Jan Van Geet is the founder, main shareholder, and CEO of VGP N.V., a European developer of industrial parks that has two investment funds through the Joint Ventures VGP European Logistics and VGP European Logistics 2. VGP has been present in Spain since July 2015.

– Cadena de Suministro (CdS): VGP has just celebrated 20 years of history in 2018. Did you imagine, at the beginning, that you would be creating the group that VGP is today?

– Jan Van Geet (JVG): In my life, I have often wondered what would have happened if I had done things differently, if I would have done things differently had I been able to go back in time and, most importantly, how I would have behaved had I had the knowledge I have now. I don't see our history as a snapshot or a static series of photographs, but rather as a journey, an ongoing trip that has allowed us to get to where we are today. I am very proud of what we have done and I am very optimistic about our future, because we have the same illusion as in the beginning, with much more experience. I really like Seneca's definition of luck: "Luck is what happens when preparation meets opportunity".

– CdS: In Spain, VGP is entering its fifth year of life. What is your analysis of VGP's trajectory during these first four years and the opportunities that Spain offers its business model?

– JVG: When we look at it in retrospect, we realise that we didn’t come to Spain at an easy time. The financial crisis that is now behind us, had completely stopped real estate investments in Spain for many years and there were many doubts about real opportunities at that moment. Very few companies were investing in the development of new industrial parks and they were not willing to take any unnecessary risks. We knew how to be attentive, reactive, and take the right decisions despite the uncertainties. We always choose prime locations and this allows us to reduce some of the risks in our business.
On the other hand, the growth of e-commerce is also an important driver for our group, both directly and through shipping companies. A new supply network is being created, almost from scratch, in order to be able to provide customers with quicker deliveries. This  network begins in the areas with higher population densities, and spreads to all major cities, very much like how large scale distribution was deployed in the 80s and 90s through shopping centres. Our selectivity in terms of location of our industrial land in Spain, as well as in the rest of Europe, is also an attractiveness factor for our developments for the logistics of the future.

– CdS: Present in 12 countries and with more than 20 years of experience and specialization in the industrial real estate sector, how do you see Spain?

– JVG: Spain is a country that I hold dear to my heart at both personal and business levels. It was our second significant bet in our European extension after Germany, following our first years in the Czech Republic and bordering countries. It is a very dynamic country, full of energy, and offering many opportunities. Our sector is part of a very cyclical market, particularly in terms of land plots.
This can be detrimental for competitiveness because if the plot is too expensive, it can reduce the investment in labour and technology when the sector is precisely undergoing a small revolution in this aspect, with technical skills being increasingly valued and deemed important in the chain. It is a change and a great opportunity, too. We are experiencing this in Germany. Local companies need modern buildings, adapted to their current and future needs. In terms of strategic positioning, dynamism and competitiveness, Spain has the tools to become a great power, also to supply Southern Europe.
In terms of infrastructure, Spain is a country equipped with a great capacity for logistics growth in maritime, aeronautical, and land transport. At regional level, new road rings such as the M50 in Madrid or the SE-40 in Seville, have allowed for the creation of new modern logistics hubs, ideal for future growth, which is the case of our parks in San Fernando and Fuenlabrada in Madrid or Dos Hermanas in Seville.

– CdS: VGP has just completed the transfer of the first portfolio of assets developed in Spain to the latest 50:50 Joint Venture set up with ALLIANZ. What is Spain's place in the common strategy with ALLIANZ?

– JVG: After the success of our first 50:50 Joint Venture, “VGP EUROPEAN LOGISTICS”, we decided to create a second fund on July 1st of this year, and we are very happy to have carried out the first transaction worth 175 million euros in Spain and Romania. This new vehicle aims to reach 1.7 billion euros, i.e. ten times the initial transaction we completed. The fund provides assets in Austria, Benelux, Italy, Spain, Portugal, and Romania. Spain will be one of the great engines in this fund through the development of new projects (eight VGP buildings are under construction in Spain in the second half of 2019) which are being launched in Barcelona, Madrid, Valencia, and Zaragoza, as well as the development of Fuenlabrada and Seville. Spain will also contribute in our objective of continual territorial development for the next three years in all important cities in Spain.

– CdS: What are the group's ambitions in Spain?

– JVG: With our view on the medium to long term, I would like for VGP to have parks of adapted sizes in all major cities in Spain; for example, Bilbao, Malaga, Vigo, Alicante, Pamplona, Girona. These are cities in which we would like to grow, whenever occasions that allow us to bring value and competitiveness to our customers present themselves. I have great confidence in our Spanish team. I wish that they maintain their current levels enthusiasm and energy, their zest of mind and spirits; because it will allow them to fulfil our dreams together. This adventure has only just begun and we will be prepared to find the "luck" that the famous writer and politician from Cordoba, Seneca, described.