PKP: decision about DOKP to be made this year

90-meters high, 40-year-old, grey, classic design, situated in one the best Polish locations – in the neighbourhood of “Spodek” and PLN 1 billion cultural district. These are the most characteristic features of the “DOKP” building – the property that still waits for its second life.

L to R: Altus, DOKP, construction site of the International Convention Center and Spodek at the background
L to R: Altus, DOKP, construction site of the International Convention Center and Spodek at the background

The abandoned facility is owned by the Polish State Railways (PKP). asked Jarosław Bator, real estate managing director and plenipotentiary of management board at PKP S.A., about the company’s plans concerning the building.

Did PKP make any decisions about “DOKP”?
– We bethink about the “DOKP’s” future. PKP considers the property as a typical office location – it will be probably torn down and a new scheme has to be designed. However, the situation is not easy as the office market in Katowice is still characterized by a low level of absorption while new office developments are being built. PKP is interested in selling the property but we are afraid the present demand does not meet our expectations. We do not want to invite bids when we are not sure that the offer is interesting for buyers. So that is why we currently identify the market. If we find potential buyers – there are a few investors that pay attention to “DOKP” – and if we can receive a rewarding price, we will close the transaction.

What would be the initial price for the property?
– I do not want to speculate about the price. The property gives a huge opportunity for developers – a new development can be very spectacular, what we can imagine when we look at “DOKP”. The real estate is expected to be very expensive, if a high-rise building is erected there. If the market needs a more chamber project, then developers will pay less.

What about Hines? Has the company finally given up on the project?
– The agreement between PKP and Hines terminated and the contract has not been fulfilled. I think the main reason of this situation was the economic downturn.

When we can expect your decision?
– I think PKP will make the final decision this year as it can not be postponed forever. If we decide to sell the building, we will put it on the market as soon as possible. We also understand how the property is important from the City point of view and how significant is the “DOKP’s” impact on the Katowice image.