Last year, the industrial developer CTP increased rental revenue in the Czech Republic, but net profit fell

Last year, the net profit of the industrial and logistics real estate developer CTP in the Czech Republic fell by 16 percent to approximately 12.3 billion crowns (483.8 million euros). On the contrary, income from rents, which make up a significant part of the company’s sales, increased by roughly seven percent year-on-year to approximately 6.2 billion crowns (247 million euros). This follows from the company’s press release and the statement of company representatives. CTP manages four million square meters of rentable space and holds a 27 percent share of the Czech industrial real estate market. In addition to industrial premises, it also rents offices, mainly in Brno and Ostrava.

“We perceive changes in demand. Although logistics and e-commerce are not growing as in the past, they still have their place and growth potential. In the Czech Republic, we are building over 400,000 square meters of new premises, which demonstrates our confidence in this region, which offers an advantageous geographical location, an educated workforce and a developed network of services and infrastructure,” said Jakub Kodr, CEO and Commercial Director of CTP in the Czech Republic, in a press release.

CTP has over 600 tenants in the Czech Republic, two-thirds of the new contracts the company concluded with existing clients last year. The total was 550,000 square meters, of which approximately 350,000 square meters were new premises. One of the largest transactions was the lease of 53,000 square meters in CTPark Blučina, where the Czech branch of the Taiwanese electronics manufacturer and developer Inventec settled. In the Ostrava Hrušov park, the company then leased 40,000 square meters to Vitesco Technologies, a manufacturer of drives and electrification in the automotive industry. But the biggest transaction was the renewal of contracts with an unnamed information technology distributor in the Bor park, which rents 54,000 square meters there.

In addition to industrial premises, CTP also leased office buildings in the Czech Republic. Currently, according to the press release, the group is the largest owner of offices in Brno, where it is also continuing their further construction. “Although it may seem that our main focus is industrial-logistics buildings, we have long understood that clients need flexibility and multifunctionality,” added Kodr.

The company’s most significant transaction in terms of administrative premises was the lease of 5,000 square meters in the Vlněna campus in Brno to the multinational IT company Kyndryl. However, CTP also moved its operations to Ostrava, where it leased over 2,000 square meters in the IQ building to the Clubco coworking center.

CTP was founded by Dutchman Remon Vos in 1998 in the Czech Republic, and seven years ago the group entered other markets in the region. In addition to the Czech Republic, where the developer has the largest presence, it operates in, for example, Slovakia, Hungary, Serbia, Romania, and Poland. It leases 11.8 million square meters of space in ten countries. In the first half of last year, CTP overall reduced its profit by 4.2 percent to 469.6 million euros, i.e. roughly 11.3 billion crowns. Net rental income increased by 26.8 percent to 268.3 million euros, i.e. 6.4 billion crowns.

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Source: e15