Sun Products Corporation
“Because of W. P. Carey’s experience with build to suit financing and the private equity industry they were able to understand our objectives and structure a financing that met our business needs, as well as their own investment objectives. The completion of this facility will be an enhancement to our business and the community.”
- Blair Hawley, Senior Vice President, Logistics and Distribution of Sun Products
Build-to-Suit Financing
Consumer-and-Non-Durable-Goods
June 2010
The Sun Products Corporation, headquartered in Wilton, Connecticut, is a leading North American provider of laundry detergent, fabric softeners and other household products. the Company’s portfolio of products are sold under well known brands that include all®, Snuggle®, Sun®, Wisk®, Surf®, and Sunlight®. In addition, Sun Products is the manufacturing partner for the majority of retailer brand laundry and dish products in North America.
Situation: In order to reduce costs and increase efficiency, Sun Products wanted to consolidate nine smaller distribution facilities into one larger center. Once the site had been identified and a developer chosen, the goal was to achieve a financing package that would buy the site, fund the development and allow the developer to secure a profit for itself as well as meet the timing and quality requirements of Sun Products. The facility will be one of the two distribution centers serving the Sun Products’ East Coast customers.
Financing: The W. P. Carey Group provided $41 million in build-to-suit financing for the future distribution center located in Bowling Green, Kentucky. When completed, the 1.4 million square foot facility will be leased to Sun Products.
Outcome: Sun Products was able to consolidate nine facilities in the area, effectively saving the Company $2 million annually in operation costs, the developer was able to get “one stop” financing for both the construction and for the completed building, W. P. Carey was able to secure a solid long term tenant and own an asset critical to Sun Products ongoing operations.
