The managerial and governance setup of the new partnership is similar to the existing two joint ventures between the two partners. VGP will serve the new joint venture as its sole asset, property and development manager. Allianz Real Estate will manage the joint venture on behalf of Allianz group companies. Contrary to the two existing joint ventures which concentrate on the acquisition of income-generating assets developed by VGP, this new joint venture will initially be focussed on the development of VGP Park München.
Once fully developed the park will consist of five logistic buildings, two stand-alone parking houses and one office building for a total gross lettable area of approx. 270,000 m2. The park is almost entirely pre-let to KraussMaffei Technologies and BMW.
There are currently already 3 buildings and 2 parking houses under construction, with the completion of the first building expected to occur in August 2020 and all but one of the other buildings to be delivered by November 2022. The remaining building is expected to be delivered by the beginning of 2026.
“We are delighted to further expand our partnership with Allianz Real Estate, breaking new grounds as we have found an agreement to develop our iconic VGP Park Munich together.” said Jan Van Geet, CEO of VGP. “This transaction is a testament to the quality of our development franchise, including our high-quality building and construction standards.” Jan Van Geet, concluded: “Through this new partnership we are able to share the required capital expenditure, secure disposal proceeds and continue to invest in the expansion of our portfolio pipeline.”
Kari Pitkin, Head of Business Development for Europe at Allianz Real Estate, commented: “We are very pleased to build on our established partnership with VGP with the new development of VGP Park Munich. Logistics as an asset class remains a key focus for Allianz Real Estate, having grown our global exposure in the sector to more than EUR 6.6bn AUM.”