Purmo Group
Sale-leaseback supports tenant’s long-term growth ambitions
Tenant Description: A leading European provider of sustainable indoor climate solutions
Total Investment: €52 million
Transaction Type: Sale-leaseback*
Square Footage: 897,800 square feet (83,400 square meters)
Location: Poland
Facility Type: 2 manufacturing facilities
W. P. Carey completed the sale-leaseback of two light industrial manufacturing facilities located in Poland. Totaling approximately 83,400 square meters, the portfolio is triple-net leased to Purmo Group, a leading European designer, manufacturer and supplier of radiators, underfloor heating systems and related components.
The facilities are critical to Purmo Group’s business and produce the majority of its panel radiators, the company’s largest business line. The facilities are strategically located in western Poland along arterial road transport routes, facilitating easy distribution to the rest of Europe.
Purmo Group is committed to accelerating the transition to more sustainable buildings. Through its portfolio of energy-efficient indoor climate solutions, Purmo Group helps customers reduce energy consumption, lower emissions and support the shift to low-carbon heating and cooling. This commitment is reflected in validated science-based targets to reduce Scope 1 and 2 emissions by 54.6% and Scope 3 emissions by 32.5% by 2033.
The properties are triple-net master leased for a term of 20 years with annual CPI-based 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.
The capital generated through this sale-leaseback supports our long-term growth ambitions and allows us to continue investing in our business. W. P. Carey took the time to understand our objectives and was a reliable and knowledgeable partner during this process.
This transaction reflects the type of investment opportunity we continue to pursue across Europe: high-quality, mission-critical real estate leased on a long-term basis to a market-leading operator. We are also pleased to further expand our presence in Poland, a market where we have invested over €900 million since 2006 and continue to see attractive opportunities to partner with high-quality businesses through strategic sale-leaseback transactions.