NEW YORK, Nov. 3, 2020 /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 a $102 million (€87 million) sale-leaseback of a
27-property supermarket portfolio located in Northern Spain and the Balearic Islands,
bringing total investment volume for the year-to-date period to
approximately $700 million. The
portfolio comprises a total of 481,000 square feet (45,000 square
meters) and is triple-net leased under three 20-year master leases
to Eroski Sociedad Cooperativa ("Eroski"), one of the largest food
retailers in Spain.
Key Facts:
- Market-leading grocery chain: Established in 1969,
Eroski ranks among Spain's largest
supermarket chains, operating over 1,600 retail stores. Eroski is
committed to creating a seamless omnichannel experience by
investing in new technologies and digitalization having launched an
online supermarket and mobile app for online grocery ordering.
- Established locations with high barriers to entry: The
portfolio is predominantly located in dense residential
neighborhoods with limited local competition across Northern Spain and the Balearic Islands where
Eroski holds the dominant share of the food retail market. Strict
planning laws and licensing requirements create significant
barriers for new entrants, thereby increasing the inherent value of
the proven sites.
- Expanding industry: The Spanish food retail market has
demonstrated consistent growth driven by rising shopper spending on
consumer staples, with demand remaining largely unaffected by
COVID-19. All facilities in the portfolio have seen steady sales
growth over the past four years.
- Commitment to sustainability: Eroski remains committed
to reducing its impact on the environment through several
initiatives including implementing eco-design packaging, mandating
sustainable fishing practices, minimizing the environmental impact
of its logistics and transportation operations and robust waste
management.
- Long-term leases with built-rent growth: The assets are
triple-net leased under three 20-year master leases with Spanish
CPI-based rent escalations.
Christopher Mertlitz, Executive Director, Investments, W. P.
Carey said: "Due to our longstanding commitment to
building strong tenant partnerships, we were able to secure this
off-market transaction with an existing tenant to acquire a
portfolio of high-quality supermarket assets. Our experience
structuring and closing transactions in the Spanish market was
critical in achieving a timely close. We look forward to continuing
to grow our real estate footprint in Spain and to building on our partnership with
Eroski."
W. P. Carey Inc.
W. P. Carey ranks among the largest net lease REITs with an
enterprise value of approximately $18
billion and a diversified portfolio of operationally
critical commercial real estate that includes 1,215 net lease
properties covering approximately 142 million square feet as of
September 30, 2020. 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.
This press release may contain forward-looking statements
within the meaning of U.S. Federal securities laws. 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.
Institutional Investors:
Peter
Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com
Press Contact:
Guy
Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/w-p-carey-announces-102-million-87-million-investment-in-supermarket-portfolio-301165346.html
SOURCE W. P. Carey Inc.