Coffee with Craig Show – daily CRE news covering the CEE region, with Craig Smith and Winston Norman, Editor and Chief of EuropaProperty.com.
The investment market for logistics real estate suggests positive outlook for 2024
Logistics real estate managed to stand its ground in 2023, emerging as one of the most attractive segments despite its modest investment volume. The initial signs of a positive dynamic seen during the second half-year have kindled hopes that the investment market will revive and open up interesting opportunities.
“The pricing phase on the investment market for logistics real estate is gradually drawing to a close. In 2024, attractive market opportunities will emerge and mark the onset of the next investment cycle,” said Tobias Kassner, Head of Research and Member of the Executive Board at GARBE.
These are the findings that GARBE Research presented in its GARBE PYRAMID MAP for early 2024, the latest update of the company’s overview of prime rents and prime net initial yields for the 112 leading logistics real estate submarkets in 23 European countries.
P3 Logistic Parks developing mega e-commerce facility in Poland
Developer and owner of logistics properties in Europe, P3 Logistic Parks has begun construction of a new logistics hub called P3 Wrocław I that will be a cutting-edge facility optimised for the evolving needs of the booming e-commerce sector. The entire 265,000 sqm park has already been fully leased to one tenant. Colliers Poland advised on the transaction.
The global and Polish e-commerce sectors show promising growth prospects, with an estimated increase in market value in Poland of over €24 billion between 2021 and 2027.
Bartłomiej Hofman, Group Development Director & Managing Director of P3 in Poland, says: “Its undoubted advantage is its excellent location near Wrocław. This strategic position within the industrialised Upper and Lower Silesia regions makes our park a key player in logistics.”
The investment in this location was made possible thanks to SATOIA S.A., which invested in road infrastructure, provided all utilities and prepared full documentation along with the building permit.
DRFG builds new production hall near Hradec Králové
The DRFG Investment Group have launched the construction of a new production hall near Hradec Králové. The project is a build-to-own development.
The buyer is Heraues Medevio, a partner to medical device companies, that will place its specialized production as well as offices in the building. Completion is planned for the end of this year. The transaction was mediated by Cushman & Wakefield.
The hall is being constructed on a former brownfield site, which DRFG bought last year. The hall will spread over two floors with 4,100 sqm dedicated to specialized production. An adjoining 8,000 sqm was also purchased for the company’s potential future expansion.
Genpact renews 29,000 sqm office lease in Bucharest project
Genpact Romania, a provider of professional services firm, has extended its lease in Bucharest-based Hermes Business Campus, owned by Adventum Group. Genpact will continue to occupy more than 29,000 sqm of office space and plans to add new facilities in partnership with the landlord.
Griffes worked with Adventum Group on the deal, while CBRE assisted Genpact on the lease terms.
“The continuation of the partnership with Adventum is a reconfirmation of our commitment to continue investing and growing in Romania,” said Alexandru Stoenescu, Country Leader for Romania and Bulgaria at Genpact.