No. 040 / 22nd December 2014 / www.poland-today.pl / magazine, conferences, portal, newsletter

Newsletter Editor: Adam Zdrodowski

adam.zdrodowski@poland-today.pl

tel. +48 504 182 308

INVESTMENT MAR-KET Union Investment has acquired a newly opened hotel in Warsaw and will buy a new office scheme in Wrocław page 2 W. P. Carey has acquired a Polaris Industries pro-duction facility in Opole for €23.8 million page 3

LOGISTICS P3 Logistic Parks will de-velop a new 46,000-sqm BTS scheme in the War-saw area for ID Logistics page 3

RESIDENTIAL Vastint Poland hopes to be able to launch its planned Portowo project in Poznań next year page 4

INTERVIEW Poland Today talks to Marek Kubik, director of the Investors and Business Service Department at Szczecin City Hall page 4

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

COMING & GOING Maciej Mędrek, DTZ page 5

FACTS &FIGURES Largest completions, largest lease deals and rents in the commercial property market in 2013-2014 page 6

The Plac Unii complex was opened for business last year Photo: CBRE

Plac UniiPlac UniiPlac UniiPlac Unii complex complex complex complex in Warsawin Warsawin Warsawin Warsaw sold to sold to sold to sold to Invesco Real Estate Invesco Real Estate Invesco Real Estate Invesco Real Estate for for for for €€€€226 million226 million226 million226 million Developers Liebrecht & wooD and BBI Development have sold their Plac Unii office and retail project in Warsaw to Invesco Real Estate for €226 million. page 2

weekly newsletter # 040 / 22nd December 2014 / page 2

INVESTMENT MARKET

Plac Unii in Warsaw Plac Unii in Warsaw Plac Unii in Warsaw Plac Unii in Warsaw sold to Invesco Real sold to Invesco Real sold to Invesco Real sold to Invesco Real Estate for Estate for Estate for Estate for €226 million€226 million€226 million€226 million

The complex includes a three-level shopping centre Image: CBRE

Developers Liebrecht & wooD and BBI Develop-ment have finalized the sale of their Plac Unii office and retail project in Warsaw to the global real es-tate investment manager Invesco Real Estate for €226 million. “The transaction will bring Liebrecht & wooD and BBI Development significant funds to facilitate future developments, including another joint-venture scheme – the commercial part of Cen-trum Praskie Koneser in Warsaw,” the companies said in a statement. The sellers were advised in the transaction by CBRE and Norton Rose Fulbright, while the buying party was advised by Cushman & Wakefield, Hogan Lovells, Arcadis EC Harris and Deloitte. According to the sales deal, which is one of the largest invest-ment transactions signed in the Warsaw property

market this year, the specialized property manage-ment company WeCARE that is part of the Liebrecht & wooD group will continue to manage the Plac Unii complex. The Plac Unii investment comprises three buildings which offer a total of 56,800 sqm of leasable space, including 41,300 sqm of office space and 15,500 sqm of retail areas in the three-level Plac Unii City Shopping mall. Opened for business last year, the development was designed by the renowned APA Kuryłowicz & Associates architectural studio and boasts of BREEAM certification of energy efficiency and environmental performance. The sale of the Plac Unii project follows the mar-keting of two other prime office assets located in downtown Warsaw – Rondo 1 and Metropolitan – which were offloaded earlier this year. The former building was bought by Deutsche Asset & Wealth Management from BlackRock for almost €300 mil-lion, while the latter was acquired by the sale buyer from Aberdeen Asset Management Deutschland for almost €190 million.

INVESTMENT MARKET

Union Investment Union Investment Union Investment Union Investment buying buying buying buying WarsawWarsawWarsawWarsaw hotel, hotel, hotel, hotel, Wrocław officesWrocław officesWrocław officesWrocław offices

Hamburg-based real estate investment manager Union Investment has recently acquired the Hamp-ton by Hilton Warsaw City Centre hotel in the Polish capital from Austrian developer S+B Gruppe. The value of the transaction, which has been made for the DEFO-Immobilienfonds 1 institutional fund

and marks the first purchase by Union Investment of hotel property in Warsaw, was not revealed. The Hampton by Hilton Warsaw City Centre was completed earlier this year. The hotel comprises 300 rooms and was the first hospitality facility in Poland to secure LEED Gold certification of energy efficiency and environmental performance. “With a 25-year lease, the property meets our investors’ ex-pectations of a sustainable investment with a high level of income stability,” said Christoph Schu-macher, member of the management team at Union Investment Institutional Property.

