At the end of the working week, the most interesting bits of off-record discussion concern a buyout or merger situation with one of the biggest service providers, and not just in this region. We won’t get more specific than that for now. Added to that, there’s considerable noise about a pair of Polish malls currently under offer (you know where) — quite possibly by the same buyer, in fact (you may not know that). There are other portfolios about that are being dealt with, but they’re not thought to be quite as advanced. As usual, call or write us with hints and tips.
On the euro crisis front, the biggest news of the week would probably have to be Slovakia’s better-late-than-never approval of the extension of the European bailout package. Along with that needless drama, there was the downgrading by UBS not just of Spain, but of UBS.
Several other banks were put on notice, but was UBS singled out because of its rogue-trader scandal? It’s a tough one, for a bank that had worked hard to restore its battered image.
On the other hand, they only caught the guy because he made some incredible losses. Where was the control when he was turning in incredible profits?
We’ll be in Budapest next week for what should be a fascinating round table discussion with some of the shrewdest observers of the market. Is Hungary’s window of opportunity really open? Is now the time? Which sectors? We’re covered as far agents, analysts and developers go, but we still have room for an investor or two, if anyone happens to be in town. Feel free to get in touch.
Posted in Events, investment
Adgar prepares office plot
Adgar Group acquired an 8,000 sqm plot for its new investment at Aleja Prymasa Tysiąclecia in the Wola district of Warsaw. The precise plans are at the moment unknown, but Eyal Litwin, vice-chairman of Adgar, revealed that the company intends to deliver further office projects. Until now, Adgar’s biggest project projects (Adgar Plaza, Adgar Business Centre, Adgar Business Centre II) have been built in Mokotów.
Neocity starts with the new scheme
Neovillage estate Neocty’s second investment in Warsaw. The five apartment buildings will offer 148 residential units in the Ursus district. The company is currently waiting to receive a construction permit for the project.
13 new stores in Silesia City Centre
TriGranit’s scheme Silesia City Center has announced a baker’s dozen of new tenants who will inhabit the mall when it opens this fall. The 13 brands are Lacoste, La Promessa, Harpers, Shoes, Rolex, Clarks, Guess Footwear, Stradivarius, Massimo Dutti, Furla, Home&You, Claire’s, Lindex and the travel company TUI.
Two weeks till A2 restart
Last Poland’s General Directorate of Roads and Highways (GDDKiA) has canceled its contract with the Chinese contractor Covec for the construction of two portions of the A2 motorway. It’s now demanding the company pay fines of PLN 741m for breaching the PLN 1.3m contract covering 50km of the highway linking Stryków with Konotopa. While it’s sacked the Chinese, it will still have to wait 14 days in order to select a replacement, according to Puls Biznesu daily reports. It’s not known yet whether the contractor will be selected by tender or through negotiations.
Bankrupt Techmex’s asset on sale
Danuta Wieczorek, the receiver in charge of the Techmex bankrupty, expects the list of claims against the company to be finalized within a few days, reports Parkiet.com. One of the company’s more valuable asset is an office building in Bielsk. Most of the offices are currently leased, and the rental income is covering costs. Sale procedures are expected to begin soon.
Gant got the loan for Odra Tower
Gant Development has secured financing for its new investment. Bank Millennium has granted a PLN 57.5m loan for Odra Tower investment, an 18-storey mixed-use residential and office building. The project is expected to be completed by August 2012, with 49 of the 243 flats having already been sold.
New deadline for National Stadium
The construction consortium building the National Stadium has reached a settlement with its investor, Poland’s National Sports Centre, under which the new completion deadline is November 29. However, some heads have rolled, as Hydrobudowa Polska will replace Austrian Alpi-Bau as general contractor for the PLN 1.252m investment.
Ghelamco prepares for Sienna Towers
Three office buildings and a 20,000 sqm shopping center is to be developed on Sienna Street in Warsaw by Ghelamco. The office component will add 10,000 sqm of office space to the CBD.
SK – The Slovak economy grew at a rate of 3.5% in Q1 2011 thanks to foreign demand for the cars it makes and other exports. Local consumer demand, however, is still quiet.
CZ – The Czech economy was slightly off the pace, but still managed to grow by 2.8% over Q1. Rising inflation could convince central bankers to raise interest rates from the 0.75% they’ve been parked at since May 2010
PL – The Wall Street Journal blog says Japanese companies are hoping to profit from the strong yen by investing in countries like Poland.
