MLP Group has just launched a project to expand the MLP Bucharest West logistics park. The new building of about 16,000 sqm, being developed on a speculative basis, is scheduled for completion by the year’s end.
In May, work commenced to expand MLP Group’s logistics park near Bucharest. The project is being developed on a speculative basis, which means no pre-leases. The new facility, now under construction at the MLP Bucharest West park, will provide about 16,000 sqm of modern space. The completed space will be delivered for occupancy by this year’s end. In accordance with MLP Group’s standard, all new projects must meet the highest environmental sustainability standards and are to be BREEAM certified. The general contractor for the project is Sagex Construct.
Romania’s industrial market is changing at a rapid pace. Tenant demand remains strong, although it is characterized by lengthy decision-making attributable to challenging economic conditions. On the other hand, the dynamics of the local logistics and retail markets call for quick action and ability to customize warehouse space at very short notice.
“Bucharest is Romania’s most attractive region and its main industrial hub. Even amid the economic uncertainty, demand for industrial and logistics space remains fairly robust. For this reason, we decided to proceed with the expansion of MLP Bucharest West and deliver an additional 16,000 sqm of GLA on a speculative basis. We want to have ready-made, instantly available space to be able to flexibly respond to business demand. Our focus is on target tenants from the light manufacturing and logistics sectors,” said Olga Melihov, Country Head Romania, MLP Group.
Tenant demand for warehouse space is driven mainly by the trend of nearshoring, continued demand for e-commerce and need to restructure supply chains. Interest in new properties is also propelled by the scarcity of vacant space, which offers room for speculative construction.
MLP Bucharest West is a Class A logistics & industrial park located at the ring road in Bucharest’s northwestern district of Chitila. Developed on an 18.3-hectare plot, it will ultimately provide 99,000 sqm of warehouse and light industrial manufacturing space. As part of phase one, a 22,000 sqm unit was delivered for occupancy in 2021 and is now fully leased up. Phase two was launched in May, designed to deliver about 16,000 sqm of new space by the end of 2023.
MLP Group is growing its operations in Poland, Germany, Austria and Romania, with plans to expand its business into new markets. In keeping with its build & hold strategy, MLP Group retains completed logistics parks in its portfolio and manages them. All projects undertaken by MLP Group are distinguished by very attractive locations of the logistics parks, application of built-to-suit solutions, and support given to tenants during the lease term.
MLP Group is a leading developer, owner and manager of high-quality logistics and industrial parks and light industrial business parks, operating in Poland, Germany, Austria, and Romania. The Company owns and manages a portfolio of properties with around 1.74 million sqm of existing and permitted ready to build rental space. As at the end of the first quarter of 2023, its Net Assets Value was over PLN 2.5 billion. MLP Group has been listed on the Warsaw Stock Exchange since 2013 (ISIN: PLMLPGR00017).
With offices in Warsaw, Munich and Vienna and Bucharest, the Company offers bespoke, tailor-made real estate solutions to clients and tenants in various industries, including logistics, retail, e-commerce, manufacturing and automotive.
