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W.P. Carey REIT Sells 11 Student Housing Properties to Brookfield for $404 Million

Corporate Property Associates 18 – Global Incorporated, a publicly registered non-traded real estate investment trust, has sold 11 net-lease student housing properties located in Spain and Portugal.

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Corporate Property Associates 18 – Global Incorporated, a publicly registered non-traded real estate investment trust advised by W. P. Carey Inc. (NYSE: WPC), has sold 11 net-lease student housing properties located in Spain and Portugal for $404 million, according to a filing with the Securities and Exchange Commission.

The net cash proceeds totaled approximately $232 million, reflecting the assumption of certain non-recourse mortgage loans encumbering the properties, working capital, and selling costs.

According to the SEC filing, the properties’ tenant, Brookfield Strategic Real Estate Partners, exercised its option to purchase the properties, following the REIT’s recent proposed merger announcement, which triggered a change in control event.

In December 2019, the REIT executed a framework agreement with a third party to enter into 11 net lease agreements for its student housing properties located in Spain and Portugal for 25 years upon completion of construction.

As of December 31, 2021, the REIT placed nine student housing properties into service, and the remaining two projects under construction will become subject to net lease agreements upon their completion and are scheduled to do so in 2022 and 2023, the company said in its year-end 2021 financial filing.

Corporate Property Associates 18 recently announced plans to merge with its advisor, W. P. Carey Inc. (NYSE: WPC), a publicly traded REIT, in a transaction valued at approximately $2.7 billion. The merger is expected to close in the third quarter of 2022, with the approval of CPA:18 shareholders.

Corporate Property Associates 18 – Global invests in commercial real estate properties leased to companies domestically and internationally in addition to self-storage and student housing assets.

As of March 31, 2022, the REIT’s net lease portfolio was comprised of 52 properties, substantially all of which were fully occupied and triple-net leased to 47 tenants totaling 10.4 million square feet. The remainder of the portfolio was comprised of 65 self-storage properties, three student housing development projects, and one student housing operating property, totaling approximately 5.1 million square feet.

CPA:18 – Global’s offering was declared effective in May 2013 and closed in April 2015 after raising $1.2 billion in investor equity. As of the first quarter of 2022, the REIT had investments in real estate of $2.4 billion.

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