Panattoni enters the Hungarian logistics and industrial park market
Panattoni Park Gorzow Wielkopolski in Poland by international developer Panattoni.
Panattoni, one of the largest regional and European developers of logistics and industrial parks, which has had a significant presence in the Czech Republic and Poland in recent years, has announced the opening of an office in Hungary.
Previously absent from the Hungarian market, the company has already won two projects in the Budapest region. This is in addition to other regional industrial developers and park operators such as Prologis, CTP and VGP. In addition, national operators such as NIPÜF (the national industrial park operator and developer), Wing, CPI, ConvergenCE and HelloParks, are active in an increasingly attractive Hungarian industrial market with high demand and the lowest rate. vacancy in Central Europe.
“As with other countries in the region, the global pandemic has had little impact on the Hungarian real estate warehouse and industrial sector. The country should also benefit from the new trends which emerged last year, in particular the growth of electronic commerce ”, explains Robert Dobrzycki, CEO of Panattoni.
“It could also take advantage of the fact that many Asian companies are looking for alternative locations for warehouses and production plants, as many auto companies are now located in the country. In addition to this, Chinese finance is being used for the construction and modernization of a high-speed railway between Budapest and Belgrade, which will connect the Balkans with a special transport route to the now-owned seaport of Piraeus in Athens. from China, ”he emphasizes outside.
“Thus, Hungary is becoming an increasingly important bridgehead for the Chinese in Europe and a gateway to Western countries. At the end of this project, the country will be in a strong position to be able to compete with the main logistics centers across Europe, ”adds Dobrzycki.
The total modern industrial park in the Budapest region amounts to more than 2.4 million m², according to the Budapest Research Forum, made up of CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary. Logistics buildings are few, if not non-existent, with more than 5,000 m² of contiguous industrial space available and an overall vacancy rate of 2.6%.
“In response to the high demand levels observed in 2020, a resumption of development activity is evident, and an improved quantity of new spaces will be delivered in 2021/2022 for nearly 300,000 m² of industrial space; 37% of the 2021 pipeline is already pre-leased ”, comments Cushman & Wakefield Hungary in its Industrial Snapshot for the first quarter.
By way of comparison, Poland has 2.3 million m² of industrial space under construction with a vacancy rate of 7%. The Czech Republic has more than 9 million m² of Class “A” industrial space across the country, with an overall vacancy rate of 3.6%, according to JLL.
Panattoni has delivered 12 million m² of space in Europe over the past 15 years, including its first BREEAM “Excellent” accredited building at Panattoni Park Sosnowiec, Poland. The company also obtained BREEAM “Outstanding” accreditation for its Cheb park in the Czech Republic. The company aims to achieve emissions neutrality for all of its buildings by 2025. Sustainability has become a central concern for industrial developers and park operators.
The Hungarian branch of Panattoni is headed by László Kemenes, former country manager at Prologis in the country and industrial consultant at CBRE. He will be responsible for the entire development process, from site acquisition and investment to project marketing and transfer to tenants.
This article first appeared in the print issue of the Budapest Business Journal on June 4, 2021.