poland, Lithuania suffer strategic setback in Belarus
The Baltic States: a story of successful transformation
The Baltic Chain - August 23, 1989
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Kinga Dudziƒska
CO-MANAGING EDITOR
GARETH PRICE([email protected])
CO-MANAGING EDITOR
ALICE TRUDELLE([email protected])
POLITICS EDITOR
REMI ADEKOYA([email protected])
REAL ESTATE EDITORADAM ZDRODOWSKI([email protected])
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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.
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 • AUG 22 – SEP 4, 2011, LI 16/33-34
Auchan in
Lublin’s
Felicity mall
Atrium European Real
Estate will build a 20,000-
sqm hypermarket for
Auchan as part of its
under-construction
74,000-sqm Felicity
shopping center project in
Lublin, in southeastern
Poland. According to an
agreement signed by the
two companies, Atrium
will first develop the
facility and subsequently
sell the completed
hypermarket to Auchan.
High demand
for Ventana
Developer Westmark Polska
announced recently that it
has sold all the houses
completed so far in the
second phase of its Ventana
investment, a housing estate
located in Walendów, 18 km
south-west of Warsaw. In
this phase 18 buildings have
already been built, while 26
are still under construction.
The second phase of
Ventana is scheduled to be
completed at the turn of
October and November
2011. The beginning of work
on the third phase of the
investment is planned for
2012. ●
Ronson launchesnew projects . . . . . . . . . . . . . . . .13Investment in land doubles . .13Budimex launches Gocławskascheme . . . . . . . . . . . . . . . . . . . . .14Elbfonds builds shoppingcenter . . . . . . . . . . . . . . . . . . . . . .14Developers team upin Poznań . . . . . . . . . . . . . . . . . . .14Property-related stocks . . . . . .16Design & innovation . . . . . .16-17Szczecin attracts interest . . . .18
In this issue
1816-17
Foreigners renovating or
redesigning properties need to
understand Polish preferences
Commercial investments in
Szczecin are on the rise
Residential developers
RRoonnssoonn sstteeppss uupp WWaarrssaaww aaccttiivviittyyThe company is set tolaunch new projectsand purchase land forfurther developmentsin the city
Warsaw Stock Exchange-listedresidential developer Ronsonwill later this year launch con-struction on Espresso, the com-pany’s latest housing project inthe Polish capital. Located in thecity’s Wola district, the invest-ment will comprise a total of 688apartments when completed.
Pre-sales of units in the firstphase of the investment, whichis scheduled for delivery at theend of 2013, have already start-ed. Ronson is currently waitingfor a building permit for theproject and is in the process ofselecting a general contractor.
The developer is also due tocommence work on the secondphase of Sakura, a residentialscheme located in the vicinity ofWarsaw’s S∏u˝ewiec horse rac-
ing track. The new phase willcomprise 136 apartments duefor completion in late 2013.
A host of other projects arealso in the pipeline. At thebeginning of 2012, Ronsoncould launch a project called
Magellan which will be builtclose to the capital’s GaleriaMokotów mall. Schemes on ul. Tamka, in Warsaw’s centraldistrict, and in Mokotów’sSiekierki neighborhood are alsoin the offing.
Meanwhile, the developeris negotiating the purchase ofland in locations includingWarsaw’s Bia∏o∏´ka, Bemowo,Praga Po∏udnie and Ursynówdistricts, where it plans tobuild popular-segment apart-
ments.Talks concerning the acquisi-
tion of some of the plots are atan advanced stage and Ronsonhopes to close two or three dealsbefore the end of this year,Tomasz ̧ apiƒski, the company’sfinancial director, said at arecent press conference.
According to Mr ¸apiƒski,Ronson’s increasing develop-ment activity will improve thefirm’s financial results nextyear. In the first half of 2011,the company saw revenues ofz∏.39.9 million, down fromz∏.49.5 million in the same peri-od of last year.
This resulted from the factthat Ronson did not deliverany major investments in theperiod and thus did not havenew units it could turn over tobuyers, Mr ̧ apiƒski explained.“The bulk of the ongoingschemes are scheduled forcompletion in Q2, Q3 and Q42012,” he said.
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Espresso will comprise a total of 688 apartments when completed
Property purchase
Investment in land to double this yearInvestors aresnapping up land in Poland
By the end of 2011, realestate investors and develop-ers will have bought plots inPoland worth a total ofz∏.1.2-1.5 billion, more thandouble the value of land pur-chased last year, when thefigure amounted to aboutz∏.500 million, according to arecent forecast by Colliers
International Polska.Since the beginning of this
year, plots worth a combinedz∏.600 million have been sold.Major transactions involvedJW Construction and DomDevelopment, which paidalmost z∏.174 million andz∏.168 million respectively forplots in Warsaw, as well asEcho Investment, which pur-chased two pieces of land inthe capital for z∏.63 millionand €31 million.
“Today, developers andinvestors buy very cautiously.Negotiations last eight to 12months and close towardsthe end of the year. In termsof purchases, the first half ofthe year was not impressive,but one has to rememberthat in the same period oflast year, not a single majortransaction was closed,”Daniel Puchalski, head ofthe investment land depart-ment at Colliers Internation-
al, said in a statement. He added that at present,
advanced negotiations, in-cluding those with prelimi-nary agreements alreadysigned, are underway on thesale of plots valued at a totalof approximately z∏.520 mil-lion.
“By the end of the year,land worth a further severalhundred million z∏oty willhave found its way onto themarket,” Mr Puchalski said.
Colliers itself is now work-ing on a number of projectsinvolving major investmentplots currently available in thePolish market. Those include aportfolio of land of Warsaw-based automotive companyFSO and, located in directproximity of Warsaw’s interna-tional airport and a major plotlocated in the upmarket Kon-stancin-Jeziorna suburb of thePolish capital.
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AUGUST 22 – SEPTEMBER 4, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE14 www.wbj.pl
Be∏chatów’s
Bawe∏nianka
gets financing
Bawe∏nianka, the investor
of an eponymous shopping
and entertainment center
being built in Be∏chatów,
has secured financing
from Bank Polskiej
Spó∏dzielczosci for the
z∏.105 million
development. Work on the
mall launched in May this
year and is scheduled to
finish in the second half of
2012. Bawe∏nianka is to be
the first project of its kind
in Be∏chatów.
Rolfe Judd
expands
Architecture firm Rolfe
Judd is expanding its
presence in the Polish
market. In early August,
the company opened its
second Polish office,
located in Warsaw. Its first
office is in Katowice.The
opening of the Warsaw
office was the result of an
increased demand for
architectural services
throughout Poland, the
company said.The firm is
currently involved in
projects in Warsaw,
Katowice, Kraków, ¸ódê,
the Tri-city area and on the
Baltic coast. ●
Elbfonds to build shoppingcenter in SiedlceReal estate investor ElbfondsDevelopment, part of theGerman Elbfonds Group, isworking on a shopping centerproject in Siedlce, Maz-owieckie voivodship.
The development will bebuilt on a 22-hectare plotlocated approximately 3 kilo-meters from Siedlce’s down-town and will include a hyper-market with a shoppinggallery, as well as a stand-alone DIY market and aretail park.
