Global net-lease REIT W. P. Carey has sold a portfolio of 70 office properties net leased to the State of Andalusia for $359 million (Appr.€327m)
The State of Andalusia portfolio was the company’s largest office portfolio which generated annualized base rent (ABR) of approximately $31 million and estimated net operating income of approximately $29 million, as of December 31, 2023.
The sale completes the largest component of the company’s previously announced office sale program, under a strategic plan to exit the office assets within its portfolio through the spin-off of Net Lease Office Properties (completed in November 2023) and an asset sale program to dispose of certain office properties retained by W. P. Carey.
Jason Fox, Chief Executive Officer of W. P. Carey, said: “The sale of our largest office asset, along with the progress we’ve made to date executing on our strategic plan to exit office, has reduced our office exposure to less than 3% of our total ABR. And we expect that number to further decline over the near term as we complete the remaining sales under the office sale program, at which point over 60% of our ABR will come from industrial and warehouse assets, on a portfolio that remains well diversified with a weighted-average lease term over 11 years and rent growth that we believe will be among the strongest in the net lease sector.”
