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Sale-Leasebacks: an Innovative Tool to Convert Corporate Real Estate

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Sale-Leasebacks: an Innovative Tool to Convert Corporate Real Estate About W. P. Carey W. P. Carey Inc. (NYSE: WPC), one of today’s largest diversified net lease REITs, provides long-term sale- Sale-Leasebacks: An Innovative leaseback and build-to-suit capital solutions primarily for companies in Tool to Convert Corporate the U.S. and Northern and Western Europe. We are well positioned with the capital and experience needed to Real Estate into Working Capital maximize efficiency and ensure certainty of close on complex, single Many companies have a large part of their equity and multi-country deals that meet our investment criteria. tied up in their real estate assets, despite not being Years of Tenant in the business of real estate. In a sale-leaseback, Experience Industries a company sells its real estate to an investor like + + W. P. Carey for cash and simultaneously enters into 45 30 a long-term lease. In doing so, the company extracts Number of Net Lease Countries Properties 100% of the property’s value and converts an otherwise illiquid asset into working capital to grow 25 1,266 its business, while maintaining full operational control. Our Investment Criteria • Occupancy • Purchase Price Single-tenant $5M to $500M Sells Property • Property Types • Geographies Industrial, U.S. and Europe warehouse, office, select retail, other Prospective Pays Rent specialized assets Tenant “The Seller” Pays Market Value “The Buyer” Who We Work With • Brokers • Developers Leases Back Property • Publicly traded and • Private equity privately-held firms and their companies portfolio companies Sale-Leaseback Benefits Our Capabilities Sale-leasebacks enable the seller/tenant to: Public, private All-equity and emerging buyer • Unlock the full market value of otherwise illiquid real estate assets tenant credits • Reinvest the cash realized from the sale-leaseback into its core business operations and growth objectives, while retaining full Flexible deal Certainty operational control of the facility structures of close • Benefit from 100% deductibility of rental payments rather than being subject to interest limitations for traditional debt as defined Future capital Cross-border, by tax laws for growth and multi-country expansions transactions © 2021 Copyright W. P. Carey Inc. Data as of June 30, 2021 For more information, please contact: Gino Sabatini Head of Investments [email protected] (212) 492-1138 Sale-Leasebacks: Capital Solutions wpcarey.com Tenant Use of Proceeds Property Details Investment1 ABC Group Inc. Funded working capital, returned Portfolio of 13 $141 million One of the world’s capital to investors and helped pay industrial facilities leading automotive down debt and one office across systems and the U.S., Canada components and Mexico manufacturers (three U.S. states) Danske Fragtmænd Funded exit strategy to institutional Portfolio of 14 logistics DKK 1.2 billion Market-leading Danish investor following a shift in their facilities and one freight carrier with over portfolio’s geographic focus. Also corporate HQ 40,000 customers and helped fund tenant’s plans to in Denmark nine million annual expand its market share consignments across Denmark Orgill Funded tenant’s future growth Two distribution $93 million2 World’s largest needs through the acquisition of two facilities in the U.S. independent hardware facilities and by providing additional (two states) distributor funding for a follow-on expansion of an existing distribution facility Nippon Express Initial sale-leaseback enabled seller/ BREEAM- and FM- €56 million3 (Initial sale-leaseback developer to recoup development certified, Class-A investment and follow-on costs for future projects. Follow-on logistics facility in the expansion) Leading third- investment funded an expansion of Port of Rotterdam party logistics company the facility and planned installation with operations across of what will be one of the largest 40 countries solar rooftops in the Netherlands Schneider Electric Provided exit capital for a local LEED-certified, Class-A $56 million Global specialist in developer and its real estate private office HQ and R&D energy management equity partner facility in the U.S. and automation, with a (Andover, MA) presence in more than 100 countries Intergamma Funded a portion of the capital stack Portfolio of 36 DIY retail €153 million Leading “Do-it-yourself” for an initial corporate acquisition facilities across the retailer in the and provided an ongoing capital Netherlands’ three Netherlands, with a source for future acquisitions and largest cities – history dating back more planned construction/ expansion Amsterdam, Rotterdam than 85 years projects and The Hague State of Andalucía Reduced debt and redeployed Diversified portfolio €300 million Government of the capital to increase government’s of 70 regional State of Andalucía budget initiatives government office buildings in Spain 1 Includes acquisition-related costs and fees. 2 Includes $79 million investment and $14 million follow-on expansion funding. 3 Includes initial purchase price and investment for follow-on expansion. © 2021 Copyright W. P. Carey Inc..
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