The city of Rotterdam in the Netherlands is now home to CPA®:18—Global’s most recent acquisition. The non-traded REIT, sponsored by W.P. Carey, purchased a single tenant office building and adjacent multitenant, 11-story high-rise tower for approximately $86 million (€69 million).
W. P. Carey Director, Ralph van der Beek, commented, “Through our network of European contacts, we were able to draw on our previous investing experience in the Netherlands as well as other parts of Europe to access this attractive investment opportunity.”
Located on the northern shore of the river Maas in Rotterdam, the 6-story, low-rise tower will be leased on a long-term basis to Royal Vopak. Royal Vopal is the world’s largest independent tank storage provider and stores and handles oil and natural gas related products. The low-rise tower of the acquisition was renovated in 2012 as Royal Vopak’s global headquarters.
Jason Fox, co-head of Global Investments of W. P. Carey, added, “This acquisition by CPA®:18 – Global marks the second major transaction by one of our managed REITs in the Netherlands this year. The investment further reinforces our role as a capital source for European companies, developers and investors looking to recycle capital into new investments. The long-term lease commitment, coupled with the inherent value of the asset itself, is representative of the criteria we look for when sourcing and structuring portfolio acquisitions.”
Through September 30, 2014 CPA®:18 – Global raised gross offering proceeds for its Class A common stock and Class C common stock of $977.4 million and $113.2 million, respectively. As of July 1, 2014, Class A shares have been closed to new investors.