W. P. Carey Inc. (W. P. Carey, NYSE: WPC) has announced that its Board of Directors has unanimously approved a plan to spin off 59 of its office properties into Net Lease Office Properties (NLOP), so that it will become a separate publicly traded REIT (the Spin-Off). The Spin-Off is expected to close on or around November 1, 2023, subject to the satisfaction of certain conditions.
In addition to US$169 million of existing mortgage debt outstanding to be assumed by NLOP, NLOP has also entered into a new US$455 million debt facility with J.P. Morgan, which was executed by NLOP and is expected to be funded upon the consummation of the Spin-Off, subject to conditions. Approximately US$350 million is expected to be transferred by NLOP to W. P. Carey in connection with the Spin-Off.
Latham & Watkins LLP is advising W. P. Carey on the Spin-Off and related financing with a corporate deal team led by partners Michael Haas, Darren Guttenberg, Betsy Jaffe, Bill Cernius, Julian Kleindorfer, and Justin Elliott, and counsel Shira Bressler, with associates Nicole Stauffer, Andrew Bentz, and Gregory Van Buiten.