NEW YORK, NEW YORK, May 26, 2004 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it acquired an office, manufacturing and warehouse facility in Leeds, United Kingdom from the Polestar Group, the largest commercial printer in the U.K., for approximately $27.7 million (£15.5 million).
Under the terms of the transaction, Polestar will maintain control of the 199,137 square foot facility, which will serve as the largest web-offset printing site in the U.K., under a 25-year triple-net lease, with options to retain operating control longer.
The transaction was acquired on behalf of Corporate Properties Associates 16 – Global (CPA®:16 - Global), a member of the $6 billion W. P. Carey Group of income generating, 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 that consists of more than 1.5 million square feet. Among the transactions completed on behalf of the W. P. Carey Group were office, industrial, warehouse and distribution facilities leased to ISA Trading Limited, Insulated Structures Limited Group, Qualceram Shires plc and BLP UK Limited.
Edward V. LaPuma, W. P. Carey & Co. International Chief Investment Officer, said, “This transaction represents our commitment to providing financing solutions to companies around the world looking to grow and expand their businesses. We were pleased to have worked with Polestar in securing this financing which will enable them to maintain their leadership position in the commercial printing industry. Additionally, this is another example of private equity capitalizing on what is becoming an increasingly popular trend throughout Europe – the outsourcing of their real estate needs.”
Peter Johnston, Group Finance Director of the Polestar Group, said, “We are pleased to have partnered with W. P. Carey who provided a financing solution that is consistent with Polestar's policy of applying its financial resources to investment in printing equipment rather than in land and buildings. This transaction will allow the Group to expand its printing facilities and strengthen its commitment to its customer base.”
THE POLESTAR GROUP
Headquartered in Milton Keynes, U.K., Polestar serves as the leading printer for some of the world’s largest media groups, and its subsidiary in Leeds (Polestar Petty) is solely responsible for the printing of many of England’s best-known titles, including the Radio Times, Sunday Express, and The Guardian. Earlier this year, Polestar Petty successfully renewed contracts to print various titles for the BBC and IPC media, Time Warner’s U.K. media subsidiary. IPC Media has nearly 100 titles which collectively sell over 350 million magazines each year to over half the U.K. population and over the next five years will see the production of over one billion magazines at the Leeds site.
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC has long served as the preeminent provider of sale-leaseback financing to companies around the world. With $3.5 billion in equity and more than $6 billion in assets, W. P. Carey has earned a reputation for its ability to close transactions on time and as proposed. The firm has provided sale-leaseback and build-to-suit financing to some of the world's leading companies including Marriott, Del Monte, Federal Express, Dr Pepper Bottling, Gibson Greetings, Detroit Diesel, PETsMART and Carrefour among many others. For more information, visit www.wpcarey.com/finance.
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.
