NEW YORK CITY—W. P. Carey has acquired a portfolio of three modern truck and bus servicing facilities for approximately $43 million (€39 million).
The facilities—two in Germany and one in Austria—were purchased from the developer, Wohnungsunternehmen Semmelhaack, and are net leased to wholly-owned subsidiaries of MAN SE (The MAN Group).
"We are delighted to announce our latest transaction in continental Europe, further demonstrating W. P. Carey's strength in the region and our ability to source, structure and efficiently execute on a range of asset types,” says Arvi Luoma, executive director at W.P. Carey. “The Austrian component of the transaction is of particular note as it follows our first acquisition in the Austrian property market earlier this year. Furthermore, the combination of a high-quality, creditworthy tenant, the length of the net-leases—which include inflation-based rent escalations—and the criticality of the assets are all consistent with our key investment criteria. It also furthers our diversification strategy."
The properties come with a well-established, industry-leading tenant: The MAN Group is one of Europe's leading producers of commercial vehicles, engines and mechanical engineering equipment. It is a publicly traded company with a market capitalization of approximately $15 billion and is 75% owned by German automotive group Volkswagen AG.
The three facilities, originally built to tenant specifications, are among the largest service stations operated by the MAN Group and serve as an important sales driver for its 24/7 fleet repair and maintenance servicing operations. Located on arterial routes, the facilities benefit from the high commercial traffic flow that connects several major German and Austrian cities and links Europe's eastern and western markets.
The assets also enjoy long-term net leases with built-in rent growth. All three facilities are net leased, with a remaining term of approximately 15 years and CPI-based rent escalations.
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