On behalf of its non-traded REIT, CPA®:17 – Global, W.P. Carey announced today a build-to-suit transaction valued at $18.7 million (€13.6 million). The money will be used to finance 100% of the construction costs for a new facility in Drunen, Netherlands, which will be leased by Wartsila, a global leader in industrial engines and power plant systems.
Wartsila has $6.3 billion in annual revenues and is listed on the NASDAQ OMX with almost $11 billion of an equity market capitalization.
W.P. Carey will be working with Dutch developer, M7 Group to shortly begin constructing the facility. Once it is completed, it will be leased to Wartsila on a long term net-lease. Consisting of an office building and a training building, the facility will be the new global R&D center for Wartsila’s Ship Power division, and its new Land & Sea Academy for the Netherlands.
Jeffrey Lefleur, Managing Director of W. P. Carey, commented, “Wartsila is a global leader in its field and we are pleased to be working with them and the developer, M7, to deliver this important facility. Upon its completion, the facility will be a mission-critical asset that is a key part of Wartsila’s long-term R&D platform. This deal demonstrates our ability to provide financing solutions to leading corporations and developers who wish to build new facilities without tying up their equity capital.”
CPA®:17 – Global was formed to create a portfolio of income producing commercial properties and real estate-related assets. The REIT closed to new investors in December 2012.
As of September 30, 2013, its portfolio was comprised of full or partial ownership interests in 343 properties, substantially all of which were net-leased to 88 tenants, and totaled about 33 million square feet. Its portfolio was also comprised of full or partial ownership interests in 69 self-storage, three hotel properties, and one shopping center for a total of approximately 6 million square feet.