CTP News News & Views for the CTP Community No.2 CEE Publication | Summer 2016 4—5 Amazing paper car cut-out inside! Feature story story Feature Driven by Passion Past, Present and Future of the Automotive Industry in Central Europe What’s 3 11 12 16 Financial Worker Accomodation Robust Romania Electric Vehicles: Inside: Fundamentals Fills a Market Gap Moving Fast in New Market the Road Ahead Taking care of the basics now Pilot Project Rolls out Successfully Drive Faster, Further, Greener ensures long-term stability Word from the CEO 2 3 Business News s a passionate car lover and amateur Financial racer myself, the theme of this issue of the CTPNews sits close to home. The growing automobile industry’s roots and recent blossoming in CEE have been an engine of growth for the CTPark Network, which Acontinues to thrive. Across the network, occupancy has accelerated to 90%. Fundamentals Demand continues to increase and we are constructing to meet it in Bucharest, Brno and Bor, amongst other key locations, driven in large part by automotive manufacturers Total Loans by Bank (%) Positive market circumstances and the low interest (value in EUR Thousands) and Tier One suppliers. 2014 2015 environment have enabled us to agree new financing 8,319 Commerz Real AG 16,382 PPF banka a.s. Since the last edition of the CTPNews, we have 1,156,359 1,558,714 8,400 Immigon Portfolioabbau AG 8,101 Oberbank AG 8,501 Oberbank AG strengthened our regional position, particularly in Romania. terms with most of our financial partners. Leveraging 100% 29,151 36,946 Všeobecná úverová banka a.s. 50,078 Landesbank Hessen-Thüringen Girozentrale 51,963 Our team were awarded SEE Industrial Developer of the Year 90% these positive trends, we have successfully lowered 74,156 ING Bank N.V. in Bucharest mid-April. We are currently constructing more 91,962 124,748 80% Raiffeisenlandesbank Niederösterreich-Wien AG than 50,000 m2 in Romania to BREEAM specifications. our cost of funding, while extending loan maturities, 128,906 141,240 Deutsche Pfandbriefbank AG In Slovakia, we finished construction for automotive clients 70% thereby creating a strong foundation for the long- 76,357 in Žilina and Voderady, and we are commencing construction 153,934 Société Générale Group term financial stability of the CTP group. 60% on a 10,000 m2 brownfield site for HP Pelzer in CTPark 123,724 160,073 Československá obchodní banka, a.s. Bratislava. Our home market, the Czech Republic, remains 50% 154,678 strong in terms of leasing and construction. 40% 236,281 74,918 UniCredit Bank Czech Republic and Slovakia, a.s. Continuing to imporve company operations, we are Over the past 12 months, we successfully laid a sound financial foundation for the 30% introducing new IT systems and procedures, which, when company’s growth. Having expanded our loan commitments overall from 1.1 to 1.5 billion EUR, 236,876 Raiffeisen International Group we were able to also balance those loans more evenly across a wider spectrum of lenders, thereby 20% concluded, will support the company on its natural next stage reducing exposure risk among all parties. Loan rescheduling also resulted in a 2% reduction in short of evolution. term liabilities, providing the company time and cash to focus on absorbing acquisitions completed 10% in the previous year—all the while maintaining our healthy LTV ratio in line with past trends. In order to support our continued growth, the CTP team 399,480 319,899 0% Erste Group has also expanded. As of 31st December, our headcount was 2014 2015 For more information, contact 187. As of 31st March this year, we number 205. Growth in the [email protected] team has mainly come in our regional markets, and within our financial and accounting teams. To accomodate this growth we opened new offices in Prague where we are consolidating Loan Growth over Time and Maturity our financial and accounting services. We invite you to come of Interest-bearing Loans (In EUR thousands) and visit us, where we will be happy to show you around. Importantly , no fewer than 10 employees celebrate 10 1,558,714 Total years with CTP this June. I would like to personally thank these individuals for their ongoing trust and commitment to the 1,071,000 company. Your contributions are noted and highly valued. 