"In order to obtain all the necessary permits in the shortest possible time, we have done our utmost in recent years, and we also appreciate the really intensive efforts and correct approach of all parties involved. We therefore welcome the fact that everything is ready to complete this project and we believe that the creation of a modern, sophisticated complex will benefit the entire site, even in terms of creating new jobs, "commented David Chládek, CTP Director for the Czech Republic.
Representatives of the city of Hradec Králové also welcome the next step towards the completion of the industrial park. "I very much welcome the positive shift in the matter of CTP halls, which will be completed in Hradec Králové. We inherited this problem from the last management of the city, which refused to continue negotiations with CTP. Fortunately, after intensive negotiations with the embassies, part of the new city leadership together with several opposition representatives succeeded in enforcing a realistic solution, ie to allow CTP to continue its plan, "said the mayor of Hradec Kralove Alexandr Hrabalek, adding:" For our city it means that the unaesthetic construction site will be transformed into a modern industrial park and at the same time the supply of jobs for the inhabitants of Hradec Králové and its surroundings will increase. It will certainly be beneficial for entrepreneurs as well. "
The CTP project began construction in the autumn of 2014, after which its implementation was suspended for five years due to a dispute with the authorities. After mutual agreement with the representatives of the city of Hradec Králové, that the construction will be completed, but some permits that had to be renewed expired. According to CTP, the condition of both buildings is still in good condition even after about six years.
"We will start construction almost immediately. At the first hall, we are really waiting for only minor repairs and completion of insulation, in the second case, we are actually talking more about the skeleton under construction. So we are already looking forward to transforming this sad-looking torso into a completely new and renovated area, typically enriched for us by lots of greenery, bike paths and other elements supporting a sustainable approach to the surroundings, "Chládek described, adding that the completion will also include implementation. traffic lights.
Successful management of CTP
As in previous half-years, the developer CTP, whose shares are traded on the Amsterdam stock exchange Euronext, reports strong growth. The company expects that by the end of 2021 the revenues of the entire portfolio will be compressed and the valuation of the yield portfolio will be positively affected. CTP will reach 7.7 million square meters of gross leasable area this year.
As part of the valuation for the third quarter of 2021, the external appraiser of Cushman & Wakefield updated the valuation of income assets under the construction of CTP, which thus assumes a positive revaluation at the end of this year. Valuations indicate a significant compression of revenues compared to the estimate of rental income at the level of 6.8 percent at the end of 2020. CTP expects a decrease in rental income by at least 50 basis points.
"In the third quarter, our portfolio clearly reflected the growing volume of transactions and the associated accelerating compression of real estate income for logistics and light industry in the markets of Central and Eastern Europe. This broader market trend will have a significant positive impact on our valuations, ”commented Richard Wilkinson, CTP Group's Deputy Chief Executive Officer and Chief Financial Officer.
CTP enters Germany
This week, developer CTP also announced its intention to buy German industrial property owner Deutsche Industrie REIT-AG (DIR). The value of the transaction will be around EUR 800 million (in terms of more than CZK 20 billion) and CTP's portfolio will expand by 1.6 million square meters of leasable space to 3.9 million square meters of land. The agreement has yet to be approved by DIR shareholders, however, more than 50 percent have now committed to the transaction.
"This proposed acquisition demonstrates how quickly CTP is fulfilling the Europe-wide active growth strategy we outlined during our IPO earlier this year. Thanks to this transaction, we will use DIR's experience with the purchase of industrial and logistics properties throughout Germany and combine them with our proven development capabilities, "commented Remon Vos, founder and CEO of CTP, on the German market.
The DIR portfolio consists of 89 properties located in economically strong areas of Germany, specifically in 12 of the 16 German Länder, including, for example, Rhineland-Palatinate, Munich-Stuttgart, Hanover Berlin and the northern port areas. The premises of the local company are now leased by a total of 665 tenants - among them, for example, the logistics company DHL, the tire manufacturer Brigestone and others.