Logistics goes XXL

The location is excellent: alongside a major European route – the A4 motorway via the Kąty Wrocławskie junction – 20 km from Wrocław and 50 km from the Wałbrzyska Special Economic Zone. And building work began there not long ago. The projects that are under construction side-by-side by a number of developers are all at different stages of development. Ultimately, a massive complex is to arise offering a combined area of 430,000 sqm.

The land for all of these projects was prepared by Satoia, which also included obtaining the necessary permits, while preparing the grounds, building roads and installing utilities. “The conditional sales contract for the first plot was signed on New Year’s Eve 2020. In January, more land-owners made contact with us – dozens of people in fact, entire families, children and grandchildren… since that’s what ownership questions are like in Poland,” recalls Marcin Tadeusz Ochyra, the CEO of Satoia. As a result of all this, the company was finally able to take possession of an impressively large site of 80 ha.

Four projects

Since then, the entire area has been amalgamated, divided up again, and sold to four separate investors, the identity of the last of whom has yet to be officially disclosed. However, we can reveal that P3 is developing its P3 Wrocław I park on the site, specifically for e-commerce, with an area of 265,000 sqm (yes, really!) to be occupied by a single tenant. The launch of the construction work was announced in February this year. In June, 7R will bring into use its first ‘7R Green Saver’ project – 7R Park Wrocław West II with an area of 43,000 sqm, which has been leased almost entirely to Yusen Logistics. ECE, meanwhile, is developing 78,000 sqm on the site. “This is the first completely independent logistics project by ECE in Poland,” explains Leszek Sikora, the managing director of ECE Projektmanagement Polska, who also reveals that his company is working on more warehouse projects in partnership with an experienced local developer. When it comes to tenants, ECE will only reveal that it is concentrating on logistics operators. “We’re going to complete the project at the end of 2024,” ECE’s managing director informs us.

How it was done

Satoia’s main role in these projects was to acquire the building permits, which it began in the first few days of having signed the conditional purchase contract. “We always provide high-quality documentation, so we don’t just do the work to open up the administration and hold onto the land for better times,” reveals Arkadiusz Rodziewicz, a member of the board of Satoia. “Our documentation allows you to start work on the site in practically the same month. Nobody else in Poland does this, because such procedures entail a huge risk due to having to invest millions of złoty,” explains Marcin Tadeusz Ochyra.

When an interested investor emerges, the projects are modified to meet the specific requirements of their tenants. “At 7R, we don’t operate in a schematic way and we always adjust our projects to the individual requirements of the client and the specific nature of the project,” insists Magdalena Kostjan, the business development and leasing director of 7R. “For our project in Kąty, thanks to Satoia who partially prepared the site for construction, we could concentrate on economic, low-emission warehousing to create an exceptional project that the clients genuinely appreciate,” she claims.

A work in progress

7R entrusted the construction of its centre to Kajima Poland, while Atlas Ward is currently the general contractor for a total area of 285,000 sqm – including 35,000 sqm for the fourth investor (where the work is to be completed in Q1 2025). Atlas Ward was also responsible for preparing the shared road between the hub and the motorway. Although the projects are at various stages of development, the work is being carried out simultaneously. “It has turned out that on a well-prepared site of 80 ha, you can develop a few really big projects,” points out Marcin Tadeusz Ochyra.

Arkadiusz Rodziewicz in turn mentions that Satoia’s role did not end at acquiring the building permits nor at selling the land on to the investors. “Our work still continues. We are still working with the investors but also with the authorities and the local community until the buildings are constructed and we may continue to work on even further,” he reveals. ECE also expands upon the advantages of such a partnership. “Satoia sold us this attractive plot but also provides effective help in acquiring current local agreements,” Leszek Sikora points out.

ESG comes in the price

As with all other commercial real estate, ESG requirements are becoming stricter for warehouses, both due to tenant strategies and pressure from financial institutions. The projects in Kąty Wrocławskie are being built to BREEAM certification requirements with the eventual certificates ranging from ‘Excellent’ to ‘Outstanding’. “We take ESG very seriously in all aspects of this development. For example, we have designated 60 pct of the roofing area (4.5 ha) to be covered by solar panel installations. We are also installing environmentally-friendly lighting,” explains Leszek Sikora.

7R’s centre will be submitted for BREEAM ‘Outstanding’ certification. “The first 7R Green Saver warehouse is to be built in Kąty Wrocławskie entirely for Yusen Logistics, whose sustainability strategy clearly sets out its goals in managing environmental risks,” says Magdalena Kostjan. According to 7R’s calculations, the centre’s primary energy demand will be reduced per sqm a year by around 70 pct lower than the requirements of current regulations. The development also includes its own energy storage facilities for the electricity generated by the solar panels. “Our tenants are taking increased action in terms of sustainable development, so they appreciate modern projects that will fit their ESG strategies for many years to come,” claims Magdalena Kostjan. “Investors also look favourably on this breakthrough development. Green Saver in Kąty Wrocławskie was granted PLN 87 mln in green financing from Bank Pekao SA. We are convinced that this is the technological business model of the future – and not just for 7R. When it becomes the standard on the market, we will be able to proudly declare that we were the first,” she adds.

The multi-faceted nature of this development – along with the new jobs and tax revenues it will generate – has also won over the local authorities. Atlas Ward has also constructed new roads for the region and is currently building out more local infrastructure with sewerage and drains as well as water piping.

A stampede to come

According to Arkadiusz Rodziewicz, Satoia feels that more investors are increasingly willing to pay for sites in attractive locations with building permits, where work can begin as soon as it’s purchased. “There are a lot of sites on the market and we’re buying them from both developers and funds. We are building up our land bank because we believe that investors will be coming to us and not going directly to the sellers of the land,” argues Marcin Tadeusz Ochyra.

He goes on to say that investors also don’t want to wait two years for the documentation when they know that they can have a building ready in three to six months (depending on the size) and hand it over to the tenants with no hassle or complications. “We are like a time machine that transports investors directly into the future,” declares Satoia’s CEO.