Thursday, August 31, 2006

Remington Financial Arranges $142,250,000 for Sale Leaseback of Office and Warehouse Portfolio

Business Wire - August 30, 2006

Remington Financial Group, Inc., a real estate investment bank headquartered in Philadelphia, PA, recently secured $142,250,000 in debt and bridge equity financing on behalf of an undisclosed joint venture. The joint venture, comprised of a local operator and institutional equity investor, was formed to acquire a portfolio of 14 office and industrial properties located in the Midwest and Southeast U.S. The portfolio's total purchase price amounted to $150MM for a total of 2.7MM square feet of space. Sphere: Related Content

Anthem Pursuing Sale Leaseback of 100 Acre Regional HQ in Connecticut - August 31, 2006

The 100-acre Anthem Blue Cross & Blue Shield of Connecticut headquarters at 370 Bassett Road is for sale, a company official confirms. Jones Lang LaSalle, a major player in property and corporate facility-management services, will be "officially" posting the listing in the next few weeks, according to Karen A. Nobile, Anthem's director of corporate communications.

In a statement, Nobile said the decision to sell the property and pursue a long-term lease arrangement stems from a comprehensive company evaluation, underway since 1999, "to evaluate the pros and cons of owning versus leasing real estate; and specifically looking at a sale lease-back arrangement along the lines of what a growing number of national firms have implemented as a financial best practice."
The property contains four commercial buildings totaling 574,748 square feet.

Nobile says Anthem "intends to lease back on a long-term basis 100 percent of the office space it is currently occupying, which represents approximately 80 percent of the office capacity" at the site. The selling price will be based on competitive bidding, she adds. Sphere: Related Content

Wednesday, August 30, 2006

Main Event Entertainment Considering Sale Leaseback of Bowling Alleys in Texas

The Australian - August 29, 2006

Macquarie Leisure Trust has made its first offshore play, paying $59 million for six tenpin bowling alley complexes in Texas. Macquarie Leisure bought the centres through US-based private company Main Event Entertainment Holdings, and the deal includes paying the former directors of that company up to $8 million in "earn-out" fees, based on future profits.

"Main Event is one of the largest operators of indoor family entertainment centres in North America's southwest, with six established sites in Dallas, Fort Worth, Austin and Houston, Texas," the group said.

Each centre covers between 6000sqm and 8000sqm and includes a 28-lane tenpin bowling alley, restaurant, bar and arcade video games. Each centre also includes a "laser tag" facility, an electronic shooting game played by opponents wearing laser packs.

The group had bought the properties' freehold titles but would consider selling and leasing back those properties because the returns were better. Earnings before income tax, depreciation and amortisation would provide a 20 per cent return for the freehold complexes and about 47 per cent for leasehold complexes. Sphere: Related Content

Tuesday, August 29, 2006

Royal Mail Pursuing Sale Leaseback of 180 Postal Properties

Daily Telegraph - August 27, 2006

Royal Mail has embarked on a wholesale clear-out of its property portfolio. The move is part of the group's attempt to become more commercial in the wake of the opening up of the postal market to competition earlier this year. It is looking to dispose of 130 of its disused post offices, sub post offices and delivery centres that are loss making. It will also transfer of ownership of a further 180 properties to a commercial buyer.

The move comes after Royal Mail executives revealed that a commercially viable postal network would comprise just 4,000 post offices, compared with the current 14,500. Royal Mail said the 310 properties represented only 2.9 per cent of its total operating space and that it intended to lease back any property that it still required.

The funds raised from the disposal will be used to modernise Royal Mail's facilities and equipment. The company expects to generate cost savings in the region of £5m. Sphere: Related Content

Sunday, August 27, 2006

AIB Seeking Eur 80 Million in Sale Leaseback 12 Dublin Bank Branches - August 25, 2006

AIB is to sell and leaseback 12 of its Dublin branches in a deal that should net the Republic's biggest bank around €80 million. It intends to use the funds to meet strong demand for lending from its clients, it said. The move follows the sale and leaseback of AIB's Ballsbridge headquarters - in two lots, in 2005 and last April - raising €746 million.

