In what is the largest industrial transaction in Hungary for over a year, Cushman & Wakefield Healey & Baker (C&W/H&B), which operates the European division of global real estate consultant Cushman & Wakefield, has carried out a site acquisition and managed a development tendering for Renault´s new spare parts distribution hub in Gyor.
Renault, a global corporate client of C&W/H&B, will establish a spare parts logistics warehouse in Gyor in Western Hungary to replace their current operation in Vienna. The site will act a distribution hub for Renault and Nissan vehicles and will service established European markets as well as emerging markets to the south and east of Hungary.
The first phase of the development will be 20,000 sqm, with potential expansion of up to 35,000 sqm.
Renault looked at three Central European locations before opting for Gyor, C&W/H&B identified a plot of fully serviced land within the Gyor Industrial Park and actively took part in negotiations regarding the land prices and lease terms. A 10-year lease was concluded with a break option at year 7 giving Renault the flexibility that they needed.
After acquiring the site for Renault, C&W/H&B then launched a tendering process in two rounds to select the developer. The tender was won by Elgan Kft., part of Dutch-based Ganel Real Estate. Ganel has already built a factory in France for Renault Trucks and also constructed Auchan´s warehouse in Hungary.
'It was important to involve a professional developer who would be able to deliver a high quality building to meet Renault´s specific logistics needs', said Ward Stocker Associate Partner and Head of Business Space at C&W/H&B in Budapest, who managed the whole transaction and tendering process on behalf of Renault.
The logistics centre will be operational in October 2004 supplying parts to several countries on the European continent.
'C&W/H&B will be spearheading new projects for Renault in Central & Eastern Europe', said Estelle Graur, Renault’s Real Estate Manager for Central and Eastern Europe.
Other high-profile acquisitions may follow, according to Ward Stocker. 'Renault´s choice of Gyor is likely to attract more automotive distribution and large corporates from other sectors looking to locate a regional hub in Hungary', he adds.
Central Europe has been identified as the main area for future expansion by distribution companies, according to European Distribution, a report by C&W/H&B released at the end of 2003. The report ranked Hungary as the 8th best country for a distribution centre in Europe. 'East-west transportation is improving and we expect the momentum will gather pace as EU accession approaches. With the emergence of the markets further south and further east, we expect Hungary´s position to improve even more', concluded Stocker.
Source: C&W H&B
