CPA®:18 – Global Acquires a Club Med Managed Resort
W.P. Carey Inc. (NYSE: WPC), a global net-lease REIT and sponsor of non-traded REITs, announced that CPA®:18 – Global has purchased La Plantation d’Albion Club Med, located in Albion, a city on the island of Mauritius, which is off the east coast of Madagascar.
The 266-room resort hotel is triple net-leased to Holiday Village Management Services Ltd, a subsidiary of Club Mediterranee SA (Club Med) for 15 years. Club Med, known as a pioneer in all-inclusive resorts, is guaranteeing the lease.
“This transaction offered the opportunity for CPA®:18 – Global to acquire an internationally branded upscale beach resort in a leading tourism destination. The deal demonstrates our ability to access a wider pool of global investment opportunities that meet our established investment criteria in order to provide long-term value for CPA®:18 – Global’s investors. We are pleased to add to the global diversity of the CPA®:18 – Global portfolio with the acquisition of this solid cash flow generating asset with a triple net-lease structured to provide inflation-indexed returns,” commented Jason Fox, W. P. Carey Managing Director and Co-Head of Global Investments.
The resort, acquired for $72 million, contains 53.4 acres of natural tropical woodlands and is located on the northwestern coast of the island. Mauritius sits about 1,200 miles off the southeast coast of Africa.
Club Med focuses on an up-market strategy and the growing Asian tourism market.
Roger Hensman, Advisor to W. P. Carey on the transaction, added, “W. P. Carey’s global investing perspective and experience enabled them to recognize the value of this acquisition as an attractive addition to the CPA®:18 – Global portfolio. Given the quality of the asset and the strength of Club Med as an established resort owner and operator in combination with the triple net-lease structure, the opportunity was consistent with their established investing criteria.”
The REIT is currently offering Class C shares and through the end of Q3 2014, had raised about $1.1 billion in equity.
