Allianz Real Estate, a subsidiary of the giant German insurer via US corporation PIMCO, is tying up in a joint venture with Czech-based group VGP to invest up to €3bn in logistics real estate over the next five years. It's the fourth joint-venture deal between the two companies since 2016.
In statements issued by both companies, the 50-50 venture will develop a real estate portfolio across Germany, Hungary, the Czech Republic and Slovakia, exclusively buying prime assets developed by VGP.
The Euronext-listed VGP already has a pipeline of more than 90 assets in these countries at about 25 separate locations, including close to capital cities such as Bratislava, Berlin and Budapest, spanning a projected total gross floor area of more than 2.5 million sqm. All the land has been already secured, and a number of the properties have already been handed over.
According to Kari Pitkin, head of business development Europe at Allianz Real Estate, "We are aware of the impact that e-commerce is having on the opportunities in the market, where on-shoring and inventory management in the building networks are crucial. Thanks to a dedicated logistics team working with world-class partners like VGP, we're staying ahead of the curve and can continue to grow our global logistics portfolio, an area that is a key strategic focus for Allianz Real Estate."
VGP will act as the manager, asset manager and property manager for the joint venture with Allianz Real Estate. In line with the latest ESG directives, both companies stress that the new logistics centres will comply with Carbon Risk Real Estate Monitor and EU Taxonomy requirements, and the properties are to be certified with high BREEAM or DGNB ratings.
The new joint venture should help Allianz Real Estate meet its stated target of reducing carbon emissions across its portfolio by 25% by 2025 and of being carbon net-zero by 2050.
In the US market, the Allianz subsidiary PIMCO has alone invested more than €10.3bn in the logistics sector on behalf of parent Allianz, representing 13% of its total assets. VGP has 10.49 million sqm of owned or committed land, and owns and operates properties in twelve European countries. Headquartered in Prague and founded in 1998 as a family business, the company employs 350 staff and has assets under management of €4.48bn.
