Panattoni Announces Large-Scale BTS Development

December 5, 2023, Budapest – Panattoni Hungary, the local subsidiary of Europe’s leading industrial property developer, announced today that it will build a 32,000 square meter built-to-suit logistics center in the Budapest metropolitan area, commissioned by a national retail chain. This new development is Panattoni’s third BTS project in Hungary and one of the largest BTS agreements in the local logistics market in 2023. The customized logistics center will serve the retail chain's domestic distribution network with state-of-the-art storage and material handling solutions. The sole investor in the project is the OTP Real Estate Investment Fund, which plans to implement the investment under the Baross Gábor Capital Program.

Panattoni Hungary was awarded the commission to build the new logistics center following a thorough and detailed selection process. The BTS development, located in close proximity to the capital, will feature not only the usual logistics center functions (warehouse, offices, truck parking, and social facilities) but also a next-generation Pick-Tower system, which will ensure the efficient movement of the retail chain's products within the warehouse.

“This agreement is an important milestone and reference point in Panattoni’s domestic history. This is not only our third and largest built-to-suit project, but it is also one of the largest logistics BTS agreements in the market this year. The strength of the Panattoni brand and the right strategic choices show that after just two years in the market, we are entering 2024 with our own projects in Törökbálint, Gyál, and Herceghalom, along with several BTS agreements,” said László Kemenes, CEO of Panattoni Hungary. He added that the new logistics center, with its 21st-century automated solutions, will serve a logistics team of 500 people and is expected to positively impact the operational efficiency of the retail chain's entire nationwide network.

During the development, Panattoni will build 28,000 square meters of warehouse space and 4,000 square meters of office space on a 120,000 square meter plot. The development, targeting a BREEAM Very Good rating, aligns with the environmental awareness and sustainability principles of the client, investor, and Panattoni.
László Kemenes also noted that the newly built center will have a significant positive impact on the local community and economy and could become a market benchmark for industrial real estate development and retail logistics.

The project investor is the OTP Real Estate Investment Fund, which, in line with its diversification policy, is increasing the share of logistics properties in its portfolio by fully financing Panattoni’s BTS development. The Fund’s decision was strongly influenced by the global recognition of the Panattoni brand, its decades of industry experience, and the long-term partnership with the retail company.

Construction of the logistics center is expected to begin soon, with the center becoming accessible to the client in November next year, and the final handover scheduled for September 2025.

Further informations:  Péter Oláh | prego kommunikáció |  olah.peter@publicrelations.hu