7R and Nrep establish a strategic partnership

7R is entering into a strategic partnership with Nrep, under which Nrep is acquiring a majority stake in 7R. The capital increase will allow the companies to develop dynamically in Poland and continue to implement projects in the spirit of ESG.

Nrep is a leading real estate investor in the Nordic countries, focused on ESG. It is present in eight countries and manages assets worth 19 billion euros with an area of 8 million sqm. It successfully invests in logistics facilities through the logistics platform Logicenters. In turn, 7R is an experienced Polish warehouse developer, which has so far completed projects with a total area of over 1.8 million sqm. In 2022, 7R closed over a dozen transactions for the sale of projects with a total value of over 430 million euros, gaining a 20 percent share in the investment market in Poland.
The partnership means that Nrep (via Nordic Strategies Fund V) will become the majority shareholder of 7R. By investing approximately 200 million euros of new capital into the company, the investor will support the further development of 7R, focusing on Poland. It also sees additional investment opportunities in the Czech Republic. 7R will focus on sustainable development through the construction of technologically advanced warehouses that meet the highest quality standards.

"Acquiring Nrep as a strategic shareholder is an extremely important step for 7R. The capital investment is an opportunity to continue activities in the spirit of sustainable development, gain new markets, and the possibility of building long-term relationships with tenants. By remaining the owner of some assets, we will strengthen relationships with our tenants. This unique offer will distinguish 7R from other players on the market and bring tangible benefits to our clients. The new perspective will allow us to maintain our position as a leader in sustainable development." - Tomasz Lubowiecki, founder and CEO of 7R

The Nrep investment means that 7R is becoming one of the best-capitalized logistics and industrial real estate developers in Poland. 7R will continue to develop as it has so far within joint venture companies and develop its own real estate resources, keeping some assets on the company's balance sheet.
Nrep is recognized as a leader in sustainable development – the company invested in 7R with the NSF V fund, which, after raising 3.65 billion EUR in capital, is the largest European value-added real estate fund to date.

"7R is a company with solid foundations, a strong market position, and priorities that are aligned with Nrep's values, especially in the area of sustainable development. The investment represents a unique opportunity to apply our decarbonization strategy to a large real estate portfolio and thus scale our efforts to reduce CO2 emissions. The cooperation will also allow access to a significant area of the market where demand exceeds supply. We look forward to working with the 7R team to seize this opportunity together." - Rune Kock, CEO of Nrep

"We are pleased that Nrep is the new majority shareholder of 7R. Concluding one of the largest M&A transactions on the real estate market in the logistics sector in Europe this year is the result of the business strategy we have followed over the last 24 months. The transaction will allow us to diversify our operations, strengthen relationships with clients, and gain new markets, thereby increasing the company's value for stakeholders." - Chris Zeuner, CIO and board member of 7R

"The acquisition of a majority stake in 7R strengthens Nrep's commitment to the Polish logistics market. It represents one of our largest and most strategic transactions. At the same time, our new partnership with the developer enables our Logicenters division to provide our existing Scandinavian clients with a full product offering in Poland. By combining 7R's successful track record and experience with Nrep's institutional approach to driving real change in the industry for both people and the planet, I am confident that together we will build even more opportunities and benefits for all stakeholders." - Petri Valkama, Partner & Head of Strategic Transactions at Nrep

source: press materials