W. P. Carey Group Acquires Five Facilities Owned By Applied Power Inc.
$29.1 Million Sale-Leaseback Includes Company's Electronics Facilities in New Jersey, Minnesota, Utah, Indiana and Virginia
NEW YORK, NY – June 13, 2000 – W. P. Carey & Co. LLC, a leader in the ownership and net leasing of corporate properties, announced today that it has acquired five light-industrial/warehouse/distribution facilities owned by Applied Power Inc. (NYSE: APW) on behalf of Corporate Property Associates 14 (CPA®:14). CPA®:14, a real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group. The properties, located in Robbinsville, NJ; Champlin, MN; Salt Lake, UT; Monon, IN; and Radford, VA consist of an aggregate 841,000 square feet. The facilities will be leased to APW North America, Inc., a wholly owned subsidiary of Applied Power Inc., under a 17-year, bond-type, net lease.
Applied Power Inc., headquartered in Waukesha, Wisconsin, is comprised of two business segments: electronics and industrial. The electronics segment is focused on the rapidly growing integrated electronic enclosure systems market and supplies electronic enclosures, power supplies, thermal systems, back planes and cabling either as stand-alone products or integrated as a system. In addition, this segment provides supply chain management, new product design, assembly and test services. The industrial segment is composed of standard and customized OEM products sold into a variety of niche markets.
Commenting on the transaction, W. P. Carey Executive Director Edward V. LaPuma stated, "The transaction with Applied Power exemplifies W. P. Carey's ability to meet the particular financing needs of companies across a broad range of industries. In order to accommodate an evolving multi-tiered corporate structure and the spin-off of a new company, the transaction involved a level of complexity that many traditional financing sources would find difficult to analyze and evaluate. Furthermore, the acquisition involved the simultaneous purchase of five properties spread across the U.S., which required substantial real estate due diligence. We are pleased to report, however, that we were able to meet the deadline required by Applied Power and completed the transaction in approximately 40 days."
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.
