Skip to content

W.P. Carey REIT Completes $34 Million Sale-Leaseback in Poland

Corporate Property Associates 17 – Global Inc., a publicly registered non-traded REIT sponsored by W.P. Carey (NYSE: WPC), completed the sale-leaseback of a cold-storage facility from Greenyard (formerly Greenyard Foods), one of the world’s largest fruit and vegetable suppliers.

The 309,800-square-foot facility is located just outside of Warsaw, Poland and was purchased for approximately €32 million ($34.2 million). The proceeds from the 20-year triple-net lease will be used to pay down debt associated with the facility.

The facility is Greenyard’s largest cold-storage property in Poland and is located in “Zone II” of Warsaw’s logistics market in the town of Zabia Wola, approximately 30 minutes from Warsaw’s city center. The company noted that the facility is critical to its customer supply chain, offering direct delivery to stores and 24/7 operations with more than 100 trucks dispatched each night.

“We continue to deepen our knowledge and expertise in Central and Eastern Europe and to see further opportunity in Poland, one of the fastest growing economies in the region,” said Jeffrey Lefleur, managing director of W. P. Carey Inc. “This transaction exemplifies our ability to achieve above-average returns from net lease investments backed by long-term, strategic operating assets.”

Temperature-controlled warehouses, particularly those with deep freezing capacity, must be purpose-built, as this asset was for Greenyard. This asset type is dedicated for cold storage and requires specialized construction design and technology beyond that of a standard warehouse, the company said.

Greenyard is listed on the Euronext stock exchange (Euronext Brussels: GREEN) and employs more than 8,000 employees operating in 25 countries worldwide, delivering goods and services worth almost €4 billion ($4.2 billion) annually.

CPA:17 – Global went effective in November 2007 and closed in January 2013 after raising $2.9 billion in investor equity. The company’s portfolio consists of 426 properties with an investment cost of $4.7 billion, according to Summit Investment Research.

Click here to visit The DI Wire directory page.