W.P. Carey’s CPA®:17 – Global and CPA®:18 – Global both made significant acquisitions recently. Both REITs are focused on commercial properties and real estate-related assets.
CPA®:17 – Global acquired an office tower located in downtown Houston. The 22-story building is primarily leased to KBR, which is a global engineering, construction, and services company. 390,479 square foot office tower is leased to KBR through June 2030 and is occupied by 9 other tenants that occupy 9% of the building. In addition, CPA®:17 – Global owns KBR’s headquarters, which are located on the same street as this new acquisition. CPA®:17 – Global closed to new investors in December 2012. Its portfolio consists of 83 tenants in 10 countries and 26 industries.
CPA®:18 – Global acquired three properties across the country for a total price of $22.3 million. The properties total 636,857 and are all leased to the Crowne Group under a 25-year triple-net lease with annual CPI increases. The properties, which house automotive manufacturing, warehouse, and office facilities, are located in Logansport and Madison, Indiana and Marion, South Carolina. CPA®:18 – Global has a maximum offering size of $1 billion.
W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini commented, “With its acquisition of the Houston office tower, CPA®:17 – Global has secured another long-term lease with KBR, a strong company located in a growing market. CPA®:18 – Global’s sale-leaseback with the Crowne Group is a prime example of how we provide capital to growing companies. The transaction provides Crowne with the necessary funding for future acquisitions of businesses that are complimentary to Crowne’s overall corporate strategy, while adding a 25-year lease to CPA®:18 – Global’s portfolio.”