W. P. Carey Inc. Announces $145 Million Agreement for Sale-Leaseback of 15-Property Vertically Integrated Industrial Portfolio

November 11, 2016

W. P. Carey Inc. Announces $145 Million Agreement for Sale-Leaseback of 15-Property Vertically Integrated Industrial Portfolio

Long-term, USD triple-net lease with annual CPI-based rent escalations


W. P. Carey Inc.

Nov 09, 2016, 07:30 ET

NEW YORK, Nov. 9, 2016 /PRNewswire/ — W. P. Carey Inc. (NYSE: WPC), a leading internally-managed net lease REIT specializing in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties worldwide, announced today that it has completed a sale-leaseback with ABC Group Inc. (“ABC”) for a portfolio of ten industrial facilities and one office facility in the U.S. and Canada, and has entered into a sale-leaseback agreement for the acquisition of four additional industrial facilities in Mexico, which is expected to be completed in 2016. The total purchase price for all 15 properties is approximately $145 million.

Key Facts

  • Industry-leading automotive supplier: ABC is a leading full-service supplier of molded thermoplastic components and systems to original equipment manufacturers for the automotive industry.
  • Critical operating properties: The sale-leaseback transaction includes approximately 2.4 million square feet of vertically integrated manufacturing facilities representing the majority of ABC’s North American footprint.
  • Private equity sponsorship: ABC is a portfolio company of Cerberus Capital Management, L.P., a private investment firm with over $30 billion under management and deep automotive sector expertise.
  • Long-term, USD net leases with built-in rent growth: The 15-property portfolio will be leased on a triple-net basis in USD under master leases by country for a period of 20 years, reflecting ABC’s focus on continued long-term success and operational excellence, and will include annual CPI-based rent escalations.

Management Commentary

Jason Fox, W. P. Carey President and Head of Global Investments, commented: “Our acquisition of these assets is part of our active approach to recycling capital and improving the quality of our portfolio. In this case, we redeployed the proceeds from the sale of an aging portfolio of properties into critical assets leased to a strong tenant on a long-term basis, thereby improving our weighted average lease term and the overall risk profile of our portfolio, which we believe has real, tangible value for our shareholders.”

Andrés Dallal, W. P. Carey Vice President, added: “The sale-leaseback transaction with ABC demonstrates W. P. Carey’s ability to partner with sponsors and tenants to execute complex, multi-country transactions tailored to our partners’ structuring requirements.”

W. P. Carey Inc.

W. P. Carey Inc. is a leading internally-managed net lease REIT that provides long-term sale-leaseback and build-to suit financing solutions for companies worldwide. At September 30, 2016, the Company had an enterprise value of approximately $11.0 billion. In addition to its owned portfolio of diversified global real estate, W. P. Carey manages a series of non-traded publicly registered investment programs with assets under management of approximately $12.2 billion. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades.

This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments of Mr. Fox and Mr. Dallal are examples of forward looking statements. 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; the supply of and demand for commercial properties; interest rate levels; the availability of financing; 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.

Press Contact:
Guy Lawrence

Company Contact:
Anna McGrath

Institutional Investors:
Peter Sands

Photo – http://photos.prnewswire.com/prnh/20161108/437266
Logo – http://photos.prnewswire.com/prnh/20130604/NY25517LOGO-b


SOURCE W. P. Carey Inc.

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Matthew C. Strife
Blue Vault Services
April 11, 2016

Blue Vault's services are without question great resources for the review of the nontraded products offered.