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Press Release

W. P. Carey Acquires "Big Box" Retail Facility in Gelsenkirchen, Germany on Behalf of CPA:17 - Global

14-year triple net-lease with hypermarket operator, Real

Company Release - 10/16/2014 7:30 AM ET

NEW YORK, Oct. 16, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease REIT specializing in corporate sale-leaseback, build-to-suit construction financing and the acquisition of single-tenant net-lease properties, announced today that CPA®:17  Global, one of its managed non-traded REITs, has acquired a hypermarket in Gelsenkirchen, Germany.  The facility is leased to Real, Germany's largest hypermarket operator and a subsidiary of Metro AG, the German retail conglomerate.

On behalf of our managed REIT, CPA: 17 – Global, acquired a “big box” retail facility in Germany. The facility is let to Real, Germany’s largest hypermarket operator and a subsidiary of Metro AG, for a period of 14 years.

Key Facts

  • Strong credit tenant: 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).
  • 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.
  • Critical asset: The hypermarket 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. 
  • Stable market economy: Germany is the largest national economy in Europe and is rated AAA/Stable by all major rating agencies.  The German food retail industry is dominated by five players, of which Metro is the largest, and is considered as stable and mature.

Management Commentary

Arvi Luoma, Director of W. P. Carey, commented:

"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.  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."

Wolfgang Baumgartinger, Head of Corporate Transactions, METRO PROPERTIES, 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.  We were delighted to complete this transaction and grow our relationship with W. P. Carey."

W. P. Carey Inc.
Please visit www.wpcarey.mediaroom.com for more information about W. P. Carey, to access our image and video libraries and to follow us on social media.

This press release contains forward-looking statements within the meaning of the Federal securities laws.  The statements of Mr. Luoma are examples of forward looking statements. A number of factors could cause CPA®:17 – Global'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 CPA®:17 – Global, reference is made to CPA®:17 – Global's filings with the Securities and Exchange Commission.

Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995
kmcmenamin@wpcarey.com 

Media contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com

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SOURCE W. P. Carey Inc.

 

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