Corporate Property Associates 14 Acquires Scott Company Regional Headquarters and Main Production/Distribution Facilities
NEW YORK, NY – August 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 regional corporate headquarters and main manufacturing and distribution facilities of The Scott Co. of California on behalf of Corporate Property Associates 14 (CPA®:14). CPA®:14, a public non-traded real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group. The property is located on a 6.63 acre site in Gardena, California and is leased to The Scott Co. of California under a 20-year bond type net lease. The purchase price of the 86,924 square foot facility was approximately $6.3 million. This marks the second transaction between the W. P. Carey Group and Scott. In 1997, CPA®:12, also a member of the W. P. Carey Group, acquired Scott’s main corporate headquarters and distribution facilities in San Leandro, California and leased the facilities back to Scott under a 20-year lease.
Scott, one of the largest specialty contractors in America, has been in business for over 100 years and has a consistent record of profitability. The sale-leaseback financings arranged by W. P. Carey have allowed Scott to strengthen its balance sheet and expand its bonding capacity thereby supporting its expansion into high-tech industries and power generation.
Commenting on the investment, W. P. Carey Senior Vice President Gordon J. Whiting noted, "This transaction demonstrates our commitment to meeting the ongoing financing needs of our corporate tenants. The success of our original sale-leaseback of Scott’s corporate headquarters two years ago and our ongoing strong relationship with management allowed us to meet their current financing needs on the regional facilities in Gardena. In addition to being a strategic real estate asset that is essential to Scott’s operations, the facility’s location one mile east of the Harbor Freeway and 1.5 miles north of the Artesia-Redondo Freeway provides ready access from all directions. Not only were we able to satisfy Scott’s financing needs, but we have also added a strong tenant with quality real estate that we believe will strengthen CPA®:14’s portfolio."
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.
