W. P. Carey Inc. Completes $114 Million Acquisition of Total's Norwegian
Net lease investment in French energy giant's Norwegian HQ adds to global
NEW YORK, Aug. 7, 2014
NEW YORK, Aug. 7, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global
net lease REIT specializing in corporate sale-leaseback, build-to-suit
financing and the acquisition of single-tenant net lease properties, announced
today that it has acquired the headquarters of Total E&P Norge AS (Total
Norway) in Stavanger, Norway, for approximately $114 million (NOK 716 million)
after tax adjustments and transaction costs. The seller was Norwegian real
estate investment company and developer, Norwegian Property ASA (NPRO).
W. P. Carey Inc. completes acquisition of Total E&P Norge AS’s Norwegian
headquarters. The facility is located in Stavanger, Norway and was acquired
for approximately $114 million after tax adjustments and transaction costs.
oStrong credit tenant: Total Norway is the wholly-owned Norwegian operating
subsidiary of French oil and gas supermajor Total SA. The company is
involved in the exploration and production of oil and gas on the Norwegian
Continental Shelf and contributes approximately 10% of Total Group's
global oil and gas production. In 2013, Total Norway generated revenues of
$7.5 billion (NOK 45 billion) and net income of $1.1 billion (NOK 6.8
billion). Total SA is rated AA-/Stable (Standard & Poor's).
oCritical asset: Total Norway has been headquartered at this facility since
its construction in 1975 and has completed several refurbishment
initiatives and expansions of the property throughout the years. Total
Norway has shown its ongoing commitment to the facility by signing a
17-year lease extension upon completion of its most recent expansion in
oStrategic location: Stavanger is considered the oil capital of Europe and
the center for North Sea oil exploration. The facility is strategically
located adjacent to the established Dusavik supply port, the first and one
of only two supply ports in Stavanger catering to the North Sea oil
oStrong market: An estimated56% of Norway's oil and gas reserves remain on
the Norwegian Continental Shelf; as such, the petroleum industry will be a
core part of Norway's economy for the foreseeable future. Norway is rated
Aaa (Moody's) and AAA (Standard & Poor's) and maintains one of the world's
largest sovereign wealth funds totaling approximately $1 trillion (NOK 6.3
Arvi Luoma, Director of W. P. Carey, commented:
"The acquisition of Total Norway's headquarters marks our second high profile
transaction in Norway this year, followingCPA®:18 -- Global's purchase
ofSiemens' new Norwegian headquarters in Oslo."
"In line with our investment strategy, we have acquired a mission critical
asset with a long-term commitment from Total Norway, underscored by Total
Norway's significant contribution to the Total Group's global oil and gas
production. The importance of the oil and gas industry to Norway, in
conjunction with Total SA's position as an oil supermajor and a highly rated
creditor, further enhances the strength of this addition to W. P. Carey's
global net lease portfolio. Additionally, we were pleased to be able to
provide liquidity to NPRO, enabling them to execute on other investment and
Olav Line, Chief Executive Officer of NPRO, noted:
"We are delighted to complete this transaction with W. P. Carey. Asset
rotation is a key part of our strategy and the sale of this significant asset
provides us capital that we can redeploy in other opportunities. W. P.
Carey's financial strength, global expertise and their ability to work with us
in Norway as well as their recognition of the value of the long-term lease
with Total Norway made them an ideal counterparty in this transaction."
W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of
the Federal securities laws. The statements of Mr. Luoma 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, reference is made to its filings with the Securities and Exchange
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