NEWPORT, WALES—W. P. Carey Inc., has acquiredthe newly constructed office of Admiral Group plcin Newport, Wales for approximately $32 million (£20 million). Thefacility is leased to Admiral Group. The seller wasScarborough Group International, the UK andinternational real estate investor and developer.

|

“The transaction with Scarborough Group is consistent with ourinvestment strategy of acquiring critical assets leased on along-term basis to strong credit tenants and demonstrates ourability to provide liquidity to developers and owners of attractivenet-leased assets,” says Jennifer Lucas, executivedirector of WPC. “Admiral is a well-capitalized business with along-term commitment to the facility and we are delighted to addthe company to our tenant portfolio. Given the UK's status as thesecond largest European economy with good growth forecasts, we arepleased to add another UK asset to our holdings.”

|

Mark Jackson, director of Scarborough GroupInternational, added: “We are pleased to complete this transactionwith W. P. Carey. Their capital resources, experience in theEuropean net-lease investment market and their strategy ofacquiring long-term net-leased assets made them an ideal purchaserfor this asset.”

|

The 80,664 square-foot, class A office buildingwas completed in May 2014 and houses more than 500 Admiralemployees. The company has a strong presence in the area and haschosen the location as a key long-term operating site. The propertyis also situated in a city center location in Newport, the facilityforms part of a major redevelopment of the surrounding area, whichhas already attracted $370 million (£230 million)of private investment into the city.

|

Admiral is a FTSE100 company and one of theUK's largest car insurance providers with a growing internationalpresence. For the financial year 2013, Admiral reported turnover,profit before tax and profit after tax of $3.2 billion (£2billion), $594 million (£370 million) and $461 million (£287million), respectively.

|

“We are delighted to have secured this 20-year lease of our newoffice building in Newport and look forward to working with W. P.Carey as our landlord and long-term partner,” said HuwLlewellyn, head of property and facilities management forAdmiral Group. The triple net-lease, begins June 2014 with a tenantbreak option at the end of the sixteenth year of the lease.

|

WPC is a global net-lease REIT specializing in corporatesale-leaseback, build-to-suit financing and the acquisition ofsingle-tenant net-lease properties.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.