W.P. Carey Buys Lisbon Logistics Facility
The New York City-headquartered firm says the distribution center is triple-net leased to Sonae MC, Portugal's leading food retailer.
LISBON, PORTUGAL—Net lease REIT W.P. Carey Inc. has acquired a 534,000-square-foot logistics facility here for $50 million in an off-market transaction.
The New York City-headquartered firm says the distribution center is triple-net leased to Sonae MC, Portugal’s leading food retailer.
The property is located in the Azambuja logistics park, Portugal’s prime logistics hub, which is located 25 minutes north of Lisbon, Portugal’s capital and economic center.
The facility is Sonae MC’s central distribution facility and is its only warehouse in the Azambuja region with cold storage for perishable food products. Together with two neighboring Sonae logistics centers, the facility forms a strategic and efficient logistics hub from which Sonae operates its retail stores in central and southern Portugal, W.P. Carey states.
Arvi A. I. Luoma, head of European Investments for W.P. Carey in London, says, “Logistics remains a sought-after asset class across Europe, which has demonstrated attractive liquidity and growth trends. Our acquisition of a mission-critical facility in a prime logistics location in Portugal was a rare and attractive opportunity in a market with relative undersupply. The investment further diversifies our portfolio with a strong market-leading tenant in a highly defensive industry largely insulated from e-commerce disruption.”
The property has built-in annual rent escalations tied to Euro Area CPI and a remaining term of more than 10 years and is situated on a large parcel of land with substantial building rights, providing potential future expansion opportunities, company officials note.
W.P. Carey has an enterprise value of more than $11 billion and a global portfolio of operationally-critical commercial real estate totaling 878 properties covering approximately 87 million square feet.