W. P. Carey Inc. (NYSE: WPC), a real estate investment trust specialising in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties, announced today that it has entered into a €44.3 mln (£32.5 mln) sale-leaseback transaction, excluding acquisition costs, for a Class A office building in Sunderland, England. The facility will be net leased to a wholly-owned subsidiary of British energy company RWE npower, which is 100% owned by German utility company RWE AG.
Key Facts
- Established guarantor and parent companies: The lease will be guaranteed by RWE npower, one of the UK's leading energy companies. Its parent company, RWE AG, is one of Europe's leading electricity and gas providers and has investment grade ratings from both Standard & Poor's and Moody's.
- Critical, well-located office building: Four offices have been consolidated into the facility, which houses approximately one-quarter of the tenant's workforce. Located between the cities of Durham, Newcastle and Sunderland, more than 1.3 million people live within a 30-minute commute.
- High quality facility with potential for expansion: The Class A office space was completed six years ago to meet the latest environmental standards. The tenant has obtained planning permission for a neighbouring plot, allowing for potential future expansion.
- Long-term net lease with built-in rental growth: The facility is triple-net leased for a 10-year term and includes rent escalation in the fifth year based on the UK Retail Price Index with annual compounding.
Source: W.P. Carey
