VGP has declared the formation of a new 50:50 joint venture called "Saga" in partnership with Areim, a renowned independent fund manager and property owner based in Stockholm. Saga will concentrate on major European markets such as France, Germany, the Czech Republic, Slovakia, and Hungary.
The joint venture aims for a gross asset value of €1.5 billion, maintaining a loan-to-value ratio around 35%. It envisages a five-year investment period and has a lifespan of ten years, with options for multiple extensions.
The Saga joint venture's primary focus will be on strategic European markets, including France, Germany, the Czech Republic, Slovakia, and Hungary. Areim’s contribution to the joint venture is financed through the recently established Areim Pan-European Logistic Fund, which secured €500 million in committed capital from international institutional investors.
The partners in the joint venture have identified a target portfolio that matches their agreed asset completion timelines and investment criteria. This includes a significant initial portfolio expected to be finalized in the first quarter of 2024. Saga's operations will be integrated with VGP’s existing operational joint ventures, where VGP will continue its role as the asset, property, and development manager for an initial decade.
This venture, following the recent announcement with Deka, represents another significant step in expanding VGP's cash recycling model. The cumulative transactions and new joint venture commitments for the year have now reached a gross asset value of €3 billion.