Allianz and VGP expand relationship with new €2.8b European logistics joint venture

Allianz Real Estate, acting on behalf of several Allianz group companies, and VGP, a European provider of high-quality logistics and semi-industrial real estate, have agreed to form a new 50-50 joint venture.

The vehicle, the fourth such venture between Allianz Real Estate and VGP since 2016, will develop a portfolio of prime logistics assets in Germany, the Czech Republic, Hungary and Slovakia.

Allianz Real Estate and VGP are targeting to grow the joint venture to a gross asset value of €2.8 billion ($3.2 billion) within five years by exclusively acquiring prime assets developed by VGP.

Within these countries, VGP has a pipeline of over 90 assets in around 25 strategic locations, including near capital cities such as Bratislava, Berlin and Budapest, with a total forecast gross leasable assets of more than 2.5 million square meters (26.9 million square feet). The entire land bank has been already secured and a number of assets already delivered.