Top developer and investor, CTP had an extremely performant 2016 and it is on schedule for fulfilling the target for expansion in the near future, we learned from Marian Orzu, Head of Leasing and Business Development Department CTP Romania, in the following interview.

When did CTP enter the Romanian market and what was the transaction that marked this regional expansion? What was the context and how this penetration decision was taken?


CTP entered the market in 2007 when we opened an office and bought two plots of land in Pitesti and in Turda. The real estate market context after 2008 made us keep the office and our attention over Romania, looking for the right moment to enter the market. In 2014 we noticed the market’s fragmentation and the fact that there wasn’t a major player to offer A+ class industrial space. We started then the acquisition of industrial parks, as well as the development of new buildings. 

What is the current presence of CTP in Romania and its total area in projects?


We are currently present in Oradea, Arad, Timisoara, Cluj, Turda, Sibiu, Deva, Pitesti and Bucharest, with a total portfolio of 500,000 sqm built in Romania.

What is your position compared to your concurrence in Romanian on this segment? Besides the numbers, is there a difference in the philosophy approached as investor?


What makes the difference is definitely the quality of the buildings we develop. All our new buildings have /will have BREEAM awards. Another aspect is related to the flexibility and rapidity of decisions. In each zone we are present we adapt following our clients requests in order to offer the best services. We are not selling the properties we own or develop, offering thus our clients constant and fast services both regarding the buildings owned and related to property management. 

What are the most recent large rental transactions signed this year in CTP parks and what are their details (BTS, speculative)?


We are currently present in Bucharest on the A1 highway at km 13 and km 23, the two main zones of the industrial market. In September this year we started speculatively the development of a warehouse of 22,000 sqm at km 13, already renting 50 pct of its area to several clients. This building will be delivered in March 2017. We estimate that by the end of its completion we would have it fully let.


We completed a construction of 30,000 sqm at km23, 60 pct. let OTZ Logistic and the rest of 40 pct. will be occupied by a production unit.
Still at km 23 we started on the 1st of November a building with 60,000 sqm, to be delivered in May next year. This is a construction we started without any secured client, but I expect it to be fully let by its delivery, considering the ongoing negotiations we have for this building.


Among the transactions closed this year: Profi – 25,000 sqm Cluj, Altex – 10,000 sqm Bucharest, OTZ Logistic – 20,000 sqm Bucharest, Faurecia – 15,000 sqm Pitesti, Tibbett Logistics – 10,000 sqm Bucharest, Altex – 4,500 sqm Timisoara, Emag – 3,500 sqm Timisoara, Lagermax – 4,500 sqm Bucharest, Raben – 1,500 sqm Bucharest, Well Pack – 2,500 sqm Bucharest, DSV Logistics – 10,000 sqm Bucharest Englmayer – 2,500 sqm Bucharest, Iron Mountain – 5,000 sqm Bucharest.

What is the total amount invested in 2016 by CTP in real estate in Romania? 


This year we invested nearly EUR 130 million, the amount being divided in acquisitions and new developments. Our target is to reach 1,000,000 sqm built area by 2018. We are currently in target.

You have recently announced the starting of construction works for an area of 60,000 sqm, speculatively developed within CTPark Bucharest West. How did you take this decision?


It is a reaction to the market’s request. We currently have in Bucharest 95 pct occupancy rate. Moreover, this decision is in line with our plan of reaching a portfolio of one million sqm built area by 2018.

What is the client profile this speculative development is addressing (range of activity, minimum configured area etc.)?


We address the entire industrial market, namely production, storage and distribution. The minimum area would be 2,500 sqm. Moreover, we have the industrial park title for these properties, a facility which allows us being extremely competitive in service charges costs.

Do you also plan the development of such speculative areas in the parks all over the country, in the near future?


Yes. The following developments will be in the country. We are currently considering Cluj, Sibiu and Timisoara, planning to start projects in the first part of next year.

Apart the development projects planned to start next year, do you have the intention of making new acquisitions?


We are always paying attention to any interesting projects appearing on the market. Our growth will be achieved both through acquisitions and as much possible though organic development of the portfolio, namely constructions on our lands, also considering the clients’ requests.

Your buildings in Romania have green awards, of ecologic sustainability? 


Considering the buildings we bought, we are running a modernization program for each of them. I am referring here to the introductions of LED type lights, as well as investments in insulation or solutions of lowering the operational costs of our clients, costs related to the utilities consumption.
As for the new developed buildings, they are all according to the BREEAM certification, with the following specifications:


a.     Energy efficient building due to the highly qualitative insulating materials and equipment used (LED lamps, presence sensors, recirculating heaters, low water use fittings, etc) chosen specifically for the efficiently designed space.


b.    Water efficient building optimizing at maximum level the use of the potable water, thus low consumption of water.


c.     The efficiency in the energy and water use, together with the appropriate detailed metering is driving low monthly running costs.


d.    The materials used within the building can be recycled and are not polluting, not harmful, having low values of Volatile Organic Compounds or added urea formaldehyde.


e.     Equipments are using refrigerants and other materials with low impact on the environment and low emissions level.


f.     The constructed working environment of the building, due to the materials and equipment used, the place where the occupants are working is increasing productivity and is decreasing the sickness day rate resulting in employers costs savings.


g.    All fire, risks and emergency systems are carefully considered through the 24h/7d security and expert service attendance within the building.


h.     Building will be maintained based on procedures considering the ‘green’ directions set even from the concept design stage, carefully observed during the execution process also.


i.      Building’s position is within a logistic park containing all required amenities for the occupants of the building. Preferred parking is provided for car sharing vehicles, and also for bike users, together with showers and changing facilities.


j.     The projects are considering the land use and ecology as advised by a Suitable Qualified Ecologist, acting on all his suggested improvements on landscape.


k.    The logistic project is to be certified in Romania (first at ‘Very Good’ level, under the latest scheme BRE 2016).