VGP FIRST REACTION - JV continues to show signs of life
VGP announced yesterday evening a closing in the first Allianz JV of 3 new logistic buildings which are located in Germany (1) and in the Czech Republic (2). The transaction value is around EUR 110m. The closing of the transaction will be completed in January next year. The first JV approaches its target investment volume of 2.0bn, but that could always be expanded with add-on investments in the same parks or regions. VGP and Allianz RE also agreed to extend the term of this First Joint Venture agreement by 10 years to 2036. This additional closing and 10yr extension shows that VGP and Allianz are still on speaking terms and the cooperation will continue well into the next decade. As we stated in our note (13/12), we do not believe the Allianz cooperation is over, but we need to see a stabilization in the market on pricing before discussions can materialise in a significant closure in the announced 4th JV. Our target of EUR 150 equals to 16.3x EPS23 and a 51% premium to NTA (98.7). Over the last 5 years, VGP traded at a premium between 80-170% to NTA. We recently switched our reporting to a REIT model to emphasise the own standing assets and cash returns. We forecast a EUR 3.00 dividend over FY22 that could increase gradually to 3.82 by FY25. The market seems to have given up on VGP's development potential. We take a different view that structural investments remain favourable over the longer term.VGP NV is a Belgium-based real estate development company that constructs and develops industrial real estate and ancillary offices, which are rented out to clients on long term lease contracts. The Company operates in three business segments: the Development activities segment is focused on the identification and acquisition of the land and development of the infrastructure, the design of buildings, the coordination of architectural and engineering aspects, the administration to obtain the necessary permits, the tendering and coordination of the construction works, including site management, and the facility management of the real estate portfolio; the Property Management and Leasing services segment is responsible for managing the operation of the buildings, and the Facilities Management services segment is responsible for managing the operation of the buildings and performs all actions, such as maintenance services, waste management services and maintenance greenery, among others.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.