Project Developer CTP on Track in Germany

CTP Germany, a holder, project developer, and manager of logistics, commercial, and industrial properties, has entered the next growth phase in Germany following the acquisition of Deutsche Industrie REIT-AG (“DIR”) about two years ago.

(Stuttgart) After establishing the organization in 2022 and 2023, CTP achieved impressive operational and financial results in its German portfolio in 2023. In 2023, CTP re-leased 155,000 sqm within the former DIR portfolio, with an average monthly rent of 5.1 euros per sqm. This rent was 57% above the average monthly rent from the fiscal year (FY) 2022. The average monthly rent of the total portfolio was 3.5 euros per sqm in FY 2023. Significant development potential remains, as nearly 50% of the lease agreements in the portfolio will expire in the next three years, allowing for further rent increases.

The group’s ability to continuously increase rents has been confirmed by independent appraisers, who raised the ERV (Estimated Rental Value) of the former DIR portfolio by 12% in 2023, while no significant yield shifts have affected the development. CTP’s total rental income in Germany has increased from 59.7 million euros at the time of the DIR acquisition to 69.7 million euros by the end of 2023.

Team in Germany with 53 Employees

CTP’s German team now consists of 53 employees, with all activities from procurement, construction, leasing, property management to accounting now conducted internally, aligning with CTP’s business model. This has also led to a reduction in property operating costs across the entire German portfolio, improving the NRI (Net Rental Income) to GRI (Gross Rental Income) margin from 71.6% in 2022 to 83.7% in 2023. Further improvement is expected for 2024.

The strong organizational structure and financial position of CTP Germany mean that the company can enter the next growth phase. CTP plans to develop new parks, relying on the proven CTP concept for developing business parks with a dynamic business environment.

In spring 2023, CTP announced a multi-year investment plan of 300 million euros to expand its network of CTParks in Germany. In 2023, CTP acquired a total of 781,000 sqm of land with the potential to develop around 370,000 sqm of Gross Leasable Area (GLA) in the coming years. The company has already begun the renovation and expansion of CTPark Weiden, where Heineken is a tenant, expanding the park’s GLA to 60,000 sqm. Additionally, CTP has started construction of 32,400 sqm of GLA in CTPark Bremen.

Recent Acquisition: Land in Mülheim/Ruhr

Among the recent acquisitions is a 335,000 sqm plot of land in Mülheim an der Ruhr, where CTP plans to develop a new high-tech business park in collaboration with the local community. CTP is also developing a 130,000 sqm site in Wuppertal to create a business park focused on research and development. Furthermore, a redesign and expansion of 60,000 sqm is underway in CTPark Krefeld.

Photo: © CTP