Carey Institutional Properties Announces Acquisition of PSC Manufacturing Facility
Financing Benefits Carey Institutional Properties Shareholders and PSC Inc.
NEW YORK, NY – May 1999 – Carey Institutional Properties Incorporated, a market leader in the ownership and net leasing of corporate properties, has announced the acquisition of PSC Inc.’s manufacturing facilities in Eugene, Oregon. The purchase price of the 110,665 square foot facilities is approximately $8.3 million. The proceeds of the financing will allow PSC to pay down senior term loans. The two buildings, located on approximately 20 acres, are leased to PSC under a 15 year bond type net lease. CIP®, which structured the transaction, is a member of the $2.5 billion W. P. Carey Group.
PSC Inc. (NASDAQ: PSCX) manufactures retail and industrial fixed and handheld scanners, as well as hand-held and industrial scanners. Their retail fixed position scanners account for more than 40% of the market sector. PSC’s revenues for the year ending December 31, 1998, exceeded $217 million.
Commenting on the transaction, Gordon F. DuGan, Managing Director of W. P. Carey & Co., noted, "The Eugene facilities are critical to PSC’s operations. The property is located in a growing high-tech center, which has attracted many smaller companies from the San Francisco Bay area and Silicon Valley looking for less expensive, corporate space. In addition, large companies have been attracted to Eugene by the quality of life and the availability of a well-educated work force. Consequently, we see the real estate values in the area as stable and growing."
First Vice President, Edward V. LaPuma added, "PSC’s 40% share of the retail, fixed position scanner market establishes the Company as a leader in a dynamic industry. Together with the sales generated by their handheld and industrial automation scanners, the Company’s revenues have grown steadily. Management’s focus on expanding international markets and the development of new products should allow the Company to continue to prosper. This powerful combination of adept management skill and strong core competencies was a critical factor in our positive assessment of the investment. Our dedication to growing the Carey Institutional Properties portfolio with assets that will generate steady income and maintain their value over the long term continues to lead us to solid investments like the PSC facility in Eugene."
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 34 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.
