Romania is turning into a hub for logistics and the additional investment in infrastructure will increase the country’s industrial stock going forward, concluded speakers of the logistics panel of SEE Property Forum 2022, held in Bucharest.
Olga Melihov, Country Head Romania, MLP Group, who chaired the panel, outlined updates on the local industrial and logistics market. According to her, Romania still has room for development in a bid to recover the gap compared to other regional markets.
Infrastructure is unlocking the labour force, explained Andrei Jerca, Managing Director, Element Industrial. “We are providing infrastructure to our tenants to have their facilities close to labour pools or markets,” said Jerca. This year, Element Industrial is completing 50,000 sqm of industrial spaces in Bucharest, with 100,000 sqm in permitting phase or under construction in Bucharest and three other cities.
Gijs Klomp MRICS, Business Development Manager, WDP, pointed out that construction prices are becoming more predictable. He added that Romania is starting to attract regional hubs, which cover not just the local market but also Bulgaria and Serbia. Production will also become more important. “Warehouse space in Poland cheaper than in Romania but labour costs are higher,” pointed out Klomp.
"In logistics, you have a smaller tenant-per-property ratio. However, you have more boxes and might end up with more SPVs that own the projects," explained Andreas Kozma, Founder & CEO, iREMS International AG. He added that in the current environment marked by higher energy costs, companies need to have tight control with expense costs.
Silviu Stratulat, Managing Partner, Stratulat Albulescu explained that production facilities are moved into more US-oriented countries, such as Romania and Poland. “Investment funds have shifted their interest in logistics from office and retail - they want to buy Class A logistics projects in Romania, for instance,” according to Stratulat.
