W. P. Carey Closes First UK Sale-Leaseback Transaction
Purchase Of Gloystarne & Co. Distribution Facility Launches £500 Million Acquisition Program
LONDON, UK – January 12, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced today that it has closed on the acquisition of a 119,000 square foot distribution warehouse, located in Rotherdam, England, on behalf of Carey Institutional Properties (CIP®). CIP®, a private real estate investment trust (REIT), is a member of the $3 billion (£1.875 billion) W. P. Carey Group, which has a history of more than 25 years in the ownership, financing and management of corporate real estate. Celexa Real Estate Investment Management assisted W. P. Carey with the acquisition.
The Facility is leased to Gloystarne & Co., an ambient consolidator for the grocery, confectionery and pharmaceutical industries, under a 20 year fully repairing and insuring (FRI) lease. Gloystarne's largest shareholder is 3i, one of the largest and oldest private equity companies in the U.K. with over £4 billion ($6.4 billion) assets under ownership. The net purchase price of the facility was £3.965 million ($6.34 million).
Commenting on the transaction, W. P. Carey First Vice President, Anne R. Coolidge, noted, "Gloystarne is the type of company that can benefit from the advantages of long term sale-leaseback financing. By including a sale-leaseback as part of a corporate restructuring the company has been able to monetize its physical assets and use the proceeds to lower existing debt levels thereby positioning the company for future profitability and growth. Because of W. P. Carey's years of experience in recognizing emerging credits and establishing financing facilities for all types of companies, we are able to provide funding to less recognized companies such as Gloystarne where more traditional types of debt and equity financing might not be as attractive."
Founded in 1972, Gloystarne serves manufacturers and importers with a full distribution package including storage and delivery to major supermarkets, wholesalers and independent retailers across the United Kingdom. Gloystarne supports its distribution services with a full range of ancillary services like repack, rewrap and assembly of export goods for distribution.
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 U.S. 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 the U.S. and Europe. The W. P. Carey Group's properties have an aggregate value of approximately $3 billion (£1.875 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.
