W. P. Carey announces strategic plan to exit office sector
Investors - SEPTEMBER 21, 2023

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W. P. Carey announces strategic plan to exit office sector

by Andrea Zander

W.P. Carey has unanimously approved a plan to exit the office sector and divest the office assets within its portfolio.

The firm plans to spin off 59 office properties into a separate publicly traded REIT, Net Lease Office Properties (NLOP). And the firm will implement an asset sale program to dispose of 87 office properties retained by W. P. Carey.

The spinoff is expected to close on or around Nov. 1, 2023, subject to the satisfaction of certain conditions, and all sales under the office sale program are targeted to be completed by January 2024.

The vast majority of the office properties that will be owned by NLOP are located in the United States, with the balance in Europe. NLOP’s portfolio will consist of 62 corporate tenants operating in a variety of industries, generating ABR of more than $141 million as of June 30, 2023.

In addition to $169 million of existing mortgage debt outstanding to be assumed by NLOP, NLOP has also entered into a new $455 m

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