W. P. Carey Provides Construction Financing in Poland
Sep 27, 2012
LONDON -- (Marketwire) -- 09/27/12 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that one of its publicly-held non-traded REIT affiliates, CPA®:17 - Global, will be providing build to suit financing which will fund the construction of an expanded logistics platform of the global contract logistics and supply chain management company syncreon Holdings Ltd ("syncreon"). W. P. Carey's financing will deliver 100% of the funds needed for the construction of an approximately 11,000 sq m (36,089 sq ft) light-industrial warehouse located in Zary, Poland.
Located close to the German border and the major centres of Berlin and Dresden, the Zary facility will be leased on a long-term, triple-net basis to the Polish subsidiary of syncreon. The new facility will be a key location to support syncreon's growth strategy.
Headquartered in Auburn Hills, Michigan, syncreon is a global contract logistics and supply chain management company that provides specialized transportation, inbound, outbound, reverse, and fulfillment logistics services.
Jeffrey Lefleur, Managing Director of W. P. Carey, said: "Economic uncertainty continues to constrain European credit markets; however, W. P. Carey as a long term investor has demonstrated that it can provide the financing companies need to construct and develop new facilities in both up and down market cycles."
Robert Dobrzycki, Managing Partner of Panattoni Europe, the developer on the project, commented: "This is our third transaction with W. P. Carey in Poland, and it confirms our belief that they bring tremendous value-add on projects where traditional construction financing is difficult to obtain. As we continue to develop facilities on behalf of clients in Europe and other parts of the world, our ability to streamline the financing process by partnering with long term investors like W. P. Carey will remain a significant factor for us when competing on future tenders."
Build to suit financing allows developers and companies to fund 100% of development costs for corporate facilities while simultaneously locking in permanent long term financing. In the current uncertain economic and interest rate environment, securing long term capital prior to construction enables developers and corporations to avoid the risk of uncertain financing terms upon completion.
W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment company that provides long term sale leaseback and build to suit financing for companies worldwide and manages a global investment portfolio of approximately $12.7 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of non-traded REITs help companies and private equity firms unlock capital tied up in real estate assets. The W. P. Carey Group's investments are highly diversified, with approximately 284 long term corporate tenants spanning 28 industries and 18 countries. http://www.wpcarey.com
Panattoni Europe provides European business with property solutions for their logistical, retail and office requirements by designing facilities specifically geared to individual needs. Operating in Poland and the Czech Republic since 2005, the company has developed 36 projects covering an area of 1.6 million square meters. Panattoni Europe's customer base includes such global brands as: Avon, Bertelsmann, CAT Logistics, CEVA, Coca-Cola, Flextronics, Coty Cosmetics, Dachser, DSV, Flextronics, Gefco, H&M, Intermarche, Leroy Merlin, Raben, ND Logistics, Orsay, Sauer Danfoss, Schenker, and Wincanton.http://www.panattoni.pl
syncreon is a global contract logistics and supply chain management company that uses its asset-light business model to provide specialized transportation, inbound, outbound, and fulfillment logistics services. These services are fully integrated into their customers' supply chain and final end-client delivery. syncreon is a global business based in Ireland with its operational HQ in Auburn Hills, MI. syncreon has activities in 25 countries, with approximately 82 facilities and approximately 12,000 employees. syncreon is owned by Irish businessmen Michael & Brian Enright and New York based private equity firm, GenNx360 Capital Partners.
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.
For W. P. Carey & Co. LLC:
Dan de Belder/Guy Scarborough
+44 207 861 3232
Ross & Lawrence
+ 1 212-308-3333
+ 1 212-492-8995
Source: W. P. Carey & Co. LLC