The hotel was opened for business earlier this year Image: Union Investment Meanwhile, developer Skanska Property Poland has announced that Union Investment is going to buy its Dominikański office project in downtown Wrocław which is currently under construction. The scheme will comprise more than 40,000 sqm of leasable space which has already been commercial-ized in over 50%. The development is scheduled for completion in the second half of next year. Union Investment now holds hotel, office and retail properties in Poland which are valued at a total of approximately €900 million, said Fabian Hellbusch, head of real estate marketing, communication, at

weekly newsletter # 040 / 22nd December 2014 / page 3

Union Investment Real Estate. The biggest invest-ment of the company in the country so far has been the acquisition, in 2012, of the Manufaktura shop-ping centre in Łódź from Fonciere Euris, Rallye Group and Apsys for €390 million. Apart from Warsaw and Łódź, Union Investment is now also present in Katowice and Kraków. In the latter city, the company holds a Radisson Blu hotel which was acquired in 2003 for the UniImmo: Eu-ropa fund. “We think that these and other second-ary cities in Poland offer interesting investment op-portunities and hope to expand our high-quality portfolio in the office, hotel and retail sector,” Hellbusch said. S+B Gruppe is arguably best known in Poland for its Zebra Tower office development in downtown Warsaw that was completed in 2010 and sold to Un-ion Investment in the following year. The company is currently developing a new office project in the Central Business District of the Polish capital which is called króLEWska and will deliver a total of 6,000 sqm of leasable office and retail space at the turn of 2015 and 2016. S+B Gruppe has recently also acquired the Univer-sal building in Warsaw which is located next to the Rondo Dmowskiego roundabout and the Centrum subway stop in the very heart of the city. The com-pany is expected to demolish the outdated structure and replace it with a modern building in the near future. S+B Gruppe should reveal its plans regard-ing the redevelopment of the Universal site in the upcoming weeks. Part of the Skanska Group, Skanska Property Po-land has been active since 1997 and is currently pre-sent in six markets across Poland: Warsaw, Wrocław, Poznań, Łódź, Kraków and Katowice. The company has just completed the first phase of

its first office project in Katowice – Silesia Business Park – which has delivered 11,500 sqm of space. Ongoing office schemes of Skanska Property Poland include the Atrium 2 development in the Wola dis-trict of Warsaw.

Dominikański will deliver over 40,000 sqm of GLA Image: Skanska Property Poland

INVESTMENT MARKET

W. P. Carey acquiresW. P. Carey acquiresW. P. Carey acquiresW. P. Carey acquires €23.8€23.8€23.8€23.8----million Polamillion Polamillion Polamillion Polaris ris ris ris facility in Opolefacility in Opolefacility in Opolefacility in Opole

Global net-lease real estate investment trust W. P. Carey has acquired a 33,000-sqm, Polaris Indus-tries-occupied light-industrial and distribution fa-cility in Opole in south-western Poland for €23.8 million. The facility was delivered by developer Panattoni Europe earlier this year. “The facility is critical to Polaris’s European operations and will support a well-established and growing business line on a long-term net lease,” said Jeffrey Lefleur, managing director of W. P. Carey. New York Stock Exchange-listed W. P. Carey spe-cializes in corporate sale-leaseback financing,

build-to-suit construction financing and the acqui-sition of single-tenant net-lease properties. In July last year, the company announced the acquisition of an over 83,300-sqm H&M distribution centre in Poznań from a fund managed by Invesco Real Es-tate for approximately €64 million. At the beginning of April this year, W. P. Carey an-nounced the acquisition of the Lipowy Office Park complex in Warsaw (which serves as the headquar-ters of the second largest bank in Poland, Bank Pekao) from CA Immo for approximately €115 mil-lion. Most recently, in early September, W. P. Carey completed a sale-leaseback transaction with Nokia Solutions and Networks, acquiring the Kraków of-fice and R&D facility of the company for €9.7 mil-lion.

