Net lease REIT WP Carey has acquired a food production and warehouse facility in Belgium for €93 mln.
The 174,000 m2 facility is triple-net leased to Greenyard Prepared Investments, a fruit and vegetables distributor, for a term of 20 years with Belgian CPI-based rent increases.
Greenyard is one of the largest global suppliers of fruits and vegetables. The company employs over 9,000 people and its customers include 19 of Europe’s top 20 retailers.
The facility comprises substantially all of the production capacity of Greenyard’s prepared business line, and is ideally located in one of the most productive agricultural regions globally, with the land surrounding it suitable for harvesting in all conditions.
In addition, the facility’s access to water, proximity to farmland and neighbouring transportation infrastructure, including the Port of Rotterdam and Port of Antwerp, make it extremely difficult to replicate, according to the buyer.
WP Carey noted that the asset is located adjacent to 23.5 acres (9.5 ha) of land owned by Greenyard, providing an opportunity for future expansions.
Greenyard is an existing tenant of WP Carey since 2016, following the sale-leaseback of a cold-storage facility in Poland for €31 mln.
Christopher Mertlitz, head of European investments, WP Carey, said: 'We’re delighted to build on our long-standing relationship with Greenyard and add another high-quality food production facility to our portfolio.
'Given the facility’s strategic importance to Greenyard’s business, attractive location and long lease term among other factors, this transaction perfectly speaks to our core investment criteria, while allowing Greenyard to unlock the value of its real estate. We look forward to working with Greenyard in the future.'
Geert Peeters, CFO at Greenyard, said: 'The transaction allows for a diversification of funding. Aside from cementing Greenyard’s financial stability for the future, it will also generate more room for growth in line with the strategic plans of the company.'
