Pan-European developer VGP has formed a 50:50 joint venture with Nordic fund manager and property owner Areim.
Saga aims for a total investment of €1.5 bn, maintaining a loan-to-value ratio of 35%. With a planned investment period of five years and a total term of ten years, extendable through various options, Saga will target key European markets like France, Germany, The Czech Republic, Slovakia, and Hungary.
The financing for Areim's share in the JV is sourced from the recently closed Areim Pan-European Logistic Fund, which secured €500 mln in committed capital from international institutional investors.
The partners have outlined a target portfolio aligned with agreed-upon completion timelines and investment criteria, incorporating a substantial seed portfolio set for closure in Q1 2024. For an initial term of ten years, Saga will operate in synergy with VGP's operational joint ventures, with VGP serving as the asset, property, and development manager.
JLL acted as the advisors to Areim.
Saga represents a significant milestone in VGP's cash recycling model, building on the €1.1bn 50/50 joint venture with Deka Immobilien announced in July. This JV will acquire, over time, a portfolio of five parks with 20 buildings of German semi-industrial and logistics assets developed by VGP.
The total effective transactions and new JV commitments for VGP have reached €3 bn in gross asset value in 2023 alone.
