W. P. Carey Inc. Closes GBP 230.5 Million Pound Acquisition of 73-Property Pendragon Auto Dealership Portfolio

-- Triple-net lease with annual rent escalation and a 15-year weighted average term

LONDON, Jan. 28, 2015 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC), a real estate investment trust (REIT) specializing in corporate sale-leaseback financing, build-to-suit construction financing and the acquisition of single-tenant net lease properties, announced today that it has acquired a portfolio of 73 automotive retail facilities located throughout the UK, net leased to Pendragon plc for a gross purchase price, including fees, of £230.5 million (€308 million).

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Key Facts

• Market-leading company: Pendragon is the largest automotive retailer in the UK with 225 franchise locations spread across the country. The group sells a range of new and used vehicles through its retail outlets, including light motor vehicles, luxury vehicles, commercial vans and trucks, and provides after sales services. Pendragon's portfolio of 26 brands includes the majority of the UK's 20 bestselling car models, as well as a diverse range of automotive brands like Kia, Ford, Range Rover, BMW, Mercedes, Aston Martin and Ferrari.
• Strategically important, geographically diverse portfolio: The 73-property, approximately 1.6 million square foot portfolio represents almost one-third of Pendragon's UK dealership footprint and is widely spread across the UK in key locations, providing a nationwide offering of franchisees.
• Long-term triple-net leases with built-in rental growth: The triple-net lease portfolio has a weighted average lease term of 15 years and includes annual inflation-based rent escalation.

Management Commentary

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

"We are delighted to have completed this transaction—our largest in the UK to date—with a landmark tenant in an exciting growing sector. Given the long lease terms and the diversity of the properties acquired, we believe the Pendragon auto dealership portfolio is a strong addition to the W. P. Carey Inc. portfolio."

Trevor Finn, Chief Executive, Pendragon, added:

"It is reassuring to have, in W. P. Carey, a long-term investor for a portfolio of our dealerships in the UK and we look forward to working together with them."

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 W. P. Carey'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 W. P. Carey, reference is made to its filings with the Securities and Exchange Commission.

W. P. Carey Inc. contacts:

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

US
Media Contact:
Guy Lawrence
[phone]
[e-mail]

Company Contact:
Kristina McMenamin
[phone]
[e-mail]

Institutional Investors:
Peter Sands
W. P. Carey Inc.
[phone]
[e-mail]