W. P. Carey Group Closes Acquisition of CompuCom Corporate Headquarters
Strength of Dallas Market Enhances Solid Investment
NEW YORK, NY – April 15, 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 service center facility of CompuCom Systems, Inc. (NASDAQ: CMPC) on behalf of Carey Institutional Properties (CIP®), Corporate Property Associates 12 (CPA®:12) and Corporate Property Associates 14 (CPA®:14). CIP®, CPA®:12 and CPA®:14, private real estate investment trusts (REITs), are members of the $2.5 billion W. P. Carey Group. The facilities acquired are located on a 19.4 acre site in Dallas, Texas and are leased to CompuCom under a 20-year bond type net lease. The purchase price of the combined 255,378 square foot facilities was approximately $40 million.
CompuCom is a leading provider of network integration services for both large and medium sized corporate customers worldwide. CompuCom’s services include LAN/WAN projects, consulting, asset tracking, network management, help desk, field engineering, configuration, software management, distribution and procurement. CompuCom’s revenues for the year ended December 31, 1998 were approximately $2.25 billion.
Commenting on the investment, W. P. Carey Managing Director Gordon F. DuGan noted, "This transaction demonstrates our ability to identify companies that are well positioned in their respective industries to take advantage of growing markets within those industries. We believe that CompuCom will prove to be a strong credit over the longer term."
W. P. Carey First Vice President Anne R. Coolidge added, "The facilities are located in a strong neighborhood in Dallas which is one of the nation’s most vibrant metropolitan areas. Consequently, we view the investment as one that will maintain its value over time. Given the property’s good access and excellent neighborhood dynamics, we view the real estate component of the investment as an added value enhancement for our 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, together with 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 and Europe. 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.
