W. P. Carey announced today that it has entered into a build-to-suit transaction for a new office facility for Banco Santander S.A. in Mönchengladbach, Germany. Santander is one of the world’s leading banks and the largest in the Eurozone. It has 14,500 branches worldwide and 103 million customers. Santander’s new Mönchengladbach facility will help the bank to develop its growing operations in Germany.
Located in the Nordpark area of Mönchengladbach, a growing business park with excellent transport connections, the facility–together with its existing headquarters–will act as one of Santander’s primary business locations in Germany. The facility brings together 1,500 personnel from various locations across Mönchengladbach to a single building.
W. P. Carey has obtained financing for 100% of construction costs during the construction period and secured a commitment for permanent financing with interest rates locked in at current levels. The permanent financing will fund upon completion of construction. The construction costs are approximately €48 million.
Jennifer Lucas, Director of W. P. Carey in Europe, said, “This acquisition is a strategic addition to our portfolio: a long-term, triple net lease with an investment grade tenant for a key facility located within the strongest economy in Europe.” Upon completion in 2015, the Class-A office building will be let to Santander on a 20-year triple net basis.
Source: W.P. Carey