The market for corporate real estate investment boomed in 2021 for US-based REIT WP Carey, which invested its largest amount in the sector since it was founded in 1973.
The company invested more than $1.7bn (£1.2bn) over the 12-month period, splashing some $530m in the final three months of year.
Gino Sabatini, head of investments at WP Carey, said: “Corporate leaders are increasingly recognising the benefits of sale-and-leasebacks as a means of unlocking the value of their critical operating real estate.”
The firm said that the majority (70%) of its investment was focused on the industrial market, with 60% of funds focused on the US and the remaining 40% on European sale-and-leasebacks. UK acquisitions included a Dixons Carphone logistics facility in the East Midlands, a Huddersfield distribution centre and a logistics facility in Solihull, let to Jaguar Land Rover on a 30-year lease.
Deals were all agreed with fixed rental uplifts, averaging 2.3%, or inflation-linked uplifts, and were secured on an average leaseback of 20 years.
Looking ahead to 2022, chief executive Jason Fox said the REIT had a number of deals due to complete during the first quarter and that it was “actively building pipeline of new opportunities”.
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