Investment firm WP Carey & Co. has announced that one of its publicly-held, non-traded REIT affiliates has provided build-to-suit financing that will fund 100% of the construction and related development costs for a logistics facility in Poznan, Poland, being developed by Panattoni Europe.
Investment firm WP Carey & Co. has announced that one of its publicly-held, non-traded REIT affiliates has provided build-to-suit financing that will fund 100% of the construction and related development costs for a logistics facility in Poznan, Poland, being developed by Panattoni Europe.
Upon completion, the property will be owned by WP Carey and will be fully occupied under a long-term net lease with Neuca, a leading pharmaceutical distributor in Poland.
The to-be-built facility will comprise around 11,500 m2 and will serve as one of Neuca's three strategic logistics sites for pharmaceutical distribution across Poland. Construction is expected to be completed in January 2011.
'Our large capital base and long-term investment approach gives us the ability to finance 100% of construction in markets where such capital remains challenging for developers to access,' said Jeff Lefleur, executive director of WP Carey. 'We hope to continue being a reliable funding source to experienced developers such as Panattoni for their long-term, single-tenant projects.'
Robert Dobrzycki, managing partner of Panattoni Europe, added: 'Choosing WP Carey as our funding source enabled us to focus on the needs and timing of the project, avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part.'
