Professional Documents
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Executive
Executive
1
EXECUTIVE
SUMMARY
EXECUTIVE SUMMARY 5
EXECUTIVE SUMMARY
The Property
Address: Przyczolkowa, Sarmacka, Branickiego Sts., Warsaw
Main Use: Wilanow One Project: three apartments, three penthouses and
eleven garages located in existing buildings as well as
undeveloped land of 178,723*) sq m designated for
residential and commercial purposes.
NB. * Wilanow One Sp. z o.o. is no longer the owner of the plot
no. 2/65 of 981 sq m however, we have been asked by the
Client to take into account the above plot in the valuation.
Tenure
Wilanow One Sp. z o.o. has the perpetual usufruct right to the land until
27th September 2089 and owns the freehold of the buildings.
Purpose of valuation
The valuation was commissioned by the Client for internal purposes.
Valuation Date
30th June 2013
Market Value of the undeveloped site of 178,723
sq m under Special Assumption (1)
Market Value of the undeveloped site of 178,723 sq m under the Special
Assumption that the new Master Plan has been approved.
PLN 156,113,000 (ONE HUNDRED AND FIFTY SIX MILLION ONE HUNDRED AND
THIRTEEN THOUSAND PLN)
The above value is net of purchaser’s costs and VAT.
Comments
Positive
Prestigious location close to the Wilanow Palace within a fast developing
residential area consisting of new, low-rise residential buildings;
Regular shape of the site;
Proximity of recreation areas such as Natolin Park, Marysin Park and the
Kabacki
Forest;
New Master Plan currently under approval procedure.
EXECUTIVE SUMMARY 7
Negative:
Located in the suburbs of the city, with a significant distance to the city
centre;
Average accessibility with respect to public transport (only bus lines serve the
area);
Subject of perpetual usufruct right;
Large size of the site (17 ha);
Mixed use (residential, office and educational project);
Large scale of the project - together with numerous planned/pipeline
residential estates within the district may keep apartment prices at a low level.
V ALUA TION REPORT 8
2
VALUATION REPORT
VALUATION REPORT 9
VALUATION REPORT
Rondo ONZ 1
00-124 Warsaw
Poland
Variation from No
Standard
Assumptions
Market Conditions The values stated in this report represent our objective
opinion of Market Value in accordance with the
definition set out above as of the date of
valuation. Amongst other things, this assumes that the
properties had been properly marketed and that
exchange of contracts took place on this date.
Going forward, we would draw your attention to the
fact that the current volatility in the global financial
system has created a significant degree of turbulence in
commercial real estate markets across the
world. Furthermore, the lack of liquidity in the capital
markets means that it may be very difficult to achieve a
sale of property assets in the short-term. We would
therefore recommend that the situation and the
valuations are kept under regular review, and that
specific marketing advice is obtained should you wish to
effect a disposal.
Disclosure The principal signatory of this report has not been the
signatory of valuations for the same addressee and
valuation purpose as this report. CBRE Sp. z o.o. has
not continuously been carrying out valuation instructions
for the addressee of this report.
Reliance This report is for the use only of the party to whom it
is addressed for the specific purpose set out herein and
no responsibility is accepted to any third party for the
whole
or any part of its contents.
Publication Neither the whole nor any part of our report nor any
references thereto may be included in any published
document, circular or statement nor published in any
way without our prior written approval of the form and
context in which it will appear.
T: 22 544 80 21 T: 22 544 80 79
E: maciej.wojcikiewicz@cbre.com E: agnieszka.wierzchowska@cbre.com
Energy Performance We have been informed that the buildings where the
Certificates penthouses and apartments are located all possess a
current Energy Performance Certificate.
VAT All rents and capital values stated in this report are
exclusive of VAT.
PROPER Y REPOR T 23
T
3
PROPERTY REPORT
PROPERTY REPORT 24
24
PROPERTY DETAILS
Location
The subject site is located in southern Warsaw, in Wilanow District, between
Przyczolkowa and Sarmacka St., south of the intersection with Branickiego St.
Rzeczpospolitej Ave., which is currently under construction, is some 200 meters west
from the property is the one of the district’s main exit roads running from
intersection with Herbu Korczak St. up to the crossing with Wilanowska Ave. In the near
future an extension of Rzeczpospolitej Ave. to the south to Sarmacka St. and then further
on to the Warsaw Southern Bypass road is planned. The city’s road scheme planning
also includes the construction of a viaduct over Wilanowska Ave. that will serve as a
direct connection between Rzeczpospolitej Ave. and Sobieskiego St and will improve car
access to the city centre.
Wilanowski Palace – a historic monument and one of the major Warsaw tourist
attractions is situated about 1 km to the east from the subject site.
Kabacki Forest Reserve – one Warsaw’s major recreation areas is located 6 km south of
the subject property. Further south, there is Konstancin Jeziorna town, where a
health park and luxury villas are located.
Accessibility
Car and pedestrian access is enabled from Sarmacka and Branickiego Sts. as well as
being facilitated from the planned Uprawna St. to the south and supported with internal
access roads.
Public transport is currently secured with two bus lines (217, 422) with stops at
Rzeczpospolita Ave, approximately 200 m from the property as well as numerous
running along Przyczolkowa St. and Wilanowska Ave respectively 0.5 km and 2 km from
the property.
There is a bus depot located at the crossroads of Wiertnicza St. and Wilanowska
Ave, some 1.5 km north from the property.
Situation
The immediate neighbourhood comprises of residential developments as well
as undeveloped land.
The property borders:
Sarmacka St. and further multi-family residential developments from the
west. There is a hospital building located at Rzeczpospolitej Ave approximately 200
m west from the property;
Przyczolkowa St. and further single and multi-family residential
developments to the east;
Branickiego St. to the north and further multi-family residential
apartments to the north and north-west as well as undeveloped land to the north-
east;
Undeveloped land and further on the planned southern ring road to
the south. A site plan is attached at Appendix A.
Site Description
The development site has a total area of 178,723 sq m and consists of the
following plots:
Schedule of plots
Plot No Precinct Real Estate Register Plot area (sq m)
(KW) Number
2/66 1-10-37 4,254
2/77 1-10-37 2,534
2/67 1-10-37 2,321
*)
2/65 1-10-37 981
2/80 1-10-37 168,633
Total 178,723
Source: Land
Register
NB. * Wilanow One Sp. z o.o. is no longer the owner of the plot no. 2/65 of 981 sq m
however, we have been asked by the Client to take into account the above plot in the
valuation.
