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Many companies have a large part of their equity tied up in their real estate assets, despite not being in the business of real estate. In a sale-leaseback, a portfolio company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the private equity firm and its portfolio company extract 100% of the property’s value and convert an otherwise illiquid asset into working capital to grow the business, while maintaining full operational control.
Sale-leasebacks enable private equity firms to:
See below for examples of our sale-leasebacks with private equity firms and their portfolio companies.
"W. P. Carey's ability to analyze and evaluate our critical operating assets in multiple locations, assess our current and ongoing operating strategy, as well as our financial strength allowed them to close the acquisition of 49 individual assets on a timely and efficient basis."
Jeff Bradley
CEO of Forterra
Sale-leaseback proceeds enabled the private equity sponsor to complete several add-on acquisitions to help Forterra achieve the scale and flexibility needed to complete its IPO.
| Sale-Leaseback Investment | $218 million |
| Property Details | Portfolio of 49 industrial facilities |
| Location | U.S. (22 states) |
| Square Footage | 4.0 million |
Sale-leaseback proceeds were used to pay down debt and refund a portion of the private equity sponsor’s acquisition of ABC, providing the private equity firm with capital for future acquisitions.
| Sale-Leaseback Investment | $141 million |
| Property Details | Portfolio of 13 industrial facilities and one office |
| Location | U.S., Canada and Mexico |
| Square Footage | 2.4 million |
"Given their significant experience, W. P. Carey was the ideal partner for this deal. They understood our objectives and were able to apply their real estate expertise to structure and close a transaction within a tight timeframe that maximized value and flexibility for my client [the private equity firm]."
JC Asensio
Managing Director, Newmark Knight Frank
Sale-leaseback proceeds enabled the private equity sponsor to pay down debt and recapture a portion of its investment immediately following its all-cash platform investment in Turkey Hill.
| Sale-Leaseback Investment | $70 million |
| Property Details | Clean-energy, food production site |
| Location | U.S. (Pennsylvania) |
| Square Footage | 400,000 |
W. P. Carey Inc. (NYSE: WPC), one of today’s largest diversified net lease REITs, provides long-term sale-leaseback and build-to-suit capital solutions primarily for companies in the U.S. and Northern and Western Europe. We are well positioned with the capital and experience needed to maximize efficiency and ensure certainty of close on complex, single and multi-country deals that meet our investment criteria.
Portfolio data is as of December 31, 2019.
