Public, non-traded real estate investment trust CPA®:18 – Global recently acquired a multi-tenant retail property in Oslo, Norway for about $105 million through a joint venture with Winta Eindom AS, a local developer.
“This transaction offered the opportunity for CPA®:18 – Global to secure a high-quality retail asset in a prime Oslo location. Given the city’s path of development and the strength of the existing tenancy at the site, we believe the investment offers attractive current cash flow as well as the opportunity for potential future development,” commented Jason Fox, W. P. Carey Managing Director and Head of Global Investments.
Coop Norge AS, the seller in the sale-leaseback transaction, is the second largest grocery retailer and leading do-it-yourself retailer in Norway.
Fox added, “The deal also provided funding for Coop Norge, allowing them to access the current value of their real estate holdings as a means of funding growth and expansion opportunities. We are delighted to expand CPA®:18 – Global’s Norwegian holdings—which include the Siemens headquarters in Oslo and the Apply AS headquarters in Stavanger—with another high-quality asset.”
The property includes 253,350 square feet of retail space, 46,800 square feet of basement / warehouse space, and 35,575 square feet of mezzanine office space. COOP provides 64 percent of the property’s annual rent while two other tenants, the second largest consumer electronics retailer and a leading lighting retailer, account for 23 percent of the annual rental income. These leases have a weighted average remaining lease term of eight years.
CPA®:18 – Global’s public offering is closed.