Cannes' annual Mipim forum is the most important event on Europe's real-estate calendar. It is where cities across the world vie for the attention of global-market players and where the biggest deals are signed. Lokale Immobilia was there to see what Warsaw had to offer and what kind of attention the city attracted in this international context

At this year's Mipim, Warsaw and Kraków had more to show potential investors than any other Polish city. Their booths were impressively exhibited and, according to the Mipim press office, Warsaw's stand was the eighth-largest in Cannes.
But besides all the glitz and promotional slogans, Warsaw was also able to put its money where its mouth is, presenting 14 impressive plots of land for sale. What is most important (from the investor's point of view) is that the legal status and zoning of these plots was clear.

Attractive offers
The land Warsaw had up for sale included the Wybrzeże Gdyńskie plot located in the northern district of Żoliborz and nestled in the Pas Nadwiślański (Vistula Belt). "The city will soon offer approximately seven hectares of land for the building of a housingretail complex in this attractive location on the left bank of the Vistula river," said Tomasz Andryszczyk, acting press spokesman for the City of Warsaw's promotions department.

In the very heart of Warsaw, an apartment-house at ul. Złota 83 is also up for sale. The building is built on a 1,492-sqm plot and has 4,064.7 sqm of usable area. Despite the fact that the building has been unoccupied for some time and is currently in a state of disrepair, the National Heritage Office has taken an interest in it and suggested some guidelines for its redevelopment. The building would be most suitable for residential or retail purposes.

Among the other plots for sale, five are located in Praga, on the eastern bank of the Vistula river. This includes a tenement in the center of the district. Four plots in Warsaw's popular Mokotów district are also available for residential development.

Getting in the zone
Warsaw's authorities know that the city's lack of zoning plans is one of the biggest bars to investing in the city. This also drives up prices on plots that are zoned, making it very difficult for ordinary Poles to afford apartments. However, according to Andryszczyk, by next year zoning plans should cover 20 percent of Warsaw. In addition to this, Andryszczyk pointed out that the Mayor of Warsaw, Hanna Gronkiewicz-Waltz, wants to see more cooperation with international
chambers of commerce and increased use of PPPs (publicprivate partnerships).

Golden boy
One Warsaw development which attracted a great deal of interest was Orco Property Group's Złota 44 scheme, a residential tower in the citycenter designed by worldfamous architect Daniel Libeskind. Jean Claude Moustacakis, Złota 44's project manager, said that Warsaw deserved such a world-class project and that it would become a new landmark for the Polish capital. "We would not be able to build this building in London or Paris, it is Warsaw that gave us this chance," said Moustacakis.

Daniel Libeskind himself was at Mipim and gave a presentation on world architecture trends. His speech was one of the highlights of the fair, and the architect addressed a packed hall. Libeskind intimated that he had fallen in love with Warsaw as a child and that Złota 44's design was a gift to the city and its inhabitants.

Alicja Kościesza, Złota 44's marketing manager, said that Libeskind's presentation made an impact on his listeners. "Representatives of other CEE cities, such as Prague, were approaching Libeskind, asking him to design buildings for their cities," said Kościesza.

The Orco Property Group also took the opportunity to announce a step that brings the Z∏ota 44 project closer to reality. On March 14, the first day of Mipim, Orco signed a detailed letter of intent with Belgian construction group Besix, choosing it as the general contractor for the Złota 44 building. "When selecting
Złota 44's general contractor, we were looking for a company which specializes in highrise buildings, offers flexibility and understands the luxuryinvestment
market," said Moustacakis. "Besix, currently constructing the world's tallest building – the Burj Dubai Tower – is the perfect partner and meets all these criteria."

Orco and Besix expect the final agreement to be executed within the next four weeks. Orco already has a building permit for the development (obtained in November 2006), so the demolition of the City Center shopping mall, which Złota 44 will replace, could begin in the second quarter of 2007. According to the
investor, the construction of Złota 44 could begin in the second or third quarter of 2007.

The cost of uncertainty
Several investors mentioned how impressed they were with Warsaw's presentation this year, seeing it as a positive step which could help bring new investors to the city. However, concern was also expressed about the current dispute over Gronkiewicz-Waltz's Mayoral status.

Sven von der Heyden, chairman of the Von der Heyden Group, the investor behind such projects as Warsaw's Liberty Corner and Andersia Tower in Poznań, said that the political turmoil does not help Poland's business environment. "It really hurts me when you read in the newspapers in England or France what is happening in Poland," said von der Heyden. "It shows the wrong picture of Poland and I sincerely hope that it ends soon because it is something that is hindering business."

Von der Heyden added that he was surprised that it has not already encumbered the economy. He explained that political uncertainty is particularly unfortunate for developers – especially in a place like Warsaw – as it prevents the progress of zoning plans which, in turn, increases land prices.