NEW YORK, NEW YORK – August 1, 2003 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it will provide Carrefour (Paris: CARR.PA), Europe’s largest retailer, approximately US $12 million to finance the construction of a new 225,700 square foot warehouse/distribution facility at its Le Mans, France site. Under the terms of the sale-leaseback transaction, the state-of-the-art warehouse/distribution facility will house Carrefour’s beer distributor, and will be leased under a 9-year net lease.
The original 507,000 square foot Le Mans facility was one of eight properties, consisting of more than 3.4 million square feet, previously acquired by Corporate Property Associates 14 (CPA®:14) in March 2002 for approximately US $91 million. CPA®:14, a member of the $5 billion W. P. Carey Group of income generating real estate investment trusts (REITs), will also fund the expansion.
Since June 30, 2003, the W. P. Carey Group has completed more than $57 million in sale-leaseback transactions. Year-to-date, the W. P. Carey Group has completed more than $389 million in sale-leaseback transactions as compared to $344 million during the same period in 2002, during which the W. P. Carey Group completed a record $1 billion worth of acquisitions.
“This acquisition represents our continued desire to expand into the European market,” said Edward V. LaPuma, Managing Director and Chief International Acquisitions Officer of W. P. Carey. “While sale-leaseback financing remains popular among American companies, as reflected in our acquisitions volume this year, we believe European companies are also beginning to understand the advantages associated with the sale-leaseback as a way to meet their capital needs. We remain confident that our success in the U.S. will transcend the Atlantic as we seek to meet the financing needs of our European neighbors.”
Brieuc de Crombrugghe, Second Vice President of W. P. Carey, said, “We are pleased to provide Carrefour with this additional financing to construct a new state-of-the-art warehouse facility. Over the years we have completed a number of transactions with Carrefour and believe this one will further enhance Carrefour’s leadership position in the retail industry.”
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.
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 affiliated income generating, publicly held, non-traded real estate investment trusts (REITs) continue to be leading lessors of net-leased corporate real estate. The largest publicly traded limited liability company in the world, W. P. Carey owns and/or manages more than 550 commercial and industrial properties throughout the United States and Europe comprised of 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.
