Ian Worboys, P3 CEO said: “Last year was a busy year on the development front. We launched six construction projects tailor-made for our clients at five sites in the Czech Republic, Slovakia and Poland. We even built some speculative development for the first time since the financial crisis. Economic activity is definitely increasing and this is driving demand for modern, sustainable logistics space. P3 is well-placed to expand across a number of markets and take advantage of this recovery story due to fresh investment by our new owners TPG and Ivanhoé Cambridge.”
P3 reported just over 460,000 sqm of new lease transactions in 2013, including six new Build-to-Suit developments, with Central Europe accounting for more than 60% of the year’s deals. Average occupancy rose to over 89% across the company’s portfolio, compared to 87% at the start of 2013.
Breakdown P3 Leasing deals by type 2013 (sqm)
New long-term leases: 124,404
(inc. future leases)
New short-term leases: 10,717
Total Existing: 387,933
New development 2013: 80,273
P3’s Most Active Leasing Markets, 2013 (Total deals, sqm)
Czech Republic: 194,479
Includes new developments launched in 2013
The Czech Republic was P3’s largest European market in terms of leasing deals in 2013, and its third largest (after France and Germany) in terms of leased area. A 46,164 sqm lease extension by Czech logistics firm Hopi at the PointPark Prague D1 logistics park was the year’s biggest deal, followed by a 15 year, 41,140 sqm renewal agreed with fruit distributor Univeg at Waddinxveen in the Netherlands. A long-term lease with global logistics provider Dascher for 30,420 sqm at the Savigny II park in France’s Burgundy region was P3’s largest new piece of leasing business in 2013.
Occupancy rates rose in most P3 markets in 2013, exceeding 90% everywhere except for France and Spain. France however saw significant recovery in the year, with occupancy rising from 70% to 77%. Spain, was the only market that saw a drop in total space leased during the year reflecting the country’s severe economic conditions.
Two of the six BTS projects launched by P3 during 2013 were completed during the year:
· At PointPark Prague D1, P3 constructed a 19,868 sqm distribution facility for Yusen Logistics, incorporating a series of innovative energy-saving features.
· A 4,020 sqm distribution hub was built for DHL Express within Bratislava Airport.
· Construction of a similar-sized hub for DHL Express at PointPark Prague D8 started last September and is due for completion in April.
· A 20,150 sqm BTS facility is under construction at PointPark Prague D1 that will largely be occupied by Mountfield, a distributor of garden furniture and supplies.
· A 26,743 sqm building at PointPark Poznań, most of which is used to support an existing PF Logo Express production facility, was completed in early February,
· At PointPark Žilina in Slovakia, P3 is building a 6,000 sqm warehouse and distribution facility. This will be part occupied by Geis Group, a logistics provider, with the remainder being available for speculative development. The building will be completed this quarter.
P3’s acquisition by TPG and IvanhoéCambridge has changed the company’s business model in a way that will allow it to take advantage of a logistics landscape that is rapidly changing to accommodate the impact of on-line retailing. Large distribution facilities equipped for high-volume delivery to consumers and smaller last mile delivery centres located close to cities are increasingly in demand.
Ian Worboys concluded:”P3 is now an investor, with a lot more available capital and freedom to choose the assets that are best suited to the evolving demands of the market. We are planning several new acquisitions across Europe. ” (sursa: PointPark Properties)