The site is close to rectangular in shape. Its longer sides are adjacent to Przyczolkowska
St. (to the east) and to Sarmacka St (to the west). Its shorter side is adjacent to
Branickiego St. (to the north).
The plots presented in the table above are not developed and are planned for the
development of the future phases of the Wilanow One project.
The plot nos. 2/78 (WA2M/00474968/7) with a total area of 10,223 sq m and 2/79
(WA2M/000474974/2) with the total area 4,976, sq m, not listed above, have been
developed with the buildings in which the valued apartments, penthouses and
garages are located.
Project Description
The site of 178,723 sq m is planned for the development of a mixed use
residential, office and educational project in following phases:
Site B1 (symbol 2MW(ZP))
Phase Type of accommodation PUM (sq m) or GLA (sq m) or amount
of car park spaces
B.1.1a Apartments 11,198 sq m
B.1.1a Car Park 243
B.1.1b Apartments 12,503 sq m
B.1.1b Car Park 271
B.1.2c Apartments 10,303 sq m
B.1.2c Car Park 224
B.1.2d Apartments 10,256 sq m
B.1.2d Car Park 223
Source: Area breakdown provided by the Client
Accommodation
Areas
Due to the property currently being undeveloped we have relied on the schedule of floor
areas provided to us by the Client, as described in the “Project Description” section
above.
With regard to the existing penthouses, apartments and garages we have also based our
valuation on the information provided by the Client as presented below:
Schedule of areas – apartments
Building Number Floor Area (sq m) Terrace area (sq m)
A1 Penthouse 95 (D) 4 133.83 69,13
A1 Penthouse 96 (D) 5 126.17 71,73
A1 Penthouse 120 (E) 5 123.27 74,58
A2 Apartment 45 (C) 2 98.75 23,19
A2 Apartment 51 (C) 3 98.04 23,13
A2 Apartment 57 (C) 4 97.59 23,31
Total 677.65
Source: Geodesy Measurement provided by the Client
Schedule of garages
Building Garage number
A1 145
A1 158
A1 182
A1 201
A1 183
A1 202
A1 94
A2 1
A2 23
A2 54
A2 74
Fit-out office
The planned high quality fit-out of the building and office areas is assumed as follows:
Raised floors to a height of 15 cm above the flooring slabs in the
tenants’ areas, finished with carpeted flooring;
Floors in common spaces (circulation routes, entrance lobbies and lift
lobbies)
finished with stone flags and ‘gres’ tiles;
Suspended plasterboard ceilings or modular suspended ceilings in
tenants’ areas and common spaces;
The ceilings and staircase walls will be finished with a mineral plaster
coating and will be painted;
Walls in the common spaces will be wooden, stone or large format ‘gres’
tiles;
Partition walls – plasterboard walls on a steel sub-frame with mineral wool
insulation.
State of Repair
CBRE has not undertaken a structural survey, nor tested the services. We have not been
supplied with any survey report. We have undertaken only a limited state of repair
inspection for valuation purposes.
According to our limited inspection for valuation purposes the two existing buildings
completed in 2008 and 2009 are in a very good condition. No major repairs are
required or planned.
Environmental Considerations
We have not been instructed to undertake any investigations in relation to the presence
or potential presence of contamination in land or buildings or the potential presence of
other environmental risk factors and to furthermore to assume that if investigations were
made to an appropriate extent then nothing would be discovered sufficient to affect
value. We have not carried out any investigation into past uses, either of the property or
of any adjacent lands, to establish whether there is any potential for contamination from
such uses or sites, or other environmental risk factors and have therefore assumed
that none exists.
Total 157,276
Town Planning
There is a valid Master Plan for the area where the subject property is located, issued on
January 18, 2001 (the resolution no. 405 approved by Warszawa-Wilanow Commune
Council). According to this Plan, the site is coded as 19UM and is designated for a
services function with accompanying residential.
Based on the Plan, a development has to meet the following basic requirements:
Biological active area: minimum 30% of undeveloped
site area;
Built-up area: 70% of a
site area;
Maximum height of buildings: 4 floors above ground, maximum
16 m with admissible dominant of 5 m;
Building density
ratio: 1.1 ;
Roof slope:
30o to 45o.
Each area of land designated for the development process should be checked for
potentially difficult soil and water conditions, especially in the region of the Warsaw
Escarpment.
Part of the plot is subject to the Heritage Supervisory protection and requires
archaeological research.
According to our verbal enquiry the new Master Plan for the area where the subject
property is located was issued by the city council on 11th July 2013. According to the
provisions of the new Master Plan the site is coded as: MW(U) – multi-family residential
with services on the ground floor, MW(ZP) – multi-family residential with green areas,
UH/U – retail and services, ZP (green areas) and UO – educational services.
Based on the new Plan, a development has to meet the following basic requirements:
Biological active area: minimum 10% (UO), 30% (MW/U, UH/U), 40%
(MW/ZP), of undeveloped site area;
Built-up area: 70% (MW(U), UO), 65% (UH/U) 60%(MW(ZP), of a
site area;
Maximum height of buildings: 5 floors above ground, maximum 18
m (MW(U), UH/U); 3 floors above ground, maximum 12 m (UO);
Building density ratio: 1.3 (UO), 1.8 (MW(U),
MW(ZP), UH/U);
Roof slope:
25o to 45o.
We have been provided by the Client with a copy of the Occupancy Permit
no. AM-BK/7353/956/07-08/WR dated 29th April 2008 for the multi-family residential
development located on part of the land B1.
We have been provided by the Client with a copy of the Occupancy Permit
no. IV-OT/7/U/2009, PINB/IVOT/AJ/7357/9895/08 for the multi-family residential
PROPERTY REPORT 31
31 st
building with underground car park , issued by the Building Supervisory in Warsaw on 1
January 2009.
Having regard to the above information, we are not aware of any issues which would
adversely impact upon the value of the property.
LEGAL CONSIDERATIONS
Tenure
Our tenure information has been based upon the following electronic access to the Real
Estate Registers Nos. WA2M/000196355/4, WA2M/00474976/6,
WA2M/000496681/1 (undeveloped land) and WA2M/00474968/7,
WA2M/000474974/2 (3 penthouses, 3 apartments and 11 garages) on 15th July
2013.
Separate Real Estate Registers for the valued apartments and penthouses have not been
created yet.
Below we present a summary of the Real Estate Registers.
Chapter I-Sp (Rights) Perpetual usufruct right to the land till 27th September 2089.
Chapter II (Ownership)
Perpetual usufruct Wilanow One Sp. z o.o. in Warsaw has
right holder the perpetual usufruct right.
