NEW YORK CITY-W.P. Carey & Co. said Tuesday that two of thenon-traded REITs it manages will merge. The CPA:14 non-traded REIT,with real estate assets of $1.94 billion as of Sept. 30, willcombined with CPA:16 Global, part of a series of transactions bywhich CPA:14 will liquidate, subject to shareholder approval.


Additionally, CPA:14 will sell joint venture interests in atotal of six investments, valued at approximately $89.5 millionplus the assumption of related debt, to W.P. Carey and CPA:17 Global, also managed by W.P. Carey. CPA:14 opened in 1997 andclosed in 2001. In an SEC filing Tuesday, W.P. Carey said themerger was deemed to be in the best interests of CPA:14’sstockholders, who will receive total consideration valued at $11.50per share. Currently, W.P. Carey owns about $92 million in CPA:14shares and $61 million in CPA:16 shares.


Following the merger, CPA:16, which opened in 2003 and closed in2006, will reorganize as an UPREIT, according to an investorpresentation. In common with CPA:14, it pursues sale-leasebackdeals with major companies. The merger with CPA:14 will increaseCPA:16’s net lease asset base to $4 billion worldwide, comprised ofa net-lease portfolio of 151 tenants and 566 properties.


According to the investor presentation, the combined entity willprovide greater diversity across industry, property type andgeography. Its top 10 tenants will comprise 27% of lease revenue,down from the current 36%.


Click herefor a GlobeSt TV interview with Trevor Bond, W.P. Carey’s president and CEO.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.