-- Swedish acquisition adds long-term CPI-indexed net leased asset to portfolio
LONDON, July 2, 2015 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net lease properties, announced today that it has acquired a logistics facility in Oskarshamn, Sweden for approximately SEK 216 million (€23 million). The facility was purchased from the developer and is net leased to Scania AB (Scania), a leading manufacturer of commercial vehicles.
- High quality, well-established tenant: With a presence in over 100 countries, Scania is one of the world's leading manufacturers of commercial vehicles, particularly heavy trucks and buses. Founded in 1900, it is wholly-owned by German automotive group Volkswagen AG. Scania is rated A- by Standard & Poor's; Volkswagen is rated A by Standard & Poor's and A2 by Moody's.
- Critical logistics facility in strategic location: Completed in March 2015, the Class-A building was purpose-built for Scania to provide logistics support for one of its main manufacturing plants in Oskarshamn, which was recently expanded. The facility is located on a key highway route connecting Stockholm, Oskarshamn and Malmö to mainland Europe.
- Long-term net lease with built-in rent growth: The facility is net leased with approximately 15 years remaining and includes annual CPI-based rent escalations.
Arvi Luoma, Executive Director of W. P. Carey, commented, "Having operated in Oskarshamn since 1946, Scania is a well-established investment grade tenant and one of the largest employers in Southern Sweden. Bordering Norway and Finland, Sweden is connected to Denmark and mainland Europe by a bridge-tunnel making it an attractive logistics route within the Nordic region. Sweden, the third-largest country in the European Union by area, is rated AAA by both S&P and Fitch, and Aaa by Moody's. We are pleased to complete this transaction and secure another high-quality asset in the Nordic region that is positioned to deliver current income and add long-term value to W. P. Carey'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. Luoma are examples of forward looking statements. A number of factors could cause W. P. Carey'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, reference is made to its filings with the Securities and Exchange Commission.
W. P. Carey Inc. contacts:
Dan de Belder/Emma Kent/Kashara Taylor
W. P. Carey Inc.
SOURCE W. P. Carey Inc.