Leading European logistics developer and operator CTP will invest €300 mln apiece in Germany and Poland as it plans to double its portfolio to 20 million m2 by 2030.
The move, comprising a total investment of €600 mln, forms part of CTP’s wider strategy to double the size of its pan-European network of business parks by the end of the decade.
The Euronext-listed developer, operator and owner has a current portfolio of 10.9 million m2 as at end of Q1 2023 and a development landbank of 20.7 million m2 as at end of Q1 2023 across its markets.
It aims to almost double the total GLA of industrial and logistics space in its portfolio with new developments through to 2030, generating annual rental income of €1 bn across a 20 million m2 portfolio.
Remon Vos, CEO of CTP, said: 'CTP sees huge potential for further growth in the industrial and logistics markets in Germany and Poland, as a combination of strong economic fundamentals, emerging global mega trends, such as the rise in nearshoring, growth in e-commerce, as well as key real estate market dynamics are continuing to drive demand for best-in-class sustainable warehouses in central and eastern Europe, as well as Germany.
'Having established a strong platform in both countries we now intend to grow our presence in these markets with a total of €600 million investment focused on increasing our portfolio the highly sustainable, client-focused industrial and logistics space that modern occupiers demand.'
CTP entered the German market in 2022 through the circa €800 mln takeover and delisting of Deutsche Industrie REIT (DIR), which had a 1.6 million m2 GLA portfolio on 3.9 million m2 of land.
CTP now has a team of 50 across three offices in Germany and 28,000 m2 of industrial and logistics space under development in Bremen, with a 208,000 m2 landbank. The €300 mln investment programme is split between new build and acquisitions, with CTP looking to develop over 300,000 m2 of new space each year through to 2030.
CTP has secured two new sites in Germany in Q1 2023: the 80,000 m2 CTPark Weiden, with 44,000 sqm GLA increasing to 60,000 m2 following a sustainable refurbishment and uprgrade; and CTPark Rastatt, comprising 60,000 m2 of land, which has the potential for the development of 33,000 m2 GLA of Grade A warehouse space.
In Poland, CTP currently has a 274,000 m1 GLA portfolio as at the end of Q1 2023 and a 2.3 million m2 landbank, with around 453,000 m2 of space under construction as at the end of Q1 2023.
CTP plans to increase its portfolio by over 600,000 m2 in 2023, as part of an initial pipeline of 11 strategically located sites comprising over 1 million m2 of space, all with direct access to expressways or highways.
The €300 mln investment in Poland will be financed with an unsecured loan agreed in May 2023 and will be focused on increasing CTP’s development pipeline as well as acquisitions beyond 2024.
In line with CTP’s wider approach to sustainability, it plans install photovoltaic power cells, capable of generating a total of up to 50MWp across its assets in Poland by 2025. As part of its expansion CTP will be growing its 70-strong team in Poland.
CTP said it was seeing continued strong demand for industrial and logistics space across Central and Eastern Europe, as well as in its Western European markets in Germany, Austria and the Netherlands.
