W. P. Carey Announces Acquisition of Houston CBD Office Tower
NEW YORK, NY -- (Marketwire) -- 11/20/12 -- W. P. Carey Inc. (NYSE:
WPC), a real estate investment trust ("REIT"), announced today that
CPA(R):17 - Global, one of its publicly held non-traded REIT
affiliates, has acquired an office tower in Houston, Texas. The
property is primarily leased to Kellogg Brown & Root, Inc. ("KBR"),
which occupies approximately 900,000 square feet under a net lease
with a remaining term of approximately 18 years. The 1,047,748 square
foot building is 99.8% leased, with the majority leased by KBR, and
the balance occupied by a mixture of office and retail tenants. In
addition to the 40 story office tower, the acquisition includes a
1,499 stall parking garage.
KBR (NYSE: KBR) is a global engineering, construction and services
company supporting the energy, hydrocarbon, government services,
minerals, civil infrastructure, power, industrial, and commercial
Commenting on the acquisition, W. P. Carey Executive Director Chad
Edmonson noted, "We are extremely excited to work with a great tenant
like KBR as well as complete yet another transaction with an
affiliate of Brookfield. In addition, as an important location for
KBR it meets our criteria of acquiring critical facilities leased to
established corporate tenants on a long term basis. The property's
prime location in Houston's CBD was also a positive factor in our
overall analysis of the investment."
Dennis Friedrich, chief executive officer of Brookfield Office
Properties, noted, "Given their long term investment outlook and
appreciation of the long term lease with KBR, W. P. Carey was the
ideal purchaser for this asset. As they have on past deals with
Brookfield affiliates, they were able to turn the transaction around
quickly and meet our critical timing and other closing requirements."
Reed Smith LLP represented CPA(R):17 - Global as general real estate
and transaction counsel in connection with the closing.
Allied Advisors represented CPA(R):17 - Global in securing
acquisition financing and also represented the seller with respect to
the disposition of the property.
W. P. Carey Inc.
W. P. Carey Inc. is a publicly traded REIT (NYSE:
WPC) that provides long-term sale-leaseback and build-to-suit
financing for companies worldwide and manages an investment portfolio
of approximately $13.3 billion. W. P. Carey Inc. is the successor to
W. P. Carey & Co. LLC, which had its origins in 1973. The largest
owner/manager of net lease assets, our corporate finance focused
credit and real estate underwriting process is a constant that has
been successfully leveraged across a wide variety of industries and
property types. Our portfolio of long-term leases with creditworthy
tenants has an established history of generating stable cash flows
that have enabled us to deliver consistent and rising dividend income
to investors for nearly four decades. www.wpcarey.com
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.
W. P. Carey Inc.
Ross & Lawrence
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