W. P. Carey Inc. Acquires $26M Logistics Facility Net Leased to Scania

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W. P. Carey Inc.
WPC
, a real estate investment trust specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net lease properties, announced today that it has acquired a logistics facility in Oskarshamn, Sweden for approximately $26 million (SEK 216 million). The facility was purchased from the developer and is net leased to Scania AB (Scania), a leading manufacturer of commercial vehicles. W. P. Carey Inc. acquired a logistics facility in Oskarshamn, Sweden for approximately SEK 216 million ($26 million). The facility was purchased from the developer and is net leased to Scania AB, a leading manufacturer of commercial vehicles. High quality, well-established tenant: With a presence in over 100 countries, Scania is one of the world's leading manufacturers of commercial vehicles, particularly heavy trucks and buses. Founded in 1900, it is wholly-owned by German automotive group Volkswagen AG. Scania is rated A- by Standard & Poor's; Volkswagen is rated A by Standard & Poor's and A2 by Moody's. Critical logistics facility in strategic location: Completed in March 2015, the Class-A building was purpose-built for Scania to provide logistics support for one of its main manufacturing plants in Oskarshamn, which was recently expanded. The facility is located on a key highway route connecting Stockholm, Oskarshamn and Malmö to mainland Europe. Long-term net lease with built-in rent growth: The facility is net leased with approximately 15 years remaining and includes annual CPI-based rent escalations. Management Commentary Arvi Luoma, Executive Director of W. P. Carey, commented, "Having operated in Oskarshamn since 1946, Scania is a well-established investment grade tenant and one of the largest employers in Southern Sweden. Bordering Norway and Finland, Sweden is connected to Denmark and mainland Europe by a bridge-tunnel making it an attractive logistics route within the Nordic region. Sweden, the third-largest country in the European Union by area, is rated AAA by both S&P and Fitch, and Aaa by Moody's. We are pleased to complete this transaction and secure another high-quality asset in the Nordic region that is positioned to deliver current income and add long-term value to W. P. Carey's portfolio."
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