Allianz Real Estate has entered a joint venture with VGP to invest €2.8bn in European logistics real estate over the next five years. It is the fourth joint venture between the real estate arm of Allianz and developer VGP since 2016, and the focus will be on Germany, the Czech Republic, Hungary, and Slovakia. Allianz Real Estate, acting on behalf of Allianz insurance companies, will have exclusive access to prime logistics and semi-industrial assets developed by Belgian company VGP. VGP has a pipeline of more than 90 assets in several locations, including near capital cities such as Bratislava, Berlin, and Budapest, with a total forecast gross-leasable area of more than 2.5m sqm. The two companies first entered a €500m joint venture in 2016 and last year jointly acquired 19 assets for €424m. Allianz Real Estate owns and manages €10.3bn of logistics properties, accounting for 13% of its global assets under management AUM. European logistics accounts for almost half of this at €4.9bn.
Having a dedicated logistics team working alongside prime partners such as VGP has enabled to remain ahead of the curve and continue to add significant capital allocation to our global logistics portfolio – an area that represents a key strategic focus for Allianz Real Estate. Having a partner who shares commitment to sustainable and responsible building and investment practices and have been able to agree to an ESG framework for this new joint venture which appreciates and is aligned with long-term commitments. With a portfolio of prime and certified warehouses under construction and an enviable land bank, the new joint venture benefits from our significant grade-A pipeline in these four markets.