"We were able to do this deal despite the tightening of the credit markets by providing financing to Schuler on an all-equity basis," relays W.P. Carey international president Edward LaPuma. The arrangement was helpful to Schuler in the wake of a recent takeover that tapped substantial capital from the firm, LaPuma explains. That element required the process be consummated quickly regardless of the credit environment, offering an opportunity for Carey that others could not react to in the mandated time window, he says.

Publicly traded on the German stock exchange, Schuler AG is a worldwide leader in the production of metal-forming machines and related equipment. A middle-market operation, the operation is the sort that "serves as the backbone of the German economy," LaPuma says. Given their prominence, so-called "mittelstand" firms could be a rich source for investment fund managers such as W.P. Carey to pursue future sale-leaseback ventures in the country, LaPuma says.

"Schuler is a perfect example of a mittelstand company benefiting from a properly structured long-term financing, and at the same time, is a solid investment for W.P. Carey," he says. LaPuma's firm last week completed a $31-million sale-leaseback with a similarly sized German firm, he notes, and has additional prospects in its sights as companies there turn to harvesting corporately owned real estate as a strategy to improve the balance sheet and outsource facility operations.

The Schuler assets were secured via Carey's CPA15 and CPA16 funds, the latter of which was structured to pursue global opportunities. That fund has properties in both Asia and Mexico, but most of the international focus to date has been on Europe. Presently, W.P. Carey owns through its series of CPA funds more than 850 commercial and industrial properties in 14 countries, assets representing close to 100 million sf.