DB Schenker Romtrans, one of Romania's leaders in transport and logistics services, leases 5,200 m² warehouse space in Phoenix Logistics Center through Jones Lang LaSalle. The company is part of the giant DB Schenker, one of the world's logistics and transportation providers.
Phoenix Logistics Center is owned by Aviva Investors who acquired the property in 2004. The warehouse is located in Bucharest' most developed logistics area- the intersection between A1 highway and the Western ring road and provides total logistics facilities of 22,000 m² including offices. A1 highway is the Pan European Corridor IV linking the major Black Sea port of Constanta to Hungary and Serbia via Bucharest. Aviva Investors has a portfolio of 200,000 m² in Eastern Europe including assets in Poland, Czech Republic, Hungary etc.
Other notable occupiers in the close vicinities include Lidl Distribution Center, Otter Logistics, Avon and Pepsi Americas, Carrefour hypermarket, Militari Shopping Center (Praktiker, Domo), ACT Cold Storage, Peugeot, Volvo etc.
Irina Iliescu states, "DB Schenker Romtrans needed to expand their operations in serving the local retailers and they chose Phoenix Logistics center due to the proximity to its existing logistics facilities in Chitila. Another reason for selecting this property was the fact that the construction met their international technical requirements. What is particular about this location is the fact that it reduces overall transport costs and travel time for logistics operators and subsequently- to retailers, by its proximity to Bucharest' center and the fully serviced infrastructure."
The industrial and logistics department of Jones Lang LaSalle successfully concluded 10 transactions in 2011, totaling 76,000 m² and with international occupiers such as The Toro Company, Nestle, Procter & Gamble, Heineken, Honeywell, Interpart Romania and Automotive Wiring Systems.
In respect of the Logistics market for 2012, Irina Iliescu says, "The new logistics developments will continue to be custom-built, very little speculative development in Bucharest area and at country level, due to lack of financing. Several new developers are expected to commence build-to-suit projects in Bucharest, Timisoara, Pitesti and Ploiesti. We expect the headline rent levels for Bucharest market to remain stable with a soft decreasing trend in H2 2012, in the 3.54.15 range, with a vacancy rate dropping to 11-12% at Bucharest level. We believe that the occupiers will become more selective regarding their logistics locations, due to the infrastructure issues."
DB Schenker has acquired the biggest Romanian operator Romtrans back in 2008, belonging to a corporation that has over 91,000 employees in more than 130 locations over the world.
Source: JLL
