Poland Commercial Real Estate Market Hadley Dean Managing Partner, Poland 7th December, 2007 Going Global - Business Opportunities in Poland Conference 2007

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Commercial Markets by Colliers International Office Market Trends Industrial Market Trends

Office Market Overview

Warsaw Office Market 2007 Q3 Snapshot TOTAL STOCK Q (SQM) VACANCY RATE Q (%) VACANCY RATE Q (%) 2,690, SUBURBAN STOCK Q (SQM) SUBURBAN VACANCY RATE Q (%) SUBURBAN VACANCY RATE Q (%) 1,599, CBD STOCK Q (SQM) CBD VACANCY RATE Q (%) CBD VACANCY RATE Q (%) 1,091,

Warsaw Office Market Leasing Activity* *tenant deals signed (i.e. new tenants, renegotiations, expansions, & owner-occupier investments)

Warsaw Office Stock & Vacant Space

Office Rents in Warsaw Q DISTRICT AVERAGE HEADLINE RENT LEVELS (€) AVERAGE EFFECTIVE RENT (€) GROWTH IN EFFECTIVE RENTS Y-O-Y (%) CENTRAL BUSINESS DISTRICT SUBURBS WARSAW (CITY AVERAGE)

Trends in the Warsaw Office Market Very tight supply in CBD until at least 2010 Negligible levels of vacant space, rising rents Flood of new projects in south and south west of city (400,000 sqm over 36 months) Vacancy rates to rise, but only slightly. High demand will support rents in the suburbs

Regional Office Market 2007 CITY TOTAL STOCK (SQM) VACANCY RATE (%) KRAKOW201, WROCLAW158, TRICITY141, POZNAN113, LODZ52,

Trends in the Regional Office Market Supply boom - (notably Wroclaw and Lodz) High demand will hold rents firm in most locations Developers count on continued flow of BPO investments (particularly Lodz and Wroclaw), vulnerable to downturn in demand Poznan market remaining tight, rents rising

Colliers Success Stories – Office Deals PROVIDENT POLSKA Colliers Office Department represented Provident Polska in negotiations of office lease. Total area leased: 6,600 sqm Client: Provident Brokers: Marcin Kania, Paweł Skałba CANAL+ Advised by Colliers International CANAL+ decided to start the built-to-suite office building in the Stegny district of Warsaw. Total area leased:14,100 sqm Client: Canal+ Cyfrowy Broker:Paweł Skałba

Colliers Success Stories – Office Deals CAPGEMINI Colliers International assisted Capgemini, a world leader in IT consulting and outsourcing services, in its lease of over 10,000 sqm in Rondo Business Park in Kraków. Total area leased: app. 10,000 sqm Client: Capgemini Broker: Marek Ciunowicz NESTLÉ POLSKA Colliers Office Department represented Nestlé Polska in the renegotiation of their lease in UBC I & UBC II, office buildings located in Mokotów district. Total area leased: 5,300 sqm Client: Nestlé Polska Broker: Paweł Skałba

Industrial Market

Industrial National Snapshot – H Region Existing m2 Under construction m2 Planned m2 Vacancy rateAverage rent Warszawa ,0% € Silesia ,5%3.15 € Poznań ,9%2.90 € Łódź ,9% € Wrocław ,3%2.90 € Kraków ,00%3.40 € Gdańsk ,9%3.10 € Other ,00%- TOTAL ,51%- Road Infrastructure

Modern Warehouses – National Stock & Pipeline

National Market – Leasing Activity

Industrial Land Prices TORUN SZCZECIN €15- €30 €20-€35 Zone I €45- €60 €30- €50 €15- €30 €15- €25 €10- €15 €15- €25 €10- €15 Zone II €18- €30 Zone III €10- €25 INDUSTRIAL LAND PRICES

Special Economic Zones for New Investments 14 areas across Poland offering enhanced economic conditions Incentives include: Corporation or income tax discounts Fully prepared land with administrative clearance for investment at competitive prices Free assistance in completing administrative formalities Exemption from real estate taxes in certain districts

Colliers Success Stories – Industrial Deals PREGIS Pregis, represented by Colliers International in the lease transaction, became one of the first tenants for production space in Tulipan Park Gliwice. Client: Pregis Total space leased:16,000 sqm Brokers:Renata Osiecka, Maciej Chmielewski UNILEVER Colliers Industrial Department assisted Unilever in its lease of 42,000 sqm of industrial space in Central Poland. Client:Unilever Total space leased:42,000 sqm Brokers:Renata Osiecka, Maciej Chmielewski

Colliers Success Stories – Industrial Deals FIEGE Advised by Colliers International Poland Fiege Decided to lease 30,000 sqm of warehouse space in Silesia region. Client:Fiege Total space leased:30,000 sqm Brokers:Renata Osiecka, Maciej Chmielewski NESTLÉ Colliers International Poland represented Nestlé Polska in renegotiating their lease agreement of 20,000 sqm of warehouse space in Poznań. Client: Nestlé Total space leased: 20,000 sqm Brokers: Renata Osiecka, Maciej Chmielewski

Thank you for your attention! Hadley Dean, Managing Partner Tel Our Knowledge is your Property