NEW YORK, NY, July 21, 2004 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that, on behalf of its affiliated income generating real estate investment trusts (REITs), it recently provided financing to companies to grow and expand their businesses. In addition, W. P. Carey announced that it completed a record $429 million in sale-leaseback transactions during the second quarter of 2004. This investment volume is greater than the total investment volume in all of 2001, and $370 million more than the total investment volume during the second quarter in 2003.
Corporate Properties Associates 16 – Global (CPA®:16 - Global) purchased the headquarters and main manufacturing facility of a leading producer of engineered, non-woven fabrics and specialty synthetic fibers for $32 million. The three buildings, which total 528,000 square feet, are located in Hampton, NH. They will be leased for an initial period of 20 years, with two ten-year renewal options. The company plans to use the funds from the sale-leaseback to grow and expand its business and pay down corporate debt.
Corporate Properties Associates 15 (CPA®:15) acquired a 14,400 square foot office facility located in San Marcos, TX. The facility will be leased back to a Texas-based communications company that provides high-speed Internet, local and long-distance telephone and digital cable service. The company will maintain operating control of the facility for an initial 20-year period followed by four, five-year renewal options. In August, 2003, CPA®:15 acquired the company’s corporate headquarters and regional headquarters located in San Marcos, Waco, Odessa and Corpus Christi, TX for $13.8 million.
Corporate Properties Associates 12 (CPA®:12) acquired a newly constructed manufacturing and distribution warehouse facility from a leading manufacturer of consumer goods packaging products in Fort Doge, IA. The 31,500 square foot facility, constructed in February 2003, is an extension of a 155,200 square foot manufacturing facility previously acquired by CPA®:12 in 1997. Under the terms of the transaction, the current lease term on the facilities, originally set to expire in 2014, will be extended to 2020. Since 1997, CPA®:12 has provided the company with $13.8 million in financing.
Gordon F. DuGan, President and Co-Chief Executive Officer of W. P. Carey, said, “These recent transactions reflect our ability to provide long-term financing to both our existing clients and companies seeking funds to grow and expand their businesses. Our success in providing customized financing solutions to high-quality companies is reflected in our record second quarter investment volume. We anticipate companies will continue to seek long-term financing to match their long-term assets as their real estate remains at a cyclical peak while interest rates are expected to rise.”
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 approximately $7 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. www.wpcarey.com/finance
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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.
