• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Andalusia’s 70 Public Buildings Sell to WP Carey For €300 Mn

5/12/2014 – El Confidencial

Regional authorities of Andalusia led by Susana Diaz (pictured) agreed to sell 70 public properties for a €300 million total to fund manger WP Carey Inc, which sealed the deal through its Spanish arm Inversiones Holmes. The amount is slightly higher than the asking price set at €292 million and the tender winner has deposited €15 million as a warranty, equal to 5% of the total value of the transaction. Marbella-based branch of CBRE advised on it.

Precisely, this sale-and-leaseback deal permits the Andalusian government to preserve the administrative use of the buildings as it will stay in them as a tenant for the next 20 years, paying €23.6 million annually.

‘The transaction demonstrates trust in foreign investors and more dynamic exploitation of the public properties, so much necessary in the economic recovery times’, stated a speaksperson of the Junta at a press conference.

Describing the transferred buildings, they dispose of 949 attached parking spaces and they are scattered around eight Andalusian provinces. 92% of them is located in big cities and their centers, although none of them is listed as a site of Cultural Interest. Around 36% of the properties, representing 44% of the total floor area and assigned as headquarters of the regional Administration, are situated in Seville. Specifically, 25 buildings stand in Seville, 9 in Huelva, 8 in Cadiz and the same quantity in Cordoba, 7 in Jaen, 5 in Almeria and in Malaga and 3 in Granada.

A Fund With Expertise

WP Carey is a real estate investment trust (REIT) specialized in corporative financing through sale-and-leaseback and purchase deals on single-tenant properties. Until now, it has invested more than 18 billion USD.

As of 30th September 2014, the company is valued at 9.8 billion USD. Aside from its global real estate portfolio, WP Carey manages several non-listed funds embracing 8.3 billion worth of assets.


Original story: El Confidencial (by Elena Sanz)

Translation: AURA REE