The value of equity (net assets) of the group increased by over 27% in the first nine months of the year. to the level of PLN 1.54 billion. The value of gross investment properties increased to over PLN 2.9 billion (an increase of 25% year on year).
MLP Group offers warehouse space in the format of big box warehouses and urban logistics facilities (MLP Business Park). The Group is planning dynamic development on the Polish, German and Austrian market and entering the Benelux market. Development in Poland and on the German, Austrian and Romanian markets remains a strategic goal.
The dynamic development of the e-commerce sector, increasing the warehouse space related to the supply chain risk and increasingly moving operations closer to the Asian markets to Europe - these are the main factors generating the demand for warehouse facilities. In such a market environment, in the first three quarters of 2021, we significantly improved our financial results, also increasing the value of our assets. We consistently invest in the expansion of parks and an increase in the land bank, which provides a strong basis for further dynamic growth of the scale of operations. Considering the very high demand for warehouse space, we see the potential to increase rental rates - said Radosław T. Krochta, President of the MLP Group Management Board.
At the end of September 2021, MLP Group was renting a total of 863 thousand. sq m area and it was by 107.5 thousand. sq m more than at the beginning of the year. During this period, lease agreements were concluded for over 151,000 sq m. sq m The vacancy rate in the existing space remained at a very low level of around 3%.
Under construction and in preparation at the end of the third quarter, there were 162 thousand. sq m The target area of the owned parks is 1.44 million sq m. In addition, MLP Group has a number of reservation agreements for the purchase of new land for planned logistics parks in Poland and Western Europe.
It was a record period in terms of demand for the warehouse and office space we offer. The commercialization result was about 20 percent. better than in the corresponding period of the previous year. Our partners, with contracts expiring, almost every time renew their contracts for the next period. As a result, we maintain a very low vacancy rate. Responding to the strong demand for modern space, we are also consistently expanding on all served markets. We recently bought, among others plot in Gelsenkirchen in the Ruhr area. In the near future, we also plan to enter Frankfurt and Stuttgart with our offer, and we intend to acquire an additional plot of land in Berlin. We also want to strengthen ourselves on the Austrian market by buying another plot of land near Vienna, and next year to make our debut in the Benelux countries near Venlo.
In line with the “build & hold” strategy, MLP Group maintains them in its portfolio and manages them on its own after the construction of logistics parks is completed.