Warsaw could soon have twin, Marriott towers in city center
The investors expect to make a decision sometime in the first quarter of 1999. The proposal is to develop a new office and hotel building located on an approximately 6,000 square meter area that is now occupied by the Patio Restaurant and Beer Cave, said Jerzy Karwowski, LIM's director. "There are plans that are being considered, but there is no decision yet," Karwowski said.
LIM is now researching whether there is enough demand for the new building. If the results are positive, the company would look to develop a building similar to the existing LIM Center, which has 22,393 square meters of office space, 2,616 square meters of retail area and 56,720 square meters of restaurant and hotel space operated by the Marriott. That company has a 25% stake in the LIM Center, while LOT has 50% and SGS has 25%. Karwowski wouldn't reveal how much needs to be invested if the new building is developed.
If it is developed it would also be operated by the Marriott, which is eyeing expansion of its space in Warsaw.
"We would like to have another hotel in Warsaw," said Richard Lyon, general manager of the Marriott Hotel. The location next to the existing hotel would fit Marriott's plans perfectly. "It would be an excellent location," he added.
Ster confirmed
South African multiplex operator Ster Kinekor will operate a theater located in the new shopping center Galeria Mokotow, which is being developed by the Globe Trade Center (GTC) in southern Warsaw.
"They decided to go with us, we just didn't sign a contract yet," said Jeff Georgino, who manages Ster Kinekor's operations in Poland.
GTC confirmed that it is likely to select Ster Kinekor and managing director Piotr Kroenke expects to sign a contract in coming days. If Ster Kinekor nails down a cinema in Galeria Mokotow it will be the company's 11th site in Poland and the third in Warsaw, Georgino said.
Ster-Kinekor plans to develop 50 multiplex cinemas for 550 screens by 2001 in Europe. GTC plans to start construction of Galeria Mokotow early next year. The mall is planned for an opening in 2000.
Office or hotel?
Developer BRC Holding, which earlier this year acquired 2,700 square meters of land on ulica Grzybowska opposite the Mercure Hotel, will decide by the end of next month whether to develop a hotel or office building there.
BRC is now negotiating with an unnamed client who could take about 70% of the building, which will likely comprise 25,000 square meters, said Sylwester Oldak, president of BRC.
A pre-construction agreement with the client would prompt BRC to develop an office building on the site. But if the talks fail, the company will develop a hotel there, Oldak said. BRC hopes to make a decision on the site by the end of January. This would allow it to complete the planning and design stage by early summer when construction is scheduled to begin, Oldak said. Whether it's an office building or a hotel, the structure is likely to be 10-11 stories and about 25,000 square meters, he added.
The building would be BRC's second development in Poland. The firm, owned by Western insurance companies, has also been developing the Les Tours office building at the corner of ulica Grzybowska and Aleje Jerozolimskie across from the Atrium and the Hotel Mercure. That building, which will contain 55,000 square meters, is planned for completion in 2000.
Doubling space
The supply of modern office space in Warsaw is expected to more than double to 680,000 square meters by the end of 2000, Knight Frank Nieruchomosci said in a report released last week.
There is currently 320,000 square meters of office space on the market. In the next two years, the city will see 360,000 square meters of new office space built, the report said. This includes 260,000 square meters, or 11 buildings, that are already under construction, and 100,000 square meters, or three buildings, that have obtained permits but aren't started yet, Knight Frank said.
But the amount of space on the market will likely increase further. There is currently 350,000 square meters in the planning stage. This includes the Zlota Center, Atrium South and Centrum-Kongresowo-Wydawnicze at Aleje Jerozolimskie street, Knight Frank said.
Despite the huge amount of space that will hit the market, Knight Frank said there will be demand to support the new developments. It pegged demand over the next two to three years at 420,000 square meters.
Currently the total stock of office space in Warsaw is estimated at 3 million square meters, but modern space accounts for only about 10% of the total, Knight Frank said.
Moving on
Pierre Collette, a partner with U.K.-based Healey & Baker has left his position as head of the company's office leasing operation in Warsaw after just seven months on the job to return home to Brussels.
The move wasn't caused by any downturn in the office market here, however. Rather Healey & Baker's global strategy, which has undergone revisions since its September merger with U.S.-based Cusham & Wakefield pulled him away from Poland, Collette said.
Because of the merger, a Healey & Baker executive heading office leasing operations in Belgium was moved and the company needed to fill the spot immediately. "London asked me to come back to Brussels," said Collette, who before coming to Warsaw in May had been working for Healey & Baker in Belgium for 10 years. "That's life with these big international companies."
