Marriott International Web Site - December 30, 2005
Marriott International, Inc. (NYSE:MAR) announced today that it has completed the sale of a portfolio of land underlying 75 Courtyard by Marriott hotels for approximately $246 million in cash to CBM Land Joint Venture limited partnership (CBM Land JV). CBM Land JV is a joint venture majority- owned by Sarofim Realty Advisors (Sarofim), on behalf of an institutional investor. In addition, Marriott announced that it has contributed land underlying an additional 9 Courtyard hotels, worth approximately $40 million, to CBM Land JV, thereby retaining an approximately 23 percent equity stake in CBM Land JV.
Arne M. Sorenson, Marriott's executive vice president and chief financial officer, and president of continental European lodging, said, "We are pleased to conclude a transaction that both meaningfully benefits our return on invested capital moving forward and aligns well with our strategy of creating value through managing hotels rather than owning real estate."
The 84 parcels of land continue to be leased to the Courtyard by Marriott Joint Venture, which was substantially acquired by Sarofim Realty Advisors for the same institutional client on March 29, 2005. That acquisition recapitalized that joint venture and accelerated the reinvention of its 120 Courtyard hotels. Similar to today’s announcement, in that transaction Marriott agreed to maintain a minority ownership stake in that joint venture for at least three years.
Sphere: Related Content
Saturday, December 31, 2005
Tuesday, December 27, 2005
MAS May Sell & Leaseback HQ in Kuala Lumpur
The Star - December 24, 2005
Malaysian Airlines System Bhd (MAS) may sell and leaseback it's 35 story headquarters building, Bangunan MAS, in Kuala Lumpur and other properties to address its financial needs as it tries to make a turnaround, a company spokesman said. The Government, through various state entities, owns about 92% of MAS, which includes a 69.3% stake held indirectly by state investment agency Khazanah Nasional Bhd. This option was considered during its widespread asset unbundling or WAU exercise in 2002, in which the building was to be sold and leased back to Assets Global Network Sdn Bhd, a subsidiary of Ministry of Finance Inc. Sphere: Related Content
Malaysian Airlines System Bhd (MAS) may sell and leaseback it's 35 story headquarters building, Bangunan MAS, in Kuala Lumpur and other properties to address its financial needs as it tries to make a turnaround, a company spokesman said. The Government, through various state entities, owns about 92% of MAS, which includes a 69.3% stake held indirectly by state investment agency Khazanah Nasional Bhd. This option was considered during its widespread asset unbundling or WAU exercise in 2002, in which the building was to be sold and leased back to Assets Global Network Sdn Bhd, a subsidiary of Ministry of Finance Inc. Sphere: Related Content
Monday, December 26, 2005
Farmers Insurance to Sell & Leaseback Headquarters in Washington
Businesswire - December 22, 2005
Farmers New World Life Insurance Company, the nation's third-largest personal lines property & casualty insurance group, announced today the sale of its headquarters property at 3003 77th Avenue S.E. on Mercer Island, Washington. Farmers has committed to a lease back of the property for 15 years. The decision to sell the building is part of Farmers' continued efforts to enhance operating efficiency and follows similar real estate transactions at other locations. For example, Farmers recently sold its Home Office headquarters complex in Los Angeles but leased the complex back on a long-term basis.
Farmers, which has a long history in the Seattle area, remains committed to the Mercer Island area for its life insurance company operations. The life company currently serves life insurance customers in 41 states. Farmers Life employs 550 people at its Mercer Island headquarters. Sphere: Related Content
Farmers New World Life Insurance Company, the nation's third-largest personal lines property & casualty insurance group, announced today the sale of its headquarters property at 3003 77th Avenue S.E. on Mercer Island, Washington. Farmers has committed to a lease back of the property for 15 years. The decision to sell the building is part of Farmers' continued efforts to enhance operating efficiency and follows similar real estate transactions at other locations. For example, Farmers recently sold its Home Office headquarters complex in Los Angeles but leased the complex back on a long-term basis.
Farmers, which has a long history in the Seattle area, remains committed to the Mercer Island area for its life insurance company operations. The life company currently serves life insurance customers in 41 states. Farmers Life employs 550 people at its Mercer Island headquarters. Sphere: Related Content
Valtur Enters Euro 103 Million Sale Leaseback of Four Tourist Vllages
Pirelli Real Estate Web Site - December 23 2005
Pirelli RE has signed a binding agreement with Valtur for the acquisition of four tourist villages for an overall value of Euro 103 million, located in Marilleva, Pila, Nicotera and Ostuni. The transaction will take place through a real estate fund reserved for institutional investors; Pirelli RE will hold a share of 35%, in line with its business model (which envisages investments through qualified minority shareholdings), and will provide all the property services for the assets purchased.
Over the next two years investments of around Euro 12 million are planned for the development of the structures: 50% by the fund and 50% by Valtur. The latter will continue to manage the villages under an 18 years leasing contract, renewable for a further nine years. The closing of the transaction is expected by March 2006.
The Marilleva and Pila facilities, in Trentino and Valle d’Aosta respectively, each have an accommodation capacity of around 260 apartments and offer direct access to the ski lifts. The first covers an area of 10,000 sq m and the second an area of 13,000 sq m. The other two villages purchased, located near the sea at Ostuni, in Apulia, and Nicotera, in Calabria, have an accommodation capacity of 470 and 290 apartments respectively. The Ostuni village, the biggest in Valtur’s Italian chain, covers an area of 500,000 sq m, together with an additional 600,000 sq m for the property’s green spaces. Nicotera covers an area of 143,000 sq m.
The transaction, financed by Banca Intesa, is Pirelli RE’s first significantly large purchase in the tourism sector after several small investments, and follows the investment in a 25% share of Turismo & Immobiliare, a company which holds 49% of the share capital of Italia Turismo. Sphere: Related Content
Pirelli RE has signed a binding agreement with Valtur for the acquisition of four tourist villages for an overall value of Euro 103 million, located in Marilleva, Pila, Nicotera and Ostuni. The transaction will take place through a real estate fund reserved for institutional investors; Pirelli RE will hold a share of 35%, in line with its business model (which envisages investments through qualified minority shareholdings), and will provide all the property services for the assets purchased.
Over the next two years investments of around Euro 12 million are planned for the development of the structures: 50% by the fund and 50% by Valtur. The latter will continue to manage the villages under an 18 years leasing contract, renewable for a further nine years. The closing of the transaction is expected by March 2006.
The Marilleva and Pila facilities, in Trentino and Valle d’Aosta respectively, each have an accommodation capacity of around 260 apartments and offer direct access to the ski lifts. The first covers an area of 10,000 sq m and the second an area of 13,000 sq m. The other two villages purchased, located near the sea at Ostuni, in Apulia, and Nicotera, in Calabria, have an accommodation capacity of 470 and 290 apartments respectively. The Ostuni village, the biggest in Valtur’s Italian chain, covers an area of 500,000 sq m, together with an additional 600,000 sq m for the property’s green spaces. Nicotera covers an area of 143,000 sq m.
The transaction, financed by Banca Intesa, is Pirelli RE’s first significantly large purchase in the tourism sector after several small investments, and follows the investment in a 25% share of Turismo & Immobiliare, a company which holds 49% of the share capital of Italia Turismo. Sphere: Related Content
Thursday, December 22, 2005
UNITE Enters £64 Million Sale Leaseback of Student Housing Properties
Freeman News / AFX - December 19, 2005
UNITE Group plc has completed the sale of a property unit trust which owns three student accommodation buildings operated by UNITE, to Savills plc, for £64.1m in cash. The amount is equivalent to a 5.22% net initial yield. Under the terms of the deal, UNITE will retain full responsibility for the management of the buildings, as well as a share in the net income after management costs. UNITE will retain approximately 23% of the gross rents after paying rent of £3.4m per year to the fund under three long-term leases.
The properties, all purpose-built in the past three years, are located in Bournemouth, Bath and Portsmouth and provide 1,561 bed spaces, representing about 5% of UNITE's portfolio. UNITE said it will use most of the proceeds to repay borrowings, with the remaining capital of approximately £17m to be reinvested into the group's development activities. Sphere: Related Content
UNITE Group plc has completed the sale of a property unit trust which owns three student accommodation buildings operated by UNITE, to Savills plc, for £64.1m in cash. The amount is equivalent to a 5.22% net initial yield. Under the terms of the deal, UNITE will retain full responsibility for the management of the buildings, as well as a share in the net income after management costs. UNITE will retain approximately 23% of the gross rents after paying rent of £3.4m per year to the fund under three long-term leases.
The properties, all purpose-built in the past three years, are located in Bournemouth, Bath and Portsmouth and provide 1,561 bed spaces, representing about 5% of UNITE's portfolio. UNITE said it will use most of the proceeds to repay borrowings, with the remaining capital of approximately £17m to be reinvested into the group's development activities. Sphere: Related Content
Apple Signs 20 Year Net Lease in Manhattan
iPodNN - December 19, 2005
Apple has found yet another retail store location in Manhattan, after it was unable to obtain approval for a location in Flatiron district earlier this year. Apple has reportedly "net-leased the entire, 30,000-foot five-story building from Jeff Sutton of Wharton Realty and his partner, SL Green Realty Trust," according to a report in the New York Post.
The upcoming retail location on West 34th street will be the third retail location in the lucrative Manhattan market, as the company finalized a second location earlier this year. Apple next spring will open a second 20,000-square-foot retail store in the underground concourse of the General Motors building near Midtown. That lease was finally signed after Jobs negotiated to keep the giant $9 million 32-foot hollow glass cube that he designed, following the expiration of the 20-year store lease. Sphere: Related Content
Apple has found yet another retail store location in Manhattan, after it was unable to obtain approval for a location in Flatiron district earlier this year. Apple has reportedly "net-leased the entire, 30,000-foot five-story building from Jeff Sutton of Wharton Realty and his partner, SL Green Realty Trust," according to a report in the New York Post.
The upcoming retail location on West 34th street will be the third retail location in the lucrative Manhattan market, as the company finalized a second location earlier this year. Apple next spring will open a second 20,000-square-foot retail store in the underground concourse of the General Motors building near Midtown. That lease was finally signed after Jobs negotiated to keep the giant $9 million 32-foot hollow glass cube that he designed, following the expiration of the 20-year store lease. Sphere: Related Content
Wednesday, December 21, 2005
Net Leased Nestle Warehouse Portfolio Sold for $141.5 Million
CoStar Web Site - December 19, 2005
H&R REIT of Ontario, Canada purchased three industrial buildings in Atlanta, GA, Chicago, IL, and Fort Worth, TX from The Cardinal Co. and its affiliates for approximately $141.5 million, or about $64 per square foot. All three industrial buildings are leased to Nestlé USA Inc. at an average of 12 years.
The buildings acquired in the sale are at 1 Nestlé Court in McDonough, GA (782,565 square feet), 800 Nestlé Court in DeKalb, IL (860,939 square feet) and 13600 Independence Parkway in Fort Worth (524,252 square feet).
Terry Reitz, Kevin Shannon, Bruce Granger, Gary Lindsey and Dave Watson of Grubb & Ellis, along with Asher Hyman of Corvest Realty Group, represented the seller. The buyer had in-house representation. Sphere: Related Content
H&R REIT of Ontario, Canada purchased three industrial buildings in Atlanta, GA, Chicago, IL, and Fort Worth, TX from The Cardinal Co. and its affiliates for approximately $141.5 million, or about $64 per square foot. All three industrial buildings are leased to Nestlé USA Inc. at an average of 12 years.
The buildings acquired in the sale are at 1 Nestlé Court in McDonough, GA (782,565 square feet), 800 Nestlé Court in DeKalb, IL (860,939 square feet) and 13600 Independence Parkway in Fort Worth (524,252 square feet).
Terry Reitz, Kevin Shannon, Bruce Granger, Gary Lindsey and Dave Watson of Grubb & Ellis, along with Asher Hyman of Corvest Realty Group, represented the seller. The buyer had in-house representation. Sphere: Related Content
Alstom Power Enters 24.5 Million Euro Sale Leaseback of HQ
Slough Estate Web Site - December 21, 2005
Slough Estates International has entered into a sale and leaseback transaction to acquire the headquarters of Alstom Power (part of the French industrial group Alstom) in La Courneuve, Ile de France, immediately to the north of Paris for €24.5M, net of acquisition costs.
The 10.9ha property provides 53,000m² of office and light industrial accommodation which Alstom have leased back for a 9 year fixed term at an annual rent of €1.4M. Included in the sale is a 4.4ha prime industrial site with substantial frontage onto the A86 motorway (the second Paris ring road) - this represents a development opportunity for the provision of new light industrial accommodation.
The sale and leaseback element of the transaction reflects a net initial yield of 7.5% excluding the development site as at market value. Sphere: Related Content
Slough Estates International has entered into a sale and leaseback transaction to acquire the headquarters of Alstom Power (part of the French industrial group Alstom) in La Courneuve, Ile de France, immediately to the north of Paris for €24.5M, net of acquisition costs.
The 10.9ha property provides 53,000m² of office and light industrial accommodation which Alstom have leased back for a 9 year fixed term at an annual rent of €1.4M. Included in the sale is a 4.4ha prime industrial site with substantial frontage onto the A86 motorway (the second Paris ring road) - this represents a development opportunity for the provision of new light industrial accommodation.
The sale and leaseback element of the transaction reflects a net initial yield of 7.5% excluding the development site as at market value. Sphere: Related Content
Dresdner Bank Agrees to $2.4 Billion Sale Leaseback of Property Portfolio
Eurocastle Web Site - December 22, 2005
Eurocastle Investment Limited (Euronext Amsterdam: ECT),which is managed by Fortress Investment Group LLC, today announced that it has signed a definitive agreement with Dresdner Bank AG to acquire 100% of an open-end fund which owns a portfolio of 303 commercial properties for approximately €2 billion. The properties consist primarily of office buildings and are largely occupied by Dresdner. The bank will continue to occupy their current space which represents approximately 80% of rental income on the portfolio. Dresdner’s average remaining lease term is 9 years, while the average
remaining lease term of the entire portfolio is approximately 8 years. Approximately 15% of the portfolio is currently vacant.
The properties, totaling approximately 9 million square feet (845,516 square meters) of leasable space, are located throughout Germany, with concentrations in Frankfurt, Hamburg, Munich, Düsseldorf and Berlin. The assets are generally in major metropolitan areas and Eurocastle believes that the properties are among the best-located and highest quality assets in their respective markets. The purchase reflects an unleveraged initial yield of approximately 5%.
(Seperate media sources reported that Australia's Babcock and Brown and investment bank Morgan Stanley with its German partner DIC were also shortlisted in the bidding for the 300 property portfolio.) Sphere: Related Content
Eurocastle Investment Limited (Euronext Amsterdam: ECT),which is managed by Fortress Investment Group LLC, today announced that it has signed a definitive agreement with Dresdner Bank AG to acquire 100% of an open-end fund which owns a portfolio of 303 commercial properties for approximately €2 billion. The properties consist primarily of office buildings and are largely occupied by Dresdner. The bank will continue to occupy their current space which represents approximately 80% of rental income on the portfolio. Dresdner’s average remaining lease term is 9 years, while the average
remaining lease term of the entire portfolio is approximately 8 years. Approximately 15% of the portfolio is currently vacant.
The properties, totaling approximately 9 million square feet (845,516 square meters) of leasable space, are located throughout Germany, with concentrations in Frankfurt, Hamburg, Munich, Düsseldorf and Berlin. The assets are generally in major metropolitan areas and Eurocastle believes that the properties are among the best-located and highest quality assets in their respective markets. The purchase reflects an unleveraged initial yield of approximately 5%.
(Seperate media sources reported that Australia's Babcock and Brown and investment bank Morgan Stanley with its German partner DIC were also shortlisted in the bidding for the 300 property portfolio.) Sphere: Related Content
Israeli Government Housing Administration Planning Sale Leaseback Deals
Globes Online - December 18, 2005
The Government Housing Administration plans to exercise its option to buy the Beersheva government complex from Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) for $60 million, and assume ownership of the property in November 2007.
The deal involves 28,000 sq.m. in four buildings: 22,000 sq.m. leases to the state at $11 per sq.m. per month, and 6,000 sq.m. in commercial space. Ashtrom Properties Ltd. (TASE:ASPR) and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE:HUCN) subsidiary Secom (Israel) Ltd. built the Beersheva government complex in the late 1990s. Migdal bought the office buildings from Ashtrom in 2003 for $43 million. Ashtrom and Secom still own the commercial space.
The state intends to exploit the difference between interest rates and returns to buy the government complex at a return of 9%, and sell it immediately afterwards, thereby making an additional profit. Under the terms of the contract between the state and Migdal, the state has the right to exercise the option only in November 2007.
The Government Housing Administration is now publishing tenders to sell the four buildings. If it receives no worthwhile offers, it will forego the option, and continue to rent the properties from Migdal. If a new buyer is found, the government will rent the properties in a 20-year lease with a three-year option.
The Government Housing Administration is planning similar deals for the government complexes in Haifa, Ramle and Tel Aviv. The states rents the Tel Aviv government complex from Half Jubilee Ltd., a subsidiary of Africa-Israel Investments Ltd. Sphere: Related Content
The Government Housing Administration plans to exercise its option to buy the Beersheva government complex from Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) for $60 million, and assume ownership of the property in November 2007.
The deal involves 28,000 sq.m. in four buildings: 22,000 sq.m. leases to the state at $11 per sq.m. per month, and 6,000 sq.m. in commercial space. Ashtrom Properties Ltd. (TASE:ASPR) and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE:HUCN) subsidiary Secom (Israel) Ltd. built the Beersheva government complex in the late 1990s. Migdal bought the office buildings from Ashtrom in 2003 for $43 million. Ashtrom and Secom still own the commercial space.
The state intends to exploit the difference between interest rates and returns to buy the government complex at a return of 9%, and sell it immediately afterwards, thereby making an additional profit. Under the terms of the contract between the state and Migdal, the state has the right to exercise the option only in November 2007.
The Government Housing Administration is now publishing tenders to sell the four buildings. If it receives no worthwhile offers, it will forego the option, and continue to rent the properties from Migdal. If a new buyer is found, the government will rent the properties in a 20-year lease with a three-year option.
The Government Housing Administration is planning similar deals for the government complexes in Haifa, Ramle and Tel Aviv. The states rents the Tel Aviv government complex from Half Jubilee Ltd., a subsidiary of Africa-Israel Investments Ltd. Sphere: Related Content
Monday, December 19, 2005
Fitch Rates Securitization of $767 Million in Single Tenant Loans
Business Wire - December 15, 2005
Fitch Ratings has rated GE Business Loan Trust 2005-2, a securitization of 341 business loans made to 301 borrowers. The loans were originated by GE Commercial Finance Business Property Corporation (GECF) and the Small Business Finance (SBF) lending division of General Electric Capital Corporation (GECC).
The $767 million underlying collateral pool consists of approximately $500 million (65.2%) of conventional business loans originated by GECF and approximately $267 million (34.8%) of SBA 504 loans originated by SBF. The loans are secured by first liens on owner-occupied or single tenant retail, office, industrial, or other commercial real estate. The pool is diversified geographically, with loans from 41 states.
