Plastic container manufacturer
W. P. Carey acquires three manufacturing facilities in North American, cross-border deal
Tenant Description: North American leader in the plastic container industry
Total Investment: $67 million
Transaction Type: Sale-leaseback*
Location: Ontario and Missouri
Facility Type: 3 manufacturing facilities
W. P. Carey completed the $67 million USD ($93 million CAD) sale-leaseback of three manufacturing facilities located across Toronto (2) and Kansas City (1). Totaling 496,000 square feet, the portfolio is triple-net leased to a leading North American plastic container manufacturer.
Founded in 1968, the company holds the top position across several key industry segments and has a diversified, blue-chip customer base. The assets are vital to the company’s operations, representing its entire manufacturing footprint. The company has also invested significant capital into new equipment for the facilities, underscoring their criticality.
The portfolio is subject to country-wide, long-term master leases with built-in rent growth.
*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 highlights our expertise in executing complex cross-border sale-leaseback transactions. We are thrilled to work with a leading manufacturer in the packaging sector and add these mission-critical assets to our portfolio as we advance our investment strategy.