Wing Hands Over 2 Industrial Halls

Industrial

East Gate industrial park, by Wing.

The prolific Hungarian and regional developer Wing has completed the first two halls at its East Gate PRO Business Park. The construction of A1 and B1 halls, which have a total area of nearly 20,000 sqm, comes in response to the success of East Gate Business Park and Login Business Park, both owned by Wing, as well as growing industrial market demand, according to Wing.

East Gate PRO is in the town of Fót (24 km northeast of Budapest), at the junction of the M0 and M3 motorways, and a few minutes from Megyeri híd (bridge). The project specifications meet Breeam’s “Very Good” rating criteria; the high-quality heat insulation provides a minimum indoor temperature of 16°C.

“Eco-friendly, easy-to-clean building materials with no harmful components were used in the construction, and a special focus was put on energy-efficient solutions,” Wing said. “Technical specifications include an ESFR [Early Suppression, Fast Response] sprinkler system, smart meters, and a large car park with a license plate recognition access system and electric car chargers,” the developer explained.

The contractor of the development project was Weinberg ’93 ÉpítŇĎ, with financing provided by UniCredit Bank.

Some 75% of East Gate PRO’s available space was leased on completion, reflecting the high industrial market demand. Construction of the next phase of the business park has already started, with digging and foundation work for buildings A2 and B2 underway. The expected completion date is summer 2023, according to Wing.

Major Player

The developer and investor is a key industrial player in the northern part of the Greater Budapest area. It has now delivered 230,000 sqm of completed industrial halls, with an additional 60,000 sqm of development potential in East Gate, East Gate Pro, and Login Business Parks.

Its industrial property portfolio of nearly 300,000 sqm has an almost 100% occupancy rate with a development potential of a further 200,000 sqm. The group now provides customized and modern halls to significant companies, including Philip Morris, Phoenix Pharma, and Wizz Air, and provides fulfillment services for Webshippy.

The boom in the Hungarian industrial market is continuing. The total modern industrial stock had reached close to 4.5million sqm at the end of the third quarter, according to the Budapest Research Forum, consisting of CBRE, Colliers, Cushman & Wakefield, Eston International, JLL, and Robertson Hungary.

Total stock in the Greater Budapest area has surpassed three million sqm, while 1.4 million sqm is located in the rest of Hungary. In the third quarter, speculative industrial stock in Greater Budapest expanded by eight buildings with a total of 145,000 sqm; in the same period, a total of 33,000 sqm of space was delivered in the rest ofthecountry. In Greater Budapest, CTP has handed over 32,000 sqm at CTParkVecsés, while elsewhere, 13,000 sqm was delivered at InPark Gyula (225 km southeast of the capital).

The vacancy rate in the third quarter stood at close to 5% in Greater Budapest and 4.3% in the countryside. Take-up in Greater Budapest, excluding renewals, stood at 170,000 sqm, two and a half times higher than in the same period of 2021. New leases dominated demand with a 72% share.

This article was first published in the Budapest Business Journal print issue of November 18, 2022.

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