Build to Own (BTO)

Build To Own
Under the BTO model, companies design properties for themselves, with the help of professional expert partner(s). The construction and implementation of these project(s) will be carried out either in-house or by a third party (typically a construction partner). And they use the property for their own purposes.

The Build to Own (BTO) model, i.e. the strategy of building for the end-user, is gaining popularity in the logistics market. This approach allows companies to invest directly in their own warehousing and logistics facilities, with long-term benefits.

What is the Build to Own Model?

Under the BTO model, companies actively participate in the process or even build their own round of real estate, which they then use for their own purposes. This method can be particularly beneficial for those with specific needs or special technical requirements.

Benefits of Build to Own Projects

Freedom and Control

The benefits of Build to Own (BTO) projects include giving companies the freedom and control to make decisions about the building. BTO gives companies the ability to fully customise and control their buildings, from design to construction, including utilisation. This means that companies are free to design the internal layout of the building and the infrastructure. In addition, they can choose the features that best suit their business needs and foresee their future development.

Long-term cost savings

Although the initial investment costs of BTO projects can be high, they represent significant savings in the long run. The main reasons for this are that there are no rental fees and the company can benefit directly from the increase in value of the property.

Challenges in Build to Own Projects

Financing and Market Risks

The success of BTO projects depends largely on market conditions and appropriate financing opportunities, changes in which can have a significant impact on project outcomes.

Vision and Opportunities in Hungary

Hungary is an ideal location for BTO projects, especially for specific needs, including those of an industrial nature. The freedom offered to companies and the long-term economic benefits are expected to increase interest in BTOs in the near future. Faedra Group offers its current and future partners a variety of tailor-made solutions for these projects.

If you have any questions, see an opportunity for cooperation or are interested in an investment opportunity, please contact our team.


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