European logistics property owner-developer CTP has announced plans to raise up to €1 bn through a public listing of its shares on the Euronext Amsterdam stock exchange.
In a statement CTP – the largest logistics property owner-developer in CEE based on gross lettable area – said the move is aimed at accelerating its growth strategy and will be used to finance the group’s development projects and construction activities, selective property acquisitions and debt repayment.
The offer will be made to institutional investors and is expected to comprise a primary offering of newly issued shares raising between €800 mln and €1 bn of gross proceeds and an over-allotment option of secondary shares. The offer is expected to take place in the coming weeks, subject to market conditions and other relevant considerations.
‘When I founded CTP, I was excited about the entrepreneurial spirit and ambitious atmosphere in the CEE region. We started our first project just outside of Prague and are now, twenty-two years later, the largest logistics owner and developer in the CEE region,’ said Remon Vos, founder and CEO of CTP. ‘The region benefits greatly from favourable macro trends driving structural growth. The outlook for logistics property globally is highly attractive, with multiple positive drivers accelerated by Covid-19. The surge in e-commerce penetration is driving a long-term step-change in the demand for logistics services and space. We outgrew the market share in the region significantly and opened in new markets.’
‘After 22-years of private ownership, we are now ready for the next phase in our development. We believe our combination of scale, experience and strong growth perspectives make CTP a compelling investment opportunity. We have a strong platform set for continued growth in Europe, and we are set to deliver continued sustainable growth, operating in the most attractive real estate sub segment. By listing on Euronext Amsterdam, we can build on the strong momentum we generated to date as we continue to expand, offering us access to a wider range of capital-raising options.’
Following a strategic shift in the group's funding strategy last year, CTP entered the international bond markets with the issue of its debut green bond of €650 mln in October 2020, followed by two additional green bonds at attractive terms taking the total issuances to more than €1.5 bn to date. Having successfully accessed the investment grade debt markets, CTP is now planning to access the equity capital markets in order to fund further growth.
Richard Wilkinson, CFO of CTP added: ‘In 2020, we made significant progress: we saw further growth in terms of size of portfolio, rental income and profit. We increased our market share in the region significantly and enlarged our footprint in Central and Eastern Europe with our expansion to Bulgaria and Austria. To realize our ambitious growth targets we have strengthened our organization, expanded our staff and optimized our corporate structure. On top of that, we were recognized by the international capital markets: we successfully obtained two investment grade ratings and our bonds have performed greatly since issuance.’
CTP currently has 1 million m2 under development, 62% of which is already pre-let. The firm is targeting above 10 million m2 of GLA by 2023.
