VGP, a leading European developer, manager and owner of high-quality logistics and semi-industrial real estate, announces its new real estate development in the West of Romania: VGP Park Arad. First deliveries in the park are scheduled as of 2021. VGP was assisted in the ground acquisition by CBRE.
The new plot new location secured by VGP Romania, a company with the ambition to widen and strengthen its presence on the national market, is strategically positioned within Arad city limits, with perfect connectivity to European road networks being adjacent to the A1 highway and just 50 km away from Timisoara as well as the Romanian/Hungarian border point (Nadlac).
On a land plot of 39 Ha, VGP Park Arad will offer as of 2021 a potential lettable area of up to 200,000 m2, ideal for Light Industry, Automotive pre-assembly operations as well as Logistics and Distribution/Courier hubs.
The full permitting already in place as well as local support and efficiency of Arad city local authorities are the premises for fast development of both build-to-suit projects and/or standard buildings according to VGP’s high quality specification.
Adrian Crizbasianu, Country Manager VGP Romania, stated: “This new VGP investment and development in Arad region stands proof to VGP Group trust on Romanian market and unaltered plans, by the 2020 complicated context, to expand its local presence & achieve national coverage with it’s high quality logistics parks. We wish to address special thanks to CBRE local office who mediated the land transaction and at the same time to invite all our agents and partners to entrust VGP with their customer’s projects & requests focused on the West of Romania”
VGP Romanian subsidiary of the group, a company with a long standing presence in Romania since 2007, owns presently active parks in Timisoara and Sibiu as well as significant land bank secured for developments in Brasov, Bucharest and now Arad. The VGP Group has a total of 72 parks located in twelve European countries and is on aa path of expansion in all of its markets.
VGP also announced that, based on current preliminary condensed consolidated financial statements which are still subject to its auditor’s limited review, the Group expects a net profit for the half year ended 30 June 2020 of between €180 million and €200 million. This compares to a net profit of €75 million for the half year ended 30 June 2019.
VGP’s Chief Executive Officer, Jan Van Geet, said: “We are very pleased with the performance and the expected net profit for the first half of 2020, which results from the very strong letting performance over the last 18 months. During the first half we have focused on our project management with795,000 m²of new projects under construction at the end of June 2020, of which the bulk will be delivered during the next 12 months”.
Jan Van Geet concluded: “Overall, the impact of the coronavirus pandemic on our operational activities has remained limited so far but we will remain vigilant as COVID-19 is not yet behind us. All figures reported herein are preliminary and subject to auditor’s limited review. VGP will report its financial figures for the half year ended 30 June 2020 on 24 August 2020 and a management conference call is planned that same day to review the financial results (dial-in details will be available on VGP website in due course).
VGP is a leading pan-European developer, manager and owner of high-quality logistics and semi-industrial real estate. VGP operates a fully integrated business model with capabilities and longstanding expertise across the value chain. The company has a development land bank (owned or committed) of 6.67 million m² and the strategic focus is on the development of business parks. Founded in 1998 as a family-owned real estate developer in the Czech Republic, VGP with a staff of over 220 employees today owns and operates assets in 12 European countries directly and through VGP European Logistics and VGP European Logistics 2, both joint ventures with Allianz Real Estate. As of December 2019, the Gross Asset Value of VGP, including the joint ventures at 100%, amounted to € 2.77 billion and the company had a Net Asset Value (EPRA NAV) of € 741 million. VGP is listed on Euronext Brussels and on the Prague Stock Exchange.