W. P. Carey Inc. Acquires $50.6 Million UK Office Facility
Sale-leaseback adds long-term net leased Class A asset to portfolio
NEW YORK, Sept. 15, 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 a $50.6 million (£32.5 million) sale-leaseback transaction, excluding acquisition costs, for a Class A office building in Sunderland, England. The facility will be net leased to a wholly-owned subsidiary of British energy company RWE npower, which is 100% owned by German utility company RWE AG.
Key Facts
- Established guarantor and parent companies: The lease will be guaranteed by RWE npower, one of the UK's leading energy companies. Its parent company, RWE AG, is one of Europe's leading electricity and gas providers and has investment grade ratings from both Standard & Poor's and Moody's.
- Critical, well-located office building: Four offices have been consolidated into the facility, which houses approximately one-quarter of the tenant's workforce. Located between the cities of Durham, Newcastle and Sunderland, more than 1.3 million people live within a 30-minute commute.
- High-quality facility with potential for expansion: The Class A office space was completed six years ago to meet the latest environmental standards. The tenant has obtained planning permission for a neighboring plot, allowing for potential future expansion.
- Long-term net lease with built-in rental growth: The facility is triple-net leased for a 10-year term and includes rent escalation in the fifth year based on the UK Retail Price Index with annual compounding.
Management Commentary
Christopher Mertlitz, Vice President at W. P. Carey, commented: "We are pleased to have completed this sale-leaseback transaction, marking our third acquisition in the UK over the last year. Our ability to source and structure sale-leaseback transactions and acquire existing net leased assets from developers and institutional owners in the UK affords us a wide range of attractive long-term investment opportunities. Given the creditworthiness of the tenant, parent company guarantee and the criticality of the asset to the tenant's operations, along with the long-term lease and inflation-adjusted rent escalations, we believe this acquisition is a strong addition to the W. P. Carey Inc. portfolio."
W. P. Carey Inc.
Please visit wpcarey.mediaroom.com for more information about W. P. Carey, to access our image and video libraries and to follow us on social media.
This press release contains forward-looking statements within the meaning of the 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 Securities and Exchange Commission.
W. P. Carey Inc. contacts:
Europe
Dan de Belder/Emma Kent/Kashara Taylor
+44 203-772-2500
[email protected]
U.S.
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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