Friday, April 28, 2006

Allied Irish Banks Agrees to €377 Million Sale Leaseback of Dublin HQ

Allied Irish Banks Web Site - April 26, 2006

Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB] today announces that it has entered into certain transactions in relation to its Existing Bankcentre property (excluding the New Bankcentre Development) at Ballsbridge, Dublin 4.

The property has been sold in two lots, to Hibernian Life and Pensions Limited and to Sean Dunne. These purchasers were selected following an open market tender process. The total sum to be paid for the purchase of the properties is €377.7 million in cash.

The Existing Bankcentre comprises of eight adjoining office blocks. The front four Blocks and adjoining land are to be bought by Sean Dunne and will be leased back to the AIB Group on a 20-year lease, with a break clause exercisable by either party after four years and eleven months. The remaining property to be bought by Hibernian Life and Pensions Limited, will be leased to the AIB Group for a period of 20 years. The initial annual rent payable on both lots by the tenant will be €11.6 million per annum and will be subject to adjustment in subsequent five year rent reviews. It is anticipated that the cost will be more than offset by savings and by the benefits derived from the use of the capital.

The capital benefit (i.e. the profit after taxation) to AIB generated from these transactions is in the region of €230 million. AIB will reinvest the capital from the transactions in its core banking business and the transactions are expected to complete during the second quarter of 2006. Sphere: Related Content

Saturday, April 22, 2006

Law Firm Eversheds Signs Long Term Lease for New London HQ Building

Forbes - April 21, 2004

Land Securities Group PLC said it has pre-let One Wood Street, EC2, to international law firm Eversheds LLP for its London headquarters. Eversheds has taken an 18 year lease on all of the 165,000 sq ft office accommodation. The global law firm will occupy all eight floors, with an option to lease back 20,000 sq ft to Land Securities. Wood Street was purchased by Land Securities for 36.1 mln stg in August 2003. Redevelopment of One Wood Street started in 2005 at a build cost of some 50 mln stg. Sphere: Related Content

US EPA Regional HQ in Denver Sold for $95 Million

BUSINESS WIRE - April 21, 2006

Government Properties Trust, Inc. today announced that it has executed a definitive agreement to acquire a 280,000 square foot, nine story building located in the Lower Downtown Historic District in Denver, Colorado for a price not to exceed $95.0 million. The building is being acquired from an affiliate of Opus Northwest, L.L.C. The property is currently under development. The transaction is scheduled to close and be funded upon the later of December of 2006 or upon the completion of the project and acceptance of the property by the tenant.

The General Services Administration on behalf of the Environmental Protection Agency has executed a 10-year lease for the building which will serve as a regional headquarters. Approximately 16,000 square feet of the building will be available for street level retail space. The project includes 225 on-site underground parking stalls and an additional 122 off-site surface stalls are available.

The Company is currently in the process of securing fixed interest rate financing and a forward interest rate lock has been put in place pending completion of the project. Sphere: Related Content

Friday, April 21, 2006

eBay's PayPal Signs 20 Year Lease in West Dublin

TMC Net / Irish Times - April 19, 2006

PayPal, the money transfer arm of online auction giant eBay, is leasing the entire Atrium building at Blanchardstown for an annual rent of around 1.1 million, giving Dublin's suburban office market a major boost after years of double-digit vacancy rates. The e-commerce firm has signed up for two five-storey blocks, which total 6,968.66sq m (73,934sq ft) of space, as part of a major expansion of its Irish operations.

According to market sources, PayPal has agreed a competitive rent of 162 per sq m (15 per sq ft) on a 20-year lease that includes break options. The two buildings are strategically located at the entrance to the Blanchardstown shopping centre and overlook the N3 motorway.

PayPal's decision to lease the entire Atrium building will be viewed as yet another sign that Dublin's suburban office sector is turning a corner after more than three years of plummeting rents and rising vacancy rates. West Dublin was one of the areas worst hit by the meltdown with large-scale office complexes proving almost impossible to let.

Although completed in 2002 by developers Green Property, which also owns the Blanchardstown centre, the PayPal deal is the first letting on the site. The Atrium complex is regarded as one of the finest office buildings in the Blanchardstown area. The two buildings are linked by a full-height, glazed atrium. The scheme also has 111 surface car-parking spaces. Sphere: Related Content

Tuesday, April 18, 2006

Invesco Funds Group Building in Denver Sells for $69.3 Million

Commercial Property News - April 18, 2006

Capital Lease Funding Inc. has acquired two adjacent office buildings in Denver, 4340 and 4350 S. Monaco St. The New York City-based REIT, which specializes in net lease holdings, bought the properties from locally based Challenger South Monaco L.L.C., paying about $69.3 million, or $262.50 per square foot.

