W. P. Carey to Develop Build-to-Suit Office Facility in Germany for $65M
- Dec 06, 2013
W.P. Carey has expanded its presence in Europe for the second time in a month. The REIT just announced a build-to-suit contract for a new office property to be occupied by Banco Santander S.A. in Monchengladbach, Germany. The Class A building will cost $65 million to develop and, upon completion, will be occupied by the international bank under a long-term leaseback agreement.
“As a 20-year net lease to one of the world’s leading banks for one of their core German assets, the investment is consistent with our strategy of growing our global portfolio with quality assets leased to solid companies,” Jennifer Lucas, director of W. P. Carey Europe, told Commercial Property Executive.
The powers that be at W. P. Carey and Santander aren’t the only ones who think the project is a solid endeavor; lenders concur. The REIT has already secured full construction financing and lined up permanent financing with interest rates locked in at the current favorable levels.
Santander’s new office building, which will allow the bank to consolidate under one roof 1,500 employees from several locations around Monchengladbach, is scheduled to reach completion in 2015.
International assets play a very big role in W. P. Carey’s portfolio, accounting for 31.6 percent of the REIT’s total contractual rent income as of the close of the third quarter this year. Approximately 10.8 percent of that income comes from properties in Germany. That figure is already up for the final quarter of 2013, as the company acquired Adler Modemarkte’s office headquarters, along with its flagship clothing store, in Haibach, Germany in November for $29 million.