Corporate Property Associates 12 Closes Sale-Leaseback Transaction with NutraMax Products, Inc.
Acquisition Strengthens W. P. Carey's Presence in the Houston Market
NEW YORK, NY – May 1, 1998 – W. P. Carey & Co. LLC, a New York real estate investment banking firm, announced that it has completed the acquisition of a manufacturing and distribution facility on behalf of Corporate Property Associates 12 (CPA®:12). The property, located on approximately 19.3 acres in Houston, Texas, is leased to First Aid Products, Inc., a wholly owned subsidiary of NutraMax Products, Inc. (NASDAQ: NMPC) under a 15.5 year triple net lease. The purchase price of the 254,000 square foot facility was approximately $7.3 million.
Commenting on the investment, Wm. Polk Carey, Chairman of W. P. Carey & Co., noted, "With its long history of profitability and growth, a strong management team and ongoing institutional support, NutraMax is representative of the criteria by which we assess all our corporate tenants.
Our consistent approach to the evaluation of each investment has enabled us to maintain and increase distributions to our investors while providing growth in value over the long term."
W. P. Carey Vice Chairman and Managing Director, Barclay G. Jones III, added, "As NutraMax's sole source of adhesive bandages, the facility represents one of the Company's key operating facilities. Products manufactured at the facility account for a significant portion of NutraMax's corporate sales. Because the facility is critical to the Company's operations, the investment further enhances the stability of the CPA®:12 portfolio."
NutraMax is a leading consumer health care products company and the number one manufacturer and marketer of private label Disposable Douche, ready-to-use Enema, Pediatric Electrolyte Oral Maintenance Solutions, Disposable Baby Bottles, Cough Drops and Throat Lozenges. The Company also markets a broad line of Contact Lens Care Products, OTC and generic prescription Ophthalmics, Clotrimazole-based Yeast Infection Medications, Toothbrushes, Dental Floss, Liquid Adult Nutritional Products, Adhesive Bandages, Medical Tapes, First Aid Kits and various First Aid Products for the hospital and industrial safety markets. NutraMax products are sold by supermarkets, drug chains and mass merchandisers under both store brand names and control brands, including Powers, Optopics, Sweet'n Fresh®, Pure & Gentle, Fresh'n Easy, Pro Dental, American White Cross and NutraMax. The Company's sales for the fiscal year ended September 27, 1997 were in excess of $94 million.
The developer of the project is California-based Bradford Properties, Ltd. The transaction was handled by Martin O'Malley of the Houston office of Grubb & Ellis.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through sale-leaseback or net lease and other long term lease financing structures. The firm, and its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. Carey has sponsored the Corporate Property Associates (CPA®) series of public real estate partnerships and real estate investment trusts (REITs) which, together with Carey Institutional Properties, collectively own over 33 million square feet of property located in 41 states with an aggregate value of approximately $2 billion. The firm recently consolidated the interests of investors in its initial nine investment partnerships, CPA®:1-9, into Carey Diversified LLC, the largest publicly traded Limited Liability Company listed on the New York Stock Exchange (NYSE: CDC).
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.
