7R, a developer specialising in sustainable logistics and industrial properties, has entered the German market with the acquisition of a property in Berlin's Lichtenberg district from the KARL Gruppe. The transaction marks the beginning of 7R's first project in Germany. The investment comprises an existing logistics complex on the BEGEWO industrial estate, which will be developed as a brownfield project. The objectives are to modernise the existing space and to expand it with two additional, modern buildings covering a gross area of 23,000 sqm.
The 7R City Park Berlin East, with a targeted total area of 43,000 sqm and an investment volume of approximately EUR 70 million, is a cooperative project with Fundusz Ekspansji Zagranicznej 2 FIZAN. This fund, managed by PFR TFI, contributes to the co-financing of the international expansion of Polish companies. The plot covers approximately 93,000 sqm, of which about 20,000 sqm is accounted for by the existing warehouse building. A current occupancy rate of over 90 percent of the existing stock secures the operational start. The realisation of the planned expansion by 23,000 sqm of logistics space is scheduled for 2027 to 2028.
Strategic Expansion into the German Market
Magdalena Uler-K?eczek, Board Member and CIO at 7R, commented on the significance of the project launch in Germany, emphasising that it represents a crucial milestone in the company's development and confirms its expansion into the European market. Berlin is a suitable location due to its position as an economic hub and the high demand for urban logistics solutions. 7R sees its competitive advantage in combining development experience, investment capacity and practical expertise in creating efficient properties for various industries.
The project site in eastern Berlin, at Bennostraße and Gehrenseestraße, was formerly a concrete plant. It is an established industrial and commercial area that has undergone extensive transformation. The inner-city location offers immediate access to a large consumer base and the capital's labour potential. This enables efficient handling of urban logistics processes, including last-mile delivery.
Investment Model and Partnerships
Martin Ohly, Managing Director Germany at 7R, highlighted that the German market is considered demanding and requires a selective approach to location, product, and investment structure upon market entry. The Berlin project meets these criteria through its urban location, ongoing rental income, and potential for further development. This model combines the security of an existing asset with the opportunity to generate added value through modernisation and expansion.
The project is financed through Fundusz Ekspansji Zagranicznej 2 FIZAN, 7R's equity, and debt financing. Piotr Pikiewicz, Head of Debt & Treasury at 7R, explained that the fund would take a minority stake in a 7R subsidiary. He added that the cooperation with PFR TFI strengthens the financial basis and underlines the relevance of institutional capital for the expansion of Polish companies in international markets. The goal is to establish a long-term presence for 7R in Germany and to realise projects that meet tenant needs and create sustainable value for capital partners. This approach was praised by Piotr Dmuch, from PFR, as an example of supporting Polish companies in scaling their activities across borders.
