4 CTP FEATURES 2 INSIDE CTP 3 CTP EXPANSION FEATURES

Final phase construction works at Spielberk. The apex of the Spielberk siteplan includes the Tower and hotel complex, which anchor the site by the riverside park and will be connected by a footbridge to the old town.

• New deals

• CTZone concept draws first tenants

• CTP regional activity

• Ben Godwin Tech Data

• CTP sets development trends in the regions

• CTP redefines regionalcityscapes

• Serious about Safety

CTP undertakes bold restructuring

Spielberk reaches for the sky!

Construction recently began on the Towers at

CTP’s flagship office development, the Spielberk Office Centre, in Brno. Each building will oper-

ate in a separate asset class, with one being prepared as a

Hotel, the other as an office tower.

The office Tower will offer some 15,000 m2, spread

over 21 floors which, at a height of 80 metres, will

become the tallest building in Brno. It will, crucially, be 6

metres taller than the current record-holder – the Faculty

of Mechanical Engineering of the Brno University of

Technology.

The Hotel Tower building – situated on the banks of

the Svratka river – will have 16 above-ground floors and

3 floors of underground garages. There will be approxi-

mately 200 rooms, including luxury double bedrooms and

unique suites. Completely equipped terraces overlooking a

placid lake will serve for company meetings, presentations,

private parties, etc.

Total investment of CTP Invest in this project will

exceed EUR 150 million in 2008 alone.

Clients in the news: Infosys Technologies adds 400 talented employees to Spielberk

Spielberk Office Centre played host to Czech President Václav Klaus, as CTP Managing Director Remon Vos greets Mohandas Pai of Infosys Technologies at the ceremonial opening of the outsourcing giant’s new expanded branch in Brno.

CTP, an international investor and developer

based in the Netherlands and parent company

of CTP Invest, the leading commercial devel-

oper in the Czech Republic, recently outlined plans for a

significant restructuring move.

Its group of companies will now consist of CTP

Invest, specialists in property development and manage-

ment; CTProducts, a manufacturing division; and the

recently established property fund, CTP Property. This

move has been initiated in order to allow easier manage-

ment of the long-term appreciation of CTP’s extensive

property portfolio, which will be valued at over EUR

1 billion.

Late April, Spielberk Office Centre played host to

Czech President Václav Klaus, as he attended the

ceremonial opening of outsourcing giant Infosys

Technologies’ expanded branch in Brno.

Brno Infosys BPO, the Czech outsourcing branch

of Infosys Technologies Ltd, was first launched back in

August 2004, when they took up premises in CTP’s flagship

office development, the Spielberk Office Centre.

Infosys have hired an additional 400 technology

experts, who will offer in-house outsourcing services as

well as specialised information technologies to clients

across Europe.

Mohandas Pai, the Head of Infosys BPO and a mem-

ber of the Board of Directors, said:

“Our centre in Brno is exactly in accordance with our

strategy to develop centres in different parts of the world so

that we can be close to clients. Together with our large cen-

tres in India, we can provide a wide global network which

allows Infosys to work 24 hours a day, 7 days a week.

“In Brno we also have the opportunity to find high-

ly educated, talented and language skilled professionals.

We are delighted to be here and we are looking forward

to providing our clients with the hidden potential Brno

has to offer.”

CTP took over Multidisplay at the new CTPark Hranice,with an eye on further expansion of the entire facility.

Regional HQ in Spielberk villas with excellent lakeside views.

CTP is expanding its 440,000 m2 Hranice facility, whereunits from 5,000 m2 will be available from Autumn.

Any analyst will tell you that the one-time eco-

nomic divides which separated former East from

West are rapidly disintegrating. The fault line

for this resurgent renaissance is taking place right here

in our Central and Eastern European backyard. Priding

itself on innovation and flexibility, CTP have risen to the

challenge, developing real estate solutions as and where

they are needed:

SlovakiaWith a 5.5 million-strong population and 2006 GDP

growth figures pushing 8%, Slovakia is the emerging star

of 2007’s CEE real estate sector.

Humpolec-based developer CTP Invest recently

announced a 50-hectare land acquisition in Prešov, the

third largest city in Slovakia. The first buildings in this

new CTPark will be available at the beginning of 2008.

Located close to Košice, CTPark Prešov is ideally located,

with good connections to both Poland and the Ukraine.

