NEW YORK, NY, March 16, 2006 - W. P. Carey International LLC, an affiliate of investment firm W. P. Carey & Co. LLC (NYSE: WPC), announced today that it has entered into agreements to acquire and lease back 18 facilities from OBI AG, the fourth largest Do-It-Yourself (DIY) retailer in the world, for a total purchase price that is expected to be approximately $200 million. The transaction is expected to close March 30, 2006.
The 18 facilities are located throughout Poland and include 15 existing retail stores including the Polish headquarters in Warsaw, two stores under construction and one build-to-suit retail site. Currently, OBI operates stores in Austria, Bosnia-Herzegovina, the Czech Republic, Germany, Hungary, Italy, Poland, Russia, Slovenia, and Switzerland. OBI plans to use these funds to further expand its footprint throughout Central and Eastern Europe.
The transaction represents W. P. Carey's continuing growth into the European marketplace on behalf of its managed Corporate Property Associates (CPA®) series of income generating real estate investment funds. W. P. Carey is entering into this transaction on behalf of CPA®:15 and CPA®:16 - Global, both members of the $7.4 billion W. P. Carey Group. CPA®:16 - Global will own 25% of the portfolio, while CPA®:15 will own the remaining 75%.
Wm. Polk Carey, Founder and Chairman of W. P. Carey & Co., said, "W. P. Carey has been a leading player in the U.S. sale-leaseback financing arena for over thirty years, and approximately ten years in Europe. We are delighted to embark upon our long-term partnership with OBI. This financing has enabled OBI to focus on its retailing business while realizing the value of its real estate assets."
Sergio Giroldi, CEO of OBI AG said, "We are committed to growing our operations throughout Central and Eastern Europe. In an effort to achieve these goals we reviewed several corporate financing options. We chose the sale-leaseback alternative with W. P. Carey because it made the most sense for our business strategy and will allow us to concentrate on our core competencies rather than our real estate. We are pleased to have completed this transaction and look forward to a future relationship with W. P. Carey."
Edward V. LaPuma, President of W. P. Carey International, said, "This transaction represents a significant step forward in W. P. Carey's European growth strategy. Increasingly, companies throughout Europe are recognizing the inherent benefits of sale-leaseback transactions and the advantages this type of financing provides to growing businesses. We are pleased to be a part of OBI's first significant sale-leaseback and to assist with the Company's continuing expansion across Central and Eastern Europe."
This latest acquisition adds to W. P. Carey's rapidly growing portfolio of managed properties throughout Europe and Asia, which consists of more than 16 million square feet (4.8 million meters square). The W. P. Carey Group has completed recent transactions with: Carrefour (France); Hellweg Die Profi-Baumärkte GmbH & Co. KG, (Germany); Integrated Distribution Systems (Thailand); Advanced Decorative Systems (UK); John Nurminen Oy (Finland); Metokote Corporation (Canada and Mexico) and Murray International Metals Limited (UK).
OBI
OBI is the leading brand in the German and European DIY retail sector. Apart from the Czech Republic, Slovenia, Poland, Hungary, Bosnia-Herzegovina and Russia, OBI is also present in Italy, Austria and Switzerland. OBI is the fourth largest DIY retailer in the world and employs appriximately 30,000 people worldwide. As of December 31, 2005, the OBI stores recorded overall sales worth EUR 6.6 billion. The share of foreign sales was 30%. According to a survey by the institute TNS Infratest, OBI is among the best-known brands in Germany with a supported brand awareness of 98%. www.obi.de/de
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC and W. P. Carey International LLC specialize in helping companies and private equity firms realize the capital tied up in their real estate assets. Whether used for buyouts, add-on acquisitions, recapitalizations or growth, net lease financing provides access to 100% of the real estate's value enabling companies to maintain complete operational control. Acting as principals in transactions from $5 million to $500 million, W. P. Carey and its affiliates have committed approximately $3 billion over the last three years and now manage more than $7.4 billion in assets. www.wpcarey.com/finance.
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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.
