WP Carey enters Italy with €300m Metro investment

The New York-listed real estate sale and leaseback specialist investment firm has completed the purchase of 20 cash and carry stores in middle and northern Italy.

WP Carey & Co, the New York-listed real estate sale and leaseback specialist investment firm, has made its first investment in Italy.

The firm announced today that it has purchased a fund containing a portfolio of 20 Metro Cash & Carry Italia stores in Italy in a deal valued at approximately €300 million.

The firm, which oversees a portfolio of real estate assets valued at approximately $11.5 billion, said it had acquired the fund on behalf of a subsidiary company of one of its publically-held non-traded REIT affiliates called CPA(R):17.

As part of the transaction, Metro Italy, a wholly-owned of subsidiary of German cash & carry business Metro, has signed leases on the 20 properties, predominantly located in middle and northern Italy. The leases have been underwritten by the parent company.

WP Carey said the transaction brought the total invested by the firm in Europe to €600 million and the total value of its assets under management outside of the US to about $3.5 billion.

Jennifer Lucas, director at WP Carey & Co said: “In the case of the Metro Italy transaction, the combination of a strong German parent company and assets critical to their Italian Cash and Carry business is consistent with WP Carey’s established investment criteria and disciplined risk management approach.”