7R, the Polish developer of warehouse and production facilities, delivered nearly 400,000 sqm of BREEAM-certified space in 2021, doubling the company’s annual result y-o-y. In the last 12 months, 7R has divested 17 projects to investment funds and real estate companies for a total of nearly €400 million. The amount of space the tenants occupy has also increased, totaling 500,000 sqm. The portfolio of properties managed by 7R now exceeds one million sqm.
"At 7R we are consistently implementing our business development strategy. After 13 years of operations, we have delivered nearly 1.5 million sqm of cutting-edge warehouse and manufacturing space to customers, and we have another 4 million sqm in the investment process. As of 2019, we have doubled the number of employees in order to respond even better to the needs of businesses and provide them with high-end space for strategic operations", says Tomasz Lubowiecki, Founder and Chairman of the Board at 7R.
In 2021, 7R delivered to the market almost 400,000 sqm of new warehouse space, a sharp increase on the previous year’s 180,000 sqm. "We have long seen a great deal of interest in our facilities from both tenants and investors. 7R offers big box warehouses as well as tailor-made BTS and city warehouses from our City Flex Last Mile Logistics format. We are pleased with the great results of the previous year, but we are already looking to the future. In 2022, we intend to deliver around 1 million sqm of space, and in the midyear, as planned, we will start the construction of our first foreign investment in the Czech Republic", says Bartłomiej Krawiecki, Vice-Chairman of the Board and COO of 7R.
Diversified tenant mix
The developer's facilities house companies from various industries, such as the logistics, retail, pharmaceutical, and automotive sectors. The portfolio of 7R's tenants has grown significantly in the last year – the company signed 64 lease agreements with companies for over 500,000 sqm of space (a 25% increase y-o-y).
This year, in addition to completing new logistics parks and city warehouses, the developer also intends to deliver more Built-to-Suit (BTS) facilities. These include high-class warehouse in Silesia for Aluprof SA, one Europe’s leading manufacturers of aluminum systems, and a 60,000 sqm cutting edge facility for Żabka, which is under construction near Warsaw.
Red-hot assets on investors' radar
According to expert reports, warehouses are the asset class which is attracting the greatest investor interest in Europe. This is also reflected in 7R's results. Last year the developer sold 17 investments for a total of nearly €400 million. This is a considerable increase compared to 2020 – back then, 7R divested 7 projects with a total value of €75 million.
"2021 was a record breaking year for 7R and is confirmation that our business is moving in the right direction. Investors are looking for high quality products that provide returns over the long term and, very importantly, meet ESG standards. Our cooperation with the largest global investment funds shows the strength of 7R's real estate portfolio. Our plans for this year are even more ambitious", adds Łukasz Jachna, Chief Capital Markets Officer, Member of the Board at 7R.
7R's offer also includes property management. Currently, the team dedicated to this business line manages 48 buildings with a total area of over 1 million sqm.
