Coupling up

In just the last few weeks PKP has started searching for partners to carry out development projects in Wrocław, Gdynia and Kraków, among other locations. “This year we are planning to issue six to eight further invitations for investors to cooperate with us on projects to be carried out under a similar format as those in Gdynia, Kraków and Wrocław. For example, the development of the former Warszawa Główna station and its area. We also want to carry out similar projects in smaller towns. In these locations, areas in the direct vicinity of train stations are mostly planned to feature retail development. We estimate that the total cost of the new development projects will exceed EUR 2 bln,” says Jarosław Bator, the real estate managing director of Polish State Railways.

Plotting new projects
Among its invitations to investors, PKP is offering the development of the disused Wrocław Świebodzki station (built in 1843) located less than a kilometre away from the Wrocław’s town square. and a neighbouring plot with an area of 28 ha. The company’s representatives estimate that the costs of the project could come to PLN 2 bln and point out that the attractiveness of the area is added to by the possibility of reintroducing railway traffic to the station and the construction of a transfer junction point. PKP is cooperating with the provincial and city government over the project. It is also looking for an investor in Gdynia for the transformation of the Gdynia Główna station. This would involve the development of the 14 ha ‘Międzytorze’ plot between sidings along ul. Jana z Kolna and ul. Janka Wiśniewskiego. A local zoning plan has been prepared for the area, allowing for the construction of a shopping centre as well as a number of office and residential buildings. It will also form the basis of the design for a new road layout connecting the station and pl. Konstytucji, as planned by the town council. Subject to the concepts that the developers come up with, the costs of the entire enterprise could amount to as much as PLN 900 mln. Plans should have been submitted by the end of February. A smaller plot is also in need of an investor in the south of Poland. In Kraków PKP is hoping, together with a potential partner, to develop a 1.4 ha site on ul. Bosacka near the Kraków Nowy Główny station. A variety of project-types could be built on the site: office, hotel or retail/service facilities. Investment costs could exceed PLN 200 mln.

Negotiations in progress
Not such a long time ago PKP also announced that Ghelamco GP 6 (a company owned by Ghelamco Poland) had exclusivity in negotiations over the project at the Warszawa Gdańska station, which is to be built over an area of 4.7 ha. “For Warszawa Gdańska we chose one developer and are currently in exclusive negotiations with the company. We hope to finalise the negotiations by the end of this quarter,” reveals Jarosław Bator. Ghelamco has commissioned the Sud Architectes architectural studio to create its vision of the Warszawa Gdańska station. A platform will connect the area of the station with city gardens built above the railway tracks and the platforms. An office complex is to be constructed around the station building.

Larger stream of money
The income from the sale of railway real estate will certainly not dry up this year. On the contrary, it might start to flow in an even stronger stream. “In 2013 we sold 391 properties for a total price in excess of PLN 200 mln. This year we would like to obtain app. PLN 400 mln. Some of the funds will come from the sale of PKP’s shares in shopping centres near the stations in Poznań and Katowice. Meanwhile, in 2015 we are planning to generate real estate sales revenue of app. PLN 250 mln,” explains Jarosław Bator. Where will the company look for investors interested in such cooperation? One of the ways will involve presenting its offer at the MIPIM international real estate fair. “Our basic aim in Cannes is to present the details of the potential cooperation in the projects that have already been announced, as well as signalling a number of new proposals. We have substantial ambitions related to the implementation of development projects and it seems to us that such a form of cooperation – compared to a sale in a tender procedure – is attractive for our partners. TriGranit provides an example here: after the first successful construction project with the Hungarian developer, we are starting negotiations over the next stage of the project in Poznań – the development of the site of the old station between the railway tracks,” points out the real estate managing director of the Polish State Railways.