W. P. Carey Inc. Acquires $48 Million Smuckers Chicago Distribution Facility
Class-A distribution facility adds solid income-generating asset to portfolio
NEW YORK, June 5, 2014
NEW YORK, June 5, 2014 /PRNewswire/ --W. P. Carey Inc. (NYSE: WPC), a global
net-lease REIT 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, from Exeter
Property Group, a 824,624 square foot distribution facility for a total
acquisition price of approximately $48 million. The facility is located in
University Park, Illinois outside of Chicago and is leased to a subsidiary of
The J.M. Smucker Company (NYSE: SJM) ("Smuckers") for a period of 9.5 years.
oHigh credit parent: The tenant is a subsidiary of Smuckers, a market
leader in consumer staples such as packaged coffee, fruit spreads and
peanut butter. Smuckers is rated A3 and BBB+ by Moody's and Standard &
Poor's, respectively, and has a market capitalization of approximately
oCritical facility: The original 575,024 square foot facility was built in
2008. In 2013, Exeter expanded the facility by 249,600 square feet to
facilitate the distribution of coffee under the Folgers brand, which
Smuckers acquired in 2008. The facility is one of only six distribution
centers operated by Smuckers in the U.S. and is utilized for each of its
diverse range of products.
oWell-located Class-A distribution center: The modern, easily-devisable
Class-A distribution center with 32-foot clear height is located in
Chicago's solid South Suburban submarket.
W. P. Carey Managing Director and Co-Head of Global Investments, Gino
Sabatini: "This investment represented an opportunity to acquire a new Class-A
logistics facility that serves as a primary distribution center for all of
Smuckers' varied products. In addition, the transaction demonstrates W. P.
Carey's ability to work with a variety of sellers, including those whose
investment time frame is shorter and who are predominantly IRR-focused.
Because our strategy is to generate income and cash flow over the longer term,
we are an attractive source of liquidity to owners, developers and investors
with shorter term investment horizons, as was the case with the Exeter
Commenting on the submarket where the facility is located, Mr. Sabatini added,
"Chicago's South Suburban submarket—which includes 71 million square feet of
industrial warehouse space and has a general vacancy rate of 10.8 percent—has
a diverse inventory of big-box distribution and manufacturing facilities and
has seen a steady increase in activity as the market as a whole continues to
Exeter CEO, Ward Fitzgerald, added, "We are thrilled to consummate this
win-win transaction for Exeter and W. P. Carey. We acquired the property in a
non-stabilized condition and utilized Exeter's development and leasing skills
to add value and high investment performance to Exeter's institutional
partners, and are pleased to have made an outstanding asset available to a
high quality organization like W. P. Carey."
W. P. Carey Inc.
W. P. Carey Inc. is a leading global net-lease REIT that provides long-term
sale-leaseback and build-to-suit financing solutions for companies worldwide.
At March 31, 2014, the Company had an enterprise value of approximately $9.5
billion. In addition to its owned portfolio of diversified global real estate,
W. P. Carey manages a series of non-traded REITs with assets under management
of approximately $7.3 billion. Its corporate finance-focused credit and real
estate underwriting process is a constant that has been successfully leveraged
across a wide variety of industries and property types. Furthermore, its
portfolio of long-term leases with creditworthy tenants has an established
history of generating stable cash flows, enabling it to deliver consistent
dividend income to investors for over four decades. www.wpcarey.com
Exeter Property Group
Exeter Property Group is a leading industrial/logistics property specialist
and investment management organization. As a hands-on real estate operator,
the firm executes its investment sourcing and property renovation, leasing and
asset management activities from ten regional offices.Exeter manages 2.3
billion equity AUM and over 70 million square feet of warehouses through its
value-add commingled funds, core separate accounts and direct investment
vehicles on behalf of world-class institutionalinvestors including public and
private pensions, sovereign wealth funds, endowments, foundations, fund of
funds and insurance companies.
This press release contains forward-looking statements within the meaning of
the Federal securities laws. The statements of Mr. Sabatini 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 office and industrial
properties; interest rate levels; the availability of financing; 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's, reference is made to its filings with the Securities and Exchange
W. P. Carey Inc.
Ross & Lawrence
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SOURCE W. P. Carey Inc.
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