Chapter III
Easements in the form of provisions of two preliminary purchase
(Burdens and Limitations) agreement s for the benefit of a private individual Maciej
Łukasz Targowski and legal entity Senica Anstalt, both dated
2007;
Chapter I-Sp (Rights) Perpetual usufruct right to the land till 27th September 2089.
Chapter II (Ownership)
Perpetual usufruct Wilanow One Sp. z o.o. in Warsaw has
right holder the perpetual usufruct right.
Chapter III
Land easement on the plot no. 2/80 in the form of use right of
(Burdens and Limitations) communication infrastructure on the plot 2/80 providing an access
right to the plots nos. 2/78, 2/79.
Chapter I-Sp (Rights) Right of use of communication infrastructure on the plot 2/80 in
favour of the owner of the plot no. 2/79.
Chapter II (Ownership)
Perpetual usufruct Wilanow One Sp. z o.o. in Warsaw and
right holder co- holders has the perpetual usufruct right.
Chapter III
Land easement in the form of a free of charge establishment of
(Burdens and Limitations) ownership of a garage as well as transmission right t for the benefit
of RWE Stoen.
Claims relating to the exclusive use of the home gardens for the
benefit of several owners of premises.
Land easement on the plot no. 2/79 in the form of free ride and
passage and a use right for communication infrastructure providing
an access right to the plots no. 2/78, 2/79.
Chapter I-Sp (Rights) Right of use communication infrastructure on the plot no. 2/80 in
favour of the perpetual usufruct holders of the plot no. 2/78
Chapter II (Ownership)
Perpetual usufruct Wilanow One Sp. z o.o. in Warsaw and
right holder co- holders have the perpetual usufruct
right.
Chapter III
Easements in the form of provisions of two preliminary
(Burdens and Limitations) purchase agreements tfor the benefit of private individuals: Michał
Wrzołek and Maciej Łukasz Targowski, both dated 2007;
Land easement on the plot no. 2/78 in the form of a free ride and
passage and use right of communication infrastructure providing
an access right to the plots nos. 2/78, 2/79.
Land easement in the form of free ride, passage and use of recreation
area on the plot no. 2/78 to the benefit of every perpetual usufruct right
holder to the land and each of the owners to the building on the plot
no.
2/79
Chapter II (Ownership)
Perpetual usufruct No entries.
right holder
Chapter III
No entries.
(Burdens and Limitations)
NB. * Wilanow One Sp. z o.o. is no longer the owner of the plot no. 2/65 of 981 sq m
however, we have been asked by the Client to take into account the above plot in the
valuation.
MARKET COMMENTARY
Introduction
We set out below an overview of the Polish economy together with a detailed analysis of
the Warsaw residential market. Where possible we provide details of market transactions
comparable to the subject property, completed within the last two years.
Macroeconomic Overview
Poland has a population of 38.5 million inhabitants. Warsaw is the capital city as well
as the most significant political and economic centre of the country. The city is also
an administrative hub of the Mazovian Voivodship, one of 16 voivodships in Poland.
Currently, the major concern for the country’s economy is associated with the recession
in the Eurozone countries fuelled by the budgetary instabilities. However, the extent
of influence of the recession is not predicted to be profound, as the potential slowdown
has already been accounted for by market participants. Furthermore, the recent decision
of the European authorities in introducing a coherent buyout plan of the distressed
countries’ governmental bonds has been generally accepted by economists, who
claim it should give the most problematic economies enough time to introduce
savings programs, aimed at reducing public debt, which is considered as the most
significant problem of the European economy. If the outcomes of the plan match
up to the expectations, the current slowdown might be overcome in the near future.
Nevertheless, one of the biggest threats concerning Polish short-term economic
expansion is the possibility of a second wave of economic instability in the European
Union, which could again increase pessimism throughout the financial markets.
However, since the middle of 2012, the attitudes of the market participants have seemed
to improve.
The recent economic indicators in Poland confirm the general slowdown well observed
across Europe. Although 2011 GDP growth exceeded analysts’ expectations and
amounted to 4.3%, the GDP growth in 2012 decreased to 2.0%, indicating a
deteriorating trend. The deceleration of the Polish economy is affecting most of the
components of GDP growth. After the EURO 2012 championship the level of
construction diminished as a number of public investments had already been completed.
Industrial output and domestic consumption have also been affected by the slowdown.
However, although the PLN has recently appreciated against the EUR Polish goods still
remain strongly competitive in Europe, especially among Western European countries
whose inhabitants who are being put under pressure to limit their spending.
Although signs of a slowdown are evident, Poland remains perceived as one of the most
stable economies in the CEE region. Forecasts for the upcoming years predict a further
slowdown of GDP growth, which however, should remain positive and amount to 1.3%.
GDP Growth in Poland 2003-2013
7%
6%
5%
4%
3%
2%
1%
0%
2003
2004
2005
2006
2007
2008
2009
2013*
2010
2011
2012
Source: Central Statistical Office; *Oxford Economics
forecasts
The Consumer Price Index (CPI) which registered a slight increase over the whole of
2011 did however decrease in 2012. In April 2013, y-o-y CPI amounted to 0.8% which
represented a significant 3.2 % point decrease in comparison with April 2012. Owing to
the constant volatility of the CPI index and signs of rebound in the global economy, the
Polish monetary authorities signalled a new monetary tightening campaign at the
beginning of 2011. After a number of increases in 2011 and one in 2012, the base
interest rate reached 4.75% at the beginning of May 2012. Although the level of
inflation remained initially above the National Bank of Poland target of 2.5% +/-
1%, the Monetary Policy Council started to loosen its policy and cut the level of interest
rates. The slowdown of GDP growth together with a decrease of CPI
determined a continuation in the easing policy that started in November and December
2012. After six decreases in 2013 the base interest rate now stands at 2.50%.
10
0
2013F
2004
2005
2006
2007
2008
2009
2010
2011
2012
2005
2006
2007
2008
2009
2010
2011
According to the preliminary data published by NBP, the total inflow of foreign direct
investment (FDI) into Poland reached almost 2.8 billion in 2012 showing a significant
decrease when compared to 2011 (EUR 13.5 billion).
The interest in Poland, showed by foreign investors, attests the good condition
of the Polish economy. According to the PAIiIZ (Polish Information and Foreign
Investment Agency), the key motives behind the decision to invest in Poland
include the size and absorptive capacity of the market (with over 38 million people
Poland ranks as the largest country in Central Europe), relatively low labour costs,
good business environment, growing integration into the global economy and the
success of Poland’s privatisation programme.
