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 EUR 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.
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. 7R facilities are characterized by their high quality of construction, as well as technological and ecological solutions. They are environmentally friendly, in line with ESG standards, and they generate savings for tenants, such as reduced energy costs due the design efficiency.
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.
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 (by 25% more than in 2020). 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. This center will be equipped with innovative automatic and environmentally-friendly solutions, which will be confirmed by BREEAM certification.
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 EUR 400 million. This is a considerable increase compared to 2020 – back then, 7R divested 7 projects with a total value of EUR 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.
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.
ESG, quality and technology
In 2021, 7R became the first warehouse and industrial developer to join the Urban Land Institute Poland as a corporate member in order to consciously shape the future of the real estate industry, and build with other members, the highest quality standards in the warehouse market. 7R is also an active member of the Polish Green Building Council and Proptech Foundation.
As a continuation of the promotion and exchange of ESG knowledge, 7R began cooperating on the European Sustainable Business Network platform at the beginning of 2022.
Certified, modern warehouse and production spaces are 7R's specialty. We implement innovative and environmentally friendly solutions. No business operates in a vacuum and a company must take responsibility for the environment in which it is active. Compliance with ESG standards is a priority in our business strategy.
Ryszard Gretkowski, Vice-Chairman of the Board