VGP creates €1bn German logistics investment venture with Deka

European logistics company VGP and real estate investor Deka Immobilien have created a €1.1bn partnership to acquire assets in Germany.

The 50:50 joint venture has been set up to acquire a portfolio of five parks with 20 buildings developed by VGP over time.

Malte-Maria Münchow, the head of logistics, hotel and retail acquisitions and sales at Deka, said the German logistics venture is Deka’s first European real estate joint venture and it reflects the two firms’ ”shared ambition to create a stable and long-term portfolio of prime semi-industrial and logistics assets”.

Münchow added: “This joint venture, the largest European logistics transaction of 2023 so far, is expected to contribute substantially to our European portfolio and fits within our aim to continue our growth as a real estate manager using an approach that focuses on quality and contributes to our sustainable business strategy – in economic, environmental and social terms.”

Jan Van Geet, CEO of VGP, said: “Our joint venture marks an important milestone in our strategy to further diversify our cash recycling model and it speaks for the quality of our platform that we have been able to come to this partnership notwithstanding the adverse investment market conditions.

“We will share further details with our H1 update, but we are well on track to deliver on our targets for 2023 and beyond.”

The latest joint venture extends VGP’s existing joint ventures and will be operated in a similar way, in which VGP will continue to be the asset, property, and development manager of the assets.

VGP’s existing joint ventures include one with Allianz Real Estate. Last year Allianz and VGP entered into a partnership to invest €2.8bn in European logistics real estate over the next five years. The deal which marked the fourth joint venture between the real estate arm of Allianz and developer VGP since 2016, targets Germany, the Czech Republic, Hungary and Slovakia.

Allianz’s real estate business, acting on behalf of Allianz insurance companies, has exclusive access to prime logistics and semi-industrial assets developed by Belgian company VGP.

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