European logistics property specialist CTP has initiated a new €150 mln investment programme to develop over 200,000 m2 GLA of warehouse space in Bulgaria over the next two years.
The strategy is kicking off with the acquisition of two logistics centres in the capital Sofia from Bulgarian logistics developer and operator Transcapital for an undisclosed amount.
‘CTP has commenced a €150 mln two-year investment programme across multiple projects in Bulgaria, including the recent Transcapital acquisition,’ said Remon Vos, CEO of CTP. ‘By accelerating our expansion strategy here, and as the only major international developer operating in Bulgaria, we will be well positioned to meet growing occupier demand from both domestic and global companies for institutional quality logistics and industrial real estate. With CTP’s increased footprint within this rapidly evolving market, we will be able to offer our current and prospective clients the opportunity to capitalise on Bulgaria’s strategic location which links Europe and Asia via the EU’s Trans-European Transport Network (TEN-T), as well as its skilled, yet affordable and available workforce.’
As part of the expansion programme, CTP has also established a team of professionals on the ground, including Daniela Boytcheva as business development director.
Combined, the Transcapital sites comprise nine warehouse facilities and three offices totalling over 73,000 m2 of GLA. The two sites also offer the potential to construct an additional 11,000 m2 GLA and include building permits for 20,000 m2 GLA of warehouse development.
Earlier this year, CTP also started construction at two of its landmark parks located at CTPark Sofia West and CTPark Sofia East, which together offer a total development potential of over 225,000 m2 of prime logistics space. At the same time, the Group is completing the construction of a 15,000 m2 facility for Danish 3PL company DSV at Sofia Airport, as well as finalising the acquisition of a 31,200 m2 warehouse with a 4,000 m2 office, let on long term leases to Orbico, a major 3PL operator in the region.
Beyond the capital city of Sofia, CTP continues to expand its footprint in the central Bulgarian city of Plovdiv where it currently manages a 11,500 m2 production facility let to the German automotive supplier Willie Elbe. Recent acquisitions here include a development site which could accommodate 60,000 m2 of manufacturing and logistics space and a sale-and-leaseback of a 10,000 m2 facility let to an aviation business.
Bulgaria is set to join the Eurozone currency bloc as of January 1st, 2024, a move which is expected to encourage more inward investment due to lower transaction costs, greater certainty for firms, reduced market risk by disposing of the need to hedge against a euro exchange rate and greater price transparency.