VGP NV successfully completes fifth closing with VGP European Logistics Joint Venture – EuropaProperty

VGP NV (‘VGP’ or ‘the Company’) announced that today it has successfully completed a fifth closing with VGP European Logistics, its 50/50 joint venture with Allianz Real Estate. The transaction comprised of 9 logistic buildings, including 3 buildings each in a new VGP park and another 6 newly completed logistic buildings which were developed in parks previously transferred to the Joint Venture.

The 9 buildings are located in Germany (5) and in the Czech Republic (4).

The transaction value is €203 million, which includes some future development pipeline. The net proceeds from this transaction (including disposed cash) amounts to circa €130 million.

The net proceeds will be used for financing of existing projects under construction and new projects which will be started-up shortly and for the acquisition of new development land.

Following the completion of this fifth closing the Joint Venture’s property portfolio consist of 77 completed buildings representing over 1.5 million sqm of lettable area, and a gross asset value (“GAV”) of €1.56 billion.

The Joint Venture has €950 million of committed bank facilities maturing in May 2026 which are drawn for €694 million. The bank debt is fully hedged and the weighted average cost of debt amounts to 2.01 percent per annum. The Loan to Value of the Joint Venture stands at 51.1 percent after the fifth closing.

The increase in the Joint Venture portfolio should have a further positive impact on the fee income generated by the asset-, property-, and development management services rendered by VGP to the VGP European Logistics joint venture.