Business Forum • 27 August, 2024 at 9:35 AM
Logicor, a leading owner, manager and developer of logistics real estate in Europe, has recently acquired a 4.6-hectare plot of land from toy retailer Jumbo. This land, located on Pallady exit towads Autostrada Soarelui, was purchased in a deal brokered by real estate consultancy firm Colliers. The acquisition strengthens Logicor's position in the eastern area, where it also owns the first last-mile logistics hub in Bucharest. According to Colliers, the demand for strategic land at more favorable prices than in a highly active market is increasing. This trend is attracting the attention of large developers seeking to consolidate their presence in the real estate market.
Logicor also owns an 8.2-hectare plot next to the Arabesque materials warehouse in eastern Bucharest. Including Pallady, Logicor Romania's portfolio currently comprises more than 300,000 square meters of Class A warehouse space, with tenants such as IKEA, Coca-Cola, DPD, Profi Rom Food, Heineken and CTDI.
“The eastern part of Bucharest has enormous development potential. We are witnessing a growing interest in urban logistics solutions, and rising rents highlight the need for modern, efficient warehousing. With this investment, we are strengthening our presence within the Bucharest ring road and are committed to meeting the evolving needs of the market,” says Mihai Diaconescu, Director, Asset Management & Development Of Logicor Romania.
“The trend for investors to consolidate in areas where they are already established is clear, as is the growing interest in inner-city logistics. The industrial market is expanding rapidly towards the A2 motorway, where companies such as VGP have also acquired land just beyond the ring road. The land Logicor acquired from Jumbo already has a PUZ for industrial development, allowing for the construction of up to approximately 25,000 square meters of additional warehouse space. Jumbo had owned this land for a long time but had not had the opportunity to develop it. They built their logistics center in Popesti-Leordeni on an 18-hectare plot, which was also brokered by Colliers in 2020 and purchased from Alpha Bank”, explains Sînziana Oprea, Director of Land Agency at Colliers Romania.
The Colliers director highlights that more valuable land portfolios are entering the market in this period. Last year, the volume of land transactions for commercial real estate projects (excluding traditional industrial and warehousing projects) decreased by less than 10% from the 2022 level of 450 million euros. About 70% of the transacted land volume came from Bucharest and the surrounding areas. As a result, the market continues to perform well above pre-pandemic levels, according to Colliers' annual report.
Compared to the 2021-2023 period, the Colliers director predicts that the appetite for land purchases looks set to remain a bit more subdued in 2024, but the shift is not at all a dramatic one. Actually, several major transactions are currently at an advanced stage and could be finalized later this year, potentially leading to another strong year for the land market by the end of 2024.