NEW YORK, NY – January 23, 2001 – W. P. Carey & Co. LLC (NYSE:WPC), a leader in the ownership and net leasing of corporate properties, today announced its participation in the financing of the buy-out of London Stock Exchange quoted BLP Group ("BLP") from shareholders, through a £5.5 million sale leaseback of BLP's facility near Doncaster. This transaction represents an innovative route for mid-market companies to obtain financing for expansion and buyout. BLP management is providing equity capital and Lloyds TSB is providing debt as part of the transaction. The facility, located in Doncaster, in the county of South Yorkshire, was purchased on behalf of Corporate Property Associates 14 (CPA®:14). CPA®:14, a public non-traded real estate investment trust (REIT), is a member of the $2.5 billion W. P. Carey Group.
The 227,510 square foot facility is used as BLP's headquarters and main manufacturing facility. The manufacturing operations include the production of a wide variety of wood-based components for the furniture industry. The facility is comprised of three large single story loft warehouse/factory buildings with integral offices and amenities; one is interlinked to a newly built two-story office building. In addition to the warehouse and office facilities, the site includes car parking areas and six acres of additional land available for further expansion. Under the terms of the sale-leaseback transaction, the facility is leased to BLP under a 30-year triple-net lease. The total cost of the facility was £5.5 million (approximately $8.25 million U.S.).
BLP (Bonded Laminate Profiles), founded in 1910, is the UK's largest manufacturer of wrapped moldings and polyvinyl chloride pressed membrane panels used in kitchen, bathroom and office furniture. The company has a strong customer base that includes B&Q, Hygena, and United Kitchens. Its Doncaster Design Center, which brings together all BLP products and offers a practical service to designers working for large customers, is unique in its industry and has attracted praise from designers and retailers. In the past year, BLP has undergone significant streamlining and restructuring, including the sale of its US businesses and the acquisition of two UK businesses. BLP's management believed that its share price did not reflect improved performance and profits, suffering from being in the small to mid-cap and old economy sectors. Management therefore decided the best way to finance new product development and expansion in Europe was to take the company private.
Commenting on the transaction, Anne Coolidge who heads W. P. Carey's operations in the United Kingdom stated, "With the public markets averse to companies of BLP's size and business, raising additional funds in the capital markets is not an attractive option at this time. Small to mid cap companies like BLP can benefit from the advantages of long term sale leaseback financing and W. P. Carey, with over 25 years' experience in providing flexible and creative funding, offers a good asset-based alternative to the public markets."
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm and its affiliates is one of the largest lessors of net leased corporate real estate in the nation. W. P. Carey & Co. LLC (NYSE: WPC), the largest publicly traded Limited Liability Company in the world, owns and manages over 42 million square feet of property in the USA and Europe. Additional information about W. P. Carey is available on the company's Web site: 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.