Tesco chooses first Warsaw location for hypermarket
Tesco, which is set to open its hypermarket in Poland this week in Wroclaw, purchased an 11-hectare site at ulica Polczynska, the source said. Tesco bought the land from U.S. developer AIG/Lincoln, which had originally intended to build a retail and industrial park similar to Janki in south Warsaw. Healey & Baker is representing AIG/Lincoln in the transaction.
Tesco, however, refused to confirm that it had bought the site. "We are looking at Warsaw, but at this moment I cannot confirm whether we finalized a deal there," said Andrew Dixon, marketing director of Tesco-Savia, Tesco's Polish subsidiary.
AIG/Lincoln confirmed the negotiations are underway but refused to elaborate. "We are working on it, and I'm not going to comment until it's finalized," said Brian Patterson, who manages AIG/Lincoln's operations in Poland.
But the source at Healey & Baker said that Tesco's offer was more attractive to AIG/Lincoln than the possibility of developing the site independently. "Tesco came and decided to buy the entire site," said the agent. "They are going to develop it themselves."
The plot equals about 110,000 square meters of space, which is likely to contain other shops in addition to Tesco's hypermarket. Tesco's average hypermarket only takes up about 10,000 square meters, Dixon said.
Tesco's Wroclaw store will be located on a 70,000 hectare site being developed by Swedish retailer Ikea. The complex will also include OBI, a do-it-yourself hardware store.
The U.K. chain could begin developing the Warsaw site as early as next year, the source said.
Tesco has already invested Ł350 million ($510 million) in Central Europe, which includes Poland, the Czech Republic and Hungary, Dixon said. He refused to say how much Tesco plans to invest in Poland or the number of outlets it intends to open. "We do intend to be one of the major players here," he said.
Next year Tesco will open it's second hypermarket here in Czestochowa and an additional two locations. Those two other sites will be Krakow and Gliwice, according to the Healey & Baker source.
Tishman's juicy contract
Four real agents are vying to represent Tishman Speyer's new, $300 million development next to Krakow's railway station.
Tishman Speyer, which next year plans to start building a complex that will include retail, office and entertainment space, this month is likely to select one or two agents that will market the project, a source with agents said.
"We are talking to agents," confirmed Torben Nielsen, who manages Tishman Speyer's activities in Poland.
Nielsen wouldn't say which agencies his company was talking to or how many agents the group plans to work with. Nor would he say when a decision will be made. "We haven't set a date," he said.
But executives in the companies said that Tishman had whittled its choice down to four agencies: Jones Lang Wootton, Healey & Baker, Knight Frank and Prime Property in conjunction with partner Hillier Parker of the U.K.
The four agencies had pitched their services to Tishman earlier in November, when they each presented their ideas for marketing the site. Those agents earlier in November had presentations for Tishman Speyer, said Ian Elliott, the partner responsible for retail marketing at Jones Lang Wootton. "It's one of the most excellent projects in Poland," Elliott said about the Krakow development.
Tishman plans to start construction of the project's first phase next year, probably sometime in the second half, Nielsen said.
The first phase, which will house a total of 100,000 square meters of space, will include 70,000 square meters of retail space. That phase of the project is expected to be completed by late 2000 or early 2001 and cost about $300 million.
Tishman eventually plans to develop all of the 10 hectares of land it has in Krakow, building 300,000 square meters of mixed office, retail and entertainment space. That space could also house a hotel and a residential complex, with the total investment coming to as much as $600 million.
Regus changes managers
Regus Business Centre, the U.K. provider of temporary office space, plans to increase its number of locations in Warsaw from the current one to five by the end of next year.
At the moment Regus operates one, 1,800-square-meter business center located in the Sheraton Warsaw Hotel and Towers. In January, it will open a new, 2,050-square-meter center in the Atrium Plaza building and eventually run another three centers in Warsaw.
"Warsaw can support five business centers," said Aaron Richardson, Regus' director for Central and Eastern Europe. "We have massive demand. We see a vast amount of potential here."
In the meantime, Regus has reworked its managerial team in Warsaw. The company in September let two key managers go: lukasz Glebowicz, who was sales manager, and Anna Szenk, who had managed the company's center in the Sheraton.
Glebowicz said he left the company because his U.K. bosses stopped listening to his advice on how to approach the Warsaw market.
"The concept is fantastic, the demand is high," said Glebowicz, who now works for Swedish company Swedgiro. "But they want to copy blindly something that maybe works well in the U.K., but will not work here."
Glebowicz added that clashes with the U.K. management also pushed Anna Szenk out the door.
But Richardson said that the changes would speed up the company's expansion here. "We asked lukasz to leave the company," he said, although he refused to comment on the specific reasons.
Szenk did not complete the probation period, he said.
