GE Real Estate enters Romania

The central and eastern Europe arm of GE has teamed up with Helios Phoenix to develop €175m of distribution warehouse developments throughout the country.

GE Real Estate has struck a joint venture to initially develop seven logistics and distribution warehouses located in the largest cities of Romania.

The firm has teamed up with Helios Phoenix, which is itself a joint venture between UK developer Helios Properties and eastern-Europe focused Phoenix

In a statement, the companies said the joint venture had been formed in response to demand for high quality industrial warehouse and logistics facilities across Romania, underpinned by the nation’s strong GDP growth.

The first projects will be undertaken without tenants having been lined up and will be located in Bucharest, Timisoara, Constanta, Brasov and Cluj.

Karim Habra, managing director of GE Real Estate Central and Eastern Europe, said: “These developments will be the first bespoke portfolio of logistics warehouses in Romania, a market which is currently undersupplied. The recent EU accession is expected to further enhance Romania’s GDP growth and consumer and industrial demand, which in turn will lead to greater demand for warehouse space.”

He added Romania is the firm’s eighth market in the region and that the strategy is to build its presence in the market through partnerships with local operators.