These acquisitions are a result of CTP’s expansion plan, which will increase the value of assets owned by the group in Hungary from EUR 250 million to EUR 320 million by the end of 2018.
CTP announced its expansion plan for 2018 today in front of journalists and distinguished real estate agents at Hotel Aria’s High Note Skybar. During the presentation of the existing portfolio, CEO Remon Vos and the Hungarian Business Development Team introduced CTP’s future plans, backed up by current market trends and CTP’s historical growth rate.
The first plot of land is located in Biatorbágy, where CTP already owns 165,000 m2 of space. The second land plot is close to Dunaharaszti, and it is CTP’s first venture into this area, which is well-known thanks to several industrial properties. It is CTP’s second location in the southeast area of Budapest, where the company currently owns 100,000 m2 of industrial space in Üllő and, with this new acquisition, now has potential for expansion of up to 150,000 m2. Due to the very low 4% vacancy on the market, CTP’s plans for the land are great news for e-commerce and logistics players planning to extend their activities in this area around Budapest.
“This year, we will continue with our expansion activities. New acquisitions in locations with great potential are the first step, followed by a significant investment of approx. EUR 60 million into these new CTParks. On the road to success, we will use our in-house specialists—dedicated, talented, and experienced people—and this team of 18 employees will be supported by local suppliers and construction companies. These projects will create a variety of jobs, both direct and indirect, and we estimate that the number of new jobs can exceed 2000,” said Rudolf Nemes, Country Manager.
Construction in both locations will begin in the second quarter of 2018, and CTP has plans to finish them in the first quarter of 2019. With these new constructions, asset value is estimated to reach almost EUR 320 million. As a long-term investor and owner of the CTPark Network, CTP will remain responsible for A-class logistics space, including all property management activities. All new buildings will be built according to CTP standards: ESFR sprinklers, intelligent HVAC, modern CCTV, spacious grid of 12x24 metres with a 10.5 metres clear height, and LED lightning, all of which provide a competitive advantage to our tenants. CTP also offers built-to-suit solutions, which have proven to be successful over the last 20 years of experience on the CEE market.