NEW YORK, NY, January 10, 2005 —- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it acquired and leased back two retail stores owned by Plantasjen ASA, the leading garden superstore chain in the Nordic region, for $30.8 million (EUR 22.7 million). The stores, totaling 155,051 square feet, are located in Vantaa, Finland (96,302 square feet) and Linköping, Sweden (58,749 square feet). This transaction represents W. P. Carey’s first investment in Sweden. Plantasjen is a portfolio company of EQT Partners, a leading private equity group in Northern Europe.
The transaction was completed on behalf of Corporate Property Associates 16 – Global Incorporated (CPA®:16 - Global), a member of the $7 billion W. P. Carey Group of income generating, publicly held, non-traded real estate investment trusts (REITs). The properties will be leased back for an initial period of approximately 20- and 25-years in Finland and Sweden respectively.
This latest acquisition adds to W. P. Carey’s rapidly growing portfolio of managed properties in the European market, which consists of more than 13 million square feet. Earlier this month, the W. P. Carey Group acquired and leased back the corporate headquarters of Pohjola Non-Life Insurance Company Ltd. (POH1V.HE), one of the largest Scandinavian insurance companies and financial institutions, for approximately $110 million (EUR 83.6 million). The W. P. Carey Group has invested more than $385 million in Europe over the past twelve months completing transactions with: TietoEnator Plc. ($97.6 million, Finland); the Thales Group SA ($103 million, France); the Polestar Group ($27.8 million, United Kingdom) and the Belgium Government ($16.6 million, Belgium).
Edward V. LaPuma, Chief Investment Officer of W. P. Carey International, said, “We are very pleased to have completed this transaction as it represents our first investment in Sweden and further reflects our interest in broadening our investments throughout the world as companies seek financing to grow and expand their businesses. Whether it’s office, retail or industrial space, regardless of the property-type, if the asset is important, a sale-leaseback allows corporations to monetize their assets and redeploy this capital into their core competencies.”
Dean Zuzic, Chief Executive Officer of Plantasjen, said, “As a high growth, multi-national retailer, we depend on trusted partners to finance our expanding real estate footprint. W. P. Carey is just such a partner, ready and willing to go to where we need to be. We are pleased to have worked with them.”
PLANTASJEN ASA
Founded in 1986, Plantasjen has grown to be the leading garden superstore chain in the Nordic region. The company sells flowers, plants and related accessories as well as garden furniture and other dry goods through its wholly owned store network. Since 1995, Plantasjen has built its current position by rolling out its garden superstores, first throughout Norway, and subsequently, following the acquisition of the Swedish chain Växus and two garden centers in the Helsinki region, in Sweden and Finland. The Plantasjen stores are located at easily accessible locations visible from large traffic routes and have generous parking facilities. The stores are well organized with optimal design enabling convenient and inspiring shopping with extensive opening hours. At year end 2004 Plantasjen will operate a total of 53 stores, 29 in Norway, 21 in Sweden and 3 in Finland. www.plantasjen.no
EQT PARTNERS
Investor AB, part of the Wallenberg group, founded EQT in 1994 in Sweden. EQT’s strategy is an active ownership in close co-operation with the management of the companies it acquires, to develop and implement value-enhancing growth strategies. Today EQT is the leading North European group of private equity funds with equity commitments exceeding EUR 5 billion. EQT Partners, acting as the exclusive investment advisor to all EQT funds, has offices in Munich, Stockholm, Copenhagen and Helsinki. EQT private equity funds have invested in more than 30 companies, with combined sales in excess of EUR 7 billion. www.eqt.se
W. P. CAREY & CO. LLC
Founded in 1973, W. P. Carey & Co. LLC is a global investment firm concerned with assisting corporations with various forms of long-term financing. The Company also provides asset management services to the Corporate Property Associates (CPA®) series of income generating, publicly held non-traded real estate investment trusts (REITs). With $3.5 billion in equity capital, the W. P. Carey Group is one of the leading providers of net lease financing for corporate properties worldwide. The Group owns 650 commercial and industrial properties worldwide, representing more than 89 million square feet, valued at approximately $7 billion. www.wpcarey.com/finance
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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.