VGP, the Dutch logistics and industrial property company, is selling 11 assets in Spain, the Netherlands and Italy to VGP European Logistics 2, a pre-existing JV with PIMCO Prime Real Estate, which is investing on behalf of several Allianz group companies.
The portfolio includes five buildings in four new VGP parks and another six newly completed logistic buildings which were developed in parks and were already transferred to the joint venture in a prior closing, the parties said.
Gross proceeds from this so-called Aurora IV transaction are €197 mln and VGP hopes for fee income for its management services to be generated.
Jan Van Geet, CEO of VGP, said: ‘The Aurora IV closing, which is the largest announced portfolio transaction in the broader European logistics real estate investment market in 2023 thus far, is an excellent addition to our joint venture portfolio in which we jointly work towards building a sustainable, top-quality properties portfolio that creates long-term value for tenants, communities, and the joint venture partners.’
Jan Van Geet added: ‘From a VGP perspective, the transaction will result in a significant cash recycling which strengthens our cash balance for deployment towards new investments and upcoming bond repayments. The transaction, which is due to close in the first half of June, will have a positive contribution to our financial results over the first half of 2023.’
The Second Joint Venture’s property portfolio has now grown to 43 completed buildings representing around 925,000 m² of lettable area, with a 99.7% occupancy rate. VGP and PIMCO have other JV arrangements. The first one got extended at the end of last year.
