W. P. Carey Inc. has announced its plan to divest from office assets by creating a spin-off company, Net Lease Office Properties, and implementing an asset sale program for the remaining 87 properties under W.P Carey’s ownership.
The spin-off is expected to be finalized on November 1, 2023, while all sales through the Office Sale Program are targeted for completion by January 2024. This strategic move aims to monetize W.P Carey’s office portfolio and increase its focus on warehouse and industrial assets.
In addition to assuming $169 million in existing mortgage debt, NLOP has secured a new $455 million debt facility with J.P Morgan that will be funded upon completion of the Spin-Off (subject to certain conditions). As part of this transaction, approximately $350 million will be transferred from NLOP back to W.P Carey.
