5 January 2022, 8:00pm, Antwerp, Belgium: VGP NV (‘VGP’ or ‘the Group’), a European supplier of high-quality logistics and semi-industrial actual property, has seen a robust efficiency of its improvement and leasing actions in 2021 in all markets the place the Group is energetic.

The 2021 efficiency was characterised by:

• €79.7 million signed and renewed lease agreements (versus €45.2 million for FY20, +76% YoY), bringing complete annualized rental revenue to €256.1 million (+38.3% YoY, along with that VGP signed letters of intent over new future leases representing circa € 30 million of annualised dedicated hire revenue if and when transformed to lease agreements.

  • 1,478,000 m² below development – 1.7x the extent of Dec 2020 – representing €93.9 million in extra annual hire as soon as absolutely constructed and let (at present 83.8% pre-let)

  • 652,000 m² of recent tasks added to the finished portfolio, now at 3.09 million m² (99.4% let)

• Growth of land financial institution secures future development

  • 4.04 million m² of recent land positions acquired and an extra 3.98 million m² dedicated topic to permits

  • Complete land financial institution acquired and dedicated has grown to 10.94 million m² (+43.0% YoY) which offers at the least 5 million m² of future lettable space

• Began operations in France, Serbia and Croatia and eyeing additional enlargement in different continental European international locations together with Sweden, Greece and Denmark

• Launched fourth three way partnership with Allianz Actual Property with an funding capability of €2.8 billion and first closing anticipated in second half of 2022

• Robust capital place following completion of €300 million capital enhance on 24 November 2021

• Consolidated monetary outcomes for FY2021 are scheduled for publication on 24^th of February. The Annual Report 2021 is scheduled to be revealed on 12^th of April

VGP’s Chief Government Officer, Jan Van Geet, mentioned: “Our 2021 operational efficiency was underpinned by a surge in demand leading to a report variety of new leases signed : in the midst of one single 12 months to the identical quantity as to what our complete hire roll 4 years in the past consisted of – with as predominant drivers house required for the adoption of new applied sciences and the rise of e-commerce.”

Story continues

Jan Van Geet continued: “On account of our rising and available land financial institution, we’ve been capable of start-up many iconic principally absolutely pre-let tasks this 12 months – together with our VGP Park Gießen Am alten Flughafen, Berlin Oberkrämer, Budapest Aerozone and Sevilla Dos Hermanas, and considerably expanded – once more principally pre-let – development works in lots of current parks, together with in Bratislava, Magdeburg and Nijmegen. But, on the similar time we have been capable of make vital investments into land and redevelopment alternatives that can drive our Group’s future prospects by way of 32 land acquisitions in the midst of 2021, and 41 dedicated land plots. As a result of profitable capital elevate carried out in November and the brand new three way partnership introduced final week with Allianz we’re set to proceed to give you the chance to seize extra of such prime alternatives and look with confidence into 2022.”
Jan Van Geet added: “Final 12 months, we made important progress on our sustainability agenda as we additional enhanced our constructing and reporting requirements, are engaged on a number of DGNB Klima Constructive pilot tasks, switched all VGP workplaces to inexperienced vitality and our basis agreed to assist 30 tasks round surroundings, social engagement and cultural heritage preservation .

Jan Van Geet concluded: I wish to finish by thanking our colleagues and companions. The distinction between the hardship imposed on all these continued to be affected by COVID-19 and the very excessive stage of client-led demand for logistics created a difficult and complicated surroundings for all of us at VGP to navigate. I owe all of the members of the VGP Household an excessive amount of gratitude.”

OPERATING HIGHLIGHTS

Robust new leasing exercise continued

• Signed and renewed rental revenue of € 79.7 million pushed by 1,313,000 m² of recent lease agreements signed (similar to € 74.6 million of recent annualised rental revenue), mixed with 102,000 m² of lease agreements renewed (similar to € 5.1 million of annualised rental revenue).

