For CTP, Europe’s largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), and also Romania’s largest player on the industrial and logistics market, 2023 was a year of growth both in terms of quantity and quality.
2.6 million square meters of warehouses
CTP Romania ended 2023 with over 2.6 million square meters of industrial parks in more than 15 locations, covering Bucharest and regional cities such as Timișoara, Arad, Oradea, Sibiu, Deva, Brașov and many others. But for CTP, these are more than square meters: are growing communities.
”At CTP we don’t just build buildings, we build vibrant sustainable business ecosystems of the future for people: our clients, their employees, and the communities where we work and live. As a result, we accelerate local and regional economic development, contributing to overall socio-economic prosperity. Our business is bringing people together to get business done”, highlighted the CTP representatives. And the business is done full speed.
65,000 sq.m distribution center delivered in less than one year
In 2023, CTP started and delivered the construction of the first foreign Distribution Center for LPP, the CEE’s fastest growing fashion retailer. Located in CTPark Bucharest West, the 65,000 sq.m warehouse will strengthen the LPP’s distribution network in Southern Europe, consolidating CTPark Bucharest West as a regional distribution hub for its clients.
The designed automation solutions will enable LPP Logistics to operate 450 stores at the same time and ship up to 6 million pieces of assortment per week to the Romanian, Bulgarian, Hungarian, Croatian, Macedonian, Serbian or Greek markets. What is also remarkable is that the new facility will employ nearly 300 people of various specializations, CTPark Bucharest West being appreciated as the industrial park with the best quality of life in Romania.
”CTPark Bucharest West and all our major parks act as magnet for workforce, helping our clients to recruit and retain their people. For example, CTPark Bucharest West offers a high-quality working environment for its tenants and over 2,500 employees and, with facilities including a restaurant, coffee shop, medical services, leisure & entertainment areas, green space and bicycle paths, also serves as a community hub for neighbouring districts. A supermarket and sports ground will be soon added”, according to CTP.
Another important milestone was the delivery of a warehouse of almost 10,000 sq.m in the north of Bucharest for the online liquor retailer FineStore. FineStore’s newly leased warehouse at CTPark Bucharest North provides easy access to all major cities in the country, supporting FineStore’s ambitious expansion plans, and includes a generous parking lot exclusively for customers to personally collect products from the warehouse.
”With over 210,000 square meters, CTPark Bucharest North is the ideal option for clients which have a major e-commerce business component, as it is very well located on the northern belt of Bucharest, with good infrastructure and easy access to the city”, stated the CTP representatives.
In 2023, CTP remained the most dynamic player on the industrial and logistic sector in terms of new developments, but also in terms of acquisition, closing the largest deal in sector: the acquisition of the industrial portfolio of warehouses totaling over 100,000 sq.m in Romania from French FM Logistic, a leading supply chain services company operating across Europe.
The portfolio is comprised of three industrial parks located in the vicinity of CTP’s largest parks in Bucharest, Pitești and Timișoara and strengthens CTP’s footprint in these cities and on the Bucharest-Pitești highway axis, while FM Logistic continues as a CTP tenant for the long term.
New industrial park in Arad
In 2023, CTP has started and completed the structure of its latest production and logistics space in Western Romania: CTPark Arad West, located in Arad, an important industrial centre and transportation hub, close to both the Hungarian and Serbian borders.
The first phase of CTPark Arad West comprises approximately 44,000 sq.m and is already over 40% pre-leased to large production companies, being scheduled for completion in 2024. CTPark Arad West is planned to accommodate approximately 100,000 sq.m in multiple buildings of different types, both for medium and large companies. The project has Industrial Park Title, which puts it on the official map of strategic industrial parks in Romania and which provides a range of different benefits for its residents.
”CTPark Arad West has the signature CTP standard of excellent insulation for energy efficient operation, is provided with LED lighting control systems as well as landscaped green spaces and relaxation areas, and includes its own photovoltaic system, with panels to be installed on the roof. The park is a game changer for the industrial and logistic markets from Arad and Western Romania”, stated the CTP representatives.
Nearshoring hot spot
For 2024, CTP plans to expand its Romanian portfolio in Bucharest and major regional cities, having under-construction or planned important projects in Bucharest, Brașov, Oradea, Arad and Timișoara, all while focus on building a solid community.
”At most of our parks our strategy is to have additional land available earmarked for development, providing our tenants with the flexibility they need to expand. This has been welcomed by many of our multinational clients who are increasingly looking to nearshore the production of goods they are making for their clients in European markets. Romania and Central Eastern Europe (CEE) in general, with its proximity to Western European markets, are exceptionally well placed for multinationals nearshoring. Benefits such as strong manufacturing base, a wealth of skilled human capital, attractive labour costs and market connectivity make the region, including Romania, a nearshoring hot spot and this trend will continue in 2024”, concluded the CTP representatives.