“We see Poland as a very
attractive market for theinvestors of our fund. Lowdensity of modern retail spacein Siedlce and the city’s goodpurchasing power per capitaattracted us to this particularinvestment,” Kurt-Georg Her-zog, managing director ofElbfonds Group Germany,said in a statement.
The retail scheme inSiedlce, which is being com-mercialized by ASTARISProperty Solutions and isscheduled to open towardsthe end of 2013, is only part
of Elbfonds’ investmentplans in Poland.
The company wants tobecome one of the leadingretail developers in thecountry by the end of 2012,by which point it hopes tohave a development volumeof €150 million.
The planned develop-ment in Siedlce will be thecompany’s largest invest-ment in the country to date,although its value has notbeen disclosed.
AAddaamm ZZddrrooddoowwsskkii
BudimexNieruchomoÊcilaunches new Warsaw project
Warsaw Stock Exchange-listeddeveloper Budimex Nieru-chomoÊci has launched con-struction on its OsiedleGoc∏awska multi-family hous-ing investment. The develop-ment, which will be located inWarsaw’s Praga Po∏udnie dis-trict, will comprise three build-ings offering a total of 323apartments.
Osiedle Goc∏awska isscheduled for completion inQ3 2013. Construction compa-
ny Budimex is the general con-tractor of the project.
Part of Budimex, Poland’slargest construction holding,Budimex NieruchomoÊci hasto date delivered almost 6,000apartments to the Polish mar-ket. The company is currentlyselling units in schemes includ-ing Apartamenty Murano,Osiedle Wólczyƒska andOsiedle Idzikowskiego, all ofwhich are located in Warsaw.
AAddaamm ZZddrrooddoowwsskkii
NewConnect-listed developerMonday Development andUnidevelopment, a developerbelonging to the Warsaw StockExchange-listed Grupa Uni-bep, have signed an investmentagreement concerning thedevelopment in Poznaƒ’s Grun-wald district of a residentialproject whose value is estimat-ed at approximately z∏.65 mil-lion.
“Our cooperation covers the
whole investment process, fromthe purchase of the plot to theselection of the architecturaldesign and the general contrac-tor and the sale of the units totheir occupiers,” Kurt Mont-gomery, president of MondayDevelopment’s managementboard, said in a statement.
A special purpose vehiclecalled Monday Palacza hasbeen established in order todevelop the scheme, which will
be built on 12,500 sqm of landlocated at the intersection ofPoznaƒ’s ul. Heweliusza and ul.Palacza.
The project will comprise acomplex of four- and five-storeybuildings offering a total ofsome 200 apartments.
Construction on the invest-ment is expected to launch inthe second quarter of 2012 andfinish in Q2 2014.
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Developers join forces in Poznaƒ
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AUGUST 22 – SEPTEMBER 4, 2011LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE16 www.wbj.pl
Gant buys
z∏.60 million
Wroc∏aw plot
Warsaw bourse-listed
residential developer
Gant Development has
purchased more than 6.2
hectares of land located
at the intersection of
ul.Rac∏awicka and ul.
Skarbowców in Wroc-
∏aw’s Krzyki district. The
value of the transaction,
which the company
financed with its own
funds, amounts to z∏.60
million. The acquisition
will allow Gant to develop
16 multi-family buildings
at the location.
Robyg expands
Osiedle Zdrowa
WSE-listed developer
Robyg will launch
construction on the third
phase of its Osiedle
Zdrowa development in
Warsaw, in the fourth
quarter of this year. The
project, which will be
located in the capital’s
Wilanów district, will
comprise 192 apartments
sized from 38.5-91 sqm
and priced from almost
z∏.6,500 per sqm. ●
Security Closing % change 52-week 52-week % change Total Marketprice (week) low high (year) shares value
on Aug 18 (z∏.mln)
BUDIMEX 65.00 -7.14 65.00 109.20 -30.11 25,530,098 1,659.46
CELTIC 18.70 10.00 15.55 60.55 N/A 34,068,252 637.08
DOMDEV 28.10 0.36 28.00 50.80 -41.58 24,560,222 690.14
ECHO 3.40 -5.56 3.30 5.55 -26.57 420,000,000 1,428.00
ELBUDOWA 114.00 -5.08 114.00 188.40 -35.59 4,747,608 541.23
ENERGOPLD 3.09 2.32 2.97 4.10 -16.49 70,972,001 219.30
ERBUD 16.11 -9.24 16.11 61.00 -67.76 12,602,711 203.03
GANT 8.11 -5.70 8.11 21.78 -62.98 20,499,953 166.25
GTC 12.12 -3.81 12.12 24.98 -47.30 219,372,990 2,658.80
HBPOLSKA 1.17 20.62 0.97 3.90 -65.07 210,558,445 246.35
JWCONSTR 9.80 8.89 8.15 18.35 -40.35 54,073,280 529.92
LCCORP 0.89 -4.30 0.86 1.72 -39.46 447,558,311 398.33
MARVIPOL 7.66 1.46 7.22 12.81 -35.58 36,923,400 282.83
MIRBUD 2.64 8.64 2.25 4.75 -31.61 75,000,000 198.00
MOSTALWAR 24.42 -5.71 24.42 69.00 -62.49 20,000,000 488.40
MOSTALZAB 1.62 2.53 1.46 3.73 -55.12 149,130,538 241.59
ORCOGROUP 23.95 -0.21 21.58 40.00 8.13 14,053,866 336.59
PBG 90.95 -7.90 90.95 252.00 -59.58 14,295,000 1,300.13
PLAZACNTR 2.50 -5.30 2.40 5.39 -53.53 296,738,962 741.85
POLAQUA 14.89 12.12 12.70 20.60 -13.38 27,500,100 409.48
POLIMEXMS 2.07 7.81 1.85 4.65 -55.58 521,154,076 1,078.79
POLNORD 14.35 -3.17 14.35 39.41 -59.21 23,798,439 341.51
RANKPROGR 9.69 -10.69 9.69 13.60 -1.62 37,145,050 359.94
ROBYG 1.26 -7.35 1.20 2.13 N/A 257,390,000 324.31
RONSON 1.05 3.96 1.00 1.75 -38.60 272,360,000 285.98
TRAKCJA 1.87 1.08 1.74 4.97 -58.72 232,105,480 434.04
ULMA 59.00 3.15 57.20 88.00 -17.13 5,255,632 310.08
UNIBEP 4.50 -4.26 4.47 10.30 -46.36 33,927,184 152.67
WARIMPEX 6.18 0.98 5.90 10.89 -26.43 54,000,000 333.72
ZUE 8.39 1.08 8.20 15.14 N/A 22,000,000 184.58
Property-related stocksAdvertorial
Houses and residences in Konstancja estate blend perfectly intothe green landscape of Konstancin. The project is located in closeproximity to Warsaw, near the entry road to Konstancin-Jeziorna –a charming enclave, traditionally inhabited by the representativesof the media, business, arts and the diplomatic world. Konstancjais also located in an immediate vicinity to the American School ofWarsaw. Stylish architectural details, unique design and bestmaterials – this is what characterized the local buildings over 100years ago and still remains as an inherent feature of Konstancja.
All new residents of Konstancja can also purchase a limitededition MINI Cooper car, at a price of 19 900 PLN.
