NEW YORK, NY — July 24, 2002 — Investment banking firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has acquired and leased-backed seven key manufacturing facilities from Grand Rapids, Michigan-based Tower Automotive, Inc. (NYSE: TWR) for approximately $55.7 million. Tower Automotive is a leading global designer and producer of vehicle structural components and assemblies used by the major automotive original equipment manufacturers (OEMs).
According to the terms of the sale-leaseback agreement, the facilities will be leased to Tower Automotive under 18-year net leases. The manufacturing facilities, totaling approximately 1.9 million square feet, are critical for Tower Automotive's ongoing operations and are located in: Clinton Township, MI; Granite City, IL; Auburn and Kendalville, IN; Bluffton and Upper Sandusky, OH; and Milan, TN. The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14) and Corporate Property Associates 15 Incorporated (CPA®:15), both members of the $3.5 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs). CPA®:14 will own the properties in Granite City, IL, Kendalville, IN, Upper Sandusky, OH and Clinton Township, MI, while, under a second lease, CPA®:15, W. P. Carey's newest REIT, will own the properties in Auburn, IN; Bluffton, OH; and Milan, TN.
"In today's tightening credit markets, sale-leaseback financing is increasingly becoming a popular method of raising capital as companies realize the advantages of monetizing their strategic assets," said Edward V. LaPuma, Managing Director at W. P. Carey. "This deal is a good example of how both the buyer and seller win from a sale-leaseback transaction. Our investors acquire critical operating assets with a strong industry-leading tenant and Tower Automotive unlocks the capital in their real estate and continues their commitment to pay down debt."
"Among a number of financing alternatives, we determined that this sale-leaseback transaction, provided by industry leader W. P. Carey, was a transaction that supported our strategic financing objectives," said Tony Barone, Chief Financial Officer of Tower Automotive, Inc. "This transaction enabled us to realize cash from our existing capital base, reduce our financial leverage, and provide greater flexibility for the continued growth of our enterprise."
Tower Automotive, Inc. produces a broad range of vehicle structural components and assemblies for the global automotive manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan, Fiat, Kia, Hyundai, BMW and Volkswagen. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components.
CPA®:14 and CPA®:15 invest in single-tenant commercial properties which are typically purchased under a long-term, triple-net lease under which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. As of June 30, 2002, CPA®:14's diversified portfolio contained more than 130 properties net-leased to more than 60 tenants throughout the United States and Europe totaling more than 20 million square feet of space, while CPA®:15, which launched in November 2001, had an ownership interest in more than 20 properties net leased to five tenants.
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 comprised of more than 55 million square feet.
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.
