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W. P. Carey Inc. Announces $188 Million (DKK 1.2 Billion) Acquisition of Core Logistics Portfolio in Denmark

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W. P. Carey Inc. Announces $188 Million (DKK 1.2 Billion) Acquisition of Core Logistics Portfolio in Denmark

Inaugural Investment in Denmark Expands Nordic Portfolio

LONDON- W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net lease properties, today announced the acquisition of a mission-critical portfolio of 14 logistics assets and one corporate headquarters totaling 1,986,841 square feet (184,582 square meters) for approximately $188 million (DKK 1.2 billion).

The portfolio is triple-net leased to Danske Fragtmænd A/S (“Danske Fragtmænd”), the market-leading Danish freight carrier. The acquisition was advised by EDC Erhverv Poul Erik Bech in an off-market transaction that allowed the seller to efficiently identify a qualified buyer and negotiate the transaction without marketing publicly.

Key Facts:
• Complements existing Nordic portfolio: This deal marks W. P. Carey’s first investment in Denmark and complements the firm’s existing Nordic portfolio. W. P. Carey has been investing in the Nordics since 2001 and has acquired approximately $1 billion (€800 million) of assets in the region, including assets in Finland, Sweden and Norway.
• Market leading tenant: With a history dating back more than 100 years, Danske Fragtmænd is the leading freight carrier for business-to-business freight solutions in Denmark. It holds a dominant market share of approximately 50% in its segment, twice the size of its nearest competitor, with approximately 40,000 customers and nine million annual consignments.
• Mission-critical assets: The portfolio represents approximately 90% of Danske Fragtmænd’s logistics footprint and consists of five regional distribution hubs, nine last-mile distribution facilities and its corporate headquarters. The assets cover Denmark’s main urban centres outside of Copenhagen, including key regional sites in Aarhus, Odense and Taulov. In aggregate, approximately 80% of the portfolio’s annual base rent is located in the top seven metropolitan areas of Denmark.
• Long-term net leases with built-in rent growth: Triple-net leases with annual rent escalations tied to Danish CPI and a remaining term of approximately 17.8 years.
Arvi A. I. Luoma, Head of European Investments, W. P. Carey, said: “Denmark’s industrial real estate market is acutely under-supplied, so acquiring a high-quality logistics portfolio leased to one of the country’s top logistics companies was a rare and compelling opportunity.”

“Recognized as a well-capitalized and efficient all-equity purchaser of long-term leased high-quality assets, we have a history of providing capital to institutional investors seeking to refocus their portfolios. This transaction demonstrates how we can move quickly to execute on acquisitions that meet our investment criteria and, in particular, our appetite for mission-critical real estate.”

Gino Sabatini, Head of Investments, W. P. Carey, said: “Our 20-year track record of net lease investing in Europe positioned us to secure the Danske Fragtmænd portfolio in an off-market transaction. Our European investments are an important component of the diversification of W. P. Carey’s net lease portfolio, and this latest transaction reflects our continued ability to invest in Europe and identify long-term partners that are defined by the quality of their assets and operations.”

Jørn P. Skov, Chief Executive Officer, Danske Fragtmænd, said: “We are pleased to have W. P. Carey as our new landlord and long-term partner. We look forward to working together in the future as Danske Fragtmænd seeks to expand its market share across Denmark.”

Helle N. Ziersen, Senior Client Director, EDC Erhverv Poul Erik Bech, said: “It has been a great process finding this off-market commercial real estate portfolio for W. P. Carey, and helping them enter the Danish real estate investment market. We thank all parties for a professional process and it has been a pleasure working together with Arvi Luoma and his colleagues. We look forward to working with W. P. Carey in the future, finding more real estate investments.”

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. www.wpcarey.com

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.