The investor of Konstancja estate is Globe Trade Centre S.A.(GTC S.A.) – one of the leading developers in the New Europe withover 15 years of experience, operating in 10 countries.
GTC develops projects and manages completed properties inthree key sectors of real estate: office buildings and parks, retailand entertainment centers and residential sector, realized morethan 130 projects in Europe.
You can find more information on the project at: www.konstancja.pl
Sales office:tel: +48 22 716 01 77
+48 22 716 01 74email: [email protected]
Design & innovation
UUppggrraaddee wwiitthh ccaarreeForeigners looking torenovate or redesigntheir investmentproperties need to beaware of somespecificities of thePolish market
The image of Poland as a landof crumbling tenement housesand hastily built residentialtower blocks is hard to shakefrom the mind of the averageWesterner. Nevertheless, thereis plenty of architectural inno-vation going on in Poland, asdevelopers, interior designersand architects respond to thedemands of a burgeoning mid-dle class and increasing num-bers of foreign buyers, who arecalling for higher standards ofdesign.
Polish architects and devel-opers, moreover, have eagerlyexperimented with ways todeliver high-quality, sustain-able residences. Many of¸ódê’s disused industrial build-ings, for example, have beentransformed into new apart-ment blocks. In ˚yrardów,meanwhile, a developer hasconverted an old linen spin-
ning-mill so that it now offersresidential lofts and luxurypenthouses (see box).
A large numbers of for-eigners, however, opt to buynewly built residences locatedin gleaming apartment build-ings, often sited on the edge oflarge cities like Warsaw. Whenit comes to interior design,
most expect to have to do littlewith the properties they buy.
Turnkey standard Many foreigners stay inPoland only for the length oftheir (often short-term) workcontracts, meaning long-terminterior design investment isnot a top priority.
Experts say foreign buyersoften chose to buy residencesfully furnished and ready tolive in.
Those who do opt to reno-vate often go through agenciesthat offer to undertake a proj-ect in its entirety, from designto overseeing the buildingwork.
Mamdom, for example, is acompany that offers to workwith clients on from-scratchprojects, in addition to offeringready-made designs. Amongthese, its “Lux Line” range isaimed at those who want to letproperty to corporate clients.Homes fitted out to this stan-dard offer features such aslaminate wood flooring, name-brand kitchen appliances andstainless steel finishes.
Dangers and pitfallsThe company has drawn-up alist of potential pitfallsinvestors could face in the Pol-ish interior-design market.First and foremost, it warnsabout the practice of half-fit-ting.
Builders who “half-fit” aproperty offer to do the samework as a rival firm but at alower price. To make up forthe lower income, they willoften add half the usual num-ber of tiles to a bathroom wall,for example, or give the wallsjust a single coat of paint. Asever, it is vital that a clientchecks the estimate carefully,to see exactly what the builderis offering to do.
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Katarzyna Piasecka
AUGUST 22 – SEPTEMBER 4, 2011 LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE www.wbj.pl 17
The use of cheap materialsand non-brand-name goods,Mamdom says on its website,will “reduce the marketabilityof your property in the shortterm and give you little guaran-tee of durability for the future.”
To guard against this, itrecommends that the clientinquire about the brands abuilder is using, and checkthat the materials being usedare well-known in the Polishmarket.
The firm also warns againstbeing tempted by “cash-in-hand” work, which althoughcheaper, is illegal in Polandand provides no paper trail ifshoddy work is carried out. Italso advises foreign clients toask the fit-out company forphotographs of completedprojects.
Demanding clientsForeigners who choose to ren-ovate interiors often bring anew perspective, and moremoney, to the table than theaverage Polish client.
Jacek Niezgoda fromKraków-based interior archi-tecture studio Artdesign saidthat foreign clients are moreopen to innovation and usuallyhave larger budgets thandomestic home buyers.
“They are also moredemanding when it comes tothe quality of design,” he added.
“We have worked with for-eign clients and I can say thatthe majority of them choose a
modern, minimalistic style.What counts for them first andforemost is functionality andthe use of new technologies,”added Aleksandra Karpiƒskafrom interior design studioOn/off architekci.
Polish interiorsA significant number of for-eign buyers purchase resi-dences in Poland as an invest-ment, meaning they aim to sellor rent them later to Polishclients. Foreign buyers musttherefore be in tune with thedemands of their potentialcustomers.
As far as general trends inthe Polish market go, expertscontacted by Lokale Immobil-ia said that for Poles, the func-tionality of a property is moreimportant than its having anoriginal or innovative design.
Foreigners that want to addvalue to a residence in Polandby renovating it should be awarethat the target market is rathernarrow, and perhaps more con-stricted even than it was prior tothe global financial crisis.
Artdesign’s Jacek Niezgo-da said that the slowdown onthe real estate market andrecently introduced restric-tions on mortgages havedecreased Poles’ desire tosplash out on flashy interiors.
“If there is a possibility tosave money, it’s usually by giv-ing up on luxury,” he said.
On the other hand, MonikaBronikowska and Adam
Bronikowski from architectur-al studio HOLA Design saidthat the demand for originalinterior design is increasing.
“The need to live in anapartment or house which hasa unique design characterizesan increased number of homebuyers in Poland,” the couplesaid in a joint statement sentto Lokale Immobilia
A taste of Europe Partly in response to thisdemand, trends from abroadare also becoming increasinglyimportant to Polish buyers.
“The taste of Polish homebuyers to a considerabledegree follows Europeantrends,” said the Bronikowskis.
According to them, the twomost popular color schemes inPoland at present are at oppo-site ends of the spectrum. Onthe one hand, many wantbright, clear interiors, while onthe other, a number want dark-er interiors, which employblack colors and elements ren-dered from darker wood.
According to experts, newtrends come and go muchmore quickly in Poland thanin many foreign markets,which have more deeplyentrenched traditions.
With this in mind, foreign-ers looking to rent or sell ren-ovated property in the Polishmarket will need to keep theirfingers on the pulse of Polishdesign trends.
KKaattaarrzzyynnaa PPiiaasseecckkaa
Hard lofts vs soft lofts
Hard lofts
The Lofty de Girarda scheme, which hasbeen developed in a former linen spinning-mill in ̊ yrardów, a previously significant tex-tile-producing city 45 km west of Warsaw,offers modern apartments in a post-indus-trial building. Such apartments, built in apre-existing building, are called hard lofts.
The 200-year-old building, named NowaPrz´dzalnia, houses 178 lofts rangingfrom 35 sqm to 100 sqm, as well as 29 lux-ury penthouses and a shopping-serviceszone on the ground floor. Loft prices startfrom z∏.5,500 per sqm.
The project was realized by Green Devel-opment, whose chairman ZygmuntSt´piƒski said that the uniqueness of hardlofts developed in old factories ensurestheir popularity.
Soft lofts
Soft lofts, in contrast to hard lofts, arenewly constructed dwellings. They are,however, built with similar materials, suchas glass, metal and concrete, as thoseused in the construction of hard lofts.
Woronicza Qbik Loft will be the firsthousing estate in Warsaw comprising softlofts, its developer says. It is being built byGhelamco Poland at the intersection of ul.Woronicza and ul. Racjonalizacji and willcomprise four connected buildings with atotal of 350 dwellings, including 183 two-storey lofts and 167 one-storey lofts. Theywill be sized from 32 sqm to 206 sqm, withprices starting from z∏.8,000 per sqm.Residences in the scheme will come on tothe market in 2012.
