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W. P. Carey Will Become $6B Larger Post-Merger
The boards of net lease REIT W. P. Carey Inc. and Corporate Property Associates 17—Global Incorporated, a publicly held, non-traded REIT which WPC advises, have approved a stock-for-stock merger valued at about $6 billion. The combination is subject to approval by shareholders of both WPC and CPA:17.
It was through its 2012 merger with an earlier non-traded vehicle, CPA:15, that WPC achieved greater scale and converted to a REIT. The latest combination, said WPC CEO Jason Fox, “simplifies our business, and effectively transforms W. P. Carey into a pure-play net lease REIT with earnings derived almost entirely from higher-multiple lease revenues.”
Along with creating value “by reweighting our earnings mix and enhancing our credit profile,” the CPA:17 merger represents “a unique and compelling opportunity to acquire a large portfolio of high-quality assets well-aligned with our existing portfolio at a favorable cap rate,” Fox added.
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