1,004,000 941,000 886,000 842,947 Following years 53%Loan to Property Remon L. Vos, FRICS Value Ratio CEO 534,699 3–5 years Remon VosL. Vos, can FRICS be reached at 77,792 2 years 103,276 [email protected] 1 year 2011 2012 2013 2014 2015 Remon Vos can be reached at [email protected] Q1 2016: CTPARK NETWORK Key deals Romania: Developer of the Year Courtyard by Marriott CTPark Aš confidential 22,000 m� AWARDS Done Deals Clients Move in CTPark Plzeň Lidl 30,000 m� CTP was delighted to pick up the Industrial Developer of the Coming to Spielberk CTPark Modřice PPG 6,000 m� Year, in this year’s SEE Real Estate Awards, honouring the Q1 2016 was positive for CTP in terms of CTP is readying the handover of best and most active companies from the whole region. CTP’s CTP and Marriott Hotels have agreed leased deals closed. Deals comprising more a number of facilities to new clients, CTPark Bor Autoneum 8,000 m� Hanu Laurentiu-Catalin was on hand to pick up the award. that Tower II at Spielberk will be the than 260,000 m² were concluded, taking with a significant proportion from the CTPark Bucharest West OTZ 15,000 m� home for a new Courtyard by Marriott lettable area within the CTPark Network to automotive industries, including JCI in CTPark Deva Laboratoarele Fares Bio Vital 3,000 m� hotel in Brno. Fitout is currently 3.5 million m² across seven CEE markets. CTPark Kvasiny, IAC in CTPark Zákupy, CTP News awarded underway and the international hotel is The Czech Republic registered the most and others in CTPark Plzeň and CTPark CTPark Voderady confidential 10,000 m� CTP’s award-winning marketing team are at it again. This expecting to open late 2016. The modern activity, but the new markets Romania, Voděrady. Faurecia took up residence in CTPark Žilina Faurecia 3,000 m� time around, the CTP News printed newsletter has picked up four-star hotel at Spielberk will offer Slovakia and Hungary posted positive CTPark Žilina, IBM in Ponávka, and Iron CTPark Tatabánya confidential 27,000 m� a special award in the Fenix Content Excellence awards, in 201 luxury rooms, and help position the results, also. Mountain in CTPark Bucharest West. Czech Republic. CTP’s Čestmír Přindiš and Tom Kostelac did park as a key business destination in the the honours. region. Feature story 4 5 AUTO INNOVATORS Central and eastern Europe’s car industry has OF CENTRAL EUROPE emerged from a turbulent past and has returned nternational carmakers of all But on the other hand, it is the shapes and sizes have been lured region’s suppliers, skilled workers The people I to central and eastern Europe. and network of technical universities to its historical glory days, becoming one of Korean brands Hyundai and Kia that have given confidence to have facilities in Nošovice and Žilina manufacturers. behind the machines the most modern and productive automotive respectively, Volkswagen occupy a central location in Bratislava, and The growth of automotive in the manufacturing hubs in the world. France’s Peugoet Citroën sits in region has been fuelled, in part, by the Slovakia’s Trnava region. shift from low to mid-value production and by parts of the supply chain They have been drawn by the region's moving from Western Europe, as well better labour cost ratios, improving as ancillary services to the industry Hans Ledwinka infrastructure and high productivity, such as by Continental, who invested Chief Designer Tatra government incentives, and access into three R&D sites across the region, to the single European market. one of which sits in CTPark Ostrava. Hans Ledwinka (14 February 1878 – 2 March 1967) was an Austrian automobile designer. He started his career as a simple mechanic, and later studied in Vienna. Ledwinka returned to work at the Tatra company in then Czechoslovakia, and between 1921 and 1937 he was their chief design engineer. Ledwinka made a number of major contributions to automobile design, including the development of the streamlined car body. He met often with close friend and business rival, Ferdinand Porsche, and the question of creative seepage still lingers today. Of Ledwinka, Porsche admitted “… sometimes I looked over his shoulder and sometimes he looked Carland over mine” while designing the Volkswagen Beetle. There is no doubt that the Beetle Central Europe bore a striking resemblance to the earlier Tatra. In 2007, Ledwinka was inducted in the European Automotive Hall of Fame. Béla Barényi Béla Barényi (1 March 1907 – 30 May 1997) was an Austrian engineer of Hungarian and Austrian heritage. He is regarded as the father of passive safety in automobiles. Barényi was known as a prolific inventor. There have been claims that, when he retired on 31 December 1972, he had more than 2000 patents, twice as many as Thomas Edison. Heading the pre-development department of Daimler-Benz from 1939 to 1972, he developed e.g. the concept of the crumple zone, the non-deformable passenger cell, collapsible steering column, safer detachable hardtops etc. and other features of Mercedes-Benz automobiles. Barényi was nominated for the award of Car Engineer of the Century in 1999 and inducted into the Detroit Automotive Hall of Fame in 1994.