E-commerce boom boosts VGP profit

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Together with the profit from Amazon, the profit also booms with the ‘landlord’ of the web giant in Germany.

VGP

have a great corona crisis, thank you. For the second half year in a row, the developer of logistics real estate ‘warns’ a few weeks before publication of the full figures that the profit will be considerably higher than expected.

VGP also benefits from booming e-commerce, which requires warehouse space. The group is the landlord of the web giant Amazon in Frankenthal, Germany.

795.000

100 football fields
At the end of June, VGP had new warehouses under construction for nearly 800,000 m². That is the surface of about 100 football fields.

Those who want to get an idea of ​​which turbo has put the lockdown on e-commerce have not only received an illustration in recent days from Amazon’s stunning quarterly report. The postal group Bpost and the supermarket chain Ahold Delhaize also saw their parcel and online trade respectively increase by 78 percent during the pandemic quarter.

VPG also has joint ventures with the insurer Allianz. As a result, the group – originally mainly active in the Czech Republic – has a strong financial partner for the further development of its land bank – the portfolio of land still to be developed – in 12 Central and South European countries.

“We are very satisfied with the performance and the expected net profit for the first half of 2020, as a result of the very strong rental performance over the past 18 months,” says Van Geet.

‘In the first six months, we mainly focused on our project management with 795,000 square meters (the equivalent of about 100 football fields, ed.) new projects under construction at the end of June 2020. The majority of these projects will be completed in the next 12 months. ‘

“The impact of the corona pandemic on our operating activities has so far been limited. But we will remain vigilant because Covid-19 is not behind us yet, ‘concludes Van Geet.

Investors have already taken an advance on the strong pandemic year. The VGP share closed on record on Wednesday (see graph) and has more than doubled since early 2019. In April, in full lockdown, VGP raised 200 million fresh money in a matter of hours for further expansion.

After the announcement in Brussels, the VGP share price on Thursday to 9 percent higher to 132.80 euros, a record.

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