PRESS RELEASES

May 10, 2016 - Capri EGM

Capri EGM Announces Acquisition of Critical cGMP Global Operations Center for Genzyme Corporation, a Sanofi Company (S&P: AA)

Institutional quality mission critical Genzyme cGMP Global Operations Center subject to long-term net lease

CHICAGO IL, May 10, 2016 /PRNewswire/ — Capri EGM, an investment company specializing in corporate sale leaseback and build-to-suit financing, and the acquisition of institutional quality single-tenant office, industrial, and retail net lease properties, announced today that it has acquired a critical cGMP global operations and distribution center for Genzyme, a Sanofi Company (NYSE: SNY) (S&P: AA), a global leader in rare disease pharmaceuticals, focusing on treatments for rare genetic, endocrine, and cardiovascular diseases in addition to multiple sclerosis. The global operations and distribution facility is leased to Genzyme under a long-term net lease. The purchase price for the property was not disclosed.

The Genzyme global operations and distribution center is located in Northborough, part of the suburban Boston market, one of the most attractive and vibrant markets in the United States, joining New Jersey and the mid-Atlantic as key “gateway distribution” locations and attractive investment markets, and is comprised of one state-of-the-art operations and distribution center.

Significant Facts

  • Industry-leading pharmaceutical company: Genzyme is a global leader in rare disease pharmaceuticals, focusing on treatments for rare genetic, endocrine, and cardiovascular diseases in addition to multiple sclerosis. Founded in 1981 and headquarted in Cambridge, Massachusetts, Genzyme operates 65 locations in 40 countries worldwide. It was acquired by Sanofi for $20.1 billion in April 2011, instantly positioning Sanofi as a global powerhouse in the rare disease market and complementing its pre-existing portfolio of pharmaceuticals, vaccines, generics, animal health and consumer health products.
  • Mission critical facility with cutting edge technology: The critical cGMP global operations and distribution center is used for the storage and distribution of Genzyme’s pharmaceutical products, and was constructed to Current Good Manufacturing Practices (cGMP) standards which are set by the Food and Drug Administration to assure the identity, strength, quality and purity of drug products. As one of only four properties in the market built to such standards, the Genzyme distribution center is an attractive and highly desirable asset.
  • Long-term net leases with built-in rent growth: The long-term net lease includes contractual annual increases. Genzyme conducts its global distribution operations from this critical facility. The property benefits from significant tenant investment, is LEED Gold-certified and has extensive interior, exterior, roof and mechanical upgrades, first-class finishes, and cutting-edge technology and state-of-the-art infrastructure.

Investment Management Company Comments
Shelby E. L. Pruett, Capri EGM’s Co-Chairman and Chief Executive Officer, commented: “This transaction illustrates Capri EGM’s focus on identifying and owning operationally critical assets leased by leading global companies on a long-term basis in strategic markets within the United States. By unlocking value through creative structuring and capital efficiency, we are committed to building long-term value for our institutional and corporate partners. The acquisition is consistent with our established strategy, providing durable cash flows, escalating annual rents, and attractive risk‑adjusted returns over time and across a variety of market conditions and economic cycles. Coupled with the long-term lease and the financial strength of Genzyme Corporation and its parent company Sanofi, we believe that this acquisition will be a solid addition to the Capri EGM portfolio.”

Capri EGM
Capri EGM is a real estate investment manager focused on the net lease, sale-leaseback, and build-to-suit commercial markets, providing investment programs for institutional investors and capital solutions for corporations. A venture with Capri Investment Group, Capri EGM is headquartered in Chicago, Illinois. Since 1992, Capri and its predecessor organizations have acquired, originated, and managed over $10 billion in commercial real estate investments directly and through entity level investments. Diversified assets managed on behalf of Capri’s pension fund and other institutional investors totaled approximately $3.53 billion as of December 31, 2015. Please visit capri-egm.com for more information about Capri EGM.

This press release contains forward-looking statements within the meaning of the Federal securities laws. The comments of Mr. Pruett and statements regarding the acquisition of the Genzyme Global Operations Center and the characteristics of the property and market are examples of forward looking statements. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any security relating to Capri EGM or any of its entities’ funds or investment vehicles. Any offer or solicitation may be made only through the delivery of a definitive Private Offering Memorandum and all information contained herein is qualified in its entirety by such Memorandum.

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Trish Hoffman

thoffman@capri.global