W. P. Carey Inc. Announces €9.4 Million Build-to-Suit Financing for Industrial Facility in Zawiercie, Poland
Completed property to be triple-net leased to European manufacturer for a 20-year term
LONDON, Aug. 30, 2017 /PRNewswire/ -- W. P. Carey Inc., an internally-managed net lease REIT specializing in corporate sale-leaseback and build-to-suit financing and the acquisition of single-tenant net lease properties, has announced that it is providing €9.4 million in build-to-suit financing, including expenses and fees, for the development of a Class-A industrial facility in Zawiercie, Poland. The financing will provide 100% of the funding for the development of the 155,000-square-foot warehouse that will be leased to a European manufacturer upon completion. The 20-year, triple-net lease will include annual CPI-indexed escalations and will be guaranteed by the affiliate and primary operating company of the tenant's investment-grade parent. Completion and lease commencement is expected during the first quarter of 2018.
Key Facts
- Established developer: Since 2010, W. P. Carey has undertaken three similar development projects with this regional team, the European branch of one of the world's largest industrial developers.
- Critical facility: The facility will be purpose-built to the tenant's specifications. In addition, the land parcel has room for expansion to accommodate future business growth.
- Strategic location: Zawiercie is located in the Upper Silesia region of Poland, one of Poland's most populated regions. The site, located 16 miles from the Katowice International Airport, provides convenient access to Poland's arterial North-South motorway (Katowice to Gdansk) and East-West motorway (connecting Germany, Wroclaw and Krakow).
- Long-term, triple-net lease with built-in rent growth: The lease provides for an initial term of 20 years with annual CPI-based rent escalations.
Management Commentary
Arvi Luoma, Managing Director of W. P. Carey Inc., commented: "With the completion of this transaction, we are pleased to build on our knowledge and expertise in Central and Eastern Europe and Poland, specifically. The strategic location of the facility combined with the lease terms and guarantor made this an attractive investment for W. P. Carey Inc."
W. P. Carey Inc.
W. P. Carey Inc. is a leading internally-managed net lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions primarily for companies in the U.S. and Europe. At June 30, 2017, the Company had an enterprise value of approximately $11.2 billion. In addition to its owned portfolio of diversified global real estate, W. P. Carey manages a series of investment programs with assets under management of approximately $13.2 billion. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades.
www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Luoma are examples of forward-looking statements. A number of factors could cause W. P. Carey Inc.'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 commercial 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 Inc., reference is made to its filings with the Securities and Exchange Commission.
W. P. Carey Inc. Contacts:
Europe
Dan de Belder / Aarti Iyer
+44 203-772-2500
ddebelder@bellpottinger.com
U.S.
Media Contact:
Guy Lawrence
+ 1 212-308-3333
gblawrence@rosslawpr.com
Company Contact:
Anna McGrath
+ 1 212-492-1166
amcgrath@wpcarey.com
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