W. P. Carey Finances Construction of Wartsila’s R&D, Training Complex in Netherlands
- Apr 16, 2014
W. P. Carey Inc. has financed a $19 million build-to-suit transaction on behalf of one of its non-traded REIT affiliates, CPA®:17 – Global (or Corporate Property Associates 17 – Global Inc.).
Under the agreement, W. P. Carey will finance the construction of a two-building complex in the Netherlands for the global industrial company Wartsila. The development will be located in Drunen, in the southern part of the country.
Comprised of an office building and a training facility, the complex will include the new global R&D center for Wartsila’s Ship Power division, as well the company’s new technical training center for the Netherlands, the Land & Sea Academy. Wartsila will lease the properties on a long-term, net-lease basis.
W. P. Carey’s partner for the project is M7 Group, a local Dutch developer. Construction is expected to begin shortly and be complete in about a year.
“Wartsila is a global leader in its field and we are pleased to be working with them and the developer M7 to deliver this important facility. Upon its completion, the facility will be a mission-critical asset that is a key part of Wartsila’s long-term R&D platform. This deal demonstrates our ability to provide financing solutions to leading corporations and developers who wish to build new facilities without tying up their equity capital. While the Netherlands remains a challenging country for financing new property development, we’re very excited to continue our investments in Dutch built-to-suit projects,” Jeffrey Lefleur, managing director of W. P. Carey, said in a news release.
“We chose to work with W. P. Carey because of their ability to commit financing for 100 percent of the project cost, as well as their experience as a proven and reliable investor in the Dutch market,” M7 Group added.
The new development is in line with Wartsila’s plan to reduce its manufacturing footprint in the Netherlands and increase its focus on R&D and services.
With $6 billion (€4.6 billion) in annual revenues, the company is a global leader in industrial engines and power plant systems. It is publically-listed on the NASDAQ OMX, with an equity market capitalization of nearly$11 billion (€8 billion).