This transaction represents the sixth term securitization of loans originated by the GECF and SBF business units. Sphere: Related Content
Fitch Ratings has rated GE Business Loan Trust 2005-2, a securitization of 341 business loans made to 301 borrowers. The loans were originated by GE Commercial Finance Business Property Corporation (GECF) and the Small Business Finance (SBF) lending division of General Electric Capital Corporation (GECC).
The $767 million underlying collateral pool consists of approximately $500 million (65.2%) of conventional business loans originated by GECF and approximately $267 million (34.8%) of SBA 504 loans originated by SBF. The loans are secured by first liens on owner-occupied or single tenant retail, office, industrial, or other commercial real estate. The pool is diversified geographically, with loans from 41 states.
This transaction represents the sixth term securitization of loans originated by the GECF and SBF business units. Sphere: Related Content
Sunday, December 18, 2005
CVS Completes $386 Million Sale Leaseback of 110 Drug Stores
Moody's Investor Service - December 15, 2005
Based on information received through December 14, Moody's Investors Service assigns a provisional (P) A3 rating to approximately $386.1 million of Certificates to be issued by a trust that will acquire 110 first-priority lien commercial mortgage, credit-tenant lease loans. The loans will be secured by newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS Corporation. Each of the leases will be bondable and guaranteed by CVS Corporation, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2028. Fixed net rent under the leases, plus a pre-funded interest reserve, will be sufficient to pay in full all interest and principal of the loans. The 110 drugstores are located in 26 states.
Moody's determined that, among other factors, the dark value of the collateral is sufficient, assuming a bankruptcy of CVS and rejection of the leases, to support the expected loss consistent with the Certificates' rating. The rating
of the Certificates is primarily based on the senior unsecured debt rating of CVS Corporation, which is currently A3, stable outlook; therefore, the Certificates' rating will change as the senior unsecured debt rating of CVS Corporation may change. The rating of the Certificates was also based on the overall structure and legal integrity of the transaction. Sphere: Related Content
Based on information received through December 14, Moody's Investors Service assigns a provisional (P) A3 rating to approximately $386.1 million of Certificates to be issued by a trust that will acquire 110 first-priority lien commercial mortgage, credit-tenant lease loans. The loans will be secured by newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS Corporation. Each of the leases will be bondable and guaranteed by CVS Corporation, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2028. Fixed net rent under the leases, plus a pre-funded interest reserve, will be sufficient to pay in full all interest and principal of the loans. The 110 drugstores are located in 26 states.
Moody's determined that, among other factors, the dark value of the collateral is sufficient, assuming a bankruptcy of CVS and rejection of the leases, to support the expected loss consistent with the Certificates' rating. The rating
of the Certificates is primarily based on the senior unsecured debt rating of CVS Corporation, which is currently A3, stable outlook; therefore, the Certificates' rating will change as the senior unsecured debt rating of CVS Corporation may change. The rating of the Certificates was also based on the overall structure and legal integrity of the transaction. Sphere: Related Content
Friday, December 16, 2005
Boulder Net Lease Funds Publishes 4th Quarter Net Lease Market Research Report
Boulder Net Lease Funds Web Site - December 06, 2005
Boulder Net Lease Funds, LLC has released a new research report providing comprehensive numbers and analysis of the 4th Quarter activity in the Net Lease Market. As of mid November 2005, Boulder Net Lease Funds is currently tracking 7,348 available net lease properties nationwide which have a combined value in excess of $24.6 Billion. The report covers the office, industrial and retail sectors of the Net Leased Market and breaks down the Net Lease Market by Sector, State, CAP Rate, Pricing and Price Per Foot. Sphere: Related Content
Boulder Net Lease Funds, LLC has released a new research report providing comprehensive numbers and analysis of the 4th Quarter activity in the Net Lease Market. As of mid November 2005, Boulder Net Lease Funds is currently tracking 7,348 available net lease properties nationwide which have a combined value in excess of $24.6 Billion. The report covers the office, industrial and retail sectors of the Net Leased Market and breaks down the Net Lease Market by Sector, State, CAP Rate, Pricing and Price Per Foot. Sphere: Related Content
British Govt. Seeking $346 Million Sale Leasebback of Northern Ireland Property Portfolio
Offshore Outsourcing World Blog / Outsource 360 - December 9, 2005
The British government has launched the phased sale of its run-down 3.8-million-sf estate in Northern Ireland. Northern Ireland Civil Service has published an invitation for expressions of interest in the euro 2.2-billion ($2.6-billion) outsourcing contract in the Official Journal of the European Union.
The single contract will involve the private sector buying and leasing back operational property, disposing of redundant buildings, refurbishing retained property and managing the facilities on those properties leased back to the government. Effectively, the government is outsourcing estate, building and facilities management to the private sector. The advertisement states that the Department of Finance and Personnel will brief interested parties in Belfast on Dec. 8. They will then have until January 23 to submit preliminary proposals. Officials will then select three or four prospective partners to draw up more detailed proposals. The aim is to award the contract by the end of next year.
UK-based Land Securities Trillium and Mapeley are expected to prepare joint bids with Irish investors and developers. The portfolio comprises 56 freeholds totalling 2.2 million sf and valued at euro 295 million ($346 million). Lease liabilities on 24 properties totalling 830,000 sf will also be transferred. A further 122 buildings could be transferred in phase two. The properties include 28 core offices in Belfast and the regions; 35 Jobs and Benefits Offices; and 17 Belfast offices that the civil service wants to vacate. But the estate needs extensive refurbishment and will cost the partner an estimated euro 155 million ($133 million) in annual running costs. The successful bidder will also be required to develop a new 50,000-sf office on the Stormont Estate as well as take responsibility for the facilities management of the entire 3.8 million sf estate. Sphere: Related Content
The British government has launched the phased sale of its run-down 3.8-million-sf estate in Northern Ireland. Northern Ireland Civil Service has published an invitation for expressions of interest in the euro 2.2-billion ($2.6-billion) outsourcing contract in the Official Journal of the European Union.
The single contract will involve the private sector buying and leasing back operational property, disposing of redundant buildings, refurbishing retained property and managing the facilities on those properties leased back to the government. Effectively, the government is outsourcing estate, building and facilities management to the private sector. The advertisement states that the Department of Finance and Personnel will brief interested parties in Belfast on Dec. 8. They will then have until January 23 to submit preliminary proposals. Officials will then select three or four prospective partners to draw up more detailed proposals. The aim is to award the contract by the end of next year.
UK-based Land Securities Trillium and Mapeley are expected to prepare joint bids with Irish investors and developers. The portfolio comprises 56 freeholds totalling 2.2 million sf and valued at euro 295 million ($346 million). Lease liabilities on 24 properties totalling 830,000 sf will also be transferred. A further 122 buildings could be transferred in phase two. The properties include 28 core offices in Belfast and the regions; 35 Jobs and Benefits Offices; and 17 Belfast offices that the civil service wants to vacate. But the estate needs extensive refurbishment and will cost the partner an estimated euro 155 million ($133 million) in annual running costs. The successful bidder will also be required to develop a new 50,000-sf office on the Stormont Estate as well as take responsibility for the facilities management of the entire 3.8 million sf estate. Sphere: Related Content
RadioShack Enters $220 Sale Leaseback of HQ
SEC Edgar Database - December 16, 2005
RadioShack Corporation has entered into a purchase and sale agreement with Kan Am Grund Kapitalanlagegesellschaft mbH to sell and lease back its corporate headquarters in Fort Worth, Texas. RadioShack currently expects that its net proceeds, after transaction and other related costs, will be approximately $220 million. RadioShack currently expects that the purchase and sale agreement will close on or about December 21, 2005.
RadioShack will enter into a 20-year triple-net lease agreement with the Purchaser. RadioShack has four five-year options to renew the lease agreement. Base annual rent for the primary term of the lease will initially be approximately $14.1 million and will increase by 1.25% per year. RadioShack will be required to post a $5 million letter of credit at the closing of the lease and to maintain the letter of credit during the term of the lease. RadioShack will be required pay all of the costs associated with the operation of the facilities, including costs such as insurance, taxes and maintenance.
Sphere: Related Content
RadioShack Corporation has entered into a purchase and sale agreement with Kan Am Grund Kapitalanlagegesellschaft mbH to sell and lease back its corporate headquarters in Fort Worth, Texas. RadioShack currently expects that its net proceeds, after transaction and other related costs, will be approximately $220 million. RadioShack currently expects that the purchase and sale agreement will close on or about December 21, 2005.
RadioShack will enter into a 20-year triple-net lease agreement with the Purchaser. RadioShack has four five-year options to renew the lease agreement. Base annual rent for the primary term of the lease will initially be approximately $14.1 million and will increase by 1.25% per year. RadioShack will be required to post a $5 million letter of credit at the closing of the lease and to maintain the letter of credit during the term of the lease. RadioShack will be required pay all of the costs associated with the operation of the facilities, including costs such as insurance, taxes and maintenance.
Sphere: Related Content
IBM Completes Sale Leaseback of £120 Million UK Office Portfolio
Propertymall.com - December 7, 2005
The Highcross Fund has completed the purchase of IBM's sale and leaseback portfolio marketed earlier this year with offers being sought in excess of £120 million. The portfolio comprises three purpose-built business parks in Portsmouth, Warwick and Greenock and a two-storey data centre in Greenford. The sites total approximately 1,645,490 sq ft (152,866 sq m). IBM has taken the space for fifteen years, with break clauses in the tenth year and options to extend. Atisreal acted for IBM and Morgan & Co advised The Highcross Fund. Sphere: Related Content
The Highcross Fund has completed the purchase of IBM's sale and leaseback portfolio marketed earlier this year with offers being sought in excess of £120 million. The portfolio comprises three purpose-built business parks in Portsmouth, Warwick and Greenock and a two-storey data centre in Greenford. The sites total approximately 1,645,490 sq ft (152,866 sq m). IBM has taken the space for fifteen years, with break clauses in the tenth year and options to extend. Atisreal acted for IBM and Morgan & Co advised The Highcross Fund. Sphere: Related Content
Financial Services Authority HQ in London Sold for £191 Million
Freeman News / AFX - December 06, 2005
Songbird Estates plc's main operating unit, Canary Wharf Group plc, is selling long leasehold interests in 25 North Colonnade to Evans Randall, a privately held investment bank, for £191m. The selling price provides a net yield of 5.2%. The property is let to the Financial Services Authority until 2018 and current rent passing is £9.99m per annum. Canary Wharf is providing rental support of £0.46m until November 2006 and then £0.26m until November 2007, when the rental support will end. The property has been valued at £180m as at end June, the company statement added." Sphere: Related Content
Songbird Estates plc's main operating unit, Canary Wharf Group plc, is selling long leasehold interests in 25 North Colonnade to Evans Randall, a privately held investment bank, for £191m. The selling price provides a net yield of 5.2%. The property is let to the Financial Services Authority until 2018 and current rent passing is £9.99m per annum. Canary Wharf is providing rental support of £0.46m until November 2006 and then £0.26m until November 2007, when the rental support will end. The property has been valued at £180m as at end June, the company statement added." Sphere: Related Content
State Street Bank to Lease New UK HQ at Canary Wharf
The Wharf - December 15, 2005
State Street Bank has agreed to heads of terms with Canary Wharf Group (CWG) on a new 300,000 sq ft headquarters to be built at Churchill Place. Construction is to begin on the 12-storey building opposite Barclays HQ, in the new year. The Wharf has previously reported on speculation that the firm, which occupies eight floors in the tower, would be moving. Neither State Street nor CWG would comment on the possible move, but a source close to the deal told The Wharf: "They're taking the building." State Street moved into One Canada Square in August 1991 and has seen staff numbers growing from around 100 to nearly 1,000 in the past 14 years. Sphere: Related Content
State Street Bank has agreed to heads of terms with Canary Wharf Group (CWG) on a new 300,000 sq ft headquarters to be built at Churchill Place. Construction is to begin on the 12-storey building opposite Barclays HQ, in the new year. The Wharf has previously reported on speculation that the firm, which occupies eight floors in the tower, would be moving. Neither State Street nor CWG would comment on the possible move, but a source close to the deal told The Wharf: "They're taking the building." State Street moved into One Canada Square in August 1991 and has seen staff numbers growing from around 100 to nearly 1,000 in the past 14 years. Sphere: Related Content
Lietuvos Telekomas' Group Agrees to Sale Leaseback of Lithuanian Property Portfolio
Lietuvos Telekomas Web Site - December 8, 2005
On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.
According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.
AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content
On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.
According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.
AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content
Deutsche Telekom Completes $33 Million Sale Leaseback of Three Office Buildings in Frankfurt
Globes Online - December 11,2005
A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.
Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content
A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.
Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content
Tuesday, December 13, 2005
Kesko Group Weighing Sale Leaseback of 100 Properties in Finland
Kesko Web Site - December 5, 2005
Kesko Group has started negotiations concerning the sale and leaseback of about one hundred properties located in Finland. The properties are currently used by Kesko's division parent companies and their total area is approximately 200,000 m2. The sale is aimed at enhancing the use of the Group's capital. The deal is intended for conclusion during 2006.
With nearly 3,000 stores totalling almost 2.9 million sq meters, Kesko is the leading retailer in Finland and among the largest companies on the Helsinki Stock Exchange. Established in 1940, it operates throughout the Baltic States and Scandinavian countries. The Group’s sales amounted to EUR 7.6bn in 2004. Sphere: Related Content
Kesko Group has started negotiations concerning the sale and leaseback of about one hundred properties located in Finland. The properties are currently used by Kesko's division parent companies and their total area is approximately 200,000 m2. The sale is aimed at enhancing the use of the Group's capital. The deal is intended for conclusion during 2006.
With nearly 3,000 stores totalling almost 2.9 million sq meters, Kesko is the leading retailer in Finland and among the largest companies on the Helsinki Stock Exchange. Established in 1940, it operates throughout the Baltic States and Scandinavian countries. The Group’s sales amounted to EUR 7.6bn in 2004. Sphere: Related Content
Hornbach Enters 175 Million Euro Sale Leaseback on Eight Stores in Europe
Irish Times - December 7, 2005
Anglo Irish Bank has made a major property acquisition in Germany with the purchase of eight DIY stores for in Germany for Euro 175 million. The deal ranks as one of the largest international transactions this year by Irish investors and is Anglo Irish Bank's first foray into the German market. The bank bought the portfolio of eight retail warehousing outlets from the DIY chain Hornbach in a privately negotiated sale and leaseback deal.
Anglo Irish Bank says it intends to recoup the money by raising three-quarters of the equity from its private client base. Anglo Irish Bank's partner in this venture, Taurus Investment Holdings, will fund the remaining quarter. The portfolio will return a net yield of just under 7 percent with rent adjustments linked to inflation. Leveraged returns are expected to be between 10 and 12 percent per annum. Yields in the German property market are significantly higher than the UK or Ireland.
Hornbach is Germany's third largest DIY chain and is part-owned by B & Q's parent company, Kingfisher. The retailer, which is listed on the Frankfurt stock exchange, has 88 stores in Germany and a further 29 across Europe. It has occupied the eight properties involved for the past 15 years but decided to sell and lease them back in order to fund an expansion drive on the Continent.
The retail warehousing outlets range in size from 14,864sq m to 18,581sq m (160,000sq ft to 200,000sq ft). Six of the outlets are located outside major German cities while two are in Sweden and Holland. Together, the properties generate an annual rent roll of €13.1 million or just under €108 per sq m (€10 per sq ft). Sphere: Related Content
Anglo Irish Bank has made a major property acquisition in Germany with the purchase of eight DIY stores for in Germany for Euro 175 million. The deal ranks as one of the largest international transactions this year by Irish investors and is Anglo Irish Bank's first foray into the German market. The bank bought the portfolio of eight retail warehousing outlets from the DIY chain Hornbach in a privately negotiated sale and leaseback deal.
Anglo Irish Bank says it intends to recoup the money by raising three-quarters of the equity from its private client base. Anglo Irish Bank's partner in this venture, Taurus Investment Holdings, will fund the remaining quarter. The portfolio will return a net yield of just under 7 percent with rent adjustments linked to inflation. Leveraged returns are expected to be between 10 and 12 percent per annum. Yields in the German property market are significantly higher than the UK or Ireland.
Hornbach is Germany's third largest DIY chain and is part-owned by B & Q's parent company, Kingfisher. The retailer, which is listed on the Frankfurt stock exchange, has 88 stores in Germany and a further 29 across Europe. It has occupied the eight properties involved for the past 15 years but decided to sell and lease them back in order to fund an expansion drive on the Continent.
The retail warehousing outlets range in size from 14,864sq m to 18,581sq m (160,000sq ft to 200,000sq ft). Six of the outlets are located outside major German cities while two are in Sweden and Holland. Together, the properties generate an annual rent roll of €13.1 million or just under €108 per sq m (€10 per sq ft). Sphere: Related Content
Advance Synergy Bhd to Sell & Leaseback Three Hotels for $28 Million
The Edge Daily - December 13, 2005
Amanah Raya Bhd is acquiring Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi from Advance Synergy Bhd (ASB) for a total of up to RM105 ($27.8 million) cash in a proposed sale and leaseback.
Announcing the deal on Dec 13, ASB said it had each accepted an offer from Amanah Raya to acquire Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi for up to RM30 million, RM23 million and RM52 million respectively. ASB will have the option to buy back the hotels from Amanah Raya for a total of up to RM105 million upon the expiry of the leaseback period.
Under the deal, Amanah Raya will lease back each of the hotels to the ASB subsidiaries separately for 10 years with an option of another five years. The leaseback is guaranteed by Alangka-Suka Hotels & Resorts Bhd, a subsidiary of Advance Synergy. The net rental of the leaseback for the 10-year period was structured as 7% per annum for the first three years, 7.5% for the next three years and 8% for the remaining period. For the extended five-year period, the net rental of the leaseback will be at a rate mutually agreed by both parties. Sphere: Related Content
Amanah Raya Bhd is acquiring Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi from Advance Synergy Bhd (ASB) for a total of up to RM105 ($27.8 million) cash in a proposed sale and leaseback.
Announcing the deal on Dec 13, ASB said it had each accepted an offer from Amanah Raya to acquire Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi for up to RM30 million, RM23 million and RM52 million respectively. ASB will have the option to buy back the hotels from Amanah Raya for a total of up to RM105 million upon the expiry of the leaseback period.
Under the deal, Amanah Raya will lease back each of the hotels to the ASB subsidiaries separately for 10 years with an option of another five years. The leaseback is guaranteed by Alangka-Suka Hotels & Resorts Bhd, a subsidiary of Advance Synergy. The net rental of the leaseback for the 10-year period was structured as 7% per annum for the first three years, 7.5% for the next three years and 8% for the remaining period. For the extended five-year period, the net rental of the leaseback will be at a rate mutually agreed by both parties. Sphere: Related Content
Friday, December 09, 2005
KarstadtQuelle Agrees to 163 Million Euro Sale Leaseback of Property Portfolio
Bloomberg - December 8, 2005
KarstadtQuelle AG, Germany's biggest department-store chain, may sell all of its real estate next year to eliminate debt of about 2.8 billion euros ($3.3 billion) that brought the company to the brink of collapse. The shares had their biggest gain in more than a year.
