Wednesday, May 31, 2006

WTorre Building Large Sale Leaseback Portfolio in Brazil

Brazillian newspaper Gazeta Mercantil reports that Brazilian real estate company WTorre has created a new division to pursue sale and leaseback investments totalling R$1billion over the next three years. Properties will include offices, industrial facilities, distribution centers and stores occupied by large corporations.

The new division was created in 2005 when Brazillian banks started to sell off property assets. Last year the Pao de Acucar chain sold a total of 28 hypermarkets and 32 supermarkets for R$1,29billion to an investment fund owned by businessman Abilio Diniz. WTorre has already negotiated three acquisition contracts with multinationals valued at R$400mil including one valued at R$200mil for eight industrial facilities leased back for a term of 50 years. Sphere: Related Content

Wednesday, May 24, 2006

CA Nearing $195 Million Sale Leaseback of Long Island HQ

Software giant CA Inc. is poised to sell its sprawling 778,000-square-foot Islandia headquarters to Boston-based investment group CRIC Capital, said a source familiar with the deal.

A Jones Lang LaSalle Americas Inc. broker representing CA on the deal declined to comment. CRIC did not return multiple calls and e-mail messages seeking comment.

It is unclear if this deal includes the entire 60-acre campus. The price is also not known, but in its March offering memorandum, CA, formerly known as Computer Associates, set the price at $195 million. At $250 per square foot, that is one of the highest asking prices for a Long Island office building.

CA has been dogged by rumors that it wants to leave the Island – fueled, in part, by CA leasing 67,000 square feet in Manhattan last year – but has said it remains committed to staying on Long Island. The company boasts 150 offices in more than 45 countries.

In the offering memorandum, CA said it aims to lease the site back for 15 years with a decade renewal option, followed by two-five year options.

In 1990, the Islandia Board of Trustees approved a total of 1.48 million square feet to be built in three phases, but only a little more than half was built. Among the projects set aside was a four-story office building and a cafeteria/training center. Sphere: Related Content

Sunday, May 21, 2006

Homburg Invest Acquires Infineon Technologies HQ in Munich for EUR 388 Million

Homburg Invest Inc. has reached an agreement to acquire the newly built headquarters and development centre of Infineon Technologies AG in Munich, Germany from Alliance Group, a Dutch/Swiss investment group with CommerzLeasing und Immobilien AG for EUR 388.5 million consisting of EUR 275,5 million assumption of debt and EUR 110 million in cash.

The acquisition is expected to close on or about June 30, 2006. The property is leased on a triple net basis to Infineon Technologies AG for twenty years. Infineon has a purchase option after 15 years.

The low rise campus was built between 2003 and 2005 and conists of six buildings, each app. 23,000 sqm in size and an underground parking facility for 1,980 cars. Access to parking, all situated beneath the buildings, is via an underground ring road. The campus covers approx. 150,000 sqm floor space above ground including a café, restaurant, various shops, a casino, sports facilities, a health centre and a daycare center.

The complex is situated close to the municipal border in Munich's green belt about 20 minutes to the centre of Munich. Sphere: Related Content

Saturday, May 20, 2006

MTS Allstream Seeking Sale Leaseback of Winnipeg HQ

Globe and Mail - May 16, 2006

In the midst of its latest restructuring program, Manitoba Telecom Services Inc. is putting two buildings in its home town up for sale.

MTS purchased its 24 story Winnipeg headquarters at 333 Main Street in 2002, and the 13 story building behind it at 191 Pioneer Avenue in 1982. MTS will list the downtown properties with Cushman & Wakefield LePage, MTS spokeswoman Michelle Bailey said yesterday.

Despite the "For sale" sign on those buildings, MTS has no plans to move. The 1,225 employees who work in those sites will stay put because the company plans to lease the office space, Ms. Bailey said.

"This is an opportunity for us to take advantage of the property values having gone up in this particular area," Ms. Bailey said. Sphere: Related Content

Saturday, May 13, 2006

Blue Circle Enters 25 Year Lease for Birmingham Offices

Estates Gazette reports that a 60,000 square foot office development close to Birmingham International Airport is being sold to M&F Ireland for £21.75m by Birmingham-based developer Stoford Developments. Blue Circle pre-let the building at the NEC, Solihull on a 25-year lease. The property was reportedly sold at an initial yield of less than 5.25% which is believed to be a record for the M42 corridor. Sphere: Related Content

Friday, May 12, 2006

Kings Supermarkets Completes $48.4 Million Sale Leaseback of NJ Stores

PRNewswire/Firstcall - May 10, 2006

Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it completed a sale-leaseback transaction with Kings Super Markets, Inc., a premium food retailer with 26 stores primarily located in northern New Jersey. Proceeds from the transaction helped to fund the $61.5 million acquisition of Kings Super Markets, Inc. by an investor group consisting of Angelo, Gordon & Co., MTN Capital Partners LLC, and Bruce Weitz, a retail executive with over 30-years senior management experience. Mr. Weitz, who has formerly served as CEO of Duane Reade Drugstore and President of First National Supermarkets, will become the new Chairman of Kings.

