CPA:18 - Global Acquires $52 Million Jacobsweerd Office Building in Utrecht, Netherlands

Adds high-quality asset, primarily leased to government entities, to portfolio

Aug 05, 2015, 07:30 ET from CPA:18 -- Global

NEW YORK, Aug. 5, 2015 /PRNewswire/ -- W. P. Carey Inc., a real estate investment trust (REIT) specializing in corporate sale-leaseback financing, build-to-suit construction 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 the Jacobsweerd office building in Utrecht, Netherlands, from Dutch asset and investment manager PingProperties. The acquisition cost was $52 million (€47.6 million). 

Key Facts

  • Creditworthy stable government tenants: The Jacobsweerd building is currently majority leased to four Dutch Government agencies—the Dutch Governmental Real Estate Department, the Dutch Chamber of Commerce, the Bureau for Information on Labor and Income and the Information Bureau. The leases are guaranteed by the Government of the Kingdom of the Netherlands, which is rated Aaa Stable by Moody's, AAA Stable by Fitch and AA+ Positive by S&P.
  • Well-located asset in the center of the Netherlands: The property is located in the central business district (CBD) of Utrecht, close to the largest and busiest train station in the country, as well as the city's main shopping area. The fourth largest city in the Netherlands, Utrecht is regarded as the most central and is a 28-minute train ride from Schiphol International Airport. With a vacancy rate of 7%, the CBD of Utrecht represents a strong cluster of prime offices and a solid pool of high-grade tenants, making it an important location for core assets in the Netherlands.
  • High-quality facility with strong environmental standards: The 154,900 square-foot building was constructed in 1987 and was completely renovated in 2002. Additional work was carried out in 2011 and 2014, ensuring that the building is fitted out to a high standard. The facility meets all of the latest environmental standards, with the majority of it having an energy performance rating "A" and the remainder being classified "B." The building comprises six stories and contains 203 underground parking spaces.
  • Above market remaining lease term with built-in rental growth: The average lease term remaining for the four government tenants is 7.7 years, which compares well to the standard five-year term that is customary in the Netherlands. All four tenants have CPI-indexed annual rent escalations.

Management Commentary

Jason Fox, W. P. Carey's President and Head of Global Investments, commented: "This transaction offered the opportunity for CPA®:18 – Global to secure another high-quality asset in the Netherlands. This investment reinforces our role as a capital source for European companies, developers and investors looking to recycle capital into new investments, underlining the strength of our capabilities in the European property market."

W. P. Carey Director Ralph van der Beek added: "The Jacobsweerd acquisition demonstrates how we are able to draw upon our investment experience from both the Netherlands and across Europe to deliver attractive investment opportunities. The high-quality of the asset combined with its location and strong credit tenants are representative of the characteristics we look for when we source portfolio acquisitions."

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. Fox and Mr. van der Beek 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. For further information on factors that could impact CPA®:18 – Global, reference is made to its filings with the Securities and Exchange Commission.

Company contact:
Kristina McMenamin
W. P. Carey Inc.

Press contact:
Guy Lawrence
Ross & Lawrence

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SOURCE CPA:18 -- Global