NEW YORK, Nov. 2, 2020 /PRNewswire/ -- W. P. Carey
Inc. (NYSE:WPC), a leading net lease REIT specializing in corporate
sale-leasebacks, build-to-suits and the acquisition of
single-tenant net lease properties, today announced the completion
of two investments in October 2020
totaling approximately $85 million
and over 1.2 million square feet, bringing total year-to-date
investment volume to approximately $600
million. The investments comprise four
operationally-critical industrial properties triple-net leased to
industry-leading tenants with a weighted average lease term of 20
years.
The investments include:
- $51 million sale-leaseback
of three manufacturing facilities and adjacent laydown-yards
comprising 994,000 square feet, net leased to a leading
full-service carpenter contractors, material supplier and housing
component manufacturer in the U.S. The tenant has been in operation
for nearly 65 years and has continued to demonstrate strong
performance from its diverse product offerings and long-standing
customer relationships, including most of the top national
builders. The facilities represent the tenant's entire
manufacturing operations and are strategically located in markets
with strong underlying housing growth dynamics and rail access in
Florida, Illinois and North
Carolina. The assets are triple-net leased under a 20-year
master lease with fixed annual rent escalations.
- $34 million sale-leaseback
of a 208,000-square-foot refrigerated food processing and
distribution facility, net leased to the leading distributor of
specialty produce in the Midwest. Since acquiring the facility in
2018, the tenant has invested approximately $20 million into the asset which serves as the
company's sole location. The facility contains 60 percent cooler
and three percent freezer space and is designed with five different
climate zones to accommodate various temperature requirements for
produce. As demand for online grocery continues to rise,
refrigerated facilities such as these with access to key
transportation routes and proximity to end consumers continue to be
positioned to perform well. The facility is located near the
Minneapolis-St. Paul metropolitan
area in Minnesota and is
triple-net leased for a term of 20 years with fixed annual rent
escalations.
Zachary Pasanen, Executive
Director, Investments, W. P. Carey said: "As companies
continue to seek alternative sources of capital to support their
strategic growth plans now and beyond COVID-19, sale-leasebacks
remain a cost-effective, long-term solution for those that own
their corporate real estate. In our latest investments, we were
able to execute on a tight timeframe and provide certainty of close
to meet the needs of both companies due to a combination of our
longstanding presence in the sale-leaseback market, local market
expertise and ample liquidity. We are delighted to welcome our
newest tenants to our growing portfolio and look forward to
deepening our partnership with them."
W. P. Carey Inc.
W. P. Carey ranks among the largest
net lease REITs with an enterprise value of approximately
$18 billion and a diversified
portfolio of operationally-critical commercial real estate that
includes 1,215 net lease properties covering approximately 142
million square feet as of September 30, 2020. For nearly five
decades, the company has invested in high-quality single-tenant
industrial, warehouse, office, retail and self-storage properties
subject to long-term net leases with built-in rent escalators. Its
portfolio is located primarily in the U.S. and Northern and
Western Europe and is
well-diversified by tenant, property type, geographic location and
tenant industry.
This press release may contain forward-looking statements
within the meaning of U.S. Federal securities laws. A number of
factors could cause W. P. Carey's actual results, performance or
achievement to differ materially from those anticipated. Among
those risks, trends and uncertainties are the general economic
climate, including the continuing impact of the COVID-19 pandemic;
the supply of and demand for commercial properties; interest rate
levels; and other risks associated with the acquisition and
ownership of properties, including risks that the tenants will not
pay rent, or that costs may be greater than anticipated. For
further information on factors that could impact W. P. Carey,
reference is made to its filings with the U.S. Securities and
Exchange Commission.
Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com
Press Contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/w-p-carey-announces-industrial-investments-totaling-85-million-301164391.html
SOURCE W. P. Carey Inc.