The CEE industrial developer and logistics park operator CTP has announced plans to build around 150,000 sqm of speculative industrial space in the Hungarian market in 2020 in response to what it describes as “brisk demand”.
To the southeast of Budapest at CTPark Budapest East-Üllő, CTP is developing a 37,300 sqm industrial building. At CTPark Budapest South in Dunaharaszti the company is planning a 36,700 sqm facility in addition to the 23,000 sqm building that is due to deliver in the near future. At CTPark Budapest West, in Biatorbágy, CTP is planning four new industrial development projects that will deliver a total 75,000 sqm of space.
Outside of the greater Budapest, the company also plans to develop a 5,300 sqm building at CTPark Arrabona in Győr.
“Last year’s successful acquisitions and our ambitious goals for 2020 speak for themselves,” comments Rudolf Nemes, country manager of CTP in Hungary. “These offer opportunities for us to pave the way for a fast and successful market expansion. Being an active developer in a leasers’ market with a very low vacancy rate, CTP wants to realize these industrial development projects as soon as possible,” Nemes adds.
Overall vacancy stands at a record low 2%, representing 43,000 sqm of vacant space, and there is no existing warehouse with an area of more than 5,000 sqm according to the Budapest Research Forum, consisting of CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary.
CTP has delivered more than 70,000 sqm of industrial space in Hungary this year bringing its portfolio to close to 500,000 sqm of space with an estimated asset value of EUR 300 million according to the company.
The company is committed to gaining BREEAM accreditation for its entire CEE industrial portfolio. “This is an on-going process and represents a balance between investment costs and the benefits of operational efficiency,” said CTP.
CTP has more than 5.5 million sqm of industrial space in around 100 locations across the Czech Republic, Hungary, Poland, Romania and Slovakia. The company is also the first regional commercial industrial/logistics park operator to extend its network to Serbia with projects in the Belgrade and Novi Sad areas.