European logistics property developer P3 is expanding its business in Germany with the acquisition of a 6.5-hectare site in Horb am Neckar, near Stuttgart.

P3, which is based in Prague, Czech Republic, plans to build a new 33,900 sq.m warehouse there by the end of 2019.

The site is near Mercedes-Benz’s plant at Sindelfingen and with numerous medium-sized businesses in the area, the location of the new facility is particularly attractive for contract logistics companies in the automotive and industrial sectors, according to P3. It has direct access to the A81 Stuttgart-Singen autobahn and is part of the Heiligenfeld GI industrial area. Companies based there are able to implement 24/7, three-shift operations.

Commenting on the acquisition, P3’s CEO, Ian Worboys, said: “P3 has a number of new site acquisitions in the pipeline and more than 10 new buildings under construction. In Germany, over 75% of our 300,000 sq.m pipeline is the redevelopment of existing property to create warehouse space, a trend driven by the scarcity of greenfield sites in the country brought about by government development restrictions.

P3 will start demolition of the existing buildings on a speculative basis in January 2019. Demolition and building permits have already been secured.