W.P. Carey Completes $124M Industrial Net Lease Investments

NEW YORK CITY— W.P. Carey Inc., a real estate investment trust specializing in corporate sale-leasebacks, build-to-suits, and the acquisition of single-tenant net lease properties, has completed three investments totaling an estimated $124 million. Each property is triple net-leased for an average weighted lease term of 22 years.

The cross border investment opportunities are industrial properties spread out in the US, Mexico and Germany. Acquiring the properties in an aggregate fashion was in line with the REIT’s growth initiative to scale up its portfolio with high-quality industrial assets.

“W. P. Carey’s ability to quickly and efficiently close complex, cross-border transactions continue to differentiate us from our competitors and position us as the preferred capital source for industry-leading tenants,” said Joseph Mastrocola, director of investments at W. P. Carey, in a prepared statement.

Investment properties include a $53 million leaseback of three industrial properties totaling 980,000 square feet and net leased to a tool manufacturer. The tenant boasts strong credit and is leasing the properties on a triple-net basis in US dollars, under master leases respective to each country for 25 years and with yearly rent increases.  The company occupies all three assets, located in the US and Mexico.

Other investment properties include a $16 million sale-leaseback of a Netherlands industrial property, totaling an estimated 203,000 square feet. The facility is triple-net leased for a term of 20 years with annual Dutch CPI-based rent escalations.  The investment portfolio also includes a $55 million build-to-suit commitment for a new industrial R&D property in Germany, totaling approximately 168,000 square feet.  Upon its 2021 completion, the facility will have a triple-net leased tenant, and for a minimum of 20 years with yearly German CPI-based rent increases.