Belgian logistics and industrial space developer WDP has announced various projects under way in Romania for big retailers such as Auchan, Carrefour, Decathlon, Profi , but also from other sectors such as Pirelli or Lecom Aggreko.
Among the projects completed over the course of the first quarter of 2020, there are also two in Romania, for Auchan, in Stefanestii de Jos, near Bucharest (a 77,000-sqm area following a EUR 45 M investment) and for Aeronamic Eastern Europe in Sibiu (4,000sqm, EUR 4 M investment).
WDP has not concluded though any acquisitions over the course of the first quarter of 2020.
WDP expects the total of projects under development, representing an investment volume of approximately 466 million euros6 and boasting a total surface area of around 637,000 m², to generate an initial gross rental yield of around 6.9% (an initial gross rental yield of around 6.1% in Western Europe and 8.4% in Romania). This pipeline is fully pre-let (97%) and the average term of the lease contracts amounts to 9.8 years.
Craiova – A new warehouse of approx. 58,000 m² is being built for Profi, which is already a WDP client in Romania. After delivery – scheduled for the second quarter of 2021 – the retailer will lease this site on the basis of a ten-year contract. WDP projects an investment budget of some 33 million euros.
Timisoara – Also for Profi, WDP is developing a warehouse site in Timisoara, to be completed by the end of 2021. This new distribution centre will have an area of approx. 57,000 m² and will be operational by the end of 2021. Profi is signing on to a ten-year lease for this. The amount invested by WDP comes to approx. 38 million euros.
Other projects under development in Romania:
Buzau Ursus for Breweries, planned delivery date – 3Q20 4Q20, 21,000sqm, investment of EUR 13 M.
Deva Carrefour, planned delivery date 3Q20 4Q20, 45,000sqm, EUR 24 M investment.
Bucharest – Stefanestii de Jos Decathlon, planned delivery date 4Q20 1Q21, 10,000sqm, EUR 5M.
Bucharest – Stefanestii de Jos Alcar,planned delivery date 3Q20 3Q20, 10,000sqm, EUR 5 M.
Bucharest – Stefanestii de Jos Lecom, planned delivery date 2Q20 2Q20, 2,600sqm, EUR 1M.
Bucharest – Stefanestii de Jos Aggreko, planned delivery date 1Q20 2Q20, 2,000sqm, EUR 2 M.
Craiova Profi n.r., planned delivery date 2Q21, 58,000sqm, EUR 33 M.
Slatina Pirelli, planned delivery date 3Q20 3Q20, 62,000sqm, EUR 40M.
Timisoara Profi n.r., planned delivery date 4Q21, 57,000sqm, EUR 38 M investment.