Tristan Capital Partners' TIPS Two Provides €46M Senior Loan to 7R for Berlin Logistics Project

Tristan Capital Partners' Tristan Income Plus Strategies 2 "Income Plus" Real Estate Debt Fund (TIPS Two) has agreed to provide a senior real estate debt facility of up to €46 million to 7R, the logistics and industrial developer backed by Urban Partners, formerly NREP. The financing, announced Sept. 16, 2026, supports 7R's first project in the German market, 7R City Park Berlin East.

The facility has funded 7R's acquisition of an income-producing logistics warehouse in Berlin, the modernization of the existing building and the development of additional Grade A logistics space on the site, Tristan Capital Partners said.

7R City Park Berlin East: Scheme Details

7R City Park Berlin East sits in Berlin's Lichtenberg district, in the Hohenschönhausen area at the Bennostraße and Gehrenseestraße intersection, within an established inner-ring industrial area. The site covers approximately 93,000 square meters, or about 1.00 million square feet.

The scheme comprises an existing warehouse complex of approximately 20,000 square meters (about 215,000 square feet), with the potential to develop two further buildings totaling around 23,000 square meters. Together, the three buildings would take the project to approximately 43,000 square meters of logistics space, or about 462,850 square feet. 7R has stated that the existing project is more than 90% leased.

The site was acquired from KARL Gruppe and is described as a former industrial site with an existing warehouse complex. Tristan Capital Partners said the location offers strong connectivity to central Berlin and the A10 motorway, in a submarket characterized by structurally constrained supply of well-located last-mile and light-industrial space.

Tristan Capital Partners Extends Logistics Lending Into Germany

The transaction is TIPS Two's first logistics financing in Germany, extending a logistics lending book that already spans multiple European jurisdictions, according to Tristan Capital Partners. The firm said the deal reflects the strategy's focus on lending against transitional assets in core locations that offer a clear, well-defined path to further value creation.

Dan Pottorff, Head of Debt Investment at Tristan Capital Partners, said: "We are pleased to be partnering with 7R, a highly regarded logistics developer with the sector expertise and execution capability to deliver this business plan. The asset is well located in a supply-constrained part of the Berlin market, with strong access to both the labour pool and the customer base it serves."

Pottorff added: "The financing demonstrates our ability to underwrite complex assets and transitional business plans in core locations. Financing older stock through a transition to modern, sustainable space has become a hallmark of the TIPS funds, where we have now backed business plans of this type across all major European jurisdictions and in multiple asset classes, and this transaction extends that track record into German logistics."

7R's German Market Entry

Piotr Pikiewicz, Head of Debt & Treasury at 7R, said the financing is an important milestone for the project and for establishing the company's long-term presence in Germany. "The project combines several characteristics that are particularly important from a financing perspective: an existing income-producing asset, a strong urban location and clearly defined potential for further value creation through modernisation and expansion," he said.

"The senior facility provided by Tristan Capital Partners gives us a robust financing framework to execute this business plan in stages. It also demonstrates that our strategy and development capabilities are recognised by experienced international institutional capital partners. As we expand in Germany, our focus is on building similarly well-structured projects that combine disciplined investment fundamentals with tangible value creation over the long term," Pikiewicz said.

7R was advised by SKS, and Tristan Capital Partners was advised by McDermott, Will and Schulte.

Berlin Logistics Market Context

Berlin's logistics market entered 2026 with improving occupier demand. BNP Paribas Real Estate reported 107,000 square meters of take-up in the first quarter, a 39% increase year over year and the strongest first-quarter result since 2022. Take-up for the first half of 2026 totaled 189,000 square meters.

CBRE put the Berlin vacancy rate at 9.4%. BNP Paribas Real Estate reported a prime rent of €8.30 per square meter per month for space of 5,000 square meters or more and an average rent of €7.30 per square meter per month, while CBRE's prime rent measure stood at €8.25 per square meter per month. Savills reported prime logistics yields in major German markets of approximately 4.5%.

CBRE attributed the gradual reduction in vacancy to fewer new construction projects, while BNP Paribas noted that speculative construction from earlier periods still left space available at short notice, particularly in peripheral locations. Occupiers are increasingly differentiating between modern, energy-efficient Grade A facilities, older industrial stock requiring modernization, peripheral warehouses and inner-city or inner-ring locations capable of serving last-mile and urban distribution demand.

The City Park Berlin East business plan combines the modernization of existing space with the addition of new Grade A capacity in an inner-ring location, paired with existing rental income from the warehouse.

Sources

• Tristan Capital Partners: Tristan's TIPS Two Debt Fund Provides €46m Senior Financing to 7R for its Debut German Logistics Scheme in Berlin