Expansion funding in Portugal for leading food retailer
Sonae MC
W. P. Carey provides growing tenant with build-to-suit expansion funding for its mission-critical facility following initial acquisition in 2018
Tenant Description: Founded in 1985, Sonae MC is one of the largest Portuguese food retailers.
Total Investment: $38 million
Transaction Type: Build-to-suit expansion*
Location: Portugal
Square Footage: 843,000 square feet
Facility Type: Distribution facility
Green Features: BREEAM "Very Good" environmental certification
In 2018, W. P. Carey completed the $50 million acquisition of a mission-critical facility and warehouse for Sonae MC, one of the largest Portuguese food retailers. The facility is located in the Azambuja logistics park, Portugal’s prime logistics hub, and is Sonae’s only warehouse in the region with cold storage for perishable food products. Shortly after the transaction was completed, W. P. Carey agreed to fund an additional $28 million to expand the facility by 300,000 square feet. In designing and building the expansion, the ambition was to build a warehouse that both improved the tenant’s logistics operations and also reduced its carbon footprint. Construction was completed in 2020, bringing the total square footage to 843,000 square feet and featured 7,000 solar panels on the rooftop, generating an estimated 4,000MWh annually and covering approximately 30% of the electricity consumption required for the property. This construction enabled Sonae to execute on its strategic growth plans and meet rising consumer demand. The expansion also received a LEED gold certification for its environmental features.
*In a build-to-suit, W. P. Carey funds and manages the construction of a new facility or the expansion of an existing one custom-built to meet the unique specifications of a prospective or existing tenant. Upon completion of construction, the company enters into a long-term net lease with W. P. Carey, while securing full operational control of the new or expanded facility.