AeriTek
W. P. Carey partners with private equity firm to unlock capital for portfolio company growth
Tenant Description: Leading commercial refrigeration designer, manufacturer and distributor
Total Investment: $61 million
Transaction Type: Sale-leaseback*
Location: Mexico
Square Footage: 670,000 square feet
Facility Type: 6 industrial facilities
Green Features: Several of the facilities feature solar panels on rooftop
W. P. Carey completed the $61 million sale-leaseback of six industrial facilities in Mexico. The transaction closed in two tranches - $46 million in August and $15 million in October. Totaling 670,000 square feet, the portfolio is net leased to AeriTek, a leading designer, manufacturer and distributor of commercial refrigeration and foodservice equipment. AeriTek is owned by middle-market private equity firm Mill Point Capital.
The portfolio consists of AeriTek’s most profitable manufacturing facilities and contains the only plants that serve the US and Mexico markets, which represent approximately 75% of the company’s revenue. The facilities are in strategic locations along Mexico’s primary trade routes and provide access to AeriTek’s distribution centers in Texas and Georgia. Several of the facilities within the portfolio have rooftop solar panels, demonstrating the company’s commitment to renewable energy and reducing its greenhouse gas emissions.
The portfolio is master leased for a term of 20 years with fixed annual rent increases.
*In a sale-leaseback, a 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 company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.
This transaction has allowed us to convert assets into long-term, flexible capital, helping accelerate our strategic initiatives without compromising control or taking on refinancing risk. W. P. Carey’s deep expertise in structuring sale-leasebacks made this a seamless and efficient process.
We’re proud to have completed this cross-border transaction, which highlights our ability to execute complex sale-leasebacks in Mexico. In today’s environment, sale-leasebacks continue to be a powerful tool for unlocking capital and supporting long-term growth. This deal reflects our commitment to delivering tailored real estate solutions that drive strategic value for our partners.