WP Carey has acquired, from Exeter Property Group, a 824,624 square foot distribution facility for a total acquisition price of approximately USD48 million.
The facility is located in University Park, Illinois outside of Chicago and is leased to a subsidiary of The JM Smucker Company for a period of 9.5 years.
Gino Sabatini, WP Carey’s managing director and co-head of global investments, says: "This investment represented an opportunity to acquire a new Class-A logistics facility that serves as a primary distribution centre for all of Smuckers' varied products. In addition, the transaction demonstrates WP Carey's ability to work with a variety of sellers, including those whose investment time frame is shorter and who are predominantly IRR-focused. Because our strategy is to generate income and cash flow over the longer term, we are an attractive source of liquidity to owners, developers and investors with shorter term investment horizons, as was the case with the Exeter Property Group."
Exeter chief executive Ward Fitzgerald adds: "We are thrilled to consummate this win-win transaction for Exeter and WP Carey. We acquired the property in a non-stabilised condition and utilised Exeter's development and leasing skills to add value and high investment performance to Exeter's institutional partners, and are pleased to have made an outstanding asset available to a high quality organisation like WP Carey."