POZNAN, POLAND-W. P. Carey Inc., through CPA: 17 – Global, one of its publicly held non-traded REIT affiliates, has acquired a logistics center of H&M Hennes & Mauritz AB in Poznan, Poland from a fund managed by Invesco Real Estate.
The total acquisition cost for the 896,911 sq ft (83,325 sq m) facility was approximately $85 million (€64 M).
“The acquisition marks our fourth European transaction this year overall, bringing total year-to-date investment in Europe to approximately $217 million (€166 M),” said Jeffrey Lefleur, managing director of W. P. Carey. “We were attracted to the long-term income provided by the lease, the strong guarantee of H&M and the high quality of the property.”
The center is subject to a long-term, triple-net lease that is fully guaranteed by H&M. Located in Poznan, the second-largest logistics market in Poland outside of Warsaw, the modern center is critical to the supply chain of H&M in Europe. It is the company’s European distribution center for Eastern Europe, as well as its primary e-commerce and online-retail logistics hub for all of Europe.
H&M is the world’s second-largest clothing retailer, with approximately $18.2 billion (€14 billion) in annual revenue. It operates in 48 countries, employing approximately 94,000.
“We are pleased with the sale of the H&M Distribution Center,” commented Tomas Picha, director of transactions in CEE from Invesco Real Estate. “Our closing of this transaction confirms the high level of institutional interest in Polish assets with long term leases to strong tenants.”
Invesco Real Estate was represented by Colliers International in the transaction, who was retained to market the property for sale. Property agent Victorios acted on behalf of CPA:17 – Global.
Celebrating its 40th anniversary, W. P. Carey Inc. is a publicly traded REIT that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling approximately $15.2 billion. Active in Europe since 1998, European assets comprise approximately $3.6 billion (€2.7 billion) of its global portfolio. The largest owner/manager of net lease assets, WPC’s corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types.