Building for Europe’s rearment  

[This article was originally published in Defence International Procurement]

Why industrial and logistics real estate is mission-critical for the defence supply chain

Europe’s defence sector is entering a new phase. The strategic shift is clear and accelerating. In response to rising security threats, the European Union is mobilising unprecedented levels of investment. Initiatives such as ReArm Europe and the European Defence Fund are reshaping the continent’s industrial priorities, driving growth in manufacturing, logistics, cybersecurity and dual-use technologies.

At the same time, governments are placing greater emphasis on strategic autonomy, reducing reliance on global supply chains and strengthening domestic capabilities. This transformation is not abstract. It is physical. It requires land, buildings, infrastructure and logistics networks that can support a rapidly expanding and evolving defence ecosystem.

For defence companies, the question is no longer simply where to grow, but how quickly they can scale, how securely they can operate, and how efficiently they can adapt to new demands. This means industrial and logistics real estate has moved from a background consideration to a strategic enabler of defence capability.

What defence supply chains now need

Across Europe, defence companies are facing a common set of pressures. First, scale and speed. Increased defence spending is translating into rising order books. Suppliers across the value chain, from advanced manufacturing to component production and logistics, are expanding quickly. Many need additional production or storage space within months, not years.

Second, flexibility. The nature of defence work is changing. Facilities must be capable of supporting advanced manufacturing, digital systems, and dual-use operations. Businesses need space that can adapt as technologies and contracts evolve.

Third, security. While only a small proportion of defence activity involves hazardous materials, secure operations are essential across the board. Site management, access control and operational resilience are critical considerations.

Fourth, capital efficiency. Many supply chain companies prefer to invest capital in production technology, talent and innovation, rather than tying it up in real estate ownership.

Finally, location. Proximity to key transport corridors, manufacturing clusters and, increasingly, NATO infrastructure is shaping location decisions. The geographic footprint of operations now has direct strategic implications.

These requirements point to a shift in how defence companies approach real estate. Flexibility, speed and partnership matter more than ownership.

A pan-European platform built for growth

CTP has positioned itself directly at the intersection of these needs. As Europe’s largest listed owner, developer and operator of industrial and logistics real estate, it manages a portfolio of over 14 million sqm across 11 countries, spanning more than 400 locations from the North Sea to the Black Sea. CTP is the market leader Central and Eastern Europe, and is growing fast in new markets including Germany, Poland and Italy.

This scale matters, but it is the structure of the platform that is particularly relevant for defence clients. The CTPark Network is designed as an integrated system of business parks that enables companies to scale across multiple locations while maintaining consistency in quality, operations and service.

For defence supply chain companies, this offers a significant advantage. Expansion does not need to be confined to a single site or country. Operations can grow across a network, supported by a single partner with a unified approach.

Speed to operation: a decisive advantage

One of the most pressing challenges in the sector is time. Defence contracts are being awarded quickly. Companies that can demonstrate operational readiness often gain a competitive edge. The ability to move into functional space at short notice can be the difference between winning or losing work.

This is where CTP’s model stands out.

The company combines speculative development, a substantial land bank and a build-to-suit capability. This means it can offer both immediate availability and bespoke solutions tailored to specific operational needs. Facilities can be delivered or expanded within months, allowing clients to scale in line with demand. In practical terms, this enables defence suppliers to respond more confidently to procurement opportunities, knowing the real estate component will not slow them down.

Build-to-suit without the capital burden

Ownership has traditionally been the default choice for defence-related facilities, particularly for larger manufacturers. However, this is changing. CTP’s model allows clients to occupy purpose-built facilities without committing capital to property ownership. The company invests in the development, while clients lease space aligned to their operational requirements.

This approach offers two clear advantages. First, it frees up capital for core business activities such as manufacturing capability, R&D and workforce investment.

Second, it reduces risk. As demand changes, companies are not tied to fixed assets that may no longer align with their operational needs. Importantly, the model is proving attractive across the sector, not only to smaller suppliers but also to major defence manufacturers.

Location as a strategic asset

In defence logistics, geography matters. Central and Eastern Europe has become a focal point for growth. The region combines cost competitiveness, strong engineering capabilities and deep integration with Europe’s industrial base. It is also increasingly close to the centre of gravity for NATO operations and defence-related investment.

CTP’s footprint in this region is significant. In some core markets, the company has developed or owns a substantial proportion of the available industrial stock. Its parks are often located close to key transport corridors and major defence hubs, enabling efficient movement of goods and alignment with NATO supply routes.

At the same time, CTP is expanding in Western Europe, including Germany, where it is redeveloping former industrial sites to support new sectors such as energy and defence. This combination of established presence in CEE and growing footprint in Western markets provides clients with genuine geographic flexibility.

Long-term partnership, not just property

A defining feature of CTP’s model is its long-term ownership. Unlike developers that build and sell, CTP retains ownership of its parks and manages them over the long term. This creates an alignment of interests with clients. Facilities are not delivered and then handed over. They are continuously managed, maintained and improved. Security, infrastructure and operational performance are ongoing priorities. Nearly three quarters of our new leases are signed with existing customers—clear evidence of the trust we build

For defence companies, this long-term approach provides reassurance. It ensures that sites remain fit for purpose, secure and adaptable as requirements evolve. It also underpins a broader service model. CTP acts as a single partner throughout the lifecycle of a client’s presence in a location, from initial development through to expansion and long-term operation.

Supporting Europe’s defence future

The expansion of Europe’s defence sector is not a short-term trend. It represents a structural reset that will shape industrial strategy for decades. As governments invest in capability and resilience, the supply chain must evolve in parallel. Facilities must be modern, flexible and located where they can support both production and logistics at scale.

CTP’s proposition is straightforward but powerful. By combining scale, strategic locations, development capability and long-term ownership, it provides a platform that allows defence companies to grow faster, operate more efficiently and focus their resources where they matter most.

For a sector defined by speed, security and strategic importance, that combination is mission critical.