Pride, never repentance

When Jeroen van der Toolen became Managing Director of Ghelamco Poland exactly one year ago he took that opportunity to present new projects which his company was to deliver. And since all that happened just prior to the MIPIM fair, better advertising would have been inconceivable. Today we shall call those promises he made to account. Initially Ghelamco was to build two warehouse blocks. Retail warehouses were to be constructed in Janki, the Warsaw suburb, with a floor space of 19,600 sqm, while a Krakowska Distribution Park with a shed of 10,000 sqm was envisaged at Szyszkowa Street in Warsaw. So what is happening to those projects today? Not much, really. Ghelamco also announced it would start constructing two new office buildings in Warsaw: one in the city centre, the other in Wola district. The small Zaułek Piękna offering 8,000 sqm in the very centre of the city was to have been built last spring, while building machines were to have entered the site of a huge group of 60,000 sqm space buildings in the autumn of 2003, between Prosta and Pańska Streets in Wola district. Neither project has got off the ground. So is something nasty going on in Ghelamco? Jeroen van der Toolen admits: "We just could not find another way out, with all our energy focused on the Crown Investments projects", though his voice expresses not repentance, but rather pride.

Pearl in the crown

Crown Investments comprises two office buildings in Wola district. Crown Point with 11,000 sqm letting space has already been opened, with construction work on the Crown Tower (8,000 sqm letting space) to be concluded late this year. Both office buildings already have contracted their principal tenants. Commercial Union has occupied 7,750 sqm in Crown Point, while Gerling has rented 3,800 sqm in Crown Tower. These contracts were among last year's most heatedly discussed events. Jeroen van der Toolen has this to say: "Last year we didn't plan to build the Crown Tower but due to the opportunity that came we signed the pre-leasing for Crown Tower and had to fasten this project". That is understandable: a developer is able to do much for a customer who moves out of a competitive project to sign a long-term lease at a monthly rent of 18.5 USD/sqm.

My dear tenants

But how much? - a question which pervades all who claim that Ghelamco must have used some unusual instruments to win such a large tenant. The Warsaw market buzzed with gossip about how much Ghelamco must have transferred to Gerling's and Commercial Union's accounts in return for their signatures to the contracts. The question we basked was "Did you pay Gerling and Commercial Union to become your tenants?" Jeroen van der Toolen chooses his words carefully: "There is no such thing as paying money to tenants. Every tenant is in a different situation: sometime it has some obligations in another building because its contract is not expiring yet or it wants a certain amount for doing the fit out. We have never offered money. What we do is making a customised profile for the tenant". Ghelamco boss states that there is nothing unusual in his operations and that all developers have a similar approach.

A Dutchman's smile

Taking into consideration that Ghelamco rented 27,500 sqm in various buildings last year, Jeroen van der Toolen's attempts to display how he has met his promises of 12 months ago must be treated with tongue in cheek. And now again Ghelamco boss is presenting plans no less spectacular than those of a year ago. Jeroen van der Toolen recites present projects: "In March we start on the construction of Zaułek Piękna. In April work will commence on the construction of Krakowska Distribution Park. The warehouses at Łopuszańska Street will be built as of May. All these ventures were announced some time ago. But a completely new and surely the most spectacular is the project at Domaniewska Street which will be somewhat similar to the group at Bitwy Warszawskiej Street". Jeroen van der Toolen adds with a smile: "We do not yet have a good name for it. When somebody has a good idea then he can call me in". The construction of the first stage (20,000 sqm office space) starts up this autumn. Together with the second stage - to be implemented at a yet unknown time - the whole group will boast around 50,000 sqm space for rent. The work will commence even should Ghelamco not find a tenant for that building. Jeroen van der Toolen ensures: "All the buildings we have constructed in Poland so far were commenced without finding a major tenant. And that is how we intend to proceed, since we believe in the Polish market". The way he keeps on smiling only goes to prove that this Dutchman who manages the Polish branch of a Belgian firm is not a person who makes mistakes.