W. P. Carey Announces $45 Million Acquisition and Build-to-Suit Expansion of Belk Distribution Center on Behalf of CPA:18 – Global
Wednesday, July 9th 2014
Transaction Funds Construction of Expansion and Provides Liquidity to Developer
NEW YORK, NY – W. P. Carey Inc., a global net-lease REIT specializing in corporate sale-leaseback financing , build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that CPA®:18 – Global, one of its managed non-traded REITs, acquired a 515,000 square foot distribution center leased to retailer Belk, Inc. A portion of the investment will fund the construction of a 346,000 square foot expansion, which is expected to be completed in January 2015. The seller is an affiliate of Panattoni Development Company and is also overseeing the construction of the expansion. The total value of the transaction is approximately $45 million.
•Strong tenant: Belk, Inc. is one of the largest retailers in the United States with nearly 300 stores across 16 states and over $4 billion in annual revenues. Founded in 1888, Belk sells top national brands of fashion apparel, shoes and accessories for women, men and children, as well as cosmetics, home furnishings, housewares, fine jewelry, gifts and other types of quality merchandise.
•Critical e-commerce asset: Belk has made e-commerce a core focus for growth going forward and is making significant investments to expand the capabilities of its belk.com website and increase online sales. The Jonesville, South Carolina e-commerce distribution facility plays a significant role in Belk’s evolving strategy.
•Modern facility with 15-year lease and significant tenant investment: In addition to CPA®:18 – Global’s investment, Belk is investing $28 million on the expansion in order to develop a state-of-the-art e-commerce distribution facility. Improvements will include conveyor systems, racking and automation. The investment and long-term 15-year lease demonstrate Belk’s commitment to e-commerce and this facility.
W. P. Carey Managing Director, Chad Edmonson: “The investment in the Belk facility represents W. P. Carey’s ability to source, structure and execute on single-tenant transactions that capitalize on growth trends, including those fueled by the ongoing expansion of e-commerce among retailers and their customers. Over the past decade, e-commerce sales have grown from less than 1% to over 5% of total retail sales. Consistent with that trend, Belk continues to grow its e-commerce business and expand the capabilities of its belk.com website. Our acquisition of the existing Jonesville facility and the build-to-suit financing of the expansion are supporting this initiative and helping to position the company for future growth, while securing a solid income-generating asset for CPA®:18 – Global’s investors.”
Panattoni Partner, Whitfield Hamilton, said: “We enjoy a strong working relationship with W. P. Carey in Europe as well as the United States. Their access to capital and ability to structure transactions that meet the timing requirements of our development projects and the needs of our corporate clients makes W. P. Carey the ideal financial partner for us. The Belk transaction, which provides us current liquidity through the purchase of the existing facility and construction financing for its expansion, demonstrates W. P. Carey’s ability to structure complex transactions that meet the specific needs of developers and their corporate tenants.”
Panattoni was represented on the transaction by John Huguenard and Sean Devaney of Colliers Investment Services Group.
W. P. Carey Inc.
W. P. Carey Inc. is a leading global net-lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide. At March 31, 2014, the Company had an enterprise value of approximately $9.5 billion. In addition to its owned portfolio of diversified global real estate, W. P. Carey manages a series of non-traded REITs with assets under management of approximately $7.3 billion. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades.
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Edmonson are examples of forward looking statements. A number of factors could cause CPA®:18 – Global’s actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated; risks related to CPA®:18 – Global’s offering of shares. For further information on factors that could impact CPA®:18 – Global, reference is made to CPA®:18 – Global’s filings with the Securities and Exchange Commission.