The financing will deliver 100% of the funds needed for the development of a 35,000 square meter (377,500 square foot) warehouse facility located in Tarnobrzeg, Poland. The warehouse is being developed by Panattoni Europe; when completed it will be long-term, triple-net leased to a Polish subsidiary of NSG Group. The facility is located adjacent to NSG Group's EUR 80 million investment in a new glass processing plant, which is currently under construction.
NSG Group, one of the three largest glass companies in the world, has been operating in Poland since 1993. In the Automotive sector, its main focus is the production of glazing for cars and trucks. The new glass processing plant will be the second production site for the company's automotive operations in Poland and is expected to more than double the size of the company's production volume in Poland.
Jeffrey Lefleur, Managing Director of W. P. Carey, said: "In the current global financing markets, particularly in emerging markets, the ability of corporations and developers to obtain construction financing remains challenging. Our ability to fund 100% of the capital needed to complete the development of new facilities highlights how we can provide alternative financing solutions for developers and their corporate clients. Having worked successfully with Panattoni on past projects in the U.S. and Europe, we are pleased to be working with them again on this transaction."
Robert Dobrzycki, Managing Partner of Panattoni Europe, commented: "We chose to work with W. P. Carey again because we knew we had a reliable funding source that would allow us to focus on the needs and timing of the project, and avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part during the construction period."
Mark Lyons, Chief Financial Officer of NSG Group, said: "The completion of this warehouse is critical to the success of our overall investment in the new Polish plant. We are confident in our selection of Panattoni to deliver the project to us in a timely manner, as well as of W. P. Carey to reliably fund construction and remain the long-term landlord of this strategic operating asset."
W. P. Carey & Co. LLC
W. P. Carey & Co. LLC (NYSE: WPC) is an investment management company that oversees a global investment portfolio of $12 billion. W. P. Carey provides companies worldwide with long term sale leaseback and build to suit financing and engages in other types of real estate-related investment. 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 unlock capital tied up in real estate assets. The W. P. Carey Group's investments are highly diversified, comprising contractual agreements with approximately 288 long term corporate tenants spanning 28 industries and 18 countries. www.wpcarey.com
Panattoni Europe provides European business with property solutions for their logistical, retail and office requirements by designing facilities specifically geared to individual needs. Operating in Poland and the Czech Republic since 2005, the company has developed 36 projects covering an area of 1.6 million square meters. Panattoni Europe's customer base includes such global brands as: Avon, Bertelsmann, CAT Logistics, CEVA, Coca-Cola, Flextronics, Coty Cosmetics, Dachser, DSV, Flextronics, Gefco, H&M, Intermarche, Leroy Merlin, Raben, ND Logistics, Orsay, Sauer Danfoss, Schenker, and Wincanton. http://www.panattoni.pl
Nippon Sheet Glass Co., Ltd. (NSG Group)
Tokyo-based NSG Group was founded in 1918. Following its acquisition of Pilkington in 2006, it has grown to become one of the world's leading manufacturers of glass and glazing systems. The Group has total sales of approximately ¥600 billion (EUR 5.6 billion), with around 29,000 people working across a global manufacturing platform that spans 29 countries.
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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