A WP Carey fund is paying €127 mln for a majority stake in a portfolio of retail stores and logistics facilities, leased to Finnish DIY retailer Kesko Senukai, in the Baltics.
Under an agreement signed in the Lithuanian capital Vilnius on 25 May, WP Carey's fund, CPA:17 - Global, is acquiring 70% in Baltic Retail Properties, a Lithuanian closed-ended investment company.
The investment is one of the largest in Baltic real estate for some time, and follows on from CPA:17 acquiring a warehouse from BRP last year for €60 mln. With the two deals combined, CPA: 17 - Global's Baltic holdings total €187 mln.
Simultaneous to WP Carey's fund investment last week, Kesko retail group acquired a 10% shareholding in BRP and sold seven stores in Estonia and Latvia to BRP for €64 mln.
BRP owns a portfolio of retail and logistics facilities throughout Lithuania, Estonia and Latvia. The assets are leased on a long-term basis to Kesko Senukai.
BRP's three original owners - Kesko Senukai president Arturas Rakauskas, Senukai founder Augustinas Rakauskas, and investment group Zabolis Partners, remain in the company as minor shareholders with a total shareholding of 20%. Zabolis is the asset manager for BRP.
'We are delighted to continue investing in the Baltic States, while expanding our relationship with a strong tenant like Kesko Senukai in a sector recognized as one of the most promising in the region,' commented Arvi Luoma, managing director of WP Carey.
Kesko Senukai is the Kesko Group company responsible for building and home improvement stores in the Baltics and Belarus. With 54 stores, it is the region's market leader, according to Kesko.
Globally, WP Carey currently manages assets of more than $22 bn across a 1000-asset strong portfolio with more than 12 million m2 in North America, Europe and Asia.
