Nord Anglia Education Announces Sale and Leaseback Transactions for $167.0 Million

HONG KONG, April 4, 2016 /PRNewswire/ -- Nord Anglia Education, Inc. NORD, the world's leading premium schools organization, is pleased to announce that it has entered into agreements with W. P. Carey Inc. WPC for the sale and leaseback of properties it owns at Windermere Preparatory School in Orlando, Florida, North Broward Preparatory School in Coconut Creek, Florida and The Village School in Houston, Texas. The properties will be sold to W. P. Carey Inc. for an aggregate purchase price of $167.0 million and leased back to the schools for 25 years, with the option to extend the term for four additional periods of five years each.

W. P. Carey Inc. is a leading global net lease real estate investment trust specializing in corporate sale-leaseback and build-to-suit solutions and the acquisition of single-tenant net lease properties worldwide. Subject to certain conditions, W. P. Carey Inc. has committed to invest up to an additional $128 million in the properties to expand both day and boarding capacity over the next four years. Approximately $12-13 million of this commitment will be utilized in fiscal 2016 for expansion currently under construction at North Broward Preparatory School. This expansion is expected to add approximately 400 seats of capacity to North Broward Preparatory School in September 2016 and reduce Nord Anglia Education's capital expenditure in fiscal 2016 by the same $12-$13 million amount.

"Windermere, North Broward and Village are excellent schools with outstanding facilities. We are delighted to be partnering with W. P. Carey Inc., a leading global real estate investment trust, who share our commitment to providing a world class teaching and learning environment for students.  We are looking forward to working together to enhance all three campuses over the coming years.  The sale and leaseback of these schools is in line with our asset light model and will provide additional capital to support the continued execution of our long term growth strategy," said Andrew Fitzmaurice, Chief Executive Officer.

The Windermere Preparatory School transaction completed on April 1, 2016 and the North Broward Preparatory School and The Village School transactions are expected to complete by May 31, 2016.  The net proceeds from the sale and leaseback plus expansion capex to be funded by W. P. Carey Inc. in fiscal 2016 is expected to be approximately $169.0 million.  The completion of the North Broward Preparatory School and The Village School sale-leaseback transactions and the funding of expansion capex by W. P. Carey Inc. are subject to the satisfaction of various conditions and Nord Anglia Education can make no assurance that these transactions will occur.

The initial annual rent payable for the three properties will be approximately $12.0 million, the equivalent of a 7.20% yield, and additional annual property taxes are expected to be approximately $4.0 million in the first year.  Rent will increase annually in line with the consumer price index.  The financial impact in fiscal 2016 will depend on the exact timing of the completion of each transaction.  Nord Anglia Education will provide additional details and update its fiscal 2016 outlook when it reports second quarter fiscal 2016 results on April 26, 2016.

Forward-Looking Statements

This press release includes statements that express our current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forward looking statements".  These forward looking statements can generally be identified by the use of forward-looking terminology, including the terms "believe," "expect," "may," "will," "should," "seek," "project," "approximately," "intend," "plan," "estimate" or "anticipate," or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this press release and include statements regarding our intentions, beliefs or current expectations concerning among other things, our sale leaseback transactions, capital expenditures, rent and property taxes, acquisitions, greenfield developments, same-school expansion and strategies.

By their nature, forward-looking statements relate to events that involve risks and uncertainties or that depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those under "Risk Factors" in our most recent annual report on Form 20-F with the SEC.

Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and that our actual results may differ materially from those made in or suggested by the forward-looking statements contained in this press release. Any forward-looking statement that we make in this press release speaks only as of the date of such statement, and we undertake no obligation to update any forward-looking statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.

About Nord Anglia Education, Inc.

Nord Anglia Education NORD is the world's leading premium schools organization. Our 42 international schools are located in China, Europe, the Middle East, Southeast Asia and North America. Together, they educate more than 34,750 students from kindergarten through to the end of secondary education. We are driven by one unifying philosophy – we are ambitious of our students, our people and our family of schools. Our schools deliver a high quality education through a personalized approach enhanced with unique global opportunities to enable every student to succeed. We primarily operate in geographic markets with high foreign direct investment, large expatriate populations and rising disposable income. We believe that these factors contribute to high demand for premium schools and strong growth in our business. Nord Anglia Education is headquartered in Hong Kong SAR, China. Our website is www.nordangliaeducation.com.

For further information, please contact:

Investors:
Vanessa Cardonnel
Corporate Finance and Investor Relations Director – Nord Anglia Education
Tel: +852 3951 1130
Email: Vanessa.Cardonnel@nordanglia.com

John Rouleau
Managing Director, Investor Relations – ICR
Tel: +1-203-682-8342
Email: John.Rouleau@icrinc.com

Media:
Sarah Doyle
Head of Brand – Nord Anglia Education
Tel: +852 3951 1144
Email: Sarah.Doyle@nordanglia.com

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SOURCE Nord Anglia Education, Inc.