W. P. Carey has completed a €52 million sale-leaseback transaction covering two light-industrial production properties in western Poland. The portfolio totals approximately 83,400 sqm and is leased to the Purmo Group, a European developer and manufacturer of radiators, underfloor heating systems and related components, under a 20-year triple-net master lease with annual, consumer price index-linked rent increases.
The two properties are located in western Poland along transport corridors that facilitate distribution across Europe. They are central to Purmo Group's operations, producing the majority of the company's panel radiators, which represent its largest business segment. Purmo Group, founded in 1953, is majority-owned by funds managed by Apollo, with Rettig Group retaining a minority stake. The company operates in more than 20 countries and holds science-based targets to reduce Scope 1 and Scope 2 emissions by 54.6% and Scope 3 emissions by 32.5% by 2033.
"This transaction reflects the kind of investment opportunities we continue to pursue across Europe: high-quality, operationally critical properties leased long-term to a market-leading operator," said Jolette Persson, Senior Vice President, Investments at W. P. Carey. "We are pleased to expand our presence in Poland further, a market where we have invested more than €900 million since 2006 and where we continue to see opportunities to partner with strong businesses through strategic sale-leaseback transactions."
"The capital released through this sale-leaseback supports our long-term growth ambitions and allows us to continue investing in our business," said Erik Hedin, Chief Financial Officer of Purmo Group. "W. P. Carey took the time to understand our goals and was a reliable and capable partner throughout the process."
W. P. Carey is a net-lease REIT with a portfolio of more than 1,700 properties totalling around 17 million sqm across North America and Europe, with offices in New York, London, Amsterdam and Dallas.
