NEW YORK, NY – March 28, 2002 – W. P. Carey & Co. LLC (NYSE: WPC), a leading real estate investment banking firm, announced today that it has acquired and leased-back eight warehouse facilities from Carrefour (Paris: CARR.PA), France's largest retailer, for approximately US $91 million (€104 million).
Under the terms of the sale-leaseback agreement, the facilities will be leased to Carrefour under nine year net leases. The properties, totaling more than 3,460,000 square feet, are state-of-the-art facilities with average floor to ceiling heights of 32 feet or more and are located in Paris, Lille, Caen, Nancy, Le Mans, Agen, Bourges and Lyon. The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a member of the $3 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs). To date the W. P. Carey Group has acquired 16 properties, net-leased to eight tenants in 12 cities throughout France.
"This sale-leaseback transaction will provide $91 million for Carrefour to fund corporate initiatives that focus on the company's core business," said Anthony S. Mohl, Senior Director of W. P. Carey. "The tightening of today's global credit markets is making a sale-leaseback an alternative source of financing for companies seeking to grow and expand their business."
"After considering a number of financing options we determined that a sale-leaseback transaction was the perfect solution as it provides for Carrefour's continued growth and enables us to maintain operating control over our warehouses and distribution facilities," said Norbert Pineau, Chief Legal Officer of Carrefour France. "We are pleased to have partnered with W. P. Carey on this transaction as we admire their strong financing expertise and creativity. Mr. Mohl stuck to his word and respected the established schedule and we look forward to a long-term relationship."
Founded in 1963, Carrefour is the largest retailer in France. The Paris-based company originated the hypermarket – a combination of a department store and supermarket that sells food, clothing, electronics, and household appliances, among other items, at discounted prices. Carrefour currently operates approximately 89 hypermarket stores throughout France. The company has other interests such as automobile services, fuel distribution, a credit card business, insurance underwriting and travel agencies.
"The transaction was structured with a loan from DePfa/Aareal Bank," said Chantal Gautier, General Director of DePfa/Aareal Bank. "DePfa Bank/Aareal Bank was pleased with closing the financing on this portfolio of 8 facilities leased by Carrefour France. We hope that the strong relationship we built with W. P. Carey over the course of this transaction will allow us to conduct many deals in the future as we appreciated the professionalism and efficiency of Anthony and his team in getting this deal done."
CPA®:14 invests in single-tenant commercial properties which are typically purchased under a long-term, triple-net lease in which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. As of December 31, 2001, CPA®:14's diversified portfolio consisted of 111 properties net-leased to 54 tenants throughout the United States and Europe.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The firm and its affiliates continue to be the leading lessors of net leased corporate real estate in the United States. As the largest publicly traded limited liability company in the world, the company owns and/or manages more than 450 commercial and industrial properties throughout the United States and Europe comprising of more than 55 million-square-feet of space. The firm is headquartered in Manhattan and has offices in London and Paris.
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.
