Search
 

Insurance Firm Inks 979,000-SF Sale-Leaseback

HELSINKI, FINLAND-Pohjola Non-Life Insurance Co. Ltd. sells its headquarters here to New York-based WP Carey & Co. for $110 million and leases it back long term.

By Brian K. Miller | Updated on January 06, 2005

HELSINKI, FINLAND-As part of a plan to rebalance its investment portfolio, one of the largest insurance companies and financial institutions in Scandinavia has sold its 979,000-sf headquarters to New York-based WP Carey & Co. and leased back the facility on a long-term basis. Pohjola Non-Life Insurance Co. Ltd. receives $110 million (83.6 million euro) for the office building; the value of the leaseback was not immediately available, though a WP Carey source tells GlobeSt.com the length of the leaseback is 10.5 years.WP Carey acquired the asset on behalf of two of its publicly held, non-traded REITS. Corporate Property Associates 15 Incorporated will own a 60% share and Corporate Property Associates 16-Global Incorporated will own the remainder. The transaction, the first of 2005 for WP Carey, takes the company’s global portfolio to about 12.6 million sf. In July, on behalf of the same two Refits, WP Carey completed a sale-leaseback with TietoEnator, acquiring the company’s chief technology facility and a corporate office in Espoo, Finland, for approximately $97 million (72 million euro). The length and value of the leaseback was not available.WP Carey chief investment officer Edward LaPluma said at that time the company’s goal is to continue expanding its presence in the European market, where approximately 70% of corporations own their own real estate. “We anticipate an increase in our investment volume in the months ahead as more European companies realize the benefits [of sale-leaseback transactions],” said LaPluma.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.