The Spanish State of Andalusia has awarded W.P. Carey, a global net-lease REIT, the chance to purchase a portfolio of office buildings.
The State of Andalusia is an autonomous community in southern Spain and is rated BBB- by Standard & Poor’s and Ba+ by Moody’s.
The portfolio includes 70 office buildings in the capital and major cities of Andalusia, totaling approximately 2.8 million square feet. The offices house a variety of state government departments and agencies, such as State Employment Agency, Departments of Agriculture, Health, Education, Taxation, Trade & Tourism, Social Work and Environmental Control. In addition, many of the facilities offer cultural and social services, as well as government administration.
The transaction is valued at approximately $327 million (300 million EUR) and the properties would be leased back to the State of Andalusia for a 20-year term.
Jeffrey Lefleur, Managing Director of W. P. Carey Inc., commented, “The transaction with the State of Andalusia represents the opportunity to secure a long-term-leased portfolio of diverse assets at an attractive yield. Our experience in the European market, as well as our ability to close and fund the acquisition on a timely basis, were critical factors in our selection as the purchaser by the government of the State of Andalusia. We look forward to closing the transaction and adding these assets to the W. P. Carey Inc. portfolio.”