Sponsor of non-traded REITs W.P. Carey Inc. acquired a portfolio of auto dealerships in the UK for $355 million. The 73-property portfolio is triple-net leased with annual rent escalations to Pendragon, the largest automotive dealer in the UK.
“We are delighted to have completed this transaction—our largest in the UK to date—with a landmark tenant in an exciting growing sector. Given the long lease terms and the diversity of the properties acquired, we believe the Pendragon auto dealership portfolio is a strong addition to the W. P. Carey Inc. portfolio,” commented Jennifer Lucas, Executive Director of W. P. Carey.
Pendragon sells new and used vehicles through its retail outlets from 26 different brands including the UK’s 20 bestselling car models and others like Range Rover, BMW, Aston Martin, Ferrari, and Mercedes. The auto group has 225 franchise locations throughout the UK.
W.P. Carey Inc.’s purchase represents about one-third of Pendragon’s UK locations and is diversified across key locations.
“It is reassuring to have, in W. P. Carey, a long-term investor for a portfolio of our dealerships in the UK and we look forward to working together with them,” said Trevor Finn, Chief Executive of Pendragon in a statement.