Re: "inteL, always able to pull some rabbit out of a hat, will probably sell its headquarters building and some other physical grounds at a tremendous profit.."
Oh??
You mean like AMD did?
Thursday January 28, 9:12 am Eastern Time
Company Press Release
SOURCE: W. P. Carey & Co.
W. P. Carey Announces Acquisition of Advanced Micro Devices Silicon Valley Headquarters
$95 Million Financing Completed During Challenging Credit Market Environment
NEW YORK, Jan. 28 /PRNewswire/ -- W. P. Carey & Co., Inc., a leader in the ownership and net leasing of corporate properties, announced that it has completed the acquisition of the corporate headquarters of Advanced Micro Devices, Inc. (NYSE: AMD - news) on behalf of Carey Institutional Properties (CIP®), Corporate Property Associates 12 (CPA®:12), and Corporate Property Associates 14 (CPA®:14). CIP®, CPA®:12 and CPA®:14, public non-traded real estate investment trusts (REITs), are members of the $2.5 billion W. P. Carey Group. The property acquired, consists of two separate buildings comprising 362,000 square feet and is located in Sunnyvale, California in the heart of Silicon Valley. The facility is leased to Advanced Micro Devices, Inc. under a 20-year bond type net lease. The purchase price of the property was approximately $95 million. GMAC Commercial Mortgage provided a first mortgage note in the amount of $68,250,000.
Advanced Micro Devices (AMD) is a global supplier of integrated circuits for the personal and networked computer and communications markets. AMD produces processors, flash memories, programmable logic devices, and products for communication and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $2.4 billion in 1997.
Commenting on the investment, W. P. Carey First Vice President Sean Sovak noted, ``Given its strong product lines and competitive market position, particularly in the area of microprocessors, AMD is a leading supplier for the computer and communications industries. We believe the sale leaseback financing allows the company to free up assets to be deployed into the development and marketing of new products. This additional capital will further enhance AMD's competitive profile by maintaining their position on the cutting edge of research and product development in the markets it serves.'' Mr. Sovak added, ``We are very appreciative of the roles played by Mitchell Thurston, Vice President, and Andrew Ahlers, Assistant Vice President, of GMAC Commercial Mortgage's San Francisco office.''
W. P. Carey Managing Director Gordon F. DuGan noted, ``By allocating the acquisition among three of our REITs, we were able to take advantage of an attractive investment opportunity and still maintain significant diversification within each of the REITs. This is consistent with our core strategy of structuring our portfolios to maintain a conservative risk profile while still seeking out exceptional investment opportunities. In addition, given our other West Coast holdings, the AMD acquisition creates significant synergies allowing us to optimize our existing management capabilities in the region.''
Founded in 1973, W. P. Carey & Co. specializes in corporate real estate financing using the corporate net lease, or sale-leaseback structure. The firm, and its affiliates, is one of the largest lessors of net leased corporate real estate in the nation. The W. P. Carey Group manages the largest publicly traded limited liability company listed on the New York Stock Exchange and four real estate investment trusts (REITs). Collectively, Carey manages over 33 million square feet of property located in 41 states. The W. P. Carey Group's properties have an aggregate value of approximately $2.5 billion.
This press release contains forward-looking statements within the meaning of the Federal securities laws. 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.
SOURCE: W. P. Carey & Co. |
