News Article CTP industrial lease logistics nearshoring SEE Serbia
by Property Forum | Industrial

Serbia’s emergence as a manufacturing base with a skilled cost-effective labour force in close proximity to neighbouring EU markets is driving a surge in leasings and built-to-suit developments across CTP’s four industrial and logistics parks in the country.

Petar Kolognat, Head of Business Development at CTP Serbia, said: “The growing outsourcing of Germany’s industrial supply chain to CEE markets, combined with the nearshoring trend, where companies are opting to build resilience into their global supply chains by locating manufacturing closer to their main markets, is generating strong demand for industrial and logistics space along the axis of CTP’s core markets from the Czech Republic to Romania, but it is also resulting in upward pressure on wages and other costs. Serbia’s position outside the European Union means it is highly competitive on labour costs, with a skilled workforce strategically located next to neighbouring EU markets. International companies are increasingly taking note of these advantages, encouraged by supportive government policies. We are seeing a growing number choosing to locate in Serbia and in CTParks, which offer the most modern and sustainable production and logistics facilities and broadest network available in this market.”

Petar Kolognat

Petar Kolognat

Head of Business Development Serbia

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Significant CTP Serbia leasings in 2022

In the fourth quarter of 2022, German multinational and engineering company Bosch took delivery of a 20,000 sqm built-to-suit facility in CTPark Belgrade West to produce motors for electronic window lifters and Milšped, the leading 3PL group, leased 16,000 sqm at the same location. CTP also handed over a 26,500 sqm BTS building to Japanese electromotor giant Nidec at CTPark Novi Sad in Serbia’s second-largest city. Total developments of 60,000 sqm are due to be fulfilled for Nidec and its sister company Nidec-Elesys at CTPark Novi Sad.

At CTPark Kragujevac in central Serbia, Chinese automotive supplier YanFeng has signed a leasing agreement for a third production unit of 30,000 sqm, where construction started in December 2022. Meanwhile, in CTPark Belgrade North, around 25,000 sqm of the planned total development of 100,000 sqm at the park was completed last year and Slovenian 3PL InterEuropa, the leading supplier of complete logistics services in Serbia and southeastern Europe, took a lease on 14,400 sqm of space. The facility will be used as a regional distribution centre for EU markets by Gorenje – Hisense, a manufacturer of household appliances.

CTP is also progressing with the development of CTPark Belgrade City, located in the largest municipality in the capital, less than 5 km to the city centre and only 5 km from Belgrade Airport. The location is ideal for small and medium-sized enterprises in the FMCG, Pharmaceutical, E-commerce and last-mile logistics sectors owing to its inner-city location, along with excellent connections to the highway and surrounding urban traffic arteries. The first phase of the programme will be completed by the end of this year, with units starting from 2,500 sqm including showroom, office, and warehouse space.

Marko Ivovic, Plant Manager at NIDEC, said: “It was a pleasure to journey, together with CTP, from zero to almost 27,000 square metres in the construction of the first Nidec factory in Serbia. We have managed to build a strong partnership between these two companies, milestone after successful milestone, finishing the first phase of our investment on time, and staying in constant communication with our partners from CTP. Very soon, the time for a further expansion of Nidec Electric Motor Serbia will come and I look forward to cooperating with the local team of CTP again.”

Lars Braeuning, BOSCH Global Real Estate, Integrated Projects, Planning and Realisation said: “CTP has built our production facility in Serbia tailor-made to Bosch’s requirements. The project was delivered on time and within budget. The local CTP team on site was also willing and able to accommodate additional needs from Bosch, even with a tight timeframe. Their approach is highly appreciated.”