Welcome!

News Feed Item

W. P. Carey Inc. Completes $114 Million Acquisition of Total's Norwegian Headquarters

Net lease investment in French energy giant's Norwegian HQ adds to global portfolio

NEW YORK, Aug. 7, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net lease properties, announced today that it has acquired the headquarters of Total E&P Norge AS (Total Norway) in Stavanger, Norway, for approximately $114 million (NOK 716 million) after tax adjustments and transaction costs.  The seller was Norwegian real estate investment company and developer, Norwegian Property ASA (NPRO). 

W. P. Carey Inc. completes acquisition of Total E&P Norge AS’s Norwegian headquarters. The facility is located in Stavanger, Norway and was acquired for approximately $114 million after tax adjustments and transaction costs.

Key facts:

  • Strong credit tenant: Total Norway is the wholly-owned Norwegian operating subsidiary of French oil and gas supermajor Total SA. The company is involved in the exploration and production of oil and gas on the Norwegian Continental Shelf and contributes approximately 10% of Total Group's global oil and gas production. In 2013, Total Norway generated revenues of $7.5 billion (NOK 45 billion) and net income of $1.1 billion (NOK 6.8 billion). Total SA is rated AA-/Stable (Standard & Poor's).

  • Critical asset: Total Norway has been headquartered at this facility since its construction in 1975 and has completed several refurbishment initiatives and expansions of the property throughout the years. Total Norway has shown its ongoing commitment to the facility by signing a 17-year lease extension upon completion of its most recent expansion in June 2014.

  • Strategic location: Stavanger is considered the oil capital of Europe and the center for North Sea oil exploration. The facility is strategically located adjacent to the established Dusavik supply port, the first and one of only two supply ports in Stavanger catering to the North Sea oil fields.

  • Strong market: An estimated 56% of Norway's oil and gas reserves remain on the Norwegian Continental Shelf; as such, the petroleum industry will be a core part of Norway's economy for the foreseeable future. Norway is rated Aaa (Moody's) and AAA (Standard & Poor's) and maintains one of the world's largest sovereign wealth funds totaling approximately $1 trillion (NOK 6.3 trillion).

Quotes:

Arvi Luoma, Director of W. P. Carey, commented:

"The acquisition of Total Norway's headquarters marks our second high profile transaction in Norway this year, following CPA®:18 -- Global's purchase of  Siemens' new Norwegian headquarters in Oslo."

"In line with our investment strategy, we have acquired a mission critical asset with a long-term commitment from Total Norway, underscored by Total Norway's significant contribution to the Total Group's global oil and gas production. The importance of the oil and gas industry to Norway, in conjunction with Total SA's position as an oil supermajor and a highly rated creditor, further enhances the strength of this addition to W. P. Carey's global net lease portfolio.  Additionally, we were pleased to be able to provide liquidity to NPRO, enabling them to execute on other investment and development opportunities."

Olav Line, Chief Executive Officer of NPRO, noted:

"We are delighted to complete this transaction with W. P. Carey.  Asset rotation is a key part of our strategy and the sale of this significant asset provides us capital that we can redeploy in other opportunities.  W. P. Carey's financial strength, global expertise and their ability to work with us in Norway as well as their recognition of the value of the long-term lease with Total Norway made them an ideal counterparty in this transaction."

W. P. Carey Inc.

Please visit www.wpcarey.mediaroom.com for more information about W. P. Carey, to access our image and video libraries and to follow us on social media.

This press release contains forward-looking statements within the meaning of the Federal securities laws.  The statements of Mr. Luoma are examples of forward looking statements. A number of factors could cause W. P. Carey's actual results, performance or achievement to differ materially from those anticipated.  Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated.  For further information on factors that could impact W. P. Carey, reference is made to its filings with the Securities and Exchange Commission.

Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995    
[email protected]

Media contact:
Guy Lawrence
Ross & Lawrence
212-308-3333   
[email protected]

W. P. Carey Inc. Logo.

 

Photo - http://photos.prnewswire.com/prnh/20140805/133842   
Logo - http://photos.prnewswire.com/prnh/20130604/NY25517LOGO-b       

SOURCE W. P. Carey Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Security, data privacy, reliability, and regulatory compliance are critical factors when evaluating whether to move business applications from in-house, client-hosted environments to a cloud platform. Quality assurance plays a vital role in ensuring that the appropriate level of risk assessment, verification, and validation takes place to ensure business continuity during the migration to a new cloud platform.
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager - Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, reviewed next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discussed how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has been engaged in t...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...