NEW YORK, April 3, 2014 /PRNewswire/ — W. P. Carey Inc. (NYSE: WPC), a global net-lease 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 new Class-A office building located at 2700 Frye Road in Chandler, Arizona. The facility is leased to QBE Holdings (QBE) for 10 years and serves as its West Coast regional headquarters. The total acquisition price was approximately $43 million.

Key Facts

• Credit tenant: QBE is the holding company for the North American subsidiaries of QBE Insurance Group Limited, a public, Australia-based global insurer. QBE is one of the 25 largest property/casualty insurance groups in the U.S. and is rated A by A.M. Best, a full-service credit rating organization dedicated to serving the insurance industry.
• Critical facility: QBE currently operates the facility as its West Coast regional headquarters into which it has consolidated several functions, with Lender Placed Insurance comprising the majority of functions. Also included are Mortgage Service Operations, Claims, Customer Service, Customer Care and Loss Draft functions.
• Well located Class-A office building: The three-story, 183,000 square foot Class-A office building is located in one of the best performing Phoenix submarkets. The facility includes covered parking for over one thousand vehicles, a large cafeteria, reflective windows and significant IT infrastructure.

Management Commentary

W. P. Carey Managing Director and Co-Head of Global Investments, Gino Sabatini: “This acquisition represented an opportunity to secure a well-located new Class-A office facility leased to a credit tenant on a site that also offers the possibility for additional development. Located in the Price Road Corridor, one of the most desirable areas of the Phoenix submarket, the investment provides attractive current cash flow.”

Commenting on the market, Mr. Sabatini added, “The Price Road Corridor is Phoenix’s strongest submarket, with an 8.9% Class-A office vacancy. The submarket—referred to as the ‘Silicon Desert’—is filled with companies that specialize in research, technology, financial services and high tech manufacturing. High tech, professional and other ‘knowledge’ workers account for over 60% of Chandler’s workforce.”

W. P. Carey Inc.
W. P. Carey Inc. is a leading global net-lease REIT that provides long-term sale-leaseback and build-to-suit financing solutions for companies worldwide. It also acts as the manager to a series of non-traded REITs. The Company’s owned and managed diversified global investment portfolio had a combined enterprise value of approximately $15 billion at December 31, 2013. Its 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. Furthermore, its portfolio of long-term leases with creditworthy tenants has an established history of generating stable cash flows, enabling it to deliver consistent and rising dividend income to investors for over four decades.
www.wpcarey.com

This press release contains forward-looking statements within the meaning of the Federal securities laws. The statements of Mr. Sabatini 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.

Company contact:
Kristina McMenamin
W. P. Carey Inc.
212-492-8995
kmcmenamin@wpcarey.com

Press contact:
Guy Lawrence
Ross & Lawrence
212-308-3333
gblawrence@rosslawpr.com

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SOURCE W. P. Carey Inc.