To use a tired old industry cliché, it was a win-win deal for buyer and seller.
The buyer: W.P. Carey & Co., a longtime New York City-based investor-developer-landlord of commercial properties in the U.S. and abroad.
The seller: C1000 BV, the second-largest food retailer by sales in the Netherlands.
The sale deal: W.P. Carey pays C1000 BV $209.3 million in U.S. cash (155 million Euros) for all six of the Dutch firm's logistics facilities.
The lease-back deal: C1000 BV leases back the six properties for 15 years. The triple-net lease means that although W.P. Carey is the owner, C1000 is responsible for paying for upkeep, any modernization of the facilities and property taxes.
The benefits to W.P. Carey: The sale-leaseback specialist grows its European portfolio to 266 properties in 16 countries, comprising 32 million square feet of space and valued at about $3.2 billion, according to the company's website.
A leaseback is very simple really. Sometimes known as a sale-leaseback or sale and leaseback, it is a transaction wherein the owner of a property sells that property and then leases it back from the buyer. The purpose of the leaseback is to free up the original owner's capital while allowing the owner to retain possession and use of the property. The type of property involved can be anything from residential or commercial real estate to equipment or vehicles.
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