W. P. Carey Acquires $25 Million Infineon Office and R&D Facility in Warstein, Germany on Behalf of CPA:18 - Global

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Purchase from RFR Group adds highest energy rated asset to managed REIT portfolio

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Oct 02, 2014, 07:30 ET

NEW YORK, Oct. 2, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust (REIT) specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that CPA^®:18 – Global, one of its managed non-traded REITs, has acquired an office and research & development facility leased to Infineon Technologies AG (Infineon). The facility is located in Warstein, Germany and was acquired from RFR Group, a global real estate investment and development group, for $25 million (€20 million).

Key Facts

W. P. Carey acquires Infineon office and R&D facility on behalf of CPA:18 - Global. Located in Warstein, Germany the building was acquired from global real estate investment and development group, RFR, for a total of $25 million and is being leased to Infineon for a period of 18 years. (PRNewsFoto/W. P. Carey Inc.)

Strong credit tenant: Infineon, one of the world's largest semiconductor companies, is listed on the Frankfurt stock exchange and has a market capitalization of approximately $11.6 billion (€9.2 billion). It is also part of the DAX 30, Germany's blue chip index and has been part of the Dow Jones Sustainability Index since 2010. Infineon has a strong balance sheet and reported revenues and net profit for the fiscal year ending September 30, 2013 of $5.2 billion (€3.8 billion) and $368 million (€272 million), respectively.
Established location in stable country: Germany is Europe's largest economy, rated AAA/Stable by all major ratings agencies. Infineon has been operating at the Warstein location for more than 65 years.
Mission-critical asset: The modern office building was built specifically for Infineon on its existing R&D and production campus. Infineon also recently constructed an additional semiconductor production plant on the campus. The facility serves as one of Infineon's two global competence centers, making the location vital to the company's long-term strategy.
Modern facility: Completed in December 2012, the facility is DGNB Gold certified with "Energy A" Rating.
Lease term: Approximately 17 years.

Management Commentary

Arvi Luoma, Director of W. P. Carey, commented: "As one of the world's largest semiconductor companies, Infineon is a market leader and a solid addition to CPA^®:18 – Global's tenant portfolio. The recently completed facility is a mission-critical asset for Infineon and demonstrates its long-term strategic commitment to the region. The purchase from RFR Group also highlights our ability to structure transactions worldwide with institutional owners and developers to provide liquidity in support of their global portfolio strategies."

Michael Fuchs, Principal of RFR Group, noted: "Given their focus on long-term leased quality single-tenant assets as well as their global investment expertise, W. P. Carey's CPA^®:18 – Global was the ideal buyer for this asset. The transaction enabled us to efficiently carry out our strategic portfolio initiatives."

W. P. Carey Inc.
Please visit www.wpcarey.mediaroom.com for more information about W. P. Carey, to access our image and video libraries and to follow us on social media.

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Luoma 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; 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.

Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995
[email protected]

Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
[email protected]

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SOURCE W. P. Carey Inc.