DVM Group and Greenfield Development Launch Industrial JV
The 15,000 sqm DVM-Greenfield project for Panattoni is under construction in Debrecen.
DVM group and Greenfield Development have launched an industrial sector joint venture under the name DVM-Greenfield to combine the construction experience of the former and the industrial contracting experience of the latter, according to the JV.
Doubtless reflecting the attractiveness of the industrial real estate sector and the increasing complexity of development and tenant demands, the new company will work closely with Limelog, a manufacturing and logistics firm, to provide its clients with integrated services.
Since its launch, DVM-Greenfield has already undertaken more than 70,000 sqm of general contracting and project management work. The participants have been keen to emphasize that the partnership does not represent a merger; DVM group, Greenfield Development, and Limelog will continue to operate independently.
“Due to the coronavirus pandemic, the stability of supply chains had to be reinforced, and in parallel, the growth of online commerce has led to a significant boost in the domestic and regional industrial real estate market in recent years,” comments Dávid Huszlicska, director of DVM-Greenfield.
“To ensure production security, European companies are increasingly bringing their own and their suppliers’ manufacturing facilities closer to their local markets, further increasing demand for quality warehouses and production halls. This interest is only intensified by the emergence of Asian manufacturing and assembly plants in the country, which also represents a huge opportunity for expansion,” Huszlicska adds.
Positive Trends
In reaction to these positive industrial market trends, Greenfield Development was launched in 2022 to provide general contracting and consultancy services to the industrial real estate sector. The founders of the company are Gábor Móró (also the owner of Limelog, which has its own fleet of transport vehicles and a prefabricated concrete element factory), Dániel Szélesi (who formerly held management positions at leading industrial park developer and operator CTP) and Huszlicska.
Since its foundation, Greenfield has developed a close professional relationship with DVM, which provides integrated building services in Hungary. On behalf of the group, Tibor Massányi has joined DVM-Greenfield’s management team as the JV’s managing director.
“Synergies enable us to deliver industrial real estate projects quickly, efficiently, tailor-made and to the highest professional standards,” Massányi says.
“In addition to general construction, we are able to guide our clients through the entire process, from the selection of the ideal site, through to conceptual design and construction, to commissioning,” he explains.
“We are available to our clients in all areas of the investment process, whether it is the development of a feasibility study or leasing issues,” Massányi concludes.
Booming Market
The industrial market has been booming, with leading regional industrial park developers and operators and Hungarian firms active in Hungary. Although the stock is still relatively small here compared to the more significant Central European industrial markets, a regional logistics and light industrial market has emerged, as elsewhere in CEE.
As of the turn of the year, there were around five million-plus square meters of modern logistics and light industrial space in Hungary, with 3.5 million sqm in the Greater Budapest area and 1.6 million sqm in provincial countryside centers.
According to consultancy Colliers, vacancy stands at 8.6% in Greater Budapest and 5.7% in the countryside. The industrial pipeline for Hungary currently stands at 460,000 sqm, of which 43% is preleased. The most significant projects are a 118,000 sqm warehouse at CTPark Sziget, the 56,000 sqm Weerts Vecsés and a 45,000 sqm facility at HelloPark Maglód - Budapest Airport.
DVM-Greenfield clients include Biggeorge Property with the realization of the 8,200 sqm West Gate H building and Panattoni Hungary with the 15,000 sqm ZF chassis manufacturing plant and warehouse in Debrecen (222 km east of Budapest by road).
Elsewhere, the 22,800 sqm manufacturing unit of Jiecang Linear Motion in Kaposvár (187 km southwest of the capital) and the 26,000 sqm manufacturing unit of Evoring Precision Manufacturing in Jászfényszaru (65 km east) will be supported by complete project management, including the preparation of the design, the management of the construction permit, the general contractor tender, technical control and the financial monitoring.
This article was first published in the Budapest Business Journal print issue of March 8, 2024.
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