Hotels and shipyards - changes abound
Executive Suites to challenge Regus' dominance
Ireland-based Executive Suites looks set to challenge the well-established Regus' dominance of the market for subleasing office space in Warsaw.
Executive Suites opened its first Warsaw branch office in the Roma Center on ulica Nowogrodzka in early December. The Irish firm took 1,500 square meters in the center, aiming to sublease small office spaces from 27 to 200 square meters to companies on both a temporary and permanent basis. The company refused to disclose its prices per square meter.
Executive Suites plans to focus on renting smaller offices to companies, an area traditionally dominated by Regus. "We believe there is enough room for us," said company boss Majka Dembowska.
She said the company was encouraged by the fact that potential tenants began inquiring about Executive Suites' offer even before the kick-off of the company's marketing campaign.
Dembowska said that one advantage her company has is its ability to offer clients potentially less expensive space than the prime locations Regus currently leases. Regus has three main locations in Warsaw, all in exclusive buildings, including Sheraton Plaza, the Warsaw Financial Center and Atrium Plaza.
Part of a worldwide network of real estate agents, Regus is known as the largest provider of subleased office space.
Regus, however, is undaunted by the competition. The company's sales director, Liliana Waledzik, said she is confident that their market position will remain unchallenged. "The market will show if they (Executive Suites) are needed," she said.
Executive Suites already has one client lined up, software consulting firm Genesis. She refused to say how much space Genesis plans to take or what they will pay.
Pierre Couderq, head of real estate consulting firm Couderq & Partners, said a growing number of small high-tech companies and contractors are looking for small office space, spelling more business for companies such as Regus and Executive Suites. He said that the market has room for competitors to Regus.
Renovation of Gdansk shipyard planned
Gdynia Shipyard Group's subsidiary Synergia 99 is looking for investors to help it redevelop a 73-hectare plot in Gdansk's waterfront district.
The group plans to use the plot, located in Gdansk's Mlode Miasto district, to eventually develop 700,000 square meters of multi-functional space located near the city's old town. Synergia 99 is responsible for developing land gained two years ago through that company's purchase of the Gdansk shipyard.
The development plan envisions building a waterfront promenade and a shopping boulevard as well as integrating existing streets at the edges of the site into the project. The historic Plac Solidarnosci, known as the place where the country's Solidarity movement began, will be turned into a civic and cultural center.
The land will be divided into five sections. One will house an enterprise zone targeted toward high-tech companies. A central business district will also be developed and will include 80,000 square meters of modern office space. On the waterfront itself, Synergia 99 plans to build a retail and entertainment complex. In addition, the company intends to develop residential property and a festival marketplace.
"This is going to be a very interesting site for many investors," said Krzysztof Daroszewski, president of Gdansk-based developer Polnord Dom.
Janusz Lipinski, president of Synergia 99, said the project will require "substantial sums" of money, but refused to give a specific number. He said the group plans to begin talking to developers in the spring.
He also said that part of the space will be freed up by moving the Gdansk shipyard's production to Ostrow Island. "The landscape will change significantly, not only in Gdansk, but also of the whole Tri-City agglomeration," he said.
He said that investors or possible tenants should be lured by the size of the surrounding metropolitan area, which has a population of about 1 million. In addition, Gdansk was always a meeting place for Scandinavia and Western, Eastern and Central Europe, he said.
Lipinski was cautious, though, in predicting how quickly the development would take shape. "We need to discuss the plans with city authorities and environmental consultants," he said.
For that reason, the company has not yet drawn up a timetable for the start of construction. Erection of the commercial building is not expected to begin for three to four years, as developers must first tackle modernizing the area's infrastructure.
Synergia 99's shareholders, which include private equity fund TDA Capital Partners, will provide the initial capital for the venture. The group also expects to receive some money from the city authorities along with European Union funds.
"They (Synergia 99) made the first move the idea is great, now the only concern is money," Daroszewski of Polnord Dom said.
