A maturing market for demanding investors

Konrad Kiedrzyński: Your firm works with large Spanish investors from sectors such as banking and real estate. What branches have the most potential for Spanish companies?

Krzysztof Socha: Apart from the areas you mentioned, Poland has a huge potential for investments in renewable energy as well as in infrastructure and transport. This includes roads, railway networks and stations, as well as airport terminals. The upcoming Euro 2012 soccer championships make such investments even more urgent.

Poland's real estate market has cooled down. Are your clients still interested in investing in property?

It is true that after two years of a boom the [property] market's development has slowed down. But the potential for further investments remains huge. However, this potential does not lie in large and spectacular undertakings, but in a large number of smaller investments which are also profitable.

Recent reports show Poland's attractiveness for foreign direct investments has slumped. Do your clients see Poland as less attractive?

The Polish economy is seeing a growth in salaries and a stronger currency. The market is growing more mature as well. It is also much less attractive for those investors who want to enter [the market], make some fast money and then leave. Investment in Poland nowadays is a longer-term undertaking, and the market is not an easy one. It offers much greater security and stability instead. This is a market for more demanding investors.

What changes would your clients like to see made to Polish legislation?

There are no particular obstacles in Polish law for foreign investors. Still, many companies would welcome a new, proper law on public-private partnership. So far, no investment has been carried out under the existing law. Instead, public-private initiatives have been taking place independently of that law.

How would you evaluate Garrigues' past year in Poland and what are the plans for future?

We are satisfied. However, the bottom line can always be better. We established an office in February and started our operations in August. Currently our team consists of 16 people and we would like to double this number by the end of next year. We see our office in Warsaw as the center for our CEE operations. Garrigues also plans to establish an office in Romania next year and Bulgaria in the longer-term future. We are also interested in entering Ukraine. These markets offer investors great opportunities and a high rate of return, although [they are] a greater challenge.