W. P. Carey Closes Two Sale-Leaseback Transactions Totaling $26 Million
Mar 27, 2013
NEW YORK, NY -- (Marketwire) -- 03/27/13 -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust ("REIT"), announced today that CPA®:17 - Global, one of its publicly held non-traded REIT affiliates, has acquired a 272,000 square foot manufacturing and office facility in Portage, Wisconsin. The property will be leased to Penda Corporation under a 20 year net lease. The purchase price was approximately $10 million.
Headquartered in Portage, Penda Corporation is a leading designer, manufacturer and marketer of heavy gauge thermoformed products. Over Penda's 37-year history, the company is best known for being a market leading supplier of drop-in bedliners to General Motors, Ford, Chrysler, Nissan, and Toyota. Penda also continues to bring its advanced thermoforming expertise to additional markets including recreational vehicles, lawn & garden, agriculture and water management. Penda is owned by Resilience Capital Partners, a Cleveland, Ohio based private equity firm, and Littlejohn & Company, LLC, a private equity firm based in Greenwich, Connecticut.
In addition, W. P. Carey announced that CPA®:17 - Global has acquired a 62,000 square foot House of Blues entertainment venue and restaurant facility in Dallas, Texas. The property is leased to a subsidiary of Live Nation Entertainment, Inc., which also guarantees the lease. The purchase price was approximately $16 million.
The House of Blues Dallas is one of thirteen House of Blues facilities owned and operated by Live Nation Entertainment, Inc. The House of Blues are indoor venues that offer customers an integrated live music and dining experience. House of Blues Dallas opened in 2007 in the Victory Park development, immediately northwest of downtown Dallas. The historic structure dates back to the 1920's, when it housed a White Swan Coffee processing plant. The largest performance space in the building has capacity for 1,600 people.
Commenting on the Penda transaction, W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini, noted, "The Penda financing is a classic example of how W. P. Carey enables portfolio companies of private equity firms to pay down debt, strengthen their balance sheets and access the capital value of their real estate assets to fund operations and growth strategies. Penda's experienced management team, strong equity sponsorship, established relationships with customers and distribution channels as well as its competitive market position were all factors that made this an investment consistent with our established investment parameters and objective of generating cash flow for our investors."
Commenting on the acquisition of the building containing The House of Blues, W. P. Carey Executive Director Chad Edmonson noted, "Given Live Nation Entertainment's prominence in the live music industry in combination with the positive market trend of the Victory Park development, the asset offers attractive risk adjusted returns for our investors with the support of a strong parent company. We are looking forward to partnering with Live Nation and House of Blues going forward."
W. P. Carey Inc.
Celebrating its 40th anniversary, W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling approximately $14.1 billion. The largest owner/manager of net lease assets, WPC's 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. Our portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows that have enabled the Company to deliver consistent and rising dividend income to investors for nearly four decades. www.wpcarey.com
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the Company'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. For further information on factors that could impact the Company, reference is made to the Company's filings with the Securities and Exchange Commission.
W. P. Carey Inc.
Ross & Lawrence
Source: W. P. Carey Inc.