Twelve of AIB's Dublin branches will be advertised for sale from today by its advisers, Hamilton Osborne King. The branches being disposed of are in Artane, Clonskeagh Road, Crumlin Road, Dame Street, Morehampton Road in Donnybrook, Drumcondra, Dundrum, Dun Laoghaire, 37/38 O'Connell Street, Ranelagh, Stillorgan and Tallaght.

All of the buildings will be leased back to AIB for 20 years and will continue to operate as AIB branches. The properties produce rent rolls of between €155,000 and €590,000 with a total income of €3.28 million.

Yesterday, the bank said: "AIB's sale and leaseback of a number of its premises, including its head office building in Ballsbridge, enables the bank to further grow its business by freeing up capital to fuel lending growth to satisfy increasing customer demand in a continuing strong economy." The closing date for offers is September 21st and the bank has also indicated that it may sell more of its 275 branches as part of its efforts to generate capital for lending. Sphere: Related Content

NPC International Agrees to $59 Million Sale Leaseback of 89 Pizza Hut Restaurants

MarketWatch / Business Wire - August 25, 2006

Realty Income Corporation today announced that it has entered into an agreement to acquire a portfolio of 89 Pizza Hut properties for $59 million from NPC International, Inc.

The Company will acquire 89 existing stores subject to long-term, triple-net lease agreements. The restaurants have, on average, approximately 3,000 leasable square feet situated on an average lot size of approximately 37,000 square feet with an average purchase price for each property of approximately $663,000. The 89 properties are located in 13 states. Realty Income plans to hold approximately $58 million in its core portfolio as long-term investments and will place approximately $1 million in its Crest Net Lease, Inc. subsidiary for future sale. Realty Income also intends to acquire an additional 11-unit Pizza Hut property portfolio sometime subsequent to the closing of this transaction.

NPC International is the largest Pizza Hut franchisee and the largest franchisee of any restaurant concept in the world. Founded in 1962, the company currently operates approximately 800 stores in the Midwest, South and Southeast. NPC stores comprise approximately 13% of the domestic Pizza Hut restaurant system and 17% of the domestic Pizza Hut franchised restaurant units.

The stores being acquired by Realty Income represent prime retail locations within the Pizza Hut retail system and are seasoned stores that provide strong unit level cash flow rent coverages. Sphere: Related Content

CA Inc. Agrees to $204 Million Sale Leaseback of Long Island HQ

CoStar Web Site - August 24, 2006

Software firm CA Inc. (NYSE:CA) agreed to a sale-leaseback of its world headquarters at One CA Plaza in Islandia, NY, to private investors Island Headquarters Operators LLC and Islandia Operators LLC for $204.3 million, or approximately $262.50 per square foot. CRIC Capital LLC, in partnership with Boston, MA-based Prudential Real Estate Investors, manages the investment group.

The leaseback portion of the agreement included a 15-year term with an option for CA to renew the term up to 35 years, according to a filing with the U.S. Securities and Exchange Commission. The monthly base rent is $1.26 million with an annual increase of .78% through year 11. After year 11, the rent will remain constant until the initial term expires.

The Long Island campus is a 60-acre site that includes three connected buildings totaling approximately 778,000 rentable square feet. The Class A complex includes: Central Tower, with six-stories and a lower level, a two-story Annex Building and a two-story Atrium Building. The 14-year-old property went through an upgrade, expansion and partial renovation in 1999.

Jones Lang LaSalle's Washington, DC capital markets team, assisted by JLL's Manhattan capital markets team, worked with CA on the sale-leaseback of the property. Sphere: Related Content

Friday, August 25, 2006

Whirlpool Enters $600 Million Build-to-Suit Agreement for 11 Distribution Centers

Property - August 23, 2006

Local property trust DB RREEF has agreed to spend $600 million to acquire Whirlpool logistics facilities across the globe. The new investment and building program with US-based Whirlpool Corporation includes 11 new global logistics facilities across the USA, Canada and Poland.

