SOURCE: W. P. Carey & Co. LLC

May 05, 2005 09:20 ET

W. P. Carey & Co. Sells Three Facilities for $28.8 Million

Transaction Reflects Second Quarter GAAP Gain of $9.1 Million

NEW YORK, NY -- (MARKET WIRE) -- May 5, 2005 -- Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today the sale of three facilities for $28.8 million after fees and expenses. The facilities, located in Portsmouth, NH, Rochester, MN, and Dubuque, IA, were originally purchased in 1988 for $14.9 million. As a result of the sale, W. P. Carey realized a net gain of approximately 93% from its initial investment and will use the proceeds to pay down the Company's existing line of credit. The transaction represents a generally accepted accounting principles (GAAP) gain of approximately $9.1 million for the second quarter 2005.

Thomas E. Zacharias, W. P. Carey's Chief Operating Officer and Asset Management Director, said, "This transaction is an excellent example of our ongoing efforts to complete transactions that we believe will benefit W. P. Carey and its investors while strengthening our portfolio of net-leased assets. Most recently, during the first quarter 2005, we sold three vacant facilities and re-leased an additional two hundred thousand square feet of vacant space. We will continue to monitor our net-leased portfolio and complete similar transactions as appropriate."

Johnathan Perry, Second Vice President of W. P. Carey who worked on the transaction, commented, "These properties have been an excellent investment for us. We were glad we were able to provide the growth capital for the tenant company at the time they needed it in 1988, and then realize this upside for our investors 17 years later."

Corporate Property Associates 9 (CPA®:9), a wholly owned subsidiary of W. P. Carey & Co. LLC, acquired the facilities in 1988.


Founded in 1973, W. P. Carey & Co. is a leading global investment firm that has long served as the pre-eminent provider of sale-leaseback financing to corporations and private equity firms in the United States and Europe. It owns a portfolio of net-leased real estate assets and provides asset management services to the Corporate Property Associates (CPA®) series of income-generating real estate investment funds. The Company currently owns or manages more than 650 commercial and industrial properties worldwide, representing approximately 90 million square feet and valued at approximately $7 billion.

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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.

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