GELSENKIRCHEN, Germany—W. P. Carey Inc. says one of its managed non-traded REITs, has acquired a hypermarket in Gelsenkirchen. The facility is leased to Real, Germany's largest hypermarket operator and a subsidiary of Metro AG, the German retail conglomerate. The property was acquired through Carey's CPA:17 – Global REIT.
"This transaction offered the opportunity for CPA:17 – Global to acquire a stable retail asset with an attractive risk-adjusted yield and subject to a long-term triple net-lease,” said Arvi Luoma, director of W. P. Carey. “While we believe retail in the United States is in many instances overbuilt, big box retail in Europe—in this case, Germany—with strong credits is a far more attractive opportunity. Having completed a transaction with Metro in Italy in 2011, we are pleased to expand upon this relationship and release capital from this asset that can now be deployed into Metro's operating business."
Real is one of the four key business units of Metro AG (Metro). Metro, one of the world's largest retailers, is rated BBB-/Stable by S&P and is listed on the Frankfurt Stock Exchange with a market capitalization of approximately $10 billion (€7.9 billion).
The deal is an all-equity acquisition of a well-located triple net-leased asset: The 128,253 square-foot facility located on a 7.5 acre land parcel includes 440 parking spaces and is well-positioned along a main connection route between Gelsenkirchen's city center and residential areas.
This store has been operating at this proven retail location for approximately four decades. The facility is a strong-performing asset in Real's home German market, where planning restrictions limit future development and competition.
Wolfgang Baumgartinger, head of corporate transactions, Metro Properteis, said:
"Having worked with W. P. Carey in the past, this transaction again demonstrated their ability to structure a deal that met our requirements and provided capital on a timely basis,” he said. “We were delighted to complete this transaction and grow our relationship with W. P. Carey."
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