NEW YORK, NY – August 15, 2007 – Investment firm W. P. Carey & Co. LLC (NYSE:WPC) announced today that it completed a $63 million sale-leaseback transaction with International Aluminum Corporation (“IAL”), a portfolio company of San Francisco-based private equity firm, Genstar Capital LLC.
W. P. Carey’s affiliated income generating real estate fund, CPA®:16 – Global, acquired nine industrial facilities from IAL throughout the United States and Canada, including properties in major metropolitan areas of Los Angeles, Chicago, San Francisco, Phoenix, Houston, and Vancouver and has leased them back to IAL under long term lease agreements.
Founded in 1957, IAL is an integrated manufacturer of aluminum and vinyl building products used for both commercial and residential applications such as store fronts, decorative entrance doors, and aluminum windows and doors. Headquartered in Monterey Park, California, IAL has approximately 1,600 employees.
“W. P. Carey’s investment in the IAL properties is consistent with our approach of identifying and providing financing for credit-worthy companies. In this case, the sale-leaseback was an integral component of IAL’s capital structure. By providing a long term source of funding at an attractive rate it will further strengthen IAL’s capital structure and help lay the groundwork for the company’s continued success in the aluminum and vinyl building products segment,” said Jason Fox, Executive Director at W. P. Carey. “The transaction is an excellent example of how working with private equity firms and their portfolio companies we can structure a sale-leaseback financing that maximizes returns for the company’s owners and at the same time conforms to our established investment parameters. We are pleased to have worked with both Genstar and IAL on this transaction.”
“Since we acquired IAL earlier this year we have implemented a number of initiatives to enhance the business,” said Darren Gold, a Managing Director at Genstar. “As part of those efforts to grow the company, W. P. Carey’s sale-leaseback provides further financial flexibility to do a myriad of things: target future add-on acquisitions, pay dividends to our shareholders, or enhance any one of our portfolio businesses. W. P. Carey’s ability to understand our financial objectives along with IAL’s operating requirements enabled us to structure a long term financing solution that provides a solid platform for future growth opportunities. Genstar looks forward to working with W. P. Carey again on future deals.”
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
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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 10020
www.wpcarey.com
