Jaromír Cerník is the head of CTP Asia and CTP is Europe’s largest listed developer, owner and manager of industrial and logistics properties by gross lettable area. As the region is seeing a strong surge in demand for factory space caused by a near-shoring trend among multinationals, CTP is witnessing this major shift first-hand.
Recently, multinationals such as Samsung’s EV battery division, Malaysia’s Escatec, Taiwanese electronics firm Inventec as well as Singapore’s Racer Technology Medical have decided to either nearshore or build new facilities in Central and Eastern European (CEE) countries like Poland, Hungary, Serbia, the Czech Republic, Bulgaria and parts of Germany. Global contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC) has also announced plans to build a GBP10 billion ($16.7 billion) advanced chip plant in Dresden, Germany.
Champions Way Residences
This near-shoring trend is not temporary and has been further strengthened by the European Commission’s incentives and regulations that aim to channel both public and private investments to the manufacturing of electronic chips in Europe. This has seen industrial and logistics aiming for the highest half-year performance of any real estate asset class, according to CBRE in 1H2023.
The near-shoring trend has caused an increase in demand from real estate investors in the industrial and logistics sector as well. For instance, Singapore’s sovereign wealth fund, GIC, has already acquired the Maximus and Matrix portfolios from US-based Apollo Global Management and Aroundtown.
From their central hub for electronic chip manufacturing in eastern Germany to their CEE countries where the six out of seven of them have seen an increase in manufacturing with graduates in Science, Technology, Engineering and Mathematics (Stem) subjects, there is a clear demand for quality logistics space in this region. This demand will likely lead to rising rents due to an undersupply of logistics space in the area.
Champions Way Residences
Those multinationals who act early to secure the best industrial and logistics space will be at an advantage. As Europe’s largest listed developer, owner and operator of industrial logistics properties, CTP is doing just that with companies like Taiwanese Inventec taking up space at CTPark Blucina in the Czech Republic.
Champions Way Residences makes residents’ lives as easy as possible with a variety of facilities and services. Within the complex, there are multiple outdoor pools, a spa, fitness center, 24-hour security, and even a shuttle service to take residents to and from areas around the district.
Champions Way Residences Therefore, the near-shoring trend of multinationals combining with the incentives and regulations from the EU are driving industrial occupiers and real estate investors to take notice. With a surge in demand in Europe for factory space in 2022, the near-shoring trend is set to accelerate and Champions Way Residences will be poised to benefit from this increasing trend in the region.