A joint venture, VGP European Logistics II, between VGP NV and Allianz Real Estate has expanded its portfolio with the acquisition of 13 logistics buildings for €364 million.
The 13 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, are located in Spain (7), Italy (4), the Netherlands (1) and in Romania (1).
The gross proceeds from this transaction amounts to circa €233 million, said VGP in a statement.
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, according to the statement.
Following the completion of this third closing of the second joint venture, VGP European Logistics II, the second’sjoint 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.