OSLO, NORWAY—W.P. Carey says that CPA:18 – Global, one of its publicly held non-traded REIT affiliates, has acquired the new headquarters of Siemens AS in Oslo, Norway from the developer of the facility, Oslo Business Park AS.
The purchase price was $90 million (NOK 544 million), and the property is on a 12-year existing lease with two 10-year renewal options.
“The acquisition of Siemen’s Norwegian headquarters is well-aligned with our strategy of acquiring high quality, critical assets with strong covenants in key commercial locations,” said Arvi Luoma, director of W.P. Carey. “As one of the largest engineering companies in the world and active in 190 countries, Siemens is a strong credit with a long-term sustainable future.”
Siemens AS is the wholly-owned Norwegian operating subsidiary of German engineering and electronics conglomerate Siemens AG, rated A+/Aa3 by S&P/Moody’s. In its fiscal year 2013, Siemens AG generated revenues of $103 billion and employed approximately 362,000 people worldwide.
Siemens AS has been headquartered at this location in Oslo for more than 40 years and completed construction on its new building in December 2013. The new 166,000 square foot headquarters facility is currently the most energy efficient office building in Norway with a LEED Gold (Energy A) rating.
The property is located in the new Oslo Business Park, the Siemens AS headquarters forms part of a growing office and commercial submarket in Oslo. Upon completion, OBP will be a 1.1 million square foot, nine-building office park that benefits from excellent transport connections.
“We are delighted that this first acquisition in Norway expands our presence to 21 countries,” Luoma added. “Norway’s strong AAA/Stable S&P rating, combined with Oslo’s status as the fastest growing capital city in Europe makes it an attractive long-term investment location. As Norway maintains an independent currency and its economy is largely uncorrelated with those of its neighbors, this transaction provides additional diversification to CPA®:18 – Global’s portfolio.”
Lars Windfeldt of Oslo Business Park commented:
“The sale to CPA:18 – Global allowed us to efficiently access the value embedded in the facility we developed for Siemens. As an established investor in long-term, net-leased, single tenant properties, W. P. Carey was ideally suited to structure a mutually attractive transaction and close on a timely basis.”