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W. P. Carey to Spin Off 59 Office Properties
W. P. Carey Inc. has announced a plan to exit its office assets by spinning off 59 office properties into Net Lease Office Properties and implementing an asset sale program for the 87 office properties retained by W. P. Carey.
The spin-off is expected to close around November 1, 2023, while all sales under the Office Sale Program are targeted to be completed by January 2024. This move is part of a strategic effort to monetize its office portfolio and increase its portfolio’s weighting towards warehouse and industrial assets.
Aside from the $169 million in existing mortgage debt that NLOP will take on, NLOP has secured a new $455 million debt facility with J.P. Morgan. This facility, executed by NLOP, is anticipated to be funded upon the completion of the Spin-Off, pending specific conditions. As part of the Spin-Off, roughly $350 million is projected to be transferred from NLOP to W. P. Carey.
- ◦Sale/Acquisition
