VGP NV (“VGP”), the Antwerp-based pan-European developer, manager and owner of logistics and semi-industrial real estate assets and Allianz have expanded their strategic partnership with a new 50:50 joint venture. VGP European Logistics 2 is an investment vehicle targeting core logistics assets in Austria, Italy, the Netherlands, Portugal, Romania and Spain.
Allianz Real Estate and VGP are targeting to grow the joint venture to a gross asset value of EUR1.7 billion within five years by exclusively acquiring prime assets developed by VGP. This latest JV follows the first vehicle - VGP European Logistics - which launched in March 2016 and targets assets in Germany, the Czech Republic, Slovakia and Hungary. It currently has a gross asset value of c. EUR1.4 billion in ownership or under construction.
The venture is being managed for Allianz by Allianz Real Estate on behalf of Allianz group companies. Similarly, to the first partnership, VGP will service the new joint venture as its asset, property and development manager. VGP already benefits from an extensive land bank in the target countries as well as local offices. All assets are new or recently built and will be fully leased to blue chip tenants following strict investment criteria. Allianz is committing EUR350 million in equity into the new joint venture at launch.
Logistics accounted for EUR5.6 billion of Allianz Real Estate’s total AuM as at 31 December 2018, and the firm has continued to increase its exposure to the sector. In March this year, it announced a deal with AEW focused on the UK logistics sector. In February, it partnered with CBRE Global Investment Partners to acquire a Nordic portfolio. And in November last year, the firm completed the acquisition of a logistics hub in Northern Italy and two transactions in Asia.
“We are delighted to further expand our partnership with Allianz Real Estate. Our group has grown significantly since the inception of the first joint venture in 2016 and the increased investment capacity as well as enlarged footprint of the combined two joint ventures fits really well with our expanded pan-European profile,” said Jan van Geet, CEO of VGP. “Through the combination of the two, we can continue to recycle our invested capital and re-invest the disposal proceeds in the development and expansion of our portfolio.”
“Logistics remains a highly attractive sector, in established markets such as the Netherlands, Spain and Italy but also fast-growth ones such as Romania, and Allianz is focused on selectively building its exposure globally by working with prime partners such as VGP,” said Olivier Téran, CIO of Allianz Real Estate. “We are delighted to be once again working with VGP, an established leader in the European logistics sector and a firm with a proven track record of success and deep understanding of the dynamics shaping the market.”