W. P. Carey Announces $15 Million Sale-Leaseback of Toyota Auto Dealership in Texas with RML Automotive

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Aug 28, 2013, 07:00 ET

NEW YORK, Aug. 28, 2013 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a leading provider of corporate sale-leaseback financing, announced today that CPA^®:17 – Global, one of its publicly held non-traded REIT affiliates, has acquired a Toyota automotive dealership facility in Lewisville, Texas for approximately $15 million. The facility will be leased back to RML Automotive ("RML") on a triple-net basis for a term of 16 years.

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The sale-leaseback provided financing for RML's acquisition of the dealership business. The transaction follows an initial automotive dealership sale-leaseback financing completed with RML in September 2012 as part of W. P. Carey's strategic partnership with CapRocq Automotive, LLC ("CapRocq").

W. P. Carey Managing Director and Co-Head of Global Investments Jason Fox commented, "We view this follow-on transaction with RML as another opportunity to achieve strong risk-adjusted returns from an established dealer with a history of steady cash flows that supports our strategy of securing stable income producing assets on behalf of CPA^®:17 – Global's investors. We are delighted to be building on our relationship with RML through the completion of this acquisition."

RML Chief Executive Officer Franklin McLarty added, "Our relationship with W. P. Carey is a solid source of long-term financing as we continue to expand. They continue to be a strong partner for RML and appreciate the critical role real estate assets, like the Lewisville Toyota facility, play in the operation of successful automotive dealerships."

CapRocq President and Co-Founder Beau Blair said, "We are pleased to have played a substantive role alongside W. P. Carey in sourcing and executing this transaction. As a highly specialized real estate asset manager, we are glad that our strategic partnership with W. P. Carey continues to grow, with more than $80 million of auto dealership assets now under management."

W. P. Carey Inc.
Celebrating its 40th anniversary, W. P. Carey Inc. is a publicly traded REIT (NYSE: WPC) that provides long-term sale-leaseback and build-to-suit financing for companies worldwide and owns and manages an investment portfolio totaling approximately $15.4 billion. The largest owner/manager of net lease assets, WPC's corporate finance-focused credit and real estate underwriting process is a constant that has been successfully leveraged across a wide variety of industries and property types. Its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows that have enabled WPC to deliver consistent and rising dividend income to investors for nearly four decades. www.wpcarey.com

RML Automotive
RML Automotive ("RML"), headquartered in Little Rock, Arkansas, consists of 43 automotive franchises and three Harley-Davidson motorcycle dealerships across the South Central, Southeast, and Midwest regions of the country. RML was ranked 19th on the Automotive News 2012 annual list of "Top 125 Dealerships in the U.S." With operations in 8 states spanning 25 sites, RML is broadly diversified across multiple brands and markets.

CapRocq Automotive, LLC
CapRocq Automotive, LLC ("CapRocq") is an $80 million asset management company headquartered in Little Rock, Arkansas that focuses on origination, underwriting and oversight of commercial real property used by operators of multi-site, multi-franchised automotive dealerships located in attractive markets throughout the U.S. CapRocq has a strategic partnership with W. P. Carey Inc.'s publicly held non-traded REIT affiliate CPA^®: 17 – Global. www.wpcarey.com/auto

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Fox are examples of forward looking statements. A number of factors could cause the CPA^®:17 – Global'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 CPA^®:17 – Global, reference is made to CPA^®:17 – Global's filings with the Securities and Exchange Commission.