W. P. Carey Acquires Bob's Discount Furniture Distribution Facility in $22 Million Sale-Leaseback

Furniture World Magazine

Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it acquired and leased back a warehouse distribution facility from Bob's Discount Furniture, LLC, for $10.3 million. In addition, W. P. Carey announced that it would provide an additional $12.3 million to fund the expansion of this facility, bringing the total cost of the transaction to approximately $22.6 million. Funds advised by Apax Partners invested in Bob's Discount Furniture in January 2005. The facility, located in Norwich, CT, was acquired on behalf of Corporate Property Associates 16 - Global Incorporated (CPA®:16 - Global), a member of the $7.4 billion W. P. Carey Group of income generating real estate funds. Bob's Discount Furniture will lease the facility for an initial period of 20 years. Edward V. LaPuma, a Managing Director at W. P. Carey & Co. LLC, said, "This transaction highlights how the sale-leaseback can be utilized to convert fixed assets into working capital. Bob's Discount Furniture will be able to use the proceeds of this transaction to fund the expansion of the facility and support the company's growth initiative." Bob Kaufman, President of Bob's Discount Furniture, said, "We look forward to a long-term partnership with W. P. Carey and appreciate the flexibility this transaction has given us to reinvest our capital in our core business."