European logistics real estate company VGP has partnered with fund manager Areim to invest in assets.
The pair have set up Saga Joint Venture, a 50:50 partnership that targets €1.5bn worth of gross asset value with a 35% loan-to-value ratio as it invests exclusively in key European markets, including France, Germany, The Czech Republic, Slovakia, and Hungary.
Areim is financing its share in the venture with capital from the Areim Pan-European Logistic Fund, a vehicle that raised €500m at its close.
Saga Joint Venture expects to have a five-year investment period and a total term of ten years, with several extension options.
The joint venture partners have agreed upon a portfolio of assets to invest in, including “a substantial seed portfolio” that is scheduled to close in the first quarter of 2024.
VGP said the latest venture broadens its cash recycling model, bringing the total effective transactions and new joint venture commitments up to €3bn gross asset value this year only.
Back in July VGP and real estate investor Deka Immobilien created a €1.1bn partnership to acquire assets in Germany. The 50:50 joint venture was set up to acquire a portfolio of five parks with 20 buildings developed by VGP over time.
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