NEW YORK, May 17, 2021 /PRNewswire/ -- W. P.
Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in
corporate sale-leasebacks, build-to-suits and the acquisition of
single-tenant net lease properties, today announced four
investments totaling $170 million and
covering approximately 1.1 million square feet. The investments
comprise operationally-critical properties net leased to
industry-leading tenants with a weighted-average lease term of
approximately 16 years, bringing investment volume year-to-date to
approximately $765 million with a
weighted-average lease term of 22 years.
The investments include:
- $65 million sale-leaseback
of a 316,300-square-foot state-of-the-art food production facility
net leased to a leading supplier of shelf-stable, dairy-based food
and beverage products. Established in 1943, the company supplies a
diverse range of blue chip and private label customers, including
some of the largest food and beverage brands globally. Located in
the Midwest, the mission-critical facility is one of the most
technologically advanced facilities in the food and beverage
industry. The company has made substantial investments into the
building, more than tripling its capacity within the ready-to-drink
beverage market, resulting in consistent revenue growth in recent
years supported by a loyal customer base, consistent customer
expansion and new product launches. The facility is triple-net
leased for a period of 25 years with fixed annual rent
escalations.
- $52 million acquisition of
a 203,800-square-foot flex R&D and manufacturing facility net
leased to Velodyne Lidar, a leading provider of sensor technologies
that use light to measure ranges for autonomous vehicles, driver
assistance, delivery solutions, robotics and navigation. The
high-quality, fungible asset features heavy power hook-ups critical
for advanced manufacturing and is located in proximity to both
highway 101 and highway 85 in the South San Jose industrial
submarket – a strong flex market with limited facilities of this
size, layout and equipped with advanced manufacturing capabilities.
The mission-critical asset features a large manufacturing floor and
houses substantially all of the company's R&D, quality control
and engineering functions, as well as serving as its headquarters.
It is triple-net leased with fixed annual rent increases and a
remaining term of 6.7 years.
- $27 million off-market
acquisition of a 567,000-square-foot Class-A light
manufacturing facility net leased to a U.S. wholly-owned subsidiary
of Knowlton Development Corporation, Inc. (KDC), a global provider
specializing in custom formulation, package design and
manufacturing solutions for beauty, personal care and home-care
brands. The facility is a fungible, cross-docked industrial
building with 30-foot clear heights, located in the largest
industrial submarket of Columbus,
Ohio with proximity to US-33 and I-270, in addition to the
Rickenbacker International Airport. It is triple-net leased for a
period of 15 years with fixed annual rent escalations.
- $26 million acquisition of
a student housing asset comprising 94 units across 49,500 net
rentable square feet, net leased to Monroe
College, a national leader in educating urban and
international students, founded in 1933. Completed in 2018, the
Residence Hall serves as one of Monroe's principal student housing dormitories
for its New Rochelle, New York
campus, which currently enrolls over 2,000 students. Located in
close proximity to the New
Rochelle transit station, which provides commuter service to
New York City via the Metro-North
railroad, and surrounded by walkable dining, entertainment and
fitness facilities, the property is net leased for a remaining term
of 12.25 years with inflation-based rent increases.
Joseph Mastrocola, Executive
Director, Investments, W. P. Carey said: "As one of the most
established players in the net lease space, with nearly 50 years of
experience investing in a diverse mix of assets, W. P. Carey
continues to serve as a reliable buyer who can quickly and
efficiently execute on transactions in accordance with the unique
needs of each seller. We are pleased to add these high-quality,
mission-critical assets to our portfolio, and we look forward to
working with our newest tenants throughout the duration of their
leases."
Andrés Dallal, Executive Director, Investments, W. P. Carey
said: "The food and beverage industry continues to demonstrate
remarkable resilience and consistent growth. We are increasingly
seeing companies within this industry use sale-leasebacks as a
capital allocation tool to unlock the value of their real estate
and redeploy those proceeds into growth initiatives, M&A and
other corporate objectives. We are thrilled to expand our footprint
in the food and beverage space with another state-of-the-art
facility that will provide vital production capacity in a rapidly
growing market."
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an
enterprise value of approximately $19
billion and a diversified portfolio of
operationally-critical commercial real estate that includes 1,261
net lease properties covering approximately 146 million square feet
as of March 31, 2021. For nearly five decades, the company has
invested in high-quality single-tenant industrial, warehouse,
office, retail and self-storage properties subject to long-term net
leases with built-in rent escalators. Its portfolio is located
primarily in the U.S. and Northern and Western Europe and is well-diversified by
tenant, property type, geographic location and tenant
industry.
www.wpcarey.com
This press release contains forward-looking statements within
the meaning of U.S. Federal securities laws. The comments of
Mr. Mastrocola and Mr. Dallal 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, including the continuing impact of the
COVID-19 pandemic; the supply of and demand for commercial
properties; interest rate levels; 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:
Press Contact:
Anna
McGrath
+1 212-492-1166
amcgrath@wpcarey.com
Institutional Investors:
Peter
Sands
+1 212-492-1110
institutionalir@wpcarey.com
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SOURCE W. P. Carey Inc.