LOGISTICS

P3 to develop new P3 to develop new P3 to develop new P3 to develop new 46,00046,00046,00046,000----sqm BTS sqm BTS sqm BTS sqm BTS project in Warsaw areaproject in Warsaw areaproject in Warsaw areaproject in Warsaw area

Logistics space owner, developer and manager P3 Logistic Parks is going to develop a 46,230-sqm built-to-suit warehouse project in the Warsaw area for logistic company ID Logistics. Construction on the scheme, which will be located within the P3 Mszczonów logistics park, has already launched and is scheduled to be completed at the beginning of the third quarter of next year. P3 Mszczonów is one of the four P3 logistics parks in Poland. The location still has the potential for the development of more than 160,000 sqm of ware-house space, said Andrzej Wroński, country head

weekly newsletter # 040 / 22nd December 2014 / page 4

for Poland at P3 Logistic Parks. The company is also present at Gądki in the Poznań area, as well as at Błonie near Warsaw and in Piotrków Trybunalski in central Poland, with the latter two parks having recently been acquired by from CA Immo. Due to the purchase, the combined amount of leas-able warehouse space owned by P3 Logistic Parks in Poland increased from 200,000 sqm to 450,000 sqm. The company also has almost one million sqm of building land in the country. Poland has a perfect location for the development of the logistics market and P3 Logistic Parks sees opportunities to further expand its activities in the country, mainly in its southern regions, Peter Bečár, managing director CEE at the company, told Poland Today.

RESIDENTIAL

Vastint Poland hopes Vastint Poland hopes Vastint Poland hopes Vastint Poland hopes to launch huge Poznań to launch huge Poznań to launch huge Poznań to launch huge Poznań scheme next yearscheme next yearscheme next yearscheme next year

Developer Vastint Poland hopes to be able to launch construction on its planned Portowo residential project in Poznań next year. The company is now in the process of securing the necessary administrative permits for the huge scheme. There is a chance that construction will launch in H2 2015. “We have ap-plied for the building permit and are waiting for the decision,” said Ewa Łydkowska, marketing manager at Vastint Poland. The company has not revealed the value of the development. The Portowo investment will be located on the banks of the Warta River, close to the downtown of Poznań, and will involve the revitalization of almost

16 hectares of post-industrial land. The project is going to be developed in five-six phases and is ex-pected to deliver a total of more than 1,500 apart-ments. The first phase of the scheme will comprise approximately 380 housing units.

The project will comprise over 1,500 apartments Image: Vastint Poland The assets of the location and the large scale of the planned investment allow Vastint Poland to be aim-ing for the development of a new, modern residen-tial district of Poznań, Łydkowska said. The archi-tectural concept of the development has been pre-pared by the Swedish Ahlqvist & Almqvist Architekter AB, while the final design has been fur-nished by the Poznań-based ELD Poland. The pro-ject will include regular apartments, upper-standard apartments and villas. Formerly known as SwedeCenter, Vastint is part of Inter IKEA Property Division and has been active in Poland since 1992. The company is now developing three Business Garden-branded office projects in the country – in Warsaw, Poznań and Wrocław. Vastint Poland is currently looking for plots of land for new office and hotel schemes in Warsaw, as well as for sites for new, hotel and residential develop-ments in the other large cities across the country.

INTERVIEW

Szczecin attracting Szczecin attracting Szczecin attracting Szczecin attracting BPO tenants, needing BPO tenants, needing BPO tenants, needing BPO tenants, needing more office spacemore office spacemore office spacemore office space

Poland Today talks to Marek Kubik, director of the Investors and Business Service Department (Wydział Obsługi Inwestorów i Biznesu) at Szcze-cin City Hall, about urban planning in Szczecin and the locations for new residential and commercial real estate projects in the city. Poland Today: Poland Today: Poland Today: Poland Today: Which Which Which Which parts of Szczparts of Szczparts of Szczparts of Szczeeeecincincincin are noware noware noware now changing the fastest when it comes to the devechanging the fastest when it comes to the devechanging the fastest when it comes to the devechanging the fastest when it comes to the devel-l-l-l-opment of newopment of newopment of newopment of new real ereal ereal ereal esssstate prtate prtate prtate proooojects?jects?jects?jects? Marek KubikMarek KubikMarek KubikMarek Kubik: : : : So far, the northern and western neighbourhoods of Szczecin have been changing the fastest. The residential projects in those neigh-bourhoods are accompanies by retail projects but the latter are also springing up in the downtown. New office schemes are located in the Śródmieście district. There are more and more of them in Szcze-cin but there is still the need for more office space, especially since we are attracting new BPO and ICT entities to the city. How many real estatHow many real estatHow many real estatHow many real estate projects are cue projects are cue projects are cue projects are currrrrently brently brently brently be-e-e-e-ing developed in Szczecin?ing developed in Szczecin?ing developed in Szczecin?ing developed in Szczecin? Currently, approximately 30 residential projects, six office projects, three retail projects and five in-dustrial projects are under construction. What peWhat peWhat peWhat perrrrcentcentcentcentage of the area of Szczage of the area of Szczage of the area of Szczage of the area of Szczeeeecincincincin is cois cois cois cov-v-v-v-eeeered by zoning plans? Is Szczred by zoning plans? Is Szczred by zoning plans? Is Szczred by zoning plans? Is Szczeeeecincincincin City Hall cuCity Hall cuCity Hall cuCity Hall cur-r-r-r-

