VGP Trading Update

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Regulated Information

14 May 2021, 7:00am, Antwerp (Berchem), Belgium: VGP NV (‘VGP’ or ‘the Group’), a European provider of high-quality logistics and semi-industrial real estate, today published a trading update for the first four months of 2021:

  • Continued strong operating performance
    • €12.5 million signed and renewed lease agreements, bringing total annualized rental income to €196.8 million (+6% year-to-date)
    • A record 1,041,000 m2 under construction representing €64.8 million in additional annual rent once fully built and let (currently 80.1% pre-let)
    • Completed portfolio grown with 58k m2 to 2.50 million m2 which is 99.6% let
  • Expansion of land bank to secure future growth
    • Extended pipeline through 471,000 m2 of new land bought and a further 3.1 million m2 committed subject to permits
    • Total land bank acquired and secured has grown to 8.54 million m2 (+11.6% year-to-date) which supports 4.0 million m2 of future lettable area
  • Joint Venture closing anticipated for end of May with expected net cash proceeds of €52 million
    • Advanced discussions with Allianz regarding expansion of first Joint Venture ongoing

VGP’s Chief Executive Officer, Jan Van Geet, said: “The year 2021 has started on a strong footing as demand for premium locations remains at elevated levels due to changing consumer behaviour and technological advancements in industry. Year-to-date we have signed €12.5 million of lease agreements and we expect this number to grow in the coming weeks as several signed prelim agreements representing >€10 million are expected to be finalized.”

Jan Van Geet continued: "As a result, our predominantly pre-let construction portfolio is topping for the first time 1 million m2, of which over half is situated in Germany (with 215k in VGP Park München) and the other projects well spread across the other European markets. These strong market fundamentals and our resilient delivery put us at pace for another very strong year.”

Jan Van Geet concluded: “Our recent inaugural €600 million international green bond offering has allowed us to diversify our funding mix and provides enhanced flexibility for future capital allocation decisions.  Whilst maintaining a disciplined and fortress balance sheet, we remain committed to using our resources to drive inclusive and sustainable solutions for the communities we serve as we support our customers in solving their logistics needs or manufacturing real estate requirements.  This has enabled us, despite scarcity of permittable land, to continue to make significant investments in the future pipeline, by replenishing and growing our secured land bank with net 900,000 m2 year to date, including several trophy locations which will drive leasing growth in the coming years.”