Allianz, VGP form €1.7bn JV to invest in European logistics assets

Allianz,VGP form €1.7bn JV to invest in European logistics assets

VGP NV, the Antwerp-based pan-European logistics developer and Allianz have formed a new 50:50 joint venture, VGP European Logistics 2, to invest in core logistics assets in Austria, Italy, the Netherlands, Portugal, Romania and Spain.

Allianz Real Estate and VGP will aim to grow the venture to a gross asset value of €1.7 billion within five years by acquiring prime assets developed by VGP.

Allianz and VGP launched the first VGP European Logistics in March 2016 to invest 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.

“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,” said Jan van Geet, CEO of VGP.

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“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,” said Olivier Téran, CIO of Allianz Real Estate.