VGP soars on 'long awaited' JV with DEKA Immobilien

VGP NV

24/07/2023 08:33

** Shares in VGP  VGP1.BR  rise about 9% after the Belgian
real estate developer announced a JV with Deka Immobilien in
view of acquiring assets in Germany 
    ** The 50/50 JV - with a total value of 1.1 billion euros 
($1.23 billion) -  is set to buy "over time" 5 parks with 20
buildings of semi-industrial and logistics assets in Germany,
VGP says
    ** "Long awaited new JV partner announced for 5 German
parks," KBC Securities says
    ** "We believe the full completion will come before FY24,"
add the broker, noting that the JV set-up is "equity accounted
for and also financed by vendor loans,"
    ** "VGP can realize small yield gains on the JV transfers as
it is not negotiating with its back against the wall after a 1bn
debt issue and 300m capital increase over FY22" - KBC 
    ** VGP shares are on track for their best day in about 8
months, if gains hold, and tops Belgian blue-chip BEL20 index
 .BFX 

($1 = 0.8975 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))