**W. P. Carey to Reclaim 12 Store Leases from German Retailer Hellweg**
W. P. Carey Inc. (WPC), a net lease real estate investment trust, announced it has reached an agreement with German home improvement retailer Hellweg to take back control of 12 store leases. The agreement includes the early termination of leases on seven locations by September 2025, with the remaining five to follow by September 2026.
According to the company’s recent business update, Hellweg — WPC’s fifth-largest tenant — continues to meet its rent obligations but is grappling with a difficult operating environment. The challenges include weak consumer spending in Germany and stiff competition in the national do-it-yourself retail sector. As part of its turnaround strategy, Hellweg is working to improve liquidity in collaboration with key stakeholders such as landlords and lenders.
To mitigate the financial impact of the lease terminations, WPC is in active negotiations with new operators to take over eight of the locations. The REIT aims to secure tenants at comparable rent levels before the leases with Hellweg officially end. Additionally, discussions are underway for the potential sale of the remaining four stores.
This strategic move is intended to maintain stability in WPC’s portfolio and preserve its adjusted funds from operations despite the exit of a major tenant.
