Web Lease REIT W.P. Carey executed the biggest transaction within the firm’s 50-year historical past this week with a $468M sale-leaseback of a portfolio of 4 pharmaceutical R&D and manufacturing campuses within the Larger Toronto Space (GTA).
The portfolio represents the lion’s share of the worldwide operations of Apotex Pharmaceutical Holdings, the biggest generic drug producer in Canada.
The 4 campuses acquired by W.P. Carey embrace 11 buildings encompassing 2.3M SF positioned in engaging industrial submarkets inside the GTA. The deal was structured as a triple-net grasp lease with hire payable in US {dollars} and stuck hire escalations over a 20-year time period.
The sale-leaseback closed concurrently with personal fairness agency SK Capital’s majority buyout of Apotex, which financed a portion of the buyout.
W.P. Carey mentioned the transaction, which closed on April 3, brings the corporate’s year-to-date funding quantity to roughly $650M, principally in industrial properties.
Because the mega-deal was introduced, GlobeSt. convened its annual Web Lease Spring convention in New York Metropolis. A number of audio system on the convention mentioned that mission vital gentle manufacturing and lab house have grow to be ripe targets for sale-leaseback transactions involving long-term web lease deal.
“We’re thrilled to shut this sale-leaseback and welcome Apotex as a high tenant. Along with its present scale, we consider Apotex will proceed to profit from the deep experience of its personal fairness sponsor within the pharmaceutical manufacturing sector,” mentioned Tyler Swann, Managing Director, W.P. Carey, in a press release.
“This funding is a good instance of our capability to companion with personal fairness corporations to leverage sale-leaseback proceeds to optimize the capital stack for brand new acquisitions,” Swann mentioned.
In a current interview with GlobeSt., Zachary Pasanen, managing director, investments at W.P. Carey, mentioned sale-leasebacks provide sellers a “naturally accretive” different funding supply. Holders of fungible, mission-critical actual property which can be prepared to signal a long-term lease with market or higher rental will increase in-built will possible discover that the underlying price with which they will monetize these property is contained in the going long-term borrowing price, he mentioned.
W.P. Carey focuses on company sale-leasebacks, build-to-suits and the acquisition of single-tenant web lease properties. The corporate ranks among the many largest web lease REITs with an enterprise worth of roughly $24 billion and a well-diversified portfolio of high-quality, operationally vital business actual property.
The NYC-based firm’s portfolio included 1,449 web lease properties encompassing about 176M SF and 84 self-storage working properties, as of December 31, 2022.
With places of work in New York, London, Amsterdam and Dallas, the corporate stays centered on investing primarily in single-tenant, industrial, warehouse and retail properties positioned within the US and Northern and Western Europe, beneath long-term web leases with built-in hire escalations.
