Luxury that has not existed before.
Interview with Nicolas Tommasini, Vice-President of the Management Board and CFO at the Orco Property Group, carried out by Grażyna Stefańska’s.
Does Poland provide a favourable business environment for developers?
Public authorities are open towards investors or developers, but the regulatory system does not really match their needs. Asking this question, you probably have in mind the delay in issuing our building permit. In this case, the system made it possible to block the project for more than a year due to some administrative mistakes that had nothing to do with the investor and had not been caused by any action taken in bad faith by public officials. The system must be modernized to prevent these absurd situations from happening again, while it is less important whether investors are treated in friendly manner or not.
Did you feel any pressure from the banks when you started to operate in the Polish market?
We are very pleased that we have managed to secure 100% of the financing for the whole Zlota 44 project, because it means that the tower will be completed by 2013. Some potential buyers doubted whether Orco would be able to complete the construction, but as you can see today we have just done it (editorial note: the last floor of Zlota 44 was completed on the day of the interview). As structural work has now been finished and 100% of the financing has been secured for the entire project, perceptions have changed and Zlota 44 is now considered the best and the safest investment in Poland. We are working with Banks, which need to adapt to this newly-emerging luxury market, by modifying their financing criteria and restrictions with respect to apartment buildings. For example, the maximum amount criteria should be replaced with the value percentage criteria. Our customers are quite well-off, but some of them will probably apply for bank financing. In the present situation, banks prefer to take a conservative approach to financing requests, even though our customers fit their ‘ideal profile’ and banks would benefit by adapting to them. To find an effective solution, we are working on a global concept that will enable us to assist our customers with their financing applications.
What is this concept about?
We’ll be cooperating with the bank to prepare certain financing criteria for a specific square footage, in order to provide our customers with suitable loan options. Of course, potential customers will have to meet certain pre-defined criteria, but it’s not going to be work from scratch.
The Orco Property Group secured full budget financing for Zlota 44, which is a huge success. How did you manage to do in the current situation, marked by adverse macroeconomic conditions, difficult situation in the global banking sector and fierce competition in the housing market?
Orco treats Zlota 44 as a top priority. It is now our largest investment and that is why we’ve contributed a lot of equity. The project is financed through three channels: firstly – with funds contributed by the Orco Group itself, secondly – with funds provided by our customers, and thirdly – with bank loans.
What sort of challenges did you have to overcome during structural work?
One of the challenges was associated with the structure of the building. We were not erecting a typical block structure, because each floor is different. What counted most in this case was precision and work standards. Any deviations from the design during structural work were out of the question, even by one millimetre. The quality of construction was thus of paramount importance. It should be pointed out that most work was performed by Polish subcontractors, which proves that Polish business operators are perfectly capable of ensuring high standards. Another challenge is associated with maintaining top quality and this will continue to require our attention until the end of the project. For example, the façade panels, which are currently being installed on the elevation, were manufactured individually for each apartment. We didn’t order four thousand identical panels. Each was manufactured for a specific place and this will give the entire elevation a distinctive appearance. It is yet another cutting-edge option that distinguishes our building from standard skyscrapers that are being built nowadays. What you can’t see yet is something that will make Zlota 44 really exceptional – the high quality and style of living in such a luxurious apartment building. No other skyscrapers in Poland match the architectural value of Zlota 44 and neither do they contribute to creating a new lifestyle. Zlota 44 will be so unique, because it will offer the experience of living in a luxurious place with a wide range of services. It is something that is already available in London, Dubai and New York, but not in Warsaw. Residents will have a large number of excellent services at their disposal. This will include services in the common area facilities, e.g. music and lighting in the car park, TV on the elevator, remotely controlled functions in the apartment (including remotely controlled heating and window systems, TV, music, coffee-machine etc.). Residents will be able to use many other services, such as car washing or having the car driven from the garage. All services will be available 24h a day. Everything will be at hand here – breakfast-to-order, club, gym, you name it ! Even if you are a multimillionaire, you will not have as many services if our live in a beautiful house15-20 km away from the centre of Warsaw. Our main challenge today is not the construction process, but ensuring top quality of service and giving Zlota 44 a sense of community. We have extensive experience in this field, having created the best serviced residential community in Prague (Americka Park) or the most luxurious hotel in Warsaw (editorial note: the interview took place at the Le Regina Hotel in Warsaw). When the Le Regina Hotel first opened, it offered quality which was unmatched in Warsaw and we want to achieve something similar with Zlota 44.