As at May 2013 the Polish Information and Foreign Investment Agency was running
more than 157 projects worth almost EUR 3.9 billion. These projects are to generate
nearly 29,800 job positions. The majority of the investment comes from the US (44
projects worth EUR 0.9 billion), Germany (20 projects worth EUR 0.48 billion),
China (12 projects worth EUR 0.24 billion) as well as the United Kingdom (10
projects), Switzerland (9 projects) and Sweden (7 projects). The most popular sectors are
BPO (38 projects, EUR 37 million), automotive (24 projects, EUR 1.34 billion) and
R&D (15 projects). In 2013, the Polish Information and Foreign Investment Agency
closed 18 projects (EUR 0.48 billion)
In order to attract new investors, the Polish government and local authorities have
implemented a number of programs offering different incentives for newcomers. The
most popular schemes are tax exemptions, support in terms of co-financing of the
adjacent infrastructure and others, including direct funding in Special Economic Zones
(SEZs).
Currently there are 14 SEZs located in different regions and cities. They differ in terms of
size, location, business profile, land development conditions, road and technical and
telecommunications infrastructure. The zones are to operate until 2017, with the
exception of the Katowice SEZ (until 2016) and Euro-Park SEZ in Mielec (until
2015). The zones are mainly focused on supporting manufacturing industry, but some
of them also include a number of office buildings (e.g. in Katowice and Lodz). An
entrepreneur who establishes a business within a SEZ may draw on regional support
in the form of income tax deductions or direct grants. The type and amount of the
support usually depends on the value of the capital expenditure incurred or the
number of new jobs created.
The most prosperous economic sectors connected with new foreign investment in Poland
include: automotive, aviation, biotechnology, BPO, domestic appliances, electronics, IT,
mechanical industry, metal industry, R&D and renewable energy.
The unemployment rate in Poland in March 2013 stood at 14.3% (compared to 13.3%
in March 2012), indicating an increasing trend. The rise of unemployment is caused
by the conservative attitudes of companies, which seem to reflect European uncertainty.
In line with long term forecasts, despite the strong fundamentals of the Polish economy,
the unemployment level may gradually increase till the end of Q2 2013.
PROPERTY REPORT 40
40
18% 16 000
15 500
15%
15 000
12%
14 500
9%
14 000
6% 13 500
3% 13 000
12 500
2013F
2014F
0%
2011
2010
2012
2004
2005
2006
2007
2008
2009
Source: Central Statistical Office; F – Oxford Economics
forecasts
After a rapid growth of average gross salaries in the enterprise sector in 2007-2008, the
growth of wages started decelerating post 2009. Nevertheless, in 2011 it turned out to
be still positive, amounting to 3.2%, and exceeded 4% in 2012.
1 200
1 000
800
600
400
Małopolskie (Krakow)
200
Pomorskie (Gdansk)
Lubuskie (Gorzow
Lubelskie (Lublin)
Slaskie (Katowice)
Lodzkie (Lodz)
Podkarpackie
Wielkopolskie
Dolnoslaskie
Mazowieckie
0
Poland
(Rzeszow)
Wlkp.)
(Poznan)
(Wroclaw)
(Warsaw)
Infrastructure
Warsaw Frederic Chopin International Airport is located just 10 km away from the city
centre. With over 320 international and domestic flights a day and over 9.5 million
passengers in 2012 it is by far the largest airport in Poland. In 2008 and 2011 the
airport underwent an expansion program. During the first phase of expansion a new
terminal was added. As a result of the second extension, the number of gates was
increased from 15 to 27. Future plans concerning the area of the airport involve the
construction of a multi-use area known as Chopin Airport City. Apart from a park and a
small public plaza, it will comprise 150,000 sq m of usable space and consist of a
business park, conference centre, a shopping mall, hotels and a fitness centre. The
planned budget of the investment is estimated at EUR 2.5 billion.
The main railway station in the city is Warszawa Centralna. As a result of the
UEFA EURO 2012 sport event that was held in June 2012, it has recently been
renovated. The station is the main railway hub connecting Warsaw with the majority
of Polish regional cities and European capitals. In Warsaw, there are also 5 additional
major train stations and a number of smaller stations for suburban lines. Currently the
Polish Railway (PKP) is working on a strategy to develop and refurbish a number of
railways and stations throughout the country in cooperation with private investors.
Warsaw is Poland’s main road, rail and air transportation hub; however it lacks a good
circular road system. Currently, two ring roads as well as the second metro line are
being constructed. Improvement to the existing bridges and development of new ones is
also under way. One of the most important improvements in the near future will include
the completion of the S2 route, being a part of the Warsaw ring road. In 2013 the part
of the route connecting the A2 highway and the Warsaw Airport should be delivered.
The Warsaw metro is one of Europe's newest metro systems and the only one in Poland.
It consists of a single north-south line that links central Warsaw with its
densely
populated northern (Mlociny, Bielany) and southern suburbs (Kabaty). The first section
was opened in 1995, with the final section being completed in October 2008. Around
580,000 passengers are transported during an average working day by the current
metro line.
The construction works of the second line, crossing the city from east to west, were
commenced in September 2010. Its first, central section will consist of 7 stations: Rondo
Daszynskiego, Rondo ONZ, Swietokrzyska, Nowy Swiat, Powisle, Stadion and Dworzec
Wilenski. It will pass under the Vistula River between the Powisle and Stadion
stations. The vast part of the financing for building this section has been secured
from the European Union’s funds. The original plan to finish this section in time for
Euro 2012 appeared to be overoptimistic. Currently, the central part of the
second line is announced for delivery by the end of 2014. The construction works
are being carried out using a modern boring technology which should allow for much
faster construction compared to the first line. The remaining part of the second line,
which will consist of 28 stations in total, will be built later on.
The long-term plans concerning the metro line involve a short third line, which will
eventually connect central Praga with its southern part.
Target Express Road System in Warsaw
Source: CBRE
Education
Warsaw has 78 centres of higher education with circa 295,000 students. It is by far the
largest academic centre in the country. The most important universities in Warsaw
include:
University of Warsaw (UW), the biggest university in Poland, with
60,000 students;
Warsaw School of Economics (SGH) educating over 18,000
students;
Warsaw University of Agriculture (SGGW) (30,000
students);
Technical University of Warsaw (PW) with 31,000 students; it is one of
the largest universities of its kind in the Eastern Europe.