KarstadtQuelle hired Goldman Sachs Group Inc. to explore the sale and leaseback or spinoff of property such as department stores in city centers from Cologne to Berlin, Chief Executive Thomas Middelhoff told reporters today in Dusseldorf, Germany.
KarstadtQuelle, based in Essen, had property with a book value of 3.8 billion euros as of Dec. 31. The company has sold or transferred off the balance sheet department stores and 40 logistics properties to cut debt by 1 billion euros by the end of this year.
(Bloomberg reports that Slough Estates PLC has just agreed to buy a property portfolio and major development land bank from KarstadtQuelle AG in a sale and leaseback deal for 163.2 mln euro. The portfolio totals 260,000 square metres of let warehouse accommodation, 63,000 square metres of let office accommodation and 53 hectares of development land, producing a total rent income of 13.1 mln eur a year. KarstadtQuelle AG reportedly entered into long-term leases on the assets.) Sphere: Related Content
KarstadtQuelle AG, Germany's biggest department-store chain, may sell all of its real estate next year to eliminate debt of about 2.8 billion euros ($3.3 billion) that brought the company to the brink of collapse. The shares had their biggest gain in more than a year.
KarstadtQuelle hired Goldman Sachs Group Inc. to explore the sale and leaseback or spinoff of property such as department stores in city centers from Cologne to Berlin, Chief Executive Thomas Middelhoff told reporters today in Dusseldorf, Germany.
KarstadtQuelle, based in Essen, had property with a book value of 3.8 billion euros as of Dec. 31. The company has sold or transferred off the balance sheet department stores and 40 logistics properties to cut debt by 1 billion euros by the end of this year.
(Bloomberg reports that Slough Estates PLC has just agreed to buy a property portfolio and major development land bank from KarstadtQuelle AG in a sale and leaseback deal for 163.2 mln euro. The portfolio totals 260,000 square metres of let warehouse accommodation, 63,000 square metres of let office accommodation and 53 hectares of development land, producing a total rent income of 13.1 mln eur a year. KarstadtQuelle AG reportedly entered into long-term leases on the assets.) Sphere: Related Content
Metro Sells 53 Praktiker Stores in 480 Million Euro Sale Leaseback
Freeman European News / AFX - December 07, 2005
Metro AG said it has sold 53 properties of its Praktiker home improvement chain to a real estate fund managed by IXIS AEW Europe. It divested 35 stand-alone locations in Germany, including the Praktiker headquarters in Kirkel, eight stores in Greece and 10 in Hungary. It said the sale as well as last month's Praktiker initial public offering resulted in total cash proceeds of around 840 mln eur. Industry sources said the properties were sold for around 480 mln eur. The deal is subject to antitrust approval Sphere: Related Content
Metro AG said it has sold 53 properties of its Praktiker home improvement chain to a real estate fund managed by IXIS AEW Europe. It divested 35 stand-alone locations in Germany, including the Praktiker headquarters in Kirkel, eight stores in Greece and 10 in Hungary. It said the sale as well as last month's Praktiker initial public offering resulted in total cash proceeds of around 840 mln eur. Industry sources said the properties were sold for around 480 mln eur. The deal is subject to antitrust approval Sphere: Related Content
Marseille-Kliniken Enters Sale Leaseback of Care Facilities for 117 Million Euro
Freeman European News / AFX - December 06, 2005
Marseille-Kliniken AG said it has sold eight care sector properties and two rehabilitation clinics to the UK investor CIT Group Europe. Under the deal, Marseille-Kliniken will lease back the clinics long term. Marseille-Kliniken said the sale enables it to pay off long-term financial debts, improves the capital ratio and creates further financial scope for the implementation of its growth strategy. The clinics comprise a total of 1,550 beds.
Marseille said the transaction is part of its strategy to concentrate primarily on the health facilities business in future, and expanding its overall bed capacity to 12,000 beds by 2008. Once the strategy has been successfully implemented, the company's property portfolio will be distributed 30 pct between facilities owned by the company and 70 pct rented properties. Sphere: Related Content
Marseille-Kliniken AG said it has sold eight care sector properties and two rehabilitation clinics to the UK investor CIT Group Europe. Under the deal, Marseille-Kliniken will lease back the clinics long term. Marseille-Kliniken said the sale enables it to pay off long-term financial debts, improves the capital ratio and creates further financial scope for the implementation of its growth strategy. The clinics comprise a total of 1,550 beds.
Marseille said the transaction is part of its strategy to concentrate primarily on the health facilities business in future, and expanding its overall bed capacity to 12,000 beds by 2008. Once the strategy has been successfully implemented, the company's property portfolio will be distributed 30 pct between facilities owned by the company and 70 pct rented properties. Sphere: Related Content
Sunday, December 04, 2005
Hilton Hotels Completes GBP 400 Million Sale Manageback of 16 UK Hotels
The Jerusalem Post - November 27, 2005
Igal Ahouvi's Managed Hotels Unit Trust and Delek Real Estate have purchased 15 Hilton hotels in the United Kingdom and agreed to buy a 16th, for a total of roughly NIS 3.5 billion, a source close to the deal confirmed Thursday.
The source stated further that Ahouvi and Delek Real Estate CEO Ilik Rozanski were conducting negotiations toward bringing two or three more partners into the deal, and intend to divide it up evenly, with each party holding 20% or 25% of the value. They expect to recruit the partners within two weeks.
Hilton, which had announced Tuesday that it had completed the sale of the first 15 hotels to Managed Hotels, will keep its banner on the buildings, and continue to manage them as full Hilton hotels for at least the next 30 years, with two options for additional 10-year periods thereafter. Hilton also expects to earn around GBP5.4 million yearly from the management contracts on the original 15.
Funding for the initial purchase was provided by the Royal Bank of Scotland. The 16 hotels contain a total of 3,100 rooms. Hilton International intends to sell further hotels valued in excess of GBP400m., including the Hilton London Metropole and Hilton Birmingham Metropole. Sphere: Related Content
Igal Ahouvi's Managed Hotels Unit Trust and Delek Real Estate have purchased 15 Hilton hotels in the United Kingdom and agreed to buy a 16th, for a total of roughly NIS 3.5 billion, a source close to the deal confirmed Thursday.
The source stated further that Ahouvi and Delek Real Estate CEO Ilik Rozanski were conducting negotiations toward bringing two or three more partners into the deal, and intend to divide it up evenly, with each party holding 20% or 25% of the value. They expect to recruit the partners within two weeks.
Hilton, which had announced Tuesday that it had completed the sale of the first 15 hotels to Managed Hotels, will keep its banner on the buildings, and continue to manage them as full Hilton hotels for at least the next 30 years, with two options for additional 10-year periods thereafter. Hilton also expects to earn around GBP5.4 million yearly from the management contracts on the original 15.
Funding for the initial purchase was provided by the Royal Bank of Scotland. The 16 hotels contain a total of 3,100 rooms. Hilton International intends to sell further hotels valued in excess of GBP400m., including the Hilton London Metropole and Hilton Birmingham Metropole. Sphere: Related Content
Sale Near on £425 Million Portfolio of 180 Shell Service Stations in UK
RTÉ News - November 29, 2005
The Irish Times says that Dublin-based corporate finance house Ion Equity has entered the race to acquire the freehold interest in Shell's 180 filling stations in Britain.
The company that owns the portfolio, Octane, could cost as much as £425m. This includes debt of some £325m. The properties were put on the market last June by the owners of Octane, who acquired them from Shell in 2000. Octane is controlled by investors Robert and Vincent Tchenguiz and Ian and Richard Livingstone. The properties have an annual rent roll of about £26m under the terms of a leaseback arrangement with Shell that continues until 2017.
Selection of a preferred bidder is imminent and Ion Equity is said to be among the leading contenders for the portfolio. The others include the British property groups Miller Developments, Moorfield and REIT Asset Management, and the Isle of Man group Golfrate. Sphere: Related Content
The Irish Times says that Dublin-based corporate finance house Ion Equity has entered the race to acquire the freehold interest in Shell's 180 filling stations in Britain.
The company that owns the portfolio, Octane, could cost as much as £425m. This includes debt of some £325m. The properties were put on the market last June by the owners of Octane, who acquired them from Shell in 2000. Octane is controlled by investors Robert and Vincent Tchenguiz and Ian and Richard Livingstone. The properties have an annual rent roll of about £26m under the terms of a leaseback arrangement with Shell that continues until 2017.
Selection of a preferred bidder is imminent and Ion Equity is said to be among the leading contenders for the portfolio. The others include the British property groups Miller Developments, Moorfield and REIT Asset Management, and the Isle of Man group Golfrate. Sphere: Related Content
$170 Million Sale Leaseback Agreement Reached on 84 Circle K Stores
SEC Edgar Web Site - December 2, 2005
Commercial Net Lease Realty, Inc. has entered into an agreement with SSP Partners to acquire approximately 74 convenience store properties currently owned by Susser for approximately $170 million. The properties are primarily located in Texas and operated under the Circle K brand. Pursuant to the terms of the agreements, Susser will lease back the properties for a twenty-year initial term under triple-net leases.
Susser operates over 300 retail convenience stores in Texas and Oklahoma and distributes motor fuel to over 340 branded dealer units and 25 unattended units through its wholesale fuel division. Founded in 1938 by the Susser family, Susser has experienced dynamic growth over the last decade and is one of the largest convenience store operators in the United States.
The parties expect to complete the acquisitions by January 31, 2006, subject to customary closing conditions. The Company anticipates that some of these properties will be held as inventory properties and subsequently sold. Sphere: Related Content
Commercial Net Lease Realty, Inc. has entered into an agreement with SSP Partners to acquire approximately 74 convenience store properties currently owned by Susser for approximately $170 million. The properties are primarily located in Texas and operated under the Circle K brand. Pursuant to the terms of the agreements, Susser will lease back the properties for a twenty-year initial term under triple-net leases.
Susser operates over 300 retail convenience stores in Texas and Oklahoma and distributes motor fuel to over 340 branded dealer units and 25 unattended units through its wholesale fuel division. Founded in 1938 by the Susser family, Susser has experienced dynamic growth over the last decade and is one of the largest convenience store operators in the United States.
The parties expect to complete the acquisitions by January 31, 2006, subject to customary closing conditions. The Company anticipates that some of these properties will be held as inventory properties and subsequently sold. Sphere: Related Content
WE Vastgoed Completes EUR 28 Million Sale Leaseback of 19 Stores in the Netherlands
ING Real Estate Web Site - December 2, 2005
ING Real Estate acquired nineteen retail properties in prime locations in the Netherlands from WE Vastgoed for an amount of EUR 28 million. The total portfolio has a gross lettable area of 7.000 m2. Eight properties are leased long term to WE Netherlands as part of a sale and lease back transaction. Nine properties will be added to the ING Dutch Retail Fund. Ten properties have been acquired by the ING Real Estate Woning-Winkel Fonds III CV, which is expected to close on December 28, 2005. Sphere: Related Content
ING Real Estate acquired nineteen retail properties in prime locations in the Netherlands from WE Vastgoed for an amount of EUR 28 million. The total portfolio has a gross lettable area of 7.000 m2. Eight properties are leased long term to WE Netherlands as part of a sale and lease back transaction. Nine properties will be added to the ING Dutch Retail Fund. Ten properties have been acquired by the ING Real Estate Woning-Winkel Fonds III CV, which is expected to close on December 28, 2005. Sphere: Related Content
Speedy International Pursuing Sale Leaseback of Auto Service Center Portfolio
CCNMatthews - December 1, 2005
SMK Speedy International Inc. ("Speedy") announced the release of five million dollars of collateral held by its bank to the noteholders of its Senior Secured Subordinated Notes. These funds will be repaid to noteholders in early December.
Speedy has engaged a company to market the sale and leaseback of substantially all of its properties to commence earlier payment of the notes than required and, if successful, the company anticipates a transaction in the first quarter of 2006.
Speedy is a leading automobile service specialist with 90 company operated and 30 franchise stores under contracts with SMK Speedy International Inc. Sphere: Related Content
SMK Speedy International Inc. ("Speedy") announced the release of five million dollars of collateral held by its bank to the noteholders of its Senior Secured Subordinated Notes. These funds will be repaid to noteholders in early December.
Speedy has engaged a company to market the sale and leaseback of substantially all of its properties to commence earlier payment of the notes than required and, if successful, the company anticipates a transaction in the first quarter of 2006.
Speedy is a leading automobile service specialist with 90 company operated and 30 franchise stores under contracts with SMK Speedy International Inc. Sphere: Related Content
Microsoft Offices in Reading Sell for £104 Million
Freeman News / AFX - December 2, 2005
Mapeley Ltd, the property investment and outsourcing company, has bought three buildings on the Microsoft Campus in Reading for £104m. The sites were bought from a joint venture between British Land plc and Teachers Insurance and Annuity Association of America.
Jamie Hopkins, Chief Executive of , said: "This is an extremely exciting acquisition for us and one which combines great real estate with an ongoing relationship with a major occupier. This purchase brings the total invested by Mapeley this year to £478m." Sphere: Related Content
Mapeley Ltd, the property investment and outsourcing company, has bought three buildings on the Microsoft Campus in Reading for £104m. The sites were bought from a joint venture between British Land plc and Teachers Insurance and Annuity Association of America.
Jamie Hopkins, Chief Executive of , said: "This is an extremely exciting acquisition for us and one which combines great real estate with an ongoing relationship with a major occupier. This purchase brings the total invested by Mapeley this year to £478m." Sphere: Related Content
Friday, December 02, 2005
Japanese Govt May Embark Upon Massive Sale Leaseback Effort
The Times - November 29, 2005
A powerful committee of ministers, senior academics and business leaders is expected to tell the Japanese Government today to embark on a colossal 120 trillion yen (GBP 600 billion) sale of assets over the next ten years. As well as triggering an unprecedented bonanza sale of state financial assets, today's report by the Council for Economic and Fiscal Policy (CEFP) is tipped to include a recommendation that the Government extend the classes of assets up for grabs and also begin selling property.
Some of those assets would be strips of unused land dotted around the country, but more aggressive members of the committee are understood to be pushing for the sale of government buildings in the heart of the capital. One source close to the committee told The Times that the CEFP was even considering the idea of selling the major ministry buildings in the Kasumigaseki district. The prime sites would be sold to developers and leased back to the bureaucracy.
If the full range of the CEFP’s proposals were adopted and rolled into a new law on state-held assets, next year could see the start of a process that investors have been dreaming of for years, with desirable tracts of land in Central Tokyo suddenly becoming available to the private sector. Leading Japanese property developers, such as Mori Building and Mitsubishi Estate, almost certainly would be enthusiastic buyers, but, analysts say, the sale would also be likely to attract foreign capital of the sort wielded by the likes of Morgan Stanley and the Carlyle Group. Sphere: Related Content
A powerful committee of ministers, senior academics and business leaders is expected to tell the Japanese Government today to embark on a colossal 120 trillion yen (GBP 600 billion) sale of assets over the next ten years. As well as triggering an unprecedented bonanza sale of state financial assets, today's report by the Council for Economic and Fiscal Policy (CEFP) is tipped to include a recommendation that the Government extend the classes of assets up for grabs and also begin selling property.
Some of those assets would be strips of unused land dotted around the country, but more aggressive members of the committee are understood to be pushing for the sale of government buildings in the heart of the capital. One source close to the committee told The Times that the CEFP was even considering the idea of selling the major ministry buildings in the Kasumigaseki district. The prime sites would be sold to developers and leased back to the bureaucracy.
If the full range of the CEFP’s proposals were adopted and rolled into a new law on state-held assets, next year could see the start of a process that investors have been dreaming of for years, with desirable tracts of land in Central Tokyo suddenly becoming available to the private sector. Leading Japanese property developers, such as Mori Building and Mitsubishi Estate, almost certainly would be enthusiastic buyers, but, analysts say, the sale would also be likely to attract foreign capital of the sort wielded by the likes of Morgan Stanley and the Carlyle Group. Sphere: Related Content
Canadian Tire Enters $196 Million Sale Leaseback on Two Distribution Centers
Excite / Dow Jones - November 29, 2005
Canadian Tire Corp. (CTR.T) has reached agreement for the sale and leaseback of two distribution centers, one in Brampton, Ont. and the other in Calgary, to H&R Real Estate Investment Trust (CA:HR.UN) (HR.UN.T), for total proceeds of C$229 million (US$196 million).
In a news release, Canadian Tire said it will use the proceeds to fund the strategic initiatives outlined in its 2005-2009 Strategic Plan. In a separate release, H&R said Canadian Tire will lease back the properties for 21 years, with options to renew. The facilities comprise a total of 2.1 million square feet on 249 acres of land. H&R noted that the acquisition will be "accretive" to its unitholders. The acquisition increases the size of its portfolio by almost 6%.
Canadian Tire said Tuesday the agreement of purchase and sale is conditional on the completion of due diligence by H&R and approval of the purchase by competition authorities. The transaction is expected to close in January.
Canadian Tire added that it expects to realize a pretax gain of about C$50 million, which will be amortized over the initial 21-year term of the negotiated lease agreements. Sphere: Related Content
Canadian Tire Corp. (CTR.T) has reached agreement for the sale and leaseback of two distribution centers, one in Brampton, Ont. and the other in Calgary, to H&R Real Estate Investment Trust (CA:HR.UN) (HR.UN.T), for total proceeds of C$229 million (US$196 million).
In a news release, Canadian Tire said it will use the proceeds to fund the strategic initiatives outlined in its 2005-2009 Strategic Plan. In a separate release, H&R said Canadian Tire will lease back the properties for 21 years, with options to renew. The facilities comprise a total of 2.1 million square feet on 249 acres of land. H&R noted that the acquisition will be "accretive" to its unitholders. The acquisition increases the size of its portfolio by almost 6%.
Canadian Tire said Tuesday the agreement of purchase and sale is conditional on the completion of due diligence by H&R and approval of the purchase by competition authorities. The transaction is expected to close in January.
