W. P. Carey Closes Two Sale-Leaseback Transactions Totaling $26 Million
NEW YORK, NY -- (Marketwire) -- 03/27/13 -- 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 a 272,000 square foot manufacturing and
office facility in Portage, Wisconsin. The property will be leased to
Penda Corporation under a 20 year net lease. The purchase price was
approximately $10 million.
Headquartered in Portage, Penda Corporation is a leading designer,
manufacturer and marketer of heavy gauge thermoformed products. Over
Penda's 37-year history, the company is best known for being a market
leading supplier of drop-in bedliners to General Motors, Ford,
Chrysler, Nissan, and Toyota. Penda also continues to bring its
advanced thermoforming expertise to additional markets including
recreational vehicles, lawn & garden, agriculture and water
management. Penda is owned by Resilience Capital Partners, a
Cleveland, Ohio based private equity firm, and Littlejohn & Company,
LLC, a private equity firm based in Greenwich, Connecticut.
In addition, W. P. Carey announced that CPA(R):17 - Global has
acquired a 62,000 square foot House of Blues entertainment venue and
restaurant facility in Dallas, Texas. The property is leased to a
subsidiary of Live Nation Entertainment, Inc., which also guarantees
the lease. The purchase price was approximately $16 million.
The House of Blues Dallas is one of thirteen House of Blues
facilities owned and operated by Live Nation Entertainment, Inc. The
House of Blues are indoor venues that offer customers an integrated
live music and dining experience. House of Blues Dallas opened in
2007 in the Victory Park development, immediately northwest of
downtown Dallas. The historic structure dates back to the 1920's,
when it housed a White Swan Coffee processing plant. The largest
performance space in the building has capacity for 1,600 people.
Commenting on the Penda transaction, W. P. Carey Managing Director
and Co-Head of Global Investments, Gino Sabatini, noted, "The Penda
financing is a classic example of how W. P. Carey enables portfolio
companies of private equity firms to pay down debt, strengthen their
lance sheets and access the capital value of their real estate
assets to fund operations and growth strategies. Penda's experienced
management team, strong equity sponsorship, established relationships
with customers and distribution channels as well as its competitive
market position were all factors that made this an investment
consistent with our established investment parameters and objective
of generating cash flow for our investors."
Commenting on the acquisition of the building containing The House of
Blues, W. P. Carey Executive Director Chad Edmonson noted, "Given
Live Nation Entertainment's prominence in the live music industry in
combination with the positive market trend of the Victory Park
development, the asset offers attractive risk adjusted returns for
our investors with the support of a strong parent company. We are
looking forward to partnering with Live Nation and House of Blues
W. P. Carey Inc.
Celebrating its 40th anniversary, 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 owns and manages an investment portfolio totaling approximately
$14.1 billion. The largest owner/manager of net lease assets, WPC's
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 the Company to deliver
consistent and rising dividend income to investors for nearly four
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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