16 000
12 000
8 000
4 000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: Central Statistical
Office
Bemowo
11%
Others
27%
Bialoleka
14%
Bielany
7%
Zoliborz
5%
Wola Mokotpw
10% Praga 12%
Pld
9%
Srodmiescie Ochota
2% 3%
Demand
The situation on the market relating to the financing of apartments has been changing
dynamically during the last few years. At the end of 2009 banks started to loosen their
restrictive mortgage policies (easier access to financing, increasing the LTV ratio to even
100%). The changes were trigged mainly by the high level of savings accumulated
in the banking sector as well as by the stabilization on the global and local markets.
This trend was continued in 2010 but changed by mid 2011 as a result of the worsening
situation on the international financial markets, compounded by banks further risk-
limiting procedures. Due to the increasing bank requirements, by the end of 2011
the offer of mortgage financing for residential properties was severely limited and
available almost only in Polish currency.
The second half of 2011 and the beginning of 2012 also brought changes in the legal
regulations concerning developers’ businesses, the banking sector and borrowers, which
noticeably influenced the availability and methods of property financing. The major
changes included a Developers’ Law (in force since 29th April 2012) and Commission
of Financial Supervision recommendations (in force partially since mid-2011
and partially since mid-2012).
The Developers’ Law limited the possibility of new project development
financing with financial inputs from future purchasers and obliged developers to keep
an escrow
account – to accumulate the future purchasers’ inputs. The law also introduced
the necessity of widening the information policy relating to developers (an
obligation of issuing a prospectus) as well as concluding pre-sale agreements in the form
of Notarial Deeds.
As a result of the state of Polish public finance, a further increase in the VAT rate is
probable. Assuming its steady growth in the next few years it may reach the level of 10%,
which would lead to increased prices and could limit demand on the primary residential
market.
Due to the significant budgetry burdens as of 1st January 2012 the program
“Rodzina na swoim” supporting the purchase of residential apartments by young
families was closed. According to the program the State Treasury financed up to
50% of the mortgage interest for the first 8 years. The total amount of mortgage loans
supported by the program in 2011 and 2012 amounted respectively to 10.2 and 7.9
billion PLN.
Currently there are on-going plans for another program “Mieszkanie dla młodych”,
supporting citizens who are purchasing their first apartment by increasing their cash
deposits for apartment purchases. The program is scheduled to be launched at the
beginning of 2014.
150 12%
100 8%
50 4%
0 0%
V 2013
2000
2001
2002
2003
2004
2005
2007
1998
1999
2010
2006
2008
2009
2011
2012
Prices
Residential apartment prices – Poland
According to a survey of redNet Consulting, at the end of April 2013, the average
transaction price of residential units sold reached a value lower than the average asking
price of apartments available on the market. The largest price differences for apartments
sold and the asking price per apartment offered was recorded in Katowice and Gdansk
(-8.0%); in other Polish cities the negative difference between asking prices of available
and sold apartments shows a declining trend (8% in February, 6% in March and 5% in
April – the average for 7 agglomerations). Only in Lodz have the average asking prices
for sold apartments been higher than those recently offered on the market (1.6%
difference). The largest increase in prices of units sold in April 2013 compared to the
previous month was recorded in Gdansk (3.0%) and was smaller in Wroclaw, Katowice
and Warsaw (between 0.2 -0.5%). Taking into account the seven largest
agglomerations, the average price of sold apartments increased by 0.7% compared to
the previous month.
Average asking prices of sold apartments within the primary market in the
seven largest agglomerations in Poland - April 2013
Asking prices Asking prices - sold apartments
7 314
7 0127 049
7 281
6 1536 048
8 000
5 889
5 745
5 3865 118
5 3095 136
5 145
7 000
5 962
4 680
5 775
4 670
5 000
4 000
3 000
2 000
1 000
0
Average asking prices for apartments on the primary market: Warsaw and
Warsaw Agglomeration – historic data. 9 380
Asking price Asking price - sold apartments
8 189
10 000
9 000
8 934
8 000
7 000
6 000
PLN/sq m
5 000
4 000
3 000
2 000
Warsaw XII 2008
Warsaw IV 2013
Warsaw XI 2011
1 000
Source: redNet
Consulting
From the above graph it is possible to note the slow downward trend in the asking prices
of apartments offered on the primary market over the last few years.
Fac Val
tor ues
Min 8,3
Pric 33
Ave 8,4
rag 91
Ma 8,6
x 94
Min 0,9
Pric 81
Ma 1,0
x 24
Below we present apartment prices in selected residential projects which are
currently under construction in Wilanow district:
O O
ffi v
Warsaw is divided into two main office markets (the City Centre and Non
Central Warsaw) and into nine submarkets. Such division enables the market to be
analysed more thoroughly.
Source: CBRE
The submarkets within the City Centre include:
Core – Central Business District
(Srodmiescie);
Fringe of City
Centre;
whereas the Non-Central market is divided into:
North (N) – Zoliborz and
Bemowo;
East (E) – Praga and other
eastern districts;
Lower South (LS) – along
Pulawska St.;
South East (SE) – Sadyba and
Wilanow;
South West (SW) – Ochota, Wlochy and Okecie – mostly along
Jerozolimskie and
Zwirki i Wigury streets;
Upper South (US) – Mokotow district including Sluzewiec Przemyslowy
up to the railway line to Radom;
West (W)
– Wola.
The development of office hubs in Warsaw rarely depended on tenant’s preferences
in the past. The major factor influencing investors’ decisions regarding the location of
their projects was usually the availability of development sites in easily accessible
locations. The first office hubs were developed in the post-industrial areas and on the
sites of old factories, such as Empark – the very first business park in Warsaw. For
tenants, the most important location factor, apart from the costs and the standard of the
buildings, are the proximity to the City Centre or the Airport as well as the car and
public transport accessibility.
In the long term, infrastructure development is to be considered as the major factor
influencing tenants’ decisions regarding their location preferences. Future roads and
metro lines will influence the choice of occupiers and are predicted to move a vast share
of leasing activity to the city fringes in the long run.
An area that is especially attractive in this regard is the West (W). The zone is located
relatively close to the City Centre and offers a wide availability of post-industrial land for
sale. It is strongly possible that in the longer run this area will become a significant office
hub in Warsaw. Developers have already taken note of that opportunity and are joining
forces in order to promote the area as the new, dynamic and attractive office
destination. Furthermore, Wola should benefit greatly from the completion of the second
metro line, which will significantly improve the public transportation in the district.
Supply and
Pipeline
Since 2000 the number of office buildings and the total office area in Warsaw has been
constantly increasing. In Q1 2013, the total modern office stock increased by over
76,000 sq m in 4 new projects. In total, the modern office stock in Warsaw stands
at over 3.9m sq m located in over 400 modern office buildings. Around 33% of this
space is located in the City Centre.
