W.P. Carey enters into 18-year triple net lease with Astellas Institute.
W. P. Carey has entered into a new triple net lease agreement with the Astellas Institute for Regenerative Medicine for W. P. Carey's 251,000-square-foot office building in Westborough, MA. As part of the new lease, the existing two-story office building will be converted into a state-of-the-art life sciences facility and serve as AIRM's R&D headquarters. AIRM is an indirect wholly-owned subsidiary of Tokyo-based Astellas. The lease will commence in September 2018 and construction will begin shortly thereafter. Construction conversion costs are expected to total more than $90M and will be jointly funded by W. P. Carey and AIRM. An 18-year triple net lease with AIRM will commence in September 2018 after the current tenant vacates the property. W. P. Carey has agreed to fund up to $56M in construction and leasing costs at an attractive incremental yield. The facility is located within the greater Boston area.