Which to choose?
In the opinion of Zygmunt St´piƒski, themain difference between hard and softlofts in terms of their attractiveness stemsfrom their age.
“A hard loft is original and a soft loft imi-tates this originality a little bit,” he said.“However, this is not equally important forall clients. Some prefer to live in a newlybuilt dwelling and for them soft lofts arethe ideal choice.”
Jeroen van der Toolen, Ghelamco’smanaging director for CEE, said that oneimportant factor with regard to soft lofts isthat it is possible to freely adapt them tothe personal needs of clients. He addedthat although the fashion for lofts inPoland has appeared relatively recently,the number of people attracted by the loft-lifestyle is increasing, although hestressed that the number of old buildingsthat could be transformed into loft devel-opments is limited. ●
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Regional markets
Szczecin attracts commercial investmentsA number of majorprojects have recentlybeen launched in thecity and more officeand retaildevelopments areplanned
The northwestern Polish cityof Szczecin has seen thelaunch of a number of newcommercial projects as of late,with property-market analystsclaiming the urban center isbound to attract more officeand retail investments in thefuture.
For major developers,Szczecin was off the radaruntil recently. They had main-ly focused on the larger mar-kets of Warsaw, Kraków,Wroc∏aw, Tri-city, Poznaƒ,Katowice and ̧ ódê. The situa-tion changed in 2009 whenEcho Investment launchedconstruction on its Oxygenbuilding in the city.
JW Construction Holdinghas recently started NowaDana, while SwedeCenter hasbegun work on Brama Por-towa, both of which are officeschemes located in Szczecin.Other major ongoing officedevelopments in the cityinclude Koncepta’s BaltisBusiness Park and Realkapi-
tal’s Piastów Office Park.“Although Szczecin has
only recently recorded stronginterest on the part of interna-tional investors, the city is cur-rently one of the most dynam-ically developing office mar-kets in Poland,” said KonradHeidinger, an analyst at CBRichard Ellis Poland.
According to CBRE data,construction is now underwayin Szczecin on more than80,000 sqm of A- and B+-classoffice space, which is particu-larly sought after by compa-nies from the business processoutsourcing and shared-serv-ice center sectors.
Apart from the schemesalready underway, severalother office investments arenow in the pipeline. However,because of the considerablecurrent supply, these will haveto wait until the under-con-struction office space is com-mercialized, Mr Heidingersaid.
Retail needsIn terms of modern retailspace, Szczecin still seems tohave lots of catching up to do.The agglomeration featuresnine shopping centers totalingsome 200,000 sqm of GLA,which makes for one of thelowest density ratios per 1,000
inhabitants among the largestPolish agglomerations.
According to a recentreport by Jones Lang LaSalle,Szczecin lacks modern devel-opments with a wide anddiversified offer, as a result ofwhich a number of popularretail brands are not repre-sented in the market at all.
“The market situation willchange considerably inautumn this year when GaleriaKaskada (42,000 sqm) opensin the city center. It will enableseveral brands, which up untilnow could not find suitablespace, to enter the Szczecinretail market,” read the analy-sis from JLLS.
Several other Szczecininvestments are planned,including Raiffeisen EvolutionProject Development’s FerioPogodno (31,500 sqm) andMayland’s Aleja S∏oƒca(38,000 sqm). For their part,both Echo Investment andNeinver are planning outletcenter developments in thecity.
Investment appealAccording to CBRE’s Hei-dinger, Szczecin is attractivefor investors for reasons suchas its proximity to the Germanborder, good road links withBerlin and access to the
Szczenin Goleniów and BerlinTegel airports.
The city’s other assetsinclude the high percentage ofthe population with a knowl-edge of a foreign language(German is particularly popu-lar), relatively low labor costsand competitive rents, whichare not expected to rise anytime soon due to the largenumber of ongoing projects.
Dariusz Wàs, deputy mayorof Szczecin, pointed out thatthe city had done much overthe last few years to becomemore investor-friendly. Morethan 40 percent of the city’sarea is now covered by a zon-ing plan and more zoningplans are expected to be enact-ed soon.
He added that since 2010investors in Szczecin havebeen able to benefit from spe-cial property-tax breaks. Thecity features a special eco-nomic zone which is part ofEuro-Park Mielec and covers72 hectares of land.
There are still locations inthe city which, due to theirtransportation and technicalinfrastructure, as well as exist-ing local demand, have con-siderable development poten-tial.
“The city authorities’activities are aimed at mak-
ing the number of attractivelocations grow steadily,” MrWàs said.
So far, it seems that strat-egy is working.
AAddaamm ZZddrrooddoowwsskkii
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JW Construction has begun work on its Nowa Dana
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LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE
AUGUST 22 – SEPTEMBER 4, 2011 www.wbj.pl 19
WWiillllee nnaadd ZZaalleewweemmAdvertorial feature
Approximately 20 kilometersfrom the First Warsaw Golf &Country Club, near the pictur-esque Zegrze Reservoir, in thevillage of Rajszewo, new luxuryvillas are being constructed.The location is ideal not only fornature lovers but for avidsailors and golfing enthusiastsalike. The planned luxury hous-ing community will be 20 min-utes from Warsaw by car andwould make for an exquisiteresidence for those who workin the hectic capital during theday, and who want to experi-ence comfort and silence in thearea’s natural and soothingconditions. Whether one wish-es to relax by the marina orenjoy a round of golf, residentscan take advantage of all thatthe villa community has tooffer. Could you ask for any-thing more?
The estates, named “Willenad Zalewem,” include 39 com-fortable single-family dwellings,and are located on a plot offorested area of over 1,000sqm. Each building will be builtin two stages, the first of whichis to be completed later thisyear. The developer is currentlyworking on four differentdesign proposals which willvary in size from 215 sqm to340 sqm. Prices will start atz∏.1.5 million. During the firstphase of the project, the Tra-montana villas are to be con-structed, named after the coolwinds that run through the westcoast of Italy and Corsica.
The architecture of thebuildings draws clear inspira-tion from Mediterranean cul-ture, while the large facades,taking advantage of amplewindow space, invite nature
right inside your home. Theinner axis of the houses islined with old trees. And foreach villa, designers haveincorporated the natural ter-rain in order to optimize sunexposure, garden size and toensure optimal privacy.
The estate will be a gatedcommunity fully protected by asecurity team. The area will befenced all around and moni-tored, with a reception locatedright at the entrance. In addi-tion, alarm systems will beintroduced for each of the vil-las. Right near the entrance ofthe estates, located on ul.Wojska Polskiego (vis-a-vis theentry onto Port Pilawa) therewill be a service building withan estimated area of 250square meters, allowing eachresident to have a parking lotnear their home. Here, there
are also plans for a local shop,cafeteria and bakery. On thefirst floor of the premises thereis potential for office space andalternatively, for two separateapartments.
Wille nad Zalewem will beimplemented by Plan InvestGroup, through cooperationwith Poland Dernet EnterprisesLtd. Currently, Invest Plan is abuilding group in Poland whichspecializes in residential andcommercial real estate. In addi-tion to the Wille nad Zalewemproject, the company plans tocomplete preparatory work fora housing estate in the town ofO˝arów Mazowiecki, as well asa project in Kraków.
