Laza Kovacevic, Managing Director of CTP Serbia - In 2023, we doubled the number of square meters in our portfolio, for next year we plan to develop new locations

They have a very ambitious development plan - to end the year with almost 550,000 built-up square meters in their portfolio.

We talked about the completion of the construction of the largest logistics park in Serbia, CTPark Belgrade City, and plans for the future CTPark Jagodina with the Managing Director of the company CTP Serbia, Laza Kovacevic, who has been in this position since May. He revealed to us the secret of success, why green construction is important, but also what the company`s plans are for the future

The construction of the largest logistics park in Serbia, CTPark Belgrade City, will be completed by the end of the year. How challenging was it to build 135,000 square meters in one year?

- The preparation and development of the project was a challenge for us. To build 135,000 square meters in one year, in one location, practically within the urban area of the city, it means that you ensure continuity of work and that you pay special attention to every detail and specifics, which are brought by a large number of people on the construction site.

The advantage of CTPark Belgrade City, in addition to the always top quality construction, is its position. It is located in New Belgrade, on Kvantas, in an inner-city location, and due to its proximity to the airport, excellent connections with the highway and all major city roads, it is ideal for companies in the FMCG industry, pharmaceuticals, e-commerce, as well as for "last mile" logistics.

What is the tenant interest in this location?

- I can freely say that we are very satisfied with the interest given that currently more than 80% of the total area has already been rented out. The offer includes units of 2,500 m² of warehouse space, with offices and exhibition space, and the companies Mercator S, Mercata VT, Wagen International and Lesnina S have already secured their places within this park.

Are you also very active in Simanovci?

- We are actively developing CTPark Belgrade West in Šimanovci, where four buildings with a total area of over 55,000 m2 have been built and fully let. In this park right next to the highway, we are currently building a large hall of 38,000 square meters that will be ready for occupancy in the first quarter of next year.

Are you planning the development of logistics facilities in Novi Sad, given that you have only built production facilities so far?

- In April, we handed over a production facility of 20.000m2 in CTPark Novi Sad, which was custom-built and leased to the Japanese company Elesys.

Along with that project, we started to develop a new location - CTPark Novi Sad East, which will offer A Class storage space to the market in that city for the very first time. The first building of 25,000 square meters will be available already in December.

In addition to Belgrade, Novi Sad and Kragujevac, you will soon include the location CTPark Jagodina in your portfolio. What is its importance?

- In Jagodina, we are planning the construction of a large industrial park on a land of nearly 24 ha, which is located only one kilometer from the highway and two kilometers from the city center. The design for the first building is in the final stage. Most of the future building is intended for the production complex of a well-known company from Germany, while about 15,000 m2 will be intended for logistics, bearing in mind the attractiveness of the location itself. We are planning the completion of the first building in the second quarter of 2024.

Are you planning to have over half a million square meters in your portfolio by the end of the year?

- In Serbia, we have so far built 13 A-class industrial facilities with a total area of over 285,000 square meters in five different locations. When we start construction in Jagodina, we will have almost 280,000 square meters in the realization phase at six different locations. The current year will be remembered for doubling the number of square meters in our portfolio.

What`s the secret to this success?

- One of the important decisions we made some time ago is the shift to "in-house construction". We developed a strong team and assumed the full role of a general contractor, primarily in the Belgrade and Novi Sad regions. We organized our own procurement and selected a proven team of suppliers that we have built up over the past five years.

Surely this is another challenge for us - the volume of work is undoubtedly greater, but we have the ability to adapt, redirect our forces according to needs and thus be significantly more efficient and flexible.

Every CTP building in Serbia is classified as green. How did you achieve this?

- First of all, the high construction standards that CTP is guided by. We always emphasize that when we build, we build for ourselves because CTP is the owner of the land, the owner of the buildings on it, and that status will not change. This approach itself goes hand in hand with energy efficiency and every CTP building in Serbia is characterized as green and energy efficient.

CTP is currently the only company in Serbia and Central-Eastern Europe that has certified every newly built building with BREEAM, with high energy efficiency ratings.

All future facilities will also be certified and solar panels will be installed on all facilities. By the end of the year, we plan to have solar panels installed on 10 of our different buildings in Serbia and to supply at least 20 MWp to the system. Then, that every building that is built a year later gets a solar power plant on the roof.

What else will be the focus of the CTP company in Serbia in the period ahead?

- Until the end of the year, our focus will be on supporting tenants during the building handover phase, which is a process that requires a strong team, supported by many years of experience and the trust that clients place in us during each new project.

The fact that our network of 1000+ tenants has a retention rate of 92%, while 80% of our new business comes from our existing tenant network, confirms that statement further.

And for next year?

- For next year, the focus will be on the development of new locations, first of all CTPark Novi Sad City, and then other cities that we currently do not have in our portfolio, so that we will be ready to respond to the new opportunities that the "nearshoring" trend will bring. Judging by the reports of colleagues from CTP Asia, we have reason to be optimistic.