NEW YORK, Jan. 11, 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 the completion
of four industrial investments in December
2020 totaling approximately $121
million and covering more than 1.5 million square feet.
Jason Fox, Chief Executive
Officer, W. P. Carey,
said: "In line with our expectations, we ended
the year with a flurry of deal closings in the final
weeks of the fourth quarter. This brought total investment volume
for 2020 to approximately $826
million, despite the significant slowdown in transaction
activity that followed the first wave of COVID. Corporate tenants
continue to recognize the benefits of sale-leasebacks as a means of
unlocking the value of their critical operating properties and I'm
pleased to say we've entered 2021 with continued momentum—carrying
over certain live deals from December and building an active
pipeline of new transactions."
The four announced investments are triple-net leased to
industry-leading tenants, with a weighted-average lease term of
approximately 23 years and comprise the following:
- $39 million
sale-leaseback of four manufacturing facilities totaling
488,800 square feet, located predominantly in the Midwest
and net leased to one of the largest U.S. contract
manufacturers of nonresidential precast concrete wall panels. The
company benefits from a diverse customer base, with its products
primarily used in the construction of distribution centers,
industrial facilities, mixed-use offices, retail locations and data
centers. The facilities are located in Ohio, Pennsylvania, Minnesota and Kansas, and have high operational criticality,
comprising the company's entire manufacturing footprint. They are
triple-net leased under a master lease for a 25-year term, with
CPI-based rent increases.
- $30 million
sale-leaseback of two state-of-the-art food manufacturing
facilities totaling 177,000 square feet, net leased to an
industry-leading producer and distributor of pizza crusts. The
company serves a diverse set of blue-chip customers, including
national restaurants, pizza manufacturers and foodservice
distributors. The facilities are strategically located in
Missouri and Wisconsin near key interstates in close
proximity to key customers and suppliers. The company has
consistently invested in the facilities to expand production
capabilities and accommodate substantial growth, including a recent
significant capacity expansion to its Missouri facility. The facilities are
triple-net leased under a master lease for a 25-year term, with
fixed annual rent escalations.
- $29 million
sale-leaseback of four industrial facilities totaling
449,300 square feet in Texas and
Pennsylvania, net leased to Time
Manufacturing Company, a leading global manufacturer. Founded in
1965, the company holds top market positions in the global aerial
lift, bridge inspection and truck body manufacturing industries,
and supports essential businesses, including telecommunications and
electric utilities. The facilities are master leased on a
triple-net basis for a term of 20 years with fixed annual rent
escalations.
- $23 million follow-on
investment in an off-market transaction for a
505,800-square-foot distribution facility in the western U.S., net
leased to an existing tenant of W. P. Carey. The modern facility is
equipped with extensive racking systems and automated sorting
capabilities and serves as the tenant's primary distribution center
for the western and southwestern U.S., strategically located along
a key interstate. To assist the company in meeting rising demand
for its products, W. P. Carey has also committed to an additional
investment of up to $20 million for a
427,500-square-foot expansion, which is scheduled for completion in
2022. The facility is triple net-leased with fixed increases for a
20-year term, which resets upon completion of the expansion.
Gino Sabatini, Head of Investments, W. P. Carey,
added: "Due to our history of timely execution and ability
to offer certainty of close, the fourth quarter is
typically an active period as companies look to raise capital
ahead of year end. As such, we are thrilled to have worked with new
and existing tenants to monetize their real estate and help them
redeploy the capital into their core businesses and growth
strategies. We look forward to growing our partnerships with these
tenants and working with them throughout the duration of their
leases."
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.
www.wpcarey.com
This press release may contain forward-looking statements
within the meaning of U.S. Federal securities laws. The comment of
Mr. Fox is an example 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.
Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com
Individual Investors:
W. P. Carey Inc.
212-492-8920
ir@wpcarey.com
Press Contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com
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SOURCE W. P. Carey Inc.