Market Overview

W. P. Carey Announces $112 Million (£85 Million) Investment in U.K. Class-A Logistics Facility


NEW YORK, Jan. 21, 2020 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced the acquisition of a 726,000 square foot (67,500 square meters) Class-A, cross-docked logistics facility in the U.K. for $112 million (£85 million) in an off-market transaction. The mission-critical facility is net leased to the U.K. operating subsidiary of Dixons Carphone plc ("Dixons"), a publicly listed multinational electronics and telecommunications retailer and services company.

Key Facts:

  • Market-leading tenant: The tenant is the largest business segment of Dixons, a leading multichannel retailer of technology products and services, with 14 brands in nine countries and operating across 1,500 stores and 16 websites. Dixons is a publicly listed FTSE 250 constituent company with a market capitalization of over $2 billion (£1.5 billion) and annual revenues in excess of $13 billion (£10 billion).
  • Mission-critical asset: The facility functions as part of Dixons' largest and most critical distribution platform in the U.K., primarily supporting its e-commerce business, which is central to the company's long-term strategy.
  • High-quality, energy-efficient facility in prime logistics location: The facility is a Class-A, cross-docked logistics facility with up to 50-foot (15-meter) clear heights, solar panels and the capacity for automation and expansion. It is located in the U.K.'s East Midlands region in one of the country's most active logistics corridors, with direct access to the A1 motorway connecting London and Edinburgh.
  • Long-term, triple-net lease with built-in rent growth: The facility is triple-net leased for a period of 13.5 years with fixed rent increases.

Gino Sabatini, Head of Investments, W. P. Carey, said: "As the competition in Europe continues to increase, our 22-year track record, local expertise and on-the-ground presence continue to differentiate us from other investors and enable us to secure attractive investments with industry-leading tenants. We've had excellent momentum in Europe over the past few months, which we look to further build upon in 2020."

Karolis Adlis, Director of Investments, W. P. Carey, said: "The U.K. logistics market remains an attractive asset class for investors as industry tailwinds support occupier demand for logistics assets, with high-quality, well-located assets continuing to command strong investor appetite. As such, we're thrilled to have executed this off-market deal, which adds another Class-A logistics asset to our growing European portfolio and completes our second off-market transaction in the U.K. in just a few weeks."

Valentine T. Beresford, Investment Director, LondonMetric, the seller, said: "W. P. Carey was a great partner to work with on this transaction. They were immediately able to understand our objectives and completed their acquisition process within the envisaged timeframe." 

About W. P. Carey Inc.
W. P. Carey Inc. ranks among the largest net lease REITs with an enterprise value of approximately $21 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,204 net lease properties covering approximately 138 million square feet. For over four decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments of Mr. Sabatini and Mr. Adlis are examples of forward-looking statements. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for commercial properties; interest rate levels; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact W. P. Carey, reference is made to its filings with the U.S. Securities and Exchange Commission.

W. P. Carey Inc. Contacts:

Press Contacts:
Guy Lawrence
Ross & Lawrence
+1 212-308-3333 

Anna McGrath
W. P. Carey Inc.
+1 212-492-1166

Institutional Investors:
Peter Sands
+1 212-492-1110


W. P. Carey Inc. Logo. (PRNewsFoto/W. P. Carey Inc.)

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SOURCE W. P. Carey Inc.

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