September 15, 2014

W. P. Carey completes sale-leaseback with Nokia in Poland

W. P. Carey completes sale-leaseback with Nokia in Poland

W. P. Carey, a global net-lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net-lease properties, has announced that CPA®:17 – Global, one of its managed non-traded REITs, has completed a sale-leaseback with Nokia Solutions and Networks (NSN). The office/R&D facility is located in Krakow, Poland and was acquired for €9.7 million ($13 million).

Key facts of the deal include:

Strategic facility: Completed in 2003, the 4,961 sqm facility houses approximately 300 engineers, computer technicians and researchers who are working within Nokia’s network and telecom infrastructure division – which remains the core business of Nokia following the sale of its mobile phone division to Microsoft.

Hi-tech location: The facility is located in Poland’s second largest city, Krakow, which has emerged as “Eastern Europe's Silicon Valley.” The city supports a strong cluster of technology businesses and is home to offices and R&D centres of Google, IBM, GE and Hitachi. Neighbouring buildings to the facility include Motorola, Ericpol, the Jagiellonian University Library, Małopolska Information Technology Park and the Krakow LifeScience Technology Park and Bioincubator.

Lease term: 10-year, triple-net lease.

Credit-rated parent: Nokia has an equity market capitalization of €20 billion ($27 billion), is listed on the NYSE (Ticker: NOK) and is rated “BB / Positive Outlook” by S&P and Moody’s.

Jeffrey Lefleur, Managing Director of W. P. Carey, commented: “Nokia remains one of the world’s leading telecom infrastructure providers. The acquired facility is an important asset to Nokia Solutions and Networks Polish operations. This transaction highlights W. P. Carey’s ability to structure deals worldwide, providing long-term financing for leading global businesses.”

Mr. Lefleur added: “Poland is the second largest economy in Central Eastern Europe with projected GDP growth and a healthy and liquid banking industry. These metrics, along with the strength of the Nokia tenancy and positive outlook for the Krakow office market, enhanced the attraction of this acquisition as a solid addition to CPA®:17 – Global’s portfolio.”

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