W. P. Carey Inc. Awarded EUR 300 Million ($372 Million) Sale-Leaseback by State of Andalusia

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Dec 04, 2014, 07:07 ET

NEW YORK, Dec. 4, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust and a leading global owner and manager of commercial properties, primarily net leased to companies on a long-term basis, announced today that it has been awarded the opportunity to purchase a portfolio of office buildings from the Spanish State of Andalusia. The properties will be leased back to the State of Andalusia for a 20-year term. The consummation of the proposed acquisition is subject to the satisfaction of various closing conditions, and W. P. Carey can make no assurance that it will acquire any of the properties or, if it does, what the ultimate terms or timing of any such acquisition will be.

Key Facts

Diversified portfolio of real estate assets: The portfolio includes 70 office buildings totaling approximately 2.8 million square feet located in the capital and major cities throughout the Spanish State of Andalusia. The offices are home to a diverse range of state government departments and agencies.
Critical facilities: The properties include offices for the State Employment Agency, Departments of Agriculture, Health, Education, Taxation, Trade & Tourism, Social Work and Environmental Control. In addition, a number of the facilities are significant centers of government administration as well as cultural and social services.
20-year lease with government tenant: The State of Andalusia is rated BBB- by Standard & Poor's and Ba+ by Moody's.

Management Commentary

Jeffrey Lefleur, Managing Director of W. P. Carey Inc., commented:

"The transaction with the State of Andalusia represents the opportunity to secure a long-term-leased portfolio of diverse assets at an attractive yield. Our experience in the European market, as well as our ability to close and fund the acquisition on a timely basis, were critical factors in our selection as the purchaser by the government of the State of Andalusia. We look forward to closing the transaction and adding these assets to the W. P. Carey Inc. portfolio."

W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Lefleur, the ratings of the State of Andalusia and the timing of the proposed acquisition 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. Discussions of some of these important factors are contained in W. P. Carey's filings with the SEC and are available at the SEC's website at http://www.sec.gov, including Item 1A. Risk Factors in W. P. Carey's Annual Report on Form 10-K for the year ended December 31, 2013, and in subsequent reports filed by W. P. Carey with the SEC. 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. In light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking statements contained in this press release will in fact transpire. Moreover, due to the fact that W. P. Carey operates in a very competitive and rapidly changing environment, new risk factors are likely to emerge from time to time. Given these risks and uncertainties, existing and potential investors are cautioned not to place undue reliance on forward-looking statements. W. P. Carey undertakes no obligation to update or revise the information in this press release, whether as a result of new information, further events or circumstances, or otherwise.

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SOURCE W. P. Carey Inc.