CTP closes two new deals in Bulgaria, accelerates expansion
Acquistions in Sofia and Plovdiv: CTP on track for 2023 growth target in Bulgaria
Sofia, 8 September 2021 – CTP is pleased to announce that it has recently finalised two strategic acquistions in Bulgaria as part of our two-year, EUR 300 million expansion plan to further grow our presence in the country.
Earlier in August CTP, acquired an 11,500 m2 production facility in Plovdiv from leading German Tier-1 automotive supplier Willie Elbe. The deal involved an innovative sale-and-leaseback structure and marks our first step toward developing the CTPark Network outside the capital, Sofia.
At the end of August, CTP acquired a new-built, state-of-the-art 31,200 m2 warehouse together with a 4,000 m2 office building on Sofia’s ring road. Both buildings are leased long-term to Orbico, a major 3PL operator in the region.
In 2020 CTP purchased a 14,461 m2 warehouse next to Sofia International Airport, leased to one of our key clients, DSV. Construction of a 15,000 m2 expansion for DSV starts in October.
Currently CTP has a land bank of 470,000 m2 in Bulgaria at three locations in Sofia, with the potential to build 225,000 m2 of GLA. We plan further land acquistions in other major cities across the country.
Bulgaria Key Facts:
Bulgaria has a population of seven million people. The country has been an EU Member since 2007 and a NATO Member since 2004. In 2020 GDP was USD 67.859 billion (USD 9,764 per capita) and the 2021 projection is for 4.6% annual growth. Bulgaria continuously has one of the lowest public debts in the EU, currently at 20.4% of GDP. The unemployment rate is 5.6% and annual inflation is projected at 1.9%.
Bulgaria has a Currency Board and its currency, the Bulgarian lev, is pegged to the euro with a fixed exchange rate. In 2020, Bulgaria joined the waiting room for the eurozone, the EU’s Exchange Rate Mechanism (ERM-II) and the European Banking Union (World Bank).
Bulgaria has one of the lowest costs of doing business, with a 10% flat corporate income tax and the lowest cost of labor in the EU, combined with an educated and skilled labor pool. Bulgaria regularly ranks among the top-20 locations in the world for business process outsourcing (BPO) and production.
The Sofia Metro Area Population is 1.7 million people. More than 40% of Bulgaria’s GDP is produced in Sofia and about 50% of all FDI is concentrated in the Sofia region. 23 of all 51 accredited universities in the country are in Sofia.
Sofia ranks fourth in cost effectiveness and ninth in business friendliness among large cities worldwide according to FDI Intelligence Global Cities of the Future ranking.
CTP is a top-five European industrial property developer and the largest in CEE, with over 6.6 million m² of logistics space and operations in nine countries. The company is on target to expand its portfolio to 10 million m² by year-end 2023. With its entire portfolio BREEAM certified, CTP claims the position of the most sustainable developer in the region and is on track to reach carbon neutrality this year. At the end of March 2021 CTP listed on the Euronext Amsterdam stock exchange.