Canadian Tire added that it expects to realize a pretax gain of about C$50 million, which will be amortized over the initial 21-year term of the negotiated lease agreements. Sphere: Related Content
Thursday, December 01, 2005
Santa Clara R&D Building Net Leased to General Dynamics Sells for $72 Million
CoStar Group - October 14, 2005
Invesco Realty Advisors acquired a research and development building at 2305 Mission College Blvd. in Santa Clara, CA for $72 million, or about $200.50 per square foot. The seller was a joint venture of Pacific Coast Capital Partners and South Bay Construction & Development. The two-story building measures 359,000 square feet and is on a 15.78-acre campus. Nortel Networks Ltd. previously occupied the property until General Dynamics Corp., one of the largest defense contractors in the nation, recently signed an 11-year lease. Bill Palmer, John Sedar and Russ Arnold of The Palmer Group Inc. in Sacramento represented the seller. Sphere: Related Content
Invesco Realty Advisors acquired a research and development building at 2305 Mission College Blvd. in Santa Clara, CA for $72 million, or about $200.50 per square foot. The seller was a joint venture of Pacific Coast Capital Partners and South Bay Construction & Development. The two-story building measures 359,000 square feet and is on a 15.78-acre campus. Nortel Networks Ltd. previously occupied the property until General Dynamics Corp., one of the largest defense contractors in the nation, recently signed an 11-year lease. Bill Palmer, John Sedar and Russ Arnold of The Palmer Group Inc. in Sacramento represented the seller. Sphere: Related Content
Bail Investissement & GE to Acquire $1.9 Billion France Telecom Portfolio
PRNewswire-FirstCall - November 28, 2005
Bail Investissement, a Fonciere des Regions subsidiary, has approved the acquisition from the CGW consortium (Ixis, Whitehall and GE Real Estate) of Technical SAS, owner of a large portfolio of mixed use offices and light industrial properties leased to France Telecom.
A memorandum of understanding has been signed with CGW for the acquisition of Technical's entire capital. The properties in the portfolio represent a total of 1,034,000 square metres and are valued at EUR1.6 billion ($1.9 billion). They are leased to France Telecom under a lease expiring in 2011 at an annual rent of EUR124 million as of 31 December 2005, nearly half of which coming from Paris. The transaction is part of an investment policy that gives priority to teaming up with other investors to acquire property portfolios leased to first class covenants.
Bail Investissement and GE will sign a memorandum of understanding to enable GE to retain an interest in the portfolio. To this end, GE Real Estate France will purchase mandatory convertible bonds issued by Technical, which will eventually give it a direct stake of 32.5%. Technical's debt will be refinanced through a new EUR950 million bank loan. Sphere: Related Content
Bail Investissement, a Fonciere des Regions subsidiary, has approved the acquisition from the CGW consortium (Ixis, Whitehall and GE Real Estate) of Technical SAS, owner of a large portfolio of mixed use offices and light industrial properties leased to France Telecom.
A memorandum of understanding has been signed with CGW for the acquisition of Technical's entire capital. The properties in the portfolio represent a total of 1,034,000 square metres and are valued at EUR1.6 billion ($1.9 billion). They are leased to France Telecom under a lease expiring in 2011 at an annual rent of EUR124 million as of 31 December 2005, nearly half of which coming from Paris. The transaction is part of an investment policy that gives priority to teaming up with other investors to acquire property portfolios leased to first class covenants.
Bail Investissement and GE will sign a memorandum of understanding to enable GE to retain an interest in the portfolio. To this end, GE Real Estate France will purchase mandatory convertible bonds issued by Technical, which will eventually give it a direct stake of 32.5%. Technical's debt will be refinanced through a new EUR950 million bank loan. Sphere: Related Content
Giant TMC Completes $101 Million Sale Leaseback of Store Portfolio
Business Times (Malaysia) - December 2, 2005
The Employees Provident Fund (EPF) has bought all properties owned by hypermarket operator Giant TMC Bhd for RM382 million ($101 million). Giant, which has yearly retail sales of RM3 billion ($795 million), is a wholly-owned subsidiary of Hong Kong's Dairy Farm International Holdings Ltd. Under the agreement, EPF will buy all of Giant’s shares in its property subsidiary, Hartanah Progresif Sdn Bhd.
Hartanah Progresif holds all of Giant-owned properties comprising four hypermarkets, four supermarkets, 42 small shoplots and hostels and three vacant pieces of land. The properties will then be leased back to Giant for the next 10-15 years to ensure recurring income for the EPF. “The property investment gives a yield of 7.5 percent, which is more than the real estate investment trusts (REITs) return,” said Dairy Farm Giant Retail Sdn Bhd CEO John Coyle. REITs currently give a return of between 6 and 7 percent. Sphere: Related Content
The Employees Provident Fund (EPF) has bought all properties owned by hypermarket operator Giant TMC Bhd for RM382 million ($101 million). Giant, which has yearly retail sales of RM3 billion ($795 million), is a wholly-owned subsidiary of Hong Kong's Dairy Farm International Holdings Ltd. Under the agreement, EPF will buy all of Giant’s shares in its property subsidiary, Hartanah Progresif Sdn Bhd.
Hartanah Progresif holds all of Giant-owned properties comprising four hypermarkets, four supermarkets, 42 small shoplots and hostels and three vacant pieces of land. The properties will then be leased back to Giant for the next 10-15 years to ensure recurring income for the EPF. “The property investment gives a yield of 7.5 percent, which is more than the real estate investment trusts (REITs) return,” said Dairy Farm Giant Retail Sdn Bhd CEO John Coyle. REITs currently give a return of between 6 and 7 percent. Sphere: Related Content
Tuesday, November 29, 2005
Park Plaza Hotels Europe Near £350m Sale Leaseback of UK & European Hotels
CatererSearch / Caterer & Hotelkeeper - November 25, 2005
Park Plaza Hotels Europe is believed to be negotiating a £350m sale-and-leaseback deal for its UK and European assets. The hotel group is understood to be in discussions to sell its bricks-and-mortar assets to hotel investment company Farnsworth.
A spokesman for Park Plaza didn't deny the speculation, but would not "comment further at this stage". Park Plaza's portfolio currently includes 30 hotels, including two new four-star de luxe properties on London's South Bank, due to open in 2008 and 2010. Sphere: Related Content
Park Plaza Hotels Europe is believed to be negotiating a £350m sale-and-leaseback deal for its UK and European assets. The hotel group is understood to be in discussions to sell its bricks-and-mortar assets to hotel investment company Farnsworth.
A spokesman for Park Plaza didn't deny the speculation, but would not "comment further at this stage". Park Plaza's portfolio currently includes 30 hotels, including two new four-star de luxe properties on London's South Bank, due to open in 2008 and 2010. Sphere: Related Content
Monday, November 28, 2005
Land Securities To Buy DEFRA Headquarters in London for GBP 164.2 Million
Sunday Times - November 28, 2005
Land Securities has announced that it has exchanged contracts for the freehold purchase of Ashdown House, Victoria Street, London SW1 for GBP 164.2 million, representing an initial yield of 5.8%. The 227,000 square foot office and retail property, purchased from Golfrate, holds a prominent position in Victoria and is fully let to the Government (DEFRA HQ) until June 2017. The ground floor retail holds various tenants including Dixons and Boots. Land Securities was advised by Franc Warwick. Sphere: Related Content
Land Securities has announced that it has exchanged contracts for the freehold purchase of Ashdown House, Victoria Street, London SW1 for GBP 164.2 million, representing an initial yield of 5.8%. The 227,000 square foot office and retail property, purchased from Golfrate, holds a prominent position in Victoria and is fully let to the Government (DEFRA HQ) until June 2017. The ground floor retail holds various tenants including Dixons and Boots. Land Securities was advised by Franc Warwick. Sphere: Related Content
Sunday, November 27, 2005
Roal & SunAlliance Seeking £36 Million Sale Leaseback of Headquarters in Liverpool
The Liverpool Daily Post & Echo reports that ROYAL & SunAlliance is asking £36 million for its New Hall Place headquarters in Liverpool. The insurer intends to lease back about 290,000 square feet of the 390,000 square foot 1970s modernist building.
Sphere: Related Content
Quintain Estates Agrees to Sale Leaseback of London Headquarters
Estates Gazette Interactive has reported that Quintain Estate's headquarters at 16 Grosvenor Street, W1, has been sold through Savills for £14.6 million. The property aas leased back to Quintain for 15 years with a break after year 10. Private clients of Cushman & Wakefield Healey & Baker acquired the 15,700 square foot building at a 4.5% yield. Quintain bought the long leasehold interest last year for £8m and carried out a major refurbishment.
Sphere: Related Content
German Retailer Nearing 500 Million Euro Sale Leaseback of Property Portfolio
Forbes / AFX / Handelsblatt - November 23, 2005
Metro AG is expected to sell the real estate assets of do-it-yourself unit Praktiker AG for around 500 mln eur, Handelsblatt said. It said Metro will select the successful buyer in the next three weeks. Metro has already shortened the list of bidders, with only Deutsche Bank AG and the London-based financial investor Dawnay Day as the last two interested companies remaining. The two have submit bids of between 500 mln eur and 520 mln.
Praktiker is Europe's fourth-biggest do-it-yourself retailer behind the U.K.'s Kingfisher Plc, France's Leroy Merlin and Germany's OBI, owned by retailer Tengelmann Group. On November 22 Metro AG raised 500 million euros ($587 million) when it sold nearly 60% of the firm in the first IPO of a German retailer in more than four years. Sphere: Related Content
Metro AG is expected to sell the real estate assets of do-it-yourself unit Praktiker AG for around 500 mln eur, Handelsblatt said. It said Metro will select the successful buyer in the next three weeks. Metro has already shortened the list of bidders, with only Deutsche Bank AG and the London-based financial investor Dawnay Day as the last two interested companies remaining. The two have submit bids of between 500 mln eur and 520 mln.
Praktiker is Europe's fourth-biggest do-it-yourself retailer behind the U.K.'s Kingfisher Plc, France's Leroy Merlin and Germany's OBI, owned by retailer Tengelmann Group. On November 22 Metro AG raised 500 million euros ($587 million) when it sold nearly 60% of the firm in the first IPO of a German retailer in more than four years. Sphere: Related Content
Vendex KBB Enters One Billion Euro Sale Leaseback of 73 Stores
Cinven Web Site - November 25, 2005
Vendex KBB is pleased to announce the sale of its property portfolio to a consortium arranged by IEF Capital N.V., a joint venture between IEF Nederland B.V. and Bouwfonds Asset Management B.V., a 100% subsidiary of ABN AMRO Bouwfonds N.V. IEF Capital Delta NV and PGGM are major participants in the consortium. PGGM, one of the largest Dutch pension funds, is also a co-financier through inflation-linked products. The asset management of the real estate portfolio will be performed by Bouwfonds Asset Management, which is involved in financing the transaction as well.
With this transaction, Vendex KBB is entering into a long term sale-and-lease-back agreement for 73 stores and other properties occupied by HEMA, V&D and Bijenkorf, which will provide these formats with long term stability and operational flexibility to continue to perform successfully in the Dutch retail market. For Vendex KBB this is a significant milestone in the implementation of its strategy to focus on its core retail activities.
Vendex KBB was advised by Lazard and CB Richard Ellis.
(The Financial Times reported that the 6 million square foot portfolio is located entirely within the Netherlands and consists of Vendex's department stores. The portfolio was reportedly leased back to Vendex KBB under 20-year leases. Vendex was taken private by Kohlberg Kravis Roberts which has since sold stakes to Permira and Cinven, private equiity firms. A Dutch group, Alpinvest, owns a small stake.) Sphere: Related Content
Vendex KBB is pleased to announce the sale of its property portfolio to a consortium arranged by IEF Capital N.V., a joint venture between IEF Nederland B.V. and Bouwfonds Asset Management B.V., a 100% subsidiary of ABN AMRO Bouwfonds N.V. IEF Capital Delta NV and PGGM are major participants in the consortium. PGGM, one of the largest Dutch pension funds, is also a co-financier through inflation-linked products. The asset management of the real estate portfolio will be performed by Bouwfonds Asset Management, which is involved in financing the transaction as well.
With this transaction, Vendex KBB is entering into a long term sale-and-lease-back agreement for 73 stores and other properties occupied by HEMA, V&D and Bijenkorf, which will provide these formats with long term stability and operational flexibility to continue to perform successfully in the Dutch retail market. For Vendex KBB this is a significant milestone in the implementation of its strategy to focus on its core retail activities.
Vendex KBB was advised by Lazard and CB Richard Ellis.
(The Financial Times reported that the 6 million square foot portfolio is located entirely within the Netherlands and consists of Vendex's department stores. The portfolio was reportedly leased back to Vendex KBB under 20-year leases. Vendex was taken private by Kohlberg Kravis Roberts which has since sold stakes to Permira and Cinven, private equiity firms. A Dutch group, Alpinvest, owns a small stake.) Sphere: Related Content
Little Chef Completes Sale Leaseback of 65 Restaurants
CatererSearch.com - November 21, 2005
The People's Restaurant Group Ltd took ownership of Little Chef Restaurants and the Little Chef brand on 20th October 2005. The company purchased the restaurant chain from Travelodge Hotels Ltd, a company backed by Permira Investment Fund Managers. Little Chef will continue to trade under its brand name and as Britain's largest roadside restaurant chain.
Little Chef has appointed the team behind BP's Wild Bean cafe to roll out its new "Bean Here" grab-and-go offer. The GBP 5 million roll-out, which will create 1,000 jobs, will start at the rate of four per week in January 2006. It is being funded by the sale-and-leaseback of 65 Little Chef sites.
Wosskow and co-owner Simon Heath also plan to spend GBP 1 million on changing roadside signage and adding a minimum of three new signs per unit across the 250-strong estate. Sphere: Related Content
The People's Restaurant Group Ltd took ownership of Little Chef Restaurants and the Little Chef brand on 20th October 2005. The company purchased the restaurant chain from Travelodge Hotels Ltd, a company backed by Permira Investment Fund Managers. Little Chef will continue to trade under its brand name and as Britain's largest roadside restaurant chain.
Little Chef has appointed the team behind BP's Wild Bean cafe to roll out its new "Bean Here" grab-and-go offer. The GBP 5 million roll-out, which will create 1,000 jobs, will start at the rate of four per week in January 2006. It is being funded by the sale-and-leaseback of 65 Little Chef sites.
Wosskow and co-owner Simon Heath also plan to spend GBP 1 million on changing roadside signage and adding a minimum of three new signs per unit across the 250-strong estate. Sphere: Related Content
APN European Retail Trust Pays $251 Million Euro for 23 Net Leased Assets
The Australian - November 16, 2005
APN European Retail Trust has announced that it will add 23 assets to its portfolio, lifting its total asset value to nearly $500 million. The total value of the 23 assets is $251.4 million.
'It is the only (Australian) stock which offers exposure to European retail properties. The new assets have long-term and quality lease covenants,' he said. The assets - 16 in Greece and seven in Germany - were purchased from two unidentified vendors, at yields of 6.9 per cent and 7.8 per cent, respectively, after acquisition costs. Mr Boothman said the properties in Greece were leased to one of the world's largest supermarket chains, Carrefour, from France, with an average lease expiry of 17 years. The German properties were leased to Roller, a warehouse-style furniture retailer, and carried an average lease of 10.2 years. The acquisitions are to be settled next month. Mr Boothman said the total transaction cost to be funded by debt and equity would be $276 million.
APN will raise about $131.2 million to fund the latest acquisitions through a non-renounceable entitlement offer of nine fully paid units for 13 partly paid units, at an issue price of $1.04 per fully paid unit. The balance will come from debt facilities. The trust would have a gearing of 54-55 per cent.
The vehicle, listed in July, already has six assets - four shopping centres in Spain and two in Italy. Mr Boothman said the trust would continue to look for acquisitions across Europe, which remained under-supplied in terms of shopping centres. APN said partly paid units in the trust had had a strong start since its initial public offering in July. The units are showing around 13 per cent capital growth, on top of the IPO forecast annualised income entitlement of 9 percent. Sphere: Related Content
APN European Retail Trust has announced that it will add 23 assets to its portfolio, lifting its total asset value to nearly $500 million. The total value of the 23 assets is $251.4 million.
'It is the only (Australian) stock which offers exposure to European retail properties. The new assets have long-term and quality lease covenants,' he said. The assets - 16 in Greece and seven in Germany - were purchased from two unidentified vendors, at yields of 6.9 per cent and 7.8 per cent, respectively, after acquisition costs. Mr Boothman said the properties in Greece were leased to one of the world's largest supermarket chains, Carrefour, from France, with an average lease expiry of 17 years. The German properties were leased to Roller, a warehouse-style furniture retailer, and carried an average lease of 10.2 years. The acquisitions are to be settled next month. Mr Boothman said the total transaction cost to be funded by debt and equity would be $276 million.
APN will raise about $131.2 million to fund the latest acquisitions through a non-renounceable entitlement offer of nine fully paid units for 13 partly paid units, at an issue price of $1.04 per fully paid unit. The balance will come from debt facilities. The trust would have a gearing of 54-55 per cent.
The vehicle, listed in July, already has six assets - four shopping centres in Spain and two in Italy. Mr Boothman said the trust would continue to look for acquisitions across Europe, which remained under-supplied in terms of shopping centres. APN said partly paid units in the trust had had a strong start since its initial public offering in July. The units are showing around 13 per cent capital growth, on top of the IPO forecast annualised income entitlement of 9 percent. Sphere: Related Content
Saturday, November 26, 2005
IPD Study Shows Substantial Yield Differences Across Europe
IPD Web Site - November 22, 2005
A study by IPD shows Substantial variations in the pricing of investment property remained across Europe at the end of 2004 despite a benign environment of low inflation and low interest rates. The research, sponsored by Arlington, DTZ and MEAG shows results for twelve European countries across the four main sectors: office, retail, industrial and residential. Sphere: Related Content
A study by IPD shows Substantial variations in the pricing of investment property remained across Europe at the end of 2004 despite a benign environment of low inflation and low interest rates. The research, sponsored by Arlington, DTZ and MEAG shows results for twelve European countries across the four main sectors: office, retail, industrial and residential. Sphere: Related Content
Homburg Invest to Buy Four Net Leased Properties for $163 Million
Homburg Invest Web Site - November 24, 2005
Homburg Invest has announced the planned purchase of four large commercial properties in The Netherlands in the first quarter of 2006, subject to the finalization of its due diligence. The original agreement in principle on all of this portfolio was first announced on June 23, 2005 and closing on this transaction was expected to take place o n November 15, 2005.
The four commercial properties include the KPN Telecom Head Office in Groningen, the Phillips Lighting Headquarters and Research facilities in Eindhoven and two David Lloyd facilities in Rotterdam. All four properties are leased by world class, triple A public companies on a long -term lease basis. The aggregate cost to Homburg Invest for these properties will amount to approximately CAD $196 million (EUR €140 million or $163 million) and will be financed by assumption of existing debt of CAD $147 million (EUR €105 million), and shares of Homburg Invest (subject to TSX approval) and cash totalling CAD $49 million (EUR €35 million). Sphere: Related Content
Homburg Invest has announced the planned purchase of four large commercial properties in The Netherlands in the first quarter of 2006, subject to the finalization of its due diligence. The original agreement in principle on all of this portfolio was first announced on June 23, 2005 and closing on this transaction was expected to take place o n November 15, 2005.
The four commercial properties include the KPN Telecom Head Office in Groningen, the Phillips Lighting Headquarters and Research facilities in Eindhoven and two David Lloyd facilities in Rotterdam. All four properties are leased by world class, triple A public companies on a long -term lease basis. The aggregate cost to Homburg Invest for these properties will amount to approximately CAD $196 million (EUR €140 million or $163 million) and will be financed by assumption of existing debt of CAD $147 million (EUR €105 million), and shares of Homburg Invest (subject to TSX approval) and cash totalling CAD $49 million (EUR €35 million). Sphere: Related Content
Wednesday, November 23, 2005
Barclays Global Investors Agrees to New Headquarters Building in San Francisco
CoStar Group - November 21, 2005
Equity Office Properties Trust (NYSE:EOP) plans to begin construction next March on its 10-story, 335,000-square-foot Foundry Square I office building in downtown San Francisco after signing Barclays Global Investors to a 321,545-square-foot, long-term lease. CBRE represented Barclays in the deal.
