New developments in Hungary and 2018 outlook
In the logistics sector, there is a continually increasing demand for modern industrial space in strategic locations. Thanks to the ongoing influx of FDI into production facilities there is no lack of demand from suppliers who require leasable space.
To keep up with customers demand CTP is on schedule to deliver 500,000 m2 of lettable area in Hungary before year-end with multiple projects. Our recent acquisition of CTPark Szekesfehervar is in line to be fully let by Q3 2018. Our existing buildings around the Budapest highway ringroad (CTPark Budapest West, CTPark Budapest East) are fully leased, and despite some upcoming vacancies in Q3 2018, we are confident there will be no realized vacancies.
Similarly to neighboring countries, Hungary is facing challenges with maintaining a sufficient labor pool, which is leading to companies gravitating towards modern and innovative building and operational technology. At CTP, we are keeping pace with such demand and aim to work with our tenants to overcome the hurdles they face. The CTP Shuttle Buses to be introduced shortly in multiple Hungarian locations is just one example of CTP adapting to the times ahead.
At CTPark Budapest East we have approximately 9.000 m2 of modern frozen warehouse space becoming available in Q3 2018. At CTPark Komarom we offer a high-quality modern production facility with a dedicated logistics building and ample room to accommodate special requirements of any new tenant. CTPark Mor offers 15.000 m2 of production and logistics space in an established industrial park with a good catchment area of trained laborers. New additions to the portfolio include two brand new modern logistics buildings of approximately 24.000 m2 each under development in CTPark Budapest West and CTPark Budapest South, both with unparalleled visibility and access to the M0 highway around Budapest, with handover expected in Q1 of 2019.