W. P. Carey Announces $468 Million Industrial Portfolio Investment in Canada

Rhea-AI Summary

W. P. Carey (NYSE: WPC) announced the completion of a $468 million sale-leaseback of four pharmaceutical R&D and manufacturing campuses with Apotex, enhancing its portfolio and bringing its year-to-date investment volume to approximately $650 million. The sale-leaseback, structured as a triple-net master lease with fixed rent escalations over a 20-year term, aligns with Apotex's global operations in Canada. This transaction supports Apotex's majority buyout by SK Capital, showcasing W. P. Carey's strategy to partner with private equity firms for capital optimization.

Positive

• Completed a significant $468 million sale-leaseback transaction, enhancing portfolio strength.
• Year-to-date investment volume reaches approximately $650 million, indicating strong market activity.
• Establishes a long-term partnership with Apotex and SK Capital, providing stable revenue through a 20-year lease.

Negative

• None.

Brings Year-to-Date Investment Volume to Approximately $650 Million

NEW YORK, April 4, 2023 /PRNewswire/ -- W. P. Carey (W. P. Carey, 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 approximately $468 million sale-leaseback of a critical portfolio of four pharmaceutical R&D and manufacturing campuses with Apotex Pharmaceutical Holdings, Inc. (Apotex), a global pharmaceutical company and the largest generic drug manufacturer in Canada.

The portfolio represents the vast majority of Apotex's global operations, comprising 11 properties covering 2.3 million square feet spread across four campuses located in attractive industrial submarkets within the Greater Toronto Area. Structured as a triple-net master lease with rent payable in US dollars and fixed rent escalations over a 20-year term, the sale-leaseback transaction closed concurrently with private equity firm SK Capital's majority buyout of Apotex, financing a portion of the buyout.

"We're thrilled to close this sale-leaseback and welcome Apotex as a top tenant. In addition to its existing scale, we believe Apotex will continue to benefit from the deep expertise of its private equity sponsor in the pharmaceutical manufacturing sector. This investment is a great example of our ability to partner with private equity firms to leverage sale-leaseback proceeds to optimize the capital stack for new acquisitions. We look forward to growing our partnership with Apotex and SK Capital alike," said Tyler Swann, Managing Director, W. P. Carey.

The transaction, which closed on April 3, brings W. P. Carey's total year-to-date investment volume to approximately $650 million, the vast majority of which relates to industrial properties.

W. P. Carey Inc. 

Celebrating its 50th anniversary, W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $24 billion and a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,449 net lease properties covering approximately 176 million square feet and a portfolio of 84 self-storage operating properties, as of December 31, 2022. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

www.wpcarey.com 

This press release may contain forward-looking statements within the meaning of U.S. Federal securities laws. The comments of Mr. Swann 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 COVID-19; 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, please reference its filings with the U.S. Securities and Exchange Commission.

Institutional Investors:
Peter Sands
1 (212) 492-1110
institutionalir@wpcarey.com

Individual Investors:
W. P. Carey Inc.
1 (212) 492-8920
ir@wpcarey.com

Press Contact:
Anna McGrath
1 (212) 492-1166
amcgrath@wpcarey.com

 

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SOURCE W. P. Carey Inc.

FAQ

What is the significance of WPC's recent $468 million investment?

W. P. Carey's $468 million sale-leaseback investment enhances its property portfolio and establishes a long-term lease with Apotex.

How does the recent transaction affect WPC's year-to-date investment volume?

The transaction contributes to W. P. Carey's total year-to-date investment volume reaching approximately $650 million.

What type of lease agreement was established with Apotex?

W. P. Carey structured the deal as a triple-net master lease with rent escalations over a 20-year term.

Who is Apotex and why is the investment significant?

Apotex is a leading pharmaceutical manufacturer in Canada, and the investment bolsters W. P. Carey's presence in the industrial sector.

When was the sale-leaseback transaction with Apotex finalized?

The sale-leaseback transaction was finalized on April 3, 2023.