Carey puts plant builder in control.

Investment firm W. R Carey & Co. LLC will finance the construction of three research and development facilities in Woodlands, Texas for one of the world's largest privately held chemical companies.

Construction on the facilities, which will total 176,000 square feet, is expected to begin later this month and completed in the fall of 2005.

Under the terms of the transaction, the tenant will lease the facilities under a 17-year triple net lease and has the option of maintaining operational control of the facilities for an additional 20 years once the initial lease term expires.

The build-to-suit financing was completed on behalf of Corporate Properties Associates 16--Global (CPA[R]: 16--Global), an affiliated income generating real estate investment trust (REIT).

This transaction represents the W. P. Carey Group's growing investment activity in Texas where the Group now owns more than 8.1 million square feet leased to companies.

Gordon F. DuGan, President of W. P. Carey & Co. LLC, said, "In today's competitive marketplace companies with state-of-the-art facilities are synonymous with success. This transaction represents an excellent example of how W. P. Carey can provide construction financing to companies, while enabling them to maintain complete operational control."