Blue Point loses Puls Biznesu
Moot point: Pezetel Developments Blue Point building has yet to sign any deals.
Business daily Puls Biznesu, published by Bonnier Business Polska, has withdrawn from its lease deal with Warsaw's Blue Point office building and instead plans to move to Centrum Milenium, a development on the Praga side of the Wisla River.
Although Bonnier signed two letters of intent during the past four months for space in the Blue Point building, which is due for completion in September, the publishing house decided to rent 2,391 square meters at Platan Group's Centrum Milenium office building last month.
The 15,300 square-meter Centrum Milenium, completed last year, has so far failed to attract any tenants. To combat the lack of trade, last month Platan issued a small-office offer (see "Property Watch," WBJ June 4-10) for companies looking for office space up to 111 square meters. But with the signing of Bonnier, the development could now attract bigger clients interested in taking up more space.
"(The lease contract with Bonnier) could convince more people to come to this building," said Anna Stawny, Platan Group's PR and marketing director. She said that by September all finishing works should be completed and Bonnier will be able to start relocating its headquarters.
Bonnier President Waldemar Tevnell said that despite its location in Praga still considered one of the least desirable districts for office developments Milenium is a good investment. "The floor plan is functional for editorial purposes, financial conditions are fine and the tenant service professional," he said. "These were the elements that convinced us to choose Centrum Milenium."
Bonnier's decision to move to Milenium has taken Blue Point's developers, Pezetel Development, by surprise. "The talks with Bonnier were at an advanced stage," said Pezetel President Andrzej Jesionek. "I think it's unfair to withdraw from the deal that late."
Blue Point, also built on the east bank of the Wisla River, has yet to attract any interest from tenants. Jesionek said he'd like to see 85% of the property leased by 2002. "We're talking with a couple of potential tenants who would take 45% of the space," Jesionek said.
According to unofficial sources, France's Carrefour chain store operator is interested in taking around 5,000-6,000 square meters in Blue Point. Catering company Bon Appetit has been chosen to operate the cafeteria. Jesionek said he intends to focus on big tenants. "We start negotiations from 1,000-1,500 square meters," he said.
Blue Point has 16,350 square meters of office space and parking for 296 cars. It's a $23.5 million investment developed on a 1,600 square-meter plot by a subsidiary of Pezetel, which trades aircraft and machinery. Rents in the building are $17-$18 per square meter, plus a $4 service charge. U.K.-based Knight Frank Nieruchomosci is the leading agent for the building.
Centrum Milenium offers a total of 15,300 square meters of commercial space, including 10,700 of office and 4,600 square meters of retail. Only 17% of the space is leased. Among the tenants are Bank Handlowy, Pizza Express San Marzano, Avant and Molex Premise Networks. Asking rent for larger clients is about $17-$18 per square meter. The building is marketed by Anglo-American Jones Lang LaSalle and U.K.'s King Sturge property consultancies.
Property sector meets at Szczyrk
The Fifth Polish Real Estate Market Conference will open at the Szczyrk ski resort this week. The conference, organized by Promocja Nieruchomosci, will gather together Polish and foreign representatives of real estate agencies, construction companies, financial institutions and local authorities. The organizer will present the results of research, conducted by SMG/KRC concerning the demand and preferences of residential market customers in Krakow, Poznan, Warsaw, Wroclaw and the Tri-Cities. Property analysts will also present market analyses on the warehouse, office, retail, residential and hotel sectors.
Announcements
French hotel chain Envergure has announced plans to invest $750 million in 18 economy-class hotels by 2005. So far Envergure has invested $100 million in Poland, opening hotels in Katowice and Krakow. The next outlet will open in Szczecin in July. The French chain will focus on two- and three-star hotels in major cities, including Wroclaw, Warsaw, Gdansk, Poznan, Lodz and Czestochowa.
Italian logistics company Rondine Ruffoni has leased 800 square meters at Millennium Logistic Park in Pruszkow, 18 kilometers from downtown Warsaw. The 140,000 square-meter planned development, by Bel Properties, currently offers 38,000 square meters of existing built-to-suit warehouses as well as light industry and office units. Healey & Baker acted on behalf of the developer. Bel Properties would not disclose the investment amount.
