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W. P. Carey Finalizes Sale-leaseback with Nokia in Poland on Behalf of CPA:17 - Global [Professional Services Close - Up]
[September 22, 2014]

W. P. Carey Finalizes Sale-leaseback with Nokia in Poland on Behalf of CPA:17 - Global [Professional Services Close - Up]


(Professional Services Close - Up Via Acquire Media NewsEdge) W. P. Carey reported that CPA:17 - Global, one of its managed non- traded REITs, has completed a sale-leaseback with Nokia Solutions and Networks (NSN), a subsidiary of global communications and information company Nokia Corp.



According to a release from the Company, the office/R&D facility is located in Krakow, Poland and was acquired for EUR9.7 million ($13 million).

Key facts: -Strategic facility: Completed in 2003, the 4,961 square-metre (53,377 square-foot) facility houses approximately 300 engineers, computer technicians and researchers who are working within Nokia's network and telecom infrastructure division - which remains the core business of Nokia following the sale of its mobile phone division to Microsoft.


-Hi-tech location: The facility is located in Poland's second largest city, Krakow, which has emerged as "Eastern Europe's Silicon Valley." The city supports a strong cluster of technology businesses and is home to offices and R&D centers of Google, IBM, GE and Hitachi.

-Lease term: 10-year, triple-net lease.

-Credit-rated parent: Nokia has an equity market capitalization of EUR20 billion ($27 billion), is listed on the NYSE (Ticker: NOK) and is rated "BB / Positive Outlook" by S&P and Moody's.

Active in Europe since 1998, W. P. Carey and its managed REITs have invested approximately EUR3 billion ($4 billion) in the region. This transaction is W. P. Carey's second in Poland this year; in April, W. P. Carey announced a EUR115 million ($158 million) acquisition of Bank Pekao's headquarters in Warsaw on behalf of two of its managed REITs.

Jeffrey Lefleur, Managing Director of W. P. Carey, commented: "Nokia remains one of the world's leading telecom infrastructure providers. The acquired facility is an important asset to Nokia Solutions and Networks Polish operations. This transaction highlights W. P. Carey's ability to structure deals worldwide, providing long-term financing for leading global businesses." Lefleur added: "Poland is the second largest economy in Central Eastern Europe with projected GDP growth and a healthy and liquid banking industry. These metrics, along with the strength of the Nokia tenancy and positive outlook for the Krakow office market, enhanced the attraction of this acquisition as a solid addition to CPA:17 - Global's portfolio." More information and complete details: www.wpcarey.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved.

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