by Ákos Budai | Investment

CP:17 – Global, a U.S.-based non-traded REIT focused on investing in income-producing commercial properties and real estate-related assets, announced that it has completed the sale-leaseback of a cold-storage facility from Greenyard (formerly Greenyard Foods), one of the world’s largest fruit and vegetable suppliers. The 28,700 sqm (309,759 sq ft) facility is located just outside of Warsaw, Poland and was purchased for approximately €32 million. The proceeds from the 20-year triple-net lease will be used to pay down debt associated with the facility. 


The facility is Greenyard’s largest cold-storage property in Poland and is strategically located in “Zone II” of Warsaw’s logistics market in the town of Zabia Wola, approximately 30 minutes from Warsaw’s city centre. The facility is critical to its customer supply chain, offering direct delivery to stores and 24/7 operations with more than 100 trucks dispatched each night. 
 
Temperature-controlled warehouses, particularly those with deep freezing capacity, must be purpose-built, as this asset was for Greenyard. This asset type is dedicated for cold storage and requires specialized construction design and technology beyond that of a standard warehouse. 
 
The facility is subject to a triple-net lease with a 20-year term, with annual inflation-adjusted rent increases.
 
Jeffrey Lefleur, Managing Director of W. P. Carey Inc., commented: “We continue to deepen our knowledge and expertise in Central and Eastern Europe and to see further opportunity in Poland, one of the fastest growing economies in the region. This transaction exemplifies our ability to achieve above-average returns from net lease investments backed by long-term, strategic operating assets. Such properties, when leased to market-leading companies like Greenyard, enable us to grow the long-term income generating strength of the CPA :17 – Global portfolio.” 
 
CPA:17 – Global is a U.S.-based, publicly registered non-traded REIT formed to invest in a diversified portfolio of income-producing commercial properties and real estate-related assets. Affiliates of W. P. Carey Inc. advise CP :17 – Global and manage its overall portfolio