As part of the acquisition financing, W. P. Carey's affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA(R):16 - Global), acquired six grocery stores for $48.4 million and leased them back to Kings Super Markets under long-term triple net leases. The six grocery stores are located in Summit, Livingston, Maplewood, Montclair, Morristown, and Cresskill, NJ, areas known to be among the top suburban retail markets in the U.S. Sphere: Related Content

Thursday, May 11, 2006

Baxter BioScience Enters Sale Leaseback on CA Offices

Baxter BioScience is selling its office building in Westlake Village with plans to lease back the space. Baxter BioScience is a part of Baxter International Inc., based in Deerfield, Ill. The BioScience division, which also owns a manufacturing facility in Thousand Oaks, employs a total of 900 people at the two locations.

Though selling the office building, Baxter BioScience does not plan to scale back or leave the area, said spokeswoman Amy Cynkar. Instead, the company will enter into a long-term lease back agreement to remain in the part of the building it already uses. "We're only occupying half the building," Cynkar said. "It was mainly a financial decision." Baxter BioScience has sublet some space in the office complex since moving into the former Verizon building.

The 426,000-square-foot building was sold for an undisclosed amount to Tishman Speyer Properties. Sphere: Related Content

Wednesday, May 10, 2006

ShopKo Agrees to $815 Million Sale Leaseback of 178 Stores

Sun Capital Partners, a Boca Raton, Fla.–based private equity firm, is selling its ShopKo Stores properties to Spirit Finance Corp. in an $815.3 million sale-leaseback, making this the biggest such transaction ever in the U.S. retail real estate industry.

Sun Capital bought ShopKo in December for $880.8 million plus debt.

The deal involves 112 ShopKo and 66 Pamida sites. The seller has agreed to lease the ShopKo stores for 20 years and the Pamida properties for 15.

Up to now Kmart has held the record for a sale-leaseback transaction, according to a report in The Wall Street Journal. The retailer raised $621 million in such a deal during its bankruptcy proceedings.

The ShopKo discount stores, which measure about 90,000 square feet each on average, operate in open-air centers and as stand-alone locations in small cities. Pamida operates 30,000-square-foot general merchandise stores in rural locations.

Sale-leaseback transactions have grown increasingly popular among retailers eager to raise cash. Albertsons, J.C. Penney and Wal-Mart have all struck such deals, as have drugstores, fast-food chains and other stand-alone retailers. In recent years rival drugstore giants Walgreen Co. and CVS Corp. have both completed the occasional sale-leaseback deal. Walgreen leases 80 percent of its roughly 5,000 stores. Sphere: Related Content

Monday, May 08, 2006

SJ Berwin HQ in London Sells for Record Low Yield

Property Week reports that a new city benchmark yield was recently set after Blackstone agreed to sell 10 Queen Street Place in the City of London to Morley Fund Management for £145m. The price reflects an initial yield of 4.5% which is reportedly a record for a large tenanted City building in this cycle and reflects the fact that there is a pre-agreed rental increase at the building at the next rent review. The acquisition is for Morley's Norwich Union fund.

Blackstone leased 180,000 sq ft at 10 Queen Street Place, formerly known as Thames Exchange, to law firm SJ Berwin in 2004 on a 20-year lease at around £36/sq ft. Blackstone acquired the 210,000 sq ft building from Scottish Amicable in 2000 for £73m and redeveloped it following a lease surrender by HSBC. Sphere: Related Content

Saturday, May 06, 2006

Healthways Commissions $60 Million HQ Build-to-Suit Near Nashville

Commercial Property News - May 05, 2006

Highwoods Properties Inc. will develop the new corporate headquarters for Healthways Inc., the largest provider of specialized, comprehensive health and care support programs and services. Highwoods will construct a five-story, 255,000-square-foot Class A office building, which will also have a structured parking, on a 14-acre lot of land in Cool Springs, a submarket of Nashville, Tenn., which Highwood owns. Upon its completion, the building will be 100 percent occupied by Healthways under a long-term lease agreement.

