CTP Germany: Entering a new phase of growth

-  CTP starts the new year with operationally and financially convincing results

Caption: CTP is continuously expanding its network of CTParks. In Krefeld, a remodelling and expansion of 60,000 sqm is currently underway. Copyright: CTP Deutschland.

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

After building up the organisation in 2022 and 2023, CTP achieved convincing operational and financial results in its German portfolio in 2023.

In 2023, CTP re-let 155,000 sqm within the former DIR portfolio, with an average monthly rent of EUR 5.1 per sqm. This was 57% higher than the average monthly rent from the financial year (FY) 2022. The average monthly rent for the portfolio as a whole was EUR 3.5 per sqm in FY 2023. This continues to offer significant development potential, as almost 50% of the portfolio's rental agreements expire in the next three years and further rent increases will therefore be possible.

The Group's ability to continuously increase rents has been confirmed by independent valuers who have increased 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 German rental income has increased from €59.7 million at the time of the DIR acquisition to €69.7 million at year-end 2023.

CTP's German team now consists of 53 employees, with all activities from sourcing, construction, leasing, property management to accounting now carried out in-house, in line with CTP's business model. This also led to a reduction in property operating costs across the German portfolio, improving the NRI (net rental income) to GRI (gross rental income) margin from 71.6% in 2022 to 83.7% in 2023. A further improvement is expected in 2024.

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

In spring 2023, CTP announced a multi-year investment plan totalling 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 possibility of developing around 370,000 sqm of gross lettable area (GLA) in the coming years. The company has already started the conversion and expansion of CTPark Weiden. Heineken is a tenant there, which will increase the gross lettable area of the park to 60,000 square metres. CTP has also started building 32,400 square metres of gross lettable area at CTPark Bremen.

Recent acquisitions include a 335,000 sqm site in Mülheim an der Ruhr, where CTP plans to develop a new high-tech business park in co-operation with the local municipality. CTP is also developing a 130,000 square metre site in Wuppertal to create a business park focused on research and development. CTPark Krefeld is also undergoing a 60,000 square metre redevelopment and expansion.

About CTP Germany

CTP is Europe's largest listed owner, developer and manager of logistics and industrial real estate in terms of gross lettable area, with over 11.2 million square metres of GLA in 10 countries as at 30 September 2023. CTP certifies all new buildings to BREEAM Very good or better and has been awarded a "Low-Risk" ESG rating by Sustainalytics, underlining its commitment to sustainability.

Further information can be found on CTP's corporate website: www.ctp.eu

Contact:
CTP Germany | www.ctp.eu/germany
Alexander Hund | +49(0)160 8192724 | alex.hund@ctp.eu
Schelmenwasenstraße 37 | 70567 Stuttgart
 
teamtosse - Agentur für Kommunikation | www.teamtosse.de
Dr Daniel Bambach | +49(0)89 414175290 | daniel.bambach@teamtosse.de
Kistlerhofstraße 70 | Building 88 | 81379 Munich