W. P. Carey Acquires Medical Office Facility in St. Charles, Missouri
Sale-Leaseback Financing Supports Private Equity CRO Acquisition Program
NEW YORK – February 12, 2007 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has completed the acquisition of an approximate 103,000 square foot medical office facility in St. Charles, Missouri. The $21.6 million purchase was made on behalf of W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global). The property is leased under a long term triple net lease to an affiliate of Cetero Research (“Cetero”), a clinical research organization (“CRO”) providing early clinical and bio-analytical research services for the pharmaceutical and biotechnology industries. Cetero is a platform company of KRG Capital Partners, a Denver-based private equity firm.
Benjamin P. Harris, Managing Director at W. P. Carey, said, “Sale-leaseback financing works well in conjunction with private equity transactions. In this case the private equity investors have been building on Cetero’s CRO platform through a series of acquisitions of established CRO firms. The sale-leaseback financing provided a low-cost and efficient source of capital to fund their acquisition.”
Cetero Research
Cetero Research (“Cetero”) is the largest provider of early clinical and bioanalytical research services to the pharmaceutical (“pharma”) and biotechnology (“biotech”) industries with 1,646 beds (or study participant capacity). Cetero provides an integrated scope of services addressing the entire pre-clinical and Phase I trial testing process from study design through finalized reports required for regulatory filings. Pharma and biotech companies outsource product development services to clinical research organizations (“CROs”) in order to reduce or better manage costs, improve productivity, and maintain their focus on core capabilities.
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global real estate investment firm. The Company provides asset management services to its CPA® series of income generating real estate funds. With approximately $5 billion in equity capital, the W. P. Carey Group is one of the largest providers of net lease financing for corporations worldwide. The Group owns approximately 800 commercial and industrial properties in 13 countries, representing approximately 97 million square feet, valued at approximately $8.5 billion. www.wpcarey.com
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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.
W. P. Carey & Co. LLC
50 Rockefeller Plaza
New York, NY 10022
www.wpcarey.com
