echarris.com 21st-22nd September | Prague Czech Republic 2011 Volume 17 | Issue 07 | July / August 2011 CIJ Awards 11 Czech Republic | Hungary | Poland | Romania | Slovakia 11007 Residential Developers in CEE: 2000 - 2010 CZK 107 | HUF 929 | PLN 15 (7% VAT incl.) | RON 14 | RUB 140 | € 4.48 | index 37332X This issue is printed on 100% recycled paper THE FUTURE IS 100 YEARS OLD It’s not every day that a business marks their 100th anniversary. And it’s not every firm that reaches this important milestone, but then we’re not just any firm. In a world that changes more often, and more quickly than ever, we provide the certainty of outcome that comes with a century of successful client engagements, always keeping an eye firmly on the future. We look forward to the next 100 years with you. To find out more please contact: Marcin Klammer Pavel Cermákˇ Tibor Stahl John Atkins Poland Czech Republic Hungary and Germany t +48 22 310 22 06 t +420 226 207 800 Romania t +49 211 913 76 50 t +36 1 411 3300 7956EC 7956_CIJ Advert_June 11.indd 1 23/05/2011 09:16:07 This issue is printed on 100% recycled paper Contents REGIONAL 3 4 REGIONAL Editorial, 4 | Indicators, 5 | Real Talk, 6 | Company news, 8 | EuroNews, 10 | Financial Page, 11 | REAS: Consolidation coming for CEE residential sector, 12 | TOP 50 Residential: 2000 - 2010, 14 | CEE Marketing professionals survey, 64 | Events, 74 | Appointments, 75 | DBH, 76 | From the CIJ Archives, 78 28 CZECH REPUBLIC Same old stories in Prague 7 tender, 28 | Massive brownfield to transform Prague‘s center ,30 | Phase II of Classic 7 vs. Holešovice vacancy, 31 | Dutch done with Czech vacation homes, 32 | South Town in Brno finally lifts off, 33 | Aristocratic development planned, 34 | Housing starts roundup, 35 | Lordship delayed over spa-town politics, 36 38 HUNGARY Dallos: We haven‘t hit bottom yet, 38 | Duna Bellview nearly half-let, 40 42 POLAND Business Garden is speculatively sustainable, 42 | News ,43 | Goodman makes good in spec challenge, 44 | News, 45 | HB Reavis clinches PKP deal, 46 | Puzdrowski: Prices could still fall, 47 | Quick fix eludes residential sector, 48 | A2: Made in China...not!, 51 | Deals : C&A, Robyg and Grup Buma 52 THE FUTURE IS 100 YEARS OLD 52 ROMANIA It’s not every day that a business marks their 100th anniversary. And it’s not every firm Land prices in free-fall, 52 | CEDER 2011 Round-up, 54 | Offices going up at Cotroceni, 56 that reaches this important milestone, but then we’re not just any firm. 58 SLOVAKIA In a world that changes more often, and more quickly than ever, we provide the HB Reavis launches fund, 58 | Residential’s rebirth in Bratislava, 60 | Hajdu: Focus shifting to commercial, 62 certainty of outcome that comes with a century of successful client engagements, always keeping an eye firmly on the future. We look forward to the next 100 years with you. CEO ROBERT FLETCHER • [email protected] SALES & MARKETING MANAGER HU ............................................. OFFICE ADMINISTRATION HU .............................................................. Tel: (+48) 22 848 60 21 • Fax: (+48) 22 606 39 73 Dalma MÓZES ZSUZSANNA SARKOZY [email protected] To find out more please contact: SALES DIRECTOR CR & SK Tel: (+36) 202 396 736 • [email protected] Tel: (+36) 1 373 0429 • [email protected] Ing. ZUZANA VODRÁŽKOVÁ • [email protected] ROBERTS PUBLISHING Kft. SALES & evenTS MANAGER PL ........................................................... OFFICE ADMINISTRATION RO ............................................................... SZENT ISTVÁN TÉR 11/B, H-1051 BUDAPEST Marcin Klammer Pavel Cermákˇ Tibor Stahl John Atkins EDITOR IN CHIEF Marta NIEZGOda MONALISA Musteata Tel: (+36) 1 373 0429 • Fax: (+36) 1 373 0430 ROBERT MCLEAN • [email protected] Tel: (+48) 22 848 60 21 • [email protected] Tel: (+40) 213 110 091 • [email protected] [email protected] ROBERTS PUBLISHING S.R.L. Poland Czech Republic Hungary and Germany CZECH EDITOR ...................................................................................................... SALES & evenTS MANAGER RO .......................................................... DESIGN ......................................................................................................................... 20-22 SlaNIC STREET, ENtraNCE B, OFFICE 2, DISTRICT NINA FIBIGEROVÁ • [email protected] Adela BalaN JOZEF NEVEDEL • [email protected] 3, BUCHAREST t +48 22 310 22 06 t +420 226 207 800 Romania Tel: (+40) 743 794 364 • [email protected] t +49 211 913 76 50 POLISH EDITOR ................................................................................................... DISTRIBUTION CEE .......................................................................................... Tel/Fax: (+40) 213 110 091 t +36 1 411 3300 WOjCIECH KOŚĆ • [email protected] JOURNALIST ........................................................................................................... CZ PRESS, PressMedia, [email protected] DONata KARPIK EUROPRESS, RUCH, JARD-PRESS ISSN: 1214-9896 POLISH