The hotel is under a long-term net lease
-- A 15-year triple net lease by the hotel operator, with the lease also guaranteed by Club Méditerranée SA
London, Jan. 6, 2015 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net lease REIT (real estate investment trust) that specializes in corporate sale-leasebacks, customized build-to-suit construction financing and single-tenant net lease property acquisitions, today announced that CPA:18 Global, a fund advised by the company, has agreed to acquire the 266-room La Plantation d'Albion Club Med resort hotel located in Albion, Mauritius for approximately €59 million.®:18 -- Global has agreed to acquire the 266-room La Plantation d'Albion Club Med resort hotel located in Albion, Mauritius for approximately €59 million.
Image: http://photos.prnewswire.com/prnh/20150102/166668
The property is currently on a triple net lease to Holiday Village Management Services Ltd, a subsidiary of Club Méditerranée SA (also known as Club Med -- "Club Méditerranée," CU:EN Paris) for an initial term of 15 years. The lease is guaranteed by Club Méditerranée, the pioneer of the all-inclusive resort concept.
Key Facts
- Premium Resort Property:La Plantation d'Albion in Mauritius features 226 guest rooms and suites, two gourmet restaurants, three ocean-view bars, two beaches and a fitness club, as well as three large swimming pools, a mini-golf course and a range of tennis courts. The resort is classified as a five Trident property, the highest quality rating achievable among Club Méditerranée's global portfolio.
- Strategically Located Property:Mauritius is an island nation in the Indian Ocean, approximately 2,000 kilometers off the southeast coast of the African continent. La Plantation d'Albion is situated on 53.4 acres of natural tropical woodland. Its location on the northwest coast of Mauritius Island supports Club Méditerranée's strategy targeting the premium consumer market and its growing focus on the expanding Asian travel market.
- Robust International Investment:La Plantation d'Albion is one of only two Club Méditerranée properties worldwide with a five Trident classification. Despite broader global economic volatility since its development in 2007, the resort has demonstrated consistent performance. Its focus on the premium consumer market and pricing structure enable it to generate stable investment returns. Mauritius ranks 20th in the World Bank’s Ease of Doing Business Index, which evaluates economies based on how conducive their regulatory environment is to starting and operating a business.
- Euro-Denominated Inflation-Protected Triple Net Lease:The lease for La Plantation d'Albion has a 15-year term. Rent is paid in euros, with annual rent escalations linked to the European Consumer Price Index. The lease is guaranteed by Club Méditerranée, the leader in premium all-inclusive resort spaces, which owns, leases and manages 66 resorts and one cruise ship, with nearly 46,000 beds and related facilities.
Management Commentary
Jason Fox, Managing Director and Co-Head of Global Acquisitions at W. P. Carey (Jason Fox) said:
"This transaction provides CPA:18 Global with the opportunity to acquire an international branded, premium beachfront resort property in a leading travel destination. The execution of this deal demonstrates our ability to access a broad range of global investment opportunities that meet our established investment criteria, thereby creating long-term value for CPA:18 Global’s investors. La Plantation d'Albion is an asset with stable cash flows and a triple net lease structure designed to deliver inflation-linked returns, and we are pleased to enhance the global diversification of the CPA:18 Global portfolio with this acquisition."®:18 - Global presents an opportunity to acquire high-end international branded beach resort properties in leading travel destinations. This transaction demonstrates our ability to access a broader range of global investment opportunities that meet our existing investment criteria, thereby creating long-term value for CPA®:18 - Global investors. La Plantation d'Albion is an asset that generates stable cash flow and has been structured as a triple net lease designed to deliver inflation-linked investment returns. We are pleased to enhance the global diversity of the CPA®:18 - Global portfolio with the addition of this asset.”
Roger Hensman (Roger Hensman), who advised on the transaction, added:
"W. P. Carey’s global investment perspective and experience enabled them to recognize the value of this acquisition, making the newly acquired Mauritian hotel an attractive addition to the CPA:18 Global portfolio. Given the quality of the asset and the strength of Club Méditerranée as a leading owner and operator of resort properties, combined with the triple net lease structure, this opportunity is highly aligned with W. P. Carey’s existing investment criteria."®:18 - A compelling new addition to the Global portfolio. Given the quality of the asset, the strength of Club Med as a well-established owner and operator of resort properties, and the triple net lease structure, this opportunity closely aligns with W. P. Carey’s existing investment criteria.”
AboutW. P. Carey Inc.
For more information about W. P. Carey, visit our photo and video galleries, and follow us on social media, please go to www.wpcarey.mediaroom.com.
This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. The statements made by Mr. Fox and Mr. Hensman are examples of forward-looking statements. A number of factors could causeCPA®:18 Global’s actual results,performance or achievements to differ materially from those anticipated. These risks,trends and uncertainties include the general economic climate, the supply and demand for office and industrial real estate, interest rate levels, the availability of financing, other risks associated with the acquisition and ownership of properties, including risks that tenants may not pay rent or that costs may be greater than expected, as well as risks related toCPA®:18 Global’s stock offering. For details on the factors that may affect CPA®:18 Global, please refer to the relevant filings that CPA®:18 Global has submitted to the U.S. Securities and Exchange Commission (Securities and Exchange Commission).
W. P. Carey Inc. Contact:
Europe
Dan de Belder/ Emma Kent/Kashara Taylor
Phone: +44-203-772-2500
Email: ddebelder@bell-pottinger.com
United States
Guy Lawrence
Phone: +1-212-308-3333
Email: gblawrence@rosslawpr.com
Kristina McMenamin
Phone: +1-212-492-8995
Email: kmcmenamin@wpcarey.com
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