CTP presses the accelerator
CTP, the leading developer of logistics and business parks in Central and Eastern Europe, is looking to build on 21 years of continuous growth by accelerating its development programme in the core markets of the Czech Republic, Slovakia, Hungary, Romania, Serbia and Poland.
Chief executive Remon Vos said the aim was to grow the portfolio from 6 million sq m this year to 10 million sq m by 2023, largely by extending the company’s existing sites. “We have 8.4 million sq m of land in the bank on our business parks, where we already have the infrastructure in place,” he explained.
And Vos is confident CTP has the team in place to deliver this space. “Thanks to our clients we’ve been able to build properties consistently and two-thirds of our transactions come from existing clients extending existing buildings or expanding into new locations with us,” he said. “We’ve shown continuous growth, even through the banking crisis of 2008/9,” he added. “We’ve enjoyed continuous GDP growth in our markets, so we’ve been in the right place at the right time with the right clients.”
However, the new phase of growth will require changes to CTP’s capital structure. Until now the company has funded its projects through bank lending and last year it raised a new €1.9bn facility, but Vos said the intention is to bring a strategic investor on board as a long-term partner. “We’re already talking to potential partners, but I’ll be looking to meet investors at MIPIM – it’s a great place to get to know people,” he said.
In parallel with the enhanced development programme, CTP is emphasising its environmental credentials by pushing for BREEAM in-use certification across the entire portfolio by the middle of 2020. “We’ve always been serious about sustainability,” Vos explained. “Because we build properties to own long-term, we’ve always built with energy consumption in mind.”
Re-lamping buildings with LED lighting delivered immediate wins but now CTP is going further, investing in better insulation and renewable energy including rooftop solar. Tree planting on site will help mitigate carbon emissions and CTP’s aim is to have a neutral carbon footprint by 2023.
“Occupiers appreciate it, not just because it reduces the costs of occupation but because they are as aware of their carbon impact as we are. It makes commercial as well as environmental sense.” Vos said.
Top Image: Ostrava CTPark