The agreement with Whirlpool will eventually see DB RREEF progressively acquire over a three year period nine state-of-the-art industrial distribution facilities in the USA and Canada as well as two factory distribution centres in the USA and Poland, totalling approximately 10 million sq ft.

Each of these centres will be fully leased to Whirlpool for 10 years, with a further four, 5-year options.

Whirlpool is the world’s leading manufacturer and marketer of home appliances and is ranked number 152 on the 2006 Fortune 500 list with worldwide sales in excess of $US19 billion per annum.

The first distribution centre of 500,000 sq ft is currently under construction and due for completion in the first quarter of 2007. Further sites have been secured for a distribution centre of 500,000 sq ft to be built in Toronto, Canada ad two factory distribution centres to be built in the Midwest, USA and Wroclaw, Poland. Site selection for the other seven distribution centres to be located in the USA and Canada, is well advanced ranging in size from 300,000 sq ft to over 1,000,000 sq ft.

Whirlpool Corporation’s Director of Global Corporate Real Estate, Lee Utke said the investment program gives Whirlpool maximum flexibility with respect to the ultimate location and size of the individual distribution centres. Sphere: Related Content

Moody's Rates Eur 1 Billion in CMBS Secured by Vendex Stores Portfolio

Moody's Investors Service - August 22, 2006

The transaction represents the securitisation of a loan secured by 70 retail properties and 3 car parks in the Netherlands, used to re-finance a bridge loan provided by NIBC Bank N.V. and ING Real Estate Finance N.V. In November 2005 a consortium of IEF Capital, Bouwfonds Asset Management and Stichting Pensioenfonds voor de Gezondheid, Geestelijke en Maatschappelijke belangen (better known s "PGGM") acquired the real estate portfolio of Vendex KBB which was sold by public auction. The sale was structured via a share deal.

The portfolio of properties consists of 70 high street retail properties and 3 car parks with an average age of approximately 36 years, a gross floor area of 543,133 square meters and 1,022 parking spaces. All properties are rented out on long term 10-25 year, contracts to operating companies of the Maxeda group, with Hema B.V. representing 44%, Magazijn "De Bijenkorf" B.V. 28%, Vroom & Dreesmann Warenhuizen B.V (“V&D”) 21% and the car parks 7% of the €69 million U/W annual gross rent. The properties are fully occupied. Table 1 in Appendix shows the U/W market value, vacant possession value (VPV), gross rent and ERV for each tenant. The total portfolio U/W market value is €1.37 billion, the VPV is €1.39 billion; [1.5]% above the market value due to the reversionary potential of the properties (U/W gross rent €69 million, ERV €78.4 million).

The portfolio was acquired in November 2005. The fiscal book value of the portfolio amounts to approximately €111 million that creates a deferred tax liability in case of a sale of the assets. In case of the enforcement of the mortgage, the Issuer will rank prior to the tax authorities.

Although the three tenants are separate legal entities their respective financial
obligations are guaranteed by their joint indirect parent Maxeda B.V. (former Vendex KBB B.V.). Victoria Acquisition III B.V. (rated B1) is the parent company holding 100% of the shares in Maxeda. Maxeda is a leading non-food retailer in the Netherlands, and is active in six other European countries: Belgium, Luxembourg, Denmark, Germany, France and Spain.

The tenants to a large extent operate their retail format independently as they have different market focus. HEMA is a unique general merchandise retailer offering a wide range of attractively designed, good value, everyday household items, under the HEMA brand name. V&D is the only national middle-market department store chain in the Netherlands. V&D offers a wide variety of products in several categories, including apparel, lifestyle and home entertainment, mostly under its own labels. Bijenkorf is the only national up-market department store chain in the Netherlands. Bijenkorf offers a wide variety of up-market products, including apparel, cosmetics, accessories, household goods, leisure goods, and fine goods, with international premium brands and A-brands as well as private label brands. Sphere: Related Content

Monday, August 21, 2006

WestLB Completes Sale Leaseback of 11 Building Real Estate Portfolio

WestLB Web Site - August 17, 2006

WestLB nal real AG and Sireo have completed the sale and leaseback of a portfolio of selected international buildings.

