Building of DOKP waits for brighter tomorrow

In 2008, PKP S.A. (Polish State Railways) and Hines Polska joined forces to run an office project near “Spodek”. The companies wanted to redevelop the existing building of “DOKP” and to build a new office tower nearby. The project was called Rondo Towers. However, construction works have not been kicked off so far. This is what the PKP’s representative, Paulina Jankowska, says about the investment.

“A launch of the investment was postponed to the next year. The reason is the same as for other investors – present office market situation in Katowice. A high supply of office spaces strongly overmatches a low demand.

Rental rates were decreased significantly since the end of 2008, nevertheless an activity on leasing transactions is still very low. This situation on the office market does not reflect neither the potential of Katowice nor the whole region, because companies in the area are not in a bad financial soundness. However, we are under the impression, that companies expect further rental rates’ fall or wait for an improvement of the general economic situation.

In this instance it is difficult for us to attract investors to start such a big project. We consider to follow the situation and to launch the investment when the market tendencies will change. Besides, a bank loans’ availability for office schemes is limited in all Polish cities for many months now except Warsaw. An additional circumstance which caused the postponement of the project was a relocation of the “DOKP” building’s tenants to other locations.

Until now we had obtained a planning consent and an environmental approval given by the City Hall in Katowice. Also, we have conducted narrow market researches and a survey of the construction site’s soil. Additionally, we were given legal and administrative permissions concerning the perpetual usufruct of the site which enable us to run the project in two phases.

With relation to the latest changes on the Katowice’s office market, our project is currently again submitted to a revision and analysis according to the new market situation. We do not exclude modifications on the project.”

The “DOKP” building is located in the heart of the City at 1 Roździeńskiego Av. near the “Spodek” hall and the roundabout. It has 18 floors and is 80 meters high. The building was designed by Jerzy Gottfried and was raised in 1972.