By Gary J. Morrell
Regional logistics park developer and operator CTP currently has 100,000 sqm under construction in Hungary, most of which is already preleased, and plans to develop another 100,000-130,000 sqm in the country this year in both the greater Budapest area and the regions, the company says.
Of the 400,000 sqm of industrial take-up in Hungary last year, 150,000 sqm was at CTP developments according to the firm.
“The countryside is still an interesting location for CTP. We plan to commence development in prime countryside locations by busy motorways and large city junctions,” says Rudolf Nemes, country manager at CTP Hungary.
“We have development plots in Győr, Komárom, Kecskemét and Tatabánya with a total of more than 125,000 sqm. Despite the above, our planning focus remains on the Budapest proximity market. I see that demand for countryside locations will be dominated by the manufacturing and distribution sectors,” Nemes says.
CTP has completed a 30,000 facility at CTPark Budapest West. The company has also undertaken development of the 30,000 sqm B1A6 facility at CTPark Budapest West and a 37,000 sqm warehouse at CTPark Budapest East that is due to be completed in the third quarter. The 23,000 sqm DNHI building at CTPark Budapest South is due to be handed over this spring and a further 36,000 sqm building is planned.
“We have almost zero vacancy in the industrial sector, which means that there is huge demand. In order to satisfy this demand, we need to offer competitive rents but in order do this we need to somehow deal with the high construction prices while at the same time meeting tenants requirements. This is the challenge in Hungary,” Nemes admits.
Regional industrial developers and park operators are building sustainability accredited and more highly specified projects in reaction to changing tenant demands and environmental regulations.
CTP is now committed to developing BREEAM buildings and gaining BREEAM In-Use accreditation throughout its Central European logistics portfolio.
The company has achieved BREEAM In-Use “Excellent” sustainability certification for the B1A2 building at CTPark Budapest West. Currently, two buildings at CTPark Tatabánya and CTPark Budapest West, at Biatorbágy, have been accredited and new additions are in the pipeline. CTP plans to have all 300 facilities of its portfolio BREEAM In-Use certified by 2020.
“The certification process requires long-term effort and investment on our side as these certifications need to be renewed every year. Nevertheless, we believe that BREEAM In-Use is worth the effort. CTP Hungary is committed to energy efficient and sustainable operation, also to the benefit of its tenants,” Nemes explains.
The company currently has 5.5 million sqm of industrial space in around 90 locations in seven countries across the region and says it plans to double this figure.
CTP is now the largest owner of industrial and logistics space in Romania, where the company is developing a massive 167,000 sqm extension to CTPark Bucharest West, and has also extended its network to Serbia.
Industrial developers and park operators have, to date, been reluctant to enter the South Eastern Europe markets and therefore there is a very limited provision of modern, developer-led logistics/light industrial space.
The company has commenced construction of CTPark Belgrade North, described as the largest industrial park in Serbia. The complex, located on a 15-hectare site between Novi Sad and Belgrade, is planned to deliver three buildings totaling 70,000 sqm of class “A” industrial space.
The engine parts manufacturer, BMTS is set to move to a 24,000 sqm facility at CTPark Novi Sad, close to the Hungarian border. The facility will cater for production and R&D activities. CTP has further acquired a further development site close to Sofia in Bulgaria.