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NREP investing €500 million in resi and logistics in Poland

NREP is expanding beyond the Nordics and making its first foray into logistics and residential in Poland, where it plans to invest €500 million this year and open an office with a local team.

Claus Mathisen, CEO, NREP

The company has taken over local developer Bik SA and acquired a 130,000 sqm logistics portfolio with four assets occupied by customers like FedEx, Dachsler and many local companies.

NREP has also invested in over 1,000 new residential apartments in central Warsaw with green roof tops, charging stations for electric cars and areas for urban farming. The development was acquired from Finnish company YIT and the first apartments will be ready in 2022.

After 15 years of activity in real estate in the Nordics, NREP has decided to leverage opportunities in its two largest business areas, modern logistics and customer-centric rented housing.

“Poland is sometimes described as Europe’s tiger economy, with low unemployment and rising wages”, said Claus Mathisen, CEO, NREP. “However, real estate quality and supply is generally lagging the impressive growth rates, and we see an opportunity to bring NREP’s approach and create value for all stakeholders”.

As the largest pan-Nordic provider of logistics facilities, NREP sees Poland as a crucial European supply chain nexus where massive infrastructure investments are planned. Logicenters, NREP’s specialized logistics arm, will manage the newly acquired assets in the country.

The residential sector in Poland, one of the largest markets in Europe, also holds promise. There are 14 million residential units, but three out of four homes were built before 1989. According to NREP there is huge demand for new quality housing with green credentials.

One of the newly-acquired residential assets in Poland

The company plans to expand beyond Warsaw and deliver 10,000 modern homes in Poland’s major cities by 2025, in order to meet the increasing demand from young professionals looking for “modern living solutions with a community vibe”.

The private rented sector is still under-developed in Poland, where only 16% of the population rent their homes, compared to 30-40% in Denmark, Sweden or Finland, but demand is set to grow fast.

NREP has €10 billion in assets under management and manages more than 4 million sqm of real estate across Denmark, Finland, Sweden, Norway and now Poland.

“Real estate plays an important role in the continued growth in Poland”, said Dorota Wysokinska-Kuzdra, Chairman, the Urban Land Institute. “We are already a primary hub for supply chains in Europe and our main cities are growing fast. We need investors like NREP, who take a long-term perspective and prioritize sustainability”.