CTP build on eastern promise

CTPark Hranice

CTPark Krupka

Last edition of CTP News, we reported on the sale

of former Philips tech park, Hranice, to CTP. EUR

40 million was invested into the purchase of this

site and CTP Managing Director, Remon Vos, told CTP

News that a further EUR 5 million would be set aside for

investment into the current production facilities. In the

coming months, assembly lines at Multidisplay will come

to focus on the future of LCD screens.

CTP recently started additional investments into the

440,000 m2 facility, zoned for light-industry or logistics.

Units from 5,000 m2 will be available from Autumn this

year for lease.

CTP is proud to announce further expansion of its

integrated network of CTParks and CTPoints in

strategic locations throughout the Czech Republic

and CEE, with a new location, CTPark Krupka.

The 40-hectare CTPark Krupka is located less than

1 hours’ drive north of Prague towards Dresden and

Hamburg. With the completion of the D8 highway at the

end of last year, this location has become more sought

after than ever.

CTP has signed contracts with various interested

investors, one of whom is logistics powerhouse DHL.

Construction work at Krupka has already begun, and CTP

plans to invest up to EUR 100 million into CTPark Krupka

by the start of 2008.

1

Commercial developments, innovative solutionsIssue III / 2007Prague, Czech Republic

Visit our new website

www.ctpinvest.com

www.ctparknetwork.com

CTPark Krupka, the newest addition to the CTPark Network, will host logistics powerhouse DHL.

NEWS

continued on p. 3

continued on p. 3

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CTPark Bor

CTPark Brno

CTPark Brno South

CTPark Divišov

CTPark Hranice

CTPark Humpolec

CTPark Krupka

CTPark Lipník nad Bečvou

CTPark Mladá Boleslav

CTPark Modřice

CTPark Ostrava

CTPark Pardubice

CTPark Plzeň

CTPark Prešov

CTPark Žilina

Projects in Ostrava, Plzeň, Brno planned and under construction

CTPoint České Velenice

CTPoint Jihlava

CTPoint Liberec

CTPoint Louny

CTPoint Okříšky

CTPoint Písek

CTPoint Pohořelice

EDITORIAL

Remon Vos Managing Director,

CTP InvestJosef LhotskýProject Manager

CTP Invest

WHO’s WHO in CTP

NEW DEALS: for up to date information go towww.ctparknetwork.com

My work in CTPinvest covers the entire scope of

project manager duties, ranging from project

design coordination during clients’ negotia-

tions to final inspections of finished buildings and

ultimate hand-over to tenant. On top of that, I am also

heavily involved in other CTP dedicated services, such as

fit-out works, technology implementation coordination,

etc. I continually draw on existing experience from past

builds and look to improve upcoming projects together

with our design team.

As project manager with CTP, I am stationed mainly

in the Brno region. Brno has always been a key part

of CTP’s development plans, so I have a great deal of

responsibility to ensure the company’s excellent work

continues there.

This year we are finishing construction works in

CTPark Brno, and our team is focusing on readying the

CTPark Brno South zone in Šlapanice. This zone, with

200 hectares, represents the largest industry/logistics

parks within the CTPark Network. For the next several

years this park will need much of our efforts, skills and

experience. This CTPark is set to become one of the most

important in the country and, situated as it is the beat-

ing heart of Brno’s logistics and production ‘zone’, will

provide thousands of jobs for the entire region. CTP’s

potential is very clear – as the company continues to con-

firm its position as a major player on Czech industrial

developers market, it will be seen as the favourite solu-

tion for many foreign and domestic investors. This, in

turn, will bring excellent possibilities of interesting work

for everyone from managers to the smallest suppliers.

Josef Lhotský can be reached at josef.lhotsky@ctpinvest.com,

+420 606 653 517

The last few months have been incredibly busy

for us here at CTP. We have been working hard

to build on our dominant market share in the

Czech market, as well as eyeing significant opportunities

abroad.

Take-up in our CTParks, Points, Zones and Office

facilities has continued to increase, with a number of deals

hitting the shelves recently. On page three you can read all

about recent activity, such as: Techdata, Arjowiggins,

Solectron, and Moeller. Having hosted the Dutch Ambassador in June last year, CTP was delighted to wel-

come Czech President Václav Klaus to the ceremonial

opening of outsourcing giant Infosys’ expanded premises

at the Spielberk Office Centre, Brno, late April.

