Panattoni Develops its First Logistics Project in Hungary to Tap Surging Last-Mile Demand
Panattoni, Europe’s largest deployer of institutional capital and developer in the industrial and logistics real estate sector, has started construction of its first speculative logistics development in Hungary - a 17,300 sqm last-mile logistics warehouse in Törökbálint, about 12 kilometres from Budapest city centre. The launch of Panattoni Park Budapest City West follows the company’s market debut in Hungary at end-2021 with the acquisition of two land sites totalling 100,000 sqm near the capital.
The Panattoni Park Budapest City West project comprises four modern logistics facilities ranging in size from 3,350 sqm to 5,550 sqm as well as 20 dock levellers, 55 parking spaces and five Electric Vehicle charging points. Panattoni is targeting zero carbon emissions from 2025 and a BREEAM ‘Very Good’ sustainability certification for the property. Budapest-based Market Építő Zrt. has been selected as the general contractor of the project.
László Kemenes, Head of Panattoni Hungary, said: “We entered the Hungarian market because we see a huge opportunity to tap into the rising demand for modern, sustainable distribution centres. The local logistics real estate market is far less developed than in neighbouring countries and the last-mile segment in and around Budapest is particularly underserved. With this development we are focusing on occupiers seeking high quality space in smaller sized lots, located very close to the city. Panattoni Park Budapest City West’s superior green credentials and exceptionally good location for transport connections will attract urban logistics operators targeting the large catchment area of this part of Central Europe.”
Panattoni Park Budapest City West is situated in one of the most popular logistics and retail locations around the city connected to the M0 ring-road and with excellent transport links to the rest of the country and the M1/M7 motorways to Vienna and Zagreb. The site is easily accessible by public bus and train services, while the neighbouring retail area provides a wide range of services.
The Park will offer units starting from 1,000 sqm upon completion in Q1 2023. Other sustainability features include enhanced wall and roof insulation, a water recycling system and LED lighting.
Hungary’s distribution centre market is still underdeveloped, with average logistics warehousing space just 250 sqm per 1,000 inhabitants, compared to 900 sqm in the Czech Republic and 550 sqm in Poland, or Germany’s 920 sqm per 1,000 inhabitants. Budapest’s logistics market catchment area contains around 3.3 million people inhabitants, or roughly similar in size to the other regional centres of Vienna, Bratislava and Zagreb combined. These three cities are all accessible from Panattoni Park Budapest City West within a two to four-hour drive.