W. P. Carey $11 Million Sale-Leaseback Financing Supports Buyout of Sheplers Western Wear Retailer
New York, NY – August 14, 2007 – Investment firm, W. P. Carey & Co. LLC (NYSE:WPC) announced today that its publicly held, non-traded REIT, CPA®:16 – Global acquired three properties from western clothing retailer, Sheplers, Inc.
Headquartered in Wichita, Kansas, Sheplers was founded in 1899 as Gibson Harness Company and is now uniquely positioned as the industry’s leading multi-channel retailer, offering a full line of products through its retail stores, catalog, and website. Sheplers currently operates 18 retail stores in the Midwest and Southwest offering a full line of men's, women's and children's western boots, jeans, apparel, décor, gifts and accessories. The western wear industry as a whole is a highly fragmented market, largely served by small "mom-and-pop" operators.
The $11 million sale-leaseback transaction funded a portion of Sheplers’ acquisition by San Francisco-based private equity firm, Gryphon Investors. The two retail facilities located in Wichita, Kansas and distribution center in Oklahoma City, Oklahoma will be leased to Sheplers under a long-term lease agreement.
“Sheplers has been one of the strongest retailers in the western wear industry for decades,” said Gino Sabatini, Executive Director at W. P. Carey. “Sheplers’ past performance coupled with its strong management team and thoughtful expansion program are the types of attributes we look for in a tenant company. Having worked closely with management and Gryphon Investors to structure a solid long-term financing plan for the company we have established a relationship with Sheplers today that we hope will enable us to grow with them in the future.”
“W. P. Carey’s sale-leaseback financing was one of several financing components of our acquisition of Sheplers,” said Kurtis Kaull, a Managing Director at Gryphon Investors. “The W. P. Carey team worked diligently with us to craft an investment structure that met our needs and supported the company’s operations. We were very pleased with our experience and look forward to continuing our long-standing relationship with W. P. Carey.”
W. P. Carey Co. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global provider of long-term net lease financing for companies worldwide. With over $9.7 billion in assets and $5 billion in equity capital, the Company and its CPA® series of income generating real estate funds specialize in helping companies and private equity firms realize the capital tied up in their real estate assets. The W. P. Carey Group owns more than 850 commercial and industrial properties in 14 countries, representing approximately 100 million square feet. www.wpcarey.com
Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.
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 10020
www.wpcarey.com
