CTP secures €200 million EIB loan to finance ambitious solar energy roll-out

CTP, Europe's largest listed developer, owner and manager of industrial and logistics properties by gross lettable area (GLA), has secured €200 million in financing from the European Investment Bank (EIB) to roll out a large-scale programme of solar panel installations across its European business park portfolio.

The 10-year unsecured loan granted on attractive terms will accelerate the energy transition, strengthen the security of power supply, and boost climate action and social and economic cohesion. It is part of the EIB’s contribution to REPowerEU, the plan designed to end Europe’s dependence on fossil fuel imports.

CTP has a portfolio of 10.9 million m2 GLA across Central and Eastern Europe, as well as a growing focus on Western Europe in markets like Germany, Austria and the Netherlands. It is targeting rapid growth in renewable energy generation across its portfolio, and has established its own energy company to oversee its ambitious solar photovoltaic programme.

Since 2020 CTP has ensured that all its industrial and logistics buildings are “solar ready”. The developer and operator targets a 15% yield-on-cost return on its solar investments and ended 2022 with 38MWp of installed photovoltaic capacity on roof space. It is on track to add an additional 100MWp during 2023, and the EIB financing will support its medium-term goal of reaching 400MWp by 2026. Where onsite renewable energy is not currently available, CTP partners with energy suppliers to provide clients with 100% renewable energy.

CTP plans to nearly double its portfolio to 20 million m2 by the end of the decade. In the longer term it plans to create completely energy-independent industrial parks — where all energy used onsite is created within the park, and excess energy is supplied into the local electricity grid to support neighbouring communities. This will reduce the total occupancy costs for CTP’s clients and help create a more resilient and secure energy grid, while also reducing the carbon footprint of both CTP and its clients.

Richard Wilkinson, Group Chief Financial Officer at CTP, remarked, “The backing of the EIB is testament to the robust business strategy we have in place to deliver on the large-scale installation of solar photovoltaics across our portfolio, and allows us to obtain long-term unsecured financing on attractive conditions. Sustainable financing is the way forward, and we are proud to add the EIB as a new financial partner in this.”

Peter Ceresnik, Chief Operating Officer at CTP, added, “CTP has long been a pioneer in the development of sustainable industrial and logistics space, and we are now applying the same long-term vision and ambition to renewable enery. This EIB financing will accelerate our plans to maximise the solar potential of our portfolio and help us meet our medium-term goal of installing 400MWp by 2026. It will also help us achieve our longer-term vision for our parks to become energy positive — meaning that they can produce and share excess renewable energy, benefiting not only our clients and the communities where we operate, but also the planet.”

“There is enormous untapped potential for renewable energy in Central and Eastern Europe,” explained EIB Vice-President Lilyana Pavlova. “With loans like the one to CTP, we help countries in the region to break away from fossil fuels, decrease their dependency on energy imports and ultimately bring down electricity prices for everybody’s benefit. It’s a transition that makes economic and social sense.”

The EIB financing comes following CTP’s first Sustainability Report, which transparently sets out how the company is progessing on its ESG commitments and how these fit with EU taxonomy requirements. The report is aligned with Global Reporting Initiative standards, the EPRA Sustainability Best Practices Recommendations, and the recommendations of the Task Force on Climate-related Financial Disclosures.

CTP has long been a pioneer in the development of sustainable, energy-efficient industrial and logistics buildings. In 2013 it became the first to develop a BREEAM “Outstanding” building outside the United Kingdom, and it was the first European industrial and logistics developer to undertake BREEAM certification of its entire portfolio of over 200 buildings. Since 2021, CTP has been building all facilites to high BREEAM standards (“Very Good” or better), providing assurance that they are energy efficient.

The company’s ESG strategy is focused on four key areas of activity: striving to be climate positive; embedding its business parks in local communities; stimulating social impact and well-being; and conducting business with integrity. CTP has earned a “Low-Risk” ESG rating by Sustainalytics (putting it in the top 1.5% of companies globally), underlining the company’s long-term commitment to being a sustainable business. CTP is also in the AEX ESG index, which includes the 25 companies from the AEX and AMX indices that demonstrate the highest ESG performance.