Gomez Studio which de-signed Wille nad Zalewem is anarchitectural studio operatingunder the leadership of HernanGomez. Several years ago the
Gomez Studio designed theaward-winning family house ofthe year. Clearly, the two proj-ects echo each other in theirquality and style.
The general contractorbehind the construction is Vis-bauen, founded on the jointcooperation of Panorama Eco-Invest and Eko-gips, which haveworked in the construction mar-ket for several years.
Together with the villa com-munity, there will also be anentire infrastructure which willinclude sailing shops, a porttavern, and even a mini zoo. Anarea for sports, both for chil-dren and adolescents, isplanned. And of course, thegolf course can be reachedwithin 20 minutes. In such awell-located community, sailingand golf can become an every-day pleasure. ●
39 exclusive homes from 215 to 451 sqm
Quick and easy travel to and from Warsaw
Big, forested plots
Close to Zegrze Reservoir (across from Port Pilawa and Port Jachtowy Niepor´t)
LLOOKKAALLEE IIMMMMOOBBIILLIIAA –– RREEAALL EESSTTAATTEE
AUGUST 22 – SEPTEMBER 4, 2011MMAARRKKEETTSS20 www.wbj.pl
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PLN-EUR
4.1
605
4.15
09
4.15
83
4.14
75
4.14
17
4.
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11.0
8
12.0
8
16.0
8
17.0
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5 PLN-USD
11.0
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16.0
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2.
8914
2.8
785
2.87
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2.5
3.0 PLN-GBP
11.0
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12.0
8
16.0
8
17.0
8
18.0
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19.0
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4.72
41
4.7
477
4.72
99
4.71
79
4.7
480
4.83
54
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5 PLN-CHF
3.9
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3.78
84
3.7
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4
3.6
112
3.69
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11.0
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17.0
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18.0
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83.5
4.0 PLN-RUB
11.0
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0.09
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currency rates
A period of
turbulence
Currency report
The last couple of weekshave reminded traders of thedark days of 2008 and havegot everybody wondering if asecond wave of the crisis isjust around the corner.
The hesitance of the USCongress, along with ratingagency S&P’s decision to cutthe US’s debt rating to AA+,led to fears that world lead-ers are not responsibleenough to handle the presenteconomic situation.
The currency market hasbeen turbulent in recently, tosay the least. The EUR/USDreached a two-week low of$1.41, before rebounding to$1.45. The dollar is underpressure as US economicindicators have not beenoptimistic and growth hasclearly slowed.
Investors escaped to the“safe heaven” currencies,with most opting for the
Swiss franc. The CHF/PLNreached a historic high ofz∏.4.12 at one point inAugust.
The Swiss National Bankreacted to the situation byincreasing the number ofdemand deposits available tocommercial banks. Thismove helped the CHF/PLNdecrease all the way to z∏.3.58before risk aversion led itback up to z∏.3.68.
The EUR/PLN keptclimbing, reaching a yearlyhigh of z∏.4.2290, before eas-ing to z∏.4.17 at the end of theweek finishing August 19.The USD/PLN, after advanc-ing to z∏.2.99, dropped downall the way to z∏.2.89.
The global situation is farfrom being under controland only strong decisions bycentral bankers and govern-ment leaders will calminvestors. ●
Adam Narczewski, X-TradeBrokers Dom Maklerski SA
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Major indices
Top 5 Closing % change (week) 52-week high 52-week lowELSTAROIL 5.18 61.88 6.88 3.10BNPPL 119.00 35.07 157.00 88.10EUROMARK 2.00 33.33 5.78 1.26ADVADIS 0.13 30.00 0.43 0.10PRIMAMODA 5.18 27.59 9.22 3.69
WIG 38,697.56 (August 18 close)
Change for the week: -0.61% 52-week high: 50,371.74
Change year to August 18: -18.29% 52-week low: 37,368.93
Top 5 Closing % change (week) 52-week high 52-week lowCYFRPOLSAT 14.50 11.11 17.35 13.05POLMEXMS 2.07 7.81 4.65 1.85LOTOS 32.27 3.26 49.42 29.67TPSA 16.00 2.70 19.01 15.10CEZ 132.80 2.55 154.10 118.70
Bottom 5 Closing % change (week) 52-week high 52-week lowPOLREST 0.23 -20.69 1.06 0.23UNIMA 3.12 -17.89 5.25 3.12IGROUP 0.35 -14.63 0.78 0.16PEKAO 123.40 -13.1 196.50 123.40CDRED 4.60 -13.04 9.88 2.07
Bottom 5 Closing % change (week) 52-week high 52-week lowPEKAO 123.40 -13.10 196.50 123.40PBG 90.95 -7.90 252.00 90.95KGHM 155.00 -4.26 198.40 102.40BRE 255.10 -4.10 349.00 237.10GTC 12.12 -3.81 24.98 12.12
WIG20 2,248.51 (August 18 close)
Change for the week: -1.96% 52-week high: 2,932.62
Change year to August 18: -16.75% 52-week low: 2,194.07
mWIG40 2,228.69 (August 18 close)
Change for the week: 2.58% 52-week high: 2,987.72
Change year to August 18: -22.62% 52-week low: 2,101.80
sWIG80 9,110.42 (August 18 close)
Change for the week: 2.95% 52-week high: 12,932.00
Change year to August 18: -27.76% 52-week low: 8,670.88
NewConnect 44.66 (August 18 close)
Change for the week: -0.45% 52-week high: 64.23
Change year to August 18: -29.25% 52-week low: 44.49
WIG-Banki 5,376.11 (August 18 close)
Change for the week: -4.10% 52-week high: 7,387.49
Change year to August 18: -19.48% 52-week low: 5,222.29
DJIA10,990.58 (Aug 18 close)
-1.37% (for the week)
CHANGE: -6.76%
(year to August 4)
52-week high: 12,928.50
52-week low: 9,915.73
NASDAQ2,380.43 (Aug 18 close)
-4.50% (for the week)
CHANGE: -11.07%
(year to August 18)
52-week high: 2,887.75
52-week low: 2,099.29
S&P5001,140.65 (Aug 18 close)
-2.73% (for the week)
CHANGE: -6.67%
(year to Aug 18)
52-week high: 1,370.58
52-week low: 1,039.70
FTSE1005,092.20 (Aug 18 close)
-1.37% (for the week)
CHANGE: -13.69%
(year to Aug 18)
52-week high: 6,105.80
52-week low: 4,791.00
DAX5,602.80 (Aug 18 close)
-3.36% (for the week)
CHANGE: -19.65%
(year to Aug 18)
52-week high: 7,600.41
52-week low: 5,487.82
NIKKEI2258,943.76 (Aug 18 close)
-0.43% (for the week)
CHANGE: -13.61%
(year to August 18)
52-week high: 10,891.60
52-week low: 8,227.63
world stock indices
21.0
7
22.0
7
25.0
7
26.0
7
27.0
7
28.0
7
29.0
8
01.0
8
02.0
8
03.0
8
04.0
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05.0
8
08.0
8
09.0
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8
16.0
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18.0
837,000
39,200
41,400
43,600
45,800
48,00021
.07
22.0
7
25.0
7
26.0
7
27.0
7
28.0
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29.0
8
01.0
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02.0
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05.0
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08.0
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10.0
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11.0
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12.0
8
16.0
8
17.0
8
18.0
82,100
2,240
2,380
2,520
2,660
2,800
21.0
7
22.0
7
25.0
7
26.0
7
27.0
7
28.0
7
29.0
8
01.0
8
02.0
8
03.0
8
04.0
8
05.0
8
08.0
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09.0
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10.0
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11.0
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12.0
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16.0
8
17.0
8
18.0
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2,000
2,160
2,320
2,480
2,640
2,800
21.0
7
22.0
7
25.0
7
26.0
7
27.0
7
28.0
7
29.0
8
01.0
8
02.0
8
03.0
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12.0
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16.0
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17.0
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18.0
8
8,600
9,300
10,000
10,700
11,400
12,100
21.0
7
22.0
7
25.0
7
26.0
7
27.0
7
28.0
7
29.0
8
01.0
8
02.0
8
03.0
8
04.0
8
05.0
8
08.0
8
09.0
8
10.0
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11.0
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12.0
8
16.0
8
17.0
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18.0
8
44.0
45.8
47.6
49.4
51.2
53.0
21.0
7
22.0
7
25.0
7
26.0
7
27.0
7
28.0
7
29.0
8
01.0
8
02.0
8
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04.0
8
05.0
8
08.0
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09.0
8
10.0
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11.0
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16.0
8
17.0
8
18.0
8
5,200
5,520
5,840
6,160
6,480
6,800
Other indices
Market
mayhem
Stocks report
The rollercoaster ride startedon August 5, with ratingagency Standard & Poor’sdowngrade of US debt fromits triple-A status to AA+, afirst in the country’s history.Indices tanked after the week-end announcement, with thePolish blue-chip WIG20falling 11 percent in the firstthree days of the week.
