Investment firm W.P. Carey & Co. LLC (NYSE:
WPC) plans to convert into a publicly traded real estate investment trust (REIT) and, in doing so, will acquire its non-traded REIT affiliate, Corporate Property Associates 15 Inc.
The firm said it expects the change in structure will help increase its market share and improve access to capital. The transaction values CPA 15 at $2.6 billion, including the assumption of debt of $1.2 billion, as of Dec. 31, 2011.
The new REIT, to be named W.P. Carey Inc., will continue to trade on the New York Stock Exchange under the symbol WPC.
Following the merger, W.P. Carey Inc. will control a portfolio of 42.78 million square feet of corporate real estate net leased to 135 companies around the world. About 70% of the portfolio is in the United States and the rest of the properties are located in Europe. The portfolio generates $326 in annualized base revenues and is 95% occupied.
By property type, the portfolio breaks down as follows.
Office, 25%
Warehouse/Distribution, 17%
Retail, 15%
Industrial, 15%
Self-storage, 13%
Other, 15%
For the nine months ended Sept. 30, the largest tenant base in the portfolio based on rent was as follows.
U-Haul Moving Partners Inc. and Mercury Partners LP, $ 24.3 million
Carrefour France, $15.3 million
Life Time Fitness, $13.7 million
OBI A.G., $13 million
Hellweg Die Profi-Baumarkte GmbH, $12 million
True Value Co., $10.84 million
The REIT is expected to have a total equity market capitalization of $3 billion, total market of $5 billion. W.P. Carey Inc. will continue to manage the firm's other Corporate Property Associates series of publicly held, non-traded REITs.
"This transaction will enhance our strength and flexibility, with a larger balance sheet and more diversified portfolio," said Trevor Bond, president and CEO of W.P. Carey. "Over the long-term, we believe it will allow us to capitalize on new opportunities that are consistent with our established investment parameters and our overall business strategy of growing assets under ownership and enhancing shareholder value."
Keep up weekly on national news, trends and property leads with the Watch List Newsletter, a weekly pdf that includes other news and leads not found on the CoStar Group web news pages.
Sign up for the Watch List E-Mail Alert. A new issue is published late each Wednesday
Advertisement:
Tranzon Auction Resolutions: 250-Unit Multifamily Lender REO
