New York, NY – March 11, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has acquired and leased-back a to-be-built cold-storage warehouse and distribution facility from Birmingham, England-based Insulated Structures Limited Group (ISL), for approximately $22 million (approximately £12.4 million). ISL is a leading operator and developer of cold-storage facilities in England.
The 205,000 square foot storage and distribution facility was leased to Solar Cold Services, a wholly owned subsidiary of ISL, under a 30-year bond-type net lease and is guaranteed by ISL. It was purchased on behalf of Corporate Property Associates 15 Incorporated (CPA®:15), a member of the $5 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs).
This latest acquisition adds to W. P. Carey's growing portfolio of managed properties in England. Other properties currently owned by CPA®:15 affiliates include office, industrial and warehouse/distribution facilities leased to ISA Wholesale Plc and BLP UK Limited.
"ISL has created a solid reputation in the cold-storage industry and has a client base that includes some of the most successful companies in the world today," said Edward V. LaPuma, Managing Director and International Chief Acquisitions Officer. "This transaction will provide ISL with additional capital and enable it to focus on its core competencies."
W. P. Carey Director James Longden, added, "We are delighted to be supporting ISL's growth strategy by financing a new, modern facility on an outstanding site in the industrial heart of England. In this environment, many companies are looking for alternative sources of finance for expansion and a sale-leaseback offers the long term financing many seek to fund future growth or restructuring, without dilution of equity."
Established in 1964, ISL, is a private and profitable company supplying temperature controlled warehousing services to the food industry through its subsidiaries, Solar Cold Services and SCS (N), and rail freight and storage services to the steel industry, through its subsidiary Round Oak Rail Limited. The company has been successful in competing in the UK with larger, international logistics firms by utilizing strategically positioned facilities close to the Humber ports and major motorway junctions, by developing an efficient supply chain, and by offering a range of added value services such as co-packing and relabelling. ISL's reputation for high standards of customer service is evidenced by customer relationships of over fifteen years with companies such as Nestle, Unilever and Corus.
CPA®:15 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. Launched in November 2001, CPA®:15 currently has an ownership interest in 83 properties net leased to 23 tenants in 19 states and France.
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 approximately 550 commercial and industrial properties throughout the United States and Europe comprised of more than 70 million square feet of space.
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.
