W. P. Carey (WPC) Completes $145M Industrial Facility Portfolio Sale-Leaseback

November 9, 2016 7:51 AM EST

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W. P. Carey Inc. (NYSE: WPC) announced that it has completed a sale-leaseback with ABC Group Inc. ("ABC") for a portfolio of ten industrial facilities and one office facility in the U.S. and Canada, and has entered into a sale-leaseback agreement for the acquisition of four additional industrial facilities in Mexico, which is expected to be completed in 2016. The total purchase price for all 15 properties is approximately $145 million.

Key Facts

  • Industry-leading automotive supplier: ABC is a leading full-service supplier of molded thermoplastic components and systems to original equipment manufacturers for the automotive industry.
  • Critical operating properties: The sale-leaseback transaction includes approximately 2.4 million square feet of vertically integrated manufacturing facilities representing the majority of ABC's North American footprint.
  • Private equity sponsorship: ABC is a portfolio company of Cerberus Capital Management, L.P., a private investment firm with over $30 billion under management and deep automotive sector expertise.
  • Long-term, USD net leases with built-in rent growth: The 15-property portfolio will be leased on a triple-net basis in USD under master leases by country for a period of 20 years, reflecting ABC's focus on continued long-term success and operational excellence, and will include annual CPI-based rent escalations.

Management Commentary

Jason Fox, W. P. Carey President and Head of Global Investments, commented: "Our acquisition of these assets is part of our active approach to recycling capital and improving the quality of our portfolio. In this case, we redeployed the proceeds from the sale of an aging portfolio of properties into critical assets leased to a strong tenant on a long-term basis, thereby improving our weighted average lease term and the overall risk profile of our portfolio, which we believe has real, tangible value for our shareholders."

Andrés Dallal, W. P. Carey Vice President, added: "The sale-leaseback transaction with ABC demonstrates W. P. Carey's ability to partner with sponsors and tenants to execute complex, multi-country transactions tailored to our partners' structuring requirements."

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