VGP NV, a European provider of prime logistics and semi-industrial real estate, has announce the formation of a new 50:50 joint venture (JV) called “Saga” with Areim, an independent fund manager and property owner based in Stockholm.
The aim of this joint venture is to achieve a gross asset value of EUR 1,5 billion with a loan-to-value ratio of approximately 35 %. The venture is expected to have an investment period of five years, with a total duration of 10 years, with several options for extension.
Saga Joint Venture will focus exclusively on key European markets including the Czech Republic, Slovakia, France, Germany and Hungary. Funding for Areim’s stake in the joint venture comes from the recently closed Areim Pan-European Logistic Fund, which was closed with an injection of €500 million in capital raised from international institutional capital.
The joint venture partners have allocated a target portfolio in line with the agreed timing of asset completion and investment criteria, including a large initial portfolio which is scheduled to close in the first quarter of 2024. Saga will operate in line with VGP’s operating joint ventures and will retain its role as asset, property and development manager for the Group for an initial ten year period.
The joint venture also presents an important milestone in the expansion of VGP’s cash recycling model following the recent announcement of Deka Immobilien, whose total effective transactions and new commitments in the joint venture this year alone amount to a gross asset value of €3 billion. As the recent acquisitions in France and Germany have shown, the Group is focused on growth opportunities in the current market environment and Saga will enable VGP to further accelerate and expand its development. The Group will report on further progress.
Photo: VGP Park České Budějovice
