NEW YORK, NY – February 7, 2001 – Corporate Property Associates 14 Incorporated (CPA®:14), today announced that it has acquired from W. P. Carey & Co. LLC a 60% interest in the world-wide information technology headquarters campus leased to Federal Express Corporation ("FedEx") located in Collierville, Tennessee. The acquisition of the interest in the FedEx campus enhances the diversity of CPA®:14's portfolio, lengthens its average lease term, and improves its tenant credit profile. CPA®:14, a public non-traded real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group.
The technology campus consists of four buildings with an aggregate square footage of 400,000 located on approximately 50 acres of land. The acquired facilities are leased to FedEx under a triple net lease with a remaining lease term of approximately 19-years. The total cost of the acquisition of the interest in the facilities was approximately $44.3 million.
Federal Express Corporation is the world's largest express transportation company. Leveraging its unmatched air route authorities and extensive air/ground infrastructure, the company connects markets that comprise 90% of the world's economic activity. The Federal Express Corporation's global transportation network provides rapid, reliable, time-definite delivery of documents, packages and freight shipments worldwide. A state-of-the-art information technology network enables information-rich service offerings. More than 2.5 million customers are connected electronically with Federal Express Corporation – through its Web site for its customer automation systems – and about two-thirds of U.S. domestic transactions are processed electronically every business day.
Commenting on the transaction, Gordon J. Whiting, President and Portfolio Manager of CPA®:14 stated, "This transaction illustrates CPA®:14's ability to capitalize on significant investment opportunities that will enhance the strength and diversity of the portfolio. In addition to serving a critical role in the future of the world's largest express transportation company, the Class A facility is located in the rapidly growing Collierville area, which has the advantage of an abundant supply of high quality housing. This should provide substantial support for the value of the underlying real estate over the long term."
Founded in 1973, W. P. Carey & Co, a leader in the ownership and net leasing of corporate properties, specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The $2.5 billion W. P. Carey Group, which includes the firm and its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. The W. P. Carey Group includes the largest publicly traded Limited Liability Company listed on the New York Stock Exchange which manages four real estate investment trusts (REITs). Collectively, the W. P. Carey Group owns or manages over 42 million square feet of property located in the United States and Europe leased to a diverse group of corporate tenants across the credit spectrum. CPA®:14 was created in 1997. More information on CPA®:14 can be found on the Company's Web site: www.cpa14.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.