The new building, which will be located at 400 Howard Street in the South of Market St. submarket, will serve as the investment advisor’s new headquarters when it is completed in December 2007. Barclays has been based in San Francisco since 1971 and has more than 1,000 employees in the area. Its headquarters is currently located in 45 Fremont Street, a 34-story, 580,000-square-foot office tower owned by Shorenstein and MetLife. The new building will be the third of four 10-story office buildings planned for site fronting the busy intersection of 1st and Howard streets in downtown San Francisco.
Billed as one of the world’s largest asset managers, Barclays Global Investors had more than $1.4 trillion in assets under management as of June 30, 2005, for more than 2,700 clients in 48 countries. The firm is owned by Barclays PLC. Sphere: Related Content
Equity Office Properties Trust (NYSE:EOP) plans to begin construction next March on its 10-story, 335,000-square-foot Foundry Square I office building in downtown San Francisco after signing Barclays Global Investors to a 321,545-square-foot, long-term lease. CBRE represented Barclays in the deal.
The new building, which will be located at 400 Howard Street in the South of Market St. submarket, will serve as the investment advisor’s new headquarters when it is completed in December 2007. Barclays has been based in San Francisco since 1971 and has more than 1,000 employees in the area. Its headquarters is currently located in 45 Fremont Street, a 34-story, 580,000-square-foot office tower owned by Shorenstein and MetLife. The new building will be the third of four 10-story office buildings planned for site fronting the busy intersection of 1st and Howard streets in downtown San Francisco.
Billed as one of the world’s largest asset managers, Barclays Global Investors had more than $1.4 trillion in assets under management as of June 30, 2005, for more than 2,700 clients in 48 countries. The firm is owned by Barclays PLC. Sphere: Related Content
Sunday, November 20, 2005
Germany Considering Large Scale Sale Leasback of Government Property
Berliner Zeiting has reported that Germany's new ruling coalition of conservatives and Social Democrats is considering the sale and leaseback of federal government real estate to finance part of a 25 billion euros investment programme. The paper cited unidentified coalition sources as saying the properties would include those housing ministries, the chancellery, some federal agencies and army barracks. A similar initiative was recently completed in the conservative-ruled state of Hesse, the paper reported.
Sphere: Related Content
Saturday, November 19, 2005
Lexington JV Acquires Accor North America HQ for $32.0 Million
PRNewswire-FirstCall - November 11, 2005
Lexington Corporate Properties Trust (NYSE: LXP) announced that one of its joint venture programs acquired an office facility in Carrollton, Texas for approximately $32.0 million. The facility is a two-story office building containing approximately 138,443 net rentable square feet on a parcel containing approximately 8.2 acres. The facility is leased to Motel 6 Operating, L.P. under the terms of a modified gross lease through July 31, 2015. The obligations of Motel 6 Operating, L.P. under the lease are unconditionally guaranteed by Accor, S.A.
In connection with the acquisition of the facility, Lexington's joint venture program obtained non-recourse first mortgage financing in the original principal amount of approximately $20.8 million. The loan bears interest at a fixed rate of 5.274% and matures on or about July 1, 2015. Sphere: Related Content
Lexington Corporate Properties Trust (NYSE: LXP) announced that one of its joint venture programs acquired an office facility in Carrollton, Texas for approximately $32.0 million. The facility is a two-story office building containing approximately 138,443 net rentable square feet on a parcel containing approximately 8.2 acres. The facility is leased to Motel 6 Operating, L.P. under the terms of a modified gross lease through July 31, 2015. The obligations of Motel 6 Operating, L.P. under the lease are unconditionally guaranteed by Accor, S.A.
In connection with the acquisition of the facility, Lexington's joint venture program obtained non-recourse first mortgage financing in the original principal amount of approximately $20.8 million. The loan bears interest at a fixed rate of 5.274% and matures on or about July 1, 2015. Sphere: Related Content
Boyne USA Agrees to $47 Million Sale Leaseback of Resort Properties
Commercial Property News - November 15, 2005
Boyne USA Inc. and CNL Income Properties Inc. have agreed to a $47.5 million sale-leaseback transaction involving two lifestyle properties, Cypress Mountain ski resort, in British Columbia, and the scenic Gatlinburg Ski Lift, in Gatlinburg, Tenn.
This is the first sale-leaseback the family-run Boyne USA has completed in its 57-year history. Boyne USA is considered the largest operator of four-season resorts in North America.
CNL Income Properties is pursuing diversity in the lifestyle and recreation sector, targeting such properties as golf courses, ski resorts, marinas, campgrounds, merchandise marts, entertainment centers and attractions. Since December 2004, it has acquired an estimated $489 million in lifestyle property, including a recent deal with Great Wolf Resorts worth $114.5 million. Sphere: Related Content
Boyne USA Inc. and CNL Income Properties Inc. have agreed to a $47.5 million sale-leaseback transaction involving two lifestyle properties, Cypress Mountain ski resort, in British Columbia, and the scenic Gatlinburg Ski Lift, in Gatlinburg, Tenn.
This is the first sale-leaseback the family-run Boyne USA has completed in its 57-year history. Boyne USA is considered the largest operator of four-season resorts in North America.
CNL Income Properties is pursuing diversity in the lifestyle and recreation sector, targeting such properties as golf courses, ski resorts, marinas, campgrounds, merchandise marts, entertainment centers and attractions. Since December 2004, it has acquired an estimated $489 million in lifestyle property, including a recent deal with Great Wolf Resorts worth $114.5 million. Sphere: Related Content
Thursday, November 17, 2005
SBC Completes $338 Million Sale Leaseback of Office Campus Near Chicago
Chicago Tribune - November 16, 2005
In what could be the largest suburban office building transaction of the year, a real estate investment trust advised by Inland Real Estate Group has purchased the Hoffman Estates campus of SBC Communications Inc. in a $338 million sale/leaseback deal. As a part of a long-term agreement the telecommunications giant will occupy the top-quality, three-building complex, which was once the headquarters of Ameritech Corp.
Renamed SBC Center after the San Antonio-based company's 1999 acquisition of Ameritech, the 152-acre site is along the Northwest Tollway near Barrington Road. The buildings were constructed between 1991 and 1992. The campus totals 1.69 million square feet, including common areas such as hallways. The price is about $200 a square foot. About 1.3 million square feet of space is contained in a single, four-story structure. Not included in the deal is about 80 acres of vacant land that SBC continues to own.
SBC signed an initial 11-year lease. But with renewal options, the lease could run until 2045, Inland said. In the first year, SBC will pay $22.7 million in rent, Inland said. As a result, Inland's initial return would be 6.7 percent, a low yield that reflects SBC's creditworthiness. The price surpasses the $257 million paid this year by Indianapolis-based Duke Realty Corp. for nearly 1.4 million square feet of office space near O'Hare International Airport.
The SBC transaction is the second big suburban office acquisition that Oak Brook-based Inland has made this year. In July another Inland-managed REIT paid $220 million for the Lincolnshire headquarters of human resources firm Hewitt Associates Inc. Including the SBC transaction, Inland says it has acquired more than $4.4 billion in real estate assets this year, making the firm one of the largest property buyers in the nation, managing a $13 billion portfolio. Sphere: Related Content
In what could be the largest suburban office building transaction of the year, a real estate investment trust advised by Inland Real Estate Group has purchased the Hoffman Estates campus of SBC Communications Inc. in a $338 million sale/leaseback deal. As a part of a long-term agreement the telecommunications giant will occupy the top-quality, three-building complex, which was once the headquarters of Ameritech Corp.
Renamed SBC Center after the San Antonio-based company's 1999 acquisition of Ameritech, the 152-acre site is along the Northwest Tollway near Barrington Road. The buildings were constructed between 1991 and 1992. The campus totals 1.69 million square feet, including common areas such as hallways. The price is about $200 a square foot. About 1.3 million square feet of space is contained in a single, four-story structure. Not included in the deal is about 80 acres of vacant land that SBC continues to own.
SBC signed an initial 11-year lease. But with renewal options, the lease could run until 2045, Inland said. In the first year, SBC will pay $22.7 million in rent, Inland said. As a result, Inland's initial return would be 6.7 percent, a low yield that reflects SBC's creditworthiness. The price surpasses the $257 million paid this year by Indianapolis-based Duke Realty Corp. for nearly 1.4 million square feet of office space near O'Hare International Airport.
The SBC transaction is the second big suburban office acquisition that Oak Brook-based Inland has made this year. In July another Inland-managed REIT paid $220 million for the Lincolnshire headquarters of human resources firm Hewitt Associates Inc. Including the SBC transaction, Inland says it has acquired more than $4.4 billion in real estate assets this year, making the firm one of the largest property buyers in the nation, managing a $13 billion portfolio. Sphere: Related Content
Sunday, November 13, 2005
Club Med Agrees to 100 Million Euro Sale Leaseback of Four Resort Hotels
Times Online - November 11, 2005
Club Mediterrane has agreed to a 100 million euro sale leaseback of four resort hotels with Heron International. The off-market deal was brokered by CB Richard Ellis. The properties are located in the prime holiday destinations of Val Thorens and Tignes Val Claret in the French Alps, Cadiz in southern Spain and Sicily. The hotels incorporate a total of 1,318 rooms with an average occupancy rate of over 90 percent. The sites each have land for further development and each of the properties are on long leases with annual indexation.
Gerald Ronson, chief executive of Heron, said that the properties were a valuable addition to the company's expanding European leisure portfolio. Heron has concentrated on developing giant leisure and entertainment centres in Europe, under the brand Heron City. Sphere: Related Content
Club Mediterrane has agreed to a 100 million euro sale leaseback of four resort hotels with Heron International. The off-market deal was brokered by CB Richard Ellis. The properties are located in the prime holiday destinations of Val Thorens and Tignes Val Claret in the French Alps, Cadiz in southern Spain and Sicily. The hotels incorporate a total of 1,318 rooms with an average occupancy rate of over 90 percent. The sites each have land for further development and each of the properties are on long leases with annual indexation.
Gerald Ronson, chief executive of Heron, said that the properties were a valuable addition to the company's expanding European leisure portfolio. Heron has concentrated on developing giant leisure and entertainment centres in Europe, under the brand Heron City. Sphere: Related Content
Saturday, November 12, 2005
Dresdner Bank Close to 2 Billion Euro Sale Leaseback
Forbes /AFX News Limited - November 9, 2005
US private equity firms Fortress and Carlyle, banking giant Citigroup Inc and three other parties have submitted bids for 300 properties belonging to Allianz AG's banking unit Dresdner Bank AG, Financial Times Deutschland reported, citing sources within the financial industry.
Dresdner Bank has received offers of up to 2 bln eur for about 300 of its offices and bank branches in what would be the largest ever sale-and-leaseback project by a German company, the newspaper said.
'The sale process is proceeding according to plan,' a spokesman for Dresdner Bank told the newspaper, while declining to further comment. The newspaper said the sale is expected to be completed by early 2006. Sphere: Related Content
US private equity firms Fortress and Carlyle, banking giant Citigroup Inc and three other parties have submitted bids for 300 properties belonging to Allianz AG's banking unit Dresdner Bank AG, Financial Times Deutschland reported, citing sources within the financial industry.
Dresdner Bank has received offers of up to 2 bln eur for about 300 of its offices and bank branches in what would be the largest ever sale-and-leaseback project by a German company, the newspaper said.
'The sale process is proceeding according to plan,' a spokesman for Dresdner Bank told the newspaper, while declining to further comment. The newspaper said the sale is expected to be completed by early 2006. Sphere: Related Content
Franklin Electronic Publishers Agrees to Sale Leaseback of NJ Headquarters
Philadelphia Business Journal - November 9, 2005
Franklin Electronic Publishers, Inc. said Wednesday it has agreed to sell its Burlington City, N.J., headquarters for $10.3 million and lease it back for 10 years. The electronic book manufacturer will realize a $4.8 million gain on the sale and will amortize the gain over the course of the lease, which initially requires Franklin to pay $736,000 in rent per year.
Franklin (AMEX: FEP) will use $2.4 million from the sale to retire its preferred stock. It will use the rest for working capital. The sale must be approved by Franklin's board of directors. If it is, Franklin expects it to close this quarter. Sphere: Related Content
Franklin Electronic Publishers, Inc. said Wednesday it has agreed to sell its Burlington City, N.J., headquarters for $10.3 million and lease it back for 10 years. The electronic book manufacturer will realize a $4.8 million gain on the sale and will amortize the gain over the course of the lease, which initially requires Franklin to pay $736,000 in rent per year.
Franklin (AMEX: FEP) will use $2.4 million from the sale to retire its preferred stock. It will use the rest for working capital. The sale must be approved by Franklin's board of directors. If it is, Franklin expects it to close this quarter. Sphere: Related Content
Friday, November 11, 2005
Spectrum Brands Close to 810,000 SF Warehouse Deal Near Atlanta
CoStar Group - November 10, 2005
Eighteen months after relocating to Atlanta and six months after dropping the Rayovac Corp. name, Spectrum Brands Inc. (NYSE: SPC) is close to making a major space commitment in Jackson County.
The Atlanta-based consumer products giant, represented by consultant Deloitte & Touche, is in negotiations to lease a huge warehouse at Walnut Fork Distribution Center in the city of Jefferson. The 810,000-square-foot building was co-developed by a partnership of J.W. Rooker & Associates and Collier Properties and has been sitting empty since its completion earlier this year.
Earlier this fall, the building was rumored to be on the sales block, marketed by industrial investment sales guru Chris Riley and his team at CB Richard Ellis. Apparently, the sales process was halted once it became clear that the building would land one of the large deals floating around the Northeast submarket. Rooker President Dan Pattillo would not comment on a pending deal for the building or whether it was slated to be sold. Calls to Spectrum Brands were not returned by press time.
The Spectrum lease would be the third large deal to land in the Northeast in recent weeks. Progressive Lighting is putting the final touches on its 700,000 square feet (with expansion room to 1 million square feet) with Duke Realty Corp. (NYSE: DRE) at Park 85 in Braselton, and computer seller Systemax Inc. is in negotiations for approximately 500,000 square feet with IDI at Hamilton Mill Business Center in Gwinnett County. Sphere: Related Content
Eighteen months after relocating to Atlanta and six months after dropping the Rayovac Corp. name, Spectrum Brands Inc. (NYSE: SPC) is close to making a major space commitment in Jackson County.
The Atlanta-based consumer products giant, represented by consultant Deloitte & Touche, is in negotiations to lease a huge warehouse at Walnut Fork Distribution Center in the city of Jefferson. The 810,000-square-foot building was co-developed by a partnership of J.W. Rooker & Associates and Collier Properties and has been sitting empty since its completion earlier this year.
Earlier this fall, the building was rumored to be on the sales block, marketed by industrial investment sales guru Chris Riley and his team at CB Richard Ellis. Apparently, the sales process was halted once it became clear that the building would land one of the large deals floating around the Northeast submarket. Rooker President Dan Pattillo would not comment on a pending deal for the building or whether it was slated to be sold. Calls to Spectrum Brands were not returned by press time.
The Spectrum lease would be the third large deal to land in the Northeast in recent weeks. Progressive Lighting is putting the final touches on its 700,000 square feet (with expansion room to 1 million square feet) with Duke Realty Corp. (NYSE: DRE) at Park 85 in Braselton, and computer seller Systemax Inc. is in negotiations for approximately 500,000 square feet with IDI at Hamilton Mill Business Center in Gwinnett County. Sphere: Related Content
Thursday, November 10, 2005
Taiga Building Products Agrees to Sale Leaseback of 17 Distribution Facilities
Taiga Building Products Ltd. Web Site - November 7, 2005
Taiga Building Products Ltd. announced today that it has signed an agreement with 603048 B.C. Ltd. for the sale and leaseback of 17 of Taiga's distribution and manufacturing facilities. Upon closing, Taiga will lease each of these facilities from the purchaser for initial periods of up to 20 years. The aggregate purchase price to be paid to Taiga at closing is approximately $52,000,000.
The closing of the transaction is subject to Taiga and the purchaser settling the terms of the leases and other customary purchaser's due diligence conditions. The completion of the transaction is expected to occur in February, 2006. Net proceeds of the transaction are expected to be used for strategic and/or other purposes.
Taiga is Canada's largest independent distributor of building products, by revenue. Sphere: Related Content
Taiga Building Products Ltd. announced today that it has signed an agreement with 603048 B.C. Ltd. for the sale and leaseback of 17 of Taiga's distribution and manufacturing facilities. Upon closing, Taiga will lease each of these facilities from the purchaser for initial periods of up to 20 years. The aggregate purchase price to be paid to Taiga at closing is approximately $52,000,000.
The closing of the transaction is subject to Taiga and the purchaser settling the terms of the leases and other customary purchaser's due diligence conditions. The completion of the transaction is expected to occur in February, 2006. Net proceeds of the transaction are expected to be used for strategic and/or other purposes.
Taiga is Canada's largest independent distributor of building products, by revenue. Sphere: Related Content
Lockheed Enters Sale Leaseback of Industrial Complex in Akron, OH
The Beacon Journal - November 8, 2005
Lockheed Martin has sold its Akron properties -- but not the iconic Airdock -- off Massillon Road to a California-based real estate group that is one of Ohio's largest property owners and also a principal in Canal Place.
Lockheed Martin, with its 500 Akron employees, isn't going anywhere, though. It is leasing back space in the massive complex next to Akron Fulton International Airport, near the Rubber Bowl and Derby Downs, for another seven years. The sale of 12 parcels to Industrial Realty Group subsidiary LMA Commerce Ltd., valued at about $12.5 million according to county records, closed on Friday.
The deal brings to closure Lockheed Martin's announcement in May, when the defense contractor said it was negotiating to sell the Akron property it acquired in 1996 and lease back the space. Lockheed Martin said it will keep the Airdock, Akron's largest landmark, where it is developing its proposed High Altitude Airship program.
Industrial Realty Group wants to retain the 2.1 million-square-foot property as a significant employment center for manufacturing, warehousing and office space, said Stuart Lichter, founder and managing partner of IRG. The company specializes in finding ways to reuse closed properties, including sites such as Canal Place.
"Our plan is to work with existing tenants," he said. In addition, IRG is negotiating with other businesses to move into the available 500,000 to 800,000 square feet of space, he said.
The sale allows Lockheed Martin's Maritime Systems & Sensors division to focus on its business at the site and not have to worry about being a landlord, Lichter said. Sphere: Related Content
Lockheed Martin has sold its Akron properties -- but not the iconic Airdock -- off Massillon Road to a California-based real estate group that is one of Ohio's largest property owners and also a principal in Canal Place.
