ZELE, Belgium, March 1, 2016 /PRNewswire/ --
The Europe wide active real estate group VGP (http://www.vgpparks.eu) and the property investment and asset manager Allianz Real Estate (http://www.allianz-realestate.com) have agreed to start a 50:50 joint venture with a total transaction value of over 500 million euro. In the joint venture, the financial assets of the projects developed by VGP in Germany, the Czech Republic, Slovakia and Hungary will be pooled. The logistic and semi-industrial real estate portfolio is to be continually expanded and support VGP's growth in the long term. The joint venture will only acquire projects developed by VGP exclusively.
Financing secured for new logistics and industrial parks
By selling existing income generating assets to the joint venture, a part of the originally-invested capital will be freed up and reinvested in the project pipeline. VGP thus ensures the continuity of its business model: acquiring spaces which are strategically well-placed in terms of access, project development of logistics and semi-industrial property and the long-term renting-out of the properties. As part of the joint venture, VGP will act as the property, asset and development manager. The tenants will continue to receive all services from VGP.
"We are delighted to have found a strong and reputable partner in Allianz Real Estate. With the joint venture we can consistently continue our growth from the last few years. At the same time, our company will retain decision-making power about new developments," explains Jan Van Geet, CEO of the VGP Group. "Like us, our joint venture partner is also committed to a long-term perspective and wants to grow with us. We want to convince our current tenants and potential new tenants of the quality of our products and the advantages of a collaboration. Together with Allianz Real Estate, this will be even more successful and dynamic in the future than it has been in the past."
2015: a record year for VGP
The VGP Group also managed to increase its net profits to 86.6 million euro in the 2015 business year corresponding to growth of 37.2 million euros compared to 2014. The committed annualised rent income was increased by 68.2 per cent to 38 million euro. The occupancy rate of the property portfolio was 97.3 per cent. VGP is listed on the Euronext Brussels and the Prague Stock Exchange. More information on the annual result can be found at http://www.vgpparks.eu/investors/en.
FleishmanHillard Germany GmbH
SOURCE VGP Group