It was not until Thurs-day, August 11 that theWIG20 finished higher forthe first time in the month –the main impetus beinglower-than-expected initialjobless claims from the US,as well as strong corporatequarterly earnings fromsome blue-chips, such asCisco. Friday, August 12brought further gains, withthe WIG20 closing 1.65percent higher, though forthe week the index wasdown nearly 4.5 percent.
The following Mondaysaw bargain hunters step inon world markets. Indicesacross the globe closed high-er, with the Polish exchangeclosed that day for a nationalholiday. The main WIGindex and the WIG20 caughtup the next day, closing 2.44percent and 2.40 percenthigher, respectively.
Wednesday August 17was an extremely volatile dayfor the Polish bourse, afterFranco-German talks failedto lead to a conclusive agree-ment concerning the Euro-pean debt crisis.
The following day, mar-kets went into a near free-fall,disappointed with the out-come of the Franco-Germansummit. Markets across theglobe be closed deeply in thered, with the WIG down by5.90 percent, and the WIG20by 5.81 percent. ●
Andrew Nawrocki, Market analyst & trader, gowebtrade.com
AUGUST 22 – SEPTEMBER 4, 2011 TTHHEE LLIISSTT www.wbj.pl 21
Rank
Company nameAddressTel./FaxE-mailWeb page
Revenue fromleasing (z∏. mln)
Total revenue (z∏. mln)
Net profit(z∏. mln)
Net value ofleased assets
(z∏. mln)
Leasingcontracts signed
Leasing:Operational/
FinancialLeased goods Currency Additional
services
Number ofemployees/
Year founded
Ownership:Polish/Foreign
Top localexecutive/
Title
1
Europejski Fundusz Leasingowy SAPl. Orlàt Lwowskich 1, 53-605 Wroc∏aw71 377-7777/71 [email protected]
225.0468.0532.0359.0
315.0610.0650.0470.0
86.0121.0110.0111.0
1,268.22,619.83,762.03,728.0
16,39834,52149,01849,077
✓✓
Cars, trucks, vans,machinery and
equipment; agriculturalequipment; IT
equipment; medicalequipment; real estate
PLN; EUR; CHF Insurance; fuel cards6741991
NoneCredit Agricole - 100%
Andrzej KrzemiƒskiPresident
2
Raiffeisen-Leasing Polska SAul. Prosta 51, 00-838 Warsaw22 326-3600/22 [email protected]
178.4408.7424.9255.5
178.4408.7424.9255.5
20.037.550.845.8
1,032.91,528.43,096.63,015.0
9,13914,18225,60823,486
✓✓
Transport equipment,machinery andequipment; IT
equipment; realestate; production
lines
PLN; EURInsurance; fuel cards;
registration; legalprotection
6401998
Raiffeisen Bank Polska- 50%
Raiffeisen LeasingInternational - 50%
Arkadiusz EtrykPresident
3
Masterlease Polska (Prime Car Management SA, Futura Leasing SA)ul. Polanki 4, 80-308 Gdaƒsk58 340-4400/58 [email protected]
182.7376.9332.4246.7
230.5427.2337.1255.1
WNDWNDWNDWND
202.4371.2590.5889.9
3,2385,9769,4958,323
✓✓
Cars; vans; trucks PLN; EUR
Insurance; tires; fuelcards; claimscoordination;
replacement cars;mechanical service;assistance; vehicle
registration
1131995
Abris Capital Partners -100%None
Jerzy KobyliƒskiPresident
4
VB Leasing Polska SAul. Strzegomska 42B, 53-611 Wroc∏aw71 334-4900/71 [email protected]
WND349.0359.1335.9
WNDWNDWNDWND
WNDWNDWNDWND
WND1,263.01,271.71,590.6
WND11,48211,78713,767
✓✓
Movables PLN; EUR
VB LeasingAssistance; VB
Leasing Adwokat;insurance
3182000
NoneVolksbank - 50%; VR
Leasing - 50%
Marek Bauer;Krzysztof Famulski
Board Members
5
Volkswagen Leasing Polska Sp. z o.o.Rondo ONZ 1, 00-124 Warsaw22 538-7000/22 [email protected]
73.1163.8140.492.8
91.0192.3161.9113.2
12.518.91.215.0
WNDWND860.8710.6
2,8206,82811,87410,096
✓✓
New and usedpassenger cars andtrucks (Volkswagen,
Audi, Skoda and Seat)
PLN
Vehicle registrationand insurance; leasing
payoff insurance;financial loss insurance
WND1997
NoneVolkswagen Financial
Services - 60%;Kulczyk Pon
Investment - 40%
JoannaWujcik-Lasocka;Rados∏aw Sa∏ek;Artur Zalewski
Board Members
6
BNP Paribas Lease Group Sp. z o.o.(1)
pl. Pi∏sudskiego 1, 00-078 Warsaw22 566-9688/22 566-9659contact.leasing.pl@bnpparibas.comwww.leasingsolutions.bnpparibas.pl
WND159.8209.9130.8
WND192.5226.7142.0
WND7.328.216.7
WND521.7
1,453.11,653.9
WND3,0636,0948,607
✓✓
Real estate; transportequipment; industrial
machinery; computersand office equipment;
other movables
PLN; EUR;CHF; USD
Insurance; electronicshipping invoice
images; summarybilling; direct debit
1041998
NoneBNP Paribas Lease
Group - 100%
Rafa∏ PiskorskiGeneral Director
7
Deutsche Leasing Polska SAul. Wybrze˝e Gdyƒskie 6A, 01-531 Warsaw22 504-9000/22 [email protected]
WND127.9113.793.7
WNDWND116.7144.7
WNDWNDWNDWND
WND746.7606.2529.3
WND708701794
✓✓
Machinery andequipment; transport
equipment; real estatePLN; EUR Leased objects import;
insurance60
1997
NoneDeutsche Sparkassen
Leasing - 100%
KrzysztofBrzeziƒski;
Anna KrakowskaBoard Members
8
Kredyt Lease SAul. Kasprzaka 2/8, 01-211 Warsaw22 634-8100/22 [email protected]
15.934.638.923.8
15.934.638.923.8
2.5-10.83.82.2
100.7182.1353.5262.3
8181,4062,1011,789
✓✓
Movables; real estate PLN; EUR Insurance; registration68
1991Kredyt Bank - 99.9%
WNDS∏awomir Reszke
President
9
Athlon Car Lease Polska Sp. z o.o.Al. Jana Paw∏a II 29, 00-867 Warsaw22 653-7885/22 [email protected]
13.03.90.1-
13.03.90.1-
-5.2-2.9-2.1
-
38.622.92.1-
WNDWNDWNDWND
✓WND
Cars and vehicles upto 3.5 tons PLN
Insurance: AC, OC,NW, DAS; tires;
Athlon Assistance;replacement car; fuel
card; Athlonlinereports