• Germany contributed half of the brand new leases (€ 37.3 million; 50%) while the rest was geographically properly unfold throughout the markets VGP operates: Czech Republic € 10.2 million (14%), Spain € 5.4 million (7%), Hungary € 4.2 million (6%), Romania €3.5 million (5%), Italy €3.3 million (4%), Austria €3.2 million (4%), Portugal €2.4 million (3%), Slovakia € 2.1 million (3%), Latvia €1.9 million (3%) and Netherlands €1.1 million (1%).

• Terminations represented a complete of € 3.7 million or 70,000 m² (of which 46,000 m² inside the Joint Ventures’ portfolio).

• The overall signed lease agreements symbolize € 256.1 million¹ annualised dedicated rental revenue (equal to 4.46 million m² of lettable space), a 38.3% enhance versus December 2020 reported at € 185.2 million.

• Along with the signed lease agreements , VGP has signed quite a lot of Letters of Intent over new future Leases representing € 30 million of annualised dedicated hire revenue if and when transformed to lease agreements.

• VGP expects a big quantity of rental enhance all through its complete portfolio as just about all of its lease agreements are yearly listed in opposition to inflation.

File stage of development exercise

• Throughout 2021 we delivered 26 tasks representing a report 652,000 m² of lettable space, which equates to €32.0 million of annualised dedicated rental revenue (99.8% let).

• At year-end 50 tasks have been below development representing 1,478,000 m² of future lettable space, which, as soon as delivered and absolutely let, will generate €93.9 million of annualised dedicated rental revenue; the portfolio below development at year-end was 83.8% pre-let².

File land financial institution expansion

• During the last 12 month in complete 4,037,000 m² of land was acquired representing a improvement potential of 1,776,000 m² and an extra 3,981,000 m² of land plots have been dedicated, pending permits, which have a improvement potential of at the least 1,690,000 m² of future lettable space, bringing the overall owned and dedicated land financial institution to 10,938,000 m² (+43.0% year-over-year), supporting a minimal of 4,983,000 m² of future lettable space

• Along with the owned and dedicated land financial institution, VGP has signed non-binding agreements (“land below choice”) and is at present performing due diligence investigations, on an unique foundation, on the potential acquisitions of in complete circa 2,859,000 m² of recent land plots with a improvement potential of at the least 1,304,000 m².This brings the land financial institution of owned, dedicated and below choice to 13,797,000 m² supporting a minimal of 6,287,000 m² of future lettable space.

• From an asset worth perspective, the land financial institution is predominantly Western European-based however on the bases of sq. meters the land financial institution is properly unfold throughout the international locations during which we function.

• Our group continues to seek out extra – more and more brownfield – websites for future improvement, and we’re working with planning authorities on the simplest and sustainable utilization and regeneration of such websites with the intention to scale back our affect on the surroundings.

Important strengthening of the group

• The group expanded to >320 FTE equal as we employed 60 extra folks throughout the group.

• We have now strengthened our groups throughout the board which is able to improve our product choices and deepen our engagement with our shoppers.

Expanded relationship with Allianz by way of fourth three way partnership

• In June 2021, VGP and Allianz Actual Property introduced the profitable eighth and last closing of the primary 50/50 three way partnership, VGP European Logistics. The transaction comprised of 4 logistic buildings, together with two buildings in a brand new VGP park and one other two newly accomplished logistic buildings which have been developed in parks beforehand transferred to the three way partnership. Following this transaction this three way partnership reached its expanded funding goal and is absolutely invested³. The transaction worth was € 68.2 million⁴. The gross proceeds from this transaction quantities to circa € 51.8 million. Moreover, in September 2021 VGP obtained a €21.1 million profit-distribution from the First Joint Enterprise.

• In December 2021, VGP and Allianz Actual Property entered into a brand new 50:50 three way partnership with a €2.8 billion goal. That is the fourth three way partnership with Allianz Actual Property.

