In a significant development, W. P. Carey Inc. WPC, the New York-based real estate investment trust (“REIT”) announced the acquisition of a multi-tenant retail site in Oslo, Norway through the CPA®:18 – Global program. The acquisition, valued at $105 million, was made through a joint venture (“JV”) with the Oslo-based developer, Winta Eiendom AS, from Coop Norge AS (COOP), the second largest grocery retailer in Norway. Given the strong anchor tenant and locational advantages, the deal is likely to be accretive for W. P. Carey, going forward.
Notably, W. P. Carey is engaged in providing long-term sale-leaseback and build-to-suit financing for companies. The CPA®:18 – Global program is the seventeenth one in the series of CPA® programs sponsored by W. P. Carey. This program aims to enhance shareholders’ value by investing in a diverse portfolio of income-generating commercial properties and real estate assets.
The acquired property is situated in the busiest retail cluster of Alna, a 1.8 million square-foot destination retail district in Oslo. Around 64% of the annual rent from the facility is generated from the anchor tenant COOP Ost AS. Besides, another 23% of annual rental revenue is generated by Expert – the second largest consumer electronics retailer in Norway, and Lampehuset, the leading lighting retailer in Norway.
This acquisition has provided W. P. Carey with an opportunity to grab top-quality retail assets in an important location in Oslo. Given the swift development of the city as well as strength of prevalent tenancy in the location, we opine the deal will generate attractive cash flow and promises future development for the company, going forward.
Currently, W. P. Carey carries a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Hudson Pacific Properties, Inc. HPP, Strategic Hotels & Resorts, Inc. BEE and Arbor Realty Trust Inc. ABR. All these stocks sport a Zacks Rank #1 (Strong Buy).
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