Global investment manager WP Carey has acquired control of a closed-end fund that owns 20 stores leased to Metro Cash & Carry Italia. The value of the investment, which was made by CPA 17, a subsidiary of WP Carey's publicly-held non-traded REIT affiliates, was around EUR 300 mln.
Global investment manager WP Carey has acquired control of a closed-end fund that owns 20 stores leased to Metro Cash & Carry Italia. The value of the investment, which was made by CPA 17, a subsidiary of WP Carey's publicly-held non-traded REIT affiliates, was around EUR 300 mln.
Metro Italy is a wholly-owned subsidiary of Metro, the world's largest cash and carry operator, which has guaranteed Metro Italy's obligations under the leases. The 20 stores are primarily located in the middle and northern part of Italy and represent half of Metro Italy's total Italian portfolio.
The investment brings the total international assets under management, outside the US, to $3.5 bn. The fund, named M Due, is managed by BNP Paribas Real Estate Investment.
Cabot Lodge, president and head of European Investments at WP Carey. said: 'The transaction marks our first investment in Italy and continues to represent our interest in European acquisitions. During the past twelve months, we have provided almost EUR 600 mln in alternative financing to major companies across Europe. We are delighted to be entering a new market and to be adding Metro to our list of long term obligors.'
'The divestment of the locations via the real estate fund forms an integral part of our active portfolio strategy that is oriented towards a long-term value enhancement of all real estate assets of Metro Group,' said Thomas Ziegler, CEO of Metro Properties, the real estate arm of Metro. 'With the proceeds from the transaction we will finance acquisitions of new locations in the emerging markets in Eastern Europe and Asia and thereby contribute to accelerating the international expansion of Metro Group.' He said the company is currently examining whether to launch new real estate funds in other European countries.
Last year, Metro Properties contributed 20 store locations to a fund named Venti M and placed it with institutional investors.
Reed Smith and Gianni, Origoni, Grippo and Partners represented CPA®:17 - Global as real estate and transaction counsel, and DLA Piper represented Metro. Metro was advised by Banca IMI and CPA 17 - Global by Natixis Capital Partners.
