W. P. Carey Announces $35 Million of Investments on Behalf of CPA:18 - Global
NEW YORK, May 7, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease REIT specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that it had completed four acquisitions on behalf of CPA®:18 – Global, one of its managed REITs. The total cost of the four acquisitions, which include a total of six facilities located in Georgia and Michigan, was approximately $35 million.
Swift Spinning – Manufacturing Facilities
The two manufacturing facilities, located in Columbus, Georgia, total 432,800 square feet and are leased to Swift Spinning, Inc. ("Swift") for a term of 20 years. Founded in 1906, Swift is the second largest producer of ring-spun cotton yarn in the United States, based on sales to third parties. Swift purchases raw bales of cotton and utilizes the ring-spinning method to manufacture yarn for use in socks, jeans and shirts, among other textiles. The 159,100 square foot Combed Yarn Division Facility was built in 1965 and produces yarn for Swift's Hosiery and Woven segments. The 273,700 square foot East Columbus Facility was built in 1995 and produces yarn primarily for Swift's knitting segment. The two facilities account for all of Swift's yarn production. The total acquisition price of the facilities was approximately $11.3 million.
Northern American Lighting, Inc. – Office Building
The 75,300 square-foot building, located in Farmington Hills, Michigan, is leased to North American Lighting ("NAL") for a period of 12 years and serves as NAL's technology research center. Founded in 1983, NAL designs, manufactures and supplies automotive lighting products for vehicle manufacturers in North America, including BMW, Lexus, Toyota, Ford, Honda, General Motors, Subaru, Daimler Chrysler, Mitsubishi, Mazda, Nissan, and Harley-Davidson. NAL is a subsidiary of Koito Manufacturing Co., a Tokyo Stock Exchange listed company with a market capitalization of JPY286 billion (US$2.8 billion), that manufactures and markets automotive lighting equipment, aircraft parts and other electrical equipment. The total acquisition price was approximately $10.2 million.
Automobile Protection Corporation – Office Building
The 50,600 square foot building, located in Norcross, Georgia outside of Atlanta, is leased to Automobile Protection Corporation ("APCO") for a period of 15 years. Founded in 1984, APCO is a leading marketer and administrator of vehicle service contracts and related benefits sold by automotive dealers throughout the United States. APCO is a portfolio company of global private equity firm Stone Point Capital. The total acquisition price was approximately $5.8 million.
Sur-Flo – Industrial Facilities
The two facilities total 210,100 square and are located in Warren and Fraser, Michigan. The facilities are leased to Sur-Flo Plastics & Engineering, a subsidiary of the Crowne Group, LLC, for a period of 25 years. Crowne Group is a service-provider for leading original equipment, automotive and industrial manufacturers, as well as the retail automotive aftermarket. The transaction follows on CPA®:18 – Global's previously announced acquisition of three Crowne Group manufacturing, warehouse and office facilities located in Indiana and South Carolina. The total acquisition price of the Sur-Flo facilities was approximately $8.0 million.
Gino Sabatini, W. P. Carey Managing Director and Co-Head of Global Investments: "With the closing of these four transactions, W. P. Carey continues to grow the CPA®:18 – Global portfolio by sourcing, structuring and executing on a variety of single-tenant property types in diverse industries and locations. These recent transactions demonstrate our ability to structure acquisitions involving privately and publically owned enterprises that meet our established investment criteria and support our strategy of generating stable, long-term cash flow for investors."
W. P. Carey Inc.
W. P. Carey Inc. is a leading global net-lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide. It also acts as the manager to a series of non-traded REITs. The Company's owned and managed diversified global investment portfolio had a combined enterprise value of approximately $15 billion at December 31, 2013. Its corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades.
This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Sabatini are examples of forward looking statements. A number of factors could cause CPA®:18 – Global'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; and risks related to CPA®:18 – Global's offering of shares. For further information on factors that could impact CPA®:18 – Global, reference is made to CPA®:18 – Global's respective filings with the Securities and Exchange Commission.
W. P. Carey Inc.
Ross & Lawrence
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