Pan-European logistics specialist CTP has revealed plans to double the size of its industrial portfolio in Germany through its recently acquired German arm, Deutsche Industrie Grundbesitz (DIG).
DIG has initiated an investment programme with a target to double its total rental space in the German market to 3.4 million m2 by 2026, from around 1.7 million m2 currently, with the refurbishment and expansion of its production and logistics site in the northwestern city of Bremen.
DIG has also made four appointments to its senior management team to drive the company’s growth.
DIG was acquired as Deutsche Industrie REIT by CTP earlier this year with a portfolio of 90 mainly ‘last mile’ logistics properties located in key industrial and transport zones across Germany.
The acquisition made Germany CTP’s third largest market, with about 15% of the company’s total gross asset value, after the Czech Republic (c. 40%) and Romania (c.20%).
Remon Vos, CEO of CTP and DIG, said: 'Just five months after the completion of CTP’s acquisition of the formerly named DIR portfolio in Germany, we are well underway in Bremen with our first project under our ambitious investment programme to significantly grow our footprint in the German market over the next five years.
'This project is a prime example for our strategy in Germany. Through enhanced densification and modernisation, we are unlocking the inherent potential of an existing site, substantially improving the quality and sustainability credentials of the property and in turn generating significant added value for our clients, investors as well as our broader stakeholders.'
The Bremen plan will see the redevelopment of a major site at the intersection of the A1 and A27 highways to the southeast of the city. It is set to provide over 35,000 m2 GLA of logistics and office space.
During the refurbishment, an existing office building comprising 2,700 m2 of office space will be modernised. In addition, a new logistics building with a gross floor area of over 32,000 m2 is being built, including 1,200 m2 of offices and a mezzanine floor with 2,700 m2.
The big box property is designed as a flexible building, providing for subdivision into smaller units where required. In keeping with CTP sustainability standards, the revitalised property will receive the BREEAM certification “very good” or above. The roof areas of the buildings will be suitable for the installation of photovoltaic systems.
Management appointments
In terms of the new senior management team, Krzysztof Wawrzyniak has been appointed as construction & development director Germany. His previous employers include Berlinovo Grundstücksentwicklungs, Zalando and Messe Berlin.
Fabian Kempchen has been appointed as DIG’S regional development director north, with responsibility for asset and property management throughout northern Germany. He was previously responsible for managing the same portfolio as asset management team leader at Berlin-based real estate firm Elgeti Brothers and so is already very familiar with the DIG assets.
Florian Jobski joins DIG as business development & leasing manager. He has over 14 years of professional experience in real estate management and already managed DIG’s portfolio in northern Germany as an asset manager at Elgeti Brothers.
Timo Hielscher has assumed the role of regional development director for asset and portfolio management in Western Germany for DIG. He was formerly responsible for the acquisition and development of commercial real estate at Aurelis Real Estate Service. Prior to that, he worked as an asset manager for Corpus Sireo Asset Management Residential.
Added Vos: 'I’m also very pleased we’ve now put the core German management team into place, who will lead the implementation of our strategy to deliver a doubling of DIG’s current GLA over the next four years.
'Germany will play an important role in delivering our current and potential clients with access to a pan-European network of industrial and logistics assets that spans Europe from the Black sea to the North Sea.'
