NEW YORK, NY - April 28, 2003 - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it has acquired and leased-back the worldwide headquarters and key manufacturing center from Rochester, MN-based PEMSTAR Inc. (NASDAQ: PMTR), a leading provider of global engineering, manufacturing and fulfillment services to technology companies, for approximately $12.5 million.
The facility, which consists of 260,000 square feet, contains 85,000 square feet of office space and 175,000 square feet of general manufacturing space. The facility will be leased under a 20-year bond-type net lease. It was purchased on behalf of Corporate Property Associates 15 Incorporated (CPA®:15) the latest member of the $5 billion W. P. Carey Group of publicly held non-traded real estate investment trusts (REITs).
Anne R. Coolidge, Managing Director at W. P. Carey and President of CPA®:15, said, "As a leading service provider to technology companies throughout the world, PEMSTAR's management team and business strategy played an important role when we considered this sale-leaseback financing transaction. We believe it's important to understand a company's core business strategy and to be familiar with how its management operates. We were pleased with both aspects of PEMSTAR and are pleased to add it the growing list of companies that are currently part of CPA®:15's diversified portfolio of net-leased corporate properties."
Greg Lea, Executive Vice President and Chief Financial Officer of PEMSTAR, said "This sale-leaseback will assist us in reducing debt, position us for future growth and allow us to better serve our customers' needs."
This latest acquisition adds to W. P. Carey's growing managed portfolio of properties in Minnesota and the greater Rochester area, which consist of approximately one million square feet. The properties, which are owned by W. P. Carey & Co. LLC and its affiliates, include previous warehouses, distribution centers, corporate offices and retail centers leased to Applied Power, Inc., Brown Institute Ltd., Buffets, Inc., and PETsMART, Inc.
PEMSTAR Inc. (www.pemstar.com) provides a comprehensive range of engineering, manufacturing and fulfillment services to customers on a global basis through facilities strategically located in the United States, Mexico, Asia, Europe and South America. The Company's service offerings support customers' needs from product development and design, through manufacturing to worldwide distribution and aftermarket support. PEMSTAR has over one million square feet in 15 locations worldwide.
CPA®:15 invests in single-tenant commercial properties which are typically purchased under a long-term, triple-net lease in which the tenant is responsible for maintaining the premises, insuring the buildings and paying real estate taxes. CPA®:15 currently has an ownership interest in 88 facilities net-leased to 27 tenants comprised of more the 12.7 million square feet throughout the U.S. and Europe.
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 the leading lessors of net leased corporate real estate in the United States. As the largest publicly traded limited liability company in the world, the company owns and/or manages more than 550 commercial and industrial properties throughout the United States and Europe comprised of more than 75 million square feet.
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.
In addition to factors discussed above, risks and uncertainties that may cause such differences for PEMSTAR include but are not limited to: a continued recession or continued decline in economic conditions; rumors or threats of war; actual conflicts or trade disruptions; changes in demand for electronics manufacturing services; changes in demand by major customers due to cancellations, reductions or delays of orders; shortages or price fluctuations in component parts; difficulties managing expansion and integrating acquired businesses; increased competition and other risk factors listed from time to time in PEMSTAR's Securities and Exchange Commission filings, including but not limited to Exhibit 99 of the PEMSTAR's Annual Report on Form 10-K for the fiscal year ended March 31, 2002, and PEMSTAR's quarterly reports on form 10-Q filed with the SEC.