Carey Financial Closing Its Doors
June 16, 2017 | by James Sprow | Blue Vault
W. P. Carey Inc. announced today that its Board of Directors approved its plan to end all nontraded REIT fundraising to concentrate on net lease investing. The Company sees the move as eliminating the costs associated with its retail fundraising while preserving the recurring, stable income streams from its existing nontraded REIT programs until the end of their natural lifecycles.
W. P. Carey currently has four nontraded REIT programs at various stages. Carey Watermark Investors and Carey Watermark Investors 2 are nontraded REITs with hotel portfolios. Only Carey Watermark Investors 2 raised equity in Q1 2017, with $210 million in offering proceeds. Corporate Property Associates 17 – Global and Corporate Property Associates Global – 18 have diversified net-lease portfolios and are closed to new investors. Combined, the four nontraded REIT programs have over $10 billion in assets as of March 31, 2017. This makes W. P. Carey the largest sponsor in terms of assets in the nontraded REIT space.
Mark J. DeCesaris, W. P. Carey's Chief Executive Officer, said, "The Board and management team continually evaluate the Company's business strategy to maximize long-term value for our shareholders. We looked closely at the potential structures for new products such as CPA®:19 – Global, including the types of investments that would satisfy their liquidity and leverage needs, and the time and scale required for them to reach profitability. Our conclusion was that our shareholders would be better served by focusing on our core net lease investment expertise.
Learn more about W. P. Carey on Blue Vault's Sponsor Focus Page.
“Always, but especially in this day of lawsuits and ever increasing regulations, the responsibility for a financial advisor t do their own due diligence on products they sell falls squarely on themselves. No one is going to take greater interest in protecting their practice than they are. We use the Blue Vault Partners Nontraded REIT Review to keep us informed of the performance of every single nontraded REIT. Finally, complete transparency is available for advisors using nontraded REITs. Every advisor using REITs in their practice should make the small annual investment of subscribing to Blue Vault’s reporting services.”