The W. P. Carey Group Acquires Cold Storage Facility for $25 million
New York, NY – January 14, 2008 – Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that CPA®:16 – Global, its publicly held, non-traded REIT affiliate, has purchased a cold storage facility from The Schwan Food Company for approximately $25 million.
Located in Suwanee, Georgia, the facility is situated within a building that also separately houses a bakery, which Schwan has simultaneously sold to Flowers Foods. CPA®:16 - Global and Flowers hold condominium interests in their respective portions of the building. W. P. Carey is leasing separate freezer sections of its cold storage space to both Schwan and Flowers under individual long-term leases.
Founded in 1952 by Marvin Schwan when he began delivering gallons of ice cream to families in rural Minnesota out of his truck, The Schwan Food Company has grown to become one of the largest manufacturers of frozen pizzas and frozen bakery dessert products in the world. Schwan’s many brands, including household names such as Tony’s®, Red Baron® and Freschetta® pizzas, as well as Mrs. Smith’s® pies, can be found in more than 50 countries.
Flowers Foods (NYSE: FLO) is one of the leading producers and marketers of bakery foods for retail and foodservice customers, operating 36 bakeries in 11 states. Flowers' brands include Nature's Own, Whitewheat, Cobblestone Mill, ButterKrust, Mary Jane, Mrs. Freshley's and Blue Bird.
“We are very pleased with our relationship with W. P. Carey,” said William O. McCormack, Schwan Executive Vice President and President of Schwan’s Development Corporation. “Throughout the entirety of the multi-tiered transaction, W. P. Carey was knowledgeable, professional and always available to address the particular complexities and requirements of all parties.”
“The food industry has grown tremendously over the past few decades and both Schwan and Flowers have been leaders in their respective fields,” said Jason Fox, Executive Director at W. P. Carey. “Consistent with our philosophy of investing in critical long-term assets of solid companies, with this transaction not only did we gain two strong tenants, but a state-of-the-art facility to support a growing need. We hope to work with Schwan and Flowers again in the future.”
W. P. Carey & Co. LLC
Founded in 1973, W. P. Carey & Co. LLC is a leading global investment manager and provider of long-term net lease financing for companies worldwide. With approximately $9.7 billion in assets and over $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.
