Le mie ricette per la real estate communityW. P. Carey (W. P. Carey, NYSE: WPC), a leading net lease REIT specialising in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, is pleased to announce the sale-leaseback of eight industrial facilities totaling 118,000 square metres, which closed in March 2023.
The portfolio comprises five assets in Northern Italy and three in the Basque Country in Spain, and is triple-net leased on master leases by country to the Siderforgerossi Group S.p.A. (“Siderforgerossi”) a leading European manufacturer of specialised forged metal components, for a term of 25 years with annual CPI-based rent increases.
Key Facts:
• Market-leading tenant: Established in 1908, Siderforgerossi and its subsidiaries and affiliates, is a leading global, vertically integrated manufacturer of highly specialised, forged metal products and related value-added services, including machining, heat treatment and destructive and non[1]destructive testing. It has a strong focus on producing wide diameter forgings that are critical to the onshore and offshore wind power market and also manufactures products for the oil and gas, earth moving and aerospace end-markets. Siderforgerossi was acquired by KPS Capital Partners, L.P., a leading global private equity firm, in 2021.
• Mission-critical portfolio: The facilities represent a significant portion of Siderforgerossi’s manufacturing footprint and are used in the manufacturing of products representing substantially all of the company’s revenue. The tenant has also made significant investments in infrastructure and specialised equipment within the facilities in order to support the significant growth potential of the company. • High barriers to entry: Siderforgerossi’s manufacturing and service capabilities cover the entire forging value chain from billet cutting to forging, heat treatment, machining and destructive and non[1]destructive testing. These capabilities are supported by high-quality, well-invested assets which are difficult and expensive to replicate due to the specialised nature of the equipment, operational sophistication of the company, suitable manufacturing locations with port access and skilled personnel required.
• Long-term net leases with built-in rent growth: The assets are triple-net leased on two master leases by country for a term of 25 years, with annual CPI-based rent increases.
• Assets complement existing European portfolio: W. P. Carey has invested in Italy since 2011 and has acquired over €300 million of assets in the country. In Spain, W. P. Carey completed its first transaction in 2009 and has invested over €1 billion in the country.
Christopher Mertlitz, Head of European Investments, W. P. Carey, said: “As we celebrate 25 years of investing in Europe, we’re thrilled to continue helping corporates and sponsors unlock illiquid capital tied up in their real estate through sale-leaseback transactions. The assets in this portfolio perfectly meet our criteria – high-quality, well-maintained industrial facilities that are critical to a leading manufacturing company operating in attractive high-growth markets. The European manufacturing industry has also demonstrated impressive resilience, and we remain positive about this sector given that it benefits from secular trends. We are pleased to have been able to leverage our unique cross[1]border capabilities to help Siderforgerossi monetise its real estate and look forward to welcoming them as our newest European tenant.”
Source : Company