Finance
Net Leasing
Jul 28, 2009
By: Barbra Murray, Contributing Editor
Net lease real estate firm W.P. Carey & Co. has been looking to amp up its activity on the international scene of late, and the latest move by the firm is a big step in that direction. Acting through its CPA(R):16 - Global and CPA(R):17 - Global REIT affiliates, W.P. Carey beefed up its European holdings with the acquisition of retailer Tesco Plc's 995,000-square-foot logistics portfolio in Hungary. The deal allows Tesco, the third largest retailer in the world, to pocket $90 million in long-term financing and lease back the facilities from the New York City-based investment firm.
Real estate services firm Cushman & Wakefield Inc. represented the tenant in the transaction, while W. P. Carey relied on the guidance of King Sturge. For W.P. Carey, the purchase dovetails with the company's strategy of further tapping into the European market--in more than one facet. "We're not only able to see opportunities in Europe that are good from an investment standpoint, but also from a credit standpoint," a W.P. Carey spokesperson told CPN.
Last month, the company revealed plans to raise $1 billion for acquisitions in European and emerging markets via the aforementioned CPA(R):17 - Global REIT affiliate. The fund is being marketed to U.S. investors, and apparently, more than a few with deep pockets are jumping at the opportunity. "At this point in time, we've raised approximately a half-billion dollars in funds and we're in the process of raising additional monies," the spokesperson said. "We have the ability to raise up to $2 billion, but we're looking to raise between $1 billion and $2 billion."
The deal with Tesco marks W.P. Carey's first investment move in Hungary, but it was far from the firm's only major play so far this year. In March, W.P. Carey entered into a sale-leaseback transaction with the New York Times Co. for a 750,000-square-foot portion of the office space the media company owns and occupies at its headquarters building in New York City. The $225 million purchase was made through CPA(R):16 - Global and CPA(R):17 - Global, the same publicly held non-traded REIT affiliates behind the Tesco portfolio acquisition. "Our funds are very geared toward long-term income generation, so for people looking for yield, it's a great alternative to bonds."
By: Barbra Murray, Contributing Editor
Net lease real estate firm W.P. Carey & Co. has been looking to amp up its activity on the international scene of late, and the latest move by the firm is a big step in that direction. Acting through its CPA(R):16 - Global and CPA(R):17 - Global REIT affiliates, W.P. Carey beefed up its European holdings with the acquisition of retailer Tesco Plc's 995,000-square-foot logistics portfolio in Hungary. The deal allows Tesco, the third largest retailer in the world, to pocket $90 million in long-term financing and lease back the facilities from the New York City-based investment firm.
Real estate services firm Cushman & Wakefield Inc. represented the tenant in the transaction, while W. P. Carey relied on the guidance of King Sturge. For W.P. Carey, the purchase dovetails with the company's strategy of further tapping into the European market--in more than one facet. "We're not only able to see opportunities in Europe that are good from an investment standpoint, but also from a credit standpoint," a W.P. Carey spokesperson told CPN.
Last month, the company revealed plans to raise $1 billion for acquisitions in European and emerging markets via the aforementioned CPA(R):17 - Global REIT affiliate. The fund is being marketed to U.S. investors, and apparently, more than a few with deep pockets are jumping at the opportunity. "At this point in time, we've raised approximately a half-billion dollars in funds and we're in the process of raising additional monies," the spokesperson said. "We have the ability to raise up to $2 billion, but we're looking to raise between $1 billion and $2 billion."
The deal with Tesco marks W.P. Carey's first investment move in Hungary, but it was far from the firm's only major play so far this year. In March, W.P. Carey entered into a sale-leaseback transaction with the New York Times Co. for a 750,000-square-foot portion of the office space the media company owns and occupies at its headquarters building in New York City. The $225 million purchase was made through CPA(R):16 - Global and CPA(R):17 - Global, the same publicly held non-traded REIT affiliates behind the Tesco portfolio acquisition. "Our funds are very geared toward long-term income generation, so for people looking for yield, it's a great alternative to bonds."
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