Shelves leading up to the ceiling stacked with cardboard boxes in a warehouse

Cross-border sale-leaseback with European manufacturer

CentroMotion

W. P. Carey provides sale-leaseback financing to PE firm and portfolio company to help fund strategic expansion of other facilities and pay down debt 

Tenant Description: CentroMotion is a leading designer and manufacturer of highly engineered motion, actuation, control solutions and brake/friction materials to customers in the industrial and transportation end markets. 
Total Investment: $45 million
Transaction Type: Sale-leaseback*
Location: U.S. and Italy
Square Footage: 524,000 square feet
Facility Type: 2 industrial facilities 

In 2022, W. P. Carey completed a $45 million sale-leaseback of two industrial facilities in the U.S. and Italy net leased to CentroMotion, an established market leader in engineered vehicle and equipment systems which was acquired by One Rock Capital Partners in 2019. The facilities are mission-critical and contain more than $50 million worth of specialized affixed machinery, with each facility exclusively manufacturing certain of the tenant’s products. The two facilities total 524,000 square feet and are triple-net leased for a term of 20 years with fixed annual rent escalations. This transaction demonstrates W. P. Carey’s unique ability to work with tenants and sponsors to close complex, multi-asset, cross-border transactions. 

 

*In a sale-leaseback, a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.