Experiencing high occupancy rates across all industrial parks, real estate developer Zacaria accelerated, in the first quarter of the year, the construction of new spaces rented by clients and also increased plans for future growth, looking to expand its portfolio in new locations across Romania. With very low vacancy rates in its industrial parks and also increasing demand for modern industrial space, the end of 2017 set a high pace for this year’s projects development that Zacaria had in the pipeline.
“In the last 12 months, we experienced an increase in industrial space demand, led by the need of built-to-suit projects. The Romanian market hasn’t reached yet a mature stage, especially compared to other European markets, therefore continues to exceed expectations. We think that this trend will keep up in the following years, so we prepared new investments for our growth plan for the next 3 years”, said Emilia Tepes, Zacaria’s National Sales & Marketing Director. 2017 was a great year for Zacaria, with all of the industrial parks being 90% leased, more than 20 new clients and 42.000 m2 rented out, half of it representing new build-to-suit projects.
Great appetite for industrial spaces in 2017
The biggest deal of 2017 saw the German company Kuka Systems expanding its activity in Romania through a new production facility located in Network Industrial Park, in Sibiu. This built-to-suit industrial and office building covers more than 10,000 m2 and has been already delivered to client this summer. The German investor had requested a future extension in the same location, comprising of another 10,000 m2 of industrial space, to be delivered in 2019. “The relocation of Kuka Systems premises shows that the industry in Sibiu has a healthy growth pace and is becoming more and more competitive. Workforce has become challenging to find in the area, so companies are in need of modern spaces and facilities to attract new labor”, stated Emilia Tepes. Another project, commissioned at the end of 2017 and already delivered by Zacaria this year, was a new building in Western Industrial Park in Oradea. The client is EBM Papst, the world’s leading manufacturer of electric motors and fans. This 6,300 m2 production facility represents the opening of EBM Papst first subsidiary in Romania. Additionally, one of Zacaria’s landmark projects from Sibiu, Imperial Industrial Park, a refurbished industrial building located in the vicinity of the international airport, grew Zacaria’s portfolio of new clients with 6 more tenants occupying almost 13.000 m2.
Future growth in 2018 and beyond
One of Zacaria’s most ambitious projects, Southern Industrial Park in Craiova, with a built-up area of 43.000 m2, is already 75% rented. The company estimates that the entire park will pe finished and delivered in Q2 2019. Manufacturing, especially in the automotive sector, along with logistics and storage businesses, account for the biggest share of the new clients’ portfolio. Zacaria aims to close, by the end of 2018, deals for a total of 80,000 m2 of industrial space and will focus on expansion in new locations across Romania. With the new projects from Sibiu and Craiova secured, the company will continue to strengthen its national position as one of the most active developers in the sector and to pursue new ventures in high demand locations.
Zacaria continues its ventures in Romania
Zacaria, part of the international group Alf Mizzi & Sons, founded in Malta over 100 years ago, has built, from 2009 to 2018, a solid reputation in Romania by revitalizing abandoned or underdeveloped industrial areas in the country. Subsequently, the company strengthened its position by building Class A industrial parks, and thus creating new opportunities for growing companies. By gradually expanding its investments throughout the country, Zacaria today, owns and manages, either constructed or in construction, 10 industrial parks and office buildings, in 6 large cities, covering an area of more than 560.000 m2 of which 350,000 m2 are industrial buildings & offices. The company continues to focus on expanding its model of business whilst actively seeking to invest in and capitalize on other opportunities that Romania continues to present. With a solid reputation, 10 years of experience and a personal approach to doing business, Zacaria’s projects have and will continue to make a lasting impact on the Romanian business environment.
An article from „2018/19 Yearbook: Office, Logistic and Industrial Parks in Romania | CEE”
Partners 2018/19: strategic partners WDP, ALINSO, | office partner: Record Park – Speedwell | headline industry partners: Zacaria, KESZ Group, CTParks, Immofinanz, Anchor Grup, Brisk Group, EMS Floor | logistic partner: DPD | travel partner: TAROM
Browse online the Yearbook – here