NEW YORK, NY - August 14, 2001 - W. P. Carey & Co. LLC (NYSE: WPC), a leading real estate investment banking firm and lessor of net leased corporate properties, announced today it has acquired and leased-back three properties belonging to Gerber Scientific Inc. for $19.7 million.
Under the terms of the sale-leaseback transaction, the properties, which are located in South Windsor and Manchester, Connecticut, will be leased to Gerber Scientific as part of a 17-year bond-type net lease with two additional ten-year options. The sites currently serve as Gerber Scientific's corporate headquarters and primary manufacturing/distribution space for two of its subsidiaries: Gerber Coburn Optical, Inc. and Gerber Scientific Products, Inc. They are located in the greater Hartford, Connecticut area, just off Interstate 84, and include: a 194,000-square-foot single story office/light assembly building on 13.74 acres at 83 Gerber Road West in South Windsor; a 60,000-square-foot single story office and industrial structure on 5.18 acres at 55 Gerber Road West in South Windsor; and a 93,500-square-foot single story office and industrial facility on 9.36 acres at 151 Batson Drive in Manchester.
The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated (CPA®:14), a member of the W. P. Carey Group.
Edward V. LaPuma, Executive Director of W. P. Carey, said, "W. P. Carey and its affiliate, CPA®:14, target middle-market tenants and private companies with an eye toward providing creative financing solutions to meet their corporate real estate needs. When a company removes real estate from its balance sheet, it is then able to reallocate this much-needed capital to pay down debt, or finance other corporate initiatives."
"After careful credit analysis and working closely with Gerber Scientific management, we were able to tailor this transaction to meet Gerber's specific needs. The sale-leaseback arrangement of these properties will enhance CPA®:14's already diverse portfolio and provide further stability," concluded Mr. LaPuma.
"A sale-leaseback transaction simply converts real estate into cash, which can then be more effectively used," stated Lynn M. Wytas, Treasurer, Gerber Scientific Inc. "Debt reduction continues to be our focus, and monetizing a capital asset helps us to achieve our goal of lowering the company's leverage."
CPA®:14 is a public, non-traded real estate investment trust (REIT) that invests in single-tenant commercial properties. These properties are subject to long-term, triple-net leases in which the tenants bear responsibility for maintaining the premises, insuring the buildings and paying real estate taxes.
As of June 30, 2001, the trust's diversified portfolio contained 73 properties net-leased to 45 tenants throughout the United States with total assets of more than $780 million. W. P. Carey & Co. LLC and its affiliates specialize in corporate real estate financing through the corporate net lease, or sale-leaseback structure. The largest publicly traded limited-liability company in the world, W. P. Carey was founded in 1973, and owns and manages more than 46 million square feet of property in the United States and Europe. The $3 billion firm is headquartered in Manhattan and has offices in London and Paris. Additional information is available on the firm's website: www.wpcarey.com
Gerber Scientific Inc. provides high technology systems and solutions that enable mass customization in diverse industries. Headquartered in South Windsor, Conn., Gerber Scientific is the world leader in three core markets - sign making and specialty graphics, apparel and flexible materials, and optical lens processing - which it serves through four wholly owned subsidiaries: Gerber Scientific Products, South Windsor, Conn.; Spandex PLC, Bristol, England; Gerber Technology, Tolland, Conn.; and Gerber Coburn Optical Inc., South Windsor, Conn. In addition, the company recently entered the packaging industry through its newly formed Gerber Innovations division, Manchester, Conn., and is currently bringing a new concept in point-of-sales merchandising to U.S. retailers via SignStorey Inc., Tolland, Connecticut. Gerber Scientific employs about 2,600 globally.
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.