LONDON—W.P. Carey Inc. has acquired a portfolio of 73 automotive retail facilities located throughout the UK, net leased to Pendragon plc for $355 million (£230.5 million).

Pendragon is the largest automotive retailer in the UK with 225 franchise locations spread across the country. The group sells a range of new and used vehicles through its retail outlets, including light motor vehicles, luxury vehicles, commercial vans and trucks, and provides after sales services.  Pendragon's portfolio of 26 brands includes the majority of the UK's 20 bestselling car models, as well as a diverse range of automotive brands like Kia, Ford, Range Rover, BMW, Mercedes, Aston Martin and Ferrari.

"We are delighted to have completed this transaction—our largest in the UK to date—with a landmark tenant in an exciting growing sector,” said Jennifer Lucas, executive director of W. P. Carey. “Given the long lease terms and the diversity of the properties acquired, we believe the Pendragon auto dealership portfolio is a strong addition to the W. P. Carey Inc. portfolio."

Trevor Finn, chief executive, Pendragon, added:

"It is reassuring to have, in W. P. Carey, a long-term investor for a portfolio of our dealerships in the UK and we look forward to working together with them."

The Strategically important, geographically diverse portfolio is made up of 1.6 million square feet and represents almost one-third of Pendragon's UK dealership footprint and is widely spread across the UK in key locations, providing a nationwide offering of franchisees.

The triple-net lease portfolio has a weighted average lease term of 15 years and includes annual inflation-based rent escalation.