weekly newsletter # 040 / 22nd December 2014 / page 5

rently working on any zoning plans which will rently working on any zoning plans which will rently working on any zoning plans which will rently working on any zoning plans which will be crbe crbe crbe cruuuucial for the develcial for the develcial for the develcial for the developmenopmenopmenopment of the cityt of the cityt of the cityt of the city???? Almost 50% of the total area of Szczecin is covered by zoning plans. Of crucial significance will be the so-called Old Town zoning plan which will cover areas located on the Oder River. The plan will cover areas with historical developments, as well vacant sites for future projects, including those which will enable the development of an Oder River water-front.

Poland Today talks to: Marek Kubik, director, Investors and Business Service Department, Szczecin City Hall Which infrastructural projects will be the most Which infrastructural projects will be the most Which infrastructural projects will be the most Which infrastructural projects will be the most important for the important for the important for the important for the development of Szczecindevelopment of Szczecindevelopment of Szczecindevelopment of Szczecin in the in the in the in the upcoming yearsupcoming yearsupcoming yearsupcoming years???? The construction of the new Kłodny Bridge (Most Kłodny) over the Oder River and new modern

transport infrastructure (including a new tram line) on the Łasztownia river island is undoubtedly one of such projects. The project will make that part of Szczecin more accessible. Szczecin City Hall has plots of land there and plans to put them up for sale once the project has been completed. The project is currently at the design stage. Besides, new stretches of the downtown ring road and Trasa Północna, as well as the modernization of Trasa Poznańska will be important for the development of new residen-tial schemes in Szczecin. Is SzczecinIs SzczecinIs SzczecinIs Szczecin City Hall planning to sell any plots City Hall planning to sell any plots City Hall planning to sell any plots City Hall planning to sell any plots for real estate projects in the near ffor real estate projects in the near ffor real estate projects in the near ffor real estate projects in the near fuuuuture?ture?ture?ture? More than 50 hectares of land located in the Szcze-cin subzone of the EURO-Park Mielec Special Eco-nomic Zone are for sale. The Trzebusz site can house service, production and warehouse space. The Dunikowo site can house production and warehouse space. Also plots on Łasztownia and on ul. Policka that can house retail investments are for sale.

LATEST LEASE DEALS IN BRIEF MMMMeeeedia Markt dia Markt dia Markt dia Markt has leased approximately 1,800 sqm of retail space at the Galeria Sudecka shopping cen-tre and retail park project which Warsaw Stock Ex-change-listed developer Echo Investment is now developing in Jelenia Góra in Lower Silesia. The Galeria Sudecka scheme will comprise a total of 50,000 sqm of retail space and house around 100 stores and points of service, as well as a multi-screen cinema. The development is currently com-mercialized in 95%. igus igus igus igus will take up a total of almost 1,800 sqm of space, including 1,000 sqm of warehouse space and

almost 800 sqm of office areas, at Ideal Idea Park III in Warsaw. JLL brokered the lease transaction. Located in the southern Włochy district of the Polish capital, Ideal Idea Park III is a small business unit project targeted at smaller tenants. igus will move into the property in April next year.