Our Network also continues to grow. Since the last

edition of CTP News, we have added a number of new

CTParks to our tally. CTPark Krupka (40 hectares) on

the newly completed D8 highway towards Dresden has

already proven particularly popular amongst investors,

including DHL.

CTPark Hranice looks set to become one of the big-

gest success stories of recent years. Since purchasing the

former Philips tech park (see “CTP buys former Philips

tech park”, CTP News issue II/2007), we have continued

to invest heavily into the site and, come Autumn, we will

have units of 5,000 m2 and upwards available for lease.

With over 1,000 electrical engineers available for employ-

ment in the immediate vicinity, we look forward to report-

ing regularly on future take-up.

Last, but certainly not least, we’ve recently initiated

a new restructuring at CTP (see “CTP undertakes bold

restructuring”) to allow easier management of the long-

term appreciation of our portfolio, which will stand at

over EUR 1 billion.

Remon Vos can be reached at radka.nekvasilova@ctpinvest.com,

+420 602 762 124

Following the trend of the last few years, the CEE

region continues to attract investors with their

vibrant economies. GDP growth in CEE remains

much stronger than in the traditionally well-to-do EU

countries. According to recent forecasts, this trend will

continue and some countries will record still further

increases in the coming years.

In line with this, CTP will continue its expansion in

the region. Our Romania office has been preparing a

number of deals and buying land in order to establish our

award-winning CTPark Network there. With only 410,000

m2 of industrial space in Romania (as of Q4 2006), com-

pared to 1,610,000 m2 in the Czech Republic, the potential

for major development is clear.

We have opened offices in Poland, as well as

Hungary – where take-up is growing. Along with the

Czech Republic, Poland and Hungary have attracted the

majority of capital investment in the region.

Eddy Maas can be reached at ctp@ctpinvest.com

CTZone concept draws first tenants ECONOMIC WINDS

By Eddy MaasSenior Partner

CTP Invest

Josef Lhotsky

The pilot CTZone located in Brno is well under

way. Of the 7 buildings planned, 3 have already

been completed and are showing good take-up.

Worldwide digital print and sign producer Spandex is

already in, and a further 3 clients are readying for hand

over: CatCut, Ziehl-Abegg and Lektronix.

The CTZone concept is the most recent addition to

CTP’s development portfolio. Billed as the next evolution

of mini-CTParks, CTZones bring together a mix of retail,

office and warehousing space all under one roof. Situated

close to city centres, CTZones are typically targeted at

SMEs, and will provide these smaller enterprises with a

modern platform in which to carry out integrated opera-

tions from a single downtown hub. CTZones are divided by

lease units, called CTBoxes. Of the remaining 4 buildings,

3 will be designated solely for office use, where company’s

will have the option to choose the most suitable space

solution for their needs spread over 1 or 2 floors, or even

a whole CTBox. In keeping with the planned relocation of

the Brno main rail station, CTP Invest are hoping that their

Brno CTZone investment will help revitalise the immediate

area, bringing innovation and inspiration to the growing

number of street smart entrepreneurs looking to locate to

this blossoming business destination.

The unique CTBox offers a 3-in-1 solution for SMEs and large businesses alike with showroom, office and warehouse space.

Worldwide digital print and sign producer takes up space at the new CTZone Brno - the next evolution in mini CTParks.

SPANDEX’s client reception in it’s new CTBox.

CTP Structure

CTP News Issue III / 2007 INSIDE CTP 2

CTPark/CTPoint Tenant Business type Total leased (m2) Completion

CTPark BOR Tech Data extension warehouse 16,200 December 2007

CTPark BRNO Confidential warehouse / manufact. 2,900 September 2007

CTPark HUMPOLEC Confidential warehouse / production 7,000

CTPark HRANICE Confidential warehouse / production 16,000 August 2007

CTPark OSTRAVA ABB warehouse / production 2,340 May 2007

Schenker warehouse 2,300 April 2007

CTPark BRNO SOUTH Confidential warehouse / manufact. 1,150

Confidential warehouse / manufact. 1,150

Confidential warehouse / manufact. 1,150

Confidential warehouse / manufact. 1,150

CTPoint JIHLAVASumitomo Electric Hartmetallfabrik

warehouse / manufact. 1,160 August 2007

Confidential warehouse 2,940 July 2007

CTPoint POHOŘELICE Confidential warehouse 11,000 September 2007

CTPoint KRUPKA Confidential warehouse / production 4,100 January 2008

CTPoint LOUNY Confidential warehouse / production 3,200 August 2007

CTPoint BRNO APM-Automotive warehouse 900 July 2007

LeKronix Ltd warehouse / repair cent. 450 May 2007

Spandex SyndiCUT warehouse 450 March 2007

ZIEHL-ABEGG warehouse 450 May 2007

Autogard warehouse 450 June 2007

AVAILABLE SPACE:CTPark/CTPoint

Land plots available (ha)

