7R sells City Flex Last Mile Logistics building in 7R Park Łódź West II to Macquarie managed account
7R has divested the first phase of 7R Park Łódź West II, a prime urban logistics project located in Łódź, Poland. The property has been acquired by Macquarie Asset Management on behalf of one of its managed accounts. It is the investor's sixth transaction involving the 7R City Flex Last Mile Logistics portfolio, following acquisitions near key industrial and urban centers including Wrocław and Gdańsk, that were concluded since September last year.
The 7R facility acquired by Macquarie Asset Management on behalf of one of its institutional clients, was commissioned for use in July 2021. It is 100% leased to tenants from the health and sanitary sectors who run light production, storage, and logistics operations in the property. The development’s location, in the western part of Łódź, is well-served by public transport and roads, including the newly built S14 ring road. Its proximity to the A1 and A2 freeways is another positive aspect of the location. The building is BREEAM-certified thanks to applied pro-ecological solutions, which improve energy efficiency.
Dana Gibson, Co-Head of Macquarie Asset Management’s Real Estate team in Europe, said: “The pandemic has shone a spotlight on the vital role the logistics real estate sector plays in underpinning efficient global supply chains. As the demand for strategically located facilities with strong sustainability credentials continues to grow, we are delighted to continue our partnership with 7R in Poland and to secure this high-quality portfolio.”
7R and Macquarie Asset Management have concluded six transactions in the last 12 months, totaling more than EUR 63m. All of these deals involved last-mile logistics assets located in Poland’s top city locations.
Bartłomiej Krawiecki, Chief Operating Officer, Vice President of the Board at 7R said: Since 2018, we observed growing demand for small business unit type of facilities, from both investors and tenants. Development of 7R City Flex Last Mile Logistics is the answer for that demand and one of ways to diversify our portfolio. Due to the demand and the size of markets, City Flex projects were initially built in larger cities, while today, medium-sized cities are ready for this type of investment. This part of the market is growing and unlike standard 'big box' warehouses, last-mile facilities may consist of warehouse and office space, showrooms, retail, and e-commerce premises, which diverisifies our tenants base. SBU’s share in warehouses market in Poland reached 8%. We will continue to invest in 7R City Flex business line, and look for opportunities in other sectors.
Building the first last mile logistics network in Poland, which covers all key city locations with 7R’s urban warehouses, and partnering with Macquarie is an excellent example of cooperation between capital and development. The alignment of interest between the parties to provide high-quality products in key micro-locations, ensuring they are in line with high ESG standards and meet the expectations of tenants, is always a great strategy to execute. We’re looking to provide more high-end products together with our partner in the near future, says Łukasz Jachna, Chief Capital Markets Officer, Member of the Board at 7R.
We are very happy to be able to once again contribute to the expansion of Macquarie’s logistics portfolio with another project. We have found Macquarie to be a great partner, who closely monitors every stage of the transaction process and is committed to cooperating with us in the creation of a strong, long-term business partnership. The sale of the 7R City Flex building, part of the 7R Łódź West II complex, is another example of our seamless cooperation, adds Tomasz Kostrzewa, Investment Director at 7R.
The developer and the investor started their cooperation back in 2019, pursuing big box facility deals in Kraków and Poland’s Pomerania region.
Over the last two-and-a-half years, 7R has divested 26 warehouse, logistics and industrial projects worth almost EUR 400m. In the next six months, the company intends to sell further assets worth more than EUR 200m.
Macquarie Asset Management is a major investor in the European real estate sector, with a 480,000 sqm portfolio of logistics properties in Poland.
During the sales process, 7R was advised by Wolf Theiss, while Macquarie Asset Management was advised by Dentons, CBRE and Sentient.