The Wall Street Journal - August 17, 2010
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that its publicly-held, non-traded REIT affiliate, CPA(R):17 - Global, has provided build to suit financing that will fund 100% of the construction and related development costs for a logistics facility in Poznan, Poland being developed by Panattoni Europe. Upon completion, the facility will be owned by CPA(R):17 and will be fully occupied under a long term triple net lease with Neuca SA (formerly known as Torfarm SA), the largest wholesale pharmaceutical distributor in Poland.
The to-be-built facility will comprise approximately 123,000 square feet and will serve as one of Neuca's three strategic logistics sites for pharmaceutical distribution across Poland. The facility is located in Poznan, the 4th largest logistics hub in Poland. Linking seven national and international roads and located midway between Berlin and Warsaw, Poznan forms an important trade-route junction. Construction is anticipated to be completed in January 2011.
Jeff Lefleur, Executive Director of W. P. Carey, said: "Our large capital base and long term investment approach gives us the ability to finance 100% of construction and related development costs in markets where such capital remains challenging for developers to access. We hope to continue being a reliable funding source to experienced developers such as Panattoni for their long term, single-tenant projects. We are also pleased that our financing will help Neuca meet its new facility needs."
Robert Dobrzycki, Managing Partner of Panattoni Europe, noted: "Choosing W. P. Carey as our funding source enabled us to focus on the needs and timing of the project, avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part."
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