172007
WNDAthlon Beheer
International - WND%
Eric van ViletPresident
NR
ING Lease Polska Sp. z o.o.Pl. Trzech Krzy˝y 10/14, 00-499 Warsaw22 820-5300/22 [email protected]
WNDWND60.096.0
WNDWND60.096.0
WNDWND48.030.0
WNDWND
1,562.01,733.0
WNDWNDWNDWND
✓-
WND PLN WND1001996
NoneING Lease Holding -
100%
Mariusz KurzacPresident
NR
NL-Leasing Polska Sp. z o.o.ul. Lubowidzka 33, 80-174 Gdaƒsk58 300-0059/58 [email protected]
WNDWND29.511.1
WNDWND32.217.9
WNDWND-2.92.4
344.0354.068.752.8
WNDWND464377
✓-
Transport equipment PLN; EUR Insurance12
2004
DBK - 48%Nutzfahrzeuge Leasing
- 52%
ArkadiuszTrojakowski
President
NR
Siemens Finance Sp. z o.o.ul. ˚upnicza 11, 03-821 Warsaw22 870-8681/22 [email protected]/leasing
WNDWNDWNDWND
WNDWNDWNDWND
WNDWNDWNDWND
367.0709.1553.1253.8
1,5172,9162,8851,650
✓✓
Medical equipment,machinery and farming
equipment; printingmachines;
metalworking andplastics machinery;
construction vehicles
EUR; USD;CHF; JPY
Insurance60
1999
NoneSiemens Finance &
Leasing - 100%
Christian FoltynWND
1st half of 2010 / 2009 / 2008 / 2007
Financial Services
Leasing CompaniesRanked by revenue from leasing in 2009 www.bookoflists.pl
Notes: NR = Not Ranked, WND = Would Not Disclose. Research for The List was done in November/December2010. Number of employees and ownership structure are as of October 2010 unless stated otherwise. All informa-tion pertains to the companies’ activities in Poland. Companies not responding to our survey are not listed. Footnotes: (1) Consolidated data of BNP Paribas Lease Group Sp. z o.o. and Fortis Lease Group Sp. z o.o.
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, omis-sions and typographical 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 reprinted or reproduced in whole or in part without prior written permission of the publisher. Reprints are available.
AUGUST 22 – SEPTEMBER 4, 2011AARRTTSS && CCUULLTTUURREE22 www.wbj.pl
Bryan Ferry in concertSala KongresowaPl. Defilad 1September 12, 8 pm
Former Roxy Music frontmanBryan Ferry brings his uniquevocal talents to Warsaw inSeptember. Also a model andactor, Mr Ferry has spent thelast 40 years writing hit songssuch as “Love Is the Drug,”“Mother of Pearl,” “More ThanThis,” and “Slave to Love.” Hehas also produced several well-known versions of songs byother artists including “JealousGuy,” “The Price of Love,” “AsTime Goes By,” “I Put a Spellon You” and Bob Dylan’s “AHard Rain’s A-Gonna Fall.” Hislast album, 2010’s “Olimpia”
includes songs written in collab-oration with Scissor Sisters andGroove Armada.
Other artists, includingDavid Gilmour, Jonny Green-wood, Nile Rodgers, MarcusMiller, Mani and Flea tookpart in recording the album.The track “You Can Dance,”which appeared as “U CanDance” on an album releasedby DJ Hell and was remixedby Simian Mobile Disco, hasconquered Europe’s dancemusic charts. ●
Tickets start at z∏.100 and areavailable at Empik, MediaMarkt and Saturn stores, aswell as on websites ticketpro.pland eventim.pl
Concert
An unforgettable voice
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Warsaw Autumn 54th International Festivalof Contemporary MusicFilharmonia Narodowaul. Jasna 5, WarsawSeptember 16-24
The “Warsaw Autumn”(Warszawska Jesieƒ) festival isexceptional for its historicnature and its durability. Thefestival has continued uninter-rupted – with two exceptions –each year since 1956 and in itsearly days served as a placewhere contemporary musi-cians could perform essentiallywithout restriction, despitecommunist rule. It remains theonly festival of contemporarymusic in Poland that is inter-national in both its scale andstatus.
According to organizers,this year’s festival is set to fea-ture music that “does not
focus exclusively on itself butopens to the surroundingworld, commenting on it andattempting to change it.” Itwill also feature composers“who speak out on importantsocial and political issues ofthe modern world,” organiz-ers wrote on the festival’s web-site.
Artists performing at thefestival include soprano PiaFreund and the Plus Ensem-
ble, Neue Vocalsolisten,Zorka Wollny with ArturZagajewski and many more.Music will be accompaniedby installations and videos.
This year’s edition will alsoinclude the premiere of “LittleWarsaw Autumn” – a concert,workshop and installation foryounger listeners. ●
For more information, visitwww.warszawska-jesien.art.pl
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7th WarsawCross Culture FestivalPalace of Cultureand SciencePl. Defilad 1September 25 – October 1
Over 130 groups and individ-ual artists from over 50 coun-tries have presented their artat this festival over the lastseven years.
Inspired by Poland’s presi-dency of the EU, organizersdecided to dedicate thisyear’s edition mostly to Euro-pean music, permeated withnumerous influences fromother cultures and regions ofthe world.
Of course, the festivalwon’t only feature acts fromthe Old Continent. Openingthe festival on September 25will be African group FemiKuti in the Palace of Cultureand Science’s Sala Kongre-sowa (Congress Hall).
“After two years of contin-uous efforts to get theseartists to come to our festival,we have finally succeeded,”said Maria Pomianowska, thefestival’s art director.
