Nrep acquires majority stake in Polish logistics developer 7R

August 10, 2023
Warehouse parks built by 7R in Poland in recent years

• 7R is one of the largest logistics property developers in Poland
• The €200m investment provides a strong foothold into the growing Polish logistics market
• Complements Nrep’s Northern European logistics branch Logicenters, to a total logistics portfolio, including pipeline, in excess of 4.2 million square metres

Nrep, the ESG-focused real estate investor, has announced that it has agreed to acquire an 80% stake in 7R (7R SA), one of the largest logistics developers in Poland, investing approximately €200m into the company.

The platform will continue to operate under the 7R brand and the partners are aiming to accelerate the growth of the company. After having completed a portfolio of 1.8 million sqm across 36 assets, 7R has an existing pipeline in excess of 2.3 million sqm.

7R’s development portfolio is located in prime locations across Poland and serves a number of companies of different scales and industries, including third party logistics operators, light manufacturing, e-commerce, pharmaceuticals and automotive. 7R offers the full cross section of space including big box facilities as well as tailor-made built-to-suit warehouses and urban warehouses. Established 14 years ago, 7R is a founder-led company with a 154-strong team and renowned local market knowledge across its eight offices.

Rune Kock, CEO, Nrep, said: “7R is a business with good fundamentals, a strong standing in the market and priorities which align with Nrep’s sustainability efforts and values. This acquisition provides a unique opportunity to apply our decarbonisation focus on a large portfolio and scale our efforts to bring down CO2-emissions, as well as gain access to a significant pipeline in a market which has seen continued tenant demand but reduced supply. We look forward to working with the 7R team to capitalise on the opportunity.”

The acquisition expands Nrep’s total logistics platform, including pipeline, to more than 4.2 million sqm buildings across six countries. The company has extensive experience in the sector, having been active in logistics since inception through its dedicated logistics branch Logicenters, and will apply its capabilities to further develop 7R into a leading institutional quality platform, and leverage its expertise to strengthen 7R’s capability to source, develop and hold prime logistics facilities in Poland, with a focus on bringing down the portfolio’s operational CO2-emissions.

The deal provides Nrep with a strong platform in the Polish logistics market which offers favourable conditions, with an optimal location for logistics distribution in Europe, resilient economy, structural tailwinds, and a maturing investment market underpinning robust rental growth.

Tomasz Lubowiecki, Founder and Chairman of the Board at 7R, said: “Obtaining Nrep as a strategic shareholder is an extremely important step in 7R’s development. This new capital investment in 7R will allow the business to continue its sustainable growth, develop in new markets and focus on long-term tenant relationships, all of which is beneficial to all our business lines.”

The acquisition is made via Nrep’s latest and largest vintage in the NSF value-add series, NSF V, to which the vast majority of the commitments to the fund came from existing investors. The fund was significantly oversubscribed and had an aggregate demand from investors exceeding €4.2 billion.

Through NSF V, Nrep invests to address underserved real estate segments across the Nordics and selected Northern European markets. The focus is on residential rental properties, modern logistics facilities, care homes and offices, where the company can create value through customer-centric and decarbonising solutions. NSF V will leverage Nrep’s proven capabilities in segments supported by strong structural tailwinds, taking advantage of the business’ deep local presence and experience to source opportunities within its strategic segments.

Nrep was advised by Linklaters, PwC, EY, JLL and Savills, while 7R was represented by Cushman & Wakefield, KKW Legal, Rymarz Zdort Maruta and Crido.

Published: August, 10 2023