“We acquired this land for a future logistics development due to its location in close proximity to the A1 highway and an existing retail hub – Jupiter City, Metro and Arabesque Pitesi,” said Ionut Bordei, CEO of Element Group.
Element Group is one of the most active local developers, with projects on the office, retail and logistics & industrial segments.
The group is one of the shareholders of One United’s office division, it develops retail parks under the brand Element Development, and industrial and logistics parks in Bucharest and secondary and tertiary cities under the brand Element Industrial.
Element Industrial is in the process of selling warehouses in Chitila for EUR30 million to Fortress REIT, the main shareholder of NEPI-Rockcastle.
Element Industrial is currently developing a logistic hub in the Buftea-Chitila area where it has delivered a 50,000 sqm industrial park, and recently started a EUR37 million investment in a 72,000 sqm industrial park.
The company also acquired land in view of Class A logistics developments in Braila, Craiova, Pitesti, and Ploiesti.
Modern industrial stock in Romania reached 5.1 million sqm in 2020, with 574,000 sqm delivered last year, according to CBRE data. Nearly half the stock is owned by developers CTP, WDP, and P3.
For the next five years, CBRE expects industrial stock in Romania to grow by more than 50%, to 8 million sqm. Developers currently have nearly 400,000 sqm of industrial spaces under construction.