With Collette back in Brussels, Healey & Baker's office leasing operations will now be managed by partners Chris Grzesik and Richard Petersen.
LIM is now researching whether there is enough demand for the new building. If the results are positive, the company would look to develop a building similar to the existing LIM Center, which has 22,393 square meters of office space, 2,616 square meters of retail area and 56,720 square meters of restaurant and hotel space operated by the Marriott. That company has a 25% stake in the LIM Center, while LOT has 50% and SGS has 25%. Karwowski wouldn't reveal how much needs to be invested if the new building is developed.
If it is developed it would also be operated by the Marriott, which is eyeing expansion of its space in Warsaw.
"We would like to have another hotel in Warsaw," said Richard Lyon, general manager of the Marriott Hotel. The location next to the existing hotel would fit Marriott's plans perfectly. "It would be an excellent location," he added.
Ster confirmed
South African multiplex operator Ster Kinekor will operate a theater located in the new shopping center Galeria Mokotow, which is being developed by the Globe Trade Center (GTC) in southern Warsaw.
"They decided to go with us, we just didn't sign a contract yet," said Jeff Georgino, who manages Ster Kinekor's operations in Poland.
GTC confirmed that it is likely to select Ster Kinekor and managing director Piotr Kroenke expects to sign a contract in coming days. If Ster Kinekor nails down a cinema in Galeria Mokotow it will be the company's 11th site in Poland and the third in Warsaw, Georgino said.
Ster-Kinekor plans to develop 50 multiplex cinemas for 550 screens by 2001 in Europe. GTC plans to start construction of Galeria Mokotow early next year. The mall is planned for an opening in 2000.
Office or hotel?
Developer BRC Holding, which earlier this year acquired 2,700 square meters of land on ulica Grzybowska opposite the Mercure Hotel, will decide by the end of next month whether to develop a hotel or office building there.
BRC is now negotiating with an unnamed client who could take about 70% of the building, which will likely comprise 25,000 square meters, said Sylwester Oldak, president of BRC.
A pre-construction agreement with the client would prompt BRC to develop an office building on the site. But if the talks fail, the company will develop a hotel there, Oldak said. BRC hopes to make a decision on the site by the end of January. This would allow it to complete the planning and design stage by early summer when construction is scheduled to begin, Oldak said. Whether it's an office building or a hotel, the structure is likely to be 10-11 stories and about 25,000 square meters, he added.
The building would be BRC's second development in Poland. The firm, owned by Western insurance companies, has also been developing the Les Tours office building at the corner of ulica Grzybowska and Aleje Jerozolimskie across from the Atrium and the Hotel Mercure. That building, which will contain 55,000 square meters, is planned for completion in 2000.
Doubling space
The supply of modern office space in Warsaw is expected to more than double to 680,000 square meters by the end of 2000, Knight Frank Nieruchomosci said in a report released last week.
There is currently 320,000 square meters of office space on the market. In the next two years, the city will see 360,000 square meters of new office space built, the report said. This includes 260,000 square meters, or 11 buildings, that are already under construction, and 100,000 square meters, or three buildings, that have obtained permits but aren't started yet, Knight Frank said.
But the amount of space on the market will likely increase further. There is currently 350,000 square meters in the planning stage. This includes the Zlota Center, Atrium South and Centrum-Kongresowo-Wydawnicze at Aleje Jerozolimskie street, Knight Frank said.
Despite the huge amount of space that will hit the market, Knight Frank said there will be demand to support the new developments. It pegged demand over the next two to three years at 420,000 square meters.
Currently the total stock of office space in Warsaw is estimated at 3 million square meters, but modern space accounts for only about 10% of the total, Knight Frank said.
Moving on
Pierre Collette, a partner with U.K.-based Healey & Baker has left his position as head of the company's office leasing operation in Warsaw after just seven months on the job to return home to Brussels.
The move wasn't caused by any downturn in the office market here, however. Rather Healey & Baker's global strategy, which has undergone revisions since its September merger with U.S.-based Cusham & Wakefield pulled him away from Poland, Collette said.
Because of the merger, a Healey & Baker executive heading office leasing operations in Belgium was moved and the company needed to fill the spot immediately. "London asked me to come back to Brussels," said Collette, who before coming to Warsaw in May had been working for Healey & Baker in Belgium for 10 years. "That's life with these big international companies."
With Collette back in Brussels, Healey & Baker's office leasing operations will now be managed by partners Chris Grzesik and Richard Petersen.
