W. P. Carey Group Closes on Arizona Headquarters of AdvancePCS
$39.8 Million Sale-Leaseback of 351,000 Square Foot Scottsdale, Ariz., Property
NEW YORK, NY – October 25, 2000 – W. P. Carey & Co. LLC (NYSE: WPC), a leader in the ownership and net leasing of corporate properties, announced today that it has acquired a facility occupied by PCS Health Systems, Inc., formerly a wholly owned subsidiary of Rite Aid Corporation. The transaction was executed in conjunction with Rite Aid's sale of PCS to Advance Paradigm, Inc., which resulted in the formation of AdvancePCS, the nation's largest health improvement company. The property acquisition was made on behalf of Corporate Property Associates 14, Inc. (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 351,000-square-foot property, which currently serves as AdvancePCS's largest operating facility and one of its dual headquarters locations, is in Scottsdale, Ariz. The facility is leased to AdvancePCS for an initial term of 21 years under a bond-type net lease. The purchase price of the facility was approximately $40 million.
AdvancePCS provides pharmacy benefit management and other services to more than 75 million health plan members, including prescription claims processing, mail service pharmacy, formulary management (the list of drugs covered by a given health plan) for its health plan customers, and call center support. In addition to these core activities, the company provides value-added programs such as communicating emerging medical and pharmaceutical trends to customers, data management, an online pharmacy, consumer e-health portal and other Internet offerings.
Commenting on the transaction, W. P. Carey Executive Director and President of CPA®:14, Gordon J. Whiting, stated, "The transaction with AdvancePCS demonstrates the benefits available through sale-leaseback financing for corporations looking to complete complex, large transactions effectively and efficiently. This particular transaction involved a level of complexity that many traditional financing sources would find difficult to analyze and evaluate. We are pleased that all parties involved were able to recognize the value proposition of working with our group and all agree that the transaction was a 'win' for everyone assisting in the completion of the acquisition of PCS by Advance Paradigm."
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 in the USA 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.
