KOSTAL Automobil Elektrik, a German-headquartered system supplier to the automotive sector, has signed a lease for over 17,000 sq m of manufacturing space in Panattoni Park Lublin IV. KOSTAL was advised on the choice of location and during the negotiations of the technical and commercial terms of its lease by experts from global real estate services firm Cushman & Wakefield.
Having analysed market data and the possibilities of locating a new production plant, KOSTAL decided to set up a new facility in Świdnik, Lubelskie province. Polish locations competed against other countries in Central and Eastern Europe. Our decision to choose Świdnik was influenced by its logistics strengths: its proximity to our Ukrainian plants and to our clients’ factories south of Poland and in Western Europe. Other key factors included workforce availability in the region and economic zone incentives. This marks just the beginning of the operations of the KOSTAL Group in Poland with huge future growth potential,
said Radosław Szkup, Management Board Member and Managing Director, KOSTAL Automotive Poland sp. z o.o.
KOSTAL leased close to 15,500 sq m of production and warehouse space and around 1,700 sq m of office space in Panattoni Park Lublin IV. The building will be tailor-made to its needs and manufacturing requirements. The facility is scheduled for completion and handover in November 2023,
said Konrad Jacewicz, Associate, Industrial and Logistics Agency, Cushman & Wakefield.
Disruptions to global supply chains and manufacturing which have impacted the automotive industry are increasingly incentivizing companies to adopt nearshoring strategies and relocate to sites guaranteeing business continuity. The beneficiaries of this trend in Poland include Lubelskie and Subcarpathia, which are seeing growth in modern warehouse projects. They also benefit from further infrastructure improvements, including the new S19 expressway, making for seamless distribution to western markets. These factors also influenced the decision of KOSTAL - our client - to locate operations near Lublin,
says Magdalena Muszyńska, Negotiator, Industrial and Logistics Agency, Cushman & Wakefield.
KOSTAL Automobil Elektrik is another major automotive company that has appreciated our facilities in the Lublin area. This is confirmation that Panattoni, as a developer, has a full understanding of this industry’s specific features and needs by delivering modern space for a variety of production and warehousing processes. This also points to the potential of the Lubelskie province, which is benefiting from nearshoring and becoming a powerhouse for the whole of Eastern Poland. The pro-business attitude of the local authorities, the growth of such locations as the Świdnik Economic Activity Zone, the availability of skilled labour and the growing volume of modern industrial space attract business, including global market players,
says Katarzyna Osińska, Development Director, Panattoni.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.