m2 Completed / construction

m2 Leased m2 Availablem2 Construction

in 2007

CTPark BOR 180 256,780 181,545 75,235 N/A

CTPark PLZEŇ 30 100,903 95,109 5,794 9,400

CTPark KRUPKA 35 24,100 9,760 14,340 11,150

CTPark DIVIŠOV 15 35,200 35,200 0 10,000

CTPark HUMPOLEC 15 33,100 33,100 0 7,000

CTPark MODŘICE 43 163,355 163,355 0 38,000

CTPark BRNO 38 156,107 142,107 14,000 0

CTPark BRNO SOUTH 200 40,000 25,336 14,664 0

CTPark HRANICE 40 35,000 16,000 19,000 0

CTPark LIPNÍK N. BEČVOU 18 N/A N/A N/A 20,000

CTPark OSTRAVA 120 135,143 63,653 71,490 0

CTPark PARDUBICE 16 N/A N/A N/A 15,000

CTPoint LOUNY 5 11,276 3,216 8,060 0

CTPoint LIBEREC 5 5,600 5,600 0 15,000

CTPoint MLADÁ BOLESLAV 10 N/A N/A N/A 25,000

CTPoint PÍSEK 5 2,400 2,400 0 0

CTPoint ČESKÉ VELENICE 5 3,100 3,100 0 0

CTPoint JIHLAVA 10 N/A 7,081 15,140 5,016

CTPoint OKŘÍŠKY N/A 12,886 12,886 0 0

CTPoint POHOŘELICE 10 46,020 25,000 10,755 0

NEW DEALS: for up to date information go to www.ctparknetwork.com

B O R P L Z E Ň

B R N O

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Earlier this year, Solectron Corporation, providers

of product design, supply chain management, manu-

facturing and aftermarket services moved into their

new facility at CTPark Plzeň. The facility comprises some

6,000 m2 of warehouse space with the option to expand up

to 40,000 m2 depending on future business needs.

Western Czech Republic, and the Plzeň region in

particular, continues to exhibit strong incentives for the

local and international investor alike. In addition to offer-

ing enviable access to the established markets of Western

Europe, the region is also known for its highly skilled and

available workforce at salary levels that maintain a com-

petitive advantage over their counterparts neighbouring

Germany.

Solectron

Portola CTP Regional Activity

Seaborne Plastics arrive at CTPark Brno with a

reputation as one of the leading producers of ther-

moformed plastics in Europe, servicing sectors as

diverse as the automotive and lighting trades, leisure,

medical and movie industries and remaining unrivalled in

their production of clear plastic mouldings.

Managing Director of Seaborne Plastics for the last

sixteen years Martin Bollands explains not only the rea-

son for their expansion into the Czech Republic, but also

their continued success in such a competitive industry.

CTP build on eastern promise

This edition of CTP News, I spoke with Ben Godwin,

Senior Vice President of Real Estate and Corporate

Services at Techdata. US-based Techdata is cur-

rently ranked 107th on the FORTUNE 500 list, services

more than 90,000 customers in over 100 countries and, at

the last count, generated USD 21.4 billion in sales for its

fiscal year ending Jan 31st 2007.

With Ben Godwin

ben.godwin@techdata.com

Spring Interview Season: Techdata’s Ben Godwin

Enjoying a sunny lunch on the patio outside Axis Ostrava.

Hranice’s strategic location is ideal for companies involved in high-tech, manufacturing and electronics.

Late February, Arjowiggins officially moved into its

new 25,000 m2 facility at Bor, the farthest west of

CTP’s Parks. They join the growing number of mul-

tinationals setting up shop there, including Tech Data,

Bridgestone, Fuji Trans and Schenker.

Arjowiggins’ Bor facility will house ‘converter’ opera-

tions, entailing the converting of paper rolls into a more-

advanced class of communications material suitable for,

for instance, the publishing & pharmaceutical sector (thin,

opaque paper) and professional businesses (carbonless

paper).

