W.P. Carey Affiliates Pay $158M for Polish Bank HQ
- Apr 10, 2014
Global net-lease real estate investment trust W.P. Carey Inc. has announced that CPA®:17 – Global and CPA®:18 – Global, two of its publicly held non-traded REIT affiliates, have jointly purchased the headquarters of Poland’s second largest bank, paying $158 million (€115 million), for the asset. The purchase was closed on all-equity basis, ensuring a swift and low-risk process. CA Immo, Austria’s second largest property investor, was the seller.
“The acquisition demonstrated our ability to provide a well-known institutional investor like CA Immo with a reliable, all-equity buyer and a fast and efficient closing process,” said W. P. Carey managing director Jeffrey Lefleur. “This transaction fits well with our strategy of acquiring critical assets with strong covenants in thriving, well-connected locations. It also reinforces our position as an active investor in European properties that benefit from in-place, long term net leases.”
Located in Warsaw, Poland, the Class A office building is the headquarters of Bank Pekao S.A. Publicly traded on the Warsaw Stock Exchange with an equity market capitalization of nearly $17 billion (€12 billion), Pekao is rated “BBB+ / Stable” by S&P. The banking powerhouse holds a long-term net-lease on the asset, which houses 2,000 workers. Located in Warsaw’ Airport Corridor, the office building provides seamless access to both Warsaw Chopin Airport and the city center. The property was built in 2009 by Hochtief, the parent company of The Turner Corp. and Flatiron Construction Corp.
Poland, the largest economy in Central Eastern Europe barring Russia, has experienced a healthy, reliable level of growth in the past decade, with an average real GDP growth of 4 percent since 2004. By comparison, Germany experienced a 1.3 percent GDP growth over the same period. “During the prolonged financial crisis that affected most of Western Europe, it is remarkable that Poland’s growth rate remained positive,” Jeffrey Lefleur added.
CPA®:18’s latest acquisition, involved the $90 million purchase of the new Siemens headquarters in Oslo, Norway. CPA®:18 picked up the 1.1 million square-foot facility from developer Oslo Business Park AS in late February 2014. CPA®:17’s most recent acquisition was the 897,000-square-foot H&M distribution center in Poznan, Poland. The W.P. Carey affiliate purchased the facility from Invesco Real Estate in July 2013, paying $85 million.
W. P. Carey Inc. is a global net-lease REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling over $15 billion.