NEW YORK, April 20, 2015 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), 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 it has acquired a retail hypermarket and garden center in Bad Fischau, Austria for $25.2 million (€23.4 million). The property was acquired from UK developer Richardson Capital and is net leased to the Austrian subsidiary of German Do-It-Yourself (DIY) retailer, Hornbach Baumarkt AG (XETRA: HBH3).
- Well-established, growing tenant: Hornbach Baumarkt AG (Hornbach) is Europe's fifth-largest DIY retailer, operating 143 stores and garden centers across nine countries. A publicly traded company with an equity market capitalization of approximately $1.1 billion (€1.04 billion), Hornbach has an excellent track record of growth and profitability.
- Well-located, important facility: Located roughly 30 miles south of Vienna in the suburban town of Bad Fischau, the facility sits on the A2 Autobahn, the major highway that runs south from Vienna to the boarder of Italy. Hornbach recently renewed its lease for the full term, underscoring the long-term importance of the facility to its Austrian business.
- Long-term net lease with built-in rent growth: The facility will be net leased for a 15-year term with annual CPI-based rent escalations.
Jeffrey Lefleur, Managing Director of W. P. Carey, said: "We are pleased to announce our first transaction in the Austrian property market, further demonstrating W. P. Carey's ability to evaluate and enter new markets. With Hornbach as a quality tenant, the length of the net lease and the annual inflation escalation, the investment is consistent with our investment criteria and furthers our diversification strategy."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws in the United States. The statements of Mr. Lefleur 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:
+ 1 212-308-3333
+ 1 212-492-8995
SOURCE W. P. Carey Inc.