NEW YORK CITY-W. P. Carey Inc. said late Thursday afternoon that it would merge with its public non-traded REIT affiliate Corporate Property Associates 16—Global Inc. in a transaction valued at about $4 billion. The merger, subject to stockholders of both W. P. Carey and CPA:16—Global, is expected to close in the first quarter of 2014.
Among other advantages, W. P. Carey says the merger will further its evolution from a hybrid LLC that derived the majority of its revenue from investment management fees into a leading global net lease REIT. Along with providing liquidity to CPA:16—Global investors, the merger will “significantly increase W. P. Carey’s asset base, with a portfolio that will further enhance our already broad diversification by tenant, property type and geography,” says Trevor Bond, president and CEO of W. P. Carey. “And given that we originated and manage CPA:16—Global’s portfolio, we believe we are uniquely positioned to capitalize on its inherent opportunities.”
Post-merger, the combined company’s equity market capitalization is projected at approximately $6.5 billion, and its total enterprise value at about $10.1 billion. The combined portfolio will consist of more than 700 properties with 86 million square feet of corporate real estate leased to 231 companies around the world. W. P. Carey will continue to manage the CPA and Carey Watermark Investors series of publicly-held, non-traded REITs.
Check back on GlobeSt.com for updates on the planned merger between W. P. Carey and its non-traded REIT affiliate. Last fall, the company merged with CPA:15 as part of its conversion into a REIT.