W. P. Carey Inc. Acquires $62.9 Million Stern Group Auto Dealership Portfolio
Sale-leaseback of 10 high-performing, strategically located assets with 17-year lease term
NEW YORK, Nov. 11, 2015 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties, announced today that it has entered into an approximately $62.9 million (€58.6 million) sale-leaseback transaction for a portfolio of 10 automotive retail and service sites in the Netherlands with Stern Groep N.V. (Stern Group), a Dutch listed automotive group.
Key Facts
- Well-established, market-leading tenant: Founded in 1993, Stern is the Netherlands' leading automotive retailer, offering a diverse range of 22 premium and volume car brands. In addition to new and used vehicle sales, it provides automotive financing and maintenance and repair services. Stern is a publicly traded company with annual revenues of approximately $1 billion.
- Strategic, well-performing facilities: The 10 facilities are strategically located in and around three of the Netherlands' largest cities — Amsterdam, Utrecht and Eindhoven — and are among the best performing in Stern's portfolio. Representing approximately 10% of Stern's locations, the facilities generated about one quarter of Stern's fiscal 2014 revenues.
- Long-term leases with built-in rent growth: The portfolio is triple-net leased for a 17-year period and includes full Dutch CPI annual rent escalations.
Management Commentary
Christopher A. Mertlitz, Vice President at W. P. Carey, commented: "We are pleased to expand our portfolio in the Netherlands through this acquisition, which contributes to our growing presence in Western Europe and adds a solid, long-term net leased retail asset to our holdings. This transaction is a further example of our focus on acquiring high-performing, strategically-located assets from market leading tenants to create long-term value for our portfolio."
Henk van der Kwast, CEO at Stern Group, commented: "A long-term sale-leaseback was the logical decision to free up illiquid capital tied up in our real estate holdings to fund strategic growth initiatives. W. P. Carey's ability to structure this bespoke transaction allowed us to advance strategic components of our business plan while partnering with an established investor. W. P. Carey's track record and experience, particularly in the Netherlands, was invaluable and made them the ideal partner for us."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The statements of Mr. Mertlitz 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 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. 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.
W. P. Carey Inc. Contacts:
Media Contact:
Guy Lawrence
+ 1 212-308-3333
[email protected]
Company Contact:
Brittany Rooney
+ 1 212-492-8921
[email protected]
Institutional Investors:
Peter Sands
+1 212-492-1110
[email protected]
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SOURCE W. P. Carey Inc.
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