In the beginning of December 2015, the Czech company CTP completed the acquisition of Bucharest West Industrial Park from Portland Trust, a project for it has paid EUR 80 million.
"Through the acquisition of Bucharest West Industrial Park, CTP became number 1 in industrial development in Romania. Prior to our entry to Romania, the industrial market was fractured, without a dominant player. CTP came at the right time, right place, surrounded by the right conditions to achieve several major acquisitions and before our opponents could react", Vos said.
He also said that the plans on very short term were represented by renting entirely the properties in the portfolio.
"On very short term, our plan is to focus on filling this space and rearrange some of the acquired properties at CTP standards. An important difference between CTP and the competition is that we are developing, owning and operating our buildings, so it is in our interest to develop A class properties and manage them appropriately ", Vos said.
Remon Vos says that in Romania there is a shortage of A class logistics premises compared to other countries in Central Europe and the Romanian market has growth capacity.
"Romania is an important growing market for CTP. If you analyze the stock of spaces available on the market compared to the purchasing power of the market, then it is a shortage of industrial A class property compared to other markets in Central Europe. CTP noticed this and so did our customers. We still receive requests from existing customers, but also from new investors in terms of quality spaces in Romania and while this appetite is there, we will continue to invest ", Vos added.
CTP owns several plots of land in Romania, which could be offered to clients as they requested a project in a specific place.
"We are not oriented to speculative developments. We prefer to talk with over 450 international companies that we have in the portfolio and to fulfill their requests with the space they need. The requirements of our customers are of increasing areas. We will continue to monitor the market and provide spaces where our clients want to be", Vos said.
The development strategy of CTP in Central Europe is regional, the Czech company not intending to focus on a specific market.
"CTP started with a regional strategy, meaning that we have identified opportunities and unlocked the potential of regional markets prior to focus on major cities. In Romania we did both things, but I think there is still room for growth, both in the Bucharest area, but also in regional cities like Arad, Timisoara, Cluj-Napoca and Deva", added Vos, also saying that Marian Orzu, an agent with a great experience on the industrial segment has recently joined CTP Romania team.
Currently, CTP is developing logistics facilities for Profi in CTPark Cluj, for Faurecia în CTPark Piteşti and for Iron Mountain in CTPark Bucharest.
The yield is between 8.5 and 10%, depending on the property and location. Also, Bucharest West is occupied in a proportion of 95%, while CTPark Arad is slightly over 50% occupied.
"In Arad we expect the rate to rise, given that we are making improvements. Further, we will focus on filling the available space. However, if a customer comes in tomorrow and says he needs a manufacturing space of 100,000 square meters in CTPark in Bucharest West, of course we'll host it", said Vos.
In order to attract investors in Romania, the Government should complete the major infrastructure projects, Vos considers.
"CTP customers often ask about the state of infrastructure in Romania. This will have to be improved to attract investors in the country and I believe that the Romanian Government knows this and will do what is needed to complete infrastructure projects such as motorways A1 or A3, the development of international airports and ports, as well as the system of secondary roads. CTP is closely following the development of infrastructure in the region. We follow opportunities and completion of motorways network in Romania is such an opportunity", Vos also said.
For 2015, CTP is estimating total revenues of EUR 200 million from rents and the company’s goal is to reach five million square metres of logistics spaces by 2018, two years before initial plan.
"We’ll do that mainly by organic growth together with our clients, as well as through acquisitions, as recently did with CTPark Bucharest", concluded Vos.
CTP is present on the Romanian market since 2008, but didn’t register an important activity by 2015. Currently, CTP owns seven logistics parks in Romania. (source: zf.ro)
