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W.P. Carey closes $50m+ deals.

W. P. Carey & Co. LLC and its nontraded REIT affiliates completed three additional investments prior to year-end 2008, underscoring its continuing ability to act as an alternative source of capital during all market conditions.

CPA: 17--Global and CPA: 16--Global acquired four manufacturing facilities leased to Frontier Spinning Mills, Inc. for approximately $39 million. The facilities are located in Mayodan and Sanford, North Carolina and include Frontier's headquarters.

One of the world's largest producers of spun yams, Frontier produces an average of approximately 650 million pounds of yarn annually. Combined, the purchased facilities produce approximately eight million pounds of yarn per week.

Blue chip companies Fruit of the Loom, Central Textiles, Gildan and Renfro use Frontier's yarn in many different end products including sportswear, undergarments, socks, sweaters, fleece, denim and home furnishings.

Consistent with its philosophy of assisting existing tenants with expansion financing as well as de novo acquisitions, W. P. Carey completed two follow-on transactions on behalf of CPA:16--Global in December.

The first was the funding of a $6.8 million expansion of Nordic Cold Storage LLC's Rockmart, Georgia facility, which is expected to be completed this February. The Rockmart facility is one of three Atlanta-area cold storage facilities CPA: 16--Global acquired from Nordic in 2007.

The second follow-on transaction totaled $8 million and included the funding of an expansion to LifePort, Inc.'s Georgetown, Texas facility--also owned by CPA:16--Global--along with the purchase and funding of a new property in Woodland, Washington.

LifePort designs, manufactures and certifies a wide range of products for most sectors of the aviation industry, including emergency medical patient transport devices and interiors for executive aircrafts.

"Because W. P. Carey builds long-term relationships with its tenants and develops an in-depth knowledge of their businesses and capital structures, when expansions or other financing requirements arise, we go back to them," said Nordic CEO, Don J. Schoenl.

Said Gino Sabatini, executive director at W. P. Carey, "The Nordic and LifePort expansions serve as prime examples of W. P. Carey's long-term outlook and ability to meet the ongoing financing needs of existing tenants. The Frontier property is ... consistent with our philosophy of acquiring assets that are critical to a tenant's core operations."
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Title Annotation:FINANCE
Publication:Real Estate Weekly
Date:Jan 21, 2009
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