Lockheed Martin, with its 500 Akron employees, isn't going anywhere, though. It is leasing back space in the massive complex next to Akron Fulton International Airport, near the Rubber Bowl and Derby Downs, for another seven years. The sale of 12 parcels to Industrial Realty Group subsidiary LMA Commerce Ltd., valued at about $12.5 million according to county records, closed on Friday.
The deal brings to closure Lockheed Martin's announcement in May, when the defense contractor said it was negotiating to sell the Akron property it acquired in 1996 and lease back the space. Lockheed Martin said it will keep the Airdock, Akron's largest landmark, where it is developing its proposed High Altitude Airship program.
Industrial Realty Group wants to retain the 2.1 million-square-foot property as a significant employment center for manufacturing, warehousing and office space, said Stuart Lichter, founder and managing partner of IRG. The company specializes in finding ways to reuse closed properties, including sites such as Canal Place.
"Our plan is to work with existing tenants," he said. In addition, IRG is negotiating with other businesses to move into the available 500,000 to 800,000 square feet of space, he said.
The sale allows Lockheed Martin's Maritime Systems & Sensors division to focus on its business at the site and not have to worry about being a landlord, Lichter said. Sphere: Related Content
Sephora Signs 12 Year Warehouse Lease
Commercial Property News - November 03, 2005
In one of the largest industrial transactions in the Mid-Atlantic this year, a limited-partnership operated by Philadelphia-based BPG Properties Ltd. has leased a 316,524-square-foot distribution center in Belcamp, Md., to beauty supply store Sephora USA Inc. After completing the transaction, BPG immediately listed the property, which it bought only two years ago, for sale with Trammell Crow Co. Sephora expanded into space formerly occupied by a third-party logistics firm with declining space needs. The building could sell in the $22-to-$24 million range.
Cushman & Wakefield Inc. represented Sephora in the lease negotiations, which expanded Sephora's existing 200,000-square-foot lease to encompass the entire building and extended its lease to a 12-year term. A division of Moet Hennessey Louis Vuitton, Sephora operates 110 beauty products stores in the U.S. and Can" Sphere: Related Content
In one of the largest industrial transactions in the Mid-Atlantic this year, a limited-partnership operated by Philadelphia-based BPG Properties Ltd. has leased a 316,524-square-foot distribution center in Belcamp, Md., to beauty supply store Sephora USA Inc. After completing the transaction, BPG immediately listed the property, which it bought only two years ago, for sale with Trammell Crow Co. Sephora expanded into space formerly occupied by a third-party logistics firm with declining space needs. The building could sell in the $22-to-$24 million range.
Cushman & Wakefield Inc. represented Sephora in the lease negotiations, which expanded Sephora's existing 200,000-square-foot lease to encompass the entire building and extended its lease to a 12-year term. A division of Moet Hennessey Louis Vuitton, Sephora operates 110 beauty products stores in the U.S. and Can" Sphere: Related Content
DBS Group Nearing $412 Million Sale Leaseback of Singapore Headquarters
Forbes / AFX News Limited - November 8, 2005
DBS Group is near to completing the sale of its headquarters here, the DBS Building, the Business Times reported, citing unidentified sources. The newspaper said that the price is believed to be slightly over 700 mln sgd ($412 Million) and that the buyer could be a Goldman Sachs real estate fund.
The property has been eyed by several investors in recent months, but the offer by the Goldman Sachs fund is said to be the highest so far. Market watchers expect the bank, which occupies all of the DBS Building Tower One and almost half of Tower Two, to lease back the property for at least five years, the Business Times said.
The report said property analysts expect a net yield for the buyer of about 4 pct on the acquisition of the DBS Building Towers One and Two, based on the Goldman Sachs fund's proposed price. A price of, say, 708 mln sgd would work out to about 830 sgd ($488) per square foot for the property's total lettable floor area of about 852,000 square feet.
The newspaper said there is also talk that DBS may be looking to sell the PWC Building here, in which it has a 70 pct stake, to Goldman Sachs. The property is valued at about 500 mln sgd ($294 Million), or about 1,400 sgd per ($823) square foot of net lettable area. (1 usd = 1.70 sgd) Sphere: Related Content
DBS Group is near to completing the sale of its headquarters here, the DBS Building, the Business Times reported, citing unidentified sources. The newspaper said that the price is believed to be slightly over 700 mln sgd ($412 Million) and that the buyer could be a Goldman Sachs real estate fund.
The property has been eyed by several investors in recent months, but the offer by the Goldman Sachs fund is said to be the highest so far. Market watchers expect the bank, which occupies all of the DBS Building Tower One and almost half of Tower Two, to lease back the property for at least five years, the Business Times said.
The report said property analysts expect a net yield for the buyer of about 4 pct on the acquisition of the DBS Building Towers One and Two, based on the Goldman Sachs fund's proposed price. A price of, say, 708 mln sgd would work out to about 830 sgd ($488) per square foot for the property's total lettable floor area of about 852,000 square feet.
The newspaper said there is also talk that DBS may be looking to sell the PWC Building here, in which it has a 70 pct stake, to Goldman Sachs. The property is valued at about 500 mln sgd ($294 Million), or about 1,400 sgd per ($823) square foot of net lettable area. (1 usd = 1.70 sgd) Sphere: Related Content
Sanofi-aventis Group Signs Lease for New U.S. Headquarters
Yahoo / PRNewswire-FirstCall - November 7, 2005
The Sanofi-aventis Group, the world's third largest pharmaceutical company, has announced that it has signed an agreement to move its U.S. headquarters from its current location at Somerset Corporate Center in Bridgewater to 55 Corporate Drive, also in Bridgewater, to combine the headquarters activities into one location and to support future growth. Financial details of the agreement were not disclosed.
The move is scheduled to begin in December 2005. The three-building complex at 55 Corporate Drive is situated on 150 acres on Route 206 near Interstates 287 and 78. The current plans call for a total reconfiguration of the interior space of the existing buildings. Full occupancy of the approximately 670,000 square feet is expected by the end of 2006.
A joint venture between The Gale Company, SL Green and a client of Principal Real Estate Investors acquired the 55 Corporate Drive office complex from AT&T Corporation earlier this year.
Following completion of the move, all U.S. Pharmaceutical Operations employees will be located at the new site. Sphere: Related Content
The Sanofi-aventis Group, the world's third largest pharmaceutical company, has announced that it has signed an agreement to move its U.S. headquarters from its current location at Somerset Corporate Center in Bridgewater to 55 Corporate Drive, also in Bridgewater, to combine the headquarters activities into one location and to support future growth. Financial details of the agreement were not disclosed.
The move is scheduled to begin in December 2005. The three-building complex at 55 Corporate Drive is situated on 150 acres on Route 206 near Interstates 287 and 78. The current plans call for a total reconfiguration of the interior space of the existing buildings. Full occupancy of the approximately 670,000 square feet is expected by the end of 2006.
A joint venture between The Gale Company, SL Green and a client of Principal Real Estate Investors acquired the 55 Corporate Drive office complex from AT&T Corporation earlier this year.
Following completion of the move, all U.S. Pharmaceutical Operations employees will be located at the new site. Sphere: Related Content
Coop Norden Near $531 Million Sale Leaseback of its Property Portfolio
IGD Retail Analysis News - November 8, 2005
Coop Norden, the Scandinavian retail chain, has short listed three companies for a 450 million euro ($530 Million) sale and leaseback of its property portfolio. The three firms include Reit Asset Management, London and Regional and Rock Capital which is preparing a joint bid with GMAC the finance group. The Scandinavian corporate finance house Catella is overseeing the sale and leaseback process, which if successful will be used to reduce Coop Norden's 625 million euro debt.
Co-Op Norden has 1,080 outlets across Denmark, Norway and Sweden. The portfolio, which is primarily Swedish, includes 12 cash-and-carry warehouses, 113 Konsum food shops and other diverse properties. The sales process is being overseen by Catella and should be completed by year end. Sources estimate the initial yield on the properties will be from 6.0% to 6.5%. Sphere: Related Content
Coop Norden, the Scandinavian retail chain, has short listed three companies for a 450 million euro ($530 Million) sale and leaseback of its property portfolio. The three firms include Reit Asset Management, London and Regional and Rock Capital which is preparing a joint bid with GMAC the finance group. The Scandinavian corporate finance house Catella is overseeing the sale and leaseback process, which if successful will be used to reduce Coop Norden's 625 million euro debt.
Co-Op Norden has 1,080 outlets across Denmark, Norway and Sweden. The portfolio, which is primarily Swedish, includes 12 cash-and-carry warehouses, 113 Konsum food shops and other diverse properties. The sales process is being overseen by Catella and should be completed by year end. Sources estimate the initial yield on the properties will be from 6.0% to 6.5%. Sphere: Related Content
US Real Estate Groups Hunt for Capital in Australia
The The Star Online - November 7, 2005
US real estate groups are flocking to Australia to tap a juicy source of capital: A$4 billion of annual pension savings chasing property.
With 10% of Australia's share market devoted to property, compared with about 2% of the US market, US real estate groups see a new wellspring of money. The drawcard for the Americans is that Australian property fund managers value the steady income that comes from real estate, and tend to be longer-term investors than their US peers, who are more focused on capital growth.
Tishman Speyer, which owns iconic properties like New York's Rockefeller Center, last December became the first US group to float a trust in Australia, its only publicly-traded fund worldwide. It raised A$520mil to buy a 45.9% stake in a US$1.85bil portfolio of office buildings mainly in New York, Chicago and San Francisco in a joint venture with Singapore's Government Investment Corp Real Estate Pte Ltd (GIC) and Tishman Speyer.
It was followed by Reckson Realty Corp, which raised A$263mil in September with the float of Reckson New York Property Trust, giving Australians a 75% stake in offices in and around New York, while Reckson kept 25%.
Now, there are companies flying over without any deals to sell, just to meet fund managers in Australia. To the extent a deal ever materialises, the best way for us to get execution is to build those relationships well in advance of that,” said Maryland-based shopping centre group Federal Realty Inc vice-president of investor relations, Andrew Blocher.
The job has become a little harder for US groups, as the gap between cheap debt and rental yields in the US has shrunk, spurring Australian property investors to shift their own offshore focus to Europe.
The US groups say they are not coming to Australia because the capital is cheaper than at home, or because they are looking to unload inferior properties. “If I look at US office acquisitions, Australian capital is by no means cheap,” said Tishman Speyer's Feldstein. Tishman Speyer chose Australia to complete the funding of the group's joint venture with Singapore's GIC, seeing it as a potential platform for a global real estate fund, he said.
Reckson's fund manager in Australia, Francis Sheehan, said if Reckson had been looking to dump assets, it would have been better off selling them in the US. “We could have gained a much higher price,” he said. “But, we retained 25%, which is pretty high in the industry, because we believe in assets and markets.” Reckson is managing the trust with no performance and no promotion fees in contrast to Tishman Speyer.
Californian property giant Maguire Properties Inc joined the trend, selling down stakes in 5 buildings into a US$1.2bil joint venture with Macquarie Office Trust. Sphere: Related Content
US real estate groups are flocking to Australia to tap a juicy source of capital: A$4 billion of annual pension savings chasing property.
With 10% of Australia's share market devoted to property, compared with about 2% of the US market, US real estate groups see a new wellspring of money. The drawcard for the Americans is that Australian property fund managers value the steady income that comes from real estate, and tend to be longer-term investors than their US peers, who are more focused on capital growth.
Tishman Speyer, which owns iconic properties like New York's Rockefeller Center, last December became the first US group to float a trust in Australia, its only publicly-traded fund worldwide. It raised A$520mil to buy a 45.9% stake in a US$1.85bil portfolio of office buildings mainly in New York, Chicago and San Francisco in a joint venture with Singapore's Government Investment Corp Real Estate Pte Ltd (GIC) and Tishman Speyer.
It was followed by Reckson Realty Corp, which raised A$263mil in September with the float of Reckson New York Property Trust, giving Australians a 75% stake in offices in and around New York, while Reckson kept 25%.
Now, there are companies flying over without any deals to sell, just to meet fund managers in Australia. To the extent a deal ever materialises, the best way for us to get execution is to build those relationships well in advance of that,” said Maryland-based shopping centre group Federal Realty Inc vice-president of investor relations, Andrew Blocher.
The job has become a little harder for US groups, as the gap between cheap debt and rental yields in the US has shrunk, spurring Australian property investors to shift their own offshore focus to Europe.
The US groups say they are not coming to Australia because the capital is cheaper than at home, or because they are looking to unload inferior properties. “If I look at US office acquisitions, Australian capital is by no means cheap,” said Tishman Speyer's Feldstein. Tishman Speyer chose Australia to complete the funding of the group's joint venture with Singapore's GIC, seeing it as a potential platform for a global real estate fund, he said.
Reckson's fund manager in Australia, Francis Sheehan, said if Reckson had been looking to dump assets, it would have been better off selling them in the US. “We could have gained a much higher price,” he said. “But, we retained 25%, which is pretty high in the industry, because we believe in assets and markets.” Reckson is managing the trust with no performance and no promotion fees in contrast to Tishman Speyer.
Californian property giant Maguire Properties Inc joined the trend, selling down stakes in 5 buildings into a US$1.2bil joint venture with Macquarie Office Trust. Sphere: Related Content
Wednesday, November 09, 2005
Kerr Drug Completes $52 Million Sale Leaseback of 20 Drug Stores
Businesswire - November 4, 2005
GMAC Commercial Holding Capital Corp. recently purchased of a portfolio of 20 free-standing drug stores for $52,100,000. Capital Corp.'s Net Lease Acquisition Group negotiated the sale/leaseback transaction with an affiliate of Kerr Drug, a Raleigh, N.C.-based regional chain of drug stores.
Net Lease Acquisition Group Vice Presidents Patrick Pearson and Gregg Fields structured 20-year, triple net leases for each of the stores. Eighteen of the stores are in North Carolina and the remaining two are located in South Carolina. All of the properties are fairly new--the oldest was built between seven and eight years ago--and the majority are self-developed.
GMAC Commercial Mortgage (GMACCM) Vice President Jere Lucey, of the New York loan origination office, arranged approximately 75 percent loan-to-value first mortgage financing for the transaction through GMACCM's Proprietary Lending Group. Sphere: Related Content
GMAC Commercial Holding Capital Corp. recently purchased of a portfolio of 20 free-standing drug stores for $52,100,000. Capital Corp.'s Net Lease Acquisition Group negotiated the sale/leaseback transaction with an affiliate of Kerr Drug, a Raleigh, N.C.-based regional chain of drug stores.
Net Lease Acquisition Group Vice Presidents Patrick Pearson and Gregg Fields structured 20-year, triple net leases for each of the stores. Eighteen of the stores are in North Carolina and the remaining two are located in South Carolina. All of the properties are fairly new--the oldest was built between seven and eight years ago--and the majority are self-developed.
GMAC Commercial Mortgage (GMACCM) Vice President Jere Lucey, of the New York loan origination office, arranged approximately 75 percent loan-to-value first mortgage financing for the transaction through GMACCM's Proprietary Lending Group. Sphere: Related Content
Tuesday, November 08, 2005
Lenovo Building $84 Million Office Campus Near Research Triangle Park
Commercial Property News - November 1, 2005
Lenovo USA Inc. has signed a record-breaking build-to-suit deal with Duke Realty Corp. to occupy 500,000 square feet of office space in a three-building corporate campus in Morrisville, N.C. The Perimeter Park development project is estimated to cost about $70 million, while the lease is reportedly worth about $100 million.
"I'm not aware if there has ever been a lease this large in Raleigh," said Andrew Kelton, senior vice president of Duke's Raleigh operations. "And it may be the largest we've done for Duke as a corporation."
Japanese PC manufacturer Lenovo bought IBM Think Pad in May and is now consolidating 578,000 square feet of inherited space in Raleigh's Research Triangle Park. Lenovo was able to sign its 10-year lease at below market rate and it was given $16 million worth of tax incentives from local and state authorities. It also has a development option for a fourth property in the park.
The first two buildings in the campus, both five stories with 179,000 square feet, will include mainly offices with some lab space. Building Three will include 143,000 square feet on four floors. Though initial design renderings are still being tweaked to reflect Lenovo's high-tech image, the groundbreaking for Building One has been moved up to next month, with an expected completion of January 2007. Building Two should be finished by February 2007, and Building Three in early 2009.
Kelton said that he believes his company was able to win the huge contract in part because of Perimeter Park's prime location, near Interstate 540 and the Raleigh/Durham International Airport. It already has 2 million square feet of offices in the park, with 1 million square feet of developable space. Sphere: Related Content
Lenovo USA Inc. has signed a record-breaking build-to-suit deal with Duke Realty Corp. to occupy 500,000 square feet of office space in a three-building corporate campus in Morrisville, N.C. The Perimeter Park development project is estimated to cost about $70 million, while the lease is reportedly worth about $100 million.
"I'm not aware if there has ever been a lease this large in Raleigh," said Andrew Kelton, senior vice president of Duke's Raleigh operations. "And it may be the largest we've done for Duke as a corporation."
Japanese PC manufacturer Lenovo bought IBM Think Pad in May and is now consolidating 578,000 square feet of inherited space in Raleigh's Research Triangle Park. Lenovo was able to sign its 10-year lease at below market rate and it was given $16 million worth of tax incentives from local and state authorities. It also has a development option for a fourth property in the park.
The first two buildings in the campus, both five stories with 179,000 square feet, will include mainly offices with some lab space. Building Three will include 143,000 square feet on four floors. Though initial design renderings are still being tweaked to reflect Lenovo's high-tech image, the groundbreaking for Building One has been moved up to next month, with an expected completion of January 2007. Building Two should be finished by February 2007, and Building Three in early 2009.
Kelton said that he believes his company was able to win the huge contract in part because of Perimeter Park's prime location, near Interstate 540 and the Raleigh/Durham International Airport. It already has 2 million square feet of offices in the park, with 1 million square feet of developable space. Sphere: Related Content
Sunday, November 06, 2005
Mitre 10 Selling 3 New Superstores in New Zealand
Bayleys Real Estate Web Site - November 4, 2005
Mitre 10, the leading home improvement retailer in New Zealand, is selling three stores at auction through Bayleys Real Estate.
Mitre 10 is taking an initial lease over each property for 12 years, with one nine-year right of renewal followed by three six-year rights of renewal. The leases incorporate rent reviews adjusted to CPI increases and to market. The three properties having a combined annual net rental income of$2.625 million.
Mitre 10 has 118 Mitre 10 stores, 83 Hammer Hardware outlets and 18 Palmers Gardenworld centres. Sphere: Related Content
Mitre 10, the leading home improvement retailer in New Zealand, is selling three stores at auction through Bayleys Real Estate.
Mitre 10 is taking an initial lease over each property for 12 years, with one nine-year right of renewal followed by three six-year rights of renewal. The leases incorporate rent reviews adjusted to CPI increases and to market. The three properties having a combined annual net rental income of$2.625 million.
