WP Carey to convert to a REIT for scale advantages

Global real estate investment manager WP Carey is to convert to a real estate investment trust and merge with its existing REIT affiliate CPA:15. The REIT will be called W P Carey Inc.

The company said in a statement it had decided to convert because of the significant increase in scale and real estate under ownership and the increased financial strength and flexibility the move offers.

The transaction values CPA:15 at $ 2.6 bn (EUR 2 bn), including assumed debt of $1.2 bn. The new REIT will continue to trade on the New York stock Exchange.

The conversion to a REIT is subject to the approval of W P Carey shareholders and the merger is subject to approval of both the shareholders of WP Carey and the stockholders of CPA:15.

Following the merger, WP Carey Inc is expected to have a total equity market capitalisation of approximately $3 bn, total market capitalisation of $5 bn and a portfolio of four million m² of corporate real estate leased to 135 companies around the world.