Sale & Leaseback specialist, WP Carey Inc. (NYSE: WPC), has announced the purchase of a portfolio of 26 properties for rent, located in different parts of Spain, for a total value of €130 million. The tenant, Mémora Servicios Funerarios, S.L. (Mémora), is the main provider of funeral services in Spain and Portugal and has signed a triple net lease for a term of 30 years. CBRE has advised the vendor.
Founded in 1997, Mémora has grown to become the largest provider of funeral services in Spain and Portugal, with a workforce of approximately 1,500 employees and 131 funeral homes and crematoriums, 16 cemeteries and 42 offices throughout the region. The portfolio represents an important part of the funeral company’s footprint, with most of the assets located in Barcelona and the surrounding cities, where the tenant has approximately 35% of the market share.
Mémora is committed to reducing the environmental impact of the funeral process and 45% of the portfolio has an «Excellent» rating according to the BREEAM certification. In addition, the company has contributed to the design and development of the first European certification of ecological funeral services. Green funerals reduce greenhouse gas emissions by a minimum of 30%.
Christopher Mertlitz, Director of European Investments at W. P. Carey, has said: “We are excited to be involved in what we hope will be one of many bespoke investments with Mémora, which continues to grow its market share across the Iberian Peninsula. Mémora’s strong position in the Iberian market, coupled with the importance of these assets and long-term leasing, have made this transaction a perfect fit for our investment criteria, while expanding the diversity of our European portfolio. Spain represents an important market for W. P. Carey, who has invested approximately €860 million in the region since the first transaction in 2009. We look forward to a long-term partnership with Mémora, as the company continues to serve the Iberian society.”
Juan Jesús Domingo, CEO of Mémora, said: «Today’s announcement marks the beginning of a long-term strategic collaboration that helps accelerate the growth and expansion of the Mémora Group while continuing our plans to open new facilities during the next decade. W. P. Carey, recognized specialist in the real estate market, has the necessary experience and capital to help us continue maximizing the value of our funeral homes throughout Spain. Our long-term commitment to this portfolio of strategically located assets and the stability of our company in the Peninsula markets have facilitated this partnership with W. P. Carey to implement this long-term lease real estate transaction.”