Home Alts News CPA:18 Shareholders Approve Merger with W. P. Carey

CPA:18 Shareholders Approve Merger with W. P. Carey

Shareholders of Corporate Property Associates 18 – Global Incorporated, a publicly registered non-traded real estate investment trust, approved the company's merger with its advisor, W. P. Carey Inc.

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Shareholders of Corporate Property Associates 18 – Global Incorporated, a publicly registered non-traded real estate investment trust, approved the company’s merger with its advisor, W. P. Carey Inc. (NYSE: WPC), a publicly traded REIT, in a transaction valued at approximately $2.7 billion. The transaction is expected to close on August 1, 2022.

W. P. Carey is the second largest net lease REIT and will have a pro forma equity market capitalization of $15.8 billion.

At a special meeting of stockholders held on July 26, 2022, approximately 74.6 million shares voted in favor of the merger, 1.2 million voted against, and 3.3 million abstained.

CPA:18 stockholders will receive total merger consideration of 0.0978 shares of W. P. Carey common stock and $3.00 of cash for each share of CPA:18 Class A and Class C common stock they own. CPA:18’s most recent net asset value per share was $9.07, as of September 30, 2021.

The W. P. Carey shares that will be issued in the merger will be listed on the New York Stock Exchange at the time of issuance.

On Monday, shares of WPC closed at $83.72, down $0.27 or 0.32 percent from the previous close.

Corporate Property Associates 18 – Global invests in commercial real estate properties leased to companies domestically and internationally in addition to self-storage and student housing assets.

As of March 31, 2022, the REIT’s net lease portfolio was comprised of full or partial ownership interests in 52 properties, substantially all of which were fully occupied and triple-net leased to 47 tenants totaling 10.4 million square feet. The remainder of the portfolio was comprised of full or partial ownership interests in 65 self-storage properties, three student housing development projects and one student housing operating property, totaling approximately 5.1 million square feet.

CPA:18 – Global’s offering was declared effective in May 2013 and closed in April 2015 after raising $1.2 billion in investor equity. As of the first quarter of 2022, the REIT had investments in real estate of $2.4 billion.

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