WP Carey Buys $371 Million of Real Estate From AndalusiaSharon Smyth
The Spanish region of Andalusia agreed to sell properties to WP Carey Inc. for 300 million euros ($371 million) in a sale-and-leaseback deal.
The Andalusian regional government sold 70 buildings to a unit of New York-based WP Carey, according to a statement posted on its website today. Andalusia will rent the properties back for 23.6 million euros annually over a 20-year period.
Cash-strapped regional governments are raising money from the sale of public real estate as investors flock back to Spain after commercial- and residential-property prices dropped an average of 40 percent following the market’s crash in 2007. Since 2012, Catalonia has raised more than 532 million euros from the sale of 34 buildings in Barcelona, Spain’s second-largest city, according to the government’s website.
Investors spent 4.93 billion euros on commercial-property assets in Spain last year, more than double the 2.32 billion euros invested in 2012, as the economy came out of its second recession since 2008 and prospects of a euro-currency breakup faded. Brokerage CBRE Group Inc. estimated total investment in Spanish real estate of 9 billion euros this year.
CBRE advised the Andalusian regional government on the sale to WP Carey.