NREP has acquired a logistics portfolio of 130,000m² and has invested in over 1,000 new residential apartments in central Warsaw. NREP plans to invest €500m in Poland by year-end. After 15 years of successful real estate investing in the Nordics, NREP is now extending its presence to Poland to leverage opportunities within the company’s two largest business areas, modern logistics and customer-centric rental housing. NREP is building up a Polish team to support the expansion.
“Poland is sometimes described as Europe’s tiger economy, with low unemployment and rising wages. However, real estate quality and supply is generally lagging the impressive growth rates, and we see an opportunity to bring NREP’s approach and create value for all stakeholders,” said Claus Mathisen, CEO of NREP, adding: “Our northern European pipeline holds an attractive set of opportunities within residential and logistics, and most of these are located in Poland. I expect that we will have acquired assets worth up to €500m and have 8-10 employees in Poland before year-end.”
“Poland is a European supply chain nexus and for us, as the largest pan-Nordic provider of modern logistics facilities, it is a very interesting market where massive infrastructure investments are planned. Our international customers have often asked us to look at projects here, and we are happy to now be able act on those invitations,” said Jani Nokkanen, CIO at NREP.
Logicenters, NREP’s specialized logistics arm, will manage the newly acquired assets in Poland which is occupied by customers like FedEx, Dachser and smaller local companies.
NREP’s first residential housing investment is a portfolio with more than 1,000 new apartments, all strategically located in Warsaw and with green rooftops, charging stations for electric cars, and areas for urban farming. The first apartments will be ready in 2022 and are acquired from YIT, the largest Finnish and significant Northern European urban developer and construction company. By 2025, NREP aims to deliver a total of 10,000 modern homes in major Polish cities, most of them designed to meet the increasing demand for 1-2 person households like young professionals, singles, or couples without children, looking for modern living solutions with a community vibe.
“The private rental offering in Poland is growing, but still in its infancy compared to Denmark, Sweden or Finland, where 30-40% of the population rents their dwelling. Only 16% of Poles rent their homes, and we see demand for modern, customer-friendly rental options of high quality, much like what we provide successfully to the Nordic capitals,” said Jani Nokkanen.
