NEW YORK, NY, April 26, 2006 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it provided Dick’s Sporting Goods (NYSE: DKS), a Pittsburgh-based authentic full-line sporting goods retailer, $18.5 million in build-to-suit financing to expand its existing distribution facility in Plainfield, IN.
W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global), will finance the construction of this state-of-the-art distribution facility and lease it back to Dick’s Sporting Goods under a 15-year triple net lease. Previously, CPA®:16 - Global’s affiliate, CPA®:14, was the sole owner of the adjacent distribution facility, for which it provided expansion financing in 2000. As a result of this recent transaction, the previously existing lease was amended into a new lease whereby CPA®:16 - Global and CPA®:14 are now joint owners of the facility.
This expansion financing took place subsequent to several sale-leaseback transactions between W. P. Carey’s affiliates and Galyan's Trading Company, Inc., which was acquired by Dick’s Sporting Goods in 2004. Together with this build-to-suit transaction, W. P. Carey and its affiliates now own nine Dick’s Sporting Goods retail and distribution facilities located in Kennesaw, GA; Lombard, IL; Greenwood (2) and Plainfield, IN; Leawood, KS; Freehold, NJ; Buffalo, NY and Fairfax, VA.
Jason Fox, a Director at W. P. Carey, said, “This expansion will enable Dick’s Sporting Goods to meet the distributions needs of its growing business. We are pleased that we have been partners with Dick’s for so many years and believe that this transaction continues to exemplify our commitment to meeting the long-term financing needs of our tenants. As a result, Dick’s will occupy a state-of-the-art distribution facility while our CPA® investors will benefit from a long-term continuous stream of income.”
Edward W. Stack, Dick's Sporting Goods Chairman and CEO, said, “The construction of this expanded facility will help Dick’s to maintain our leadership position in the sporting goods industry. The collaboration between Dick’s and W. P. Carey helped to ensure that we could capitalize on this expansion opportunity. We look forward to a lasting relationship between the two companies.”
DICK'S SPORTING GOODS, INC.
Pittsburgh-based Dick's Sporting Goods, Inc. is an authentic full-line sporting goods retailer offering a broad assortment of brand name sporting goods equipment, apparel, and footwear in a specialty store environment. As of January 28, 2006, the Company operated 255 stores in 34 states primarily throughout the Eastern half of the United States. www.dickssportinggoods.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 $4.5 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 675 commercial and industrial properties in 13 countries, representing over 95 million square feet, valued at more than $7.7 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.
