Critical Portfolio Triple-Net Leased to Leading “Do-It-Yourself” Retailer
W. P. Carey Inc. (NYSE: WPC), one of the largest net lease REITs specializing in corporate sale-leasebacks, build-to-suit transactions and the acquisition of single-tenant net lease properties, today announced the acquisition of a 36-property “Do-It-Yourself” (“DIY”) retail portfolio in the Netherlands from CRH plc for approximately $178 million (€153 million).
The portfolio is triple-net leased to the Dutch DIY group Intergamma B.V. (“Intergamma”) for a weighted average lease term of 15 years. The transaction closed on July 13, simultaneously with Intergamma’s acquisition of DIY retailer Van Neerbos Bouwmarkten (“VNB”).
• Market-leading company: Operating under the Gamma and Karwei brands, Intergamma and its franchisee-shareholders represent the leading DIY retailer in the Netherlands, with a history dating back more than 85 years.
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• Critical operating properties in strategic locations: The 36-asset portfolio, comprising approximately 1.5 million square feet (141,000 square meters) of leasable area, represents approximately 80% of Intergamma’s owned retail footprint following its acquisition of DIY retailer VNB and is critical to its ongoing operations. The portfolio covers all key regional locations across the Netherlands with a concentration in the Randstad region, home to more than 40% of the Dutch population and the Netherland’s three largest cities — Amsterdam, Rotterdam and The Hague.
• Long-term net leases with built-in rent growth: The triple-net leased portfolio has a weighted average lease term of 15 years and includes annual inflation-based rent escalations tied to Dutch CPI.
Arvi A. I. Luoma, Head of European Investments at W. P. Carey, said: “The Intergamma acquisition is a great example of a transaction that meets our established investment criteria and allows us to further diversify our portfolio with a market-leading tenant in a defensive industry that is largely insulated from e-commerce disruption. The critical operating assets are strategically located with easy access, excellent visibility and strong fundamental real estate value. This investment complements the existing strength of our European portfolio and brings long-term added value consistent with our broader diversification strategy.
“Over our 20-year history of investing in Europe, we have built a well-diversified portfolio that spans multiple industries and property types. Our ability to identify and structure complex deals, including transactions of this size and scope, together with our long-term investment outlook, continues to distinguish us from others in the market.”
Gino Sabatini, Head of Investments at W. P. Carey, said: “Our recognized expertise in both North America and Europe provides us with access to a wider pool of potential acquisitions than many of our peers and has allowed us to source and execute on attractive acquisitions in all phases of the market cycle. As we have throughout our 45-year history, we will continue to identify organizations looking to realize the value of their operating assets by working with an established, stable and well-capitalized sale-leaseback partner.”
Harm-Jan Stoter, CEO of Intergamma, said: “We are pleased to have W. P. Carey as our new long-term landlord. Now is an exciting time in the history of Intergamma and as we look to progress our own business strategy, I take comfort in knowing W. P. Carey has the financial resources and local asset management team to support our current and future real estate needs.”
W. P. Carey Inc.
Celebrating its 45th anniversary, W. P. Carey (NYSE:WPC) ranks among the largest diversified net lease REITs with an enterprise value of over $10 billion and a portfolio of operationally-critical commercial real estate totaling 886 properties covering approximately 85 million square feet. For over four decades the Company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in North America and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments of Mr. Luoma and Mr. Sabatini 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 commercial 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 U.S. Securities and Exchange Commission.