LONDON-The magnitude of company-owned properties in Europe, about four-times the amount of firm-owned property than the United States, is what makes the continent such a ripe opportunity for sale-leaseback deals, says WP Carey Head of European Investments H. Cabot Lodge III. Lodge recently promoted Jeffrey Lefleur to managing director for the company’s European investments.

The company has grown its SLB business in Europe, almost one-third of the firm’s $10.5 billion in assets, with a significant contribution by Lefleur, Lodge says. The firm has closed investments in countries such as Germany, Poland, Spain Sweden, Croatia and Belgium, and includes the recent $218 million SLB transaction with C1000 BV, a leading Dutch supermarket company.

 Lodge tells GlobeSt.com that European firms have been slower to embrace SLB financing, though it is catching on. There was about $6 billion in SLB deals in 2004 in Europe, rising to $60 billion in 2010. “Like us, they generally view selling real estate as the last option open to them. However, you just can’t get a return in the high teens or low 20% by owning your own real estate,” Lodge says.

He says the economic downturn has allowed firms like his to attract more attention in Europe. “There’s a lack of capital in the bond and equity markets available for corporations looking to grow, diversify or pay down debt,” Lodge says. “If you show up for with money for sale, companies listen.”

The economy across the pond is just as challenging as in the states, he says, with the end coming to stimulus packages putting a brake on recovery. “I think for the rest of the year the recovery will continue slowly, with tightened monetary policies keeping rates low to drive investment,” Lodge says. “It’s not politically attractive, no politician runs on an austerity program ticket, and it’s even more difficult in Europe, where you have countries with differing fiscal policies using the same monetary system. I think it will take another four-to-five years to see recovery.”