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News release

Chicago

Jones Lang LaSalle Finalizes Sale-Leaseback of Pratt Industries’ Valparaiso Corrugating and Box Manufacturing Facility

Pratt Industries executed a long term lease for the facility with the buyer, FT & NW Investments


CHICAGO, Aug. 4, 2009─ Jones Lang LaSalle announced today it has closed the sale and leaseback of one of the world’s largest corrugated box manufacturing facilities in Valparaiso, Indiana.  The buyer was FT & NW Investments of Chicago, which purchased the 506,650 square foot facility for $15.2 million. 

The property was constructed in 2002 and is 100 percent occupied by Pratt Industries. At closing, Pratt executed a long-term leaseback for the building at 3155 State Road 49 in Valparaiso.

Jones Lang LaSalle’s Matthew Gilbert and Michael Hochanadel represented the seller.

“This sale and subsequent leaseback of the Valparaiso facility allows Pratt Industries to monetize a quality asset and redeploy capital toward its core operations,” says Gilbert.  “Based on Pratt’s credit and the quality of the underlying real estate, we were able to achieve attractive economics in the transaction for our client.”

Adds Hochanadel, “Despite a generally difficult capital markets environment, we were able to secure economic terms consistent with Pratt’s overall objectives and close the transaction on schedule. 

From the client’s perspective, “The collaboration between Jones Lang LaSalle’s New York and Chicago teams provided exceptional capital markets coverage and local market expertise to ensure the overall success of this important transaction while providing seamless delivery,” said John Simcoe, Pratt Industries’ internal real estate executive.

The facility, just 45 miles from Chicago, is the only factory in the industry with two, 110-inch BHS corrugators allowing the company to provide customers with the highest levels of service at the best possible prices.  The plant also has nine finishing machines for box customers in virtually every user segment, from high-volume runs like pizza, glass and beverage applications to specialty runs for heavy-duty and bulk goods. 

About Pratt:

Pratt Industries was founded approximately twenty years ago and is currently the 6th largest manufacturer of paper and packaging in the United States, producing 3% of all packaging in America with annual sales approaching $1 billion. The firm, which is headquartered in Conyers, Georgia, has shown dramatic and sustained growth since the mid-1990’s by using  the world’s best practices and operating techniques as well as through acquisition.  Pratt operates three of the most modern and cost effective paper mills in the country, as well as, a network of sophisticated corrugating and converting facilities in more than 20 states. 

Together with its sister company in Australia, Pratt Industries is the largest privately held packaging company in the world with total group sales of more than $3 billion. As part of its near term expansion plans, the firm has just brought its third 100% recycled mill on-line in Shreveport, Louisiana and remains focused on expanding its network of regional sheet plants and recycling facilities as part of the pledge it made at the Clinton Global Initiative in 2007 to invest $1 billion dollars in its recycling infrastructure over the next 10 years.  The firm’s Corrugating Division is America’s most efficient and modern sheet producer of single faced, labeled and pre-printed sheets, as well as specialty products including a full range of flutes, double-wall combinations, functional and color coatings.
 
About FT & NW Investments:

FT & NW Investments has completed sale-leaseback and triple net leased transactions with a total value in excess of $400 million.  The principals of FT & NW Investments include Gregg Fox, Jim Tully, Gerald Nudo and Laurence Weiner.
 
About Jones Lang LaSalle
 
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $41 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.