Saturday, December 31, 2005

Marriott Sells Land Under 75 Hotels

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

IBM Completes Sale Leaseback of £120 Million UK Office Portfolio - 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

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

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

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

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

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

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

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

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

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

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

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

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

$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

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

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

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

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

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

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

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

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

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