CTP Germany has launched its plans for EUR 1 bln in targeted developments and redevelopment in mainly urban logistics ‘last mile’ assets as Deutsche Industrie REIT’s former portfolio is integrated into CTP’s pan-European platform.
Udo Stöckl has been appointed German COO to support CTP group CEO and CTP Germany CEO, Remon Vos to support these plans. CTP has completed the public takeover and delisting offer for Deutsche Industrie REIT-AG and issued 32,421,325 new CTP shares as part of the settlement, increasing the total number of issued shares to 432,814,135 and the free-float to approximately 23 pct of that total. Kempen & Co is acting as sole financial advisor to CTP for the takeover, while Sullivan & Cromwell and De Brauw Blackstone Westbroek is providing legal advice and Flick Gocke Schaumburg is acting as its tax advisor.
The Czech-based industrial developer intends to comprehensively upgrade the sustainability credentials of previously undermanaged DIR assets and implement a development strategy to double CTP Germany’s current portfolio to 3.2 mln sqm gla by 2026.
The German market is a compelling investment opportunity as it allows us to expand CTP’s network to meet growing occupier demand for urban logistics in one of Europe’s strongest economies. We will now be able to offer new and existing tenants access via CTP’s platform to the trans-European supply chain network across markets from the Black Sea to the North Sea. We have identified multiple opportunities to significantly enhance CTP Germany’s portfolio by applying the same disciplined development and operational skills that we have perfected in Central and Eastern European markets over the past 23 years. We will bring the portfolio up to our demanding ESG standards over time, maintaining our lead as the only major pan-European industrial and logistics real estate company with a 100 pct BREEAM-certified portfolio of ‘Very Good’ and above.
Remon Vos, the CEO of CTP and CTP Germany
DIR’s portfolio of 90 assets with 1.7 mln sqm gla generates app. EUR 60 mln of gross rental income per year. It is now to be split into four components: ‘hold and maintain’; ‘hold and invest’; ‘hold and covert’ and ‘sell.’ The vast majority will be held for the long term with the sale of eight assets expected to be carried out within the first two years. CTP aims to double the total area it now owns in Germany in five years has identified ten strategic zones around which this growth will be centred: Bremen/Hamburg, Berlin, Hannover, Dusseldorf/Cologne/Dortmund, Leipzig/Dresden, Frankfurt, Nuremberg, Karlsruhe/Mannheim, Stuttgart and Munich. The company also plans to increase average occupancy levels to app. 95 pct from 88 pct and increase rental levels nearer to prevailing market rates of app. EUR 76 per sqm from app. EUR 38 per sqm.
CTP is currently developing a 30,000 sqm, logistics facility at a major junction of the A1 and A27 motorways just south-east of Bremen. which should be completed later this year.
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