CTPark Network in Hungary is Rapidly Expanding
CTP entered the Hungarian market only a few years ago and has, through both strategic acquisitions and rapidly building new space, become 2nd on the market, with approximately 18% market share. CTP currently has 10 industrial parks, with expected total lettable area to reach 515,000 m² by year end, including current projects under construction, and over 250,000 m² of future development potential. In 2018, we plan to grow the portfolio by 115,000 m²—80% of which is new development—and continue to grow the portfolio by 100,000 m²/year in the coming years. In July, we completed the acquisition of a new 6 ha site only 600 metres away from the Mercedes Benz production facility in Kecskemét. The new location will be ideal for OEM suppliers as well as JIT logistic operators. This follows our announcement in April of two new land acquisitions on the outskirts of Budapest. CTP will spend EUR 60 million on warehouse developments at the two sites, and the planned developments are likely to create almost 2,000 jobs.
CTP’s strategy has been to focus in the North east part of the country—on the Budapest market, and on the main corridor connecting the capital city to points west. These regions are the most developed in the country, and are home to 8 of the country’s 17 universities. In late 2017 and in July 2018 we acquired sites at strategic locations south of the capital as part of our growth plan. As the country continues to grow along with other CEE countries, the government is putting in place programmes to attract foreign investors. New investment incentives are helping support high-technology investments, the corporate income tax is one of the most competitive in the EU at a 9% flat rate; and it has put in place a new development plan based on industry 4.0 requirements. This, in combination with its strong tradition in pharma, manufacturing and ICT services, is the basis for strong growth potential, especially in high value-add industries such as high-tech manufacturing, R&D and many more.