P3 Logistic Parks (P3), long-term investor-developer of European warehouse properties, has contributed to the overall resilience of the logistics sector during 2020. In a year that created unparalleled challenges for individuals, business and society alike, the logistics sector has remained a resilient and necessary infrastructure. P3 concluded two major acquisitions in 2020, Maximus and Matrix, totalling ~1.5 million m2 GLA. During 2020, P3’s portfolio increased by ~48%, to ~6.5 million m2 GLA.
In 2020, P3 Romania had a total leasing activity of approximately 220,000 m2 of warehouse and office space, out of which 55,000 m2 are represented by new leases, and 165,000 m2 prolongations of existing contracts. These results overcome the company’s initial forecast, demonstrating strong growth in terms of leasing activity. Moreover, the developer added new facilities to its park on the A1 motorway in order to better serve the interests of its clients.
Sînziana Pardhan, Managing Director P3 Romania, states: “The Covid-19 pandemic has put our market segment into the spot-light, showing a whole world that the industrial-logistics sector is an essential cog in the mechanism that makes our modern society work. The intense activity that the warehousing and logistic segments worldwide has registered over the past year, right before and during the lockdown period, in a fantastic effort to re-stock overnight – without fail – the shelves that were being emptied out during the day is a strong proof of this affirmation. Nonetheless, the pandemic felt different for each industry sector. During the past twelve months, we saw large companies expanding their operations, and smaller companies hesitating on their growth or relocation plans. Regardless of the situation, we have remained connected to the market’s request as well as to our tenants’ needs, reconfirming that P3 will continue to support the necessary infrastructure through these unprecedented times.
P3 Bucharest A1 continues to be the most complex industrial park in Romania. In the second half of 2020, the company perfected a collaboration agreement with the National Railroad Company, CFR Călători, ensuring rail access for the park’s personnel, opened its own canteen within the park’s perimeter, and closed the most impressive transaction of the Romanian industrial real-estate segment by signing a lease prolongation agreement for 85.000 m2 with international retailer Carrefour.
Development activity remains one of the key drivers of growth for P3. In the previous 12 months, at a group level, P3 concluded ~600,000 m2 of new developments for new and returning clients such as Amazon, Mercedes-Benz, TEDi, PepsiCo, DHL and InPost. Development project highlights of the year included the hand-over of the 190,000 m2 G+3 warehouse for Amazon in Castelguglielmo, northern Italy, as well as the commenced construction on a 98,000 m2 warehouse in the Echt region of the Netherlands, which is targeting the highest level of BREEAM certification – “Outstanding”. Furthermore, P3 continues to invest in brownfields, having announced the acquisition of a 40-hectare plot of land in central Ostrava, the Czech Republic’s 3rd largest city.
Following global trends, P3’s portfolio composition continued to see a shift toward eCommerce and retail operators. As of December 31st, 2020, ~30% of P3’s portfolio was engaged in retail and eCommerce activity. This is directly in line with P3’s strategy to develop warehouse properties in strategic locations near population centres, some of which P3 classifies as Urban Logistics.
Altogether, P3 has grown by 30 new additions in Europe to a total of 190 employees in 2020. In Germany alone, the team doubled from 16 to 32 employees. In the short term, too, P3 wants to further expand its team of experts in a targeted manner in order to drive development, land acquisition and the opening up of new business opportunities.