W. P. Carey Acquires Three Cold Storage Facilities in Metro-Atlanta
NEW YORK – March 6, 2007 - Investment firm W. P. Carey & Co. LLC (NYSE:WPC) announced today that it has completed the acquisition of three cold storage facilities in prime locations in the Atlanta market, which it will lease back to Nordic Cold Storage LLC (“Nordic”) on a triple net basis. The 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 cold storage industry has grown tremendously in the last few decades, as the number of dual income households has increased and time for food preparation has decreased. Last year, U.S. consumers purchased more than $26 billion in frozen foods – up 20% from 1998. In addition, 96% of restaurant owners and 100% of quick service owners use frozen foods in their operations. Nordic, acquired by Houston-based private equity firm Wareing, Athon & Company in 2000, has catered to this trend for more than 50 years, serving as the largest public warehouse operator in the Southeast.
Jason Fox, Director at W. P. Carey, said, “We are attracted to the growth trends in this sector. There is increasing demand for well-located cold storage sites with easy access to highways and truck routes, sites that are currently at a premium. Nordic’s three metro-Atlanta locations are benefiting from this demand and operating at capacity – one of many indicators that Nordic is a successful operator as well as a strong tenant.”
“We are very pleased with our new relationship with W.P. Carey,” said President and CEO of Nordic, Don J. Schoenl. “This transaction provides us with more capital to reinvest in our core competencies, which helps us to improve operational efficiencies, lower costs, and better serve the growing needs of our customers.”
NORDIC
Nordic Cold Storage LLC is one of the largest public warehouse operators in the Southeast region of the United States and among the top ten operators in North America. Serving the region for over 50 years, Nordic provides temperature-controlled handling, storage, freezing, distribution, and transportation services. Through its network of 14 strategically located refrigerated warehouses in the Southeast U.S., the Company owns and operates approximately 60 million cubic feet of warehouse capacity, which represents approximately 20% of the total Public Refrigerated Warehouse cubic footage in the region. It blast freezes over 800-million pounds of product annually.
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.
1. American Frozen Food Institute. “Frozen Food Trends.” Available: http://www.affi.com/factstat-trends.asp
