The Dutch company CTP, a leader in the field of construction and rental of business and industrial parks in Central and Eastern Europe, with a portfolio that includes almost 10 million square meters of Class-A facilities in ten countries from the Baltic Sea to the Black Sea, has been operating in Serbia for six years. During that time, it has already become a leader in this sector of the market, with an ambitious plan to double its existing portfolio this year, and a goal of exceeding one million square meters of built facilities in Serbia during this decade. Petar Kolognat, Head of Business Development at CTP Serbia, reveals locations where new CTP projects will be developed and why the “nearshore” trend favors the development of this real estate sector in Serbia.
100.000 m2 building BGD1 under construction: CTPark Belgrade City will be the largest logistics hub in Serbia / Photo: CTP Serbia
At the end of last year, CTP started construction on its flagship project in Serbia, CTPark Belgrade City. In addition to the exclusive location, just 10 kilometers from the city center, what else makes this industrial-business park special, and when is it expected to be available for tenants?
At the beginning of 2021, CTP acquired 27.5 hectares of land at the New Belgrade-Kvantaš location, with the aim of developing the largest logistics hub in Serbia, in the immediate vicinity of the city center and Belgrade Airport. With 135,000 square meters of space, CTPark Belgrade City will be Serbia's largest logistics hub, offering warehouse units starting at 2,500 square meters, as well as offices and showrooms. Due to its truly premium location and exceptional connection to the highway and main city roads, this facility will be ideal for the FMCG industry, pharmaceuticals, e-commerce, and so-called “last mile” logistics. The first facility within this hub will be ready for occupancy in Q4 of next year.
Since the beginning, CTP has launched numerous projects and currently has 12 facilities in its portfolio in Serbia. Who are your main clients?
So far, we have built 12 buildings in Serbia with a total area of over 265,000 sqm in five different locations, which makes us market leaders with a space occupancy index of 98%. We try to have a diverse client profile, and in addition to logistics facilities, we also build production plants. In 2019, CTP started developing CTPark Novi Sad, which is now home to some of the most modern factories in Europe – Continental, BMTS, and Nidec. Within CTPark Kragujevac, two buildings with a total area of 55,000 sqm were built to meet the needs of the Yanfeng company’s production plant. A third factory for the same client is under construction and will be completed in August. The CTP Group has a truly diverse portfolio of renowned clients, with whom we continuously build trust and the best possible relationships throughout the entire business process. The success of such a relationship with clients is reflected in the fact that almost 80% of the new facilities we build are for existing clients.
What is the current largest industrial park in Serbia?
The largest industrial park in Serbia is CTPark Belgrade North, which is strategically positioned between the two largest cities in Serbia, Belgrade and Novi Sad, right next to the highway (E75). The total current area of the built facilities in the Park exceeds 100,000 sqm, with the possibility of expanding to over 220,000 sqm. Currently, Tehnomanija, Dijamant, Milšped, Lidl, Mercata VT, Intereuropa, Galerija Podova and Pet Centar are operating in this Park. The new hall of 17,000 sqm that is being built in this park will be ready for occupancy by the Q3 of this year.
What are the company’s development plans for the coming period?
This year alone, CTP expects to build a record 252,000 sqm of buildings at six different locations in Serbia. In addition to the aforementioned parks, we are actively developing CTPark Belgrade West in Šimanovci, where four buildings totaling over 55,000 square meters have been constructed and are fully leased.The companies Sika, Emmezeta, Phoenix Pharma, Milšped and BOSCH, for whose needs a production facility was built, are operating in this Park. We will soon start construction of another hall of 35,000 sqm within this Park, which will be ready for occupancy in Q4 of this year.
We recently acquired two more new locations in Novi Sad. We will build CTPark Novi Sad East with two buildings with a total area of 60,000 sqm at the Kać junction itself. The first building of 25,000 sqm will be ready for occupancy in Q4 of this year.
In the Industrial Zone of Novi Sad North, just four kilometers from the city center and four kilometers from the E75 highway, we have completed the purchase of over 20 hectares of land on which we are designing the largest industrial park in Vojvodina - CTPark Novi Sad City. Given the current availability of high-quality industrial space in this city, I am confident that this project will be a huge success.
What are the greatest advantages of CTParks, that make clients choose your facilities?
CTP is truly committed to sustainable development; our business parks have a green character, an attractive design, and a focus on the well-being of its users. Each of our buildings has a BREEAM green building and energy efficiency certificate. As another very important advantage, I must point out that we are currently the only company in our market that can offer multiple locations to clients. Finding quality plots is definitely one of the pillars of the success of our business, and we are constantly looking for new land at locations where we see potential for further development.
You have announced the installation of solar panels on your roofs...
That’s right, our plan is to have the roofs of all our buildings covered with solar panels. By the end of this year, we will complete the installation on the first ten buildings and reach a capacity of 20 mWh. Considering the planned square footage of our facilities, we believe that we will be one of the largest producers of green energy in Serbia.
How do you see the position and importance of Serbia with its industrial and logistics capacities in relation to the region, especially in light of the current war in Ukraine?
It is noticeable that our clients are looking for reliable solutions to ensure the progress of their operations in the years to come. They are turning toward closer, and so to say, friendlier supply chains; the war in Ukraine has only accelerated this "nearshore" trend. This will increase demand for additional industrial space in close proximity to the developed markets of Western Europe, which will be much more resilient to the risks of crises that could befall us in the near future.
By: Petar Dobrosavljević
Photo: Humanmade Studio