Download The Koszyki Hall Will Emerge with Support of Bank Gospodarstwa

Press release
Warsaw, September 17, 2014
The Koszyki Hall Will Emerge with Support of Bank Gospodarstwa Krajowego
Today, the agreement on financing the Koszyki Hall project was signed. Bank
Gospodarstwa Krajowego will finance the revitalisation of the historic buildings, as
well as the development of their surroundings. The project, as part of the Polish
Investment Programme, is the first in Mazovia to be co-financed with the funds of the
JESSICA initiative.
The project, worth approx. EUR 81 million, is financed by Bank Gospodarstwa Krajowego
with:
-
BGK commercial credit as part of the Polish Investment Programme of EUR 60.84
million;
-
JESSICA loan of PLN 25 million – the funds of the Regional Operational
Programme of the Mazovian Province for Years 2007-2013;
-
revolving VAT credit facility of PLN 13 million.
The agreement on financing was signed today at the Bank by Piotr Lasecki, Vice President
of the Management Board of Bank Gospodarstwa Krajowego and Przemysław Krych,
President of the Management Board of the Griffin Group.
“It is not the first time that we have had the opportunity to execute an investment project
together with Bank Gospodarstwa Krajowego. The bank is a proven and experienced
partner,” said Przemysław Krych, President of the Management Board of the Griffin Group
realising the project of the revitalisation of the Koszyki Hall.
The conclusion of the agreement on financing is the last stage preceding the launch of the
construction process. In August, the executive board of Warsaw issued a final building permit
giving a green light to the construction works. The general constructor – Erbud – has been
chosen, and a formal ceremony of laying a cornerstone will be held in a few weeks.
“We are glad that funds of the JESSICA initiative that we operate will co-finance a project in
the heart of Warsaw. A modern building in a functionally developed urban surroundings will
emerge,” said Piotr Lasecki, Vice President of the Management Board of BGK, during the
event. “This was the main reason why we made the decision to finance the project with a
commercial credit provided by the Bank as part of the Polish Investment Programme,” he
added.
This project is of huge importance to Warsaw. So, it is financed as part of the Polish
Investment Programme and with funds of the Regional Operational Programme of the
Mazovian Province for Years 2007-2013 within the JESSICA initiative. The purpose of the
project is to completely revitalise the Koszyki Hall and its surroundings. The project includes
the maintenance and renovation of two existing gate outbuildings, a monumental gate and an
administrative building, as well as the reconstruction of the Hall’s main building. Additionally,
three A class office buildings will be developed around the Hall. In 2016, there will be 21 000
sq m of office area and commercial area available there.
The new Koszyki Hall will combine a modern office area with the old-time hall’s trade
tradition in the very heart of Warsaw. The exceptional atmosphere will make the Hall an
attractive place to arrange meetings and spend free time. The complex will also offer a few
squares open to the public. The biggest one, of 600 sq m, will be located in front of the
historic part of the Koszyki Hall. A part of the renovated area will be occupied by non-profit
organisations, which on the one hand, will allow public benefit organisations to expand their
activity, and on the other – ensure savings in their current activity. The saved resources will
be utilised in the non-governmental organisations’ activity according to their statutes.
JESSICA (Joint European Support for Sustainable Investment in City Areas) is an initiative
the purpose of which is to finance urban development projects. The repayable instrument is
used to finance urban undertakings (e.g. in the form of loans) with European funds, which
distinguishes the JESSICA initiative from subsidy programmes. After a project is completed,
the beneficiary starts to repay the loan, which enables to invest the repaid funds in further
projects of serious importance to the development of cities. Implementation of the JESSICA
initiative is financed as part of the regional operational programmes of provinces. In this form
of financing provincial authorities transfer a part of the regional operational programme funds
to the Trust Fund. Then, the so-called Urban Development Funds (UDF) are chosen. Their
role is to manage the JESSICA funds and to invest them directly into urban projects via
repayable financial instruments, e.g. loans provided on preferential terms.
Bank Gospodarstwa Krajowego performs the role of a UDF as part of the JESSICA initiative
in three provinces: the Pomerania, the Greater Poland and the Mazovia. Acting as a UDF the
bank offers preferential loans to investors executing urban projects that combine a
commercial aspect (ensuring repayment of a loan) with social components desirable from the
perspective of the local society (e.g. execution of a project enhances the attractiveness of a
particular area, attracts investors, improves the quality of life of individuals).
JESSICA in the Mazovian Province
BGK implements the JESSICA initiative in Mazovia in cooperation with the companies:
Agencja Rozwoju Mazowsza S.A. and Mazowiecka Agencja Energetyczna Sp. z o.o. The
executive Board of the Mazovian Province spent for this purpose approx. PLN 190 million of
the regional operational programme of the Mazovian Province. In other words, the JESSICA
initiative is a financial and also repayable support provided to urban projects, offered in the
form of preferential loans (with interest as low as 0.5 percent per year, with the maximum
repayment period of up to 20 years and a grace period of up to 12 months since the project
completion, without any fees or commissions for the loan provision and service). The
JESSICA initiative arouses considerable interest; the value of loan applications filed is twice
as big as the amount of proceeds entrusted to the Bank. Now, the last urban projects are
being evaluated. The projects financed in the Mazovian Province so far include the
revitalisation of two historic buildings of the Warsaw University and the railway station in
Płock, as well as the expansion of the educational complex of the ‘Helenów’ Society of the
Friends of Children in Warsaw.
Bank Gospodarstwa Krajowego is the only in Poland state-owned bank. It was established
in 1924 by the initiative of Władysław Grabski, the then Prime Minister and Minister of
Treasury. Since the very beginning, BGK has been supporting social and economic
governmental and territorial self-governmental, as well as regional programmes. Presently,
Bank Gospodarstwa Krajowego both executes and initiates numerous programmes
enhancing the economic growth of Poland. The Bank is a pillar of the Polish Investment
governmental programme as part of which it provides long-term financing of investment
projects, including projects of strategic meaning to the national economy and the state
interest. The Bank executes export supporting programmes, as well as infrastructural
programmes, it develops the surety and guarantee system. It takes part in financing selfgovernmental units, municipal companies and health centres, as well as in executing
programmes focused on housing market recovery and offering the Poles access to
apartments. It is a leading institution in the process of consolidation of the public finance and
the system of flow of European funds.
Griffin Real Estate was established in 2006 as a platform for management of funds
investing in the real estate sector. Ever since its inception, Griffin has also invested its own
assets in real estate. In March 2013, Griffin acquired a strategic investor – Oaktree Capital
Management – the cooperation with which it has continued since 2010. Oaktree is an
American hedging fund with offices located all over the world. It employs over 650 staff and
manages resources of approx. USD 90 billion. Griffin, a leading investor on the Polish real
estate market, actively invests in prestigious projects on behalf of the funds it manages. Its
strategic objective is to develop a unique real estate portfolio within a few years’ time. The
current portfolio of the Griffin Group includes for instance the Koszyki Hall in Warsaw, the
Renoma Shopping Centre in Wrocław, the Supersam in Katowice, as well as other office and
commercial buildings and plots of land intended for investment. Griffin supports numerous
initiatives, such as the Jan Karski Educational Foundation. The facilities owned by the funds
managed by Griffin are also a home to artistic projects initiated by Griffin Art Space, an
institution established by Griffin to support art and promote its presence in public space.
Contact persons for the media:
Anna Czyż
Spokesman
Bank Gospodarstwa Krajowego
tel. 22 59 98 067
[email protected]
Magdalena Kaca
High Profile Strategic Advisors
tel. 694 685 098
[email protected]