The 93,000 m2 Logistics Park Cefin Arad was officially added to CTP’s expanding Romanian portfolio, under the name CTPark Arad. CTP, Europe’s 4th largest industrial developer, continues to look at new opportunities outside of its home-market the Czech Republic, and Romania is considered the next key market for the global expansion of CTP’s award-winning CTPark Network.
The new CTPark Arad will offer the company’s signature A-class premium property, and units available from 1,000 m2 with the possibility of greenfield expansion. The park is especially suitable for manufacturing and logistics companies, particularly those looking to take advantage of CTP’s full-service plug & play solutions. Current tenants of the park include Gebrueder Weiss, DB Schenker and Gefco.
The park sits on the southwestern outskirts of Arad, 30km from Timisoara, Romania’s third largest city. The Arad-Timisoara agglomeration is favoured by investors involved in manufacturing and logistics thanks to its ideal location in the West of Romania on major transport routes linking central and southeastern Europe. Further industry growth is also supported by attractive labour costs, a skilled workforce and supportive local government. The Arad-Timisoara agglomeration is home to a cluster of foreign investors including Continental, Flextronics, Procter & Gamble, Linde Group, Draxlmaier Group and FM Logistic.
Remon Vos, CTP CEO states: “Romania is an important growth market for CTP, and we believe that the time is right to expand the CTPark Network into the region. More than 37,000 people are employed in our parks in the Czech Republic alone, so CTP’s Romanian entry can be seen as a key driver for lowering unemployment rate in the cities and regions in which we locate our parks. 400 international companies call the CTPark Network home and I know that many of these companies are actively looking for opportunities in Romania.”
Arad is the most important trans-European road and rail transportation junction point in western Romania, included in the 4th Pan-European Corridor linking Western Europe to South-Eastern European and Middle Eastern countries. The city has an extensive light rail network (second only to the country capital of Bucharest) and several bus lines covering most of the city's neighbourhoods and suburbs. Arad International Airport, with the largest and most modern cargo terminal in western Romania, is situated only 4 km west from downtown Arad and is directly connected to the Arad west bypass road, part of the A1 Motorway
CTP continues to expand in Romania. The developer recently completed handover of a 4,000 m2 property for existing client, Fränkische, in CTPark Turda.
CTP hands over a 4,000 m² unit in CTPark Turda to long-term client, Fränkische, on April 1st 2015. Investments into CTPark Turda exceed EUR 5 million, including construction of new infrastructure and also completion of phase I of the Fränkische service centre. Construction on the unit began in Autumn 2014 and continued over the winter months.
CTPark Turda is strategically located on the A3 motorway (operational) and the A10 motorway (currently in construction), in the centre of Romania. The park is close by the city of Cluj (home to a large technical university), and an international airport.
CTPark Turda covers an area of approx. 25 hectares of zoned land with permits and infrastructure. CTP is in an advanced stage of negotiations with further interested parties.
Fränkische, a major producer of plastic piping for the automotive and white goods industries, currently utilises a 19,000 m2 custom-built facility at CTPark Okříšky in the Czech Republic. Fränkische joined the CTPark Network (CZ) in 2007 and in 2013 expanded operations with a 7,290 m2 custom-built extension
CTP and new financial partner pbb Deutsche Pfandbriefbank, executed a EUR 132 Million financing for the premium property, CTPark Bor, at MIPIM 2015. The deal includes a portfolio of existing buildings, as well as a line of financing for extension of the park in the future.
Charles Balch, Head of Real Estate Finance International, UK & CEE at pbb, added: “pbb is very pleased to start a lending relationship with CTP, the major player on the Czech logistics and industrial market. The logistics market in the Czech Republic remains strong.”
CTP also announced that it has signed a EUR 30 million financing deal with long-term financial partner Société Générale & KB group for the BREEAM Excellent rated building A3.2 in CTPark Brno.
“CTP is delighted to have reached an agreement with our long-term financial partner, SOCIÉTÉ GÉNÉRALE & KB GROUP, on the financing of one of our key R&D campus buildings in the CTPark Network. We appreciate working with SOCIÉTÉ GÉNÉRALE & KB GROUP, with whom we have cooperated for many years already,” stated Radek Zeman, CTP CFO
CTP gets off to a strong start in 2015. In Q1 of this year, CTP commenced construction on a secured pipeline of approximately 300,000 m2 of A-class industrial property, 70% of which will be delivered by July 2015. CTP has upwardly revised its business plan to achieve 5 million m2 of Total Lettable Area by 2020 ahead of additional expected growth.
Growth was not only confined to CTP’s home market, the Czech Republic. CTP added nine business parks to its region-wide CTPark Network in 2014 and further construction projects are currently underway in two central European countries scheduled for completion in 2015.
