Denmark-headquartered Nrep, part of the Urban Partners group, will invest about €200 million in Polish logistics developer, acquiring an 80% stake in the company.
The acquisition is made via Nrep’s, NSF V value-add fund.
7R will retain its name and the partners intend to accelerate the growth of the company. It has a portfolio of 36 assets with an area of 1.8 million sq m and a pipeline in of more than 2.3 million sq m. The portfolio is spread throughout Poland and includes big-box facilities as well as tailor-made built-to-suit warehouses and urban warehouses.
7R was Established 14 years ago and has a team of 154 people.Nrep CEO Rune Kock said that 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.”
The acquisition will expand Nrep’s logistics platform to more than 4.2 million sq m, including pipeline, across six countries. The company has been active in logistics since inception through its dedicated logistics branch Logicenters, and will further develop 7R, with a focus on bringing down the portfolio’s operational CO2-emissions.
Tomasz Lubowiecki, founder and chairman of 7R, said: “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 NSF V fund was significantly oversubscribed and had an aggregate demand from investors exceeding €4.2 billion. The majority of the commitments to the fund came from existing investors.
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.
Nrep was advised by Linklaters, PwC, EY, JLL and Savills, while 7R was represented by Cushman & Wakefield, KKW Legal, Rymarz Zdort Maruta and Crido.