CTP has unveiled plans to invest €600m in the coming years to grow its warehouse portfolio in Germany and Poland. The move, which will see €300m invested in each country, 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 €1bn across a 20 million m² portfolio.
CTP entered the German market in 2022 through the circa €800m takeover and delisting of Deutsche Industrie REIT-AG (“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 sqm of industrial and logistics space under development in Bremen, with a 208,000m² landbank. The €300m investment programme is split between new build and acquisitions, with CTP looking to develop over 300,000m² of new space each year through to 2030.
CTP has secured two new sites in Germany in Q1 2023: the 80,000m² CTPark Weiden, with 44,000m² GLA increasing to 60,000m² following a sustainable refurbishment and uprgrade; and CTPark Rastatt, comprising 60,000m² of land, which has the potential for the development of 33,000m² GLA of Grade A warehouse space.
In Poland, CTP currently has a 274,000m² GLA portfolio as at the end of Q1 2023 and a 2.3 million m² landbank, with around 453,000m² of space under construction as at the end of Q1 2023. CTP plans to increase its portfolio by over 600,000m² 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 €300m 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.
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 €600m investment focused on increasing our portfolio the highly sustainable, client-focused industrial and logistics space that modern occupiers demand."
