W. P. Carey Inc, a leading net lease REIT specialising in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, announced three investments totalling approximately €113 million. The investments comprise industrial facilities in the U.S., Mexico and the Netherlands and a build-to-suit commitment for an industrial R&D facility in Germany. The properties are triple-net leased to industry-leading tenants with a weighted-average lease term of approximately 22 years.
The transactions include:
• €48 million ($53 million) sale-leaseback of three industrial facilities totalling 91,000 sqm, net leased to one of the world’s largest producers of high-performance hand and power tools. Two of the facilities are located in the U.S. and one in Mexico, all of which are critical to the company’s global operating footprint. The properties are leased on a triple-net basis in USD under master leases by country for a period of 25 years, with fixed annual rent escalations.
• €15 million ($16 million) sale-leaseback of a light industrial facility in the Netherlands totalling approximately 19,000 sqm, net leased to Europe’s leading provider of self-service coffee and vending solutions. The recently renovated facility, which is located in a prominent business park in the greater Rotterdam area, is the company’s sole roasting plant and a critical distribution centre for its global client base. The facility is triple-net leased for a term of 20 years with annual Dutch CPI-based rent escalations.
• €50 million ($55 million) build-to-suit commitment for a new industrial R&D facility in Germany totalling approximately 15,600 sqm. Upon completion, which is expected in early 2021, the facility will be net leased to a global tier one supplier of automotive components and systems including electric drive technologies. The facility will be strategically located in a prime industrial park near Frankfurt and triple-net leased for a period of no less than 20 years with annual German CPI-based rent escalations.
Gino Sabatini, Head of Investments, W. P. Carey, said: “Today’s announcement is a great example of how our geographic diversity and recognized expertise in North America and Europe provide us with a range of opportunities to acquire high-quality, operationally-critical real estate leased to creditworthy tenants. We’re confident that our diversified investment approach and established reputation will continue to enable us to source attractive opportunities that meet our investment criteria.”
Arvi Luoma, Head of European Investments, W. P. Carey, commenting on the European transactions, said: “We’re excited to add two new high-quality assets to our growing European portfolio, in two of our largest investment markets, Germany and the Netherlands. Given our more than 20 years of experience investing in Europe, we are uniquely positioned to combine our local market expertise with our international insights to structure win-win transactions that meet the needs of all parties. We look forward to growing our relationships with our newest tenants and to supporting their future growth objectives.”