Each of the buildings is fully net leased to Invesco Funds Group Inc., a subsidiary of London-based investment management firm AMVESCAP P.L.C., through 2016. Invesco's parent has guaranteed the tenant's lease obligations (currently the firm is rated BBB-plus by Standard & Poor�s Corp. and a3 by Moody's Investors Service).

The four- and six-story office buildings--118,600 square feet and 145,150 square feet, respectively--are on 12.5 acres near the junction of I-25 and I-225 in south Denver. The sale is one of a good many office transactions in the Denver market in recent quarters, indicating strong investor interest in the market. According to the local office of Grubb & Ellis Co., fully 70 office properties traded hands in metro Denver in 2005, twice as many as in the previous year.

CB Richard Ellis represented both the buyer and the seller in the Monaco Street transaction. Sphere: Related Content

MetLife Signs Build-to-Suit for 115,00 Square Foot Office Building in Tampa

BUSINESS WIRE - April 18, 2006

Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, announced today that it has been awarded a build-to-suit lease at Highwoods Preserve for approximately 115,000 square feet by MetLife which already owns and/or leases over 300,000 square feet at this 800,000 square foot campus. Under the terms of the agreement, Highwoods will build a new, four-story office building with deck parking, investing approximately $19.7 million in the project. The building will be 100% occupied by MetLife under a long-term lease agreement. It is expected to be completed in the first quarter of 2007. Sphere: Related Content

Covenant Transport Enters $30 Million Sale Leaseback of HQ

SEC Edgar Web Site - April 3, 2006

On April 3, 2006, Covenant Transport, Inc. entered into a purchase and sale agreement on its headquarters facility, a maintenance facility, a body shop, and approximately forty-six (46) acres of surrounding property in Chattanooga, Tennessee for a purchase price of $30 million. Concurrent with the sale of the Property, Covenant entered into a twenty-year lease agreement whereby Covenant will lease back the Property at an annual rental rate of approximately $2.5 million, subject to annual rent increases of 1.0%.

Under the Lease Agreement, Covenant-TN has eight (8) consecutive options to extend the term of the lease by five (5) years for each such option. If the Purchaser decides to sell or otherwise convey title to the Property during the term of the Lease Agreement, Covenant-TN shall have a right of first refusal to purchase the Property on the same terms offered to any third party. Sphere: Related Content

Danish Firm NKT Completes $34 Million Sale Leaseback of US Properties

NKT Web Site - April 12, 2006

Nilfisk-Advance A/S has sold two properties in the United States for $34.5 million. Transfer of the properties will take place on April 12, 2006. Proceeds realised from the sale will be around 100 mDKK. The transaction comprises a 44,000 m2 property in Plymouth, Minnesota, and a 21,500 m2 property in Springdale, Arkansas. The former houses both Nilfisk-Advance's US head office and production facilities, and the latter contains production and storage facilities. Nilfisk-Advance has signed 10-year leases on the facilities. Sphere: Related Content

UK Gym Chain Next Generation Seeking Sale Leaseback of 14 Properties

The Sunday Times - April 16, 2006

The Livingstone brothers, two of Britain’s biggest property magnates, are this weekend on the verge of extending their empire into the fitness industry with a £200m (€290m) raid on the Next Generation chain of upmarket gyms, writes Mark Kleinman.London & Regional, the property firm run by Ian and Richard Livingstone, is in exclusive talks with UBS, the investment bank handling the sale, following the withdrawal of rival bidders Esporta and Whitbread.

A sale will crystallise multi-million payouts for Next Generation shareholders including John Magnier and JP McManus, the Irish racing tycoons, Scottish & Newcastle, and David Lloyd, the former tennis professional. London & Regional is understood to be planning a sale and leaseback of Next Generation’s 14 wholly owned sites. Sphere: Related Content

Tesco Enters GBP 200 Million Sale Leaseback of Two UK Stores

Yahoo Finance - April 13, 2006

The UK's largest food retailer Tesco PLC has sold a 50 pct stake in two of its stores to Morley Fund Management for 100 mln stg as part of a sale-and-leaseback deal to establish a real estate investment fund, Morley's property fund manager Andrew Appleyard said.

