W. P. Carey Closes Three Deals in Three Countries in Eleven Days
NEW YORK – April 25, 2007 – Underscoring its ability to build upon established relationships and create new global ties, investment firm W. P. Carey & Co. LLC (NYSE:WPC) has closed three transactions in three countries in under two weeks.
On March 20, W. P. Carey acquired several properties in France from Europe’s largest operational commercial truck and industrial vehicle leasing company, the Fraikin Group, for approximately $9 million. This comes as a follow-on transaction to last year’s sale-leaseback of a 61-property logistics portfolio. In the past year, W. P. Carey has purchased more than $76 million in real estate assets from the Fraikin Group, which serves the commercial fleet leasing needs of many of Europe’s most well-known companies.
Then, on March 29, W. P. Carey acquired an $11 million property in Rybnik, Poland, adding to 2006’s $183 million sale-leaseback with Polish Do-It-Yourself-Retailer, OBI AG (“OBI”). OBI continued to see financing opportunities with W. P. Carey and plans to use the funds from both transactions to further expand its footprint throughout Central and Eastern Europe.
A day later, W. P. Carey purchased a property in Tuusula, Finland from GE Healthcare Finland OY (“GE”) and occupied by PaloDEx Group Oy (“PaloDEx”), a former business unit of GE which it divested in 2005. The transaction, which differs slightly from the traditional sale-leaseback, enabled GE to divest of a facility it had kept as part of the spin-off during a transition phase, and allowed PaloDEx to remain at the site where it has been operating for over 30 years. Currently owned by Nordic private equity group, Altor Equity Partners, PaloDEx is a global leader in the design and production of state-of-the-art digital and analog dental imaging equipment. Located just 10 miles from the Helsinki – Vantaa International Airport, the area is one of the fastest growing areas in the greater Helsinki metropolitan area.
“Essentially, the deal was structured as a sale-leaseback – W. P. Carey purchased a facility leased on a 20-year term – except that the seller and the lessee are two different companies,” commented Jeffrey S. Lefleur, Executive Director of W. P. Carey International. “We were pleased to be able to accommodate both parties, especially given PaloDEx’s long history at the site.”
“The transaction W. P. Carey structured was ideal both for GE and PaloDEx,” said Managing Director of PaloDEx, Jyrki Perttunen. “GE was able to sell a property it no longer needed and we acquired a long-term, relationship-driven landlord who is pleased to own the space we’ve occupied for more than 30 years.”
“These three transactions reflect W. P. Carey’s goal of building long-term relationships with our European clients,” said Edward V. LaPuma, President of W. P. Carey International. “Given that we focus on holding our investments for the long-term, companies recognize that we are in this for the long-run just as much as they are – a solid reason they continue to do business with us. Fraikin and OBI are examples of such companies, and we’re continually looking to cultivate many more such relationships. This is why we strive to reach out to companies we’ve never worked with, like GE and PaloDEx. By creating intricate solutions to fit their needs, we hope they’ll reward our efforts and do more business with us in the future.”
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 over $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 more than 800 commercial and industrial properties in 14 countries, representing over 98 million square feet, valued at approximately $8.8 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.
