LONDON, Sept. 10, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that CPA®:17 – Global, one of its managed non-traded REITs, has completed a sale-leaseback with Nokia Solutions and Networks (NSN), a subsidiary of leading global communications and information company Nokia Corporation. The office/R&D facility is located in Krakow, Poland and was acquired for €9.7 million ($13 million).
- Strategic facility: Completed in 2003, the 4,961 square-metre (53,377 square-foot) facility houses approximately 300 engineers, computer technicians and researchers who are working within Nokia's network and telecom infrastructure division – which remains the core business of Nokia following the sale of its mobile phone division to Microsoft.
- Hi-tech location: The facility is located in Poland's second largest city, Krakow, which has emerged as "Eastern Europe's Silicon Valley." The city supports a strong cluster of technology businesses and is home to offices and R&D centers of Google, IBM, GE and Hitachi. Neighbouring buildings to the facility include Motorola, Ericpol, the Jagiellonian University Library, Małopolska Information Technology Park and the Krakow LifeScience Technology Park and Bioincubator.
- Lease term: 10-year, triple-net lease.
- Credit-rated parent: Nokia has an equity market capitalization of €20 billion ($27 billion), is listed on the NYSE (Ticker: NOK) and is rated "BB / Positive Outlook" by S&P and Moody's.
Active in Europe since 1998, W. P. Carey and its managed REITs have invested approximately €3 billion ($4 billion) in the region. This transaction is W. P. Carey's second in Poland this year; in April, W. P. Carey announced a €115 million ($158 million) acquisition of Bank Pekao's headquarters in Warsaw on behalf of two of its managed REITs.
Jeffrey Lefleur, Managing Director of W. P. Carey, commented:
"Nokia remains one of the world's leading telecom infrastructure providers. The acquired facility is an important asset to Nokia Solutions and Networks Polish operations. This transaction highlights W. P. Carey's ability to structure deals worldwide, providing long-term financing for leading global businesses."
Mr. Lefleur added: "Poland is the second largest economy in Central Eastern Europe with projected GDP growth and a healthy and liquid banking industry. These metrics, along with the strength of the Nokia tenancy and positive outlook for the Krakow office market, enhanced the attraction of this acquisition as a solid addition to CPA®:17 – Global's portfolio."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Lefleur 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.
W. P. Carey Inc. contacts:
Dan de Belder/Emma Kent/Kashara Taylor
SOURCE W. P. Carey Inc.