Mitre 10 has 118 Mitre 10 stores, 83 Hammer Hardware outlets and 18 Palmers Gardenworld centres. Sphere: Related Content
Aker ASA Enters $212 Million Sale Leaseback on New Oslo Headquarters
Forbes.com / AFX - Oslo, Norway - November 3, 2005
Aker ASA said it has agreed to sell all the shares in its real estate company which owns the property and the building project for a new Aker headquarters, to Naeringsbygg Holding 2 AS for 1.4 bln nkr. Naeringsbygg Holding 2 is owned by the customers of investment company Acta ASA. Aker will book a gain of around 400 mln nkr on the transaction in the fourth quarter.
Aker will rent back the offices for a period 12 years once the building process is completed. Næringsbygg Holding 2 AS has the necessary equity to finance part of the purchase, but the transaction is pending sufficient financing, Aker said. Sphere: Related Content
Degussa Sells and Leases Back Offices in Frankfurt
Degussa Web Site - October 17, 2005
Degussa AG, Dusseldorf, Germany, has sold its administrative site in Weissfrauenstrasse, Frankfurt, Germany, to Deutsche Immobilien Chancen AG (DIC) and Morgan Stanley Real Estate Funds. The agreements were signed last Friday and title is scheduled to pass to the new owners on December 31, 2005. From the same date, Degussa will rent a large proportion of premises from the new owners under a ten-year rental contract.
Degussa and the new owners have agreed not to disclose the purchase price. Degussa will remain responsible for facility management and maintenance at the site. At present about 950 employees from a variety of business and service units work in the buildings, which are located directly on the Main river. Sphere: Related Content
Degussa AG, Dusseldorf, Germany, has sold its administrative site in Weissfrauenstrasse, Frankfurt, Germany, to Deutsche Immobilien Chancen AG (DIC) and Morgan Stanley Real Estate Funds. The agreements were signed last Friday and title is scheduled to pass to the new owners on December 31, 2005. From the same date, Degussa will rent a large proportion of premises from the new owners under a ten-year rental contract.
Degussa and the new owners have agreed not to disclose the purchase price. Degussa will remain responsible for facility management and maintenance at the site. At present about 950 employees from a variety of business and service units work in the buildings, which are located directly on the Main river. Sphere: Related Content
German State of Hesse Agrees to $1.3 Billion Sale Leaseback
Bloomberg - November 1, 2005
CommerzLeasing und Immobilien AG, the property leasing unit of Germany's No. 3 publicly traded bank, agreed to pay 1.07 billion euros ($1.3 billion) to buy and lease back German state-owned real estate.
The state of Hesse agreed to sell 18 properties including its finance and interior ministries, police stations and other offices, according to an e-mail today. The government will lease back the space for about 55.3 million euros annually (5.2% initial yield). The buildings encompass 396,700 square meters (4.27 million square feet) of rental space.
CommerzLeasing, which outbid a pool of predominantly non- German competitors, is financing the purchase with 1 billion euros in loans from Hypo Real Estate AG, according to the statement. The deal is subject to state parliamentary approval. Hesse is looking to real estate sales to free up funds.
EuroProperty News reports that the portfolio will be leased back by the state for up to 20 years. The portfolio, marketed by PricewaterhouseCoopers and CB Richard Ellis, is reportedly the first major one to be sold by a German state. Hamburg is currently marketing two portfolios while Hessen plans to sell 770 million eoros worth of assets next year.
Other states are expected to market property after such strong bidding for Hessen's assets. Hessen's recently issued 10-year Eurobond rated AA+ by Standard & Poor's offered a yield of 3.25%, or 1.5% less than the property yield on this transaction. Sphere: Related Content
CommerzLeasing und Immobilien AG, the property leasing unit of Germany's No. 3 publicly traded bank, agreed to pay 1.07 billion euros ($1.3 billion) to buy and lease back German state-owned real estate.
The state of Hesse agreed to sell 18 properties including its finance and interior ministries, police stations and other offices, according to an e-mail today. The government will lease back the space for about 55.3 million euros annually (5.2% initial yield). The buildings encompass 396,700 square meters (4.27 million square feet) of rental space.
CommerzLeasing, which outbid a pool of predominantly non- German competitors, is financing the purchase with 1 billion euros in loans from Hypo Real Estate AG, according to the statement. The deal is subject to state parliamentary approval. Hesse is looking to real estate sales to free up funds.
EuroProperty News reports that the portfolio will be leased back by the state for up to 20 years. The portfolio, marketed by PricewaterhouseCoopers and CB Richard Ellis, is reportedly the first major one to be sold by a German state. Hamburg is currently marketing two portfolios while Hessen plans to sell 770 million eoros worth of assets next year.
Other states are expected to market property after such strong bidding for Hessen's assets. Hessen's recently issued 10-year Eurobond rated AA+ by Standard & Poor's offered a yield of 3.25%, or 1.5% less than the property yield on this transaction. Sphere: Related Content
Club Med Completes 225 Million Euro Sale Leaseback of Four Mountain Villages
Reuters - November 2, 2005
French resort operator Club Mediterranee (CMIP.PA) has sold four vacation villages to property investment firm Gecina for 225 million euros ($270 million) in a deal that will return it to breakeven for the first time in five years, it said on Wednesday. The deal comes as a number of French companies take advantage of a short-term tax break to divest property assets, lightening their balance sheets in the process.
Club Med, which pioneered fun-in-the-sun holiday villages in the 1950s, said the deal would cut its debt by 175 million euros, produce a capital gain of 40 million euros and bring it to breakeven in net profit terms over its 2005 financial year for the first time since 2001. It has agreed to lease back the villages on 12-year renewable contracts with a net rent equivalent to 7 percent of the overall deal.
The deal follows a 1 billion euro agreement in March between Accor, Europe's biggest hotelier, and real estate firm Fonciere des Murs (FERP.PA) covering leases on 128 hotels. The flurry of activity stems from France's decision last year to cut the capital gains tax to 16.5 percent, from 30 percent before, until 2007 for companies selling real estate assets to listed French property firms, known as SIICs.
"The emergence of SIIC activity in hotels is hotting up, and with the capital gains tax incentive, we expect to see new deals, notably with Accor in the future," said Vicki Lee, a leisure sector analyst at UBS. Accor (ACCP.PA), which owns 29 percent of Club Med, has put 10 of its upscale Sofitel hotels up for sale. Sphere: Related Content
French resort operator Club Mediterranee (CMIP.PA) has sold four vacation villages to property investment firm Gecina for 225 million euros ($270 million) in a deal that will return it to breakeven for the first time in five years, it said on Wednesday. The deal comes as a number of French companies take advantage of a short-term tax break to divest property assets, lightening their balance sheets in the process.
Club Med, which pioneered fun-in-the-sun holiday villages in the 1950s, said the deal would cut its debt by 175 million euros, produce a capital gain of 40 million euros and bring it to breakeven in net profit terms over its 2005 financial year for the first time since 2001. It has agreed to lease back the villages on 12-year renewable contracts with a net rent equivalent to 7 percent of the overall deal.
The deal follows a 1 billion euro agreement in March between Accor, Europe's biggest hotelier, and real estate firm Fonciere des Murs (FERP.PA) covering leases on 128 hotels. The flurry of activity stems from France's decision last year to cut the capital gains tax to 16.5 percent, from 30 percent before, until 2007 for companies selling real estate assets to listed French property firms, known as SIICs.
"The emergence of SIIC activity in hotels is hotting up, and with the capital gains tax incentive, we expect to see new deals, notably with Accor in the future," said Vicki Lee, a leisure sector analyst at UBS. Accor (ACCP.PA), which owns 29 percent of Club Med, has put 10 of its upscale Sofitel hotels up for sale. Sphere: Related Content
HSBC May Empark on Sale Leaseback Program
EuroProperty News reports that CB Richard Ellis has won a property management contract with International bank HSBC believed to be worth £25m-£30m a year in fees. CBRE will reportedly assume responsibility for HSBC's entire European property management function including consultation, deals and property management.
CBRE is expected to hire around 100 staff to manage the project. The contract, which
will be run from London, makes CBRE responsible for the complete strategic
management of HSBC's global portfolio, worth around £40bn. Transaction work may
come from sale-and-leasebacks. There is speculation that HSBC's £490m Canary
Wharf HQ could be sold and leased back, as its Singapore offices were. Sphere: Related Content
CBRE is expected to hire around 100 staff to manage the project. The contract, which
will be run from London, makes CBRE responsible for the complete strategic
management of HSBC's global portfolio, worth around £40bn. Transaction work may
come from sale-and-leasebacks. There is speculation that HSBC's £490m Canary
Wharf HQ could be sold and leased back, as its Singapore offices were. Sphere: Related Content
Friday, November 04, 2005
New Net Lease REIT Closes $240 Million IPO
Newkirk Realty Trust Web Site - November 2, 2005
Newkirk Realty Trust, Inc. (NYSE:NKT) announced today the closing of its initial public offering of 15,000,000 shares of common stock at a price to the public of $16.00 per share.
Newkirk Realty Trust is a real estate investment trust that isthe general partner of, and owns a 30.1% controlling interest in, The Newkirk Master Limited Partnership. The Newkirk Master Limited Partnership is a publicly reporting limited partnership that owns a diversified portfolio of triple-net leased properties and other real estate-related assets. Sphere: Related Content
Newkirk Realty Trust, Inc. (NYSE:NKT) announced today the closing of its initial public offering of 15,000,000 shares of common stock at a price to the public of $16.00 per share.
Newkirk Realty Trust is a real estate investment trust that isthe general partner of, and owns a 30.1% controlling interest in, The Newkirk Master Limited Partnership. The Newkirk Master Limited Partnership is a publicly reporting limited partnership that owns a diversified portfolio of triple-net leased properties and other real estate-related assets. Sphere: Related Content
Wednesday, November 02, 2005
Australian Trust Acquires Two Net Leased Properties in US
The Financial Standard - October 26, 2005
Listed property trust Mariner American Property Income Trust (MAPIT) is to buy two US properties with a combined worth of just under $160 million. MAPIT has entered into contracts to purchase the FedEx freight terminal near New York City for US$25 million ($34 million) and the headquarters of computer security group RSA in Boston for US$95 million ($125 million).
The acquisitions will more than double the total value of properties held by the Trust to $286 million. MAPIT's investment strategy is to invest in high-grade US properties with long-term quality tenants. With the FedEx purchase, FedEx Freight East Inc will lease the property for a 13-year term. With the RSA Security Headquarters, RSA will lease for an 11-year term. According to the group, the FedEx property boasts a lease yield of 7.3 percent while the RSA office building will return a higher 8.16 percent over the term of the lease. Sphere: Related Content
Listed property trust Mariner American Property Income Trust (MAPIT) is to buy two US properties with a combined worth of just under $160 million. MAPIT has entered into contracts to purchase the FedEx freight terminal near New York City for US$25 million ($34 million) and the headquarters of computer security group RSA in Boston for US$95 million ($125 million).
The acquisitions will more than double the total value of properties held by the Trust to $286 million. MAPIT's investment strategy is to invest in high-grade US properties with long-term quality tenants. With the FedEx purchase, FedEx Freight East Inc will lease the property for a 13-year term. With the RSA Security Headquarters, RSA will lease for an 11-year term. According to the group, the FedEx property boasts a lease yield of 7.3 percent while the RSA office building will return a higher 8.16 percent over the term of the lease. Sphere: Related Content
Tuesday, November 01, 2005
Tower Records Completes $28 Million Sale Leaseback of Manhattan Store
Real Estate Weekly - 26 October 2005
Real Estate Weekly has reported that Tower Records has sold its flagship store at 692 Broadway in New York City for $28 million in a sale-leaseback transaction with Vornado Realty Trust. Tower Records, which recently came out of a pre-packed bankruptcy, owned five contiguous ground floor retail condominium units totaling 35,752 square feet in the Silk Building, a 12-story mixed-use building, on East Fourth Street between Broadway and Lafayette. Tower Records will lease back the units from Vornado for an initial term of ten years, with the option to extend for two additional five year terms. Sphere: Related Content
Real Estate Weekly has reported that Tower Records has sold its flagship store at 692 Broadway in New York City for $28 million in a sale-leaseback transaction with Vornado Realty Trust. Tower Records, which recently came out of a pre-packed bankruptcy, owned five contiguous ground floor retail condominium units totaling 35,752 square feet in the Silk Building, a 12-story mixed-use building, on East Fourth Street between Broadway and Lafayette. Tower Records will lease back the units from Vornado for an initial term of ten years, with the option to extend for two additional five year terms. Sphere: Related Content
Sunday, October 30, 2005
Qatar Financial Centre Authority Signs Lease for New Hheadquarters
Qatar Financial Centre Authority Web Site - October 27, 2005
The Qatar Financial Centre Authority (QFCA) has signed a lease to move into a new building that will provide its permanent home from the end of next year.
The lease for the entire 20 storey building has been signed with the Qatar Insurance Company (QIC) and will include the QFCA, the QFC Regulatory Authority and provide licensed institutions with a base from which to operate.
The Qatar Financial Centre (QFC) has been established so that financial institutions and other associated businesses that move to Qatar can participate in the Country’s growth within an efficient and supportive business and regulatory framework.
The QFC has been created as an integral part of Qatar’s programme to attract major financial institutions and professional service groups that can help to develop business opportunities in the country. Qatar is asset rich and revenue rich and its strategy is to use the QFC to diversify the economy from a position of strength – including a $110 billion project finance programme over the next five years. Sphere: Related Content
The Qatar Financial Centre Authority (QFCA) has signed a lease to move into a new building that will provide its permanent home from the end of next year.
The lease for the entire 20 storey building has been signed with the Qatar Insurance Company (QIC) and will include the QFCA, the QFC Regulatory Authority and provide licensed institutions with a base from which to operate.
The Qatar Financial Centre (QFC) has been established so that financial institutions and other associated businesses that move to Qatar can participate in the Country’s growth within an efficient and supportive business and regulatory framework.
The QFC has been created as an integral part of Qatar’s programme to attract major financial institutions and professional service groups that can help to develop business opportunities in the country. Qatar is asset rich and revenue rich and its strategy is to use the QFC to diversify the economy from a position of strength – including a $110 billion project finance programme over the next five years. Sphere: Related Content
Saturday, October 29, 2005
Systemax to Lease 500,000 SF Distribution Center Near Atlanta
CoStar Group - October 27, 2005
Atlanta-based IDI is nearing a deal with Systemax Inc. for approximately 500,000 square feet at IDI’s Hamilton Mill Business Center in Gwinnett County. The deal would also include an agreement by IDI to purchase Systemax’s current facility, a 360,000-square-foot building on Satellite Boulevard in IDI’s Shawnee Ridge development.
The Systemax deal would be yet another large warehouse deal for the Northeast submarket, which has seen several large transactions lately. Earlier this fall, The Home Depot took down 546,000 square feet with Solution Property Group in Braselton, Progressive Lighting has made its deal with Duke, Takeuchi Manufacturing struck a build-to-suit deal with J.W. Rooker & Associates in Jackson County and Kubota signed a 400,000-square-foot deal with Pattillo Construction Co. in Jackson as well.
CoStar Group numbers for third-quarter 2005 show the Northeast market strengthening a bit with a small drop in vacancy rate (12.2% to 11.8%) over the past quarter. The market absorbed nearly 1 million square feet during the third quarter, bringing the yearly total for the submarket to more than 2.3 million square feet. Sphere: Related Content
Atlanta-based IDI is nearing a deal with Systemax Inc. for approximately 500,000 square feet at IDI’s Hamilton Mill Business Center in Gwinnett County. The deal would also include an agreement by IDI to purchase Systemax’s current facility, a 360,000-square-foot building on Satellite Boulevard in IDI’s Shawnee Ridge development.
The Systemax deal would be yet another large warehouse deal for the Northeast submarket, which has seen several large transactions lately. Earlier this fall, The Home Depot took down 546,000 square feet with Solution Property Group in Braselton, Progressive Lighting has made its deal with Duke, Takeuchi Manufacturing struck a build-to-suit deal with J.W. Rooker & Associates in Jackson County and Kubota signed a 400,000-square-foot deal with Pattillo Construction Co. in Jackson as well.
CoStar Group numbers for third-quarter 2005 show the Northeast market strengthening a bit with a small drop in vacancy rate (12.2% to 11.8%) over the past quarter. The market absorbed nearly 1 million square feet during the third quarter, bringing the yearly total for the submarket to more than 2.3 million square feet. Sphere: Related Content
Whirlpool Leases 500,000 SF Build-to-Suit Distribution Center in Orlando
CoStar Group - October 28, 2005
Appliance-maker Whirlpool outgrew its current warehouse on Investors Row in Orlando, FL and struck a deal with The Pizutti Cos. for a new, 500,000-square-foot regional distribution center about 20 miles away at Orange Avenue and Route 417 in Orlando. Construction began this month on the build-to-suit facility with a move-in date set for next June.
The new 500,000-square-foot, rail-served building on 34 acres is expandable to 750,000 square feet. Exxcel Project Management is the project contractor. Whirlpool is vacating a 228,950-square-foot, Class A warehouse facility on 13.20 acres owned by Liberty Property Trust at 2351 Investors Row. Pizzuti and Whirlpool have collaborated on a number of construction projects for the appliance maker, including more than 2.5 million square feet of build-to-suit projects in Carlisle, PA; Clyde, OH; Indianapolis, IN; Dallas, TX; and Tulsa, OK.
In August, Whirlpool agreed to buy rival Maytag for $21 a share or about $1.7 billion. The deal, which would create the world's largest appliance maker, is expected to close next year if approved by U.S. regulators. Sphere: Related Content
Appliance-maker Whirlpool outgrew its current warehouse on Investors Row in Orlando, FL and struck a deal with The Pizutti Cos. for a new, 500,000-square-foot regional distribution center about 20 miles away at Orange Avenue and Route 417 in Orlando. Construction began this month on the build-to-suit facility with a move-in date set for next June.
The new 500,000-square-foot, rail-served building on 34 acres is expandable to 750,000 square feet. Exxcel Project Management is the project contractor. Whirlpool is vacating a 228,950-square-foot, Class A warehouse facility on 13.20 acres owned by Liberty Property Trust at 2351 Investors Row. Pizzuti and Whirlpool have collaborated on a number of construction projects for the appliance maker, including more than 2.5 million square feet of build-to-suit projects in Carlisle, PA; Clyde, OH; Indianapolis, IN; Dallas, TX; and Tulsa, OK.