The festival will takeattendees on a musical jour-ney through Spain, Portugal,Scandinavia, Greece andPoland, as well as Turkey and
Israel.The performances will be
accompanied by music work-shops with world-class mas-ters, documentary screen-ings, exhibitions and a specialoffer for children – a FamilyDay (October 1) involving achildren’s concert and con-cert by some of the mastersbeing featured at the work-shops. ●
Tickets start at z∏.25 per con-cert, and cost z∏.30-70 for theFemi Kuti concert. A six-daypass costs z∏.100.For more information, visitwww.festival.warszawa.pl.
Festival
A musical journey around Europe
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8th Festival of Jewish Cul-ture – Singer’s WarsawMultiple locationsAugust 27 – September 9festiwalsingera.pl
Home to Europe’s largestJewish population before theSecond World War, Poland isnow gradually rediscovering itsJewish heritage. The Singer’sWarsaw festival, held this yearfrom August 27 to September4, has a lot to offer those who
want to experience more ofthe capital’s Jewish culture.
Organized by the ShalomFoundation, the festival is notas high-profile as the JewishCulture Festival in Kraków.Nevertheless, it is earning areputation as one of Warsaw’smost anticipated annual events.
“I think in the last decadewe have seen a huge revival ofinterest in Jewish culture inPoland,” said Hanna Pa∏uba,one of the festival’s organizers.
From its offices on Pl.Grzybowski – once the heartof Warsaw’s Jewish quarter –the foundation organizes year-round activities aimed at pro-moting Jewish culture.
“Right now, young peoplehave a lot of opportunities tolearn about Jewish culture,and we find people are veryreceptive and interested,” saidMs Pa∏uba.
The Singer’s Warsaw festi-val is a great opportunity to
take in lectures, art exhibi-tions, theatrical performancesand film screenings, as well asattend workshops (subjectsinclude Jewish dance andcooking, and there are alsoworkshops for children), orparticipate in walks to exploreWarsaw’s Jewish landmarks.
Old and newMusic will be center-stage atthe festival, with performancesby Frank London’s KlezmerBrass All-Stars (USA), AnnaMaria Jopek with Kroke(Poland), Sisters of Sheynville(Canada), Joseph Malovany(USA) and Ben Zimet(France), among others.
Three major concerts willbe free of charge, all at Pl.Grzybowski. The first of theseis the festival’s official open-ing, which will take place at 8
pm on Sunday, August 28. Itwill feature Joseph Malovany,accompanied by the Choir ofthe White Stork Synagogue inWroc∏aw. The second freeconcert features a traditionalKlezmer performance at 8 pmon Saturday, September 3,while the final free concertwill be held the very nextnight for the fesival’s close,and will feature over 20artists.
While major concerts willrevolve around Pl. Grzybows-ki, recent renovation work onul. Pró˝na has forced festivalorganizers to look for newlocations in the city. One ofthe areas included in thisyear’s festival is the Pragadistrict (located on the rightbank of the Vistula River)which will host many addi-tional concerts and activities.
“While Praga is not hometo some of the better-knownJewish landmarks in the city,a large Jewish populationonce lived there before theSecond World War, and thereare a lot of buildings andplaces connected to Jewishhistory, culture and its peo-ple,” said Ms Pa∏uba.
Some performances willbe held in clubs on the dis-trict’s trendy ul. 11 Listopa-da, such as Sk∏ad Butelekand Hydrozagadka, givingfestival-goers the addedbonus of visiting one of War-saw’s most vibrant neighbor-hoods. ●
Tickets can be purchased atThe Ester Rachel and IdaKaminska Jewish Theater,(+48) 22 850 56 56, andthrough ebilet.pl
Jewish culture
A celebration of Jewish Warsaw
Warsaw’s ul. Pró˝na during last year’s Singer’s Warsaw festival
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Swedish folk rockers Hoven Droven take the stage September 29
Neue Vocalsolisten
AUGUST 22 – SEPTEMBER 4, 2011 LLAASSTT WWOORRDD www.wbj.pl 23
Life lessons and toys to help you learn them
Tech Eye
Having rejected all semblance of ahealthy lifestyle, Techeye doesn’tspend much time outside these days.Our reasons are purely aesthetic – inother words, we enjoy being rotundand blindingly pale. If it weren’t forthe sun, the fresh air or, heaven for-bid, the chance of some leghoundbeing attracted by our natural pork-chop-tinged musk, we might lingeroccasionally beneath the open skyinstead of scurrying from houseto hatchback and vice-versa.But no, we’ll not risk ourpudgy, hard-won biolumines-cence.
A curious byproduct ofthis lifestyle is that it’smuch harder to mark thepassing of time. We stoppedbuying calendars years ago, you see,because Grandma and GrandpaTecheye used them to keep recordsof their nights of wild, wrinkled pas-sion. Indeed, we can’t look at a cal-endar without imagining “Tuppedher blind! Yaaar!” scribbled acrosshalf the month in Grandpa’s palsiedscrawl.
Anyway, we’re not wholly igno-rant of the season – the supermarketwhich sells our favorite breakfastpizzas always has a special seasonaloffer on its website, whether it’s Hal-
loween, Easteror ArmisticeDay. Judgingby the pens,
notebooks andother junk that
was on sale lasttime we ordered, it’s
probably almostback-to-school time.
The start of a newschool year is always a
curious, emotionally dis-tressing time, so Techeye
got to thinking about thegear today’s
kids need to getby. Near the top of
the list, at least forolder nerds, is Live-scribe’s Echo Smart-pen (www.live-scribe.com).
The Echo is basi-cally a ballpoint penwith a computerinside which recordssound and writing.Want to play backwhatever was beingrecorded while youwere busy writing“Mr Dickensonsmells like man-
radish”? Just tap the pen onthe sentence and listen.
Livescribe’s smartpencomes in four- and eight-GBversions; the former costsabout $116 on Amazon, whilethe latter costs $181. Andboth models can record hun-dreds of hours of audio. If ourGrandfolks were still aroundthe Echo would make a greatgift, but we shudder to thinkwhat they’d use it for.
For more mischievouspupils, the Wrongulator from
gadget hawker Red5(www.red5.co.uk) looks essential. Theage of the single-function calculator isover, but this is no ordinary number-cruncher: multiply two by two and youget seven. Or maybe three. Whateverthe answer, it will be wrong.
Obviously you don’t want yourown kid using this to do homework,but perhaps your clever offspringcould slip the Wrongulator into thehands of a straight-A classmate? Thatmight be worth £4.95, no?
The last gadget this week is VisionResearch’s V1610 super high-speedcamera (www.visionresearch.com).
These camerasaren’t likely to befound in many kids’backpacks thisschool year, notunless their father isSteven Spielberg.But Techeye can seeplenty of reasonswhy every kid shouldhave one.
With its ability tocapture up to onemillion frames persecond, the camerais perfect for gather-ing evidence. Showeverybody that the
nasty girl at the back of the classroomreally does eat her bogeys, or finallyprove that the creepy biology teacheris as much a perv as everyone thinks –these are priceless school-day memo-ries in the making.
And priceless they’d have to be,because the V1610 itself has a veryreal, very daunting price tag: around$100,000 for the basic model.
But, whether it’s in the hands of apasty-faced shut-in, a ribald, calendar-defacing grandpa or a kid headedback to school, we’re sure the V1610could be put to some highly edifyinguses. Like blackmail. ●
Ever had a teacher who stank like man-radish? Let us know: [email protected]
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