CTP GROUP LOOKS TO DOUBLE IN SIZE BY 2030 AS STRONG FUNDAMENTALS POWER GROWTH OF INDUSTRIAL AND LOGISTICS IN CENTRAL AND EASTERN EUROPE

CTP GROUP LOOKS TO DOUBLE IN SIZE BY 2030 AS STRONG FUNDAMENTALS POWER GROWTH OF INDUSTRIAL AND LOGISTICS IN CENTRAL AND EASTERN EUROPE

Leading European industrial and logistics developer, owner and operator targets 20 million sqm portfolio by end of decade as research identifies five key drivers of growth in CEE

CTP Group is aiming to double the size of its pan-European network of business parks to 20 million sqm of GLA by the end of the decade, amid forecasts of continued strong demand for industrial and logistics space across Central and Eastern Europe.

CTP’s growth target supported by new research that shows demand for industrial and logistics real estate space in its Central and Eastern European markets will outperform Western and Southern Europe, as a powerful combination of five factors drives continued growth in the sector.

CTP is Europe’s largest listed developer, owner and operator of industrial and logistics properties by GLA, with a current portfolio of 10.5 million sqm. It has assembled a development landbank of 20 million sqm across its core CEE markets, as well as in Germany, Austria and the Netherlands, where it aims to develop a further 10 million sqm of logistics space through to 2030, generating annual rental income of €1 billion across a 20 million sqm portfolio.

CTP is seeing strong demand for its development pipeline in new locations, alongside expansions at its longstanding CTParks, from existing and new tenants across CTP’s CEE markets, which covers the Czech Republic, Slovakia, Romania, Hungary, Poland, Serbia and Bulgaria, and Western EU markets in Germany, Austria and the Netherlands.

The demand is being driven by a combination of factors, such as the rise of ‘nearshoring’ and ‘friendshoring’; improved infrastructure, a diverse and expanding economy; the accelerating growth in e-commerce from a low base; as well as skilled workforce and strong labour market fundamentals. 

CTP’s new research report ‘CEE: A Business-Smart Region’ analyses these diverse factors to identify five key drivers of growth, which will support continued outperformance in demand for industrial and logistics space in CEE to the end of the decade. These are:

  1. Skilled human capital
  2. Connected markets
  3. Diversifying and expanding economies
  4. Rising domestic consumption
  5. Strong real estate fundamentals

Remon Vos, CEO of CTP, said: “CTP has long been a believer in the potential of CEE and there is no doubt that a combination of strong economic fundamentals, emerging global mega trends – such as the rise in nearshoring – and key real estate market dynamics, mean the CEE region will continue to outperform Europe’s more developed markets, driving further demand for logistics and industrial space. CTP is perfectly placed to meet this demand, with a significant development landbank across the region that will enable us to double our GLA by the end of the decade, developing and operating the highly sustainable, client-focused industrial and logistics space that modern occupiers demand.”