W. P. Carey Announces $119 Million (€102 Million) Investment in Hypermarket Portfolio in France

Rhea-AI Summary

W. P. Carey Inc. (NYSE: WPC) has announced a $119 million (€102 million) sale-leaseback of three hypermarket properties in Southern and Central France. The portfolio includes 424,800 square feet and is leased to Distribution Casino France, part of Casino Guichard-Perrachon, a major global food retailer with a robust presence in France. These properties are among Casino's top hypermarkets, situated in urban areas with expected population growth. The lease includes French CPI-based rent escalations, enhancing the investment's long-term value.

Positive

• Acquisition of three high-quality hypermarket properties worth $119 million.
• Lease agreement includes French CPI-based rent escalations, providing potential for future income growth.
• Strategic locations with limited local competition, enhancing long-term demand.
• Partnership with Casino, a market leader in the grocery sector, ensuring stable tenant performance.

Negative

• None.

NEW YORK, April 8, 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 a $119 million (€102 million) sale-leaseback of three hypermarket properties located in Southern and Central France. The portfolio comprises a total of 424,800 square feet (39,500 square meters) and is triple-net leased to Distribution Casino France, a wholly owned subsidiary of Casino Guichard-Perrachon ("Casino"), one of the largest food retailers in the world.

Key Facts:

• Market-leading essential retailer: Established in 1898, Casino is one of the world's largest food retailers with approximately 11,000 stores in France and Latin America. Casino maintains a multi-format strategy, operating discount, convenience, cash and carry, supermarket and hypermarket retail stores under various brands. It is also the second largest e-commerce retailer in France.

• Established locations with limited local competition: The acquired hypermarkets are located in Southern and Central France, predominantly in dense urban infill areas forecast to experience above-average population growth, and where Casino is the market leader with limited competition.

• High-performing properties in a resilient industry: The properties are established grocery sites that rank among Casino's top hypermarkets. As an essential retailer, the grocery sector has maintained strong demand during the pandemic.

• Commitment to sustainability: The only retailer included in The Wall Street Journal's "World's Top 100 Most Sustainably Managed Companies" list, Casino is a leader in the transition to renewable energy and has committed to significantly reducing greenhouse gas emissions and electricity use by 2025.

• Long-term lease with built-in rent growth: The assets are triple-net leased with French CPI-based rent escalations and secured by a parent guarantee.

Christopher Mertlitz, Head of European Investments, W. P. Carey, said: "We are thrilled to continue our positive momentum in Europe with the completion of another off-market grocery retail sale-leaseback, an asset class which has proven its resilience during the COVID-19 pandemic. Sale-leasebacks enable companies to easily unlock the full value of their real estate and redeploy into their core businesses. We welcome the addition of these high-quality essential retail assets to our growing portfolio, and we look forward to building on our partnership with our newest tenant."

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 1,243 net lease properties covering approximately 144 million square feet as of December 31, 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 comments 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, 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 Contacts:
Guy Lawrence
Ross & Lawrence
+1 212-308-3333
gblawrence@rosslawpr.com 

Anna McGrath
W. P. Carey Inc.
+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.

FAQ

What is W. P. Carey's recent investment in France?

W. P. Carey has made a $119 million investment in a portfolio of three hypermarket properties in Southern and Central France.

Who is the tenant for W. P. Carey's new properties in France?

The properties are triple-net leased to Distribution Casino France, a subsidiary of Casino Guichard-Perrachon.

How large is the property portfolio acquired by W. P. Carey?

The acquired portfolio measures 424,800 square feet (39,500 square meters).

What are the expected benefits of the lease structure for W. P. Carey?

The lease includes French CPI-based rent escalations, which can enhance long-term income potential.

What is the significance of the locations of the acquired hypermarkets?

The hypermarkets are in urban areas forecasted for above-average population growth and have limited local competition.