The sale of apartments at Zlota 44 is very important for your company. Are there any estimates of interest in buying apartments there?
Until quite recently, we were confronted with an unfavourable situation, as it was not at all certain whether the building permit would be reinstated or not. When work could finally be resumed, we decided to focus on reassuring the market that the project would be completed in accordance with its schedule and that the building would be as tall as planned, rather than on speeding up the sale of new apartments. Having accomplished these tasks, we are now launching a new marketing campaign and I am convinced that the remaining two thirds of apartments will be sold very fast. We expect that about 75-80% of them will be sold by the time all the apartments are finished. At present, we have about 5 customers inquiring about the purchase of an apartment every day, so there certainly is a lot of interest. We’ve just sold a number of apartments and, what is interesting, not the cheapest, but the most expensive ones. The most popular ones are not the cheapest ones!
It’s all good news for your investment.
Yes, it shows that Poland has been relatively unaffected by the crisis or at least that not everyone has been affected by it.
Prestige, luxury, and premiumness best describe the character of the Zlota 44 apartment building, and even though these words happen to be abused in some situations, they are more than justified in the context of the Glass Sail. Unique design signed by Daniel Libeskind, one of the most outstanding architects worldwide, matchless quality of finish, innovativeness of state-of-the-art construction technologies and – last but not least - the unsurpassed offer of such amenities as the intelligent home management system (HMS), 24/7 concierge, and one of a kind leisure floor all make the Orco Property Group investment an unrivalled offer on the Polish real estate market, positioning it in a class of its own.
The market of luxury goods is an elitist club of brands enjoying each another’s company. This is why it should come as no surprise that they affiliate also in the case of Zlota 44, which is the new spot on the map of Warsaw. One of such examples is the cooperation with Ferrari Warszawa, which has been one of the partners for the most recent event organised for Zlota 44 customers to celebrate the completion of the building’s structure. Collaboration with the most desired car make in the world is not a question of pure chance. Just like Ferrari, which launches a limited edition of no more than 400 luxury vehicles every 10 years (since 1996), Orco Property Group offers 251 unique apartments available at one of a kind address not only in Poland, but also in the entire East-Central Europe, i.e. Zlota 44 in Warsaw. It can definitely be called the most groundbreaking residential offer of the decade. The presence of Ferrari Warszawa at the event held at Palace of Culture and Science on February the second marks the beginning of collaboration between those two luxury brands.
Another example is the unprecedented contract signed in May 2011 with BSH, the manufacturer of prestigious Gaggenau domestic appliances. Just to remind you: Zlota 44 shall be the first in Poland, and exactly the 9th investment worldwide comprehensively equipped with luxury Gaggenau appliances. Previously, the brand was selected, among others, for investments completed in Melbourne (Royal Domain), Hong Kong (The Arch), Beijing (Royal Palace), Singapore (Paradise Island), Malmö (Turning Torso) and Bangkok (Royal Residence). According to the contract signed with BSH, all the apartments shall be equipped, among others, with refrigerators, ovens, and ventilation hoods.
The market of luxury goods is also about fashion and art. Here Orco Property Group invites only the best of the best to cooperate with, always being guided by exclusive character of events it grants its support to. Hence, the Złota 44 developer was one of the sponsors of the most recent spring/summer 2012 La Mania fashion show, and the partner of the ‘Sztuka cenniejsza niż złoto/Art More Precious Than Gold’ presenting the output of 21 most expensive contemporary painters in Poland, which took place in December last year in the Art NEW media gallery.
Guests on the top of Zlota 44
Februrary 10th on a cold Friday afternoon, the highest floor of Zlota 44 erected so far was visited by the representatives of Orco Poland accompanied by the MaMaison Le Regina team. Unbearable cold at the height of nearly 190 meters was more than compensated for by a magnificent panoramic view of Warsaw.
