VGP and Allianz Joint Venture completes €364 million logistics portfolio purchase

Published on 16 March 2022

Download Article

Antwerp, Belgium, 16 March 2022 (7.00 a.m. CET)

VGP NV (‘VGP’ or ‘the Company’) and Allianz Real Estate, acting on behalf of several Allianz Group companies, today announced a successful third closing with its 50:50 joint venture, VGP European Logistics II (‘Second Joint Venture’)[1]. The transaction comprised of 13 logistic buildings, including 9 buildings in 5 new VGP parks and another 4 newly completed logistic buildings which were developed in parks previously transferred to the Joint Venture.

The 13 buildings are located in Spain (7), Italy (4), the Netherlands (1) and in Romania (1).

The transaction value is € 364 million[2]. The gross proceeds from this transaction amounts to circa € 233 million[3].

The proceeds will be applied towards the further expansion of the development pipeline i.e. acquisition of new development land and financing of existing projects under construction and new projects which will start shortly.

Following the completion of this third closing of the Second Joint Venture, the Second’s Joint Venture’s  property portfolio consist of 32 completed buildings representing around 642,000 m² of lettable area, with a 99.8% occupancy rate.

For Allianz Real Estate, this transaction adds to its € 11.6 billion global logistics AuM, an asset class in which the firm has materially increased its exposure over the last few years with a focus on grade A logistics portfolios in prime locations.

For VGP the increase in the joint ventures’ portfolio should have a further positive impact on the fee income generated by the asset-, property-, and development management services rendered by VGP to the Joint Ventures.

 

[1]       VGP has entered into four 50:50 joint ventures with Allianz Real Estate: (i) the First Joint Venture i.e. VGP European Logistics S.à.r.l., (ii) the Second Joint Venture i.e. VGP European Logistics 2 S.à.r.l., (iii) the Third Joint Venture i.e. VGP Park München GmbH and (iv) the Fourth Joint Venture i.e. VGP European Logistics 3 S.à.r.l. which will become effective at the moment of its first closing, currently expected to occur during the second half of 2022.

[2]      The transaction value is composed of the purchase price for the completed income generating buildings and the net book value of the development pipeline which is transferred as part of a closing but not yet paid for by the Second Joint Venture.

[3]      Total cash obtained after transaction, including a simultaneous € 5.5 million equity distribution.