CTP, Europe’s largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has leased over 100,000 sqm of logistics space across its business parks in Hungary to a leading Chinese logistics specialist for the automotive industry.
CTP’s latest tenant, which serves some of the largest e-automotive companies in Europe, is taking new space as well as expanding in multiple CTParks in Hungary. The company has selected CTPark Budapest West as the location for its distribution centre, a state-of-the-art warehouse space within the park’s building complex of nearly 300,000 sqm floorspace, making it the largest CTPark in Hungary and the sixth largest in the CTPark network, with plans underway to develop an additional 80,000 sqm. Housing Hungary’s first ever Outstanding BREEAM-certified building, CTPark Budapest West boasts exceptional connectivity, being located next to the town of Biatorbágy at the M1 highway, in the vicinity of the M0 ring road and only 15 kms from Budapest city centre.
The automotive supplier is also extending its existing space at the CTPark Komárom business park. Located at the Hungarian-Slovakian border by the town of Komárom, CTPark Komárom has superior road access to the main M1 motorway and major European cities, making it an ideal location for both manufacturing and warehousing. The property is only 40 kms from the Audi factory in Győr, 85 kms to Budapest, 80 kms to Bratislava and 150 kms to Vienna.
The CEE region has firmly established itself as a highly efficient automotive manufacturing hub worldwide. Within the six CEE countries there are a total of 33 car manufacturing plants, and the region surpassed Germany in nominal car production in 2022. Eurostat data shows that car production in the CEE has increased by almost 50% over the past eight years, reflecting the Foreign Direct Investment (FDI) inflows and illustrating the strength of the CEE region as the leading production location in Europe.
Ferenc Gondi, Managing Director for CTP Hungary, said: “The CEE, and Hungary especially, is becoming an increasingly strategic location for the automotive industry. We are thrilled that our existing business partner has selected our CTParks across Hungary to grow its operations in the sector. Not only is CTPark Budapest West the largest CTPark in Hungary, it is exceptionally well-connected and offers state-of-the-art facilities and progressive sustainable credentials, an astute choice for our client’s new distribution centre.”
Bordering seven countries in the heart of Central-Eastern Europe, Hungary’s optimal geographic location has attracted significant FDI inflows in recent years. Robust national infrastructure, a tradition of logistics, and one of the highest densities of trans-European transport networks in Europe all facilitate movement across the CEE and into the nations of Europe’s south. Hungary’s low corporate income tax and relatively limited bureaucratic red tape make it easy for investors to capitalise on a bustling domestic market and proximity to a vast network of consumers abroad.