Circa 63% of the total office space in Q1 2013 was delivered vacant, on a speculative
basis.
Completions of office buildings in Q1 2013
Bu Z D
ildi o
ng
Am n
U K 1
ba o 5
Ko U H 4
nst 8
Ox Y 8
yg W P 9
Pla C P 4
c C B 0
TO 7
TA 6
Source: CBRE
Currently, the preferred locations for the majority of office occupiers are the
Central zone, the South-West and Upper South parts of Warsaw including Mokotow and
Okecie districts. These particular locations have already encountered a dynamic
development activity. Additionally, there are also many older office buildings located
around the aforementioned locations, which may effectively compete with the new stock,
once refurbished.
Office completions by Warsaw submarkets
2010 2011 2012 Q1 2013
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
US SW Core Fringe of SE N LS E W
CC
Source: CBRE /
WRF
The current economic situation has had a strong impact on development activity. The
market is strongly influenced by the banking sector, which introduced more
restrictive and risk aware credit policies in the time of economic slowdown. The
access to financing, which has been strongly limited during the recent years, is
still being restrained, due to the uncertainty caused by the fiscal problems of the
Euro area. A standard practice for the bank is to ask for at least a 5% pre-let for each
instalment of the loan (in total up to even 40%). Moreover, banks expect their own
contribution to be
at the level of at least of 30% of the value of the project.
Warsaw Office Completions
City Centre Non Central
450 000
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0
2013F
2014F
2010
2007
2008
2009
2015F
2012
2011
Source: CBRE, F –
forecasts
Only those projects for which construction should start by the end of the H1 2013
should be considered as likely to be delivered by the end of 2014. The relatively
high level of new office space expected for delivery in 2013-2015 corresponds
with the strong level of demand recorded since the market’s recovery registered in 2010.
Currently, there is around 608,000 sq m of modern office space being built in Warsaw
in 38 projects. Most of them are being developed outside the City Centre (circa
468,000 sq m), representing some 76% of total office space under construction.
Only
32% of the currently developed office space has already been pre-leased. In comparison
to other European cities, Warsaw is one of the most active in terms of the amount of
constructed new stock.
As a result of the turmoil on the world’s financial markets, developers have been quite
cautious with regard to their strategic decisions. Currently however, their attitudes seem
to have become more optimistic, fuelled by the strong performance of tenants over the
last two years. Below we present the biggest projects, currently being developed in
Warsaw.
At the same time there are a number of planned projects on the Warsaw investment
map, including high towers in the City Centre as well as business parks in a number of
Non-Central locations. The most significant projects (over 30,000 sq m) at the planning
stage, for which delivery is scheduled within the next 3 years, are presented below. The
given year of delivery is based on rough estimations.
PROPERTY REPORT 60
60
Demand level
For years, the demand for modern space in Warsaw has been characterised by stable,
strong growth, fuelled by the strong performance of Poland’s economy. A single year of
slowdown was registered in 2009, caused mainly by external factors associated with the
global financial crisis. However, in 2010 the market returned to its previous growth path.
In the last year, the total office take-up in Warsaw amounted to 608,500 sq m, of which
28% was attributable to the Central locations, while the rest was registered in
Non-
Central locations, mostly in the Mokotow and Jerozolimskie area. The results of
Q1
2013 confirm that the demand for office space in Warsaw remains healthy.
The demand for modern offices throughout 2013 should remain strong. Companies and
investors have become accustomed to operating within uncertain circumstances and are
much better prepared for any foreseen general slowdown than three years ago.
The long term economic forecasts relating to the level of employment in the
Financial and Business sector in Warsaw suggest that companies will need more office
space in order to expand their operations and to create additional working places
for new employees.
As with the previous quarters, the demand in Q1 2013 was triggered mainly by
companies from the manufacturing, business services and the financial sector. In
Q1
2013, the largest deals included the renewal of BNP Paribas (11,000 sq m) in
Trinity Park II, renewal and expansion of Play (9,600 sq m) in Marynarska Business
Park and the pre-lease agreement of Konsalnet (8,200 sq m) in Jana Kazimierza 53/55.
Letting Activity by Sector in 2012 (%)
Business Services
Financial Services
Unknown
Computers / Hi-Tech
Public Sector
Consumer Services
Professional Services
Source: CBRE
Warsaw, as the capital of Poland will undoubtedly develop in the future, attracting new
investors. A simple way to estimate the future demand for office space is to analyse
predictions regarding future employment levels, as this has a direct impact on
office take-up. However, it is important to note that many other factors (such as GDP
and FDI growth) also influence the level of demand for office space and all the possible
demand drivers form a very complex structure. Therefore demand forecasts may differ in
different market scenarios. According to the Oxford Economics data the employment
levels in sectors generating demand for office space (services, finance, business
services, and public services) should grow by at least 50,000 till 2017. Assuming
that the average office space required for one employee is around 12 sq m, we can
forecast that the market absorption within the next 5 years should reach at least
120,000 sq m per year. The most intensive increase should be observed in business,
financial and other services. Public administration is forecasted to decrease in terms of
employment, in line with the debt reduction efforts.
The total take-up figure includes expansion of existing space, pre-lets, owner-occupied
space, lease renewals and new transactions. The share of renegotiations amounted to
almost 37% of the total leasing activity in Q1 2013. Around 38% of the take-up volume
was attributable to new deals in existing buildings. The share of pre-let transactions
totalled a significant amount of 19%, thanks to a number of large pre-lease
transactions: the biggest pre-lease was closed by Konsalnet (8,200 sq m) in Jana
Kazimierza 53/55 developed in the West zone by Laris, followed by a deal of Schneider
(7,000 sq m) in Park Rozwoju. The third biggest pre-lease was Alior (6,100 sq m) in
Lopuszanska Business Park II (South West zone). The scheme, which is developed by
Ghelemco is scheduled for delivery at the end of 2013.
Warsaw office take-up in sq m
Warsaw Net Take-up
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F
While in the Western markets built-to-suit agreements in offices are quite common, in
Poland pre-construction transactions are scarce, even if the pre-let take-up share
has been claimed to be high. For many market players the phrase ‘pre-let’ does not
always mean the same, as there are three types of pre-lease agreements in the
markets: Built- to-Suit, Pre-construction and Pre-completion leases. From the
financing point of view, the most important are the first two cases, when developers
manage to secure tenants for the buildings, before bearing the major costs of the
construction. In total, since
2003, only 20% of all pre-let and 4% of lease transactions volume in Warsaw
were
signed prior to the construction. That situation has greatly improved since the beginning
of 2011 with a number of large pre-lease transactions being registered, including
Orange (43,700 sq m), T-Mobile (27,000 sq m) and Frontex (14,600 sq m). As the
historic figures show, many office buildings in Warsaw and in other Polish cities as well,
were delivered empty, on a speculative basis.
