NEW YORK, NY – June 7, 1998 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced that it has closed on the acquisition of CheckFree Corporation's existing and to-be-built Corporate Campus on behalf of Carey Diversified (NYSE:CDC) and Corporate Property Associates 14 (CPA®:14). Carey Diversified LLC, the largest publicly traded limited liability company on the New York Stock Exchange, and CPA®:14, a public non-traded real estate investment trust (REIT), are members of the $2.5 billion W. P. Carey Group. Located in Norcross, Georgia, the campus consists of two office buildings as well as a conference and wellness center. Together the improvements total 178,000 square feet and are located on a 79.6 acre site bordering the Chattahoochee River.
The to-be-built facility will be comprised of a 100,125 square foot office and technology building. The existing facilities are leased to CheckFree for a minimum term of 16 years. Upon completion, the to-be-built facility will be leased to CheckFree under a 15-year triple net lease. The leases are co-terminus. The total purchase price of the properties was approximately $42 million. Bank Austria will provide mortgage financing in the amount of $23.3 million.
Founded in 1981, CheckFree, the operating subsidiary of CheckFree Holdings Corporation (NASDAQ: CKFR), is the leading provider of financial electronic commerce services, including electronic billing and payment. The Company designs, develops and markets services that enable businesses and consumers to conduct electronic-based financial transactions across the Internet and other secure networks. As the major driving force in this market, CheckFree services more than 2.8 million consumers through financial institutions, brokerage firms and internet portals.
Commenting on the investment, W. P. Carey First Vice President Edward V. LaPuma noted, "We are happy to partner with CheckFree, the leader in its field. The potential for growth in this industry is enormous, one study estimates that 40% of all bills will be paid online by the year 2000. CheckFree appears well positioned to continue to capitalize on the dynamic future of this industry. W. P. Carey was able to help CheckFree advance its infrastructure by providing the construction and financing of a state-of-the-art facility to house CheckFree's new platform. The new facility will be able to support up to 30 million customers."
W. P. Carey Managing Director Gordon F. DuGan noted, "By allocating the acquisition between Carey Diversified and CPA®:14, we were able to take advantage of an attractive investment opportunity and still maintain significant diversification within each portfolio. This is consistent with our core strategy of structuring our portfolios to maintain a conservative risk profile while still seeking exceptional investment opportunities. In addition, our structuring the acquisition of both the existing and to-be-built facilities in a single transaction demonstrates our ability to be innovative and responsive to the needs of our corporate tenants. We believe that the facilities' attractive physical plant and accessible location, in addition to the overall strength of the vibrant Atlanta market, will add to and preserve the value of the investment. The quality of the tenant, the economics of the transaction and the strength of the underlying real estate asset make this the type of investment that we seek in order to generate solid returns for our shareholders."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm, and its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. The W. P. Carey Group manages the largest publicly traded limited liability company listed on the New York Stock Exchange and four real estate investment trusts (REITs). Collectively, Carey manages over 33 million square feet of property located in 41 states. The W. P. Carey Group's properties have an aggregate value of approximately $2.5 billion.
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.