The transaction contains 11 properties in Germany, France, United Kingdom, Hong Kong, Italy, Turkey and Luxembourg. The majority of properties will be fully leased back by WestLB predominately for long-term.

“We are taking advantage of the strong demand for quality office space to sell these buildings and re-invest the capital in our core banking activities” said Klaus Michael Geiger, the board member responsible for this transaction in WestLB.

“We are taking advantage of the strong demand for quality office space to sell these buildings and re-invest the capital in our core banking activities” said Klaus Michael Geiger, the board member responsible for this transaction in WestLB.

The properties outside of Germany were acquired on behalf of the Sireo Immobilienfonds No. 4 SICAV managed by SIM Sireo Investment Management. The German properties were purchased by Sireo itself and shall be resold in the near future.

SIM Sireo Investment Management S.à r.L. is a 100 percent subsidiary of Sireo Real Estate GmbH and manages the fund activities from Luxembourg.

WestLB was advised by Cushman & Wakefield and Allen & Overy LLP. Sphere: Related Content

Sunday, August 20, 2006

Poundex Leases New 550,000-SF HQ & Distribution Building - August 17, 2006

Furniture importer Poundex Associates Corp. has signed a 10-year lease for 550,000 sf of space at Majestic Realty Co.'s 400-acre Majestic Grand Crossing project that will serve as the new corporate headquarters for Poundex. The 550,000-sf facility will replace other facilities in the City of Industry that now serve as the headquarters for Poundex.

Majestic originally began the 550,000-sf Poundex building as a speculative project, but soon after construction began, Poundex agreed to lease the entire building, which is scheduled to be completed in the spring. Terms of the deal were not disclosed.

The new Poundex facility will include about 8,000 sf of two-story headquarters office space, a shipping office and the rest warehouse space. The furniture importer, which has been in the City of Industry for 16 years, now occupies about 300,000 sf in two buildings, one owned and one leased, and is expected to sell the building it owns.

Established in 1989, Poundex is an importer and distributor for fine furniture, selling to dealers and distributors. The company also has offices in New Jersey and Georgia. Sphere: Related Content

Boom For Australian Property Funds Has Only Just Begun

The Australian - August 19, 2006

The Australian property funds growth story has barely begun. The $120 billion now invested in listed and unlisted property funds will grow fourfold, according to business forecaster Phil Ruthven. Ruthven, chairman of IBISWorld, says Australia's total non-residential property assets -- commercial, retail, industrial and rural -- are worth about $1.2 trillion. He expects about 40 per cent of that will be securitised over the next few decades, in line with the US.

Ruthven says Australian corporations are finally waking up to the realisation they should be achieving returns on capital of four times the bond rate -- impossible if substantial property assets are sitting on the balance sheet, returning 10 to 12 per cent.

Like Wesfarmers's Bunnings hardware store chain, which sold its property assets into a listed property trust, or Woolworths, which recently sold 11 key distribution centres to fund manager SAITeysMcMahon and Lend Lease, Ruthven predicts an increasing number of Australian corporations will sell off every property asset they own.

Universities, for example, control more than $30 billion in property assets, which Ruthven says should be sold off-balance sheet and leased back. Farms are another sector ripe for securitisation, he says, pointing to Challenger's $115 million Wine Trust as an example of the way forward.

