Polish Business Survey
Energy consortium loses interest
It is rumoured that the Treasury has given the consortium of NRG, Marubeni and GE Capital until 24 July to sign a contract for the purchase of shares in the Rybnik power station.
The consortium has continually put off the date of purchase fearing increases in the cost of coal. It failed to get long term agreements with the coal producers announcing that it was seeking to purchase mines but this solution would also seem to have got nowhere. Experts consider it unlikely that anyone would purchase a coal mine before it restructured.
As it would appear that the consortium has lost interest, the British National Power could well step into their shoes.
Stock market disappointing
The stock market had another disappointing day yesterday with the fall in values continuing. This is clearly linked to fears about next yearŐs public sector deficit. There are few interested in selling their shares which suggests that the index may drop to 19,200.
IDM building in Wrocław and Warsaw
Developers IDM Polska are to spend over PLN350m on the construction of two shopping centres in Warsaw and Wrocław and are considering similar projects in Gdańsk, Gdynia, Katowice, Bielsko-Biała as well as a second scheme in the capital.
The centres in Wrocław and Warsaw will be completed under the Kinetika brand name and are being financed by retail developers TrizecHahn.
The Wrocław centre will cost almost PLN160m. Planning permission is expected this summer with completion in the autumn of 2001. The centre will be situated in the south west part of the city next to the Borek centre which is anchored by Carrefour and was opened last October.
The 30,000sqm centre will contain forty shops, multiplex, restaurants, bars, fitness clubs and a bowling alley. International estate agents Healey & Baker are claiming to have found tenants for around half the proposed space.
The Warsaw project will be situated in Plac Grunwaldzki in the capital. This project will be more expensive than that in Wrocław and will cost around PLN190m due to the higher cost of ground and an underground car park. No date has yet been set for construction to begin although Sean Briggs of IDM claims that the centre will be up and running sooner than CeficŐs Arkadia, completion of which is expected around the beginning of 2003.
In the opinion of retail expert Piotr Kaszyński of Healey & Baker, this type of project has a great deal of future and Warsaw could potentially absorb a number of them.
IDM also wants to build other centres but they will not receiving financing from TrizecHahn. IDM claims that it is seeking investors for these projects. IDM is only interested in retail and has stated quite clearly that it is not going to get involved in either housing or offices.
Renault seeks bigger share
Renault has announced that it hopes to get a seven percent share of the Polish car market next year, which will be aided by the introduction of a new car.
Renault, who found buyers for 13,500 cars in the first five months of this year, has not been effected by the drops in the overall number of vehicles sold. It has a six percent share of the market at present.
In October 2001 Renault hopes to open its own showroom in Warsaw at a cost of PLN18m with the same sum again being spent on a warehouse for parts. Further investments include USD1m on developing its IT and training networks.
Bankrupt mines fail to unite
On 1 July a company restructuring the coal mines (SRK) should have been founded. Despite the several months spent on preparing it, the company which would have brought together all the mines that were closed did not come into being.
The aim of the company was to use the resources of the closed mines for further business activities.
PLN45m for TV ads
In the first half of this year the pension funds and insurance companies spent PLN45.2m on TV advertisements. Funds have drastically reduced their advertising budgets. As a comparison, up until August of last year the pension funds alone spent PLN223m on advertising.
Krak-Brokers enters the internet
Krak-Brokers will use funds raised from a share issue to invest in internet services, particularly e-commerce. It is issuing 1m shares at PLN8.10 each. By September company is to be listed on the WSE.