WDP announces the construction of three new distribution centers in Romania. A distribution center for Decathlon will be constructed on a newly acquired plot to the north of Bucharest. The project consists of a warehouse with a surface area of around 22.000 sqm with a mezzanine of an additional 6.000 sqm plus another 10.000 sqm for further expansion.
Also, an agreement has been signed for the development of two new construction projects on a new plot in Cluj-Napoca for logistics service providers KLG and Gebrüder-Weiss, of 5.000 sqm and 2.400 sqm respectively (with additional expansion in the future). After completion, the property portfolio of WDP in Romania will be expanded to a total of 15 buildings, summarizing around 150.000 sqm. The total assets, including land and solar panel parks, thus achieve a value of more than 150 million euros.
Decathlon centralizes activities in WDP distribution center
On a newly acquired plot in the north of Bucharest – between the city and the airport – WDP, via its joint venture WDP Development RO, led by Jeroen Biermans, is starting the development of a distribution center for Decathlon. The new construction project consists of a warehouse with a surface area of around 22.000 sqm with a mezzanine of an additional 6.000 sqm plus another 10.000 sqm for further expansion. Decathlon will supply its shops from this location and has subscribed to a lease of 30 years (with first termination date after 7 years). Completion is projected for the first half of 2017.
Start logistics park in Cluj-Napoca region
From now on, WDP will also be present in the West of the country, considered the industrial heart of Romania, close to the city of Cluj-Napoca, located to the north of the Carpathians, at an intersection of motorways with good connections to western Europe. An agreement was signed with logistics service provider KLG for a new construction project of around 5.000 sqm. KLG will rent the warehouse on the basis of a 5-year lease contract. A second project of approximately 2.400 sqm (with additional expansion for the future) will also be constructed at this location for Gebrüder-Weiss, an international player in the field of transport and logistics which is already present in Romania, similarly based on a 5-year lease. The completion of this building is planned for the first quarter of 2017. After completion by an external property developer, the buildings will be added to the WDP property portfolio. WDP is assuming an initial gross rental yield for the three newly announced projects of around 9%. Property portfolio of WDP in Romania grows to more than 150 million euros After the completion of these projects, the value of WDP’s property portfolio in Romania (including the solar panel parks) will increase to more than 150 million euro. This increase reflects the recent revival and strong growth potential of the Romanian economy in the coming four years. With 15 buildings at nine strategic locations, a customized property solution is currently being offered to production and logistics companies such as Siemens, DPD, Federal Mogul, Roquet, Beckaert Deslee, Faurecia, Yazaki, Emag, Pelzer-Pimsa, Inter Cars, Quehenberger Logistics and Röchling based on long-term leases. The property is thus being made available to companies from a variety of sectors. Additionally, solar panels were installed on the land of the sites of Sărulești and Fundulea, as well as on the roofs of a number of sites, together generating a capacity of 15 MWp.
Joost Uwents, CEO of WDP: “The property portfolio that is being expanded in Romania can boast high quality buildings that offer a suitable customized property solution to a large number of top tenants, and this allows us to enjoy a strong cash flow and a stable yield via the lease incomes. A fine basis for the further growth of the property portfolio.”