Allianz Real Estate and VGP have agreed to form a new 50/50 joint venture. The vehicle, the fourth such venture between Allianz Real Estate and VGP since 2016, will develop a portfolio of prime logistics assets in Germany, the Czech Republic, Hungary and Slovakia. Allianz Real Estate and VGP are targeting to grow the joint venture to a gross asset value of EUR2.8 billion within five years by exclusively acquiring prime assets developed by VGP. Within these countries, VGP has a pipeline of over 90 assets in around 25 strategic locations, including near capital cities such as Bratislava, Berlin and Budapest, with a total forecast GLA of over 2.5 million sqm. The entire land bank has been already secured and a number of assets already delivered. VGP is a leading developer, manager and owner of logistics and semi-industrial real estate. The firm has a development land bank of 10.49 million sqm of own or committed land1 and currently owns and operates assets in 12 European countries. It will again act as the JV manager, asset manager and property manager for the venture with Allianz Real Estate. The logistics sector accounts for 13% of global Allianz Real Estates AUM, or EUR 10.3 billion, with the allocation in Europe at EUR 4.9 billion as at the end of September. 2021 has seen some of the firms most significant transactions, including the single logistics asset in terms of value in the U.S. to date. Its Italian Logistics Fund alone accounts for over EUR 400 million across 16 facilities. The environmental profile of each facility will be a priority, aiming to encompass Carbon Risk Real Estate Monitor and EU Taxonomy compliance, the use of Sustainable Certification including high BREEAM or DGNB ratings, and EPC criteria, among others. As such, the JV will help Allianz Real Estate meet its target to reduce carbon emissions across its portfolio by 25% by 2025 and be carbon net-zero by 2050.