W.P. Carey, CPA:17 To Merge In $6B Deal

NEW YORK CITY–Net lease REIT W.P. Carey and Corporate Property Associates 17 – Global Incorporated (CPA:17 – Global) announced they have entered into a definitive merger agreement. The deal between the two related parties — W.P. Carey is CPA:17’s advisor — is valued at $6 billion and has been approved by a special committee of CPA:17 – Global’s independent directors.

The merger is expected to close in the fourth quarter of 2018, subject to the approval of stockholders. W. P. Carey is the second largest net lease REIT and, after the close of the transaction, will be one of the largest REITs — placing in the top 25 in MSCI US REIT Index — with pro forma enterprise value of $17.3 billion.

According to the merger agreement, CPA:17 – Global stockholders will receive a fixed exchange ratio of 0.160 shares of W. P. Carey common stock for each share of CPA:17 – Global common stock, equivalent to $10.72 per share based on W. P. Carey’s closing share price of $67.03 as of June 15, 2018. The W. P. Carey shares issued in the merger will be listed on the New York Stock Exchange at the time of issuance.

The merger agreement also allows CPA:17 – Global to solicit and enter into negotiations from third parties on alternative proposals for a period of 30 days continuing through July 18, 2018.

“This transaction provides CPA:17 – Global stockholders with liquidity as well as the opportunity to hold their shares in a company that has a similar investment profile and income strategy they have become accustomed to,” said Jason Fox, W. P. Carey’s CEO in a prepared statement. “It also provides W. P. Carey – the surviving company – with the opportunity to purchase a high quality portfolio as well as accelerate its strategy to focus exclusively on net lease investing for its balance sheet and simplify its business.”