Both Morley and Tesco's stakes in the properties -- Tesco Extra stores in Coventry and Kent -- are included in the 200 mln stg fund, Appleyard said. The agreement allows for the inclusion of other assets in the future and the fund could go up by an extra 60 mln stg if expansion plans in Coventry receive planning permission, Appleyard said. If Tesco wants, he added, the fund could keep on growing through more property assets. Rents on the stores increase about 2.5 pct per year, Appleyard said.

Tesco has been examining a variety of options to exploit its property assets. In late March, the firm said it was in the early stages of considering whether to put all or part of its 12 bln stg freehold portfolio in a Real Estate Investment Trust (REIT). Sphere: Related Content

TAC Seeking $70 Million HQ Leaseback in Australia

The Australian - April 11, 2006

The Australian government-controlled Transport Accident Commission has told developers a waterfront precinct known as the 'western wedge' is its preferred location for a 16,000sqm office building and 500 car spaces. TAC will lease back the building for an initial 15 years.

TAC wants to move by the start of 2009, giving developers only until the end of the month to register in a fast-tracked expressions of interest process run by PricewaterhouseCoopers. But with the TAC willing to pay an initial rent of $290 a square metre in a CBD where the current going rate is only $220/sqm, the offer has attracted a Melbourne Cup field, understood to include most major major developers and funds.

The third-party insurance authority is one of Australia's largest, with assets of $7.4 billion and liabilities of $6 billion. Its current head office is in Melbourne at the Allco-owned 222 Exhibition Street, where it occupies about 13,230sqm. Sphere: Related Content

Wednesday, April 12, 2006

KarstadtQuelle to Sell and Leaseback Headquarters and Remaining €600 Million Property Portfolio

MarketWatch - April 2, 2006

KarstadtQuelle, the troubled German retail group, plans to sell further properties, including its headquarters building, on top of a €4.5bn ($5.45bn) deal last week as part of sweeping restructuring measures that will all but end its days as a property owner.

A further €600m worth of properties have been lined up for sale by the end of the year, including the KarstadtQuelle 1960s head office building in Essen, the company confirmed on Sunday. Details of a first package to be sold would be announced within the next two weeks.

The latest sell-offs would leave the group with "hardly anything" in its property portfolio, the company said. KarstadtQuelle operates one of Germany's best-known high-street department store chains, as well mail-order businesses. Sphere: Related Content

ING Bank Offices in The Hague Acquired by Evans Randall

Europe Real Estate - March 29, 2006

HSH Nordbank has financed the acquisition of the landmark office property Haagse Poort in The Hague on behalf of U.K. investment bank Evans Randall. The Bank has agreed to provide €180 million in long-term financing and €30 million in equity interim financing. The structure of the financing also includes derivatives for interest-rate hedging purposes.

The sale by KanAm to Evans Randall constitutes the largest transaction involving a single property on the Dutch market in 2006. The landmark building with nearly 68,000 sqm in space for lease on 18 storys is fully leased to ING Bank of the Netherlands on a long-term basis. This purchase marks the first investment by the London-based investment firm on the European continent.

The Bank carried out this off-market transaction within a few days, in collaboration with its Dutch advisers CBRE and Boekel de Nerée. The Netherlands remains in focus even though the number of attractive office properties has become very small and vacancy rates remain high. Initial net returns on offices are between 6 and 7% in the central locations of metropolitan areas. For very good locations and properties with good tenants and long-term leases, initial net returns of approx. 5.5 % to 5.8%. Sphere: Related Content

Friday, April 07, 2006

Computer Associates Seeking $195 Million Sale Leaseback of Long island HQ

Long Island Business News - March 31, 2006

CA, until recently known as Computer Associates, has placed their headquarters on the market with plans to lease back the site for 15 years with a 10-year renewal option, followed by two five-year options. The property has three buildings totalling 778,000 square feet. The move would infuse the company with cash while letting it remain at the 14-year-old, 60-acre corporate headquarters located off Exit 58 of the Long Island Expressway.

In a statement, CA said it “is exploring the sale/leaseback of the Islandia facility and a number of locations throughout the world,” adding that leasing “office space is standard business practice and frees up capital that can be used to invest in the business.” The company has more than 2,000 employees in Islandia.

