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W.P. Carey Completes $5.9 Billion Merger with its Non-Traded REIT

W.P. Carey Inc. (NYSE: WPC) a net lease real estate investment trust, merged with Corporate Property Associates 17 – Global Incorporated, a managed non-traded REIT.

W.P. Carey, a net lease real estate investment trust, has completed the merger with one of its managed funds, Corporate Property Associates 17 – Global Incorporated.

CPA:17 stockholders received 0.160 shares of W.P. Carey Inc. common stock for each share of CPA: 17 for a transaction valued at approximately $5.9 billion, including the assumption of debt. W.P. Carey issued 53.9 million shares of its common stock in a stock-for-stock transaction.

As a result, the company’s equity market capitalization has increased to approximately $11 billion, positioning it as one of the largest net lease REITs and among the top 25 publicly-traded REITs in the MSCI US REIT Index.

“The completion of this transaction marks an important milestone for W.P. Carey, essentially transforming us into a pure-play net lease REIT with a simpler business and more valuable earnings,” said Jason Fox, chief executive officer of W.P. Carey.

In June 2017, the W.P. Carey board approved a plan to exit all non-traded retail fundraising activities to focus exclusively on net lease investing for the company’s balance sheet. W.P. Carey’s managed programs include non-traded REITs, non-traded business development companies, and private funds.

W.P. Carey is one of the largest diversified net lease REITs with an enterprise value of over $17 billion and a portfolio of operationally-critical commercial real estate that includes 1,186 net lease properties covering approximately 133 million square feet. It has invested in single-tenant industrial, warehouse, office and retail properties, utilizing long-term leases with built-in rent escalators. W.P. Carey’s portfolio is largely located in the U.S. and Northern and Western Europe.

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