Preliminary 2014 financial results are expected to show over 12% growth in gross rental income to approximately EUR 135 million. Last year, CTP signed new loan agreements totalling EUR 717 million. This represents financing agreements for approximately 63% of the company’s portfolio, one-third of which was concluded in Q4 alone. In 2015, CTP has already signed loan agreements totalling EUR 140 million. An additional EUR 220 million is expected to be agreed in Q2.
“CTP’s growth is driven by the industrial sector. Our industrial clients continue to bring more activities to central Europe, and also strong performance in the e-commerce industry is a factor. CEE markets like the Czech Republic are proven staging grounds for significant, added-value investments in core industries such as automotive, high-tech manufacturing, logistics, and cutting-edge R&D. CTP got off to a great start in 2015, and we are well on target to reach our business goals,” stated Remon Vos, CTP CEO
“Looking to 2015, we maintain a positive outlook regarding further yield compression, which we expect will increase the value of our properties by 5% to 8%. We expect gross rental income in 2015 to reach EUR 150 million,” stated Radek Zeman, CTP CFO
Danish producer of metal furniture, Blika, will open a new factory in CTPark Kadaň. The company has leased 7,700 m2 in the park. Production will begin in the summer of 2015. Blika will employ up to 50 people in the first stage. An additional 17,000 m2 is still available for rent.
"We are delighted to work with Blika on the development of a 7,700 m2 facility in CTPark Kadaň,” says Remon Vos, CTP CEO.
CTPark Kadaň is located about 30 minutes’ drive from the German border near the industrial city of Chomutov. Total rentable area is 17,000 m2, with 7,000 m2 now available for lease.
CTP is preparing a 10,200 m2 expansion for Japanese logistics group, MOL, at CTPark Plzeň. The company currently leases 7,160 m2 in the same park. On completion of the new building, scheduled for August 2015, MOL will transfer operations into the larger facility.
“At CTP, we believe in offering our clients the flexibility to grow and expand their business. I am happy that MOL has decided to expand their footprint at CTPark Plzeň,” says Remon Vos, CTP CEO.
CTPark Plzeň is strategically located near Plzeň’s city centre, with on-site public transport and easy access to the E50/D5 motorway to Germany / Prague.
Automotive Lighting, a leader in the production of external lighting systems for the automotive industry, will move in at CTPark Jihlava. CTPark Plzeň welcomes ILC, who manufactures and sells control systems for lighting. NÜSSLI, a leading provider of temporary and modular structures, renewed their lease at CTPark Prague North.
CTPark Jihlava covers more than 54,000 m2 and has reached maximum build capacity. Among its current tenants include Oerlikon, HEATEX, Sumitomo, WLS, Jipocar and Kwesto. New tenant Automotive Lighting recently signed for a total of 5,500 m2, which leaves available only 1,755 m2 in the park.
ILC is to move into a 450 m2CTBox facility at CTPark Plzeň which comprises 320,000 m2 and whose tenants include companies such as MD Electronik, Sumisho Global Logistics, PPL, ASTEELFLASH and many others.
"Another great success is the contract extension of 6,172 m2 with NÜSSLI at CTPark Prague North. This park was added recently to our network of premium business parks, and in the future, we see great business potential at this location," said Remon Vos, CEO of CTP.
CTPark Přeštice is located directly 15 km south of Plzeň on the E 53 highway in an area with a long tradition of engineering excellence, high level of university-qualified workforce, and superior highway access to the German border. The location is ideal as a distribution centre or for manufacturing and comprises 26,700 m2 of rentable area, with 17,000 m2 currently under construction for global automotive industry leader IAC (International Automotive Components).
CTPark Uherské Hradiště, just south east of Brno sits 30 km from the Slovak border on the E50 main artery connecting Brno and Trenčín, offers total rentable area of 58,500 m2 in three properties, with 20,000 m2 already under construction. The park offers excellent location for cross-border logistics and is only 5 km from the Kunovice airport
"The two new park locations were chosen due to customer demand for locations with strong industrial traditions and cross-border connectivity. As well, the expansion of our CTPark Network provides our clients with greater choice, and aligns with our company growth plans," stated Jaroslav Kaizr, Director of Business Development at CTP.
We are happy to welcome two new tenants to CTPark Divišov, Lidl and Cross Trans, who together have signed for 14,827 m2 of CTSpace units. In addition, we are pleased to have agreed with one of our current clients, Bakker, a major supplier of fruit & vegetables, an extension of up to approx. 8,800 m2. With the 35,350 m2 facility now fully leased thanks to these clients and to our long-term client, logistics major Norbert Dentressangle, CTPark Divišov has adjacent land for later expansion of approx. 4,125 m2. In addition to property improvements carried out during the last year of the facades and surrounding greenery, CTP has included LED lighting in the newly leased premises as part of our ongoing efforts to lower the environmental impact of our and our client's operations while also lowering overall operational costs. CTPark Divišov is located less than an hour from Prague on the D1 highway connecting Vienna—Brno—Prague providing an excellent location for cold-storage logistics to the Prague and central Czech regions.