CA didn’t stipulate how much it would like to pay in rent, but industry sources estimate it will be slightly below market rates, which averaged $20.25 per foot. The asking price of $250 per square foot is steep, but partially attributable to the site’s potential for additional development. In 1990, Islandia approved a total of 1.48 million square feet to be built in three phases on the main campus. An approved second phase that included a four-story office building and a cafeteria/training center never got off the ground. While CA can’t guarantee the development would be allowed now, Pennetta pointed out that Islandia is business friendly.

The building is being marketed by Jones Lang LaSalle Americas Inc. Sphere: Related Content

Thursday, April 06, 2006

Sony Europe Completes €121 Million Pan-European Sale Leaseback

Sony Europe - March 27, 2006

Sony Europe and Macquarie Global Property Advisors (MGPA) have completed an agreement for the sale and leaseback of eight office and logistics properties currently owned by Sony for €121.1 million. The portfolio spans six European countries - the United Kingdom, Italy, the Netherlands, Belgium, Switzerland and Germany and includes some of Sony's significant buildings in each of these markets. Sony will remain the major tenant of the portfolio, leasing back 65% of the property from MGPA. The properties have been acquired on behalf of MGPA's European property fund, MGP Europe Fund II. Sphere: Related Content

Australian Defence Housing Authority Enters $97 Sale Leaseback of 178 Houses

The Australian - April 05, 2006

WESTPAC Funds Management plans to launch Australia's first residential property trust after buying $97 million worth of property from the housing arm of the Australian Defence Force. The Defence Housing Authority sold the 178 houses to WFM under its sale and lease-back program, on lease terms ranging from nine to 12 years. Westpac also said it was in preliminary negotiations to buy a further $300 million of residential property from the DHA.

The DHA typically develops housing for members of the defence force and then sells those properties to retail investors on a sale and lease-back basis. Half of the houses were located in Sydney with the remainder split between southeast Queensland and the ACT. Westpac Specialised Capital Group general manager Sean McElduff said the group planned to take the residential property trust to the market within three months but had not yet decided whether it would be listed. "Residential REITs are a well-developed asset class in the US and we believe such an offer will be well received by Australian investors," Mr McElduff said.

Mr McElduff said the purchase was a long-term play counting on capital appreciation, with properties bought on a gross yield of between 3 per cent and 4 per cent. The DHA whas agreed to re-paint and re-carpet properties when leases expired and fix any broken appliances for the duration of the tenancy. The WFM sale was the first time DHA properties had been sold to non-retail investors. Sphere: Related Content

Swedish Prosecution Authority Signs 20-Year Lease For New HQ in Stockholm

Nordisk Renting AB - April 6, 2006

Nordisk Renting AB has signed an agreement with Skanska regarding the acquisition of another property in Flemingsberg, Greater Stockholm. The building will house Sodertorns Public Prosecution Office, and a 20-year lease has been signed with the Swedish Prosecution Authority. Skanska will construct the property, which is adjacent to the Sodertorn District Court.

The office building is another property in the civil legal centre in Flemingsberg, which is being built by Skanska and acquired by RBS Nordisk Renting on completion. In February 2006 RBS Nordisk Renting and Skanska reached an agreement regarding the acquisition of the new Sodertorn District Court.

The new property is being built adjacent to the district court and will be a modern regional office for the 150 or so people who work for the Public Prosecution Office in Sodertorn and the wider region south of Stockholm. The new property will total around 5,000 square metres, and is planned for tenant occupation in July 2007. Sphere: Related Content

Linklaters HQ in London for Sale for £330 Million

Freeman News - March 29, 2006

Linklaters headquarters at Milton and Shire Houses, Silk Street, London, EC2 is to be sold by German Fund Manager Commerz Grundbesitz Investmentgesellschaft mbH. The landmark office buildings total 430,000 sq ft and were substantially redeveloped by Development Securities and pre-leased to Linklaters in 1996. Linklaters leases both buildings on a total of eight leases, which have staggered rent reviews but all expire in September 2021.

Whilst the two tower buildings are connected on the lower levels, they can be occupied and owned separately with each having its own reception areas, atrium and service plant. The buildings are well located to benefit from a number of significant developments in recent years including Citypoint and Slaughter and May’s headquarters, and forthcoming developments of neighbouring sites including 500,000 sq ft British Land tower at Ropemaker Place.

A guide price of £330m is being quoted, which equates to a net initial yield of circa 5.25% based on the current passing rent of £18,256,451 pa. The rent equates to circa £41.60 sq ft overall for the office accommodation. Sphere: Related Content

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