W. P. Carey Inc. Announces Proposed Merger with CPA®:16 - Global

W. P. Carey Inc. WPC announced today that its Board of Directors and the independent directors of the Board of Directors of its publicly-held, non-traded real estate investment trust (REIT) affiliate, Corporate Property Associates 16 – Global Incorporated ("CPA®:16 – Global"), have unanimously approved a definitive merger agreement pursuant to which CPA®:16 – Global will merge with W. P. Carey in a transaction valued at approximately $4.0 billion. The merger is subject to approval by stockholders of both W. P. Carey and CPA®:16 – Global. To view the multimedia assets associated with this release, please click http://www.prnewswire.com/news-releases/w-p-carey-inc-announces-proposed-merger-with-cpa16---global-216976091.html Following the merger, the combined company is expected to have an equity market capitalization of approximately $6.5 billion and a total enterprise value of approximately $10.1 billion. The combined portfolio will consist of more than 700 properties with 86 million square feet of corporate real estate leased to 231 companies around the world. W. P. Carey will continue to manage the Corporate Property Associates (CPA®) and Carey Watermark Investors (CWI) series of publicly-held, non-traded REITs. Subject to the terms and conditions of the merger agreement, CPA®:16 – Global stockholders will receive shares of W. P. Carey common stock for their shares of CPA®:16 – Global stock pursuant to an exchange ratio based upon a value of $11.25 per share of CPA®:16 – Global and the volume weighted average trading price ("VWAP") of W. P. Carey common stock for the five consecutive trading days ending on the third trading day preceding the closing of the transaction. The exchange ratio is subject to a 12% collar based on the VWAP of W. P. Carey common stock on July 22, 2013 and July 23, 2013, which results in an exchange ratio of not more than 0.1842 shares and not less than 0.1447 shares of W. P. Carey common stock for each share of CPA®:16 – Global. The merger agreement also provides CPA®:16 – Global with a 30-day go-shop provision. W. P. Carey believes that the benefits of the proposed merger include: Improves the quality of W. P. Carey's earnings through increased portfolio diversification and by continuing the shift in revenue mix towards stable real estate rental income Continues W. P. Carey's evolution from a hybrid LLC that derived the majority of its revenue from investment management fees into a leading global net lease REIT Substantially increases W. P. Carey's size, resulting in a pro forma equity market capitalization of approximately $6.5 billion and a total enterprise value of $10.1 billion Enhances W. P. Carey's position for future access to diverse, efficiently priced sources of capital Simplifies W. P. Carey's GAAP financial statements by consolidating joint ventures with CPA®:16 – Global as well as its existing ownership interest in CPA®:16 – Global Reinforces W. P. Carey's position as a premier investment manager in the non-traded REIT sector with the 15th successful liquidation of one of its CPA® programs Supports the continuation of W. P. Carey's long-standing tradition of stable dividend growth through anticipated accretion to AFFO per share, with an anticipated post-transaction minimum annualized dividend of $3.52 per share W. P. Carey President and CEO Trevor Bond commented, "We are pleased to announce a merger transaction that we believe is beneficial to both W. P. Carey and CPA®:16 – Global investors. In addition to providing liquidity to CPA®:16 – Global investors, it will significantly increase W. P. Carey's asset base, with a portfolio that will further enhance our already broad diversification by tenant, property type and geography. And given that we originated and manage CPA®:16 – Global's portfolio, we believe we are uniquely positioned to capitalize on its inherent opportunities. This transaction will reinforce our status as a leading global net-lease REIT and a successful manager of non-traded real estate programs, having provided solid total returns and liquidity to more than 100,000 investors in 15 programs over a period of 35 years. We have performed well for our investors – those in our public company as well as our managed programs – throughout a variety of market cycles and attribute that success to the disciplined investment approach instituted by our late founder, Wm. Polk Carey, when he opened the doors of W. P. Carey 40 years ago." BofA Merrill Lynch is acting as financial advisor to W. P. Carey and DLA Piper LLP (US) is acting as the legal advisor to W. P. Carey. Barclays is acting as financial advisor to CPA®:16 – Global, Clifford Chance LLP is acting as legal advisor to CPA®:16 – Global and Pepper Hamilton LLP is acting as legal advisor to the Special Committee of the Board of Directors of CPA®:16 – Global. A joint proxy statement/prospectus will be filed on Form S-4 with the Securities and Exchange Commission ("SEC"), which will describe the proposed merger. Completion of the transaction is subject to, among other things, review by the SEC, receipt of all third-party consents as well as the approval of the stockholders of both companies and satisfaction of customary closing conditions. The transaction is currently expected to close during the first quarter of 2014, although there can be no assurance that the transaction will close at such time, if at all. CONFERENCE CALL & WEBCAST Please call at least 10 minutes prior to call to register. Time: Friday, July 26, 2013 at 11:00 AM (ET) Call-in Number: 1-866-524-3160 (International) + 1-412-317-6760 Webcast: www.wpcarey.com/merger W. P. Carey Inc. Celebrating its 40th anniversary, W. P. Carey Inc. is a publicly traded REIT WPC that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling approximately $15.2 billion. The largest owner/manager of net lease assets, W. P. Carey'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. Its 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 Individuals interested in receiving future updates on W. P. Carey via e-mail can register at www.wpcarey.com/alerts.