W. P. Carey Inc. has completed a BTS financing of $18.7 million for the Wartsila training facility.

DRUNEN, NETHERLANDS—W. P. Carey Inc. global net-lease REIT has completed a build-to-suit financing of $18.7 million (€13.6M) transaction on behalf of CPA:17 – Global, one of its managed REITs.

The transaction will include 100% funding for the construction of a new two-building facility in the Netherlands for the global industrial company, Wärtsilä. The facility will comprise an office building and a training building, which will be the new global R&D center for Wärtsilä’s Ship Power division, and their new Land & Sea Academy for the Netherlands.

“Wärtsilä is a global leader in its field and we are pleased to be working with them and the developer, M7, to deliver this important facility,” said Jeffrey Lefleur, managing director of W. P. Carey. “Upon its completion, the facility will be a mission-critical asset that is a key part of Wärtsilä’s long-term R&D platform. This deal demonstrates our ability to provide financing solutions to leading corporations and developers who wish to build new facilities without tying up their equity capital. While the Netherlands remains a challenging country for financing new property development, we’re very excited to continue our investments in Dutch built-to-suit projects.”

W. P. Carey has partnered with local Dutch developer, M7 Group, on the project. Construction of the facility will begin shortly, with the majority of building-work completed within one year. Once completed, the facility will be leased to Wärtsilä on a long-term net-lease. The facility will be located in Drunen, in the southern Netherlands. 

Key facts:

·         Strategically critical asset: The to-be-built facility will be Wärtsilä’s global R&D site for their Ship Power division, as well as the company’s new technical training center in the Netherlands.

·         Strong credit: With $6.3 billion (€4.6 billion) in annual revenues, Wärtsilä is a global leader in industrial engines and power plant systems.  It is publicly-listed on the NASDAQ OMX, with an equity market capitalization of nearly$11 billion (€8 billion).

·         Strategic realignment: The facility is a component of Wärtsilä’s previously announced plan to reduce its manufacturing footprint in the Netherlands and increase its focus on R&D and services.

·         Construction financing: The transaction displays the ability of W. P. Carey and its managed REITs to provide 100% construction financing for single-tenant projects in Europe.