W.P. Carey Buys $178M Netherlands Retail Portfolio

By IvyLee Rosario

Intergamma location

W.P. Carey has acquired a 36-property Do-It-Yourself retail portfolio in the Netherlands from CRH plc for $178 million. The assets are triple-net leased to the Dutch DIY company Intergamma B.V., for a lease average of 15 years. This deal comes off the heels of Intergamma’s purchase of another DIY retailer, Van Neerbos Bouwmarkten. 

Intergamma and its franchisee-shareholders will be operating under the Gamma and Karwei brands, represented the leading DIY retailer in the Netherlands. The portfolio comprises 1.5 million square feet of leasable space, featuring 80 percent of Intergamma’s owned retail footprint. The locations are regional across the Netherlands with a concentration in the Randstad area, home to Amsterdam, Rotterdam and The Hague. 

European portfolio expansion 

“The Intergamma transaction demonstrates W. P. Carey’s commitment to the diversification and strategic growth of our net lease real estate portfolio. Our ability to structure and close a complex deal of this size and scope in conjunction with our tenant’s acquisition of DIY retailer, Van Neerbos Bouwmarkten, helps distinguish us from others in the market,” Arvi Luoma, head of European Investments at W.P. Carey, told Commercial Property Executive. “The Netherlands continues to offer some of the most promising opportunities for stable, long-term yields through the acquisition of critical assets that meet our established investment criteria and are consistent with our broader diversification strategy.”

Earlier this month, the firm purchased a $188 million Denmark-based industrial portfolio of 14 logistic properties and one corporate headquarters, totaling nearly 2 million square feet. The portfolio is triple-net leased to freight carrier Danske Fragtmænd. It has an annual rent escalation tied to Danish CPI and a remaining term of nearly 18 years.

Image courtesy of W.P. Carey