Australia's listed property trusts (LPTs) were the best-returning asset class of all in the 10 years to December 2004, according to research commissioned by the Australian Stock Exchange last year. LPTs provided an after-tax return of between 10 and 12.3 per cent a year (depending on the investor's tax bracket) while Australian shares, for example, returned between 9.2 per cent and 11.6 per cent a year. Sphere: Related Content

Saturday, August 19, 2006

Comcast Signs Build-to-Suit Agreement for New Call Center - August 17, 2006

Opus Northwest LLC has inked a 10-year lease with publicly held Comcast for a custom-designed customer service center in Lynnwood, WA. The 87,385-sf building will be located in the 92-acre Opus Northpointe Corporate Campus near the intersection of I-5 and 164th Street Southwest. Occupancy is scheduled for July 2007.

Tom Bohman from Cushman & Wakefield and Garth Olsen from GVA Kidder Matthews represented Comcast and Tom Bohman and Gary Bullington from C&W represented Opus Northwest. Although the negotiated lease rate is not being disclosed by the parties involved, local sources tell that the lease rate for this type of product should range between $15- and $18 per sf per year.

The customer service center will be Comcast’s third in the Puget Sound region. The others are in Fife and Everett. Comcast officials say all three centers will operate as one virtual call center with full back-up capability. In the coming year, Comcast plans to build nine new call centers and expand 12 existing locations. Sphere: Related Content

Tuesday, August 15, 2006

Ahold to Pursue Sale Leaseback of US Storess?

The Guardian - August 14, 2006

Two leading shareholders in Royal Ahold called today for the break-up of the troubled retail group, including the sale of its US business. The hedge funds Centaurus Capital and Paulson, which together own 6.4% in Ahold, said the group needed 'drastic strategic action' to deliver shareholder value and urged talks with the board and other shareholders about its future. They said a restructuring could value Ahold at €9 a share, or a quarter more than now.

The Dutch company, often described as Europe's Enron, almost collapsed three years ago after overstating earnings at its US Foodservice distribution business by £970m in the Netherlands' worst accounting scandal. Last year it paid €803m to settle a US class-action suit.

The London-based Centaurus and New York-based Paulson said: "We believe keeping Ahold's disparate retail and wholesale interests together diminishes shareholder value and limits the operating potential of the individual businesses.

The US businesses, including the supermarket chains Stop & Shop, Giant and Tops, account for €33bn of Ahold's annual sales of €44.5bn but Mr Moberg admits that they face fierce competition from rivals such as Wal-Mart and are struggling to meet their 5% operating margin target.

Sources close to the hedge funds said nobody at board level had any direct experience of the ferociously competitive US retail market.

It is stressed that the sale of the US businesses is just one, albeit a preferred, option and others include the sale and lease-back of property and the disposal of several underperforming chains. Sphere: Related Content

Marsh Supermarkets to Sell and Leaseback Property Portfolio

SEC Edgar Archive - August 14, 2006

Marsh Supermarkets, Inc. (Nasdaq Global Market: MARSA) today announced that its Board of Directors has reaffirmed its support for the acquisition of Marsh by MSH Supermarkets Holding Corp., an affiliate of Sun Capital Partners, Inc., under which MSH Supermarkets will acquire all of the outstanding shares of both of classes of common stock of Marsh for $11.125 per share in cash without any financing condition.

Separately, the Company noted that it had been advised by MSH Supermarkets and Cardinal Paragon, Inc. and Drawbridge Special Opportunities Advisors LLC, that those parties signed a letter of intent to enter into a sale/leaseback agreement under which Cardinal/Drawbridge would acquire a substantial portion of MSH Supermarkets owned property portfolio.

Terms of the agreement were not publicly released.

(Note, Marsh Supermarkets, Inc. owns 34 Marsh Supermarkets, 43 Village Pantry convenience stores, three distribution stores and a 160,000 square foot corporate headquarters in Indianapolis at net book value of approximately $240 million acording to the companys 2006 10-K filing.) Sphere: Related Content

Wednesday, August 09, 2006

German Publisher Handelsblatt HQ Sold For €40 million.

Doughty Hanson Web Site - August 8, 2006

Doughty Hanson & Co Real Estate today announces the sale of the Handelsblatt Headquarters to IXIS AEW Europe, the European real estate manager, for more than €40 million.

