SOURCE: W. P. Carey & Co. LLC

March 24, 2008 08:30 ET

W. P. Carey Group Announces $50 Million Purchase of Best Brands Manufacturing Facilities in California, Texas, Kansas and Minnesota

NEW YORK, NY--(Marketwire - March 24, 2008) - Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that CPA®:16 - Global, its publicly held non-traded REIT affiliate, has purchased four manufacturing facilities from Best Brands Corporation. The purchase price was approximately $50 million. The facilities, each of which contains a combination of manufacturing, warehousing and refrigerated warehousing, total approximately 665,000 square feet and are located in Colton, California; Dallas Texas; Bonner Springs, Kansas and Eagan, Minnesota. The facilities will be leased back to Best Brands Corporation on a long-term basis.

Headquartered in Minnetonka, MN, Best Brands is a manufacturer and distributor of specialty bakery products, specializing in frozen laminated dough, frozen baked cakes, frozen muffins and bakery mixes, as well as other bakery products sold to in-store bakeries and institutional baking clients such as Wal-Mart, Sam's Club, Starbucks and Costco.

"Best Brands has focused on growth in our core product areas -- cakes, laminated dough, muffins and mixes," said Scott Humphrey, Best Brands CEO. "The sale-leaseback financing with W. P. Carey was ideal as it allowed us to access the value tied up in a number of our key real estate assets and redeploy that capital in our core business. The Carey team's professional approach and financial skills as well as their understanding of the food and refrigerated food industries enabled them to recognize the value and economics of our business and structure a financing that advances our longer term strategic initiatives."

"We were pleased to work with Best Brands on this transaction," said Gino Sabatini, Executive Director at W. P. Carey. "We view Best Brands as a strong industry player. In addition because the facilities acquired are critical to their operations, the acquisition is consistent with our core investment philosophy of investing in key assets of well managed operating companies. Given the current credit environment we are particularly pleased to be able to work with companies like Best Brands and their investors at a time when other sources of capital are limited."

W. P. Carey & Co. LLC

W. P. Carey & Co. LLC provides long-term sale-leaseback and build-to-suit financing for companies worldwide and manages a global investment portfolio worth more than $10 billion. Publicly traded on the New York Stock Exchange (WPC), W. P. Carey and its CPA® series of income-generating, non-traded REITs help companies and private equity firms release capital tied up in real estate assets. Now in our 35th year, the W. P. Carey Group's real estate holdings are highly diversified, comprised of more than 850 commercial and industrial assets spanning 24 industries and 14 countries. www.wpcarey.com

Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.

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.

Contact Information

  • COMPANY CONTACT:
    Kristina McMenamin
    W. P. Carey & Co. LLC
    212-492-8995
    Email Contact

    PRESS CONTACT:
    Guy Lawrence
    Ross & Lawrence
    212-308-3333
    Email Contact