WP Carey buys in Croatia for €67m

WP Carey has acquired five retail stores in Croatia in a €67 mln sale-and-leaseback transaction with local food retailer Agrokor.

The company's publically held, non-traded REIT units CPA:17 Global and CPA:18 Global will take an 80% and 20% share respectively in the assets. The deal was closed on an all-equity basis.

The five stores have been leased back to Konzum, the largest food retailer in Croatia and Agrokor’s main subsidiary, on a 20-year triple-net basis. Three assets are located in Zagreb with the two remaining stores located in the major coastal tourist destinations of Split and Zadar.

'With this transaction closed, we have completed approximately €350 mln of total European investment for 2013, much of which related to all-cash acquisitions which utilised our large equity base,' commented Jeffrey Lefleur, managing director of WP Carey Europe.

Ivica Todoriæ, founder and president of Agrokor, added: 'While there is a trend among investors to reduce their exposure in Eastern Europe, WP Carey has continued to be a valuable long-term partner and alternative source of capital for Agrokor. This relationship has become particularly important as we prepare for a potentially large acquisition and expansion in the region.'

The latest acquisition follows WP Carey's purchase in January of a portfolio of eight retail stores in Croatia for a total of €35 mln.

In total, the firm has agreed a total of €192 mln in financing with Agrokor over the past three years.