NEW YORK, NY – May 29, 2001 – W. P. Carey & Co. LLC (NYSE:WPC), a leading real estate investment banking firm and lessor of net leased corporate properties, announced today that it has acquired a key manufacturing facility from Nexpak Corporation ("Nexpak"), one of the world's largest media packaging companies, for approximately $13.6 million. The facility, located in Duluth, Georgia, serves as one of Nexpak's primary manufacturing and distribution centers and will be leased to Nexpak for an initial period of 20 years under a bond-type net-lease.
The 221,374 square foot facility was purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a privately held real estate investment trust (REIT) that invests in single-tenant commercial properties.
Nexpak was formed in August 1999 following the merger of four plastic, injection-molding companies – Atlanta Precision Molding, European Precision Molding, Joyce Molding, and Alpha Enterprises' Media Packaging Division. The Company is a leading producer of compact disc jewel boxes, video and DVD cases, as well as a diversified line of other media packaging products. It currently has eight state-of-the-art automated manufacturing facilities located in the United States and the Netherlands. In addition, Nexpak is a supplier to many top entertainment companies, video rental chains, and video distributors in the world, among them, AOL Time Warner, Blockbuster Home Entertainment, Disney, Dreamworks, Paramount Pictures, Sony Music Entertainment, TDK Electronics, Universal Pictures and Home Video, and Wal-Mart. Private equity funding for the company has been provided by Palladium Equity Partners, LLC.
Edward V. LaPuma, Executive Director of W. P. Carey, said, "This sale-leaseback transaction will effectively 'unlock' the full value of the underlying facility and provide Nexpak with the capital to pay down debt and fund other corporate initiatives. W. P. Carey's experience with industrial companies and its in-depth knowledge of the plastic injection-molding marketplace enabled us to develop this customized financing transaction that met Nexpak's specific requirements. We will continue to work with equity investors, such as Palladium Equity Partners, to design creative financing solutions that meet the specific needs of their portfolio companies."
As of March 31, 2001 CPA®:14 had a diversified portfolio that included 66 properties, net-leased to 44 tenants, throughout the United States. These properties are subject to long-term, triple net leases in which the tenants bear the responsibility for maintaining the premises, insuring the buildings and paying real estate taxes. W. P. Carey & Co. LLC and its affiliate, CPA®:14, targets middle-market tenants and private companies with an eye towards providing creative financing solutions to meet their corporate real estate needs. The firm has found that when a tenant-client removes its real estate from its balance sheet the company is then able to re-deploy this much-needed capital to pay down debt, or finance other corporate initiatives.
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The firm and its affiliates continue to be leading lessors of net leased corporate real estate. W. P. Carey & Co. LLC (NYSE:WPC), the largest publicly traded limited liability company in the world, owns and manages more than 45 million square feet of property in the United States and Europe. The firm is headquartered in Manhattan and has offices in London and Paris. Additional information on W. P. Carey can be found on the firm's website: 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.