Net lease real estate investment trust W.P. Carey has added seven DIY retail stores in Poland to its portfolio.
The NYSE-listed company has bought the newly built assets totalling 70,000sq m from private real estate firm Supernova Group for an undisclosed sum. The stores are triple-net leased to OBI for a term of 15 years with Eurozone CPI-based rent increases.
W.P. Carey acquired the assets from the Austrian Supernova Group, a private real estate company focused on high-quality retail properties in Central and Eastern Europe. Following this acquisition, WP Carey will own 25 OBI retail stores across Poland.
Christopher Mertlitz, the Head of European Investments at W.P. Carey, said: “We are excited to build on our existing relationship with OBI and add seven high-quality DIY retail assets to our portfolio. DIY retail continues to remain attractive as an asset class due to its resiliency and the fact that it has remained largely insulated from e-commerce disruption. Within retail, our investment activity is generally focused on essential retail assets in Europe, where we see more compelling opportunities given higher barriers to entry and lower retail square footage per capita relative to the US, coupled with more favourable supply fundamentals and pricing dynamics.”