W. P. Carey Inc. has closed the acquisition of a 4 million sqf, 49 property industrial portfolio located in the U.S. and Canada for an aggregate purchase price of $217 million. The portfolio is comprised of 43 properties in the U.S. totaling approximately 3.5 million sqf and six properties in Canada totaling 500,000 sqf. The properties are leased to wholly-owned subsidiaries of Forterra Building Products for a period of 20 years. The 20-year triple net leases include fixed annual two percent rent escalations.
Forterra is a multinational manufacturer of concrete and clay building products. Based in Irving, Texas, Forterra employs more than 5,400 people throughout the U.S., Canada and the United Kingdom. Forterra was represented on the transaction by Brian Scott and Andrew Sandquist of CBRE.
Gino Sabatini, W. P. Carey Managing Director and Head of Net Lease Investments, said the sale-leaseback transaction would provide it with predictable cash flows from a strong tenants. “Consistent with our established investment critieria, we believe the acquisition is a sound addition for W. P. Carey Inc.’s portfolio, which extends its weighted average lease-term and is accretive to cash flow.”
