WP Carey: Europe SLBs Grow as Strategy

LONDON-Once perceived as a last resort for companies seeking finance, the benefits and flexibility of sale-leaseback are now widely acknowledged and it is regarded not just as an alternative but in many cases a preferable source of financing, says H. Cabot Lodge III, Head of European Investment for W.P.Carey.

He says the segment has seen a resurgence in popularity, with a number of high profile sale-leaseback deals including London’s Liberty’s department store and HSBC’s Canary Wharf headquarters, and KarstadtQuelle’s $5.8 billion German store portfolio. “The potential for growth in Europe is immense; the estimated value of European real estate assets still in the hands of corporates is thought to be around $2.9 trillion – 12 times the average annual European real estate investment turnover in the last five years.