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Press Release

W. P. Carey Announces Financing of Panattoni Development in Poznan, Poland

Company Release - 8/17/2010 8:00 AM ET

NEW YORK, NY -- (MARKET WIRE) -- 08/17/10 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that its publicly-held, non-traded REIT affiliate, CPA®:17 - Global, has provided build to suit financing that will fund 100% of the construction and related development costs for a logistics facility in Poznan, Poland being developed by Panattoni Europe. Upon completion, the facility will be owned by CPA®:17 and will be fully occupied under a long term triple net lease with Neuca SA (formerly known as Torfarm SA), the largest wholesale pharmaceutical distributor in Poland.

The to-be-built facility will comprise approximately 123,000 square feet and will serve as one of Neuca's three strategic logistics sites for pharmaceutical distribution across Poland. The facility is located in Poznan, the 4th largest logistics hub in Poland. Linking seven national and international roads and located midway between Berlin and Warsaw, Poznan forms an important trade-route junction. Construction is anticipated to be completed in January 2011.

Jeff Lefleur, Executive Director of W. P. Carey, said:
"Our large capital base and long term investment approach gives us the ability to finance 100% of construction and related development costs in markets where such capital remains challenging for developers to access. We hope to continue being a reliable funding source to experienced developers such as Panattoni for their long term, single-tenant projects. We are also pleased that our financing will help Neuca meet its new facility needs."

Robert Dobrzycki, Managing Partner of Panattoni Europe, noted:
"Choosing W. P. Carey as our funding source enabled us to focus on the needs and timing of the project, avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part."

Robert Piątek, ViceCEO of Neuca, said:
"Neuca has experienced a period of sharp growth over the past four years, requiring attention to the consolidation and integration of our logistics platform. We are delighted that W. P. Carey & Panattoni joined together on this project to construct and deliver the strategic asset we require."

Build to suit financing allows developers and companies to fund 100% of development costs for corporate facilities while simultaneously locking in permanent long term financing. In the current uncertain economic and interest rate environment, securing long term capital prior to construction enables developers and corporations to avoid the risk of uncertain financing terms upon completion. W. P. Carey provides build to suit financing in Europe and the United States. The Company recently announced a build to suit financing transaction for a distribution facility in Bowling Green, Kentucky for Sun Products Corporation, a leading North American provider of fabric and dish care products.

Notes to editors:

In the past year, W. P. Carey and its CPA® series of REITs have completed approximately EUR 250 million ($340 million) in sale leaseback transactions in Europe, including those listed below:

  • Eroski, Spain
    • June 2010; W. P. Carey acquired two warehouse logistics facilities in Elorrio and Mallorca, Spain, for EUR 46 million ($55 million).
  • Agrokor, Croatia
    • April 2010; W. P. Carey acquired two office and logistics facilities in Zagreb, Croatia. The transaction is W. P. Carey's first in Croatia and was for a total consideration of EUR 77 million ($101 million).
  • TDG, UK
    • May 2010; W. P. Carey announces £24 million ($37 million) sale leaseback with TDG Limited for a portfolio of cold storage facilities.
  • Eroski, Spain
    • February 2010; W. P. Carey completes second tranche of a total EUR 74 million ($104 million) sale leaseback with Eroski.
    • W. P. Carey completed the first part of this Spanish sale leaseback transaction in December 2009.
  • OBI, Poland
    • October 2009; W. P. Carey entered into a sale leaseback transaction with the OBI Group totaling approximately EUR 10 million ($15 million).
  • National Express, UK
    • September 2009; W. P. Carey entered into a build to suit transaction with National Express Ltd totaling approximately £17 million ($27 million).

W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that provides long term financing to companies worldwide via sale leaseback and build to suit transactions and manages a global investment portfolio of approximately $10 billion. Through its CPA® series of income-generating, non-traded REITs, W. P. Carey helps 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 16 countries. http://www.wpcarey.com

Panattoni Europe
During the last 5 years, Panattoni Europe has developed more than 75 million square feet of space throughout the world. The firm provides European business with property solutions for their logistical, retail and office requirements by designing facilities specifically geared to individual needs. Panattoni Europe has been operating in Poland since 2005. During this time, the company has developed 23 parks offering over 1.2 million square meters of modern industrial space. Panattoni Europe's customer base includes such global brands as: Avon, Bertelsmann, Cat Logistics, Coca-Cola, Flextronics, Gefco, H&M, Intermarche, Leroy Merlin, Schenker, Tesco and Wincanton. http://www.panattoni.pl

Neuca SA
Neuca SA is engaged in wholesale distribution of pharmaceuticals. With 5,000 employees, the Company distributes approximately 600 brands to over 12,000 pharmacies across Poland. The Company was founded in 1990, and was listed on the Warsaw Stock Exchange in 2004. It has grown through multiple acquisitions to become the leader in the Polish wholesale pharmaceutical market, generating more than EUR 1.3 billion in annual revenues from a 30% national market share.

Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.

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.

For W. P. Carey & Co. LLC:
Europe
Samantha Boston
+44 207 861 3889
Email Contact

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

Kristina McMenamin
+ 1 212-492-8995
Email Contact

 

Investor Contacts

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Peter Sands
Director of Institutional IR
W. P. Carey Inc.
1 (212) 492-1110
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1 (800) WP CAREY (972-2739)
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W. P. Carey Inc.
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1 (888) 200-8690

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