W. P. Carey has acquired a central logistics facility near Lisbon, Portugal, totalling 50,000m² for approximately €43m. The distribution centre is subject to an existing triple-net lease with Sonae MC, Portugal’s leading food retailer. The asset is located in the Azambuja logistics park, Portugal’s prime logistics hub. The facility is Sonae MC’s central distribution facility and is its only warehouse in the Azambuja region with cold storage for perishable food products.
The property is subject to an existing triple-net lease with built-in annual rent escalations tied to Euro Area CPI and a remaining term of more than ten years. It is situated on a large parcel of land with substantial building rights, providing potential future expansion opportunities.
Arvi A. I. Luoma, Head of European Investments, W. P. Carey, said: “Logistics remains a sought-after asset class across Europe, which has demonstrated attractive liquidity and growth trends. Our acquisition of a mission-critical facility in a prime logistics location in Portugal was a rare and attractive opportunity in a market with relative undersupply. The investment further diversifies our portfolio with a strong market-leading tenant in a highly defensive industry largely insulated from e-commerce disruption. W. P. Carey’s more than 20 years of experience investing in Europe, together with efficient underwriting and execution by our in-house acquisitions team, enabled us to complete this off-market transaction quickly, securing stability for the tenant and providing additional long-term value to our investors.”