News Article Europe industrial Jan Van Geet logistics VGP
by Property Forum | Industrial

Industrial and logistics developer VGP said its contracted rental income stood at €303.2 million in 2022, up 18.4% compared to 2021, while its volume of new delivered projects reached a record 1.1 million sqm. 

At the same time, VGP recorded an operating profit of €177.5 million before unrealized valuation losses of €293 million which reflected a a like for like negative revaluation change of 7.33% on VGP’s portfolio. 

“We approach 2023 with confidence as we see continued healthy occupier demand, start to see construction costs coming down, and our technical competence and ESG measures becoming increasingly important factors of distinction. We benefit from a strong cash position and are on the look-out for new opportunities which will become available in the present environment, yet, we remain vigilant due to prevailing uncertainties and are focused on profitable developments against attractive conditions,” said Jan Van Geet, CEO of VGP. 

Last year, Germany contributed most new leases (€ 25.4 million; 44%) while the rest was split between several markets: Romania €5.2 million (9%), Spain €4.4 million (8%), Czech Republic €4.3 million (8%), Netherlands €3.9 million (7%), Serbia €3.5 million (6%), Hungary €3.2 million (6%), Slovakia €3.1 million (5%), Austria €2.4 million (4%), Latvia €1.2 million (2%), Portugal €0.8 million (3%), and Italy €0.1 million (1%). 

The total contracted income for last year was generated from VGP’s projects that have a combined leasable area of 5.2 million sqm. During 2023, the developer increased pricing for new rental contracts by an average of 12%. 

At the end of 2022, VGP had 26 projects under construction with a planned leasable area of 814,000 sqm. 

The developer continued to acquire land and closed deals for close to 2 million sqm over the last 12 months. Another 2.4 million sqm of land plots were committed, pending permits for development. All in all, the land bank can accommodate new investments with a leasable area of around 5 million sqm. 

VGP is also negotiating new joint venture deals and got €60 million in profit from these partnerships during 2022. 

On the financial side, the developer has €400 million worth of revolving credit facilities which remain undrawn and in early 2022 sold green bonds worth around €1 billion.