W. P. Carey Acquires Pharmaceutical Manufacturing Facility in Colorado
Proceeds of Sale-Leaseback Provide Financing for Strategic Acquisition by Latin American Pharmaceuticals Company
NEW YORK – January 30, 2007 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has completed the acquisition of a 65,000 square foot pharmaceutical manufacturing facility in Fort Collins, Colorado. The $13.6 million purchase was made on behalf of W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global). The property is leased under a long term triple net lease to Tolmar Inc., (“Tolmar”). The proceeds of the sale were used to finance the purchase of the majority of the U.S. assets of QLT Inc., a Canadian biopharmaceutical company (“QLT”). Legacy Partners Group, LLC (“Legacy Partners”) acted as advisor to Tolmar in connection with the transaction.
Tolmar CEO Mike Duncan said, “The acquisition of QLT’s U.S. assets was a critical component of our overall corporate strategy, providing entry into the U.S. market and acquiring manufacturing capabilities in multiple drug areas. Despite the multiple complexities this deal represented, W. P. Carey was able to meet our timelines and close on this transaction as promised.”
Chad F. Edmonson, Vice President at W. P. Carey, said, “We were excited to work with both Tolmar and Legacy Partners on this transaction. It is a perfect example of a strategic corporate buyer using a sale-leaseback to fund acquisitions at an attractive long term cost of capital.”
Tolmar
Tolmar Inc is a private pharmaceutical company with interests in developing countries. Through its related companies it operates 5 manufacturing facilities outside the US and sells commercially branded generics and in-licensed products in more than 17 countries.
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 approximately 94 million square feet, valued at approximately $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.
