P. Carey Inc. has completed the sale of its largest office portfolio consisting of 70 office properties to the State of Andalusia for around €326.7m. As of December 31, 2023, the Andalusia portfolio generated an annualized base rent of c. €28.2m and an estimated net operating income of c. €26.4m.
This sale is a part of the company's strategic plan to exit office assets in its portfolio. Under this plan, the company has already completed the spin-off of Net Lease Office Properties in November 2023 and is currently in the process of an asset sale program to dispose of certain office properties retained by W. P. Carey.
Jason Fox, Chief Executive Officer of W. P. Carey, said: "The sale of our largest office asset, along with the progress we've made to date executing on our strategic plan to exit office, has reduced our office exposure to less than 3% of our total ABR. We expect that number to further decline over the near term as we complete the remaining sales under the Office Sale Program, at which point over 60% of our ABR will come from industrial and warehouse assets, on a portfolio that remains well diversified with a weighted-average lease term over 11 years and rent growth that we believe will be among the strongest in the net lease sector."
