W. P. Carey Inc. Announces GBP20 Million Acquisition of Admiral Group's Primary Office in Newport

-- Purchase of Class A UK office facility provides liquidity to institutional real estate developer and investor

LONDON, Oct. 15, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a global net-lease REIT specializing in corporate sale-leaseback, build-to-suit financing and the acquisition of single-tenant net-lease properties, announced today that it has acquired the newly constructed office of Admiral Group plc (Admiral) in Newport, Wales for approximately £20 million (€25 million). The facility is let to Admiral Group. The seller was Scarborough Group International, the UK and international real estate investor and developer.

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Key Facts

• Strong credit tenant: Admiral is a FTSE100 company and one of the UK's largest car insurance providers with a growing international presence. For the financial year 2013, Admiral reported turnover, profit before tax and profit after tax of £2 billion (€2.5 billion), £370 million (€469 million) and £287 million (€364 million), respectively.
• Newly constructed, modern facility: The 80,664 square-foot, Class A office building was completed in May 2014 and houses more than 500 Admiral employees. The company has a strong presence in the area and has chosen the location as a key long-term operating site.
• Well-located real estate: Situated in a city center location in Newport, the facility forms part of a major redevelopment of the surrounding area, which has already attracted £230 million (€291 million) of private investments into the city.
• Long lease length: 20-year triple net-lease, commencing in June 2014 with a tenant break option at the end of the sixteenth year of the lease.
• Stable market economy: The UK is a strong developed economy with the growth outlook continuing to improve with GDP forecast to grow by 2.5% in 2014 and 2.4% in 2015.

Quotes

Jennifer Lucas, Executive Director of W. P. Carey, commented:

"The transaction with Scarborough Group is consistent with our investment strategy of acquiring critical assets leased on a long-term basis to strong credit tenants and demonstrates our ability to provide liquidity to developers and owners of attractive net-leased assets. Admiral is a well-capitalised business with a long-term commitment to the facility and we are delighted to add the company to our tenant portfolio. Given the UK's status as the second largest European economy with good growth forecasts, we are pleased to add another UK asset to our holdings."

Mark Jackson, Director of Scarborough Group International, said:

"We are pleased to complete this transaction with W. P. Carey. Their capital resources, experience in the European net-lease investment market and their strategy of acquiring long-term net-leased assets made them an ideal purchaser for this asset."

Huw Llewellyn, Head of Property and Facilities Management for Admiral Group, said:

"We are delighted to have secured this 20-year lease of our new office building in Newport and look forward to working with W. P. Carey as our landlord and long-term partner."

W. P. Carey Inc.

Please visit www.wpcarey.mediaroom.com for more information about W. P. Carey, to access our image and video libraries and to follow us on social media.

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Ms. Lucas are examples of forward-looking statements. 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.

W. P. Carey Inc. contacts:

Europe
Dan de Belder/Emma Kent/Kashara Taylor
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[e-mail]

US
Guy Lawrence
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Kristina McMenamin
[phone]
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