W. P. Carey Inc. has announced a $4billion merger with its non-traded REIT affiliate Corporate Property Associates 16 – Global Incorporated, know as CPA:16 – Global.
Following the merger, the combined company is expected to have an equity market capitalization of approximately $6.5 billion and a total enterprise value of approximately $10.1 billion.
The combined portfolio will consist of more than 700 properties with 86 million square feet of corporate real estate leased to 231 companies around the world. W. P. Carey president and CEO Trevor Bond said the deal will be a boost to both is beneficial to both companies.
“In addition to providing liquidity to CPA:16 – Global investors, it will significantly increase W. P. Carey’s asset base, with a portfolio that will further enhance our already broad diversification by tenant, property type and geography,” said Bond.
“Given that we originated and manage CPA:16 – Global’s portfolio, we believe we are uniquely positioned to capitalize on its inherent opportunities.ˮ The transaction should reinforce Carey’s status among global net-lease REITs and manager of non-traded real estate programs.
Over the past 35 years, the company has amassed 100,000 investors in 15 programs.
“We have performed well for our investors – those in our public company as well as our managed programs – throughout a variety of market cycles,ˮ added Bond, who said the company’s success could be attributed to “the disciplined investment approach instituted by our late founder, Wm. Polk Carey, when he opened the doors of W. P. Carey 40 years ago.”
The merger continues W. P. Carey’s evolution from a hybrid LLC that derived the majority of its revenue from investment management fees into a leading global net lease REIT.