Allianz Real Estate has entered into a joint venture with VGP to invest €2.8bn in European logistics real estate over the next five years.
It is the fourth joint venture between the real estate arm of Allianz and developer VGP since 2016, and the focus will be on Germany, the Czech Republic, Hungary and Slovakia.
Allianz Real Estate, acting on behalf of Allianz insurance companies, will have exclusive access to prime logistics and semi-industrial assets developed by Belgian company VGP.
VGP has a pipeline of more than 90 assets in a number of locations, including near capital cities such as Bratislava, Berlin and Budapest, with a total forecast gross-leasable area of more than 2.5m sqm.
The two companies first entered a €500m joint venture in 2016 and last year jointly acquired 19 assets for €424m.
Allianz Real Estate owns and manages €10.3bn of logistics properties, accounting for 13% of its global assets under management AUM. European logistics accounts for almost half of this at €4.9bn, as at 30 September 2021.
“We are acutely aware of the impact that e-commerce has generated in terms of the opportunities available in the market, where onshoring and inventory management on the building networks are essential,” said Kari Pitkin, head of business development for Europe at Allianz Real Estate.
“Having a dedicated logistics team working alongside prime partners such as VGP has enabled us to remain ahead of the curve and continue to add significant capital allocation to our global logistics portfolio – an area that represents a key strategic focus for Allianz Real Estate.”
Jan Van Geet, CEO of VGP, said: “We are delighted to be expanding our partnership with Allianz Real Estate, as this new joint venture will give VGP greater optionality to refinance whilst continuing to expand the group’s asset base and development pipeline.
“Having a partner who shares our commitment to sustainable and responsible building and investment practices, we are very pleased we have been able to agree to an ESG framework for this new joint venture which appreciates and is aligned with our long-term commitments.
“With a portfolio of prime and certified warehouses under construction and an enviable land bank, the new joint venture benefits from our significant grade-A pipeline in these four markets.”
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