VGP Continues Prudent Stance in Current Market Turmoil

VGP announced that, together with its joint venture partner Allianz Real Estate, the Group has decided to postpone the seed portfolio closing of the Europa Joint Venture originally envisaged for November due to the volatile market environment.

Jan Van Geet, CEO of VGP, said: “As today’s limited transparency on pricing makes it difficult to come to an agreement, we prefer to let the current volatility in the market sink in first before we complete any transaction. For that reason, we have decided to step away from the opportunity to monetize our Europa seed portfolio this year and we will reevaluate once a calmer environment has returned.”

Francois Trausch, CEO of Allianz Real Estate, said: “We value our ongoing relationship with our long-term partner VGP and we continue to find the logistics asset class in Europe attractive. VGP’s pipeline portfolio remains a promising opportunity for Allianz Real Estate being built at prime locations, with quality tenants and to high ESG standards.”

The closing transaction for the VGP Park München joint venture is anticipated to be conducted before the end of the year. A decision on the timing of the Europa seed portfolio closing is expected to be taken next year. In the meantime, bank financing facilities are available and the Group is evaluating all financing options.