W. P. Carey Group Closes On Acquisition Of Transcore Holdings Inc.'s Albuquerque, New Mexico Operating Facility
$6.1 Million Sale-Leaseback Complements LBO Financing for Transcore Holdings' Purchase of Amtech
NEW YORK, NY – October 5, 2000 – W. P. Carey & Co. LLC (NYSE: WPC), a leader in the ownership and net leasing of corporate properties, announced today that it has closed on the acquisition of an office and light industrial facility owned by Transcore Holdings Inc. The acquisition was on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a public, non-traded real estate investment trust (REIT) which is a member of the $2.5 billion W. P. Carey Group.
The 74,000 square feet facility consists of 37,000 square feet of first class office space and 37,000 square feet of light industrial manufacturing and research space situated on an 8.33-acre site. The building is located in the North I-25 corridor of Albuquerque, New Mexico, a center of light industrial and corporate style office development. Under the term of the sale-leaseback transaction, the facility will be leased to Transcore under a 15-year, bond-type net lease. The purchase price was approximately $6.1 million.
The facility is part of the Amtech business that was acquired by Transcore on June 30, 2000 under a complex LBO financing. Amtech was formerly owned by a subsidiary of UNOVA Inc.
Transcore is based in Harrisburg, Pennsylvania and is a leading provider of integrated turnkey solutions for intelligent transportation systems (ITS)/telematics and m-commerce. The company has been serving the transportation technology industry for more than 60 years and has installations in over 35 counties. Transcore has approximately 1,400 employees in over 60 offices throughout the United States and abroad.
The acquisition of Amtech brings to Transcore a leading supplier of wireless data technologies, such as radio frequency identification (RFID) devices used in intelligent transportation systems and the related supply chain markets. This acquisition also broadens Transcore's position as a leading technology solutions provider to the rail, intermodal, commercial vehicle fleet, airport parking and ground transportation control markets. Primarily through the Amtech brand, Transcore now has the largest installed base of RFID-based transportation technology with more than 10 million tags and 19,000 readers distributed worldwide.
KRG Capital Partners, L.L.C. is the lead equity sponsor of Transcore. KRG Capital is a private equity investment firm that specializes in partnering with management and employees to acquire middle-market companies and growing them into significantly larger enterprises through the combination of add-on acquisitions and internal growth.
Commenting on the transaction, Gordon J. Whiting, Executive Director and President of CPA®:14, stated, "The Amtech transaction is an example of W. P. Carey's ability to structure sale-leaseback transactions that complement complex financing packages for LBOs and other types of acquisitions. Based on our expertise in designing sale-leaseback transactions that work in tandem with multi-tiered debt and equity structures, KRG Capital Partners invited W. P. Carey to work with them in completing the financing package for the purchase of Amtech by Transcore, one of its portfolio companies. Following the completion of the LBO financing, W. P. Carey closed on the $6.1 million sale-leaseback of Amtech's Albuquerque facility; the proceeds were used to pay down short-term borrowings."
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.