RO – Romania-Insider provides some of the details of Colloseum builder Panico Panayi’s press conference yesterday, including assurances that an October opening of the first phase still appears to be on track
HU- Even the Hungarian economy got into the act, surprising the analysts with a showing of 2.5% growth in Q1. The country’s running a trade surplus of €479m.
Global City gets planning in Floreasca
The investment fund Global Finance is to begin a 73,000 sqm office and residential project located in Floreasca. Bucharest’s city hall has approved
an urban planning permit for the scheme, which will include a trio of residential high rises ranging from 15 to 20 storeys, along with a separate office building. The Greek-based developer is also considering the resumption of work on its residential project Global City in the Pipera district of Bucharest sometime next year.
City Mall auction fails again at 3rd attempt
A third attempt to auction off the troubled shopping center City Mall in Bucharest has failed
, despite the lowest bid offering being lowered to €26.5m. The initial price was €33m, but this failed to attract any bidders. The mall’s primary creditor UniCredit bank is reported by ZF to have an outstanding loans of €30m.
Erbud’s contract with Dom Development
The Polish construction company Erbud, has signed a contract with Dom Development for the construction of the second phase of its residential scheme called Wilno. The PLN 19.6m project is being built on Klukowska Street in Warsaw. Work is expected to take 16 months on the three buildings, which will offer 117 flats and underground parking. Construction is expected to complete by September 2011.
Polfa Tarchomin sells properties
As part of the company’s privatization, Polfa Tarchomin has started offloading properties. The most immediate consequence is the announcement of a tender for 75 ha of land in the Białołęka district of Warsaw, and a health resort in Rybitwy in the Mazury lake district with 50 bungalows. The tender should be complete by the end of May. Media reports suggest that JW Construction is one of the companies in the running for the land.
-Unemployment in Slovakia fell 0.25% in March, but remains problematically high at 13.13%, and close to its 6 year maximum. State sector job cuts have hit employment numbers this year, but it’s hoped that investments in anti-flood measures and castle renovations will help at least in part.
-Anglo Irish bank took an symbolic step into nothingness when its signage was removed from company headquarters in Dublin. AI signs had already been taken down in other Irish cities ahead of a rebranding for the company, whose profligacy during the boom is being paid for by Irish tax payers.
Posted in news
Tagged Anglo Irish, news
-Jones Lang LaSalle shares hit a 52-week high
-ECM Real Estate going rather the other direction
-CB Richard Ellis says “first-quarter deal volumes in the UK, Germany, and France rose by 18-39 percent. Those in Italy and Central and Eastern Europe rose by 75 percent and 197 percent respectively…”
Posted in news
Tagged CBRE, ECM, JLL, news
-Fashion House has wasted no time getting construction going in Moscow after picking up the construction permit for its latest outlet mall. The €97m, 28,641 sqm scheme is being financed by the Liebrecht & Wood Investment Fund. So…no bank? In case you’re wondering, 65% of the 16,000 sqm first phase is pre-let
-Balazs Czifra has been appointed DTZ’s new country head for Hungary. Balazs’s most recent position was as commercial director for Continental Europe at Segro, but having spent nine years before that at DTZ, he’s no stranger to the company.
Posted in Uncategorized
Tagged DTZ, news
-Czech Central Bank chief sees room for lower rates
-Re-opening of Fly Balaton airport in Hungary crucial for local tourism
-Murray Ó Laoire Architects reported to have folded, including Bratislava office
-Samsung is the biggest Slovak exporter for 2009, beating out auto manufacturers Volkswagen and PSA Slovakia (link in Slovak)
Posted in Uncategorized
-US pharmaceutical company Amri has a new R&D center in Budapest
-Poland’s Central Bank will cut its key interest rate 25 bps to 3.5 percent, a 250 bps drop since November 2008. GDP forecasts for 2009 remain at or around 0 percent
-Budapest will renovate the Margaret Bridge after all, despite the HUF 22bn price tag being at least HUF 7bn more expensive than previously budgeted
-In July, Kia Motors will return to its standard 2 x 8 hour shift schedule at its plant in Žilina, responding to what it calls higher demand in some European countries
Posted in economy
Tagged briefs, news