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Press Release

W. P. Carey Provides EUR155 Million Sale Leaseback Financing to C1000

Company Release - 1/19/2011 8:00 AM ET

Acquires Six Logistics Centres From Netherlands Food Retailer

NEW YORK, NY and LONDON -- (MARKET WIRE) -- 01/19/11 -- W. P. Carey & Co. LLC (NYSE: WPC), the global investment management company specializing in long term sale leaseback and build to suit financing, today announced that one of its publicly-held, non-traded REIT affiliates, CPA®:17 - Global, has completed a €155 million ($207 million) long term sale leaseback financing transaction with C1000 B.V., a leading Dutch supermarket company.

W. P. Carey has acquired a portfolio of six logistics properties from C1000, located across the Netherlands, which will be leased back to C1000 under a long term triple net lease. The portfolio represents the complete distribution network of C1000, supplying all of its supermarket stores in the country. With annual consumer sales of €3.7 billion, C1000 and its franchisee network comprise the second largest food retailer in the Netherlands.

This transaction brings the total assets under management by W. P. Carey outside the U.S. to more than $3 billion, representing approximately one third of W. P. Carey's total assets under management.

Jeffrey Lefleur, Executive Director of W. P. Carey, said:

"The transaction marks W. P. Carey's second deal in the Netherlands and largest European sale leaseback since 2007, capping off a 12-month period where we have provided more than $600 million in alternative long term financing to companies throughout Europe.

"The transaction supports our business model of providing long term financing solutions through the acquisition and leaseback of a company's critical operating assets. C1000's solid market position, together with strong equity sponsorship from CVC Capital Partners, made it an excellent investment opportunity for W. P. Carey and a significant addition to our European portfolio, which we continue to grow and diversify by sector and geography."

Tom Heidman, CEO of C1000, said:

"W. P. Carey's investment has allowed us to convert illiquid fixed assets into cash. Our ability to reinvest this capital in our retail business supports our growth initiatives, including re-branding to the new 'C1000 Red' store format as well as allowing us to pay down debt and optimize our capital structure."

Reed Smith LLP & NautaDutilh N.V. were legal advisors to W. P. Carey, while C1000 was represented by Lexence N.V.

W. P. Carey's recent investment activity in Europe has included the following transactions:

  • DTS, Spain

January 2011; W. P. Carey provided €86 million ($113 million) in long term alternative financing to Spain's largest digital pay television company through the sale leaseback of its Madrid office headquarters.

  • Agrokor, Croatia

April and December 2010; W. P. Carey acquired a logistics portfolio and Konzum retail store portfolio for €126 million ($166 million) in Zagreb, Croatia.

  • Eroski, Spain

June 2010; W. P. Carey completed the sale leaseback of two warehouse logistics facilities in Elorrio and Mallorca, Spain, for €46 million ($55 million), following a €74 million ($104 million) sale leaseback that was completed with Eroski over two tranches in February 2010 and December 2009.

  • TDG, UK

May 2010; W. P. Carey completed a £24 million ($37 million) sale leaseback transaction with TDG Limited for a portfolio of cold storage facilities.

About 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

About C1000 B.V.

C1000 is the second largest food retailer in the Netherlands. A full service supermarket chain with 390 stores, the majority of the stores are run by independent entrepreneurs. It is a strong, successful formula with the emphasis on fresh produce, value and local differentiation. C1000 is a member of the purchasing organization BIJEEN, and has 25% share in the Dutch food buying market. In July 2008 CVC Capital Partners became the majority shareholder at C1000.

About CVC Capital Partners

CVC is one of the world's leading private equity and investment advisory firms. Founded in 1981, CVC currently manages over US$38 billion and is investing from CVC Tandem Fund, CVC Fund V and CVC Asia III, with an aggregate of approximately US$10 billion in available equity capital. Today, CVC Funds own 58 companies worldwide, employing over 400,000 people in numerous countries. Together, CVC portfolio companies have combined annual sales of over US$100 billion.

This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause W. P. Carey'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.

For W. P. Carey & Co. LLC:
Dan de Belder/Rosanne Perry
+44 207 861 3232
Email Contact

Guy Lawrence
Ross & Lawrence
+ 1 212-308-3333
Email Contact

Kristina McMenamin
+ 1 212-492-8995
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

Capital Markets

Jeremiah Gregory
Head of Capital Markets
W. P. Carey Inc.
1 (212) 492-1135

Individual Investors

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

Transfer Agent

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

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