250 000
200 000
150 000
100 000
50 000
Q1 2013
0
2011
2012
2006
2007
2008
2009
2010
Since the beginning of 2009 the market has been dominated by small lease
transactions – the size of average deal oscillates around 1,000 sq m. The largest deals
concluded in 2013 are presented in the table below.
S
Q Zo B T T
i
ne uil e
z
1 US Tri B11, r
Q
1 US nit
M Pl P 00
9, er
Q ar ay 6 e
yn 0 n
1 W La K 8, p
Q ris 2 l
1 US Pa S 7, p
Q rk 0 l
1 S Lo Al 6, p
Q W pu io 1 l
1 CB W C 5, r
Q D ar M 0 e
1 C W A 4, r
Q C ar 2 e
1 US N E 3, p
Q e P 9 l
1 US Iri D 3, ne
Q s C 6 w
1 US M C 3, ne
Q ok 4 w
1 S Eu R 2, p
Q W ro 7 l
ce 0
1 US IO C 2, r
Q -1 5
1 C Si N ne e
2,
Q C en O
1 C Si W4 1, w r
Q C
US en nH 8 e
1 K 1,
Q on 8 w
str 0 n
1 C Fo S 1, e
Q C cu 8 x
1 C W A 1, r
Q C ar c 7 e
1 LS Li S 1, r
Q gh C 5 e
Source: CBRE, WRF
Vacancy Rates
As a result of low levels of new supply and accelerating demand in past quarters, the
overall Warsaw office vacancy rate has been declining since 2009. In 2011 it hit a
cyclical low at 6.7% in Q4 2011. However, due to the growing amount of speculative
completions, the vacancy rate entered a growth path at the beginning of 2012.
Nevertheless, the increased amount of vacant office space should be gradually absorbed
in the longer run.
The lowest availability ratio at the end of Q1 2013 was recorded in the South-East (5%),
Northern (7%) and City Centre (9%) zones. The highest vacancy rate was registered
in the Lower-South (16%) and Eastern (12%) zones.
At the end of Q1 2013 the vacancy rate in Warsaw amounted to 9.9%, with the level of
9.6% registered in the City Centre and 10% in Non-Central locations.
Warsaw office vacancy rates by submarket
Vacant Space (sq m) Vacancy Rate (%)
25% 120 000
City Centre
0% 0
Core
SW
US
SE
LS
N
Source: CBRE / WRF, Q1 2013
In Non-Central locations, the existing buildings offering the most vacant space (over
5,000 sq m) are listed below.
Existing office schemes with a vacancy rate over 5,000 sq m (Q1 2013)
Vth/sq
Bu A Z
a m)
ildi dd o
c
Ko K U 35 15
nst
Ilm on
Ja S
C 10 E16
et
Po na B E
Po LS 8 15
lec
le E
zki
Mi Je C 7 16
lle
Iris ro
Cy C
U 6 14E
C be S E
C C 6 16
h
h C E
m
Co Gr W 6 18
nce
Ox zy
Ju S 6 E
15
yg
Lu trz
Zł W
C 6 E
23
me ot B E
W
M C 5 27
olf
ar C E
Ma
Sie Si C 5 18
nn
No en
Br C
E 5 E
13
wa
Eq ec
Je S 5 E
16
uat
Em ro
Po 5 W
U E
12
par
Pla ste
Po SLS 5 E
11
tan le E
Source: CBRE / WRF , March
2013
Net absorption (understood as the new space leased on the market) in 2012 accounted
for almost 170,000 sq m, i.e. 28% of total take-up. The average level of annual
absorption registered since 2009 is lower than the amount of office space that is
expected for delivery in the next two years. That should translate into increased vacancy
levels in the nearest future.
As most of the companies are applying a conservative strategy towards their future
expansion plans, no significant increases in the level of absorption should be expected in
the near future.
Zo S Vac V T C
ne ( (sq m) anc a a o
m) Rate
Co 5 5 1 2 4
re 0 5 1 0 0
Cit 7 6 8 2 0
y 8 8 . 7
Ea 1 2 1 1 0
st 7 0 1
Lo 1 2 1 2 0
we 7 8 6
No 1 8 6 4 0
rth 2 4 .
So 1 9 4 1 0
uth 8 1 .
So 6 7 1 1 8
uth 3 2 1 9 4
Up 1 9 9 6 6
per , 9 . 2 3
We 2 2 8 1 0
st 8 5 . 5
Ce 1 1 9 4 4
ntr , 2 . 8 0
No 2 2 9 1 7
n- , 6 . 0 2
Tot 3 3 9 1 7
al , 8 . 5 6
Source: CBRE /
WRF
Source: CBRE
Lu C E P 1 E
me B R L 1 U
Atr C E P 7 E
iu B U L 0 U
Ro C E P 1 E
ma B R L 0 U
Sky C E P 1 E
lig B R L 0 U
W C E P 1 E
olf C R L 0 U
Se C E P 10 E
nat C R L % U
Mo U E P 4 E
kot S R L . R
Ma U E E 3 E
ryn S R R . R
Cat U E P 3 E
ali S R L . R
Eq S E P 6 E
uat W R L R
Lib S E P 6 E
ra W R L R
Bit S E P 5 E
wy W R L . R
Ko U E P 4 E
nst S R L 3 R
Source: CBRE
PROPERTY REPORT 70
70
As the amount of speculative office space that will be delivered to the market in the near
future remains significantly high, the average rental level might decline gradually during
the next 12 months. However, prime rental levels remain relatively high as the availability
of office space in the most desirable locations is still limited. Therefore, the prime rental
level for those office buildings located in the CBD should remain stable throughout
2013.
40
35
30
25
20
15
10
5
0
2013F
2010
2004
2005
2006
2007
2008
2009
2011
2012
2013Q1
Source: CBRE, F - forecast
6 000
5 000
4 000
3 000
2 000
1 000
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
OFFICE RETAIL INDUSTRIAL OTHER
Source: CBRE
Investor demand is relatively strong and focused both on the prime assets as well as the
value-add opportunities. The interest in Polish assets remains viable mostly due to the
political and economic stability of the country, accompanied by the sound performance
of tenants in all sectors of the commercial property market. Moreover, the market
fundamentals and the economic forecasts are relatively positive for Poland, which should
sustain investor demand in the long run. However, due to a general scepticism caused
by the uncertainty over the economic performance of the European Union, the
investment volumes in Poland are being put under a gradual downward pressure,
particularly in the retail sector.
