W. P. Carey has signed an agreement with Borghese Logistics for the expansion of Nippon Express logistics facility in the Netherlands.As per terms of the deal, the partnership will expand an existing logistics facility located in the Port of Rotterdam area in the country.
W. P. Carey Managing Director Greg Butchart said: “W. P. Carey’s ability to invest additional capital in the existing facility allowed us to meet Nippon’s expansion needs while also investing in a sustainable asset.“Leasing them additional space tailored to their needs on attractive economic terms enhances the value of the asset and makes the investment advantageous for all parties.”
At present, the logistics facility is leased to Nippon Express Nederland, the European subsidiary of third-party logistics provider, Nippon Express.
The expansion project will add around 350,900ft² (32,600m²) of space, which will be divided into 338,918ft² (31,487m²) of warehouse and 14,321ft² (1,130m²) of office space. P. Carey intends to complete the expansion project by July 2019, and will be leased to Nippon for a period of 10 years.
The expanded facility is situated in the Maasvlakte submarket, which is an entry point to and one of the three major logistics submarkets of the Port of Rotterdam.In December 2015, W. P. Carey acquired the logistics facility in the Port of Rotterdam for $43m.
The logistics facility was acquired from Borghese Logistics, which completed construction and leased the location to Nippon.The Port of Rotterdam Authority distribution and warehousing director Danny Levenswaard said: “The Port of Rotterdam Authority welcomes W. P. Carey’s expansion of the facility, which is leased to and operated by Nippon Express Netherlands and which will lead to the warehouse being the largest in the Port of Rotterdam.”
W. P. Carey is a real estate investment trust (REIT), which invests in single-tenant industrial, warehouse, office and retail properties in North America, and Northern and Western Europe.