The New York-based investment firm W P Carey has purchased four manufacturing facilities from US bakery Best Brands in a $50 million sale-leaseback acquisition.
The industrial properties, which each contain manufacturing, warehousing and refrigerated warehousing and total 665,000 square feet, are located in Colton, California; Dallas, Texas; Bonner Springs, Kansas and Eagan, Minnesota.
The deal was made through W P Carey’s 15th managed fund, Corporate Property Associates: 16-Global, which specializes in purchasing single-tenant commercial and industrial properties and leasing them back to the occupier.
Best Brands chief executive officer Scott Humphrey said in a statement the sale-leaseback allowed the specialty bakers to “access the value tied up in a number of our key real estate assets and redeploy that capital in our core business.”
Gino Sabatini, executive director at W P Carey, added the sale-leaseback deal was key to companies, such as Best Brands, in the current liquidity crisis “when other sources of capital are limited.
“We view Best Brands as a strong industry player. In addition because the facilities acquired are critical to their operations, the acquisition is consistent with our core investment philosophy of investing in key assets of well managed operating companies”, he added.
Best Brands is a manufacturer and distributor of specialty bakery products, specializing in frozen laminated dough, frozen baked cakes, frozen muffins and bakery mixes, as well as other bakery products sold to in-store bakeries and institutional baking clients such as Wal-Mart, Sam’s Club, Starbucks and Costco.