European investors are the most active group of purchasers in Poland. German open-
ended and close-ended funds are considerably important in this regard, being
responsible for 40% of transaction volume in 2012. A significant, 19% share has
also been registered by American investors. A visible trend is the increasing
activity of domestic buyers recording a level of 10% in 2012.
Germany
France
USA
UK
Poland
Other
Austria
Source: CBRE
Investment transactions in Poland in 2012-2013
Ye Quze
ar arte (s
2012 Q1
Marszalkows
20 Q P 3 8 1 G
12 1 ri , 9 1
20 Q H 1 6 5 A
12 2 a 8, %
20 Q R 5 6 2GL
12 2 e , 3 L
20 Q T 2 c 7 Eu
12 3 w 7, . ro
20 Q N 5 c 2 IV
12 3 o , a G
20 Q B 7 c3 E
12 3 a , . o
20 Q S 4 n 4 G
12 3 w , 5
20 Q P 4 6 1 A
12 4 la 7, % 3 z
20 Q W 5 c 2 A
12 4 F 0, . 1 lli
20 Q I 3 c 1 D
12 4 B 7, . 4
20 Q M 4 s 1 H
12 4 a 3, u 1 m
20 Q O 1 n 3 n/
12 4 kM , a
20 Q 1 n 7KS
a
13 1 7, P
20 Q z
N 4 7 1 H
13 1 e 4, 8 2
20 Q G 2 6 9 RR
13 1 r 7, 5
20 Q H 1 9 5KS
13 1 o 1, 3 P
20 Q P 1 6 3 A
13 1 la 1, 7 z
20 Q G 8 n 2BP
13 1 rz , S
20 Q T 1 8 2 Pr
13 1 ri 8, 5 a
20 Q B 1 1 1 G
13 1 at 2, 1 ,
20 Q S 2 ( 4 U
13 2 e 5, ,5 ,
20 Q O 4 n n A
13 2 c 0, a
Source: CBRE
Strong investment demand in the few last years has been clearly noticeable and has had
a direct impact on yields. Moreover, it has not been subject to any downward pressure in
Q1 2013. It is estimated that since 2002 prime office yields in Warsaw gradually
declined from 10% to the level of 5.40% - 5.50% in the end of 2007, when the
observed compression stopped. Since 2008 yields began to grow, especially in the office
sector. The global financial crisis resulted in a shortage of money supply and the
increase in interest rates which were the reasons for the yield decompression in all CEE
countries.
In Q1 2013 prime office yields in Warsaw were estimated at circa 6.25% for the best
performing buildings. With the limited evidence of office investment transactions outside
of Warsaw, the prime office yields in regional cities are estimated at around 7.3% for the
best schemes. It is expected that the gap between prime and secondary yields will
increase through to the end of 2013.
Prime schemes in Poland are still considered as very desirable by investors and their
availability remains limited. What is more, some investors have already started indicating
interest for value-added opportunities in prime office locations in order to pro-actively
prepare for the anticipated increasing vacancy.
16%
14%
12%
10%
8%
6%
4%
2%
0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: CBRE
Land Market
After a significant decrease of land values since late 2008 and a fall in demand,
currently there is a positive influence on the market brought about by decreased
construction costs, increasing investment activity and availability of finance.
Demand is focused on prime sites designated for small and mid size projects,
mainly driven by the high level of equity required , in comparison to previous years,
The key market features that affect land values are as follows:
location – distance to city centres, presence of green areas and access
to services
(shops, schools, kindergartens);
car and public transport
access;
surroundings – quality and character of neighbouring
developments;
planning situation (if the site benefits from a valid Outline Building
Permit, Master
Plan or Building Permit);
density of potential development – the larger the building that can be
developed on the site the higher the value;
size and shape of the site – prices for large sites are usually lower than
for smaller sites;
access to infrastructure (water, central heating, electricity and
sewerage);
tenure – sites held on a perpetual usufruct basis are usually cheaper than
these hold on freehold basis due to the fact that annual RPU fees can be substantial
and influence total development costs.
Usually the strongest impact on land values is the location and presence of planning
permits. The factor which has the weakest impact is title to the land (freehold/perpetual
usufruct).
Due to the size of the subject property and lower supply and demand for such sites we
decided to analyse Notarial Deeds of sites located not only in Wilanow District but
generally in Warsaw.
Below we present selected sales transactions concluded between 2011 and 2013
for sites above 10,000 sqm located in Warsaw:
25- B 3 50 P
07- e 8 3 u
201 Ch
m .
lop
06- Be 2 6Pur
05- mo
Po 3 0chas
No
wst
Sla Mas
ski
13- Wil 1 6Pur
03- an
Kol 5 chas
2Mas
o dev
ter
elo
01- Be 6 6Pur
12- Sz
mo 6 4chas
Site
eli
St. dev
tech
de
nica
mol
Sha
re
27- Mo 1 6Pur
06- kot 5 9chas
Mas
fam
ter
ily
06- Mo 1 7Pur
06- Jas
kot 1 0chas
Mas
mi resi
ter
den
Fina
l
29- Wil 4 7Pur
10- Rze
an 0 4chas
M
czp a
os st
15- Mo 6 8Pur
03- Jas
kot 0 0chas
Mas
mi fam
ter
ily
11- Bia 1 8Pur
09- lol 6 0chas
Mas
resi
ter
den
Below we present selected sales transactions concluded between 2011 and 2013 of
sites below 10,000 sq m located in Warsaw, Wilanow District:
26- W 5 50 Pur
11- i . 8 chas
201 St.
l 1 er:
serv
ices
26- Wil 3 6Pur
05- Prz
an , 1chas
Not
ycz
St. reg
Valuation Methodology
We detail our main methodology and market assumptions relating to the subject
property. We bullet point our main comments and assumptions below:
We have based the valuation on the following areas and assumed the
following timing and construction costs:
Site UO (symbol 5UO) – there is no architect concept with regard to development of this
part of the site.
The area of the plots designated for roads has been divided between
all 5 phases proportionally according to their share in 178,723 sq m;
Based on the evidence presented in the Market Commentary section
we have assumed the following Market Rental Values for the office accommodation:
Function Rent (PLN/sq m or space/month)
Office 60
Car park 270
Source: CBRE