7R has completed the key formalities related to the acquisition of a property in Berlin from KARL Gruppe and is launching its first project on the German market. The investment comprises an existing warehouse complex located in Berlin’s Lichtenberg district, within the BEGEWO industrial area. 7R City Park Berlin East will be developed as a brownfield project, combining the modernisation of existing space with the potential for further expansion through the development of two modern buildings with a total area of 23,000 sqm. The investment, with a target area of 43,000 sqm and a value of approximately €70 million, is being implemented in cooperation with The Polish International Development Fund 2 (Fundusz Ekspansji Zagranicznej 2 FIZAN) managed by PFR TFI, which co-finances the international expansion of Polish companies.
The property comprises a plot of approximately 93,000 sqm. and an existing warehouse building of around 20,000 sqm. The asset is currently more than 90% leased, ensuring stable operations from the outset of the project. In the next phase, 7R plans to expand the complex with two additional buildings and approximately 23,000 sqm. of modern warehouse and logistics space. This part of the project is scheduled for delivery in 2027–2028.
Magdalena Uler-Kłeczek, Board Member and CIO at 7R, said: “The launch of our first project in Germany is an important moment in 7R’s development and confirms the consistent implementation of our expansion strategy in Europe’s most liquid and significant market. Berlin is a natural location for this step. It is one of the continent’s key metropolitan areas, a strong economic hub and a market with significant demand for well-located urban logistics space. Our competitive advantage lies in the combination of development experience, investment capabilities and practical expertise in creating modern, operationally efficient facilities for tenants from various sectors.”
7R City Park Berlin East is aligned with the company’s strategy to build a portfolio of modern logistics assets in Germany’s largest metropolitan areas. The company is focusing on locations in and around the BIG 7 cities, which include Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf. In these markets, 7R intends to develop urban logistics formats addressing the needs of companies from the e-commerce, retail, logistics, light manufacturing and services sectors.
Martin Ohly, Managing Director Germany at 7R, commented: “Germany is one of the largest and most demanding warehouse and logistics markets in Europe. Entering this market therefore requires a highly selective approach to location, product and investment structure. Our first project in Berlin meets these criteria: it is situated in a strong urban location, generates current rental income and offers genuine potential for further development. This investment model responds well to the current needs of both tenants and investors, combining the security of an existing asset with the opportunity to create new value through modernisation and expansion.”
Piotr Pikiewicz, Head of Debt & Treasury at 7R, said: “Under the investment cooperation structure, the Polish International Development Fund 2 takes a minority stake in 7R’s foreign subsidiary, with the proceeds allocated to the implementation of the Berlin project. Our cooperation with PFR TFI strengthens the financial backing of the investment and confirms the importance of institutional capital in supporting the expansion of Polish companies into Europe’s most competitive markets. Our objective is to build 7R’s long-term presence in Germany. We want to develop projects that respond to real tenant needs, are well integrated into the urban fabric and allow us to create long-term value for our capital partners.”
Piotr Dmuchowski, President of the Management Board of PFR TFI, which manages Fundusz Ekspansji Zagranicznej, commented: “This project shows that, as PFR, we can be a credible and strategic partner for Polish enterprises. We support companies that, with a clear vision and full determination, pursue dynamic growth and scale their operations beyond Poland. This undertaking is an excellent example of successful, multi-dimensional synergy between Polish capital and experienced investors. By developing a partnership-based operating model within the framework of the Foreign Expansion Fund, we co-invest with entrepreneurs, providing real support to Polish companies entering new, demanding foreign markets. In this way, we contribute to building their long-term competitiveness on a global scale.”
