W. P. Carey Announces Industrial Property Investments Totaling $119 Million

Mission-critical Properties on Long-term Leases

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Dec 20, 2018, 07:30 ET

NEW YORK, Dec. 20, 2018 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a leading net lease REIT specializing in corporate sale-leasebacks, build-to-suits and the acquisition of single-tenant net lease properties, today announced investments totaling approximately $119 million. The investments comprise mission-critical properties triple-net leased to industry-leading tenants with a weighted average lease term of approximately 20 years.

The transactions include:

Kilgore, TX distribution facility leased to Orgill

$41 million acquisition of a 550,000-square-foot distribution facility leased to Orgill, the world's largest independent hardware distributor, in Kilgore, TX, which serves as its distribution center for Texas, Oklahoma, Louisiana and southern Arkansas. W. P. Carey has also agreed to provide up to an additional $14 million for a 329,000-square-foot expansion to the existing facility, with completion expected mid-2019. The facility is triple-net leased for a period of 25 years, which will reset upon completion of the expansion.

$33 million sale-leaseback of a six-property industrial portfolio with the largest independent waste company in Illinois and Wisconsin. The transaction includes five transfer stations / material recovery facilities and a corporate headquarters located in the greater Chicago area. The portfolio is under a master lease on a triple-net basis for a period of 25 years with annual CPI-based rent escalations.

$31 million investment in distribution, warehouse and global headquarters facilities leased to Brake Parts Inc., a multinational manufacturer and distributor of aftermarket automotive products. The properties are located in the greater Chicago area and include Brake Parts' largest U.S. distribution facility. They are triple-net leased with a remaining lease term of 11 years and fixed annual rent escalations.

Gino Sabatini, Head of Investments, W. P. Carey, said: "Today's announcement illustrates our proven ability to structure and close a diverse set of transactions that meet the critical year-end timing and closing requirements of our tenants and their sponsors. In today's competitive environment, W. P. Carey's access to capital and diversified investment approach enables us to invest in a range of property types, tenant industries and geographies."

W. P. Carey Inc.
Celebrating its 45^th anniversary, W. P. Carey ranks among the largest diversified net lease REITs with an enterprise value of approximately $17 billion and a portfolio of operationally-critical commercial real estate that includes 1,186 net lease properties covering approximately 133 million square feet. For over four decades the company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.
www.wpcarey.com

This press release contains forward-looking statements within the meaning of U.S. Federal securities laws. The comments of Mr. Sabatini are examples of forward looking statements. 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 commercial 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 W. P. Carey, reference is made to its filings with the U.S. Securities and Exchange Commission.

Media Contacts:
Guy Lawrence
Ross & Lawrence
+1 212-308-3333
[email protected]

Anna McGrath
W. P. Carey Inc.
+1 212-492-1166
[email protected]

Institutional Investors:
Peter Sands
+1 212-492-1110
[email protected]

SOURCE W. P. Carey Inc.