• Close

 

Press Release

W. P. Carey Announces First Transaction in China

Company Release - 1/11/2011 8:00 AM ET

$40 Million Financing With Shanghai Forte and Fosun

NEW YORK, NY -- (MARKET WIRE) -- 01/11/11 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today an intended strategic plan to cooperate on investments in China over the next 10 years with Shanghai Forte Land Co., Ltd. ("Forte") and Forte's parent company, Fosun International Limited ("Fosun"). As the first part of the strategic plan, CPA®:17 - Global Incorporated, one of W. P. Carey's publicly held non-traded REIT affiliates, has provided $40 million in financing to a subsidiary of Forte. The financing is being provided through a collateralized loan guaranteed by Fosun.

W. P. Carey President and CEO Trevor Bond commented, "W. P. Carey has spent several years establishing a presence in China. Understanding the importance of having the right local partners to succeed there, we have taken the necessary time to develop our own knowledge of the country, including its unique governmental and regulatory landscape as well as its major institutional and corporate real estate organizations. Having done this, we are very pleased to be developing a close working relationship with Forte and its parent Fosun."

Together with its subsidiaries, Forte is one of the largest property developers in China with the Grade A development qualification issued by the Ministry of Construction. Forte started in the property business in 1994 and has been listed on the Main Board of The Stock Exchange of Hong Kong Limited (HKSE stock code: 02337) since 2004. Currently, Forte is developing projects in Shanghai, Beijing, Tianjin, Wuhan, Chongqing, Chengdu, Xi'an, Changchun, Hangzhou, Nanjing and Wuxi.

Listed on the Main Board of The Stock Exchange of Hong Kong Limited (HKSE stock code: 00656), Fosun is one of the largest non-state-owned conglomerates in China. Its core businesses include pharmaceuticals, property development, steel, mining, retail, services and strategic investments. These businesses are being operated through subsidiaries, jointly-controlled entities and associates: Forte, Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (SSE stock code: 600196), Nanjing Iron & Steel Co., Ltd., (SSE stock code: 600282), Hainan Mining Co., Ltd. and Shanghai Yuyuan Tourist Mart Co., Ltd. (SSE stock code: 600655). All these companies are leading players in their respective industries.

W. P. Carey Asia Managing Director and Head of Asian Investments, Grace Shui, noted, "Our strategy in China has been based on forming relationships with established Chinese companies with whom we can align ourselves to secure solid opportunities for our investors. Our initial financing with Forte will allow us to continue to diversify our global portfolio and gives us the opportunity to benefit from economic growth in the region."

Mr. Bond added, "Although the structure of this initial transaction differs from our traditional sale-leaseback structure, it is consistent with our traditional investment parameters in that it allows us to partner with established, well-capitalized companies, to benefit from their financial strength through their corporate guarantees, to diversify the global holdings of our CPA®:17 - Global portfolio into Asia and to generate steady income for its investors. Given China's strong economy, its urbanization trend and the rise of income and consumption, China continues to be a rising power in the world economy, and this investment of resources in the region represents an important first step for this strategic initiative."

Forte commented, "W. P. Carey is a proven substantial financing partner for corporations, developers and investment firms. Its ability to provide value for its investors through volatile economic and business cycles, while providing a constant source of capital to established and growing companies, made partnering with them very attractive."

Fosun noted, "As Forte's majority shareholder, we actively support Forte's growth and expansion and are pleased to see Forte establishing a new source of financing and a strategic relationship with W. P. Carey, an investment manager with a 37-year investment history and investments around the world. W. P. Carey has taken a thoughtful approach in developing and implementing their investment strategy in Asia and we express our support for this first step towards a longer-term cooperation."

W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio of approximately $10 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of income-generating, non-traded REITs help companies and private equity firms unlock capital tied up in real estate assets. The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 275 long-term corporate obligors spanning 28 industries and 17 countries. http://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.

COMPANY CONTACT:
Kristina McMenamin
W. P. Carey & Co. LLC
212-492-8995
Email Contact

PRESS CONTACT:
Guy Lawrence
Ross & Lawrence
212-308-3333
Email Contact

Source: W. P. Carey & Co. LLC

 

Investor Contacts

Institutional Investors

Peter Sands
Director of Institutional IR
W. P. Carey Inc.
1 (212) 492-1110
Email

Individual Investors

Investor Relations Department
1 (800) WP CAREY (972-2739)
Email

Transfer Agent

Computershare
W. P. Carey Inc.
Shareowner Services
PO Box 505000
Louisville, KY 40233-5000
1 (888) 200-8690