W. P. Carey Completes $6B Merger with CPA:17
The deal has increased the REIT's equity market capitalization to approximately $11 billion.
NEW YORK CITY–W. P. Carey Inc. has completed its merger with one of its managed funds, Corporate Property Associates 17 – Global Incorporated, or CPA:17. The $5.9 billion transaction, which includes the assumption of debt, has increased the net lease REIT’s equity market capitalization to approximately $11 billion, positioning it as one of the largest net lease REITs and among the top 25 publicly-traded REITs in the MSCI US REIT Index.
Under the transaction, which was first announced in June, stockholders received 0.160 shares of W. P. Carey common stock for each share of CPA:17. W. P. Carey issued 53.9 million shares of its common stock for this stock-for-stock transaction.
W. P. Carey says the benefits of the merger include improved earnings quality, a simplified business better portfolio metrics and a stronger credit profile.
Finally, the transaction transformed W.P Carey into a pure-play net lease REIT, says CEO Jason Fox. “We’ve added a high-quality diversified portfolio at a favorable cap rate of approximately 7% and, having assembled and managed the assets on behalf of CPA:17, expect a seamless transition,” he says.