NEW YORK, NY – April 23, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has acquired and leased-back the soon-to-be-completed corporate headquarters and warehouse/distribution center from Miami-based Blackstone Inc., one of the country’s largest independently owned prepaid marketing and distribution companies for approximately $22 million.
The facility, currently under construction in Miami, FL, will be leased under a 20-year bond-type net lease. It totals more than 270,000 square feet and is expected to be completed by the fall of 2003. The facility was purchased on behalf of Corporate Property Associates 15 Incorporated (CPA®:15) part of the $5 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs).
“We were pleased to complete this sale-leaseback transaction with one of the leading independent prepaid calling card distributors in the world,” said Anne R. Coolidge, a Managing Director at W. P. Carey. “This financing transaction will provide Blackstone with additional capital to maintain its leadership position in the $6.5 billion prepaid phone card industry. By completing this sale-leaseback, Blackstone’s talented management team has shown that they understand the advantages of this alternative form of financing and we look forward to a long-term relationship with them.”
Joaquin Fernandez, Blackstone’s Chief Financial Officer, said, “Securing alternative financing with W. P. Carey, a leader in the net lease financing industry, made perfect sense for our rapidly expanding company. As we continue to increase our sales and diversify our product offerings, this new facility will enable Blackstone to realize its goals.”
This latest acquisition adds to W. P. Carey's growing managed portfolio of properties in Florida and the greater Miami area, which consist of approximately 2.4 million square feet. The properties, which are owned by W. P. Carey & Co. LLC and its affiliates, include previous warehouses, distribution centers, corporate offices, hotels, movie theaters and retail centers leased to AutoZone, Inc., Bell South Entertainment, Inc., Childtime Childcare, Inc., Courtyard by Marriott, Danka Office Imaging Company, Detroit Diesel Corporation, MBM-Beef, PETsMART, Inc., Rave Reviews Cinemas and Trends Clothing Corporation, Wellbridge and Winn-Dixie Stores, Inc.
A pioneer of the prepaid telecommunications industry, Blackstone (www.blackstoneonline.com) is currently one of the country’s largest providers of prepaid products and services through over 300,000 retail locations nationwide. Established and headquartered in Miami, Florida since 1995, Blackstone provides innovative solutions to local, national and international companies seeking to maximize their full potential – from calling cards, POS terminals, merchant processing, marketing & distribution to self-service, interactive kiosks – Blackstone offers a complete array of services to design, integrate and maintain high-impact, strategic business solutions via our global network of alliances and resources.
CPA®:15 invests in single-tenant commercial properties which are typically purchased under a long-term, triple-net lease in which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. CPA®:15 currently has an ownership interest in 88 facilities net-leased to 27 tenants comprised of more the 12.7 million square feet throughout the U.S. and Europe.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The firm and its affiliates continue to be the leading lessors of net leased corporate real estate in the United States. As the largest publicly traded limited liability company in the world, the company owns and/or manages more than 550 commercial and industrial properties throughout the United States and Europe comprised of more than 75 million square feet.
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission.
