Real Estate News by CTP Invest, May 2021

Fri | 28.05.2021

Real Estate

CTP Invest informs over the sustainability in the real-estate industry & logistics parks.


With the industry reporting record-breaking levels of occupier take-up of Grade A logistics space, all eyes are on how the sector responds to demand. This rapid growth will not be slowing down anytime soon, so the challenge will be to ensure that it is sustainable – in all senses of the word.


In recent years, much of the industry’s focus on sustainability and environmental performance has been on residential and office development, while to some extent the innovations which have taken place in the industrial and logistics sector have not generated the same awareness. That is about to change.


The lockdown charged e-commerce boom and the continuing shift to the online marketplace, have placed even greater pressure on supply chains, with a corresponding need for increased storage space to accommodate more inventory and achieve speedier fulfilment and distribution.


As digital growth accelerates so there is a greater focus on sustainability, and while some larger developers in the industrial and logistics sector are spearheading improvements, there is a significant opportunity for other developers to accelerate at a faster pace in order to create more sustainable and eco-friendly spaces.


Sustainable schemes are not only better for our environment. A recent European report highlighted that BREEAM-certified ‘Excellent’ assets outperformed non-certified assets by more than 100%, delivering better results for the bottom line of the businesses that occupy those buildings, the value of the asset held by investors, for the prosperity of the regional economies in which they are located, and for the physical and mental wellbeing of the employees that work in them.


The location of a warehouse is critical for sustainability.  Occupiers need their warehousing space to be close to urban areas to minimize transportation costs and emissions, with easy access to local road networks and a relevant local labor force. Not only does this enable less time on the road for freight and distribution, reducing environmental impact, but for workers and employees it means being able to use public transport and be in closer proximity to amenities, once at work.


Building location and design is now, more than ever before, incorporating and prioritizing the needs of employees.  Whether through enhanced cycle routes, on site cycle parks and gym facilities, as well as green spaces and footpaths for rest and walking. Employee-focused facilities designed to enhance health and wellbeing and nearby amenities are integral for the modern warehouse.  These new logistics and warehousing facilities are consolidating their place in Romania’s critical infrastructure and offering employment opportunities to a large part of the national workforce.


As the local leader in the field, with sustainable development embedded in our approach, it is really important for CTP Romania to ensure that we are looking at ways to minimize the environmental impact of our schemes, both within the site and more widely in the surrounding region.


Using high-quality materials and insulation during construction is fundamental to achieving low energy consumption, as are good waste management and lighting strategies.  We also like to consult and collaborate with end users to ensure that we are delivering solutions that can deliver long term investment value across the lifecycle of the development.


As an example, large surface areas which are prominent in logistics warehousing, provide the opportunity for both rainwater harvesting, and for Photovoltaic paneling. PV panels give the end user the opportunity to implement solar energy, on a large scale and therefore the potential to significantly reduce occupation costs over the term of their occupation.


It is clear that now is the time for developers across the industrial and logistics sector to drive sustainability in partnership with occupiers, local authorities, and financial stakeholders, for the benefit of the wider communities they serve. CTP Romania is committed to creating sustainable spaces that connect business, people, and places.


CTP Group is widely recognized as a frontrunner on developing, owning, and managing its assets to the highest sustainability standards in the sector in Europe. By 31 March 2021, the proportion of BREEAM certified properties (either In-Use or for New Build “Very Good” or better) as part of CTP’s total portfolio of income producing properties, reached effectively 100% (compared to over 95% per 31 December 2020). With its entire portfolio BREEAM certified, CTP claims the position of the most sustainable developer in the region and is on track to reach carbon neutrality this year. CTP is a top five industrial property developer and developer in Europe and the largest in CEE, with over 6.3 million m² of logistics space and operations in nine countries. The company is on target to expand its portfolio to 10 million m² by 2023. At the end of March 2021 CTP listed on the Euronext Amsterdam stock exchange, issuing 397,017,000 shares priced at EUR 14 per share. This implied a market capitalization for the company of EUR 5.6 billion.


This article was provided by our Real Estate Partner, CTP Invest.

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