CTP Invest recently announced further expansion

of its CTPoints network, with a new location at

Louny, a town to the north east of Prague towards

the German border. CTPoint Louny will be home to

Portola, a company specialising in injection molding of

plastic closures, caps and jars, servicing mainly the cosmet-

ics industry (beauty) and partly the food and beverages

business. Portola’s customers include: AVON, Procter and Gamble, Estée Lauder, Altermed, Armani, L’Oreal, and Saint Goban.

Initially, Portola will lease 3,200 m2 at CTPoint

Louny, though within 2 years will be interested in a further

2,000 m2. Employee numbers there are expected increase

from 60 to about 150 within the same time frame.

Arjowiggins

CTPark Hranice

The location and praxograph of CTPark Hranice

– strategically located in Central Moravia, one of the

fastest growing local economies in central Europe – is

ideal for companies involved in high-tech, manufactur-

ing and electronics. Clean rooms and office space are

also available. Thanks to Hranice’s established reputation

in the region, more than 1,000 electrical engineers with

prior experience at the former Philips plant are currently

available for employment. CTPark Hranice is also located

close to 3 major technical universities in Ostrava, Brno

and Olomouc.

As the economies of the CEE region continue

to grow, so does CTP Invest, who are further

expanding their developments in Slovakia with

a 50-hectare land acquisition in Prešov, the third largest

city in Slovakia. CTPark Prešov will total approximately

CTPN: Mr. Godwin, you recently decided to expand

your warehousing facility in CTPark Bor from its cur-

rent 35,867 m2 to a generous 52,067 m2. What exactly

does this mean for the European arm of Techdata’s opera-

tions?

BG: In Bor, we operate a warehouse facility from

where our clients expect an ‘order today, delivery tomor-

row’ service. As Techdata’s European operations con-

tinue to grow, our facility in CTPark Bor will prove

an invaluable asset for reaching the developing econo-

mies of Central and Eastern Europe. With the class and

quality of facility offered to us in the Czech Republic

and the county’s enviable location in the heart of new

Europe, it is easy to see why we made the decision to

locate in Bor.

Seaborne Plastics in CTPark Brno

CTP also owns and operates a second CTPark in

the eastern Slovakia, in Žilina. The company has moved

quickly to capitalise on the emerging trends and it now

finds itself at the top of the heap.

RomaniaAccording to a recent press release, CTP Invest Romania,

the Bucharest-based subsidiary of leading Czech com-

mercial real estate developer CTP Invest, has significantly

intensified its activities these past months. Currently a

number of deals are being prepared, and CTP’s Romanian

office is engaged in hiring staff and buying land. CTP’s

presence in Romania will look to continue the growth of

the award-winning CTPark Network as well as to invest

into other properties throughout this new EU member.

Romania has one of the largest markets in Central and

Eastern Europe (with over 21 million inhabitants). It boasts

an attractive location and easy access to the former CIS

countries, the Balkans, the Middle East and North Africa.

It is also situated at the junction of 3 prospective European

transportation corridors. Romania also boasts a skilled

labour force, with solid knowledge in technology, IT and

engineering. In addition to rich natural resources – includ-

ing fertile agricultural land, oil and gas – Romania also has

important potential for tourism.

An additional 20,000 m2 of integrated office space

is currently under construction at Axis Office Park, Ostrava. Existing tenants of the Axis con-

cept include: Hyundai, Danplan, TMS and GE Money.

Axis Office Parks represent a unique opportunity for

CTPark tenants, allowing tenants to house larger business

support services in strategic proximity to manufacturing

operations.

CTP News Issue III / 2007 CTP EXPANSION 3

Axis Office Park Ostrava

CTPark BOR

CTPark PLZEŇ

CTPark KRUPKA

CTPark MLADÁ BOLESLAV

CTPark DIVIŠOV

CTPark HUMPOLEC

CTPark PARDUBICE

CTPark MODŘICE

CTPark BRNO SOUTH

CTPark BRNO

CTPark HRANICE

CTPark LIPNÍK N. BEČVOU

CTPark OSTRAVA

CTPark ŽILINA

CTPark PREŠOV

CTPoint LOUNY

CTPoint LIBEREC

CTPoint PÍSEK

CTPoint ČESKÉ VELENICE

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Portola

The new CTPoint Louny will be home to Portola, which willh

will lease 3,200 m2, with another 2,000 m2 expected withinit

2 years.

