Case Studies

"We stress the importance of maintaining an asset-light strategy throughout all of the Li & Fung businesses.  We are therefore pleased to have concluded a sale-leaseback transaction in Thailand with W. P. Carey and value their commitment to providing real estate financing solutions throughout the region."

Dr. Victor Fung, Chairman, Li & Fung Group

Integrated Distribution Services Group
Integrated Distribution Services Group Limited ("IDS"), a member of the Li & Fung Group, is a provider of integrated distribution services comprising IDS Marketing, IDS Logistics and IDS Manufacturing. Listed on the Hong Kong Stock Exchange (HKSE: 2387), IDS focuses primarily on serving brand owners of consumer and healthcare products who wish to penetrate the Asian market. IDS currently operates in nine economies in Greater China and the ASEAN region, serving over 380 customers, including a multitude of reputable multinational brands.

Situation:
IDS was looking to restructure their business to be “asset-light” and expand its operations in Thailand and Malaysia

Financing:
W. P. Carey purchased and leased back three manufacturing and distribution facilities for $33 million.  The facilities, located in Bangkok, Thailand and Kuala Lumpur, Malaysia, are being leased to IDS on a triple-net basis.

Outcome:
The sale-leaseback with W. P. Carey provided IDS with the additional liquidity it needed to fund operations and fund two build-to-suit expansions.  W. P. Carey is continuing to service IDS’ capital needs by providing expansion capital in Malaysia.