There has been an increase in movement of Western companies to the Czech Republic in the last two years, cementing the geographical advantages of the country being well connected to the European and Global transportation and supply chain network, making it a prime candidate for the soaring nearshoring activities in the years to come
The Industrial Agency of Colliers International Czech Republic completed the signature of a lease agreement for Bosch, a German multinational engineering and technology company operating in 60 countries with sales in 125 locations worldwide, of 15,688 square metres of industrial premises in CTPark Bor.
Colliers helped Bosch secure the optimal solution for their business which will be used as the company’s warehouse facility in the Czech Republic. There will also be offices within the new facility, to accommodate the local management and staff. Among other services, this multinational company specialises in building security, energy efficiency and building automation.
“Looking ahead we firmly believe that the activity of this type and decisions by investors will continue to favour both the Czech Republic and the CEE region. This is largely thanks to strong property market fundamentals, particularly in respect of quality and sustainability which are comparable with the highest standards globally. Furthermore, the Czech Republic and the CEE region offers attractive economic conditions both from a property, government incentive perspective, in addition to the geographical advantages being in the very heart of Europe and well connected to the European and global transportation and supply chain network, making it a prime candidate for nearshoring activities in the years to come. Last but certainly not least, the history and reputation as high quality and lower-cost alternatives to western Europe, make the Czech Republic and other countries of the region a very attractive proposition,” added Harry Bannatyne, Partner and Head of Industrial Agency, Colliers International Czech Republic.
"Bosch relocated from the Netherlands and chose the CTP project because it suited the most in terms of timing, hall delivery and flexibility. The developer provided a cross-dock (two-headed warehouse) and the possibility of future expansion,” commented Silvie Maresova, Senior Associate at Industrial Agency, Colliers International Czech Republic, who negotiated the deal.
Considering all factors of the company’s business, Colliers managed to locate a zoned site which would help the client streamline its supply chain and mitigate risk, while being able to easily receive goods from Germany and distribute easily within Europe. When choosing the location, the whole of the western part of the Czech Republic (the Pilsen Region) was considered with a big emphasis on timing and technologies, the highest quality of facilities, visibility, access to staff and easy access to both Germany and the rest of Europe.
“It was a pleasure to work with such a professional client and a winning developer, who both share our core values, trying to make as little negative impact on the environment, and being able to produce the best high-tech facilities. The choice of location has again proven that the Czech Republic and the Western Regions of the country, rank highly among the biggest players in the world within the I&L sector. The region is not only closely linked to Germany, but it also offers very high-quality cost-efficient staff, great infrastructure and a perfect connection to the rest of Europe, with a strong industrial and technological history,” said Harry Bannatyne, Partner and Head of Industrial Agency, Colliers International Czech Republic. “This deal was initiated and concluded during the pandemic, so various restrictions appeared along the way, again showing great flexibility and willingness from all sides.”
Among the specific requirements of the building was not only that CTP was able to deliver within a certain timeframe, but that some of the latest technologies were used by the developer in the building. Both Bosch and CTP have high standards for sustainability in their buildings, making the industrial park in Bor a great fit for the German manufacturer in meeting its high demands in terms of high technological and green standards.
The lease negotiated by Colliers for the German manufacturer will begin in the first quarter of 2021 when the client moves into its new premises comprising the assembly/warehouse area, the offices, sanitary and utility areas. This transaction was the first cooperation of Colliers International Czech Republic with Bosch in the country, however, it was not the first time Colliers International has worked with the producer in other geographies around the world.