W. P. Carey Acquires Intesys Technologies Corporate Headquarters and Main Manufacturing Facility
$23 Million Long Term Sale-Leaseback Financing Provides Source For Repaying Real Estate Bridge Loan
NEW YORK, NY – March 10, 1999 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced that it has completed the acquisition of the corporate headquarters and main manufacturing facility of Intesys Technologies, Inc. on behalf of Corporate Property Associates 12 (CPA®:12) and Corporate Property Associates 14 (CPA®:14). CPA®:12 and CPA®:14, public non-traded real estate investment trusts (REITs), are members of the $2.5 billion W. P. Carey Group. The property is located on a 15.73 acre site in the Fiesta Tech Center in Gilbert, Arizona, east of downtown Phoenix, and is leased to Intesys Technologies, Inc. under a 20 year bond type net lease. The purchase price of the 250,000 square foot facility was approximately $23 million.
Intesys Systems, Inc. is a leading full service provider of complete design, production and assembly requirements for multi-national companies using plastic components in their end products. With 1998 revenues of approximately $150 million Intesys is one of only 44 plastic injection molders in the country with annual revenues in excess of $100 million.
Commenting on the investment, W. P. Carey Managing Director Gordon F. DuGan noted, "Using the proceeds of the sale leaseback financing to pay down a real estate bridge loan and convert it to long term financing, Intesys was able to complete the outsourcing of a major real estate asset. As a result, the Company has been able to redeploy the full cash value of that asset into the growth of its operations and improve its balance sheet. Our years of experience in the sale leaseback business give us the ability to analyze and appreciate the strength of well-managed, growing companies such as Intesys. Consequently we are able to react quickly to meet the financing needs of both emerging as well as more established corporate credits."
W. P. Carey First Vice President Sean Sovak added, "In addition to the strength of the Company itself, we believe that the Intesys facility represents an attractive real estate investment. The greater Phoenix market has benefited from the continued economic growth of the region, bolstering real estate values in markets such as Gilbert. Also because the facility serves as the Intesys Corporate Headquarters and its manufacturing operations account for over 87% of the Company’s revenues, it is essential to Intesys’ ongoing business – further insuring the facility’s long term value and rental income stream. The Phoenix Metropolitan Area has become known as the Hub of the Southwest because of its market size, transportation facility, diversified economy and location. These characteristics should continue to support growth in the area and insure the long term value of this investment on behalf of our REIT shareholders.”
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm, and its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. The W. P. Carey Group manages the largest publicly traded limited liability company listed on the New York Stock Exchange and four real estate investment trusts (REITs). Collectively, Carey manages over 33 million square feet of property located in 41 states. The W. P. Carey Group’s properties have an aggregate value of approximately $2.5 billion.
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.
