W. P. Carey Inc. Acquires $42.9 Million Portfolio of MAN Group Truck & Bus Servicing Facilities

Critical net leased properties with CPI-based rent escalation and 15-year term

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Sep 09, 2015, 07:30 ET

NEW YORK, Sept. 9, 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 acquired a portfolio of three modern truck and bus servicing facilities for approximately $42.9 million (€38.9 million). The facilities — two in Germany and one in Austria — were purchased from the developer, Wohnungsunternehmen Semmelhaack, and are net leased to wholly-owned subsidiaries of MAN SE (The MAN Group).

Key Facts

W. P. Carey Inc. announces that it has acquired a portfolio of three truck and bus servicing facilities for approximately $42.9 million. The facilities, two in Germany and one in Austria, were purchased from the developer and are net leased to wholly-owned subsidiaries of MAN SE for a period of 15 years.

Well-established, industry-leading tenant: The MAN Group is one of Europe's leading producers of commercial vehicles, engines and mechanical engineering equipment. It is a publicly traded company with a market capitalization of approximately $15 billion and is 75% owned by German automotive group Volkswagen AG.
Critical, well-located facilities: The three facilities, originally built to tenant specifications, are among the largest service stations operated by the MAN Group and serve as an important sales driver for its 24/7 fleet repair and maintenance servicing operations. Located on arterial routes, the facilities benefit from the high commercial traffic flow that connects several major German and Austrian cities and links Europe's eastern and western markets.
Long-term net leases with built-in rent growth: All three facilities are net leased, with a remaining term of approximately 15 years and CPI-based rent escalations.

Management Commentary

Arvi Luoma, Executive Director of W. P. Carey, commented: "We are delighted to announce our latest transaction in continental Europe, further demonstrating W. P. Carey's strength in the region and our ability to source, structure and efficiently execute on a range of asset types. The Austrian component of the transaction is of particular note as it follows our first acquisition in the Austrian property market earlier this year. Furthermore, the combination of a high-quality, creditworthy tenant, the length of the net-leases — which include inflation-based rent escalations — and the criticality of the assets are all consistent with our key investment criteria. It also furthers our diversification strategy."

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. Luoma 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.

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.