Towards 2 billion Euros for the logistics portfolio for AG real Estate and Heylen Group

Spotted in @tijd

After a successful five-year partnership, AG Real Estate and Heylen Warehouses wish to give their joint venture for logistics real estate an extra boost. A doubling of the portfolio in the next five years to 2 billion Euros is realistic, an IPO is not. In 2016, AG Real Estate bought 50 percent of the Heylen Group's real estate portfolio, in order to build a 50-50 joint venture for logistics real estate together. The objective was to develop a portfolio of at least 500 million Euros in five years. Today the value stands at around 800 million Euros.

AG Real Estate investment committee has now authorized an increase up to 1.2 billion Euros. According to Amaury De Crombrugghe, Chief Investment officer at AG Real Estate, there is a good probability that the logistics portfolio of the joint venture will grow to 2 billion. AG Real Estate’s real estate portfolio is now valued at 6.5 billion Euros. This is made up of offices (35%), retail (23%), logistics (11%) and car parks (17%). The share of logistics has increased from 8 to 11 percent in five years.
In the interview from De Tijd, Amaury De Crombrugghe explains the strategy of AG insurance: “As an insurer, AG has always been interested in real estate. But now even more than before. The prospective of a respectable return is much better today than with bonds. As a result, AG has increased the share of its portfolio in real estate.

The joint venture currently includes 9 logistics sites with a total surface area of 750,000 m². Growth is already on the right track. The Heylen Group has a land bank of 1.4 million m², of which 760,000 m² has already been fully licensed. The joint venture with AG Real estate is liberal in nature. Heylen is not obliged to offer every project to the joint venture, and the joint venture is not obliged to purchase what is offered.

For Wim Heylen, the founder of Heylen Group with his business partner Didier Clerx: “e-commerce is only part of the growth story. The rapid availability of assets is also gaining importance in the business-to-business model. 'Just in time' is becoming more 'just in case' again. Corona has reinforced this trend. Logistics will remain a booming business for me for the next 5 years.

Read more in De Tijd Report ['You do business between people, not between companies']