VGP and Allianz Real Estate partnership
On 31 May 2016, VGP and Allianz established their first 50:50 partnership, a joint venture VGP European Logistics S.à r.l. focusing on the acquisition of prime logistic assets in Germany, Czech Republic, Slovakia and Hungary with a target gross asset value of €1.7 billion.
On 1 July 2019, VGP and Allianz announced an expanded strategic partnership with a new joint venture VGP European Logistics 2, also for a target gross asset value of €1.7 billion and targeting core logistics assets in Austria, Italy, the Netherlands, Portugal, Romania and Spain. A first closing of this second joint venture related to 9 buildings in VGP Park Graz (Austria), VGP Park Timisoara (Romania) and VGP Park San Fernando de Henares (Madrid, Spain) took place on 31 July 2019.
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
In-line with the first joint venture, Allianz Real Estate and VGP are targeting to grow this second joint venture to a gross asset value of EUR1.7 billion within five years by exclusively acquiring prime assets developed by VGP.
Similarly, 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 customers following strict investment criteria. Allianz is committing € 350 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