W.P. Carey Inc (NYSE:WPC)’s non-traded REIT affiliate CPA: 18 – Global has bought five self-storage facilities in five separate transactions. The total value of acquiring five properties is valued at $32 million and is inclusive of acquisition costs. The five properties are located in California, Hawaii, South Carolina, Florida and Texas. All the five-storage facilities bought are done as per the income-focused strategy.
W.P. Carey Inc (NYSE:WPC) is active in the industry of self-storage since 2004. It owns self-storage assets of 158 properties spreading at 9.6 million net rentable square feet. The newly acquired facilities are located in strong markets and expand the global presence of the company in key markets.
The area covered by the five facilities in terms of Square footage/units are: Palm Desert Facility covers 93,098/798, Miami facility covers 57,240/598, Corpus Christi Facility covers 100,100/641, Kailua-Kona Facility covers 39,500/366 and Columbia facility covers 63,121/442 net rentable square feet/units. W.P. will use strong property management skills and will provide extra space storage in all five properties.
The management view
Liz Raun Schlesinger, MD of W.P. Carey Inc (NYSE:WPC), said that the acquired properties are lucrative investments added in CPA®:18 – Global’s portfolio. The five facilities will add to the revenues, growth and bottom-line of the company. The existing management structure will result in fulfillment of operational synergies. The investments will bring benefits to investors in long-term. W.P. Carey Inc (NYSE:WPC) is working to get extra space storage in the new facilities. It has got management and the resources to manage the assets well adding value to the assets in long-term.
The future ahead
The self-storage industry has remained strong even in bad economic times. The five-year compounded annual return of the self-storage industry is more than 29%. The tough economic conditions post-recession has prompted people to reside in smaller spaces, thus leading to a higher need for storage units.