W. P. Carey Group Acquires Five Facilities Operated by Galyan's Trading Company, Inc.
$57.6 Million Sale-Leaseback Includes Company's Leading Retail Centers in Kansas, Virginia, Georgia and Illinois and Key Distribution Facility in Indiana
NEW YORK, NY – July 26, 2000 – W. P. Carey & Co. LLC. (NYSE:WPC), a leader in the ownership and net leasing of corporate properties, today announced that it has closed the acquisition of five facilities operated by Galyan's Trading Company, Inc., on behalf of Corporate Property Associates 14 (CPA®:14) and Corporate Property Associates 12 (CPA®:12). CPA®:14 and CPA®:12, two public, non-traded real estate investment trusts (REITs), are members of the $2.5 billion W. P. Carey Group. The total cost of the Galyan's facilities will be approximately $57 million, including an expansion of one site.
Galyan's Trading Company, Inc., headquartered in Plainfield, Indiana is a unique, rapidly growing, "active-lifestyle" sporting goods retailer currently operating 19 stores in eight markets throughout the mid-western and eastern United States. Owned in the majority by Freeman Spogli & Co., Inc. and The Limited, the company's innovative store designs, extensive product selection, and outstanding customer service, position it well for potential future growth.
The five facilities acquired by W. P. Carey include stand-alone retail stores located in Leawood, Kansas; Fairfax, Virginia; Kennesaw, Georgia; and Lombard, Illinois. Also acquired was the property serving as Galyan's sole distribution center located in Plainfield, Indiana, which, as part of the transaction will be expanded to accommodate Galyan's future store growth. The properties are leased to Galyan's under a bond-type net lease for an initial term of 20 years.
Commenting on the transaction, Edward V. LaPuma, Executive Director of W. P. Carey, stated, "The transaction with Galyan's exemplifies W. P. Carey's ability to meet a company's particular financing needs. The acquisition involved the purchase of five existing facilities while simultaneously entering into an agreement with Galyan's to fund a 144,000 square foot expansion of the distribution center in order to accommodate future growth and increased sales. It is anticipated that construction will be completed by early 2001."
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. W. P. Carey & Co. LLC (NYSE:WPC), the largest publicly traded limited liability company in the world, owns and manages over 38 million square feet of property in the USA and Europe.
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.