• The ESG setup for the brand new partnership goals to embody Carbon Danger Actual Property Monitor and EU Taxonomy compliance, on a best-efforts foundation, using Sustainable Certification together with excessive BREEAM or DGNB scores, and EPC standards, amongst others.

• The managerial and governance setup of the brand new partnership is just like the primary three joint ventures with VGP serving the brand new three way partnership as its sole asset, property and improvement supervisor. Equally, to the primary three way partnership which reached its funding goal, the brand new three way partnership will think about the acquisition of income-generating property developed by VGP in Germany, Czech Republic, Slovakia and Hungary

• A primary closing for the brand new three way partnership is anticipated within the second half of 2022.

• In respect of the enlargement of the Second Joint Enterprise, it’s anticipated {that a} additional closing will happen in the course of the first half of 2022. This third closing is anticipated to generate proceeds of circa € 120-130 million⁵

Strengthened capital and monetary place

• On 24 November, VGP efficiently accomplished a €300 million providing of recent shares (equal to six.1% of shares excellent).

• The web proceeds and extra leverage headroom present VGP with the chance to reinvest in its improvement pipeline and proceed to develop the enterprise.

• The Group additional advantages from renewed and expanded multi-year⁶ €200 million revolving credit score services that are at present undrawn.

Growth of the Group’s European footprint

• The Group additional expanded its European footprint with the acquisition of a primary land plot in Serbia, the place a 1.1 million m² land place was acquired close to Belgrade Airport.

• The Group has opened its first workplace in France (Lyon). Within the coming interval the main focus will probably be on figuring out appropriate improvement places.

• Different continental European international locations, together with Sweden, Denmark and Greece, stay in focus for potential future enlargement.

Important development in renewable vitality energy era

• A complete solar energy era capability of 74.7MWp is at present put in or below development by way of 57 roof-projects. That is being realised by way of a €38.4 million funding thus far. As well as, the at present recognized pipeline of 37 tasks equates to a further energy era capability of 74.5 MWp.

Progress in direction of our Sustainable Improvement Targets

• We have now made important progress in direction of our Sustainable Improvement Targets and are on monitor to realize carbon neutrality by 2025 and 50% gross discount by 2030 below scope 1 and a couple of.

• On the subject of the sustainable constructing goal, the Group goals for BREEAM Glorious or equal for all new builds in 2022 (requirement minimal BREEAM Very Good).

• As of 1 January 2022, all of VGP’s European workplaces switched to renewable vitality as a Digital Energy Buy Settlement was reached with Scholt Power B.V., the unbiased vitality provider, and ACT Commodities B.V., the European vitality buying and selling home, to supply photo voltaic vitality from VGP’s current photo voltaic farm on the roofs of VGP Park Nijmegen, Netherlands, to VGP workplaces throughout Europe. The settlement covers VGP’s 20 workplaces throughout 13 international locations. Moreover, it’s envisaged to incorporate VGP’s new workplaces in France and Serbia this 12 months additionally.

• Disclosure has been considerably enhanced following the publication of the GRI compliant 2020 Company Accountability Report the Group reported its annual CDP and GRESB submissions and obtained an preliminary Sustainalytics rating. The plan is to provoke an MSCI ESG rating in 2022.

