Another 7R investment joins SELP’s portfolio
7R has finalized the sale of the 7R City Flex Łódź I warehouse located on Rokicińska St. in Łódź, Poland to SELP (SEGRO European Logistics Partnership). This is the third 7R project, following 7R City Flex Łódź II on ul. Transmiscyjna in Łódź and 7R Park Wrocław, to join the Polish portfolio managed by SEGRO.
The newly purchased warehouse, which has now been renamed SEGRO Business Park Łódź Wschód, offers a total area of 8,500 sqm and is 100% leased. In addition to its standard warehouse function, the facility gives the possibility of using space for light production, commercial and exhibition activities, and arranging high-class office space.
"Along with the rapid development in Łódź and growing customer needs, the SELP real estate portfolio managed by SEGRO in the city is also expanding. City industrial parks are becoming the driving force of the logistics market and it is in this area that we want to expand our offer. The purchase of the property from 7R fits perfectly into our strategy of growth in key locations with the greatest potential associated with both the size of the local market and constantly improving road infrastructure," said Bożena Krawczyk, Investment Director at SEGRO.
JLL and Wolf Theiss advised 7R on the transaction, SELP was represented by Dentons and Arcadis.
Cooperation between SELP and 7R began in June last year, when SELP completed the acquisition of the 7R warehouse park in Wrocław, with a total area of 23,500 sqm. The park was renamed SEGRO Industrial Park Wrocław 2. In the second half of 2019, the partners signed a contract for the construction of a City Flex type facility in Łódź, on Transmisyjna Street. The project, which consists of two buildings with a total area of 13,400 sqm, will be commissioned for use in Q4 2020. After construction is completed, the facility will become an integral part of SEGRO Business Park Łódź.
"We have been developing our warehouse brand in Poland for 10 years. We see the potential of having a niche in smaller warehouses located near city centers, allowing for a flexible response to the needs of local markets from specific locations. We and our partners know that this trend has enormous potential and will continue to develop. That is why major European players such as SEGRO consciously choose these types of assets for their portfolio. At 7R, we have used our experience and knowledge to create the City Flex concept that meets the needs of tenants and investors, providing them with solutions of the highest quality," said Bartłomiej Krawiecki, Member of the Board and Head of Development at 7R.