NEW YORK – November 14, 2006 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has purchased the corporate headquarters and manufacturing facility of Consolidated Systems, Inc. (“CSI”), located in Columbia, SC. The total purchase price was approximately $18.4 million.
W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global), acquired the facility and simultaneously entered into a long-term triple net lease with CSI. The facility serves as CSI’s corporate headquarters and houses the company’s deck manufacturing, coil coating and processing, trucking, and logistics operations.
Gino Sabatini, a Director at W. P. Carey, said, “We are pleased to have structured a transaction that addressed the future needs of the company and at the same time allowed the current cash value of the asset to be realized. The acquisition of this facility is consistent with our strategy of purchasing corporate properties that are critical to the tenant company’s business and integral to its ongoing operations.”
Louise Rogers Slater, Chairman of the Board of CSI, added, “Working with W. P. Carey enabled cash proceeds from the sale of the facility to be maximized while maintaining CSI’s control of the asset for operating purposes. Thanks to the combined corporate financing and real estate knowledge of the W. P. Carey team, the execution of the transaction was seamless and we accomplished our objective of using this asset to generate liquidity smoothly and efficiently.”
CONSOLIDATED SYSTEMS INC.
Consolidated Systems, Inc. (“CSI”) is an industry leader in steel fabrication and processing serving the construction and OEM Markets. CSI operates in three divisions: Consolidated Metal Products, which coats coils and processes metals, such as garage doors and lighting fixtures, with chemicals and paint; Metal Dek Group®, which manufactures structural metals that are used as roofs, floors and bridges in facilities such as schools, big box retail facilities, etc.; and Consolidated Cargo Carriers, Inc., which transports products to CSI clients. In addition to its headquarters and facilities in Columbia, SC, the company has facilities in Memphis, TN; Terrell, TX and Phoenix, AZ. www.csisteel.com
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global real estate investment firm. The Company provides asset management services to its CPA® series of income generating real estate funds. With over $4 billion in equity capital, the W. P. Carey Group is one of the largest providers of net lease financing for corporations worldwide. The Group owns more than 700 commercial and industrial properties in 13 countries, representing over 95 million square feet, valued at more than $8 billion. www.wpcarey.com
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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.