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Strong exports, construction boost German economy in fourth quarter

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Strong exports, construction boost German economy in fourth quarter 1

BERLIN (Reuters) – Bullish exports and solid construction activity helped the German economy to grow by a stronger-than-expected 0.3% in the final quarter of last year, the Federal Statistics Office said on Wednesday, revising an earlier estimate.

The office, which previously had reported a 0.1% expansion on the quarter from October to December, said it also revised upward its 2020 full-year GDP figure for Europe’s largest economy to -4.9% from -5.0%.

Adjusted for calendar effects, the economy last year shrank by 5.3%, which was a much smaller contraction than many other European countries recorded, mainly due to a strong fiscal response of Chancellor Angela Merkel’s government to the COVID-19 pandemic.

The debt-financed fiscal splurge created an overall state budget deficit of 139.6 billion euros or 4.2% of gross domestic product in 2020, the office said. This was the first deficit since 2011 and the second-highest since German reunification.

(Reporting by Michael Nienaber; Editing by Maria Sheahan)

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UK’s Sunak could extend stamp duty holiday until June-end – The Times

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UK's Sunak could extend stamp duty holiday until June-end - The Times 2

(Reuters) – British finance minister Rishi Sunak is preparing to extend the stamp duty holiday by three months until the end of June in an attempt to boost activity in the housing market as the country emerges from lockdown, The Times reported on Wednesday.

The extension to the policy, which covers sales of properties worth up to 500,000 pounds ($708,100), could cost the government 1 billion pounds, the report https://bit.ly/3sglJoS added.

Britain raised the threshold of property tax to 500,000 pounds last July from 125,000 pounds, exempting nine of 10 people buying a main home from stamp duty. The temporary cuts are set to expire in March 2021.

Sunak will use his annual budget on March 3 to move the policy to the end of June, bringing it in line with the easing of lockdown restrictions, the newspaper said.

He will also announce plans to raise corporation tax while Treasury officials are considering a 25% tax hike.

Sunak said on Tuesday that he would set out more details of job support measures at his budget next week, after official figures showed unemployment had risen to its highest since early 2016.

($1 = 0.7061 pounds)

(Reporting by Aishwarya Nair in Bengaluru, Editing by Sherry Jacob-Phillips)

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Chipmakers in drought-hit Taiwan order water trucks to prepare for ‘the worst’

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Chipmakers in drought-hit Taiwan order water trucks to prepare for 'the worst' 3

TAIPEI (Reuters) – Taiwan chipmakers are buying water by the truckload for some of their foundries as the island widens restrictions on water supply amid a drought that could exacerbate a chip supply crunch for the global auto industry.

Some auto makers have already been forced to trim production, and Taiwan had received requests for help to bridge the shortage of auto chips from countries including the United States and Germany.

Taiwan, a key hub in the global technology supply chain for giants such as Apple Inc, will begin on Thursday to further reduce water supply for factories in central and southern cities where major science parks are located.

Water levels in several reservoirs in the island’s central and southern region stand at below 20%, following months of scant rainfall and a rare typhoon-free summer.

“We have planned for the worst,” Taiwan Economy Minister Wang Mei-hua told reporters on Tuesday. “We hope companies can reduce water usage by 7% to 11%.”

With limited rainfall forecast for the months ahead, Taiwan Water Corporation this week said the island has entered the “toughest moment”.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker, this week started ordering small amounts of water by the truckload to supply some of its facilities across the island.

“We are making preparations for our future water demand,” TSMC told Reuters, describing the move as a “pressure test”. The chip giant said it has seen no impact on production. Both Vanguard International Semiconductor Corporation and United Microelectronics Corp signed contracts with water trucks and said there was no impact on production.

Vanguard said it has started a drill to truck water to its facilities in the northern city of Hsinchu.

Taiwanese technology companies have long complained about a chronic water shortage, which became more acute after factories expanded production following a Sino-U.S. trade war.

(Reporting By Yimou Lee; additional reporting by Jeanny Kao; Editing by Simon Cameron-Moore)

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