WP Carey wraps up £238m posh paper giant leaseback deal

WP Carey has completed a €280m (£238m) sale and leaseback deal for 16 industrial facilities across Europe. The acquisition of the circa 4m sq ft portfolio closed in two tranches – the first in December 2023 (€144m) and the second (€136m) last month. The portfolio comprises 12 assets in Italy, three in Spain and one in Germany and is triple-net leased to Fedrigoni Group, a global specialty paper manufacturer, on 20-year terms. The 12 Italian assets were acquired by a real estate fund managed by Savills Investment Management. WP Carey said the portfolio was critical to Fedrigoni’s business and generates a significant portion of its revenue, with each facility comprising unique manufacturing capabilities. The facilities are in locations that are difficult to replicate (given their access to water and specific permitting requirements) and house specialised equipment. Christopher Mertlitz, head of European investments at WP Carey, said: “This transaction speaks to our ability to execute complex, cross-border deals for high-value assets that align with our long-term investment philosophy. “In this high-rate environment, access to liquidity is key for companies to deliver on their core business objectives and broader growth strategies, making sale-leasebacks an attractive financing option.”