CTP Brownfields in Germany, Not another Walk in the CTPark

The CMD showcased its German growth strategy that depends largely on brownfields in NRW. The company wants to complete 200-250k sqm/yr after 2027. We visited 4 brownfields for 500k sqm GLA. Contrary to its CEE Park developments on a large green canvas, these projects demand a different approach. It follows intense negotiations with municipalities. They focus on bringing back employment and preserve heritage. The permit can take up to 3 years and the deconstruction can be complex. Hence, CTP is more cautious on speculative construction. The German acceleration alone will not get CTP anywhere near its 30m sqm GLA by 2030. A large project (Brownfield) in Italy and other geographical expansions are needed. We adjust our model and roll forward our TP from €21.3 to €23.0, but maintain an Accumulate rating. Tenant demand in Europe needs to keep up and execution flawless.