Zlota 44 seduces with its luxury, embodied not only in the unique shape of its façade, which will become visible in almost its entire glory in just a few months. As befits an apartment building designed by the world-class architect Daniel Libeskind, Zlota 44 offers luxury in every detail of its interior and exterior design. Following the building’s structure completion, its investor – Orco Property Group – presented a new interior visualisations of one of the most cutting-edge residential skyscraper not only in Poland, but in the whole region of the Central and Eastern Europe. Every resident can choose from as many as five luxury interior finishing options. The creators of these prestigious interior designs drew some of their inspirations from the art of Asia, Art Deco and minimalism. It should also be mentioned that the apartments of Zlota 44 are sold exclusively as fully finished apartments, in response to the expectations of our customers and in conformity with the international standards in the luxury segment of property market.
Celebrating topping out on Zlota 44!
In the Polish construction tradition it does not matter if a house in the countryside, or a luxurious apartment building uptown is completed, as topping out is always a milestone in the history of every single construction. Zlota 44, designed by Daniel Libeskind, is no exception of this tradition. To commemorate the occasion, Orco Property Group, developer of the so called Glass Sail, organised a firework show on the day of the topping out ceremony (Feb the 2nd). Please find footage from the show below.
Zlota 44 represents a new symbol of luxury, whether in architecture, construction, interior design or services, and is a showcase for a developing, modern Poland.
We have achieved a lot in the past year: we have erected the last 36 floors; Bank Pekao S.A. has confirmed 100% of the project financing, and our permits have been confirmed in court - said Jean-Francois Ott, CEO & Founder of Orco Property Group.
One of the most secure investments in Poland
The fast and steady progress of work on site and permit confirmation enabled full financing for Złota 44 by Bank Pekao S.A. It confirms the financial stability of such an ambitious project and the high confidence in the developer, adds Alicja Kościesza, Business Development & PR Director for Orco Property Group in Poland The bank’s decision was influenced by the unique image of Zlota 44, the high level of commitment of Orco Property Group’s own funds, the high level of achieved sales at the current stage of construction and the lack of competition, as well as growing customer confidence.
Construction momentum
Zlota 44 stands for the highest level of luxury, an outstanding construction and engineering achievement. The lightness of the structure rising nearly two hundred metres is impressive…. The construction involved as many as 300 workers on site every day. In the very near future, as soon as work on the interiors starts, the number of workers involved on a daily basis will increase to an impressive 2,600.
Incorporated in the building are 80,000 tons of concrete and 6,600 tons of structural steel. The façade is a true masterpiece. Each of approximately 4,000 panels is custom-made and bears the Zlota 44 signature. Orco is the first developer to apply such a unique triple-glazed façade technology in Poland, explains Alicja Kościesza.
Plans for the future
After the 54th floor has been completed, one more detail remains: a characteristic, steel crest-finishing of the tower. It will be developed simultaneously with the mounting of facade panels. It will be ready by spring this year but it will be mounted only after the highest-located crane (used currently for mounting of façade panels) has been removed. (Protruding crest would obstruct the works carried out with the crane.) With the crest mounted, Zlota 44 will reach its final height of 192 meters.
Orco Property Group is planning to complete the closed-in shell of the skyscraper in July 2012. At the time Euro 2012 starts, most of the facade of the skyscraper will be completed to welcome tourists from all over the world to Warsaw.
Work is going ahead at full steam; clients’ interest is growing faster than the progress of construction and we are now resuming sales: we expect many closings over the coming weeks. We are confident that when Złota 44 is completed, the choice of apartments will be largely limited, declares Alicja Kościesza.
The first residents are to move into Zlota 44 in January 2013
The tower is here! I’m very excited that we managed to create such a unique, trendsetting project in Warsaw and in Europe. And I know there won’t be another Zlota for a long time … , said Jean-François Ott, founder and CEO of Orco Property Group.
Topping out of Zlota 44
The construction of the final 54th floor of Zlota 44 has been completed! Today, exactly at 9.30 am, the builders have placed a symbolic decoration of branches and flowers at the top of the building to mark the completion of structural work. More details soon.
