W.P. Carey Non-Traded REIT Acquires German R&D Facility
Acquiring properties since 2013, non-traded REIT CPA®:18 – Global, most recently obtained an office and research & development facility in Warstein, Germany. The REIT purchased the facility for $25 million (€20 million) from the global real estate investment and development company, RFR Group.
Michael Fuchs, Principal of RFR Group, commented, “Given their focus on long-term leased quality single-tenant assets as well as their global investment expertise, W. P. Carey’s CPA®:18 – Global was the ideal buyer for this asset. The transaction enabled us to efficiently carry out our strategic portfolio initiatives.”
CPA®:18 – Global is sponsored and managed by W.P. Carey, a REIT that specializes in corporate sale-leaseback financing, build-to-suit financing, and the acquisition of single-tenant net-lease properties.
The German facility is leased to Infineon Technologies AG, one of the largest semiconductor companies in the world and a strong credit tenant. For the fiscal year ending September 30, 2013, the company had a balance sheet and reported revenues of $5.2 billion (€3.8 billion) and net profit of $368 million (€272 million).
The facility was built in 2012 especially for Infineon on their R&D campus, where the company has been operating for over 65 years. Infineon recently built another semiconductor production plant on the campus. Serving as one of Infineon’s global competence centers, the location is an important part their long-term strategy.
Arvi Luoma, Director of W. P. Carey, stated, “As one of the world’s largest semiconductor companies, Infineon is a market leader and a solid addition to CPA®:18 – Global’s tenant portfolio. The recently completed facility is a mission-critical asset for Infineon and demonstrates its long-term strategic commitment to the region. The purchase from RFR Group also highlights our ability to structure transactions worldwide with institutional owners and developers to provide liquidity in support of their global portfolio strategies.”
Through June 30, 2014, CPA®:18—Global raised gross offering proceeds for its Class A common stock and Class C common stock of $964.9 million and $70.1 million, respectively.
The REIT’s portfolio consisted of full or partial ownership interests in 24 properties. All the properties were fully occupied and triple-net leased to 18 tenants, totaling 5.3 million square feet. In addition, the company had full ownership interests in two self-storage properties totaling 0.3 million square feet.
