CPA®:17 – Global, one of W.P. Carey’s managed non-traded REITs, has completed the sale-leaseback of an office/R&D facility in Krakow, Poland. The property is home to Nokia Solutions and Networks (NSN), which is a subsidiary of Nokia Corporation, a leader in global communications.
Acquired for approximately $13 million (€9.7 million), the facility contains 53,377 square feet and was constructed in 2003.
Jeffrey Lefleur, Managing Director of W. P. Carey, commented, “Nokia remains one of the world’s leading telecom infrastructure providers. The acquired facility is an important asset to Nokia Solutions and Networks Polish operations. This transaction highlights W. P. Carey’s ability to structure deals worldwide, providing long-term financing for leading global businesses.”
The property has a 10-year triple-net lease and accommodates 300 engineers, computer technicians, and researchers that work in Nokia’s network and telecom infrastructure sector, which is the company’s core business since it sold its mobile phone division to Microsoft. Being located in Krakow, the facility counts offices and R&D centers of Google, IBM, GE, and Hitachi among its neighbors in what is nicknamed “Eastern Europe’s Silicon Valley.”
Mr. Lefleur added, “Poland is the second largest economy in Central Eastern Europe with projected GDP growth and a healthy and liquid banking industry. These metrics, along with the strength of the Nokia tenancy and positive outlook for the Krakow office market, enhanced the attraction of this acquisition as a solid addition to CPA®:17 – Global’s portfolio.”
CPA®:17 – Global was formed in 2007 and focuses on acquiring commercial property that it leases to companies domestically and internationally. The REIT’s portfolio consists of 108 tenants in 10 countries and over 20 industries. It closed to new investors in December 2012.