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New additions help close gap on warehouse market

Industrial

Image for illustration purposes only

With the Hungarian industrial and logistics market recording high demand for an increasingly limited supply of well-located, quality space, warehouse developments announced this week are at least contributing to the expansion of available space on the market.

Following its announcement two weeks ago of two new land acquisitions at strategic locations on the outskirts of Budapest, industrial property developer CTP confirmed Thursday it will spend EUR 60 million on warehouse developments at the two sites.

Rudolf Nemes, CTP country manager, told MTI the warehouses, planned in Biatorbágy and Dunaharaszti, are expected to create almost 2,000 jobs. 

CTP has total leasable area of 420,000 square meters in Hungary, with properties in Komárom, Győr, Szombathely, Székesfehérvár, Tatabánya and Kecskemét.

Also Thursday, BILK Logisztikai, which owns and operates a 182,000 sqm logistics park in the capital, announced it is building a HUF 500 million warehouse, the company told MTI. The 3,800 sqm warehouse is expected to be completed in the autumn. 

BILK Logisztikaiʼs revenue rose 1% to HUF 3.56 billion last year, public records show. After-tax profit climbed 84% to HUF 2.45 bln, lifted by financial profit.

Logistics center near City Park

Meanwhile, Hungaryʼs Directorate General for Public Procurement and Supply (KEF) inaugurated a HUF 5 bln logistics center in Budapest on Wednesday at a ceremony attended by Minister for National Economy Mihály Varga. 

The center, comprising more than 10,000 sqm of office and warehouse space, was built on the site of a former hospital near the City Park (Városliget). Including renovations and rehabilitation of the area, the costs of the development reached HUF 7 bln, said Ádám Demény, general director of KEF.   

KEF has also taken delivery of 70 electric vehicles and a number of charging stations, Demény added.

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