ESG-focused investor Nrep has secured a majority stake in Polish industrial developer 7R, as the firm continues its expansion in Poland.
The deal was executed through Nrep's Nordic Strategies fund V which is investing around €200 mln of new equity into 7R.
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 fresh equity will enable 7R to continue to grow with a focus on Poland, with additional possibilities in the Czech Republic, the firm said.
7R will focus on sustainable development by constructing technologically advanced warehouses that meet high sustainability standards, in line with Nrep's priorities.
7R is an experienced Polish warehouse and industrial facility developer that has so far completed projects with a total area of over 1.8 million m2.
In 2022, 7R closed more than a dozen transactions totalling over €430 mln, reaching a nearly 20% share of the warehouse and industrial facility investment market in Poland.
Nrep has extensive experience gained in the Nordic countries, and €19 bn of assets under management.
It manages 8 million m2 of real estate projects across eight countries and has successfully invested in logistics facilities since inception through its dedicated logistics branch, Logicenters.
Nordic Strategies fund V, which has raised €3.65 bn of equity, is one of Europe's largest focused value-add real estate funds.
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 decarbonization 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.'
Nrep first expanded outside its home market of the Nordics in 2021, when it bought a 98.9% stake in 7R's peer, Biuro Inwestycji Kapitalowych (BIK), which also develops warehouses across Poland.
Cushman & Wakefield, KKW, Rymarz Zdort Maruta and Crido represented 7R in the transaction, while Nrep was advised by Linklaters, PwC, EY, JLL, and Savills.
