W. P. Carey Seeks $1B from New CPA Offering

NEW YORK CITY-W. P. Carey Inc. said Monday that the registration statement for Corporate Property Associates 18 – Global, its newest non-traded REIT offering, has been declared effective by the SEC and that CPA:18 – Global has commenced a capital raise of up to $1 billion. CPA:18 – Global will also offer as much as $400 million worth of additional shares of common stock pursuant to its distribution reinvestment plan, according to W. P. Carey.

In the prospectus, CPA:18 – Global says that “at least a majority” of its investments will be in commercial properties leased to tenants under long-term triple-net leases. The strategy also includes equity investments in properties that are not long-term net leased to a single tenant, mortgage loans secured by CRE and equity and debt securities.

It's not certain what percentage of CPA: 18 – Global's assets will consists of these non net-lease assets. As with previous non-traded REITs in the CPA series, investments will be made both within and outside the US.

Shares in CPA:18 – Global will sell at $10 for class A shares and $9.35 for class C. The class A shares have higher upfront selling fees and commissions, while class C will pay lower upfront commissions and will be subject to an ongoing distribution and servicing fee, W. P. Carey says.

Since the launch of Corporate Property Associates in 1979, W. P. Carey and the CPA programs have raised more than $8.6 billion in equity, and 14 of the CPA REITs have gone full cycle, merging with one or more other CPA programs. W. P. Carey merged with CPA:15 this past September, simultaneously becoming a REIT itself.