Allianz Real Estate, the property arm of the German insurance giant, in partnership with pan-European developer VGP, has acquired 19 logistics buildings across Europe for €424 mln.
The deal represents the seventh successful close of the pair's 50:50 joint venture, VGP European Logistics, and the second closing with VGP European Logistics 2, its successor fund.
The two transactions combined include 9 buildings in five new VGP parks and another 10 newly completed logistic buildings which were developed in parks which were already transferred to one of the joint ventures in a prior closing.
The 19 buildings are located in Germany (6), Spain (4), the Czech Republic (3), Netherlands (2), Italy (2), Romania (1) and Slovakia (1).
The transaction with VGP European Logistics amounts to a value of €166 mln with gross proceeds of €127 mln, while the closing with VGP European Logistics 2 amounts to a value of €258 mln with gross proceeds of €191 mln. The two closings combined represent a value of € 424 mln and generated gross proceeds of €318 mln.
The proceeds will be applied by VGP 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 be started-up shortly.
Following these transactions, the JVs' property portfolio consist of 111 completed buildings (of which 91 buildings held by VGP European Logistics, 18 buildings held by VGP European Logistics 2 and two buildings held by VGP Park München) representing 2,176,000 m2 of lettable area, with a 99.4% occupancy rate.
For Allianz Real Estate, this transaction adds to its €8.8 bn global logistics assets under management, 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.
