P3 points to more progressExpansion market outlook
Anna Pakulniewicz, ‘Eurobuild Central & Eastern Europe’: You have three projects underway, you’re planning to start building new facilities this year in all four of your existing distribution parks in Poland, and you’ve secured a site for your next project. What are P3’s future development plans for this country?
Andrzej Wroński, the country head of P3 in Poland, the CEE head of asset and property management and member of the management team, P3: This year we wanted to start building new warehouses in each of our four parks in Poland and this is exactly what has happened. We already have new buildings underway at P3 Poznań, P3 Błonie and P3 Mszczonów – a total of more than 130,000 sqm. Several weeks ago we started work on a new 61,000 sqm facility for Kuehne+Nagel at P3 Piotrków. So we have already achieved our goals for 2017, even though there are still several months left before the end of the year. In addition to the K+N project, building work is currently being carried out at P3 Błonie, where the 32,500 sqm third phase – Warehouse 16 – is in progress. This will be occupied by e-commerce retailer Emag. In response to the continued high level of interest from customers, we are now preparing to build more new warehouses in Poland, with the work likely to start this year. This is the most intense period in P3’s history in Poland. This record amount of construction work is directly linked to an unprecedented level of leases. In the first eight months of this year alone, P3 has signed leases for more than 300,000 sqm.
When will work begin on the project in Poznań?
In April we completed the purchase of 49.2 ha, right next to P3 Poznań – and as a result the area of the park will double. Eventually, up to 230,000 sqm of modern warehouse space could be built on this site – enabling us to offer new and existing customers modern space tailored to their needs. We aim to be ready to start construction work on the new section of P3 Poznań in mid-2018. Currently preparatory work is in progress – we are preparing all the necessary documentation and waiting for the environmental decisions and our building permit.
Are you already holding talks with future tenants for the new space in Poznań?
Indeed. We are already seeing significant interest in the second phase of P3 Poznań from potential customers. This should not come as any great surprise. The excellent location of our park, along with the two major roads adjacent to it, means that companies want to invest here. In addition, the Poznań market, which is one of the largest in Poland, is still very attractive, both for companies looking for a good place to run their distribution operations – not just for Poland but also supplying our neighbours in Western Europe – as well as to those engaged in light manufacturing. As always, the space and the location is very flexible, suitable for businesses from a wide range of sectors. The negotiations that are taking place with customers are at an early stage, so it is too early to reveal any details.
Is P3 interested in expansion only in those regions of Poland where you are already present – or are you also looking at other locations in the country?
P3 has a portfolio of more than 716,000 sqm in existing warehouses and those under construction, as well as land ready for an additional 800,000 sqm of new logistics projects. Our parks are located on the outskirts of Warsaw: in Błonie and in Mszczonów – P3 Błonie and P3 Mszczonów respectively; as well as in the western part of the country, in Poznań; and in central Poland, near Piotrków Trybunalski – P3 Piotrków. We want to expand in the areas where we are already present, as you can see by the acquisition of the site near Poznań. There is significant demand from potential customers of all P3 parks in Poland, as is confirmed by the record amount of space we have leased this year. At the same time, we are also looking for new investment opportunities. We are looking closely at sites in central Poland, near Łódź, and we are also considering projects in Lower Silesia. We would also be interested in a location closer to Warsaw than our parks in Błonie and Mszczonów. And we are also open to less typical logistics locations. If one of our clients – and we already have more than 300 across our European portfolio – asked us to develop a bespoke facility for them in a particular place, we would be only too happy to do so.
What makes P3 stand out from the competition?
P3 is a long-term owner of logistics assets. This approach has a bearing on the way we carry out our development projects, as we build them knowing that we will be managing them for many years to come. It also enables us to build long-term relationships with our customers. We take care of every detail from the design stage onwards. We use high quality materials that continue to be more user-friendly and, in fact, are more efficient to use over time. In addition, as one of the leading developers of logistics facilities, we always seek to introduce energy-efficient and environmentally-friendly features in our parks. In line with our standards, we install PIR insulating panels, solar panels for water heating, LED lighting and infrared taps. We are also pan-European, so we are able to offer customers cross border opportunities in P3 parks outside Poland.
What are the current trends in the warehousing market in Poland and what can tenants expect in the future?
There can be little doubt that 2017 will be another record year for the Polish warehouse market, both in terms of the supply of new space and leases. There is no indication that this activity will change in the near future. We are certainly not seeing any signs of a market slowdown. Retailers, including e-commerce, logistics businesses and light manufacturing firms, have been the most active types of occupiers in recent months. However, regardless of the sector, customers now expect warehouses that suit their needs. At P3 we have many successful projects under our belts that do just that. Warehouse 16 at P3 Błonie, for example, where two phases were completed earlier this year, was one of the largest logistics facilities commissioned in Poland in Q2 2017. Its occupiers include Antalis, Green Factory Logistics and Quick Service Logistic Polska. The Green Factory Logistics space includes, among other features, refrigeration units and additional insulation on the roof. Similarly, Quick Service Logistic needed cold stores and a deep freezer, which takes up almost half of its space. In addition, customers appreciate openness and flexibility. At P3 we always try to meet the expectations of our partners and provide them with the best facilities possible for successfully running their businesses.