On Friday, 20 January 2012 a year passed since the first crane appeared on the Zlota 44 construction site. Intensity of that year’s project work is now in plain sight. Over those 12 months 34 storeys and over 120 metres of the Daniel Libeskind designed residential tower have gone up; and are now visible from all the key points of the city. In progress are the two top floors of the building; rendered in a highly sophisticated structural technology of combined steel and reinforced concrete. What is particularly important is that we are now seeing façade panels being installed on the Glass Sail. You may remember that in progress her is the first ever in Poland installation of a triple glazed element façade on a high-rise building. As previously announced in our fan-page, the effects of this work will soon reach the speed of one storey a week. Though not yet the peak speed of the Orco project construction work, this marks commencement of installation of the façade panels, which are unique not just in terms of their structure, but also their varied shapes. Note, we will be installing façade panels of over 300 distinctive shapes and sizes. Now, in spite of complexity of the task, the speed of the façade installation work in the subsequent weeks will increase from one story a week to three storeys delivered every two weeks; to ultimately reach the top rate of two storeys a week. Finally, news sure appeal to every football fan: come the time of the EURO 2012 games, 90% of the Złota 44 high-rise façade will have been installed, with the east-facing wall – the one most visible from the National Stadium.
The “Art More Precious Than Gold” exhibition of the 21 most expensive Polish contemporary painters
On 8 December 2011 Galeria Art NEW media in Warsaw held the vernissage of the “Art More Precious Than Gold” exhibition presenting artwork of the 21 most expensive Polish contemporary painters. The event had for its partner Orco Property Group, the developer of the Daniel Libeskind design Zlota 44 apartment tower. The “Art More Precious Than Gold” exhibit came together based on the prices in past art auctions held in Poland. To establish the facts, the host gallery developed a league table of the most expensive contemporary Polish painters: those with the highest grossing artwork on record; sold by Polish auction houses over the past two years. The artists number 21; the work of three having achieved equivalent price levels. The ranking covers artwork created after 1950 by artists born after 1900. One exception to that rule was made for Henryk Stażewski, an artist equated with the spirit of the Polish avant-guard art who though born in 1894 can hardly be excluded from among the moderns. Notably, Galeria Art NEW media’s ranking took into account only live auctions held at a specific place and time, in other words, those fulfilling the Civil Code definition of “auction”. The exhibit features painting by Stefan Gierowski, Andrzej Wróblewski, Tadeusz Kantor, Jerzy Nowosielski, Wojciech Fangor, Henryk Stażewski, Kazimierz Mikulski, Jan Tarasin, Jerzy Tchórzewski, Teresa Pągowska, Leon Tarasewicz, Roman Opałka, Bronisław Kierzkowski, Jerzy Duda-Gracz, Jan Lebenstein, Zdzisław Beksiński, Stanisław Fijałkowski, Marian Bogusz, Jacek Yerka, Włodzimierz Pawlak and Adam Marczyński. Not there to comment, the exhibit rather offers an objective representation of the trends prevailing in the local art market. Actually it is the original exhibit curated by the market itself. “Art More Precious Than Gold” is on view until 4 January 2012 at the gallery’s Wilcza 28/6 venue in Warsaw, and has our highest commendation. By all means go and see it.
On Thursday, 24 November, at Warsaw’s iconic Palace of Culture and Science, La Mania Fashion House presented its Spring/Summer 2012 THE FOURTH ELEMENT womenswear collection. Orco Property Group, the developer of the Daniel Libeskind designed Zlota 44 apartment tower was present there as one of the event’s key partners.
THE FOURTH ELEMENT, The collection’s name is a clear reference to Luc Besson’s The Fifth Element feature film, and more specifically to love, which turns out to be the much sought after element complementing the four primal elements. And why is that? In this case, it is pure love and passion that brought La Mania, the first Polish pret-a-porter fashion label into being, its creator and creative director being Ms. Joanna Przetakiewicz. We could admire effects of her work and talent at the Thursday evening gala: a truly contemporary take on classic dresses, offering a subtle balance between the worlds of fantasy and high fashion.
The fashion show opening was graced with world class soprano Aleksandra Kurzak’s spectacular performance of the “Il dolce suono” aria from Lucia di Lammermoor, as heard in Luc Besson’s film, while Jan Kaczmarek, whose musical score for the Finding Neverland feature film received the Scoring Oscar, provided the event’s musical setting in person.
As could be expected, La Mania fashion show drew Polish business leaders, influential media personalities and celebrities.
