The construction of the new distribution center by CTP’s in-house construction team began in January 2023, before the LPP team commenced the stocking of the facility and the first start-up logistics operations at the beginning of December.
Andrei Bentea, Senior Business Developer at CTP Romania, says: “Our partnership with LPP illustrates CTP’s capabilities to host regional distribution centers in our major parks such as CTPark Bucharest West and swiftly adapt to our clients' specific needs. Our team’s expertise ensures a thorough analysis and precise implementation of technical details, guaranteeing an exceptional result delivered. This includes constructing a building that aligns with the latest and highest sustainability standards in less than one year.”
The designed automation solutions will enable LPP Logistics to operate 450 stores at the same time and ship up to 6 million pieces of assortment per week to the Romanian, Bulgarian, Hungarian, Croatian, Macedonian, Serbian or Greek markets.
Sebastian Soltys, the President of LPP Logistics, indicates: “The location of the distribution center in Southern Europe was determined by the so-called center of gravity in relation to the distance of the Group's network of stationary stores. At the end of the fourth quarter of the financial year 2023/24, the portfolio of LPP brands in this region will already include more than 500 stores, while the company intends to continue its expansion, among others in Romania or Greece, in the coming years. The logistical support of deliveries to such an expanded sales network is therefore crucial for the implementation of the Group's business strategy.”
The LPP warehouse is also intended to support deliveries to the Romanian Fulfillment Center and to act as a cross dock hub for part of the deliveries from Poland. Due to its strategic location, the warehouse offers a possibility to diversify maritime transport through the Black Sea port of Constanta, as well as provides excellent security for an alternative supply route to the Ukrainian market. Utilising the infrastructure of Romania’s largest port also allows the Group to receive orders directly from Asian suppliers.
The new facility will employ nearly 300 people of various specialisations, due to CTPark Bucharest West being appreciated as the industrial park with the best quality of life in Romania. LPP focuses not only on a modern and friendly workplace, but also on training the local team in logistics standards and good practice. Care has also been taken to provide commuting facilities – 2 bays are planned for public transport, with a possibility to launch bus lines dedicated to employees. Seven chargers for electric cars have also been prepared in the company car park.
The facility has been designed to take into account ISO14001 certification standards for construction and property management as well as sustainable building principles. The distribution center is currently in the process of BREEAM certification. The building will be equipped with renewable energy sources, with 10,000 square metres of photovoltaic panels of a total capacity of 2 MW installed on the roof. Around 30% of the power supplied from the photovoltaic installation will be directed to the energy needs of the LPP facility.
CTPark Bucharest West spans an area of approx. 830,000 sqm and includes the unique Clubhaus community centre, offering a high-quality working environment for its tenants and over 2,500 employees. Clubhaus offers facilities such as a restaurant, coffee shop, medical services, leisure & entertainment areas, green space and bicycle paths, serving as a community hub for neighbouring districts. A supermarket and sports ground are planned for future expansion phases while the bicycle paths will be extended.
CTP owns Class A warehouses with a total surface area of approximately 2.6 million square meters in multiple cities in Romania, including Arad, Brasov, Bucharest, Craiova, Oradea, Sibiu and Timisoara.
CTP is Europe’s largest listed owner, developer, and manager of logistics and industrial real estate by gross lettable area, owning 11.2 million sqm of GLA across 10 countries as of 30 September 2023. CTP certifies all new buildings to BREEAM Very good or better and earned a ‘Negligible-Risk’ ESG rating by Sustainalytics, underlining its commitment to being a sustainable business.
