The Hungarian-owned Faedra Group will soon begin developing two new logistics warehouses. The real estate development group, which recently completed a successful capital raise for industrial logistics projects, will construct two industrial and logistics warehouses in Budapest, covering more than 21,000 sqm. The overall investment exceeds €23 million, with delivery expected in the second and third quarters of 2025.
Faedra Group is expanding its portfolio with two new developments starting in autumn 2024. The new sites are located in the XXII district of South Buda, at the intersection of the M0-M6 highway and main road 6, only 15 km from the city centre, and are easily accessible by public transportation (buses and trains). Due to their proximity to the city centre, the buildings are ideal for “last-mile” logistics operations. The total value of the two investments is more than €23 million, with a total area of 21,300 sqm.
The Class “A” warehouses and offices are built with state-of-the-art materials and technical solutions that can be tailored to the needs of potential tenants and owners. In addition to warehousing spaces equipped with modern and sustainable technology, there will also be high-quality office spaces, which are ideal not only for logistics but also for light industrial and corporate centre activities. Lease opportunities start from 1,800 sqm.
Faedra Business Park consists of two buildings with a total of 9,300 sqm of industrial and logistics space. These buildings can be divided into various units, allowing them to be configured and customized individually, making the site suitable for multiple companies. The project is expected to be completed by the second quarter of 2025.
Faedra City, like the developer’s previous Faedra22 project, will be designed as a single building. This nearly 12,000 sqm industrial and logistics area can also be divided into separate units. The development is scheduled for completion in the third quarter of 2025.
“Flexibility and adaptability to tenants’ needs are our primary considerations in the design of the two new Faedra projects. By offering space in smaller units with associated high-quality office solutions, we can provide competitive opportunities for various sectors, including light industry and logistics. Modern infrastructure and sustainable solutions ensure the long-term efficient and sustainable operation of our tenants. We are confident that the excellent location and flexible design options will attract potential clients again in the future,” said Máté Szoboszlay, Partner and Business Development and Investment Director.
Market Context of Speculative Development
The recent economic challenges and high vacancy rates have made many developers hesitant to invest. However, Faedra Group’s successful projects and leasing results, achieved with the exclusive assistance of 108 Real Estate, have encouraged the company to pursue new investments. The real estate development group has chosen to invest in a project that meets various market needs, in an excellent location, and with advanced technical solutions.
The proximity to the city centre and excellent transportation links make the new location advantageous for both tenants and employees. The South Buda location is ideal for urban and suburban logistics operations, with convenient public transport access.
“The success of our previous projects, the proven concept we’ve adopted, and the flexible solutions we offer form a strong foundation for our development plans. Based on market trends, the great location, and our diversified offerings, we expect strong demand for our projects,” added Bence Boronkay, Founder-CEO of Faedra Group.
Sustainability and low operational costs are important for both tenants and developers. By installing green solutions such as solar panels, electric chargers, and smart metering systems, Faedra Group not only ensures sustainable operations but also creates real opportunities to reduce operating costs, which is particularly important in the current economic climate.
