ING Real Estate Finance the Netherlands (ING REF) closed a €70.5 million financing for one of its key clients, W.P. Carey Inc, a U.S. publicly traded REIT (NYSE:WPC). ING REF acted as joint arranger, facility agent and sole hedge counterparty in this transaction. Pricoa Mortgage Capital, the commercial mortgage lending business of U.S.-based Prudential Financial, is the new lender, joint arranger and security agent in the transaction.
The funding is provided for a seven year tenor, with modest amortizations. The transaction is fully hedged against interest rate increases with Pricoa Mortgage Capital providing a fixed rate loan alongside ING REF’s hedged loan.
W. P. Carey Inc. secured the €70.5 million funding on behalf of W.P. Carey’s publicly held non-traded REIT affiliate CPA®:17 – Global and itself. The transaction involved the refinancing of a sale and leaseback transaction of six distribution centers leased to Jumbo, which after the takeover of C1000 is currently the second largest food retailer in the Netherlands. The properties have been leased on a long-term basis, consistent with W.P. Carey’s investment criteria. Regarding the structure, principal, term and amortizations, the mortgage-backed financing of this sale and leaseback transaction was fully tailored to the criteria of the W.P. Carey funds.
With $14.1 billion (approx. €11 billion) in assets under management, W.P. Carey is a U.S. REIT specializing in build-to-suit and long-term triple-net sale and leaseback acquisitions. Its portfolio comprises more than 1,000 properties with nearly 300 tenants representing 30 industries located across 19 countries.
With this successful transaction for W.P. Carey, ING REF has proven its ability to service its global client base on a local level. Furthermore, ING REF has been involved in Pricoa Mortgage Capital’s first secured financing on Continental Europe and the two firms will seek future opportunities to work together. This arrangement evidences ING REF’s ability to incorporate non-bank funding for new projects or refinancing for its key clients.
Source: ING Real Estate