MLP Group has a number of projects in the pipeline in the German market, which it sees as a particular beneficiary of the nearshoring trend, said MLP Group CEO Radosław T. Krochta. The company also maintains plans to present a new strategy in Q1 this year.
“In the German market, we will soon be launching MLP Spreenhagen (this is our second project near Berlin) and MLP Business Park Schalke in Gelsenkirchen, as well as MLP Idstein. In the Austrian capital, our first city logistics and business park on the Austrian market, MLP Business Park Vienna, is currently under construction. We have a number of further projects in the German market in the pipeline,” said Krochta.
He added that the group is at an advanced stage of negotiations for the purchase of further plots of land in Hesse and the North Rhine-Westphalia region. In our country, in turn, it will develop further projects in Warsaw, Zgorzelec, Poznań, Wrocław or Łódź, among others.
“The warehouse industry has entered the new year in good shape. At the same time, this allows us to look positively at the entire current year. Demand recovered strongly in Q3 and Q4 2023 and remains at a good level, with a low vacancy rate. The favourable situation of the sector is reinforced by the nearshoring trend, the beneficiary of which is the German market in particular. The country’s corporations, which hitherto had a large exposure of operations in the Far East, are now moving production back to Germany. In order to reduce labour costs, they will also locate part of their business in other countries, including Poland. Therefore, a rebound in demand should also be visible here. We also expect a faster finalisation of lease agreements than recently,” the CEO pointed out.
MLP Group is preparing to present a new strategy, Krochta also informed.
“Our goal is to continue the dynamic development of our property portfolio. We will soon present a detailed strategy for the next few years. We are consistently investing in the purchase of new land, expanding parks and launching new projects,” said Krochta.
He added that geographically the priority for the group will remain the development on the German and Polish markets.
“By 2026, we want to equal the value of the properties we own in these two countries. This will be supplemented by operations in Romania, Austria and in new locations where we will enter with our offer as part of the ongoing expansion, including the Netherlands,” said Krochta.
In an interview with ISBnews in November, the CEO said that the presentation of the assumptions of the new strategy until 2027 is planned at the turn of the year and informed that it will include result targets, but no changes in the directions of development. The portfolio structure will remain, with Germany approx. 45%, Poland 45% and 10% of other markets such as the Netherlands; the portfolio will continue to include only projects in major cities.
MLP Group is a developer, owner and manager of logistics and industrial parks and business parks for light industrial production, operating on the Polish, German, Austrian and Romanian markets. The company has been listed on the WSE since 2013. Its consolidated revenues reached PLN 279 million in 2022.
Source: MLP Group and ISBnews
