7R sells warehouse from the City Flex Last Mile Logistics portfolio

7R has sold the first stage of 7R Park Łódź West II, a logistics project located in central Poland. The property was acquired by Macquarie Asset Management on behalf of one of the investor's clients for whom it provides asset management services. This is the sixth transaction by Macquarie within the 7R City Flex Last Mile Logistics portfolio, following purchase agreements concluded since September last year regarding facilities in key industrial and urban locations, including Wrocław and Gdańsk.

The 7R facility acquired by Macquarie Asset Management, on behalf of one of the investor's institutional clients, was commissioned in July 2021. It is fully leased to tenants from the sanitary and medical sectors, who conduct light manufacturing, goods storage, and logistics operations there. The investment, located in the western part of Łódź, is well-connected to public and road transport, including the newly built S14 bypass. The proximity of the A1 and A2 motorways is another positive aspect of the facility's location. The building has a BREEAM certificate, which confirms the pro-ecological solutions applied to improve its energy efficiency.

"The pandemic has highlighted the vital role that the logistics real estate sector plays in maintaining the efficiency of global supply chains. As demand for strategically located facilities with strong sustainability credentials continues to grow, we are pleased to continue our partnership with 7R in Poland and acquire this high-quality portfolio" - says Dana Gibson, Co-Head of Macquarie Asset Management’s Real Estate team in Europe.

Over the last 14 months, 7R and Macquarie Asset Management have concluded six transactions with a total value of over 63 million euros. All concerned logistics assets serving last-mile operations, so-called Small Business Units (SBU) in the most attractive urban locations in Poland.

"Since 2018, we have been observing growing demand for Small Business Unit facilities, both from investors and tenants. The development of the 7R City Flex Last Mile Logistics network is a response to this interest and one of the ways to diversify our portfolio. Due to demand and market size, City Flex network projects were initially created in large cities. Currently, medium-sized towns are ready for such investments. This part of the market is growing and, unlike standard big-box warehouses, last-mile facilities can offer spaces adapted for the needs of warehouses, offices, showrooms, retail premises, and e-commerce operations, which allows us to diversify our tenant group. The share of SBU in the warehouse market in Poland has reached 8%. We will continue to invest in the 7R City Flex business line, as well as look for development opportunities in other sectors" - explains Bartłomiej Krawiecki, Vice President and COO at 7R.