Currently, the vacancy rate of the spaces ready to be leased is under 3%. In the first three quarters of 2017, new leasing agreements were signed with strategic clients in 7 parks owned by CTP near Bucharest and other strategic locations in Romania. Some of the deals are with new tenants and other agreements are with existing clients that expanded their spaces to accommodate the needs of their growing businesses.
2017 also marked important investments in the construction of new buildings and acquiring of new industrial parks near the capital and throughout the country. These investments strengthened CTP’s position as the largest developer and administrator of class A logistics and industrial spaces in the country:
• In CTPark Bucharest West began the construction works for two buildings comprising 100,000 m2 and scheduled for delivery in Q1 and Q2 2018;
• In Timisoara, CTP started the development of CTPark Timisoara II, an extension of 32,000 m2 of CTPark Timisoara that will be finalized in December 2017;
• The company acquired two logistics parks with a cumulated GLA of 37,000 m2 in the west side of country, near the cities of Ineu and Salonta;
• In Cluj, CTP bought land in order to start the construction of CTPark Cluj II that will comprise 29,000 GLA and will be finalized in two phases nest year;
• CTP invested in the acquisition of approximately 21,000 m2 - the Phoenix project - part of CTPark Bucharest West and located on Bucharest’s ring road;
• The most recent addition to the portfolio was Chitila Logistic Park (CLP), a 45,000 m2 GLA property situated in the vicinity of Bucharest. CLP also has 48,000 m² surplus land for further developments.
“2017 was our best year so far. The stock of logistics and industrial spaces grew and exceeded 700,000 m2 and we invested according to plan in CTPark Bucharest West which is designed to become the largest logistics park in Eastern Europe. We continued to invest and acquire land and properties in key areas of Romania. In the future we will maintain our development’s rapid pace according to the needs of our current clients, but we plan to begin some speculative constructions too”, stated Ana Dumitrache, Co-Country Head of CTP Romania.
In 2017 CTP concluded financial agreements totalling approximately 117 million euro with EBRD (European Bank of Reconstruction and Development), BCR, Banca Transilvania, Alpha Bank, Bancpost. CTP’s loan-to-value (LTV) ratio is 65%. LTV is a lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage and is calculated as the amount of the mortgage lien divided by the appraised value of the property, expressed as a percentage.
CTP’s plans for 2018 include the development of circa 200,000 m2 in CTPark Bucharest West and 290,000 m2 in different cities of Romania, such as: Pitești, Cluj, Turda, Chitila.