PHOTOGRAPHER ......................................................................... Tel: (+48) 22 606 39 73; • [email protected] COVER PHOTO © Alain St-onge | Dreamstime.com BartosZ ModrzewsKI • [email protected] OFFICE MANAGER CZ ..................................................................................... all correspondence to: conTRIBUTORS .................................................................................................. Petra šUSTOVÁ ROBERTS PUBLISHING MEDIA GROUP, s.r.o. AMELIA TURP-BALAZS, Tel: (+420) 224 225 601 • [email protected] VÁClaVskÉ NÁMěstÍ 19, 110 00 PRAGUE 1 MARCIN ŚmietaNA Tel: (+420) 224 225 601 • Fax: (+420) 224 222 308 OFFICE MANAGER PL ..................................................................................... [email protected] • www.cijjournal.com 7956EC EVENTS & EDITORIAL cooRDINATOR ........................................... ANNA MIECZKOWska ROBERTS PUBLISHING Sp. z o.o. DUšAN KRNJAJA Tel: (+48) 22 606 39 73 • [email protected] UL. RAKOWIECKA 36, 02-532 WARSAW Tel: (+420) 222 220 800 • [email protected] 7956_CIJ Advert_June 11.indd 1 23/05/2011 09:16:07 4 ISSUE 07 Editorial STATES FAILING AS INVESTORS Back in 2008, a discussion was going on in Poland about the possibility of using Chinese contractors to help complete the huge volume of construction work required before the top national football teams from around Europe begin showing up in June 2012. Covec, the Chinese contractor Poland’s road agency (GDDIkA) has just fired from the A2 motorway job, was unable to live up to its promise to build the road at a miraculously low price. It’s easy to blame contractors for going over budget, or for failing to estimate the final cost accurately. But it’s the investor’s job to weed out overly-optimistic bidders. Unfortunately, the A2 fiasco fits into a pattern of wretched incompetence by the state as investor. As the biggest spender in the country, you’d think governments would understand that assembling hyper- competent teams to manage investments would be a matter of the highest importance. Instead, they get yes-men who refuse responsibility by choosing on price alone. To make Poland’s Euro 2012 preparations even worse, it was recently discovered that the stairs at the new national football stadium are so dangerous that completion has been set back by months. Again, it would be simple to blame the builders or designers, but the responsibility for overseeing investments lies ultimately with the investor. Botched state investments are in no way a problem limited to Poland. The Czech Republic, which consistently builds mo- torways at prices far higher than those in Western Europe, recently said it wouldn’t use CZK 620m in subsidies from the EU for road construction work. The reason was that officials fear its planning is riddled with corruption. Romania has suffered similar difficulties with EU funds. It’s just not good enough. Firing those who made poor decisions is the obvious place to start, but it’s really the whole system that needs to be overhauled. Governments across Europe are demanding more from taxpayers at the same time as they cut back on the services they offer. It’s time they took a closer look at the effectiveness of the money they do manage to collect. It’s not just that taxpayers have the right to demand competence and efficiency, but because an inability to invest well is just plain dangerous: Greece spent billions on new stadiums for the Athens Olympics and extended metro lines to provide access to them. Today, many of them serve as little more than expensive grass farms. Spain and Portugal absorbed billions and billions of subsidies for the construction of gleaming new infrastructure. Need we say more? CEE countries never received the massive level of subsidies and loans from the European Union that earlier entrants did. There simply wasn’t the money available. Considering how things have turned out, perhaps that’s just as well. 30.06.2011 | Source: OECD Robert McLean Editor In Chief This issue is printed on 100% recycled paper Indicators REGIONAL 5 Rates 2010/2011 MAIN ECONOMIC INDICATORS 2010/2011 consUmer price indices, INDEX 2005=100 CZECH REPUBLIC MONTh 11 12 01 02 03 04 MONTh 10 11 12 01 02 03 04 Canada 109.8 109.8 110.1 110.4 111.6 112.0 Unemployment rate 8.5% 8.6% 9.6% 9.7% 9.6% 9.2% 8.6% Czech Republic 115.1 115.7 116.5 116.6 116.7 117.0 No. of unempl. (in th.) 495.2 506.6 561.6 571.9 566.9 547.8 513.8 Germany 108.5 109.6 109.2 109.8 110.7 110.5 CPI monthly change -0.2% 0.2% 0.5% 0.7% 0.1% 0.1% 0.3% Hungary 131.1 131.6 132.6 133.1 134.6 135.5 CPI yearly change 2.0% 2.0% 2.3% 1.7% 1.8% 1.7% 1.6% Japan 99.9 99.6 99.4 99.3 99.6 99.9 30.06.2011 | Source: ČSÚ, MPSV Poland 116.1 116.6 118.0 118.2 119.3 119.9 HUngarY Slovak Republic 115.7 115.9 118.1 118.5 118.9 119.5 Switzerland 104.7 104.8 104.4 104.8 105.5 105.6 MONTh 10 11 12 01 02 03 United Kingdom 115.6 116.8 116.9 117.8 118.1 119.3 Unemployment rate 10.9% 10.7% 10.8% 11.2% 11.5% 11.6% 11.4% United States 112.0 112.2 112.8 113.3 114.4 115.2 No.