W. P. Carey Completes Acquisition of Scottish Trade Counter Portfolio on Behalf of CPA:18 -- Global
NEW YORK, Aug. 21, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that CPA®:18 – Global, one of its managed non-traded REITs, has acquired a portfolio of 14 trade counter and industrial assets. Trade counter assets are typically high volume showrooms or light retail businesses that require an element of retail space and use the balance of space for warehousing inventory and/or office purposes.
The assets, located in six trade parks throughout Scotland, were acquired from Cording Real Estate Group, a real estate owner and manager, for a purchase price of $17.8 million (£10.6 million), excluding acquisition costs.
- Strong dynamics for trade counter assets: Modern trade counter assets are in high demand in the UK. Trade counter tenants, which typically include building merchants, trade suppliers, tool rental companies, car accessory suppliers and quasi-retail occupiers, prefer to be in established trade parks, where they can develop a local customer base.
- Quality properties in established trade counter locations: The portfolio is 90% occupied, leased to 24 tenants on a triple-net basis, with a weighted average lease term of 8.2 years. It is comprised of best in class, modern trade counter facilities situated in established trade parks.
- Diversified geographic and tenant mix: The portfolio is spread among six different regional locations with a tenant mix consisting of well-known Scottish companies, including: Jewsons, South Ayrshire Council, City Electrical Factors, Howdens and Saint Gobain.
- Established asset manager: CedarWood Asset Management Ltd, an investment and asset management company that specializes in investing in the UK industrial market, will be the manager of the portfolio.
Greg Butchart, Managing Director of W. P. Carey, commented:
"This transaction provides us with a strong, well-diversified portfolio of quality triple-net leased assets and is consistent with our strategy of investing in long-term income-generating properties. CedarWood will provide experienced hands-on management in order to maximize value of the assets for CPA®:18 – Global's investors."
Paul Jenkins, Director at CedarWood Asset Management, commented:
"Given their European investing experience, capital resources and long-term investment strategy, we are pleased to be joining with W. P. Carey for the management of the Scottish trade counter portfolio and look forward to developing a long-term relationship with them."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Butchart are examples of forward looking statements. A number of factors could cause CPA®:18 – Global'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 office and industrial 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, risks related to CPA®:18 – Global's offering of shares. For further information on factors that could impact CPA®:18 – Global, reference is made to its filings with the Securities and Exchange Commission.
W. P. Carey Inc.
Ross & Lawrence
SOURCE W. P. Carey Inc.