W. P. Carey Announces $17 Million Acquisition on Behalf of CPA:18 - Global

Sale-leaseback Transaction Supports Private Equity Investment in Portfolio Company

May 27, 2014, 07:30 ET from W. P. Carey Inc.

NEW YORK, May 27, 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 the acquisition of a headquarters and manufacturing facility and two manufacturing facilities on behalf of CPA®:18 Global, one of its managed REITs. The three facilities, which total 362,000 square feet, are located in Georgia, Arizona, and Texas, respectively, and are leased to Janus International Group LLC ("Janus") for a period of 20 years. The total acquisition price was approximately $17 million.       

Key Facts

  • Market-leading tenant: Janus is the leading manufacturer of steel roll up sheet doors and storage facility components for self-storage, commercial and industrial markets. Founded in 2002, Janus is headquartered in Temple, Georgia and has manufacturing locations in Arizona and Texas and distribution locations in California, Florida, Mexico, and South Africa. 
  • Critical facilities: The Temple, Georgia asset—built for Janus in 2008—is the largest of the company's manufacturing facilities and houses its corporate headquarters and associated functions. Altogether the three facilities house the entirety of Janus's manufacturing capacity and provide the company with manufacturing bases across the United States, allowing for lower freight cost and faster, more efficient delivery.
  • Private equity sponsorship: Janus is a portfolio company of private equity firm Saw Mill Capital, an operations-oriented private equity firm focused on acquiring businesses that can be meaningfully grown organically and through acquisitions. Established in 1997, Saw Mill Capital partners works with senior management teams to make investments in businesses headquartered in North America.

Management Commentary W. P. Carey Executive Director, Kathleen Barthmaier: "In the Janus transaction we combined our real estate and industry experience with our financial structuring expertise to address the specific needs of the company and its owners.  Our broad capabilities allow us to work with a range of owners and tenants in an array of sectors, including private equity firms and their portfolio companies. We tailor asset-based financings that support management's business plans and enhance the companies' financial platforms, providing a base for future growth and expansion.

"Given Janus's leading position in the roll up door market, the criticality of the assets themselves and the sponsorship support of an established private equity firm, the investment had the characteristics we look for when sourcing investments for our portfolios."

Scott Rivard, a Principal at Saw Mill Capital, said, "Janus is the clear leader in serving the growing self-storage and commercial door markets. Working together with the management team at Janus we are looking to build on the company's proven high quality products and unmatched installation services to expand its market position in the U.S. and internationally.  The sale-leaseback financing with W. P. Carey positions us well for carrying out our strategic initiatives."

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. At March 31, 2014, the Company had an enterprise value of approximately $9.5 billion. In addition to its owned portfolio of diversified global real estate, W. P. Carey manages a series of non-traded REITs with assets under management of approximately $7.3 billion. 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. www.wpcarey.com

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Ms. Barthmaier 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 filings with the Securities and Exchange Commission.

Company contact: Kristina McMenamin W. P. Carey Inc. 212-492-8995 kmcmenamin@wpcarey.com

Press contact: Guy Lawrence Ross & Lawrence 212-308-3333 gblawrence@rosslawpr.com

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SOURCE W. P. Carey Inc.