NEW YORK, NY, May 10, 2006 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it completed a sale-leaseback transaction with Kings Super Markets, Inc., a premium food retailer with 26 stores primarily located in northern New Jersey. Proceeds from the transaction helped to fund the $61.5 million acquisition of Kings Super Markets, Inc. by an investor group consisting of Angelo, Gordon & Co., MTN Capital Partners LLC, and Bruce Weitz, a retail executive with over 30-years senior management experience. Mr. Weitz, who has formerly served as CEO of Duane Reade Drugstore and President of First National Supermarkets, will become the new Chairman of Kings.
As part of the acquisition financing, W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global), acquired six grocery stores for $48.4 million and leased them back to Kings Super Markets under long-term triple net leases. The six grocery stores are located in Summit, Livingston, Maplewood, Montclair, Morristown, and Cresskill, NJ, areas known to be among the top suburban retail markets in the U.S.
Jason Fox, a Director at W. P. Carey, said, “The Kings facilities represent extremely valuable pieces of real estate. They are located in prime locations in the center of dense, affluent areas of Northern New Jersey and are very accessible to Kings’ customers. Kings is a well-established upscale food retailer with a loyal customer base that has been able to differentiate itself from its competitors with its excellent locations and focus on high end products, particularly perishables. W. P. Carey’s sale-leaseback financing and Angelo, Gordon’s acquisition will lay the groundwork for Kings’ continued success.”
Brent Leffel, a Director at Angelo, Gordon, said, “W. P. Carey’s sale-leaseback was a key component in the financing of our acquisition of Kings Super Markets. This was a difficult transaction given the three-week turnaround required to complete the sale-leaseback concurrently with our buyout. However, W. P. Carey was dependable and professional in its ability to close quickly. Angelo, Gordon looks forward to working with W. P. Carey again in the future on other deals.”
KINGS SUPER MARKETS, INC.
Founded in 1936, Kings Super Markets, Inc. is a premium supermarket chain with 26 stores located in New Jersey and on Long Island, New York. www.kingswebsite.com
ANGELO, GORDON & CO.
Founded in 1988, Angelo, Gordon & Co. is an alternative asset investment firm that manages approximately $10 billion of committed funds on behalf of large public and private institutions and high net worth individuals. The New York-based private equity group currently manages over $800 million in committed capital. www.angelogordon.com
MTN CAPITAL PARTNERS
New York-based MTN Capital is a private equity firm that focuses on smaller middle-market companies. MTN has extensive experience investing in retail companies and works to bring together both the capital, plus the operational resources needed to achieve successful investments. www.mtncapital.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
Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.
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.
