W. P. Carey & Co. LLC, the global investment management company specializing in corporate sale and leaseback and single-tenant construction financing, has announced that one of its publicly held non-traded REIT affiliates, CPA®:17 Global, will be providing a 20 million construction financing package for Nippon Sheet Glass Co., Ltd ('NSG Group').
The financing will deliver 100% of the funds needed for the development of a 35,000 m² warehouse facility located in Tarnobrzeg, Poland. The warehouse is being developed by Panattoni Europe; when completed it will be long-term, triple-net leased to a Polish subsidiary of NSG Group. The facility is located adjacent to NSG Group's 80 million investment in a new glass processing plant, which is currently under construction.
NSG Group, one of the three largest glass companies in the world, has been operating in Poland since 1993. In the Automotive sector, its main focus is the production of glazing for cars and trucks. The new glass processing plant will be the second production site for the company's automotive operations in Poland and is expected to more than double the size of the company's production volume in Poland.
Jeffrey Lefleur, Managing Director of W. P. Carey, said: "In the current global financing markets, particularly in emerging markets, the ability of corporations and developers to obtain construction financing remains challenging. Our ability to fund 100% of the capital needed to complete the development of new facilities highlights how we can provide alternative financing solutions for developers and their corporate clients. Having worked successfully with Panattoni on past projects in the US and Europe, we are pleased to be working with them again on this transaction."
Robert Dobrzycki, Managing Partner of Panattoni Europe, commented: "We chose to work with W. P. Carey again because we knew we had a reliable funding source that would allow us to focus on the needs and timing of the project, and avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part during the construction period."
Mark Lyons, Chief Financial Officer of NSG Group, said: "The completion of this warehouse is critical to the success of our overall investment in the new Polish plant. We are confident in our selection of Panattoni to deliver the project to us in a timely manner, as well as of W. P. Carey to reliably fund construction and remain the long-term landlord of this strategic operating asset."
Source: Pelham Bell Pottinger