VGP confirms appointment of new CFO

• VGP is happy to announce that Piet Van Geet has joined as Chief Monetary Officer beginning 10 January 2022. Piet will take over from Dirk Stoop who’s stepping down after virtually 15 years as VGP’s CFO

• Previous to becoming a member of VGP, Piet Van Geet (*1985) has been 8 years the CFO of Drylock Applied sciences, a number one disposable hygiene producer with operations in Europe, Russia, USA and Brazil. After his research he joined VGP as a undertaking supervisor within the Baltics and Romania and continued his profession at VGD in auditing and finance consulting previous to becoming a member of Drylock Applied sciences. Piet holds levels on the College of Antwerp of Utilized economical sciences and a Grasp of Tax legislation

• As a way to guarantee continuity and a clean transition course of in addition to additional strengthening of the Group’s company governance, the board has determined to nominate Dirk Stoop as Firm Secretary beginning 10 January 2022. By doing so, the Firm implements the rules 3.19 of the Belgian Code on Company Governance. With the appointment of the Firm Secretary, the CFO will not fulfil any of the secretarial duties which have been beforehand mixed with the CFO operate

• The board of administrators have additionally agreed to amend the VGP company governance constitution to replicate the aforementioned modifications

Outlook 2022

• Consumer demand and absence of provide of grade A logistics and industrial buildings are supporting hire ranges and occupancy. The underlying fundamentals for logistics and semi-industrial actual property stay sturdy with e-commerce persevering with to be a giant driver for demand of recent lettable house.

• Based mostly on the sturdy leasing actions as reported over the course of 2021 and indications of curiosity obtained for the approaching interval, improvement actions are anticipated to proceed to function at elevated ranges properly into 2022

• Long term improvement actions will proceed to be pushed by client-led demand and our capacity to satisfy these alternatives with a.o. VGP’s available prime land financial institution places

• On the subject of VGP Renewable Power, the Group focuses on an enlargement of the service providing by way of elevated manufacturing of inexperienced vitality used for self-consumption and facilitating our shoppers of their transitioning in direction of inexperienced vitality

FINANCIAL CALENDAR

CONTACT DETAILS FOR INVESTORS AND MEDIA ENQUIRIES

ABOUT VGP

VGP N.V. is a pan-European developer, supervisor and proprietor of high-quality logistics and semi-industrial actual property. VGP operates a completely built-in enterprise mannequin with capabilities and longstanding experience throughout the worth chain. The corporate has a improvement land financial institution (owned or dedicated) of 10.94 million m² and the strategic focus is on the event of enterprise parks. Based in 1998 as a Belgian family-owned actual property developer within the Czech Republic, VGP with a employees of circa 350 workers owns and operates property in 12 European international locations instantly and thru a number of 50:50 joint ventures. As of June 2021, the Gross Asset Worth of VGP, together with the joint ventures at 100%, amounted to € 4.48 billion and the corporate had a Web Asset Worth (EPRA NTA) of € 1.51 billion. VGP is listed on Euronext Brussels (ISIN: BE0003878957).

For extra data, please go to: https://www.vgpparks.eu

Ahead-looking statements: This press launch could comprise forward-looking statements. Such statements replicate the present views of administration concerning future occasions, and contain recognized and unknown dangers, uncertainties and different elements which will trigger precise outcomes to be materially totally different from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. VGP is offering the data on this press launch as of this date and doesn’t undertake any obligation to replace any forward-looking statements contained on this press launch contemplating new data, future occasions or in any other case. The knowledge on this announcement doesn’t represent a suggestion to promote or an invite to purchase securities in VGP or an invite or inducement to have interaction in every other funding actions. VGP disclaims any legal responsibility for statements made or revealed by third events and doesn’t undertake any obligation to right inaccurate knowledge, data, conclusions or opinions revealed by third events in relation to this or every other press launch issued by VGP.

¹ For Joint Ventures at 100%
² Calculated based mostly on the contracted hire and estimated market hire for the vacant house.

³ Barring any top-ups associated to property being accomplished in parks already owned by the three way partnership
⁴ The transaction worth consists of the acquisition value for the finished revenue producing buildings and the online ebook worth of the event pipeline which is transferred as a part of a closing however not but paid for by the First Joint Enterprise.
⁵ Topic to last settlement between the three way partnership companions when it comes to the transferred revenue producing property and pricing
⁶ €150 million matures on 31 December 2026 and €50 million matures on 31 December 2024

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