Interview with Jonny Allen, Development Director of Urban and Last Mile Logistics

Jonny, can you recall when you first came across VGP?

I had my first encounter with VGP about 18 months ago during my Europe-wide work for my previous employer, Amazon, where I was responsible for all new last mile activities. In this context, I was dealing with VGP on various last mile opportunities across different European markets. As more and more of its sites were brought forward for last mile activities, I was able to experience VGP’s work first-hand.

After a successful career as Head of the European Logistics Real Estate team at Amazon (with overall responsibility for the expansion of Amazon’s last mile and specialty fulfilment real estate network across the EU), you joined VGP in March 2021. What made VGP so attractive to you?

VGP’s corporate culture was definitely a strong argument for me to join the company. Our CEO, Jan Van Geet, personally explained VGP’s business model to me and emphasised the deeply entrenched family theme. This theme runs through everything VGP does and a good example of this can be found in our approach to our customer relationships. Unlike many developers, VGP retains a long-term investment in the buildings that we develop and therefore we are able to build strong and long-term relationships with many customers across multiple markets. Additionally, VGP’s high growth potential was very appealing to me. We have a very good track record and are a well-funded company. Currently, VGP operates in almost all European markets, but there is still a lot of room for us to grow. I really appreciate working for a company that is as ambitious and dynamic as VGP. Our recent issuance of green bonds and the extremely positive market reaction have confirmed that the market has real faith in VGP as a dynamic, very promising company.

In your new role, you will be responsible for developing VGP’s last mile, e-commerce and urban logistic offering across all of the countries that VGP operates in. After the first few weeks, what do you see as your top priorities?

I will first and foremost be supporting VGP with the acquisition of new sites, including transaction and lease negotiations, for last mile activities across Europe. The focus in this context is on sites located within close proximity to metropolitan areas which allow our customers to run their business operations in a flexible, speedy, and sustainable way. Currently, we are, for instance, in detailed discussions with several customers for last mile projects in Benelux, Austria, Italy, Spain, Hungary, Germany. In general, acquiring well-located plots in major cities is our number one priority. After all, land is our raw material and key to our success!

Unlike many developers, VGP retains a long-term investment in the buildings that we develop and therefore we are able to build strong and long-term relationships with many customers across multiple markets.

What opportunities do you see for VGP´s business in these markets? And what are, in your mind, major challenges?

Thanks to VGP’s agility, most challenges are also opportunities. Shortage of land is certainly a challenge for our industry. However, as a flexible
family business, VGP does not rely on a whole range of corporate processes when it comes to land acquisitions. In my mind, creating a link to renewable technologies in our daily operations is another major challenge. The design and development of new green logistics and semi-industrial parks which deliver towards high standards of energy efficiency will be key to VGP’s future success. The technology solutions VGP offers directly to its customers are amongst the most advanced in Europe. In last mile projects, we are constantly striving to integrate renewable energy by installing PV on building roofs and supporting technological advancements linked to technical vehicles, amongst others. This is a key priority for us and provides a direct benefit to last mile operators.

Jonny Allen

Sustainability has become one of the key themes for VGP. Is there an increasing demand from your customers/tenants in this respect, or what do you consider to be the main driver behind this shift?

I think we all agree that sustainability is nowadays on the top of everyone’s mind. VGP wants to make an impactful contribution to a more sustainable economy and a more mindful use of natural resources. It is thus perhaps worthwhile noting that last mile projects
are more sustainable than regular warehouses. And at VGP, we are pushing the benefits of warehousing, including in terms of sustainability. Our CEO has made it quite clear, that VGP intends to support the needs of our customers through the build-out of renewable energy assets and the design and development of new green logistics and semi-industrial parks which deliver towards high standards of energy efficiency. We are committed to further implementing comprehensive and sustainable measures along our sustainability strategy in the next years to achieve carbon neutrality by 2025. And perhaps one more aspect: 35% of the VGP portfolio is already certified with BREEAM certification.

In my mind, creating a link to renewable technologies in our daily operations is another major challenge. The design and development of new green logistics and semi-industrial parks which deliver towards high standards of energy efficiency will be key to VGP’s future success.

In addition to sustainability aspects, rapid enhancements in technology are a central theme in the logistics and warehouse real estate sector. What is your opinion on recent  developments in this regard, especially in view of COVID-19?

I have been working in the warehousing and logistics industry for almost twenty years, and I must say that the change the sector has undergone, especially since the pandemic, is incredible. There is, for instance, a much stronger focus on technology in buildings for e-commerce and parcel delivery clients. Consumers  are expecting more choice and faster delivery, and warehouse technology has had to adapt accordingly. As a result, robotics has increasingly been integrated into fulfilment and parcel delivery hubs. There is also a trend towards enhancing the use of technology with regards to electric vehicles for more sustainable deliveries. Overall, everything, from warehousing to delivery, needs to be increasingly interlinked and digitised.

Finally, you grew up in the UK, but have gained a great deal of international real estate experience throughout your professional career. In terms of location, which country or region did you find particularly fascinating? Any favourite place? Throughout my career, I have been lucky enough to travel across the world, to Africa, Asia, Europe, and South America. During the past three to four years my focus has however been entirely in Europe. I spent 12 months in 2017 working in Italy building the Amazon network, and really enjoyed my time there, I am looking forward to spending time in Italy again with my new VGP colleagues. For my role at VGP, I will be based in Antwerp and will be working very closely with our CEO, this is not a country or region that I have spent much time in and I am really looking forward to getting to know this part of the world.

Finally, you grew up in the UK, but have gained a great deal of international real estate experience throughout your professional career. In terms of location, which country or region did you find particularly fascinating? Any favourite place?

Throughout my career, I have been lucky enough to travel across the world, to Africa, Asia, Europe, and South America. During the past three to four years my focus has however been entirely in Europe. I spent 12 months in 2017 working in Italy building the Amazon network, and really enjoyed my time there, I am looking forward to spending time in Italy again with my new VGP colleagues. For my role at VGP, I will be based in Antwerp and will be working very closely with our CEO, this is not a country or region that I have spent much time in and I am really looking forward to getting to know this part of the world.

Jonny Allen Development Director of Urban and Last Mile Logistics
Prior to joining VGP, Jonny worked at Amazon as the Head of Amazon’s European Logistics’ Real Estate team with overall responsibility for the expansion of Amazon’s last mile and speciality fulfilment real estate network across the EU. Jonny Allen has over 17 years of real estate experience. He holds a real estate and property valuation degree and is a member of the Royal Institution of Chartered Surveyors.