NEW YORK, NY, October 7, 2004 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it would finance the construction of three research and development facilities in Woodlands, Texas for one of the world’s largest privately held chemical companies. Construction on the facilities, which will total 176,000 square feet, is expected to begin later this month and completed in the fall of 2005.
Under the terms of the transaction, the tenant will lease the facilities under a 17-year triple net lease and has the option of maintaining operational control of the facilities for an additional 20 years once the initial lease term expires. The build-to-suit financing was completed on behalf of Corporate Properties Associates 16 – Global (CPA®:16 - Global), an affiliated income generating real estate investment trust (REIT).
This transaction represents the W. P. Carey Group’s growing investment activity in Texas where the Group now owns more than 8.1 million square feet leased to companies including: Best Buy Stores, L.P., Dr. Pepper Bottling Company of Texas, Federal Express Corporation, Honeywell, Inc., PETsMART, Inc., Rave Reviews, TruServ Corporation and U-Haul Moving Partners.
Gordon F. DuGan, President of W. P. Carey & Co. LLC, said, “In today’s competitive marketplace companies with state-of-the-art facilities are synonymous with success. This transaction represents an excellent example of how W. P. Carey can provide construction financing to companies, while enabling them to maintain complete operational control.
“These facilities will add to our growing portfolio of properties in the greater Houston area and reflect our continued interest in the Texas market as companies look to outsource their real estate.”
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC specializes in helping companies and private equity firms realize the capital tied up in their real estate assets. Whether used for debt reduction, buyouts, add-on acquisitions, recapitalizations or growth, sale-leaseback financing provides access to 100% of the real estate's value, while maintaining complete operational control. Acting as principal in transactions from $5 million to $500 million, W. P. Carey and its affiliates have committed more than $2 billion in the last two years and now manage approximately $7 billion in assets.
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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.
