NEW YORK, NY—W.P. Carey Inc., has acquired a portfolio of 14 trade counter and industrial assets in six different trade parks across Scotland. Carey made the acquisition through its non-traded REIT, CPA:18 – Global.

Trade counter assets are typically high volume showrooms or light retail businesses that require an element of retail space and use the balance of space for warehousing inventory and/or office purposes.

The assets were acquired from Cording Real Estate Group, a real estate owner and manager, for a purchase price of $17.8 million (£10.6M), excluding acquisition costs.

CedarWood Asset Management Ltd, an investment and asset management company that specializes in investing in the UK industrial market, will be the manager of the portfolio.

“This transaction provides us with a strong, well-diversified portfolio of quality triple-net leased assets and is consistent with our strategy of investing in long-term income-generating properties,” said Greg Butchart, managing director of W. P. Carey. “CedarWood will provide experienced hands-on management in order to maximize value of the assets for CPA:18 – Global’s investors.”

 Modern trade counter assets are in high demand in the UK. Trade counter tenants, which typically include building merchants, trade suppliers, tool rental companies, car accessory suppliers and quasi-retail occupiers, prefer to be in established trade parks, where they can develop a local customer base.

“Given their European investing experience, capital resources and long-term investment strategy, we are pleased to be joining with W. P. Carey for the management of the Scottish trade counter portfolio and look forward to developing a long-term relationship with them,” said Paul Jenkins, director at CedarWood Asset Management.

The portfolio is 90% occupied, leased to 24 tenants on a triple-net basis, with a weighted average lease term of 8.2 years. It is comprised of best in class, modern trade counter facilities situated in established trade parks.

The portfolio is spread among six different regional locations with a tenant mix consisting of well-known Scottish companies, including: Jewsons, South Ayrshire Council, City Electrical Factors, Howdens and Saint Gobain.