W. P. Carey Announces $1.8 Billion Global Investment Volume in 2013
Domestic and International Transaction Capabilities Support Diversified Acquisition Strategy
Key Facts - 2013
- Total 2013 investment volume: Approximately $1.8 billion, including €350 million ($460 million) in Europe.
- Types of assets acquired: Office, Retail, Manufacturing, R&D, Hotels, Self Storage
- Industries: Equipment Manufacturing, Retail, Food, Technology, Entertainment, Insurance, Education, Telecommunications, Automotive, Electronics, Engineering & Construction, Banking
- Countries: United States, United Kingdom, Finland, Netherlands, Poland, Croatia, Germany, India
- Tenants include: Kraft Foods, tw telecom, Tommy Hilfiger, Cargotec, Avnet, State Farm, H&M, KBR, Banco Santander, the Department of State for Communities and Local Government (a department of the UK Government), Agrokor, Royal FrieslandCampina
During 2013, W. P. Carey applied its disciplined, opportunistic strategy to deploy capital both on behalf of its own portfolio as well as its managed REITs. In addition to the traditional sale-leaseback and build-to-suit transactions completed in 2013, W. P. Carey also acquired real estate assets under pre-existing long-term net-leases that met its traditional investing criteria based on tenant credit-worthiness, asset quality and long-term criticality of the assets to the operations of the tenant. As a result, W. P. Carey not only provided financing directly to tenant companies, but it was also able to provide liquidity to institutional owners, investors, and developers.
W. P. Carey also continued to secure investments in the self storage and hotel sectors through its managed REITs.
Trevor Bond, President and Chief Executive Officer, W. P. Carey Inc.: “As the net-lease investment universe has continued to expand, we have built on our existing strengths to support and evolve our investment strategy. As a result, we are able to access a broader scope of opportunities while still adhering to the basic criteria and objectives that have been our guideposts for more than 40 years.
“Within our managed REITs, in addition to traditional net-lease assets, we have continued to opportunistically invest in both the self storage and hotel sectors where we see the ability to grow income and create value through the application of the in-depth financial and management expertise we have developed in these sectors.”
Headquarters Facility – Illinois
In January, W. P. Carey Inc. acquired the corporate headquarters of Kraft Foods outside of Chicago and leased it back to Kraft under a 10-year triple-net lease.
Corporate Operation Facility – Texas
In August, CPA®:17 – Global and CPA®:18 – Global acquired a State Farm regional operation center in Austin, Texas. The facility is leased back to State Farm for an initial term of 15 years.
Automotive Dealership – Texas
In August, CPA®:17 – Global acquired a Toyota automotive dealership facility in Lewisville, Texas. The facility is leased back to RML Automotive on a triple-net basis for a term of 16 years. The transaction follows on a portfolio acquisition financing of nine automotive dealerships leased back to RML in September 2012.
Distribution Facility – South Carolina
In April, CPA®:17 – Global provided funding for a build-to-suit construction project of approximately one million square feet to expand an existing distribution facility located in Dillon, South Carolina. The existing facility is leased to Harbor Freight Tools, a discount tool retailer with over 430 stores nationwide. Upon completion, the new facility will also be leased to Harbor Freight Tools on a triple-net basis for a period of 20 years.
Corporate Office Facility – Germany
In December, W. P. Carey Inc. announced it had entered into a build-to-suit transaction for the construction of a Class A office facility in Monchengladbach, Germany, which upon completion in 2015 will leased to Banco Santander on a 20-year triple-net basis.
Net-Lease Asset Acquisitions:
R&D Facility – Netherlands
In July, CPA®:17 – Global acquired the new European Innovation Center of Royal FrieslandCampina from the developer of the facility. The R&D facility, located in the Netherlands, is net leased for a term of 15 years to Royal FrieslandCampina, the fourth largest dairy company in Europe and fifth largest in the world.
Distribution Center – Poland
In July, CPA®:17 – Global acquired a 900,000 square foot distribution center from an institutional investment fund managed by INVESCO Real Estate. The facility is the main European distribution center for H&M and is leased to H&M under a 12-year triple-net-lease.
Corporate Office Facility – Colorado
In October, W. P. Carey Inc. acquired a 161,000 square foot Class A office building from a local Denver investment group. The facility is leased to tw telecom under a 15-year net-lease and houses one of tw telecom’s support facilities.
During 2013, CPA®:17 – Global completed eight self storage transactions encompassing 13 different self storage properties in five states with total acquisition cost of approximately $121 million.
In 2013 Carey Watermark Investors (CWI) made investments in 12 properties, including center city properties in New York, Chicago, Raleigh and Nashville, and resort properties in Sonoma, CA and the Florida Keys with a total investment value of approximately $740 million.
Joint Venture – Resort Hotel – California
In July, CWI made a joint venture investment with Fairmont Hotels in the 226-room historic Fairmont Sonoma Mission Inn and Spa in California.
Acquisition – Center City/Convention/Meeting Hotel - Chicago
In December, CWI acquired the 553-room Marriott Renaissance Chicago Downtown hotel.
W. P. Carey Inc.
W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling more than $15 billion. The largest owner/manager of net-lease assets, WPC's corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows that have enabled WPC to deliver consistent and rising dividend income to investors for nearly four decades. www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Bond are examples of forward looking statements. A number of factors could cause each company’s actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, CPA®:17 – Global, CPA®:18 – Global and/or CWI, reference is made to each company’s filings with the Securities and Exchange Commission.