London-based W. P. Carey Inc., one of the largest diversified net lease REITs specializing in corporate sale-leasebacks, build-to-suit transactions and the acquisition of single-tenant net lease properties, recently revealed the off-market acquisition of a central logistics facility near Lisbon, Portugal, totaling 534,000 square feet for approximately $50 million. The distribution center is subject to an existing triple-net lease with Sonae MC, Portugal’s leading food retailer.
Arvi A. I. Luoma, Head of European Investments, W. P. Carey, said: “Logistics remains a sought-after asset class across Europe, which has demonstrated attractive liquidity and growth trends. Our acquisition of a mission-critical facility in a prime logistics location in Portugal was a rare and attractive opportunity in a market with relative undersupply. The investment further diversifies our portfolio with a strong market-leading tenant in a highly defensive industry largely insulated from e-commerce disruption.
“W. P. Carey’s more than 20 years of experience investing in Europe, together with efficient underwriting and execution by our in-house acquisitions team, enabled us to complete this off-market transaction quickly, securing stability for the tenant and providing additional long-term value to our investors.”
Key Facts of the deals were as follows:
Market-leading food retailer: Sonae MC generates approximately $4.5 billion in annual revenues and is the primary operating business of Sonae SGPS, S.A., a publicly listed Portuguese conglomerate with a diversified portfolio of businesses, including retail, investment management, financial services, real estate and telecommunication services.
Prime logistics location: The asset is located in the Azambuja logistics park, Portugal’s prime logistics hub. The park is located 25 minutes north of Lisbon, Portugal’s capital and economic center.
Mission-critical asset: The facility is Sonae MC’s central distribution facility and is its only warehouse in the Azambuja region with cold storage for perishable food products. Together with two neighboring Sonae logistics centers, the facility forms a strategic and efficient logistics hub from which Sonae operates its retail stores in central and southern Portugal.
Long-term net lease with built-in rent growth: The asset is subject to an existing triple-net lease with built-in annual rent escalations tied to Euro Area CPI and a remaining term of more than ten years.
Expansion potential: The facility is situated on a large parcel of land with substantial building rights, providing potential future expansion opportunities.