W. P. Carey Closes $58M in German Acquisitions

W. P. Carey & Co. has acquired a pair of German properties in Soest and Bad Wünnenberg from Arques Industries for approximately $58 million. Two of Carey’s publicly held non-traded REIT affiliates,CPA:16 – Global and CPA:17 – Global, purchased the properties, which have been leased back to portfolio company Actebis under a triple net long-term lease. The Soest facility serves as Actebis’ global headquarters and the Bad Wünnenberg property serves as a logistics facility for the company. “We’ve done about a half-billion Euros in Germany in the last few years. We’re familiar with the market,” Jeffrey Lefleur, executive director of W. P. Carey & Co., told CPN today. “It is a good place to perform long-term sale-leaseback financing for companies looking to grow their businesses.” “We are seeing demand in Western Europe, when lenders are shying back from lending,” Lefleur (pictured) added. “We’re seeing similar credit crises in Europe, not as drastic as here in the U.S., but certainly the enthusiasm of European lenders has been significantly reduced as a result of the U.S. credit crisis. That provides us with an opportunity to step in with credit financing.” Lefleur said this deal was initially attractive because of the opportunity to work with private equity firm Actebis. “If we can extend a relationship with them, it is always a good opportunity for us to work with them in the future with their portfolio companies,” he said. “The second thing we liked is that we have traditionally been a buyer of more industrial properties in Germany and this was a good opportunity to pick up a good office property and a very modern logistics property.” On June 16, the company announced plans to open a second European office in Amsterdam to establish a base there for the management of its growing European property portfolio. Actebis is Europe’s third largest wholesale distributor of IT goods and services. Actebis sells 84,000 different products, predominantly personal computers and computer devices to businesses and corporations throughout Europe. W. P. Carey & Co. provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio worth more than $10 billion, with assets under management in Europe approaching $3 billion.