W. P. Carey Acquires Upscale Hilton Hotel in Bloomington, Minnesota
Hotel Currently Under Construction and Expected to Open January 2008
NEW YORK – February 8, 2007 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it will provide approximately $49 million in funding for the construction and development of a 255-room Hilton hotel in Bloomington, Minnesota. The funding will be made on behalf of W. P. Carey’s affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global) which will own the hotel upon completion. The property is under construction and is anticipated to be completed in January 2008.
Minneapolis-based Mortenson Development, Inc. is the developer, M.A. Mortenson Company is the design builder and Walsh Bishop Associates, Inc. is the project architect. Marcus Hotels and Resorts, a division of The Marcus Corporation, has been selected as operator of the property.
The full-service hotel will feature the ChopHouse restaurant, offering steaks, seafood and an extensive wine list. Additional hotel amenities will include several thousand square feet of meeting space, a business center, an indoor swimming pool and a fitness center. Guestrooms will feature the Hilton Serenity Collection® of upscale in-room amenities, which includes the Hilton Serenity Bed with Serta Suite Dreams mattress, Pacific Coast® down duvet, Super Topper mattress pads, and high-quality linens and pillows; in-room coffee system, featuring world-renowned Lavazza® coffee from Italy and a Cuisinart® dual-cup, single-brew coffeemaker; and exclusive Crabtree & Evelyn La Source® bath products.
Jason Fox, Director at W. P. Carey, said, “With its prime location, high quality amenities and the appeal of the Hilton brand, we believe this property will quickly become one of the leading hotels in Bloomington. This transaction also represents our ability to pursue unique real estate opportunities that are outside of our traditional net lease business.”
Matt Wehling, Senior Director - Franchise Development of Hilton, added, “The location and design of the hotel will position it favorably with respect to competitive properties in the area. Working with W. P. Carey and the members of the project team, we were able to put together a program and design that should prove successful from both an operational and financial standpoint.”
Tom Lander, General Manager and Vice President at Mortenson Development Inc., noted, “Because W. P. Carey’s approach includes looking at and fully analyzing the underlying business of their investments as well as the real estate itself, they are able to play an integral role on to-be-built projects with developers like ourselves. We see them both as a partner and invaluable source of financing through the construction and development in addition to becoming the ultimate owners of the property.”
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
HILTON HOTELS
With nearly 500 hotels on six continents, Hilton Hotels continues to be an innovative leader in the full-service hospitality segment and the most recognized name in the industry. Hilton celebrates the accomplishment, enlightenment, renewal and celebration that travel enables. This commitment to personal guest achievement infuses all decisions about products, programs and amenities, and is underscored by the belief that travel can and should be transformative. Each unique Hilton Hotel was designed to reflect the sense of place of its location; each team member chosen to reflect the local culture and community. For more information, please visit www.hilton.com.
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