COMING & GOING

Maciej MędrekMaciej MędrekMaciej MędrekMaciej Mędrek

Maciej Mędrek has recently been appointed as an associate director of the retail agency of DTZ in Po-land. His responsibilities include the commerciali-zation of retail property across the country. Mędrek previously worked at Parkridge Retail Develop-ment, P.A. Nova and Savills. He has been involved in the commercialization and re-commercialization of a number of major retail projects in Poland, in-cluding Blue City in Warsaw and Sukcesja in Łódź.

weekly newsletter # 040/ 22nd December 2014 / page 6

FACTS & FIGURES

LaLaLaLargest industrialrgest industrialrgest industrialrgest industrial projects delivered in 2013projects delivered in 2013projects delivered in 2013projects delivered in 2013

Location Project Developer Area

(sqm)

Wrocław Panattoni BTS Lear Panattoni 32,300

Silesia SEGRO Business Park Gli-

wice Building B SEGRO 31,700

Warsaw Tulipan Park Warszawa

Bulding B SEGRO 24,000

Silesia SEGRO Industrial Park

Tychy B SEGRO 18,300

Wrocław Prologs Park Wrocław V Prologis 18,282

Source: Colliers International

Largest office projects delivered in 2013Largest office projects delivered in 2013Largest office projects delivered in 2013Largest office projects delivered in 2013

Location Project Developer Area

(sqm)

Warsaw Konstruktorska

Business Center HB Reavis 48,300

Warsaw Miasteczko Orange Bouygues Immobilier 43,700

Warsaw Plac Unii BBI Development

/Liebrecht & wooD 41,300

Warsaw Marynarska 12 Ghelamco 40,000

Wrocław Sky Tower LC Corp 28,100

Source: Colliers International

LaLaLaLargest retailrgest retailrgest retailrgest retail projects delivered in 2013projects delivered in 2013projects delivered in 2013projects delivered in 2013

Location Project Developer Area

(sqm)

Gliwice Europa Centralna Helical Poland 67,000

Kraków Galeria Bronowice Immochan 60,000

Poznań Poznań City Center TriGranit 58,000

Gdynia

Centrum Riviera

(Wzgórze

– extension)

Mayland Real Estate 70,500

Katowice Galeria Katowice

Meyer Bergman

European Retail

Partners/ Neinver

42,000

Source: Colliers International

Selected Selected Selected Selected large investment transactions large investment transactions large investment transactions large investment transactions in 2013in 2013in 2013in 2013

Sector

Project

Value

(EUR mil-

lion)

Seller

Buyer

Retail Silesia City

Center

412 Immofinanz Allianz, ECE

Retail Galeria

Kazimierz 180

Globe Trade

Center,

Aventus

Invesco RE

Retail Galeria Domini-

kańska 151.7 ECE

Atrium

European Real

Estate

Office New City

127 ECI

Hines Global

REIT

Office Mokotów Nova

121 Ghelamco

Tristan Capital

Partners

Office Senator

120 Ghelamco

Union

Investment

In-

dustrial

H&M ware-

house

64 Invesco RE W.P. Carey

Indus-

trial Żerań Park II 43.2

Area Property

Parners,

Apollo Rida

Poland

SEGRO

Source: Colliers International

LLLLargest argest argest argest office lease dealsoffice lease dealsoffice lease dealsoffice lease deals in 2013in 2013in 2013in 2013

Location Tenant Area(sqm) Project

Warsaw Polkomtel 22,680 Konstruktorska 4

Warsaw Getin Holding 18,850 Wola Center

Warsaw Urząd Rejestracji Leków 13,000 Adgar Park West

Warsaw Bank Zachodni

WBK 11,800 Atrium 1

Wrocław Getin Holding 11,700 Sky Tower

Source: Colliers International

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

20

30

40

50

60

70

80

90

100

Other citiesŁódź

WrocławTri-city

SzczecinPoznańKraków

KatowiceWarsaw

Source: Cushman & Wakefield

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

10 15 20 25

ŁódźKatowice

Tri-cityKrakówPoznań

WrocławWarsaw - non-central

Warsaw - central locations

Source: Cushman & Wakefield

Largest industrial lease deals in 2013Largest industrial lease deals in 2013Largest industrial lease deals in 2013Largest industrial lease deals in 2013

Location Tenant Area(sqm) Project

Wrocław Amazon 123,000 Goodman Wrocław South

Logistic Center

Poznań Amazon 123,000 Panattoni Poznań

Wrocław Amazon 123,000 Panattoni Wrocław

Poznań supermarket

chain 82,385 -

Central Po-

land Castorama 49,961 Panattoni Park Stryków

Source: Colliers International