NEW YORK, NY, July 26, 2004 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it acquired and leased back the chief technology facility and a corporate office of TietoEnator Plc (TIE1V.HE), the leading supplier of high-value-added information technology (IT) services to Nordic countries. The facilities, located in Espoo, Finland, had an aggregate cost of approximately $95 million (79 million euros).
The transaction was completed on behalf of Corporate Properties Associates 15 (CPA®:15) and Corporate Properties Associates 16 – Global (CPA®:16 - Global), members of the $7 billion W. P. Carey Group of income generating, publicly held, non-traded real estate investment trusts (REITs). Located in Finland’s technical research center adjacent to the Helsinki University of Technology and the Technical Research Center of Finland, TietoEnator will maintain control of the approximately 465,000 square foot facilities under a long-term triple-net lease. CPA®:15 will own a 60% interest, while CPA®:16 - Global will own the remaining 40% interest.
This latest acquisition adds to W. P. Carey’s growing portfolio of managed properties in the European market, which consists of more than ten million square feet. A few of the recent transactions completed on behalf of the W. P. Carey Group were office, industrial, warehouse and distribution facilities leased to Wallac Oy in Turku, Finland; Katan Corporation in Gorinchem, the Netherlands; Actuant Corporation in Kahl am Main, Germany; Carrefour throughout France, and the Belgium government in Mons, Belgium.
Edward V. LaPuma, Chief Investment Officer of W. P. Carey International, said, “We are excited to have completed this transaction with TietoEnator. It represents our commitment to serving as a leading provider of sale-leaseback financing to companies throughout Europe. As we continue to expand our presence in the European market, we will seek quality investments with companies across the credit spectrum in order to further diversify our investors’ investment portfolios while providing our tenant-clients the ability to monetize their real estate assets. We anticipate an increase in our investment volume in the months ahead as more European companies realize the benefits of W. P. Carey’s customized financing solutions. We are committed to helping companies meet their capital needs and believe we are a good long-term partner who is willing to expand our business with that of our tenant-clients.”
Timo Salmela, Chief Financial Officer of TietoEnator, said, “TietoEnator has made decisions to strengthen our focus on the international growth in our prioritized vertical businesses. With this transaction we can release capital for investments supporting the strategy.”
TIETOENATOR PLC
TietoEnator is one of the leading architects in building a more efficient information society and the largest IT services company in the Nordic countries. TietoEnator specializes in consulting, developing and hosting its customers' business operations in the digital economy. The Group's services are based on a combination of deep industry-specific expertise and latest information technology. TietoEnator has close to 14,000 experts in more than 20 countries. www.tietoenator.com
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. W. P. Carey is seeking to invest upwards of $1 billion in sale-leaseback and long-term leased properties throughout Europe. 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.
