NEW YORK, NEW YORK, December 4, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has recently provided approximately $137 million in sale-leaseback financing to six companies located in the U.S. and Europe. The sale-leaseback transactions involved 15 facilities totaling more than 2.8 million square feet.
Among the transactions funded on behalf of the $5 billion W. P. Carey Group, which includes the Corporate Property Associates series of income generating, publicly held, non-traded real estate investment trusts (REITs), were:
- The $33.6 million acquisition of four manufacturing facilities located in Alsip, Illinois (2), Tolleson, Arizona and Geddes, New York from one of the world's leading manufacturers and suppliers of rigid plastic packaging products. In addition, the W. P. Carey Group will fund the $3 million construction of an extension to the Tolleson, Arizona facility. The facilities, which total approximately 1.2 million square feet, will be leased for an initial term of 10-years followed by two, ten-year renewal options.
- The purchase of five office, manufacturing and warehouse facilities for $29.3 million from a leading manufacturer of injection molded precision plastic products. The facilities, which total more than 616,000 square feet, are located in Buffalo Grove, Illinois; Excelsior Springs, Missouri; Pittsburgh, Pennsylvania; St. Petersburg, Florida and West Lafayette, Indiana. Under the terms of the lease, the company will maintain control of the facilitates for an initial term of 20 years followed by two, ten-year renewal options.
- The $28.3 million acquisition of two facilities located in Atlanta, Georgia and Bel Air, Maryland from a leading health/fitness provider. The facilities, which total more than 186,000 square feet, will be leased for an initial term of 20 years followed by three, ten-year renewal options.
- The $20.5 million (US) purchase of a warehouse/distribution facility in Nimes, France from one of Europe’s largest retailers. The 313,000 square foot facility will be leased initially for nine years.
- The acquisition of two light-manufacturing facilities located in Port Huron and Shelby Township, Michigan for $11.5 million from a leading designer, manufacturer and supplier of roof rack and towing systems. The 294,000 square foot facilities will be leased for an initial 20-year term with two, ten-year renewal options.
- The $10.8 million (US) acquisition of a warehouse / distribution center in West Midlands, United Kingdom from a leading warehouse and distribution service provider. The facility, totaling 120,600 square feet, will be leased for 30 years.
Gordon F. DuGan, President and Co-Chief Executive Officer of W. P. Carey, said, “With interest rates at historically low levels companies are realizing that now is a great time to lock in long-term financing. We’re currently looking to invest more than $2 billion with companies seeking to grow and expand their businesses. The additional capital they receive from a sale-leaseback with W. P. Carey could provide them the funding necessary to eliminate debt, fund acquisitions or take their public company private.”
W. P. CAREY & CO. LLC
W. P. Carey & Co. LLC is a leading investment firm that serves as the preeminent provider of sale-leaseback financing to corporations in the United States and Europe. The Company acquires single-tenant corporate and industrial properties and leases them back to the tenant often under a triple-net lease lasting 15-20 years. By converting an otherwise
depreciating asset, companies are able to use the capital they receive from W. P. Carey to pay down debt, fund acquisitions or reinvest in the core competencies of their business. W. P. Carey owns and/or manages more than 550 commercial and industrial properties throughout the United States and Europe representing more than 75 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.
