CBRE: Industrial real estate sector has seen increased interest from Chinese investors
CBRE, the world leader in commercial real estate services, has confirmed growing interest in the local market in the industrial sector from companies with a dominant share of Chinese capital. This interest is due to increasing expansion by these companies in the Czech Republic, both in manufacturing plants and logistic facilities. This mainly concerns investments in the automotive, electronics and e-commerce sectors.
The BWI Group and Hisense Companies are examples of companies with a dominant share of Chinese capital that have decided to locate their production plants in the Czech Republic. Overall, 80 thousand sq m of industrial space has been leased since January 2015, of which 49 thousand sq m accounts for 2016 alone. Currently, we are recording additional demand and we expect the lease of at least another 70 thousand sq m by the end of the year.
The first industrial building for Chinese investors was launched in the middle of last year in Panattoni Park Cheb by the BWI Group. The Panattoni Europe development project is funded by the Accolade Group and the building will be a long-term lease. The Chinese company, BWI Group, produces shock absorbers for the automotive sector there, which will operate in a space of about 16,000 sq m by the middle of this year, resulting in at least 300 new jobs. Another lease is for industrial space measuring almost 15,000 sq m and production by another Chinese company is starting in the industrial park of the CTP development company in Pilsen. The investor is Hisense, screens and other electronics producer.
In addition to Chinese manufacturers, logistics firms are interested in locating their facilities in the Czech Republic. The local market offers a range of quality warehouse space, mainly nearby the capital city and the Central Bohemian Region. Another contract has already been signed with a Chinese investor for about 20,000 sq m of warehouse space lease in Prologis Park Prague Airport in Jeneč, with CBRE currently seeing even higher demand.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.