Slovakia & RomaniaRomRomaniaRom

CTP recently announced a further 50 hectares land acquisitionland acquisitionin Prešov, the third largest city in Slovakia.

Meanwhile, CTP’s presence in Romania will look to continuemania wilthe growth of the award-winning CTPark Network as well as toCTinvest into other properties throughout this new EU member.ug

MooelleroooeellerlleleroMoeller has reached operational status in its new 7,600 mreached operational status in itreached operational status in its ras rhas reached operational status in ithashasha 2

warehouse facility in CTPoint Pohořelice in South East Czech ility in CTPoint Pohořelice in ility in CTPoint Pohořelice in Ss ility in CTPoint Pohořelice in Se fafae Republic.c.

Axis Office Park OstravaAn additional 20,000 m2 of integrated office space is currently en

under construction at Axis Office Park, Ostrava.

CTPark Hranice

CTP recently started additional investments into the 440,000int

m2 facility at CTPark Hranice, zoned for light-industry orl

logistics. Units from 5,000 m2 will be available for lease fromla

Autumn of this year. Its location in Central Moravia is idealen

for companies involved in high-tech, manufacturing andch

electronics.

CTPark Bor, housing over 1.8 million m2 of space, is home to one of Techdata’s 13 European distribution hubs and one of the fastest growing Parks in the region, with CZK 5.5 billion already invested and another CZK 2.8 billion planned by 2009.

Seaborne Plastics

Joining the expanding community at

CTPark Brno, Seaborne Plastics have

installed state of the art machinery in

their 5,000 m2 production facility.

ArjowigginsArjowiggins officially movedinto its new 25,000 m2 facil-ity at Bor, joining the growingnumber of multinationals set-ting up shop there.ting up shting up shting up sh

Techdata

Techdata recently decided to

expand its warehousing facility

in CTPark Bor from its current

35,867 m2 to a generous 52,067

m2. The facility will prove an

invaluable asset for reachingnvaluable asset for reaching

the developing economies of de ping economies

Central Europe.Ce

Solectron

Solectron Corporation, providers of product design, supply prchain management, manufacturing and aftermarket servicesent, mamoved into their new facility at CTPark Plzeň.heir

“Seaborne Plastics operate on a basis of combining

sensible investment in the finest quality machinery and

personnel, with exceptionally high production and engi-

neering standards. We use these principals in every aspect

of our operation and this was of course the case with our

decision to come to Brno.

“A suite of brand new state of the art machinery has

been installed in our 5,000 facility producing the most

efficient production base imaginable.

“We needed a manufacturing centre with a work

force skilled enough to be trained to our high standards

and a location central enough to service our many clients

throughout mainland Europe. An exhaustive and at times

exhausting search for the right location led us to Brno

and we quickly realised that it had everything we were

looking for.

“Our investment in Brno demonstrates our commit-

ment to fully servicing the European market with obvious

attendant benefits to our clients in the Czech Republic

and throughout the continent both through increased

capacity and localised production.”

continued from p. 1

continued from p. 1

continued on p. 4

CTPark Prešov

CTP News Issue III / 2007 CTP FEATURES 4

CTP Invest, spol. s r. o., CTPark Humpolec, 396 01 Humpolec, Czech Republic, TEL: +420 565 535 565, FAX: +420 565 533 501, WEB: www.ctpinvest.com

To subscribe online to the CTP NEWS visit the news section at www.ctpinvest.com/subscribe or email ctp@ctpinvest.com

The tallest building in Ostrava, CTP’s newest office develop-ment will be located in the heart of this vibrant region.

CTPark Bor played host to the local fire brigade, training tocontinually improve the Park’s fire safety standards.

CEE Country Comparisons

Axis Office Park

Serious about safety

CTPark Prešov

CTP Invest sets trends in logistics parks development in the regions

CTP redefines regional cityscapes

CTP Invest recently announced they would be

further expanding their operations in the Silesian

region, with the construction of the tallest office

tower in Ostrava. As the first tower complex of its kind in

Ostrava, CTP’s new development will offer a unique oppor-

tunity for companies to take advantage of the city’s status

as the region’s premier future business destination. Located

on the crossroads of the commercial triangle formed by

Poland, Slovakia and the Czech Republic, Ostrava is the

country’s third largest city with a long tradition of skilled

labour and a highly educated and available work force.

