CPA: 18 – Global, a publicly registered non-traded real estate investment trust sponsored by W. P. Carey (NYSE: WPC), acquired the Jacobsweerd office building in Utrecht, Netherlands from Dutch asset and investment manager PingProperties. The purchase price was $52 million (€47.6 million).
Jacobsweerd is located in the central business district of Utrecht, the fourth largest city in the Netherlands, and is within close proximity to the largest and busiest train station in the country, as well as the Schiphol International Airport. The six-story, 154,900 square-foot office building was constructed in 1987 and was completely renovated in 2002, with additional work carried out in 2011 and 2014. The facility meets all of the latest environmental standards, with the majority having an energy performance rating of “A” and the remainder being classified “B.” The building contains 203 underground parking spaces.
The property is currently leased to four Dutch Government agencies—the Dutch Governmental Real Estate Department, the Dutch Chamber of Commerce, the Bureau for Information on Labor and Income and the Information Bureau. The leases are guaranteed by the Government of the Kingdom of the Netherlands, which is rated Aaa Stable by Moody’s, AAA Stable by Fitch and AA+ Positive by S&P.
The average lease term remaining for the four government tenants is 7.7 years, which compares well to the standard five-year term that is customary in the Netherlands. All four tenants have CPI-indexed annual rent escalations.
Jason Fox, W. P. Carey’s president and head of global investments, commented: “This transaction offered the opportunity for CPA®:18 – Global to secure another high-quality asset in the Netherlands. This investment reinforces our role as a capital source for European companies, developers and investors looking to recycle capital into new investments, underlining the strength of our capabilities in the European property market.”
W. P. Carey Inc., is a global net lease real estate investment trust specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net lease properties.