W. P. Carey Inc. Closes $21 Million Sale-Leaseback of Pratt Industries Manufacturing Facility

NEW YORK, Nov. 14, 2014 /PRNewswire/ -- W. P. Carey Inc. WPC, a global net-lease REIT specializing in corporate sale-leaseback financing, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that it has completed a $21 million sale-leaseback acquisition of a 356,000 square-foot manufacturing facility in Lewisburg, Ohio.  The facility is located 30 miles from Dayton, Ohio and is leased to Pratt Industries, Inc. (Pratt) on a long-term basis.

Key Facts

• High-quality tenant: Founded nearly 25 years ago, Pratt has grown to be the fifth largest corrugated packaging company in the U.S., with approximately 4,400 employees across 70 facilities in over 20 states.  The company's product offerings include container board, recycled paper, displays and other packaging products.  Pratt has made a strong commitment to the environment and sustainability and operates as the only 100% recycled paper and packaging company in America.
• Critical asset: The facility is situated close to important customer locations and was recently custom-built to fulfill Pratt's corrugating and box manufacturing needs.  All paper used in the operation of the Lewisburg facility will be sourced from a new state-of-the-art paper plant being developed in Valparaiso, Indiana. 
• Newly built contemporary facility: The highly automated facility was custom designed to suit the company's specific needs. Pratt has invested approximately $35 million in equipment for the facility, which conforms to modern industrial facility standards, and is the company's newest and most efficient corrugating facility nationwide.

Management Commentary

W. P. Carey Executive Director, Kathleen Barthmaier, commented: "This sale-leaseback with Pratt is consistent with W. P. Carey's strategy of investing in long-term, single tenant assets that are critical to a tenant's business.  Given the long-term lease, the criticality of the asset and Pratt's additional capital investment in the equipment housed in the facility, we are pleased to add this asset to our portfolio."   

Pratt Industries Commentary

Division President of Pratt Properties, John Simcoe, added: "We are pleased to complete this transaction with W. P. Carey, in concert with Jones Lang LaSalle.  This sale-leaseback transaction supports our current growth strategy and is enabling us to unlock capital from a core asset that we can redeploy in our operations. W. P. Carey's ability to provide this capital, combined with their long-term investment philosophy, made them the ideal financial partner for us on this transaction."   

Pratt was represented in the sale-leaseback by Jones Lang LaSalle.

W. P. Carey Inc.
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This press release contains forward-looking statements within the meaning of the Federal securities laws.  The statements of Ms. Barthmaier are examples of forward looking statements. A number of factors could cause W. P. Carey'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 W. P. Carey, reference is made to its filings with the Securities and Exchange Commission.

Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995
kmcmenamin@wpcarey.com

Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com     

Institutional Investors:
Peter Sands
W. P. Carey Inc.
212-492-1110
institutionalir@wpcarey.com

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SOURCE W. P. Carey Inc.