The W. P. Carey Group Provides $74 Million in Financing to German Manufacturing Company
New York, NY – October 9, 2007 – Investment firm W. P. Carey & Co. LLC (NYSE:WPC) announced today that it completed a $74 million sale-leaseback transaction (including transaction costs) with German manufacturing company, Schuler AG.
W. P. Carey’s affiliated income generating real estate funds, CPA®:15 and CPA®:16 – Global, acquired Schuler’s global headquarters and largest production site in Göppingen, Germany and are leasing it back to Schuler on a long-term basis.
Established in 1839 in Göppingen, Schuler is a global leader in the production of metal-forming machines and related equipment. Manufacturing a range of mechanical and hydraulic presses and press dies, press automation equipment, and laser welding and cutting equipment, as well as large-scale customer-specific press lines, Schuler is publicly traded on the XETRA (German) stock exchange.
“W. P. Carey’s team has been most helpful during the sale-leaseback process,” said Wolfgang Baur, Chief Financial Officer of Schuler. “This April, Schuler acquired our largest European competitor, Müller-Weingarten. Working with W. P. Carey we were able to structure a sale-leaseback transaction that, post-acquisition, has allowed us to recapitalize our balance sheet.”
This is the second transaction W. P. Carey has completed with a German middle-market or “mittelstand” company this quarter. “We see great opportunities for doing sale-leaseback transactions with German mittelstand companies, which are the backbone of the German economy,” said Edward V. LaPuma, President of W. P. Carey International. “Schuler is a perfect example of a mittelstand company that is benefiting from a properly structured long term financing, and at the same time, is a solid investment for W. P. Carey. We were able to do this deal, despite the tightening of the credit markets, by providing financing to Schuler on an all-equity basis to meet Schuler’s timeline. At a time when alternative sources are less available, W. P. Carey continues to have access to significant capital sources.”
W. P. Carey & Co. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global provider of long-term net lease financing for companies worldwide. With over $9.6 billion in assets and $5 billion in equity capital, the Company and its CPA® series of income generating real estate funds specialize in helping companies and private equity firms realize the capital tied up in their real estate assets. The W. P. Carey Group owns more than 850 commercial and industrial properties in 14 countries, representing approximately 100 million square feet. 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.
