Deputy PM blocks Tischman-Speyer acquisition of prime Krakow real estate

Deputy Prime Minister Marek Pol has blocked the handover of Polish State Railways (PKP)-owned property in central Krakow to American developer Tischman-Speyer. The property deal, related to the development of the "Nowe Miasto" project, supposedly the largest commercial development ever undertaken in Poland, was to be signed no later than December 14, 2001. According to Rzeczpospolita, Pol blocked the transaction following an article published on the subject by the "NIE" tabloid newspaper. "The media wrongly informed that we wanted to buy the allotment," explained Chris Humnicki, a project director at Tischman. "We applied for a right of perpetual usufruct for 99 years, 10 of which have already passed ... For that we were to pay zl. 29 million." The 11 hectare allotment is situated in close proximity to Krakow's central railway station. Tischman-Speyer intends to erect a commercial center featuring stores, services, hotels, offices and entertainment centers. The first phase of the project is estimated at $350 million. (Rzeczpospolita, p. B2) M.T.