NEW YORK, NY – March 24, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that that it has acquired and leased-back the corporate headquarters and manufacturing/warehouse center from Mooresville, North Carolina-based Polar Plastics, Inc., for approximately $15.6 million. Polar Plastics is one of the leading manufacturers and distributor of disposable plastic ware in the U.S. and Canada.
The state-of-the-art facility, built in 1998, totals more than 380,000 square feet and will be leased under a 20-year triple net lease with two, ten-year renewal options. The facility was purchased on behalf of Corporate Property Associates 15 Incorporated (CPA®:15) the latest member of the $4.8 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs).
“We are pleased to have completed this sale-leaseback transaction with Polar Plastics, a leader in the disposable plastic ware industry,” said Gordon J. Whiting, an Executive Director and Deputy Director of Acquisitions at W. P. Carey. “Over the past several years, we have completed a number of net lease financing transactions with North Carolina-based companies and believe this marketplace will continue to grow as additional companies reap the benefits associated with this alternative form of financing.”
George W. Brown III, President and Chief Operating Officer of Polar Plastics, said, "We looked at a number of financing alternatives and the sale-leaseback made the most sense to us. Converting our real estate into working capital will enable us to use this financing to further improve our position in the plastic injected molding industry.”
This latest acquisition adds to W. P. Carey's growing managed portfolio of properties in North Carolina that consists of approximately 3.2 million square feet of space. The properties, which are owned by W. P. Carey and its affiliates, include warehouses, distribution centers, corporate offices and retail centers leased to Atrium Companies, AutoZone, Inc., Builders FirstSource, Collins & Aikman, Heafner Tire, Inc., Powerware Corporation and Universal Technical Institute’s NASCAR training facility.
Formed in 1984, Polar Plastics designs, manufactures and sells plastic injection molded and thermoformed single service products for the foodservice industry. It is a full-service solutions supplier, offering the most extensive range of disposable foodservice plastic products in the industry, allowing its customers the opportunity to consolidate purchases from multiple suppliers to one single supply source. Additional information can be found at www.polarplastic.com.
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 80 properties net leased to 24 tenants comprised of more than 14 million square feet throughout the U.S., France and England.
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 75 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.
