Warehouses De Pauw is set to expand its property portfolio in Romania to 280,000 square meters of warehouse and production space worth about €145 million, by the end of 2017.
The construction of at least 115,000 square meters of warehouse space is underway, according to a company release. A total of 47,500 square meters of new projects is in progress.
The company is expanding the existing Aricestii Rahtivani site in the Ploie?ti region with the development of a warehouse comprising 4,500 square meters of office space for car parts specialist Kamtec under a 10-year lease agreement. The site is expected to be delivered in the first quarter of 2018.
In Oarja, Warehouses De Pauw is developing a distribution center for CEVA Logistics, which will lease more than 11,000 square meters under a three-year agreement following delivery in the fourth quarter. The company will also expand its site in Oarja for existing tenant Röchling, which will see more than 7,700 square meters of distribution space as part of a 10-year lease agreement.
Meanwhile, a 32,000-square-meter project has commenced in Roman for supermarket chain Profi on a 10-year lease. The scheme will be delivered in the fourth quarter. Profi will also be taking up space under a 10-year long-term lease at the expanded logistics park at Cluj-Napoca. Warehouses De Pauw is constructing a refrigerated distribution center with offices, spanning more than 15,000 square meters, set to be delivered in the first quarter of 2018.
The company is also building a logistics space of more than 4,700 square meters for Arcese under a five-year term. This project is due to be completed in the third quarter.
In addition, Warehouses De Pauw is developing a project in Bucharest for Carrefour under a 10-year lease. The roughly 11,000-square-meter distribution center will be expanded to 16,000 square meters and will be delivered in the fourth quarter.
Warehouses De Pauw's tenant in the Netherlands, Kuehne + Nagel, will be taking space at a newly developed distribution center, totaling about 5,000 square meters in Timi?oara, under a five-year lease agreement.
For all projects under construction, the company expects an initial gross rental yield of about 9% based on a total investment of roughly €73 million.