W. P. Carey Announces $195 Million (£141 Million) Investment in Class-A Logistics Facility

Rhea-AI Summary

W. P. Carey Inc. (NYSE: WPC) announced the acquisition of a Class-A logistics facility in Solihull, U.K. for $195 million. The 1.1 million-square-foot facility is leased for 30 years to Jaguar Land Rover. The property includes high-quality features such as a BREEAM 'Very Good' environmental rating and is strategically located near major transport hubs. This investment enhances W. P. Carey's portfolio, supporting their growth strategy in the logistics sector, particularly amid increasing demand driven by e-commerce.

Positive

• Acquisition of a 1.1 million-square-foot logistics facility for $195 million enhances portfolio.
• 30-year lease to Jaguar Land Rover provides long-term revenue stability with inflation-based rent escalations.
• Facility located in a prime logistics area, improving operational efficiency and access to labor.

Negative

• None.

NEW YORK, May 6, 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 acquisition of an approximately 1.1 million-square-foot (100,000-square-meter) Class-A logistics facility for $195 million (£141 million), including transaction fees. Located in Solihull, U.K., the facility is leased for a term of 30 years to Jaguar Land Rover Limited.

Key Facts:

• Leading luxury car manufacturer: Jaguar Land Rover is the U.K.'s largest premium automotive manufacturer, built around two iconic British car brands. Land Rover is the world's leading manufacturer of premium all-wheel-drive vehicles. Jaguar is one of the world's premier luxury marques, as well as being the first brand to offer a premium all-electric performance SUV, the Jaguar I-PACE.
  
  
• High-quality, mission-critical facility: The brand-new structure is a Class-A, cross-docked logistics facility with a BREEAM "Very Good" environmental rating and up to 50-foot (15-meter) clear heights, enabling Jaguar Land Rover to improve its operations and production resilience. The facility is located adjacent to Jaguar Land Rover's largest U.K. manufacturing plant and is integral to the supply of auto parts to the plant. Jaguar Land Rover is also making significant investments into automation and fit-out of the facility.
  
  
• Prime logistics location: Developed by Prologis, the facility is located at the center of the U.K.'s transport network in the "Golden Triangle" of logistics, in proximity to the arterial M42 motorway, Birmingham Airport and Birmingham International Railway Station, as well as major urban centers, which provide access to a deep labor pool.
  
  
• Commitment to sustainability: In addition to the facility's BREEAM environmental rating, it operates at the highest level of energy efficiency with an EPC "A" energy rating. Jaguar Land Rover has announced plans to produce electric versions of all vehicle models by 2030, with Jaguar specifically becoming electric-only by 2025. Jaguar Land Rover has also been certified as carbon neutral by the Carbon Trust for U.K. manufacturing and product development. The company will become a net zero carbon business across its supply chain, products and operations by 2039.
  
  
• Long-term lease with built-in rent growth: The facility is leased for a term of 30 years with inflation-based rent escalations.

Gino Sabatini, Head of Investments, W. P. Carey said: "We are thrilled to build on our year-to-date acquisition momentum and add another high-quality logistics asset to our portfolio. Since opening our London office in 1998 and completing our first investment in the U.K. in 1999, we have continued to grow our market expertise and reputation as a reliable partner for companies and developers alike."

Karolis Adlis, Senior Vice President, Investments, W. P. Carey said: "Driven by the rapid growth in e-commerce and fulfillment needs, demand for U.K. logistics assets continues to exceed supply. As such, we are thrilled to announce our acquisition of this bespoke, Class-A facility built to high environmental and operational standards on an attractive basis. The facility is located in the center of the U.K.'s transport network with 80% of the U.K. population reachable within a four-hour drive."

Alan Sarjant, Senior Vice President, Capital Deployment & Leasing, Prologis U.K. said: "Working with our customers to find the best outcome for their current and future business ambitions is an important part of what we do and today's announcement marks the culmination of a customer-led development project designed to deliver long-term benefits for Jaguar Land Rover."

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. Adlis 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
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 the recent acquisition by WPC?

W. P. Carey has acquired a Class-A logistics facility in Solihull, U.K. for $195 million.

Who is the tenant for WPC's new logistics facility?

The facility is leased to Jaguar Land Rover for a term of 30 years.

How does the new acquisition affect WPC's portfolio?

This acquisition enhances W. P. Carey's portfolio by adding a high-quality logistics asset.

What are the sustainability features of the new facility?

The facility has a BREEAM 'Very Good' rating and operates with an EPC 'A' energy rating.

When was WPC's acquisition announced?

The acquisition was announced on May 6, 2021.