Another record year for P3 paves way for major growth in 2017

Pan-European logistics property investor developer P3 has today reported record performance during 2016 across all key parameters including new construction, leasing, vacancy rates and development pipeline. The figures, which reflect the company’s consistent year-on-year growth since 2009, underline P3’s position as one of the most dynamic businesses in the sector. It starts 2017 ready for a new chapter of growth alongside its new owner ‑ Singapore’s sovereign wealth fund GIC.
During 2016 P3 completed a total of 15 new warehouses totaling approximately 320,000 m² ‑ nearly trebling its 2015 development total. Plus, it has more than 500,000 m² of development in the pipeline, split roughly 50/50 between CEE and Western Europe. Some 124,000 m² is already under construction, in eight buildings in five parks in four countries.
As a result of its development and investment activity in 2016, P3’s pan European portfolio has grown from 146 buildings to 165 ‑ a total of 3.5 million m² (173 including the buildings under construction).
During the year it leased a total of 1.26 million m², up from 822,000 m² in 2015. This included almost doubling new Build-To-Suit lettings from 93,000 m² in 2015 to 213,000 m² in 2016. Lease renewals also increased from 398,000 m² to 716,000 m², a strong indication of the high level of occupier satisfaction with P3’s customer service oriented, long term approach to management. The number of customers increased to over 330 and the vacancy rate across the portfolio dropped from 7.6% to 4.9%.
Commenting on the 2016 performance, Ian Worboys, CEO of P3 said: “2016 was an amazing, exciting and eventful year with the refinancing of €1.4 billion of debt and the change of ownership. As the numbers clearly demonstrate, we achieved a huge amount of progress in 12 months. But, to quote Bachman-Turner Overdrive, ‘You ain’t seen nothin yet’. With the backing of our new shareholder, 2017 promises to be even more exciting, as we pursue our growth plans by bringing forward the development of our existing land bank as well as acquiring new sites in the nine European countries in which it is already represented as well as entering new markets. Watch this space.”
2016 was punctuated with a series of project and deal highlights including:
• starting work on P3’s first new development in France for leading global IT logistics service provider Ingram Micro at P3 Lomme park;
• handing over its first new build development in Germany ‑ a 20,000 m² Build-To-Suit automotive parts distribution centre in northern Germany for Peugeot Citroën Germany GmbH (part of the French PSA Group);
• purchasing new sites in Germany, including the 107,000 m² P3 Gottfrieding near Munich and expansion land for P3 Kamen in the Ruhr and P3 Bedburg (the latter a catalyst for the complete redevelopment of the park to include a new facility for existing customer NEX Logistics Europe GmbH, a subsidiary of the Japanese logistics company Nippon Express);
• completing the first two buildings on the new P3 Prague D11 park for top Czech online furniture retailer Exiteria and French 3PL FM Logistic;
• developing another new building for the VF Corporation ‑ owner of premium lifestyle brands including VANS, North Face, Wrangler and Timberland – at P3 Prague D8 park, the latest in a series of expansions that brings the company’s total distribution hub at the park to over 106,000 m² ;
• achieving 95% occupancy at P3 Prague Horní Počernice, one of the largest logistics parks in CEE;
• negotiating the largest industrial lease renewal of the year in the Czech Republic, on a 40,000 m² distribution centre with MD logistika at P3 Prague Horní Počernice;
• developing 5 new buildings in Slovakia, including the final buildings at P3 Bratislava and P3 Žilina; 4 in Poland, including the first new developments at P3 Blonie and P3 Piotrkow; and increased the total amount of leaseable space in Romania to over 300,000 m²;
• building an 81,000 m² logistics centre at P3 Bucharest for top European retailer Carrefour.
On the corporate front, key events were even bigger, particularly:
• agreeing a €1.4 billion long-term refinancing package agreed in October with a group of leading international financial institutions ‑ one of the largest European refi deals of the year in any sector;
• the €2.4 billion acquisition of P3 by Singapore’s sovereign wealth fund GIC ‑ one of the largest deals European property deals of 2016.