VGP and Allianz Real Estate partnership
On 1 July 2019 VGP and Allianz announced an expanded 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.
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. 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.
–Jan van Geet, CEO of VGP
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 was launched in March 2016 and targets assets in Germany, the Czech Republic, Slovakia and Hungary.
Similarly to the first partnership, VGP will service the new joint venture as its asset, property and development manager. 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. The venture is being managed for Allianz by Allianz Real Estate on behalf of Allianz group companies.
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. 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.
–Olivier Téran, CIO of Allianz Real Estate
Structure of VGP European Logistics joint ventures
Two joint ventures, each with an investment target of €1.7 billion gross asset value
Exclusive Right of First Refusal for the respective joint venture to acquire assets in designated countries
VGP continue to service both portfolios as asset, property and development manager
Joint ventures act as long term capital buyer at market value