In August, Whirlpool agreed to buy rival Maytag for $21 a share or about $1.7 billion. The deal, which would create the world's largest appliance maker, is expected to close next year if approved by U.S. regulators. Sphere: Related Content
Rockwell Automation Agrees to $150 Million Sale Leaseback
PRNewswire-FirstCall - Chicago - October 26, 2005
First Industrial Realty Trust, Inc. (NYSE: FR) announced that it has entered into a sale-leaseback transaction with Rockwell Automation, Inc. In the transaction, First Industrial will acquire and lease back to Rockwell approximately 24 properties in 17 states. The transaction is expected to close in fourth quarter 2005. First Industrial expects to purchase the properties from Rockwell Automation for approximately $150 million. The lease terms for the properties range from five to fifteen years. Sphere: Related Content
First Industrial Realty Trust, Inc. (NYSE: FR) announced that it has entered into a sale-leaseback transaction with Rockwell Automation, Inc. In the transaction, First Industrial will acquire and lease back to Rockwell approximately 24 properties in 17 states. The transaction is expected to close in fourth quarter 2005. First Industrial expects to purchase the properties from Rockwell Automation for approximately $150 million. The lease terms for the properties range from five to fifteen years. Sphere: Related Content
Wednesday, October 26, 2005
Fortunoff Enters Sale Leaseback on Manhattan Building
The New York Post reports that Fortunoff is selling its Fifth Avenue building in Manhattan in a sale-leaseback deal. Metropole Realty Advisors has agreed to buy the 12-story, 64,000-square-foot tower. The price is said to be around $90 million. Fortunoff signed a long-term lease to rent its 17,000 feet on the lower three floors and mezzanine. The remaining space is fully occupied at undermarket rents by companies that include the Cancer Research Institute. Metropole brought the building to Fortunoff in 1979 and has since been its leasing agent and acting real estate advisor. When the retailer decided to sell, Metropole asked to be the buyer. Eastdil Realty handled the quiet marketing of the luxury property whose primary pricing was based on the value of the Fortunoff retail lease.
Sphere: Related Content
Saturday, October 22, 2005
Sony seeking Sale Leaseback on Eoropean Property Portfolio
Estates Gazette reports that Sony has hired Cushman & Wakefield Healey & Baker to arrange a sale leaseback for a two million sf property portfolio in the UK, Italy, Switzerland, Germany, the Netherlands and Belgium. The bulk of the portfolio will be offices and the balance manufacturing sites. Sony reportedly plans to stay in only around 60% of the properties.
Sphere: Related Content
Friday, October 21, 2005
Progressive Lighting to Lease 700,000 SF Distribution Center Near Atlanta
CoStar Group - October 19, 2005
Just weeks after buying the former Georgia Distribution Center in Braselton, GA, Duke Realty Corp. (NYSE: DRE) has nabbed a huge deal with an Atlanta-based lighting firm. Progressive Lighting is days away from completing a deal for the entire building at 625 Braselton Parkway, a currently 505,000-square-foot industrial building originally developed by Southeast Investment Properties. The deal calls for the building to be expanded to approximately 700,000 square feet immediately, and has provisions for Progressive Lighting to take a full-expansion of the building, which would be more than 1 million square feet.
At that size, it would be one of the largest industrial deals in Atlanta this year, comparable to The Home Depot’s 1 million-square-foot deal in Henry County and Solo Cup Co.’s mammoth 1.3 million-square-foot deal in Social Circle. The building will serve as Progressive Lighting’s headquarters and have as much as 40,000 square feet of office space.
The deal is a major coup for Duke, which just recently closed on the purchase of the building and 318 acres at the intersection of I-85 and Georgia Highway 53 in Braselton, northeast of Atlanta. The seller was legendary land speculator Wayne Mason, who had originally optioned the land to Steve Smith of Southeast Investment Properties for a project he called Georgia Distribution Center. Sphere: Related Content
Just weeks after buying the former Georgia Distribution Center in Braselton, GA, Duke Realty Corp. (NYSE: DRE) has nabbed a huge deal with an Atlanta-based lighting firm. Progressive Lighting is days away from completing a deal for the entire building at 625 Braselton Parkway, a currently 505,000-square-foot industrial building originally developed by Southeast Investment Properties. The deal calls for the building to be expanded to approximately 700,000 square feet immediately, and has provisions for Progressive Lighting to take a full-expansion of the building, which would be more than 1 million square feet.
At that size, it would be one of the largest industrial deals in Atlanta this year, comparable to The Home Depot’s 1 million-square-foot deal in Henry County and Solo Cup Co.’s mammoth 1.3 million-square-foot deal in Social Circle. The building will serve as Progressive Lighting’s headquarters and have as much as 40,000 square feet of office space.
The deal is a major coup for Duke, which just recently closed on the purchase of the building and 318 acres at the intersection of I-85 and Georgia Highway 53 in Braselton, northeast of Atlanta. The seller was legendary land speculator Wayne Mason, who had originally optioned the land to Steve Smith of Southeast Investment Properties for a project he called Georgia Distribution Center. Sphere: Related Content
Groupe Casino Agrees to 201 Million Euro Sale Leaseback of 13 Warehouses
Groupe Casino Web Site - October 17, 2005
Groupe Casino, one of France's leading food retailers, is selling 13 warehouses for a total of €201.5 million to Mines de la Lucette. The 13 warehouses total 418,000 square metres and are located throughout France. Mines de la Lucette is 76.7%-owned by Morgan Stanley Real Estate Funds.
The sale price amounts to €201.5 million pre-tax, including €13.5 million in work to be financed by Mines de la Lucette over the period 2006-2014. Twelve of the thirteen warehouses are being leased back under commercial leases by Easydis, Groupe Casino’s wholly-owned logistics subsidiary. Most of the leases have an initial fixed term of no more than nine years.
The price obtained by Casino corresponds to a rent capitalisation rate of less than 7%. The sale will be completed during the first half of 2006. Sphere: Related Content
Groupe Casino, one of France's leading food retailers, is selling 13 warehouses for a total of €201.5 million to Mines de la Lucette. The 13 warehouses total 418,000 square metres and are located throughout France. Mines de la Lucette is 76.7%-owned by Morgan Stanley Real Estate Funds.
The sale price amounts to €201.5 million pre-tax, including €13.5 million in work to be financed by Mines de la Lucette over the period 2006-2014. Twelve of the thirteen warehouses are being leased back under commercial leases by Easydis, Groupe Casino’s wholly-owned logistics subsidiary. Most of the leases have an initial fixed term of no more than nine years.
The price obtained by Casino corresponds to a rent capitalisation rate of less than 7%. The sale will be completed during the first half of 2006. Sphere: Related Content
Parmalat Pursuing 100 Million Euro Sale Leaseback of Madrid HQ
AFX International, quoting spanish newspaper La Gaceta de los Negocios, reports that Parmalat SpA has put its Madrid headquarters up for sale for over 100 mln euro. The Italian dairy and fruit juice company is expected to remain in the building under a lease back contract following the sale according to unnamed sector sources.
Sphere: Related Content
AAA Mid-Atlantic Enters 15 Year Lease for New HQ
Mack Cali Web Site - October 20, 2005
Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has entered into a development and acquisition agreement with AAA Mid-Atlantic. The agreement includes Mack-Cali's development of an operations center for AAA and its acquisition of land and buildings from AAA, all in Hamilton Township, New Jersey.
Mack-Cali will develop for AAA a three-story, 120,000 square-foot class A office building on a 21.6 acre land site at Mack-Cali's Horizon Center Business Park. AAA has pre-leased the building, which it will use as an operations center, for 15 years. Construction on the build-to-suit project is expected to be completed in the third quarter of 2006.
Upon completion of the new building for AAA, Mack-Cali will acquire from AAA three office and office/flex buildings totaling 83,762 square feet and land for the development of an additional 243,000 square feet of commercial space. Mack-Cali plans to redevelop each of the acquired properties. Sphere: Related Content
Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has entered into a development and acquisition agreement with AAA Mid-Atlantic. The agreement includes Mack-Cali's development of an operations center for AAA and its acquisition of land and buildings from AAA, all in Hamilton Township, New Jersey.
Mack-Cali will develop for AAA a three-story, 120,000 square-foot class A office building on a 21.6 acre land site at Mack-Cali's Horizon Center Business Park. AAA has pre-leased the building, which it will use as an operations center, for 15 years. Construction on the build-to-suit project is expected to be completed in the third quarter of 2006.
Upon completion of the new building for AAA, Mack-Cali will acquire from AAA three office and office/flex buildings totaling 83,762 square feet and land for the development of an additional 243,000 square feet of commercial space. Mack-Cali plans to redevelop each of the acquired properties. Sphere: Related Content
Thursday, October 20, 2005
Hilton US to Buy Hilton UK
Scotsman.com Business - Media & Leisure - October 15, 2005
HILTON Group, the hotel and gambling operator, confirmed yesterday it is in advanced talks with Hilton Hotels Corporation (HHC) of the US about a GBP3.6 billion sale of its hotel business, in a deal that would see it split from Ladbrokes, the UK bookmaker the group owns.
HHC, which was founded in 1919 by Barron Hilton, sold the rights to the Hilton brand outside the US in 1964. Ladbrokes, Britain's biggest bookmaker, bought Hilton in 1987, dropping the Ladbrokes name in favour of Hilton after buying the hotel and casino operator Stakis in 1998.
Hilton Group, led by chief executive David Michels, is currently also in talks with Royal Bank of Scotland, among others, over the sale of 18 hotels in the UK in a GBP400 million-plus sale and manage-back deal and further such disposals are inevitable.
Included in that group are Dunkeld House, Edinburgh Airport and the Treetops in Aberdeen, and a spokesman said yesterday that those are likely to be sold separately in a sell-and lease back deal, before any overall sell-off to the US group.
Hilton Group has more than 400 hotels - 70 of which are in the UK - under the Hilton and Scandic brands in 80 countries. HHC owns, manages or franchises more than 2,300 hotels under such brands as Hilton, Conrad, Doubletree, Embassy Suites and Hampton Inn brands.
Shares in Hilton Group soared 13.4 percent yesterday as details of the talks emerged, ending at 345.5p. Sphere: Related Content
HILTON Group, the hotel and gambling operator, confirmed yesterday it is in advanced talks with Hilton Hotels Corporation (HHC) of the US about a GBP3.6 billion sale of its hotel business, in a deal that would see it split from Ladbrokes, the UK bookmaker the group owns.
HHC, which was founded in 1919 by Barron Hilton, sold the rights to the Hilton brand outside the US in 1964. Ladbrokes, Britain's biggest bookmaker, bought Hilton in 1987, dropping the Ladbrokes name in favour of Hilton after buying the hotel and casino operator Stakis in 1998.
Hilton Group, led by chief executive David Michels, is currently also in talks with Royal Bank of Scotland, among others, over the sale of 18 hotels in the UK in a GBP400 million-plus sale and manage-back deal and further such disposals are inevitable.
Included in that group are Dunkeld House, Edinburgh Airport and the Treetops in Aberdeen, and a spokesman said yesterday that those are likely to be sold separately in a sell-and lease back deal, before any overall sell-off to the US group.
Hilton Group has more than 400 hotels - 70 of which are in the UK - under the Hilton and Scandic brands in 80 countries. HHC owns, manages or franchises more than 2,300 hotels under such brands as Hilton, Conrad, Doubletree, Embassy Suites and Hampton Inn brands.
Shares in Hilton Group soared 13.4 percent yesterday as details of the talks emerged, ending at 345.5p. Sphere: Related Content
REIT Legislation Expected in Germany
MSN Money - Financial Times Business News - September 29, 2005
JPMorgan on Thursday said it was 'almost certain' that a new German government would pass legislation to allow the sale of US-style Reits, or tax-friendly property funds, as it announced the formation of a strategic partnership in such products with Sal Oppenheim, Germany's biggest private bank.
The two banks said they were already engaged in a 'whole string' of beauty parades with German industrial companies, retailers and other groups interested in selling and leasing back their real estate via Reits.
Dieter Pfundt, head of investment banking at Sal Oppenheim, said: 'It may be difficult at the start but this should be a $60bn by 2010.' Bankers are confident that Reits legislation will be passed by the end of next year.
'This is in the interest of Germany as a financial centre. No one is opposed to it,' said Karl Altenburg, head of investment banking in Germany at JPMorgan.
'Reit legislation is almost certain.' Sphere: Related Content
JPMorgan on Thursday said it was 'almost certain' that a new German government would pass legislation to allow the sale of US-style Reits, or tax-friendly property funds, as it announced the formation of a strategic partnership in such products with Sal Oppenheim, Germany's biggest private bank.
The two banks said they were already engaged in a 'whole string' of beauty parades with German industrial companies, retailers and other groups interested in selling and leasing back their real estate via Reits.
Dieter Pfundt, head of investment banking at Sal Oppenheim, said: 'It may be difficult at the start but this should be a $60bn by 2010.' Bankers are confident that Reits legislation will be passed by the end of next year.
'This is in the interest of Germany as a financial centre. No one is opposed to it,' said Karl Altenburg, head of investment banking in Germany at JPMorgan.
'Reit legislation is almost certain.' Sphere: Related Content
French Retailer Casino in $250 Million Sale Leaseback
GlobeSt. com - New York - October 17, 2005
PARIS- French retailer Casino is selling 13 distribution warehouses to a fund controlled by Morgan Stanley for euros 201.5 million ($241.6 million).
A statement by Groupe Casino says that the warehouses, totaling 418,000 sq m, were being sold to Mines de la Lucette. Mines is 77% owned by Morgan Stanley Real Estate Funds. Twelve of the warehouses will be leased back by Easydis, Casino's wholly owned logistics company.
Casino, France's fifth-largest retailer and second-biggest quoted retailer after Carrefour, says the price obtained for the warehouses corresponds to a yield of less than 7%. Sphere: Related Content
PARIS- French retailer Casino is selling 13 distribution warehouses to a fund controlled by Morgan Stanley for euros 201.5 million ($241.6 million).
A statement by Groupe Casino says that the warehouses, totaling 418,000 sq m, were being sold to Mines de la Lucette. Mines is 77% owned by Morgan Stanley Real Estate Funds. Twelve of the warehouses will be leased back by Easydis, Casino's wholly owned logistics company.
Casino, France's fifth-largest retailer and second-biggest quoted retailer after Carrefour, says the price obtained for the warehouses corresponds to a yield of less than 7%. Sphere: Related Content
Tyco Building Near Atlanta Sells for $30.4 Million
Costar Group - October 19, 2005
Teachers Insurance and Annuity Association (TIAA) has plunked down $30.4 million for 201 Greenwood Court, an 800,000-square-foot industrial building in Henry County that is fully leased through late 2013 to medical product maker Tyco Healthcare Group LP. The seller is Chicago-based First Industrial Realty Trust, which was represented by a CB Richard Ellis team led by Chris Riley.
The building is known to most as a former Amazon.com facility, which was the subject of much hype when the company announced in 1999 it would open its largest U.S. distribution center in Henry County. The company eventually shut the center down before it was fully operational. Tyco signed its first lease there in 2003 and expanded to take the entire building in October 2004.
With an estimated rental rate of $2.60 per square foot, the $30.4 million price ($38 per square foot) roughly equates to a cap rate of 6%. That number used to be rare in Atlanta but may become a more common sight on future sales in that range over the coming year, said Greg Ryan, vice president of investments for Atlanta-based developer IDI.
“Real estate is a steady investment and institutional buyers are becoming very aggressive when these high-quality buildings come to market,” Ryan said. “There’s been a 200 basis point fall in cap rates over the last two years and now some of the biggest markets are seeing some sales in the 5.5% range.”
In this case, Ryan said TIAA is a “wise buyer that recognizes the long-term value of real estate” and one that isn’t afraid to pay top dollar for quality assets.
Ryan said Atlanta is part of a core group of five industrial markets - the others are Los Angeles, Dallas, Chicago and New Jersey - that are in demand with institutions. He said the popularity of real estate as an investment class is starting to also effect “secondary” industrial markets like Memphis and Cincinnati as well. Sphere: Related Content
Teachers Insurance and Annuity Association (TIAA) has plunked down $30.4 million for 201 Greenwood Court, an 800,000-square-foot industrial building in Henry County that is fully leased through late 2013 to medical product maker Tyco Healthcare Group LP. The seller is Chicago-based First Industrial Realty Trust, which was represented by a CB Richard Ellis team led by Chris Riley.
The building is known to most as a former Amazon.com facility, which was the subject of much hype when the company announced in 1999 it would open its largest U.S. distribution center in Henry County. The company eventually shut the center down before it was fully operational. Tyco signed its first lease there in 2003 and expanded to take the entire building in October 2004.
With an estimated rental rate of $2.60 per square foot, the $30.4 million price ($38 per square foot) roughly equates to a cap rate of 6%. That number used to be rare in Atlanta but may become a more common sight on future sales in that range over the coming year, said Greg Ryan, vice president of investments for Atlanta-based developer IDI.
“Real estate is a steady investment and institutional buyers are becoming very aggressive when these high-quality buildings come to market,” Ryan said. “There’s been a 200 basis point fall in cap rates over the last two years and now some of the biggest markets are seeing some sales in the 5.5% range.”
In this case, Ryan said TIAA is a “wise buyer that recognizes the long-term value of real estate” and one that isn’t afraid to pay top dollar for quality assets.
Ryan said Atlanta is part of a core group of five industrial markets - the others are Los Angeles, Dallas, Chicago and New Jersey - that are in demand with institutions. He said the popularity of real estate as an investment class is starting to also effect “secondary” industrial markets like Memphis and Cincinnati as well. Sphere: Related Content
Wednesday, October 19, 2005
San Francisco Offices Net Leased to GAP Sold For $171 Million
The Australian - October 18, 2005
THE Australian-listed Tishman Speyer Office Fund has made its second acquisition in a month, a $US171.4 million ($228 million) San Francisco office building that houses clothing retailer Gap Inc. The trust, with a market value of $555 million, raised $71 million last night through an institutional placement. The balance will be funded with debt.
The building, near the San Francisco Giants' baseball stadium, is the fund's third San Francisco property. In September, Tishman Speyer made its first foray into Washington DC, buying a suburban office complex for $US88.5 million. The latest acquisition, at 550 Terry Francois Boulevard, in Mission Bay, south of the CBD, is leased to Gap Inc. It is largely occupied by Gap's Old Navy division, which is progressively relocating from other sites in San Francisco, Boston and New York. Tishman Speyer managing director Carl Shannon said it was a new building, in an increasingly dynamic area.
The new building, bought from ProLogis subsidiary Cattelus Development Corp, was acquired on a 6.8 per cent yield (before acquisition costs) and is leased to Gap until 2017. Mr Shannon said significant rental growth was expected in years two and seven under the lease. Sphere: Related Content
THE Australian-listed Tishman Speyer Office Fund has made its second acquisition in a month, a $US171.4 million ($228 million) San Francisco office building that houses clothing retailer Gap Inc. The trust, with a market value of $555 million, raised $71 million last night through an institutional placement. The balance will be funded with debt.
The building, near the San Francisco Giants' baseball stadium, is the fund's third San Francisco property. In September, Tishman Speyer made its first foray into Washington DC, buying a suburban office complex for $US88.5 million. The latest acquisition, at 550 Terry Francois Boulevard, in Mission Bay, south of the CBD, is leased to Gap Inc. It is largely occupied by Gap's Old Navy division, which is progressively relocating from other sites in San Francisco, Boston and New York. Tishman Speyer managing director Carl Shannon said it was a new building, in an increasingly dynamic area.
The new building, bought from ProLogis subsidiary Cattelus Development Corp, was acquired on a 6.8 per cent yield (before acquisition costs) and is leased to Gap until 2017. Mr Shannon said significant rental growth was expected in years two and seven under the lease. Sphere: Related Content
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