Within walking distance of Ostrava’s historical old

town, the tower will connect, via a pedestrian tunnel, to

the new Karolina multi-development and offer easy access

to the main D47 highway, the airport and the main train

station. Underground parking and its location on main

city tram and bus routes will add to the new office tower’s

overall appeal as the best address in town.

With over 100,000 m2 of industrial, technological and office space at CTPark Plzeň, the Park plays host to Selectron, Maurive Ward, Bodycote, DHL, MOL, Logistics, Sumitrans and Wacker, among others.

Remon Vos, mayor of Prešov JUDr. Pavel Hagyari, Mrs. Ľubica Tomášová and Martin Fodor, project manager

Axis Office System: 20,000 m2 of integrated office space now available in Ostrava.

Logistics and Warehousing market: Pan CEE regionT

he modern warehousing market in the CEE region

has grown significantly over the last four years.

The region has drawn attention of investors and

developers throughout the entire EU. GDP growth in CEE

is still much stronger than in the richest EU countries. In

the Czech Republic, Hungary, Poland and Slovakia,

manufacturing (especially export-led) played a key role

and had the strongest contribution to growth. Private

consumption increased in the region, so the retail sector

also performed very well in recent years. Further good

economic forecasts for the CEE countries will result in the

continuing growth of the logistics property sector in CEE.

Logistics stock in CEE has tripled over the last four

years. The amount of space leased doubled compared to

2005, with the Czech Republic reaching record take-up. At

the end of 2006 the total space delivered in CEE amounted

to 8.75 million m2. Poland and Russia are major contribu-

tors, representing almost 60% of the modern stock. In the

more mature markets of the Czech Republic and Poland, a

trend for regional expansion was recorded, as well as a ten-

dency to relocate modern distribution centres in second-

ary locations further from the capital cities (ed: see “CTP

sets development trend in logistics parks development in

the regions”). According to developers’ plans, the market

is expected to increase by a further 20% in 2007, reaching

some 12.24 million m2. Russia, the Czech Republic and

Poland will remain the leaders in the region.

Vacancy rates

Vacancy across the CEE market has been fluctuating dur-

ing the year and at the end of 2006 it decreased to some

5.25%. The vacancy rate in Hungary is the highest in the

region, totaling over 10%.

Rents

Overall, rents in a majority of the countries of the region

are still very competitive compared to Western European

countries. The lowest rents are in regional Poland and

Bratislava at EUR 3.20 per month per m2 and EUR 3.80

per month per m2 respectively.

Investment

Over EUR 370 million was invested in 2006. Poland, fol-

lowed by the Czech Republic and Hungary attracted the

bulk of the capital invested.

“Demand for modern logistics space in CEE coun-

tries has remained strong during 2006. Poland, the Czech

Republic and Russia account for as much as 85.3% of the

whole take-up last year”, said Jaromír Smetana, Director of

DTZ Czech Republic.

source: DTZ research

Over the last number of years, CTP has continued

to expand at an almost exponential rate, both in

terms of products offered as well as operational

locations. CTP are currently present in the Czech Republic,

Slovakia and, more recently, Romania. One of CTP’s key

attributes is flexibility, meaning that, in the coming years,

the company will look for further opportunities and market

openings in other CEE countries.

Czech RepublicStrong developers’ activity and record take-up – the amount

of space leased doubled compared with 2005. CTP owns

and operates numerous facilities in the Czech Republic.

Hungary Market still mainly around Budapest. Take-up slightly

improved compared to the previous year.

Ukraine Shortage of adequate space for modern occupier require-

ments. Many of the warehouses are still Soviet-type facto-

ries and plants.

Russia High levels of demand. New development is limited, the

market remains in its beginning stages. A built-to-suit

trend is the current supply of modern space.

Romania First transactions have been concluded in Bucharest. It

is still an undeveloped market, with the Western part of

Bucharest preferred. The most significant activity to date

The Axis Office Park System was created to

provide cost-efficient, high-quality office facilities

in areas with low labour costs and high growth

potential. Axis Office Park facilities allow international

companies to leverage the ‘near-shoring’ opportunities

available in the Czech Republic and provide high quality

new office space to local growth companies.

Strategic locations are chosen that provide local transit

links to the nearby centre city as well as direct highway

access. Growth cities such as Brno, Ostrava and Plzeň,

were selected for Axis Office Park developments based

on their situation along strategic transport routes and the

availability of highly skilled local labour. The Axis system

provides the ideal setting for technical and research inten-

sive facilities in addition to administrative or other service

related businesses at a competitive cost.

