Build-to-Suit Examples by W. P. Carey (WPC) – Case Study: Nord Anglia Education 1

Build-to-suit expansion funding for existing tenant

W. P. Carey acquires three private preparatory school campuses and commits to fund up to $128 million in construction and renovation costs at the schools over the next four years

Nord Anglia Education Inc.

Description: Founded in 1972, Nord Anglia Education Inc. is a leading global operator of premium international schools with more than 70 schools globally located in 30 countries across China, Europe, the Middle East, Southeast Asia and North America.

Total Investment: $295 million (includes $167 million initial investment and $128 million in follow-on expansion investments)

Transaction Type: Build-to-suit*

Location: Florida and Texas

Facility Type: Three private preparatory schools

In 2016, W. P. Carey acquired three educational facilities leased to Nord Anglia Education Inc., a global leader in premium school organizations, for $167 million. The state-of-the-art facilities house Pre-K through 12th Grade students who benefit from a wide range of amenities, including extensive athletic facilities. At the time of the acquisition, W. P. Carey also agreed to fund up to $128 million of build-to-suit expansions and property improvements to enhance the criticality of the assets. Construction of all build-to-suit projects was completed in 2019, whereby all facilities were subject to a new 25-year triple-net lease.

This series of investments demonstrates W. P. Carey’s ability to structure large, complex transactions and serve as a long-term capital source for growing companies.

"W. P. Carey's long history of providing sale-leaseback and build-to-suit financing solutions, combined with their ability to underwrite the value and growth potential of these schools, made them the ideal partner for the sale-leaseback of Windermere Preparatory School, North Broward Preparatory School and The Village School. “

Andrew Fitzmaurice, CEO, Nord Anglia

 

*In a build-to-suit, W. P. Carey funds and manages the construction of a new facility or the expansion of an existing one custom-built to meet the unique specifications of a prospective or existing tenant. Upon completion of construction, the company enters into a long-term net lease with W. P. Carey, while securing full operational control of the new or expanded facility.