WP Carey in sale-and-leaseback with Dutch retailer

WP Carey, a global sale-and-leaseback specialist, has acquired six distribution centres from Dutch supermarket group C1000 for EUR 155 mln. The sale-and-leaseback transaction was completed by one of WP Carey's publicly-held non-traded REIT affiliates, CPA: 17 - Global.

This transaction brings the total international assets under management by WP Carey outside the US to EUR 2.3 bn, representing 34% of total assets under management.

The six logistics properties, which are located across the Netherlands, will be leased back to C1000 under a long-term triple net lease. The portfolio represents the complete distribution network of C1000, supplying all of its supermarket stores in the country. With annual consumer sales of EUR 3.7 bn, C1000 and its franchisee network comprise the second largest food retailer in the Netherlands.

Jeffrey Lefleur, executive director of WP Carey, said: 'The transaction marks WP Carey's first deal in the Netherlands and our largest European sale leaseback since 2007, capping off a 12-month period where we have provided more than $600 mln in alternative long-term financing to companies throughout Europe.'

'We are excited by the opportunity for increased sale leaseback in Europe, our investment strategy is both pan-European and opportunistic allowing us to assess individual financing requirements across a wide variety of sectors and geographies,' he added.

The portfolio comprises 152,000 m² of office and distribution space and a further 38,000 m² of freezer facilities. Two of the assets are located in the town of Raalte, with a one each in Brea, Elst, Woerden and Gieten.

DTZ Zadelhoff acted as property adviser to C1000 in the transaction, with Lexence providing legal advice. NautaDutilh and ReedSmith acted for the buyer.

WP Carey operates through non-listed real estate investment trusts in the US. The firm completed $580 mln (EUR 431 mln) in investments in the fourth quarter of 2010, bringing total investment volume for the year to more than $1 bn. The deals span six countries and include 100 properties totalling more than 948,000 m² with tenants in 14 different industries ranging from defence and banking to consumer products and food.

The list of sale-and-leaseback transactions carried out by WP Carey's European operation last year include a EUR 126 mln deal with the Agrokor retail chain in Croatia, the EUR 120 mln acquisition of supermarket and distribution centre assets from Spanish retailer Eroski. This year the firm bought the Madrid headquarters of Spanish digital television company DTS for EUR 86 mln.