W. P. Carey, a leading net lease REIT specialising in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, announced the acquisition of seven DIY retail stores in Poland completed in December 2021 and totalling approximately 70,000 sqm. The stores are triple-net leased to OBI for a term of 15 years with Eurozone CPI-based rent increases.
W.P. Carey acquired the assets from the Austrian Supernova Group, a leading private real estate company focused on high-quality retail properties in Central and Eastern Europe.
Key Facts:
Leading German DIY retailer: Founded in Germany in 1970, OBI has grown to become Europe’s third-largest DIY retailer and seventh-largest globally. OBI has steadily grown its retail store footprint since first entering the Polish market in 1997, and today, operates 59 stores across the country, ranking Poland as its third-largest market, behind Germany and Austria.
Attractive retail locations with high barriers to entry: Located throughout Poland, the facilities are situated in strong catchment areas near or adjacent to large food retail stores, shopping centres, retail parks, petrol stations and along key transportation routes.
Existing W. P. Carey tenant: OBI has been a tenant of W. P. Carey since 2006, and following this acquisition, W. P. Carey will own 25 OBI retail stores across Poland.
Essential retail in a resilient industry: DIY retail has shown strong resilience to e-commerce given the need for immediate availability, high shipping cost to weight ratios and a general desire among consumers for in-person product advice or to try products before purchase.
Christopher Mertlitz, Head of European Investments, W. P. Carey, said: “We are excited to build on our existing relationship with OBI and add seven high-quality DIY retail assets to our portfolio. DIY retail continues to remain attractive as an asset class due to its resiliency and the fact that it has remained largely insulated from e-commerce disruption. Within retail, our investment activity is generally focused on essential retail assets in Europe, where we see more compelling opportunities given higher barriers to entry and lower retail square footage per capita relative to the US, coupled with more favourable supply fundamentals and pricing dynamics. We look forward to continuing our relationship with OBI and supporting the business’s evolving needs.”
Frank Albert, Supernova Group, said: “We typically follow a long-term buy-and-hold strategy with assets linked to our long-term partner OBI. However, given the presence of the established investor W. P. Carey in the Polish market and its track record and experience, we saw an opportunity to further our partnership with W. P. Carey and decided to step out of this high-quality retail portfolio.”
