Carey Buys Danka Properties in $31M Sale-Leaseback Deal

ORLANDO-New York-based W.P. Carey & Co. LLC has acquired Danka Business Systems PLC’s two office buildings and a warehouse aggregately totaling 337,000 sf in St. Petersburg, FL for $31.4 million or about $93.18 per sf.

It was a deal Danka had to make and the sort of sale-leaseback deal Carey has been making for 29 years. Danka is leasing back the properties under a 15-year, triple net lease until it can build its global headquarters in St. Petersburg.

“Danka came to us with two requests,” Carey vice president Alistair Calvert says in a prepared statement. Danka needed “to raise capital to pay off a tax retention operating lease and to provide financing for the completion of their worldwide headquarters.” Calvert says Carey “successfully accommodated both (needs) in a single transaction.”