W. P. Carey Shops in the Netherlands
- Aug 06, 2015
By Barbra Murray, Contributing Editor
W. P. Carey Inc. maintains an active pace in Europe as CPA:18 – Global, one of its managed non-traded REITs, snaps up the Jacobsweerd office building in Utrecht, Netherlands. CPA:18 acquired the 154,900-square-foot tower from PingProperties for $52 million.
High quality, good location, desirable tenancy–Jacobsweerd ticks all the boxes. Comprehensively renovated in 2002 and upgraded further just last year, the 28-year-old building is a Class A asset in the heart of the Netherlands within Utrecht’s teeming CBD. As for the tenancy, nothing says creditworthy like a stable government, and Jacobsweerd has four such tenants under leases guaranteed by the Government of the Kingdom of the Netherlands.
It’s a good time to buy in Europe, and U.S. investors are taking note. “In Europe, investment conditions have remained more favorable given higher cap rates and lower debt costs than in the U.S.; however, competition for deals in Europe has continued to pick-up through a combination of U.S. capital flowing into the region and European investors continuing to come off the sidelines,” Jason Fox, president & head of global investments with W. P. Carey, told Commercial Property Executive.
CPA:18 has been quite busy in the region over the last few months. In May, the REIT agreed to supply $85 million for the completion of a 290-key hotel in Munich, Germany, and acquired a multi-tenant retail site in Oslo, Norway, for approximately $105 million. And July brought a return to Germany with the commitment of $29 million for the development of a 207-room Hotel in Hamburg.