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W. P. Carey buys assets in Denmark for $188 million

W. P. Carey
Acquisition   This deal marks W. P. Carey's first investment in Denmark

W. P. Carey announced the acquisition of a mission-critical portfolio of 14 logistics assets and one corporate headquarters totaling 1,986,841 square feet (184,582 square meters) for approximately $188 million (DKK 1.2 billion).


The portfolio is triple-net leased to Danske Fragtmænd, the market-leading Danish freight carrier. The acquisition was advised by EDC Erhverv Poul Erik Bech in an off-market transaction that allowed the seller to efficiently identify a qualified buyer and negotiate the transaction without marketing publicly.

This deal marks W. P. Carey's first investment in Denmark and complements the firm's existing Nordic portfolio. W. P. Carey has been investing in the Nordics since 2001 and has acquired approximately $1 billion (€800 million) of assets in the region, including assets in Finland, Sweden and Norway.

With a history dating back more than 100 years, Danske Fragtmænd is the leading freight carrier for business-to-business freight solutions in Denmark. It holds a dominant market share of approximately 50% in its segment, twice the size of its nearest competitor, with approximately 40,000 customers and nine million annual consignments.

The portfolio represents approximately 90% of Danske Fragtmænd's logistics footprint and consists of five regional distribution hubs, nine last-mile distribution facilities and its corporate headquarters.

The assets cover Denmark's main urban centres outside of Copenhagen, including key regional sites in Aarhus, Odense and Taulov. In aggregate, approximately 80% of the portfolio's annual base rent is located in the top seven metropolitan areas of Denmark.

Triple-net leases with annual rent escalations tied to Danish CPI and a remaining term of approximately 17.8 years.

 

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