W. P. Carey's financing will deliver 100 proc. of the funds needed for the construction of an approximately 11,000 sq m (36,089 sq ft) light-industrial warehouse located in Zary, Poland.
Located close to the German border and the major centres of Berlin and Dresden, the Zary facility will be leased on a long-term, triple-net basis to the Polish subsidiary of syncreon. The new facility will be a key location to support syncreon's growth strategy.
Headquartered in Auburn Hills, Michigan, syncreon is a global contract logistics and supply chain management company that provides specialized transportation, inbound, outbound, reverse, and fulfillment logistics services.
- Economic uncertainty continues to constrain European credit markets; however, W. P. Carey as a long term investor has demonstrated that it can provide the financing companies need to construct and develop new facilities in both up and down market cycles. - said Jeffrey Lefleur, Managing Director of W. P. Carey.
- This is our third transaction with W. P. Carey in Poland, and it confirms our belief that they bring tremendous value-add on projects where traditional construction financing is difficult to obtain. As we continue to develop facilities on behalf of clients in Europe and other parts of the world, our ability to streamline the financing process by partnering with long term investors like W. P. Carey will remain a significant factor for us when competing on future tenders. - commented Robert Dobrzycki, Managing Partner of Panattoni Europe, the developer on the project.
Build to suit financing allows developers and companies to fund 100 proc. of development costs for corporate facilities while simultaneously locking in permanent long term financing. In the current uncertain economic and interest rate environment, securing long term capital prior to construction enables developers and corporations to avoid the risk of uncertain financing terms upon completion.