The estimated construction cost for the project is $60 million. Construction is scheduled to begin in the fourth quarter of 2006 with an estimated completion date of late 2007 or early 2008. Sphere: Related Content

Friday, May 05, 2006

Duckwall-ALCO Signs $11 Million Sale Leaseback of 11 Stores

Discount retail chain Duckwall-ALCO Stores Inc. of Abilene today said it has agreed to sell 11 ALCO locations to Realty Income Corp. for approximately $11.2 million.

It is anticipated that the transaction will close in the next few weeks, with the exception of one store in Texas, which is under construction. The company said cash proceeds from the transaction will be used to repay long-term debt.

As part of the deal, Duckwall-ALCO will continue operations at the 11 locations a 15-year sale-leaseback agreement. Sphere: Related Content

Point.360 Closes $16 Million Sale Leaseback - May 4, 2006

United Trust Fund of Miami and GE Real Estate have executed the sale-leaseback of a 65,00-sf office and warehouse building. The partners bought the property, which is at 2701 Media Center Drive, from video digital services firm Point.360 for more than $16 million.

As part of the deal, Point.360 has signed a 15-year net lease to remain in the building. The company is one of the largest providers of high-definition digital mastering, data conversion and video asset management services to the entertainment and advertising industries.

The facility is a two-story structure comprising approximately 20,000 sf of office space, with the balance of the space a climate-controlled warehouse. The building was developed in 2001. Sphere: Related Content

ICA Closes $117 Million Sale Leaseback of 25 Swedish Supermarkets

Commercial Property News - May 05, 2006

ING Real Estate of the The Hague, Netherlands, bought a portfolio of 25 supermarkets in Sweden this week from ICA, a Swedish retailer, for €93 million ($117 million U.S.), in a sale/leaseback transaction. The 25 ICA standalone stores in the southwest of Sweden will be added to the new ING Real Estate Nordic Property Fund, a non-listed fund for global institutional investors expected to launch in the fourth quarter.

ING acquired the portfolio of ICA supermarkets at an initial yield of 5.5 percent. Sphere: Related Content

Wednesday, May 03, 2006

Human Genome Sciences Enters $425 Million Sale Leaseback of HQ and Lab Complex

BioMed Realty Trust Web Site - May 2, 2006

BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has signed a definitive purchase and sale agreement with Human Genome Sciences, Inc. (Nasdaq: HGSI) to acquire Human Genome Sciences' large-scale manufacturing and headquarters office and laboratory facilities located in Rockville, Maryland. The portfolio includes a total of approximately 925,000 rentable square feet of existing laboratory, office and manufacturing space, with the headquarters facility consisting of three recently constructed buildings and a parking structure, as well as undeveloped land that management estimates can support over 500,000 rentable square feet of additional laboratory and office space. The total purchase price is approximately $425 million, excluding estimated closing costs. BioMed expects the initial capitalization rate for the acquired portfolio to be in excess of nine percent. The acquisition is anticipated to close in the second quarter of 2006, and is subject to customary closing conditions.

Human Genome Sciences, a public biopharmaceutical company with a pipeline of novel protein and antibody drugs directed toward large markets that have significant unmet medical need, will lease the buildings pursuant to 20-year triple-net leases. The leases provide for a security deposit equal to one year's rent, and provide HGSI with the right to extend each lease for two 10-year terms and to repurchase the properties under certain circumstances. Sphere: Related Content

Monday, May 01, 2006

West LB's London Headquarters Sold for £325 Million

Irish Times - April 26, 2006

David Arnold's property investment company D2 Private has paid over €468 million (£325 million) for Woolgate Exchange, one of the City of London's most prestigious office buildings.

Built five years ago, the 32,609sq m (351,000sq ft) building is let in its entirety under a long-term lease to West LB, one of Germany's leading international banks, as the company's UK headquarters. The acquisition will provide the new owners with a net initial yield of 5 per cent. The deal was funded by Anglo Irish Bank.

The Dublin-based D2 Private was set up by Arnold last year with Deirdre Foley, a former director of Derek Quinlan's investment company, Quinlan Private. D2's chairman is Brendan O'Mara, who is also chairman of Ireland's largest quantity surveyors firm, Bruce Shaw.

So far, the company has acquired properties worth over €720 million (£500 million) in London, including the Woolgate Exchange. It plans to further significantly expand its portfolio this year. Last year D2 Private bought the Richard Rogers-designed Marks & Spencer headquarters in Paddington for around €201 million (£140 million) and a 2,323sq m (25,000sq ft) refurbished office building in Wardour Street, Soho for about €20 million (£14 million), which is let to The Moving Picture Company as their London headquarters.

Last month in Dublin the company also acquired Brooklawn House, an office investment in Ballsbridge, for approximately €47 million. Sphere: Related Content

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