Belgium"s WDP to Invest 150 Mln EUR in Logistic Projects

Closed-end real estate investment company Warehouses De Pauw is launching its activities in Romania by purchasing 5 sites, with a total surface area of almost 950,000 sqm, split over three strategic locations close to the capital, Bucharest.

The total purchase price for the 5 sites amounts to 16.5 million EUR. The 5 sites are situated at three different locations in the vicinity of Bucharest, along the roads to Constanta, Pitesti and Ploiesti respectively.

Two of the sites (195,000 sqm and 250,000 sqm) are located in the Ploiesti industrial zone and two other sites (175,000 sqm and 99,000 sqm) lie alongside the road that links the Black Sea port of Constanta with Bucharest. The fifth site is located on the road to Pitesti (225,000 sqm).

WDP will develop the projects in Romania through WDP Development RO, in a joint venture with the contractor and Romania specialist Jeroen Biermans, and will then manage the sites itself through WDP Romania.

WDP Development RO is planning to begin the construction of semi-industrial premises in the fall on 2 of the 5 sites with a surface of 5,000 sqm to 10,000 sqm by mid-2008. Together, the investment value of these 5 sites has the potential to grow to at least 150 million EUR.

WDP CEO Tony De Pauw on the choice of Romania: "We are opting for Romania because of its outstanding growth potential. Romania is a large country with a very young and dynamic population. The rapid development of the country is creating a great demand for logistics premises. Studies indicate a demand for 200,000 sqm of new warehouse space per year, certainly for the next five years."

Warehouses De Pauw currently has approximately 900,000 sqm in premises in its portfolio. This international portfolio of semi-industrial and logistic buildings is spread over 70 sites at prime logistical locations for storage and distribution in Belgium, the Netherlands, France and the Czech Republic. WDP has been listed on Euronext Brussels since 1999 with a market capitalisation of almost 400 million EUR. Since 2004, WDP has also been listed on Euronext Paris.