WP Carey Inc has acquired a mission-critical portfolio of 14 logistics assets and one corporate headquarters totalling 184,582m² for approximately €161.4m ($188m). The portfolio is triple-net leased to Danske Fragtmænd A/S, the market-leading Danish freight carrier. The acquisition was advised by EDC Erhverv Poul Erik Bech in an off-market transaction that allowed the seller to efficiently identify a qualified buyer and negotiate the transaction without marketing publicly. This deal marks W. P. Carey’s first investment in Denmark and complements the firm’s existing Nordic portfolio.
The portfolio represents approximately 90% of Danske Fragtmænd’s logistics footprint and consists of five regional distribution hubs, nine last-mile distribution facilities and its corporate headquarters. The assets cover Denmark’s main urban centres outside of Copenhagen, including key regional sites in Aarhus, Odense and Taulov. Approximately 80% of the portfolio’s annual base rent is located in the top seven metropolitan areas of Denmark.
Arvi A. I. Luoma, Head of European Investments, W. P. Carey, said: "Denmark’s industrial real estate market is acutely under-supplied, so acquiring a high-quality logistics portfolio leased to one of the country’s top logistics companies was a rare and compelling opportunity. Recognized as a well-capitalized and efficient all-equity purchaser of long-term leased high-quality assets, we have a history of providing capital to institutional investors seeking to refocus their portfolios. This transaction demonstrates how we can move quickly to execute on acquisitions that meet our investment criteria and, in particular, our appetite for mission-critical real estate.”
Gino Sabatini, Head of Investments, W. P. Carey, said: "Our 20-year track record of net lease investing in Europe positioned us to secure the Danske Fragtmænd portfolio in an off-market transaction. Our European investments are an important component of the diversification of W. P. Carey’s net lease portfolio, and this latest transaction reflects our continued ability to invest in Europe and identify long-term partners that are defined by the quality of their assets and operations.”
Jorn P. Skov, Chief Executive Officer, Danske Fragtmænd, said: “We are pleased to have W. P. Carey as our new landlord and long-term partner. We look forward to working together in the future as Danske Fragtmænd seeks to expand its market share across Denmark.”
Helle N. Ziersen, Senior Client Director, EDC Erhverv Poul Erik Bech, said: “It has been a great process finding this off-market commercial real estate portfolio for W. P. Carey, and helping them enter the Danish real estate investment market. We thank all parties for a professional process and it has been a pleasure working together with Arvi Luoma and his colleagues. We look forward to working with W. P. Carey in the future, finding more real estate investments.”