W. P. Carey Inc. announced that it has acquired a portfolio of 73 automotive retail facilities located throughout the UK, net leased to Pendragon plc for a gross purchase price, including fees, of £230.5 million (€308 million).
Pendragon is the largest automotive retailer in the UK with 225 franchise locations spread across the country. The group sells a range of new and used vehicles through its retail outlets, including light motor vehicles, luxury vehicles, commercial vans and trucks.
The 73-property, approx. 1.6 million ft² (14,864 m²) portfolio represents almost one-third of Pendragon's UK dealership footprint and is widely spread across the UK in key locations, providing a nationwide offering of franchisees.
The triple-net lease portfolio has a weighted average lease term of 15 years and includes annual inflation-based rent escalation.
Jennifer Lucas, Executive Director of W. P. Carey, commented: "We are delighted to have completed this transaction, our largest in the UK to date, with a landmark tenant in an exciting growing sector. Given the long lease terms and the diversity of the properties acquired, we believe the Pendragon auto dealership portfolio is a strong addition to the W. P. Carey Inc. portfolio."
Trevor Finn, Chief Executive, Pendragon, added: "It is reassuring to have, in W. P. Carey, a long-term investor for a portfolio of our dealerships in the UK and we look forward to working together with them."
Source: W. P. Carey