Monday, 20 April 2015
W. P. Carey Inc. acquires €23.4 mln retail facility net leased to Hornbach (AT)
W. P. Carey Inc., a real estate investment trust (REIT) specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net lease properties, announces that it has acquired a retail hypermarket and garden center in Bad Fischau, Austria for €23.4 mln. The property was acquired from UK developer Richardson Capital and is net leased to the Austrian subsidiary of German Do-It-Yourself (DIY) retailer, Hornbach Baumarkt AG.
Hornbach is Europe’s fifth-largest DIY retailer, operating 143 stores and garden centers across nine countries. A publicly traded company with an equity market capitalization of approximately €1.04 bln, Hornbach has an excellent track record of growth and profitability.
It is located roughly 48 km south of Vienna and sits on the A2 Autobahn, the major highway that runs south from Vienna to the boarder of Italy. Hornbach recently renewed its lease for the full term, underscoring the long-term importance of the facility to its Austrian business. The facility will be net leased for a 15-year term with annual CPI-based rent escalations.
Jeffrey Lefleur, Managing Director of W. P. Carey, said: “We are pleased to announce our first transaction in the Austrian property market, further demonstrating W. P. Carey’s ability to evaluate and enter new markets. With Hornbach as a quality tenant, the length of the net lease and the annual inflation escalation, the investment is consistent with our investment criteria and furthers our diversification strategy.”
Source: Bell Pottinger