Maintenance is a key part of any CTPark man-

ager’s day to day job, with Park managers con-

stantly training to better look after all aspects of

Park properties.

In an ongoing training series aimed at improving Park

fire safety, CTPark Bor recently played host to the local

Bor fire brigade. CTP co-financed the fire station’s pur-

chase of additional equipment and arranged for extensive

fire training excersises on the Park’s premises, not only

to improve on the fire brigade’s response readiness, but

also to help CTP in its quest to continually upgrade safety

standards at all CTParks. “Safety is a serious priority at all

our properties, as is working with the local communities,”

said CTP managing director, Remon Vos.

500,000 m2 with up to 200,000 m2 of built-up space, all of

which will be available by the first half of 2008. A man-

agement team has already been put in place to offer the

CTPark Network’s usual building options: Flexi-Space,

Warehouse Space and, of course, Custom-Built solu-

tions.

Prešov’s strategic position in eastern Slovakia makes it

an ideal location to access the eastern markets of Poland,

Hungary and Ukraine. And with the cities of Košice,

Budapest and Bratislava in close vicinity, it will be sure to

serve as a vital commercial hub.

Prešov boasts close to 100,000 inhabitants in a region

of approximately 1 million, with the economy of the

district primarily characterized by mechanical, electrical

engineering and clothing industries. In addition, a sig-

nificant number study at the nearby Technical University

in Košice.

The direct highway D1 (E70) connects Prešov to

the second largest city in Slovakia - Košice. A significant

improvement to road transportation has been achieved

with the opening of the Branisko tunnel, enhancing access

to this key location.

CTP Invest, the leading industrial developer in

the Czech Republic, was the first to recognize

the untapped potential of the regions. Its Western

Bohemian CTPark Bor, with over 1.8 million m2, has

now become the fastest growing park in the region. CTP’s

total investment in the Park has been CZK 5.5 billion up

to this date, with an addition CZK 2.8 billion planned

by 2009.

Bridgestone’s 54,000 m2 logistics and warehouse

centre is the largest development of its kind in the

Czech Republic, while Techdata’s similarly sized build-

ing employes 300 staff itself. Other tenants include:

Arjowiggins, Maurice Ward, Happich and Schenker

and Sumitrans.

The Park currently employs 600 people, with that

number expected to reach 1,000 by the end of 2007 and

2,300 by 2009. The Park benefits from its location close

to the German border, right at the D5 highway, while the

nearby town of Tachovsko, with an 8% unemployment

rate, also sees a significant boost.

“As a major commercial property developer, we are

committed to the growth of the region and we work

closely with the national and regional authorities to com-

municate directly to investors the advantages of locating

operations in central and eastern Europe and the ben-

efits that our developments have already put into place,”

Remon Vos, CTP Invest’s managing director, says.

CTP Invest has also completed more than 100,000 m2

in the industry, technology and office park Borská pole in

Plzeň. The Solectron and Maurice Ward facilities – which

combined will up to 600 jobs – are currently being final-

ized. Tatung has chosen Borská pole and will employ up to

350 people. Other tenants include: Bodycote, DHL, MOL Logistics, Sumitrans and Wacker. Altogether the Park

will employ 1,500 people by the end of 2007 and 2,050 by

the end of 2009.

CTBoxes for local entrepreneurs will also be offered

soon. “We have decided on the Czech Republic after

evaluating opportunities in the whole region. The Czech

Republic benefits from its location, infrastructure and

qualified workforce, particularly in high-tech production,

logistics and R&D,” Remon Vos explains.

Job OpportunitiesCTP Invest is looking for

proactive

Sales and Project managers to join our growing company

with opportunities throughout

the CEE region.

Please send CV to:

radka.nekvasilova@ctpinvest.com

or call for interview application.

has been built-to-suit schemes. CTP is currently preparing

a number of deals in Romania, as well as actively seeking

out and investing in strategic future land holdings.

Slovakia Dominated by automotive manufacturing with a little

slowing of the market. CTP owns 2 CTParks in the Slovak

Republic: CTPark Prešov and CTPark Žilina.

PolandCurrently the market is maturing and developing through-

out the country.

Industrial transactions Split by country – 1998 - 2006

source: DTZ research

continued from p. 3

Czech Republic

Hungary

Romania

Poland

8%

38%

31%

23%