W. P. Carey Announces $44 Million Industrial Property Investment

Rhea-AI Summary

W. P. Carey Inc. (NYSE: WPC) announced a $44 million sale-leaseback of two food manufacturing facilities in the Midwest, totaling over 350,000 square feet. The long-term lease, spanning 25 years, is with a leading food manufacturer and includes built-in rent escalations. The company, operational for over 40 years, serves over 130 customers, including major U.S. grocers, and has a diversified product line. This transaction highlights W. P. Carey's role as a reliable partner in providing capital solutions amidst challenging economic conditions.

Positive

• Completed a $44 million sale-leaseback of two food manufacturing facilities.
• Long-term 25-year lease with fixed annual rent escalations.
• Tenant is a leading food manufacturer with a strong customer base.

Negative

• None.

NEW YORK, Sept. 28, 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 $44 million sale-leaseback of two state-of-the-art food manufacturing facilities located in the Midwest totaling in excess of 350,000 square feet. The facilities are master leased on a triple-net basis for a period of 25 years to a leading food manufacturer.

Key Facts:

• Industry-leading food manufacturer: Operating for over 40 years, the tenant is an established U.S. food manufacturer, providing both contract manufacturing and private label solutions. Serving over 130 customers, including many of the top 25 U.S. grocers, the company produces some of the most iconic and recognizable food brands in the country.
• Diversified, growing income streams: The tenant's product lines include a wide variety of product offerings, which have shown consistent growth through numerous cycles.
• Mission-critical properties: The facilities comprise the tenant's entire manufacturing footprint. Underscoring their criticality, the tenant has consistently invested in the properties to improve its operations and support growing demand for its products. Most recently, this included the completion of a more than $40 million expansion at one of the facilities adding over 100,000 square feet and related equipment.
• Long-term net lease with built-in rent growth: The assets are master leased on a triple-net basis for 25 years with fixed annual rent escalations.

Andrés Dallal, Executive Director of Investments, W. P. Carey said: "In today's challenging economic environment, sale-leasebacks provide growing companies with a highly efficient capital solution. By selling these properties to W. P. Carey, our newest tenant was able to secure additional capital for reinvestment into its core business. Our experience and ample liquidity enabled us to structure a deal that met the needs of all parties. We look forward to building on this relationship and continuing our partnership over the long-term."

Andrew Sandquist, Vice Chairman, Newmark Knight Frank said: "W. P. Carey has consistently been a reliable partner for us, so when this sale-leaseback opportunity emerged with a high-quality tenant, we immediately knew they would be the ideal investor. They had the capital and experience needed to get this deal done quickly and efficiently while meeting the needs of my client."

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 1,216 net lease properties covering approximately 142 million square feet as of June 30, 2020. For over four 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 contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments of 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; 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

 

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SOURCE W. P. Carey Inc.

FAQ

What is the value of the recent transaction by W. P. Carey?

W. P. Carey announced a $44 million sale-leaseback transaction.

How long is the lease for the properties sold by W. P. Carey?

The lease is for a period of 25 years.

What type of properties did W. P. Carey acquire?

W. P. Carey acquired two state-of-the-art food manufacturing facilities.

What is the significance of the tenant in the recent deal?

The tenant is an established U.S. food manufacturer serving over 130 customers.

What kind of lease agreement is associated with the properties?

The properties are master leased on a triple-net basis.