To replace Szenk and Glebowicz, Regus hired Izabela Ligas to manage its Sheraton center and two new sales executives, Jerry Gorzko and Liliana Waledzik. Regus, which currently employs 15 people in Poland, will hire more people here, Richardson said.
"We are recruiting heavily," he said.
Tesco, however, refused to confirm that it had bought the site. "We are looking at Warsaw, but at this moment I cannot confirm whether we finalized a deal there," said Andrew Dixon, marketing director of Tesco-Savia, Tesco's Polish subsidiary.
AIG/Lincoln confirmed the negotiations are underway but refused to elaborate. "We are working on it, and I'm not going to comment until it's finalized," said Brian Patterson, who manages AIG/Lincoln's operations in Poland.
But the source at Healey & Baker said that Tesco's offer was more attractive to AIG/Lincoln than the possibility of developing the site independently. "Tesco came and decided to buy the entire site," said the agent. "They are going to develop it themselves."
The plot equals about 110,000 square meters of space, which is likely to contain other shops in addition to Tesco's hypermarket. Tesco's average hypermarket only takes up about 10,000 square meters, Dixon said.
Tesco's Wroclaw store will be located on a 70,000 hectare site being developed by Swedish retailer Ikea. The complex will also include OBI, a do-it-yourself hardware store.
The U.K. chain could begin developing the Warsaw site as early as next year, the source said.
Tesco has already invested Ł350 million ($510 million) in Central Europe, which includes Poland, the Czech Republic and Hungary, Dixon said. He refused to say how much Tesco plans to invest in Poland or the number of outlets it intends to open. "We do intend to be one of the major players here," he said.
Next year Tesco will open it's second hypermarket here in Czestochowa and an additional two locations. Those two other sites will be Krakow and Gliwice, according to the Healey & Baker source.
Tishman's juicy contract
Four real agents are vying to represent Tishman Speyer's new, $300 million development next to Krakow's railway station.
Tishman Speyer, which next year plans to start building a complex that will include retail, office and entertainment space, this month is likely to select one or two agents that will market the project, a source with agents said.
"We are talking to agents," confirmed Torben Nielsen, who manages Tishman Speyer's activities in Poland.
Nielsen wouldn't say which agencies his company was talking to or how many agents the group plans to work with. Nor would he say when a decision will be made. "We haven't set a date," he said.
But executives in the companies said that Tishman had whittled its choice down to four agencies: Jones Lang Wootton, Healey & Baker, Knight Frank and Prime Property in conjunction with partner Hillier Parker of the U.K.
The four agencies had pitched their services to Tishman earlier in November, when they each presented their ideas for marketing the site. Those agents earlier in November had presentations for Tishman Speyer, said Ian Elliott, the partner responsible for retail marketing at Jones Lang Wootton. "It's one of the most excellent projects in Poland," Elliott said about the Krakow development.
Tishman plans to start construction of the project's first phase next year, probably sometime in the second half, Nielsen said.
The first phase, which will house a total of 100,000 square meters of space, will include 70,000 square meters of retail space. That phase of the project is expected to be completed by late 2000 or early 2001 and cost about $300 million.
Tishman eventually plans to develop all of the 10 hectares of land it has in Krakow, building 300,000 square meters of mixed office, retail and entertainment space. That space could also house a hotel and a residential complex, with the total investment coming to as much as $600 million.
Regus changes managers
Regus Business Centre, the U.K. provider of temporary office space, plans to increase its number of locations in Warsaw from the current one to five by the end of next year.
At the moment Regus operates one, 1,800-square-meter business center located in the Sheraton Warsaw Hotel and Towers. In January, it will open a new, 2,050-square-meter center in the Atrium Plaza building and eventually run another three centers in Warsaw.
"Warsaw can support five business centers," said Aaron Richardson, Regus' director for Central and Eastern Europe. "We have massive demand. We see a vast amount of potential here."
In the meantime, Regus has reworked its managerial team in Warsaw. The company in September let two key managers go: lukasz Glebowicz, who was sales manager, and Anna Szenk, who had managed the company's center in the Sheraton.
Glebowicz said he left the company because his U.K. bosses stopped listening to his advice on how to approach the Warsaw market.
"The concept is fantastic, the demand is high," said Glebowicz, who now works for Swedish company Swedgiro. "But they want to copy blindly something that maybe works well in the U.K., but will not work here."
Glebowicz added that clashes with the U.K. management also pushed Anna Szenk out the door.
But Richardson said that the changes would speed up the company's expansion here. "We asked lukasz to leave the company," he said, although he refused to comment on the specific reasons.
Szenk did not complete the probation period, he said.
To replace Szenk and Glebowicz, Regus hired Izabela Ligas to manage its Sheraton center and two new sales executives, Jerry Gorzko and Liliana Waledzik. Regus, which currently employs 15 people in Poland, will hire more people here, Richardson said.
"We are recruiting heavily," he said.
