New investment of TRADE ESTATES REIC in an International Distribution Centre in Aspropyrgos
TRADE ESTATES REIC, following an information note from the Office of Prime Minister Kyriakos Mitsotakis, announces the development of a new International Distribution Centre (DC) in the area of Aspropyrgos, Attica, which will serve the distribution of IKEA products in Central and Eastern Mediterranean countries.
Through the new investment, TRADE ESTATES REIC continues the implementation of its investment plan, strengthening its strategy in the pillar of new generation Distribution Centers serving Retail Groups, while the significant size of the development is an important addition to its portfolio, following the operation of the two successful Centers in Schimatari and Oinofita and Viotia.
The 50,000sqm Distribution Centre, which will be owned by Trade Estates REIC, will be designed and developed in cooperation with Ten Brinke Hellas, while the operational management will be carried out by Trade Logistics, a company of the FOURLIS Group. The total investment amounts to EUR 70 million (building facilities and mechanical equipment) and is planned to be included in the Recovery Fund and the Business Park (BRP) provisions of the Ministry of Development.
This is a new generation Distribution Centre with a focus on sustainability as all the energy (100%) for its operation will be Green (Renewable Energy) with a zero CO2 footprint. According to the investment plan, construction of the project will start in Q2 2024 and is expected to be completed in Q3 2025. The size of the building in its initial phase will be 50,000 sqm and will have 55,000 modern pallet spaces.
The Centre will start operating immediately upon completion of the construction works. The implementation of the project will create 100 new permanent jobs, 18 of which will be for highly skilled personnel to staff the IT, Logistics and AI departments. The Centre will initially serve the supply of IKEA stores in Bulgaria, Greece, Jordan, Israel and Cyprus, with the aim of adding more countries in the future.
Trade Estates CEO, Mr. Dimitris Papoulis, said: “Trade Estates REIC through this investment further consolidates its position in the Distribution Centres sector. With the aim of sustainability and the use of the most modern technologies, we are creating one of the most modern Distribution Centres in Europe with one of the largest international companies, Inter IKEA, as our partner. This investment will increase the Gross Asset Value of our company’s portfolio by 45m. EUR and will add an additional 3m. EUR to the annual revenues from the year 2026.”
About Trade Estates REIC
Trade Estates REIC, a company listed on the Athens Stock Exchange Regulated Market, with strong shareholders Fourlis Group, Autohellas and Latsco Hellenic Holdings, is the only real estate investment company in Greece specializing in the development of new generation retail parks and Logistics Centers to serve the omnichannel retail strategy, with operations in Greece, Cyprus and Bulgaria. Trade Estates’ portfolio currently consists of 10 Shopping Parks, 3 Next Generation Logistics Centers and one Property Under Development. Its investment plan for the next 4 years includes the creation of new shopping parks in Greece (with the flagship shopping park in “The Ellinikon Park”) and the creation of new Logistics Centers.
According to the company’s development plan, by 2027 it will have a total of 18 commercial properties with a low environmental footprint, high yields and strong long-term tenants.