logistica

Brasov accelerates industrial & logistics development

Brasov accelerates industrial & logistics development 2560 1884 ROMANIA PROPERTY CLUB

16.04.2024

Brasov has been an interesting center of attention during 2023, with multiple new builds and announced projects. Both institutional investors and owner-occupiers made significant commitments towards the region.

Brasov is part of the Central region on Romania’s map of modern industrial & logistics premises. Out of the total 7.02 million sqm of national stock, the center region covers 680,000 sqm, half of it being in Brasov.

Owner-occupiers such as Olympus, Ursus, Bauer, and Foerch undertook significant investments towards adding processing, storing, and office capacity.

Olympus announced a 40 million EUR expansion into state-of-the-art cold storage, warehouses, and offices.

Ursus committed to investing over 50 million EUR for the next three years, featuring a new bottling line, warehouses, offices, and an extension of the production facility.

The top three institutional investors – VGP, WDP and CTP -have started a solid development pipeline, with a total combined build capacity of over 360,000 sqm.

VGP signed multiple new tenants, including a record of 47,000 sq m with Intercars, working on the automotive strengths of the region, and an 8,500 sq m lease with DB Schenker.

CTP announced a significant new investment in the city ecosystem, by signing a multi-stage growth lease with Diehl Controls, one of the major home appliance and HVAC production companies.

One of the pioneers of the industrial market in Brasov, ICCO, has 45,000 sq m under development, whereas NEPI Rockcastle has 23,000 sq m available to let in the wider county (Rasnov).

Urban logistics operator, Modulis, is preparing Phase II for go-to-market – 33 small warehouses to cover more than 20,000 sqm.

The authorities are quite involved in pitching to new investors, thus offering large industrial platforms suitable for development. While the former CET platform is still under review and clearing, in Prejmer the local governing body opted for a Public – public-private partnership with Spanish operators Graells & Llonch.

The site, originally an impressive 82 ha plot, has attracted residents, mainly SMEs and local producers, on more than 50 ha. Through residency, companies are offered incentives such as no property tax and/or deductions.

The prime asking rent for modern Class A facilities surged from a base of 3.6 – 3.85 EUR/sqm to 4.25 – 4.5 EUR/sqm, aligned with Bucharest prime rents.

Investments towards increasing the output are not only in facilities but education as well.

In partnership with the City Hall and the dual education center, Schaeffer invested 0.5 million EUR in 2023 in scholarships and meal vouchers to train personnel.

In 2024, the plans are to increase the budget to 0.7 million EUR and contribute to the material base of the class (specialized equipment).

Along with Schaeffer, 15 other companies are partners with the dual education center, among which Draxelmeier, Vitesco, Schneider, and Preh.

This is an outstanding example of aligning the corporate and the public systems to generate a win-win situation and contribute to the economic development of a region.

To unlock further value, investors are waiting for the streamlining of the new international network and for road infrastructure projects to materialize.