NEW YORK--(BUSINESS WIRE)--
The New York Times Company and investment firm W. P. Carey & Co. LLC
announced today that they had entered into a sale-leaseback transaction
for $225 million for part of the space that the Times Company owns in
its New York headquarters. The purchase was made by W. P. Carey and two
of its publicly-held, non-traded REIT affiliates, CPA(R):16 -
Global and CPA(R):17 - Global.
The transaction encompasses 21 floors, or approximately 750,000 rentable
square feet, currently occupied by the Times Company. The 52-story
building, designed by Italian architect Renzo Piano and completed in
2007, is located on Eighth Avenue, between 40th and 41st
Streets.
"W. P. Carey was able to clearly understand our Company, our facility
and our objectives," said Janet L. Robinson, president and CEO, the
Times Company. "Its history and outstanding reputation in the
sale-leaseback industry gave us the confidence that it would be the
right firm with which to do this transaction."
"W. P. Carey continues to provide - as it has for more than 35 years -
sale-leaseback financing to companies in all stages of the credit
cycle," noted Gordon F. DuGan, president and CEO, W. P. Carey. "We are
proud to work with such a world-class media company and to purchase such
a world-class asset. Today's economic environment presents incredible
challenges and opportunities, and we look forward to adhering diligently
to the defensive, risk management-driven investment strategy that has
provided historically solid performance."
The lease term is 15 years and there is an option for the Times Company
to repurchase the condominium interest for $250 million during the 10th
year of the lease term. The rental payment will be $24 million for the
first year and will escalate through the term of the lease. The Times
Company plans to use the proceeds to retire long-term debt.
The Times Company was advised by Andrew Sachs and Michael Rotchford of
Cushman & Wakefield.
The New York Times Company (NYSE: NYT), a leading media company with
2008 revenues of $2.9 billion, includes The New York Times, the
International Herald Tribune, The Boston Globe, 16 other daily
newspapers, WQXR-FM and more than 50 Web sites, including NYTimes.com,
Boston.com and About.com. The Company's core purpose is to enhance
society by creating, collecting and distributing high-quality news,
information and entertainment.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those predicted by such forward-looking
statements. These risks and uncertainties include national and local
conditions, as well as competition, that could influence the levels
(rate and volume) of retail, national and classified advertising and
circulation generated by our various markets and material increases in
newsprint prices. They also include other risks detailed from time to
time in the Times Company's publicly filed documents, including the
Company's Annual Report on Form 10-K for the year ended December 28,
2008. The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company
that provides long-term sale-leaseback and build-to-suit financing for
companies worldwide and manages a global investment portfolio worth
approximately $10 billion. Publicly traded on the New York Stock
Exchange (WPC), W. P. Carey and its CPA(R) series of
income-generating, non-traded REITs help companies and private equity
firms unlock capital tied up in real estate assets. The W. P. Carey
Group's investments are highly diversified, comprising contractual
agreements with approximately 300 long-term corporate obligors spanning
28 industries and 14 countries. http://www.wpcarey.com
This press release contains forward-looking statements within the
meaning of the Federal securities laws. A number of factors could cause
W. P. Carey'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.
This press release can be downloaded from www.nytco.com
and www.wpcarey.com.
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Source: The New York Times Company
Contact: For The New York Times Company
Catherine J. Mathis, 212-556-1981
mathis@nytimes.com
or
Paula Schwartz, 212-556-5224
paula.schwartz@nytimes.com
or
For W. P. Carey & Co. LLC
Ross & Lawrence
Guy Lawrence, 212-308-3333
gblawrence@rosslawpr.com
or
Kristina McMenamin, 212-492-8995
kmcmenamin@wpcarey.com