This transaction completes the sale of all of the assets in the Holtzbrinck Portfolio and will generate a 2.8x return on the investment. The Holtzbrinck Portfolio was acquired from German publishing group Georg von Holtzbrinck in January 2003.

Completed in 1982 on behalf of Handelsblatt, the publishing group which it has since accommodated, the property offers more than 9,900 sq m of office space and is situated in the Düsseldorf sub-market “Bankenviertel”, representing one of the class A locations in the North -Rhine-Westphalia capital.

The Holtzbrinck Portfolio was the fourth transaction by the Doughty Hanson & Co Real Estate I in the Solutions for Corporates programme. The Solutions for Corporates programme aims to create value for corporates by exploiting under-utilised company-owned property or partnering with corporates to solve complex property or occupational issues. Sphere: Related Content

Tuesday, August 08, 2006

National Oilwell Varco Signs 10-Year Lease for Office Building in Houston

Commercial Property News - August 07, 2006

As part of an expansion and consolidation in the Houston area, National Oilwell Varco inked a 10-year lease occupying a vacant seven-story office building. Terms of the lease were not disclosed.

The Houston-based company--which creates oil and gas drilling equipment--will take over the entirety of the 200,000-square-foot building, located at 7909 Parkwood Circle. The building is located at Beechnut and Beltway 8 between Highway 59 and the Westpark Tollway along Beltway 8, which allows easy access to downtown Houston, Sugarland and both Houston airports.

“The building’s proximity to the beltway as well as its efficient floor plan were attractive to National Oilwell. Additionally, they could lease the entire building and be the sole occupant,” Lucian Bukowski, vice president with Dallas-based The Staubach Co. who represented National Oilwell, told CPN.“This will allow them to expand and consolidate some functions and provide room for future growth.”

The building is owned by US Real Estate L.P. owns the building. Trammel Crow Co. is handling the leasing. Sphere: Related Content

Sunday, August 06, 2006

SAVVIS Gains $36.8 Million in Sale Leaseback of Fort Worth Data Center

CoStar Group - August 3, 2006

SAVVIS Communications Corp. purchased the building at 14901 FAA Blvd. in Fort Worth, TX from Digital Realty Trust for $13.8 million, or approximately $50.50 per square foot. The next day, it sold the building and all of the equipment to Digital Realty Trust for $50.6 million or $184.34 per foot.

Built in 2001, the 274,500-square-foot facility houses a data center for SAVVIS. The property was sold back to Digital on a sale/leaseback agreement for 15 years at $4.3 million per year (8.5% cap rate). The lease provides three five-year renewal options. Sphere: Related Content

Thursday, August 03, 2006

Buffalo Grill Enters Eur 300 Million Sale Leaseback of 128 Restaurants in France

Buffalo Grill Web Site - August 1, 2006

Following a competitive bidding process, Buffalo Grill, France’s leading steakhouse chain, has entered into exclusive negotiations with Klépierre aimed at concluding a strategic partnership that would operate on two levels:

1. Partnering with Klépierre on the development of its branded restaurant business in France and abroad
2. Sale of a portfolio of 128 real estate assets nationwide in France.

The sale of this portfolio would be accompanied by the conclusion of commercial leases whose initial term would be nine years firm, renewable twice thereafter at the initiative of Buffalo Grill, on the basis of minimum guaranteed rents and subject to a variable rent clause tied to revenue growth.

The sale price would be based on a global appraised value for the real estate assets of around 300 million euros. In the coming days, this strategic partnership will be presented to Buffalo Grill’s personnel representatives and submitted to the approval of its supervisory board.

Buffalo Grill has 290 restaurants in Europe, mainly in France, and generated consolidated revenue of 278 million euros in 2005. The company is indirectly owned by the private equity fund Colony Investors VII and Colyzeo (via SAIP). Sphere: Related Content

Wednesday, August 02, 2006

Macdonald Hotels Pursuing £250 Million Sale Leaseback of 23 Hotels

Times Online - July 31, 2006

Macdonald Hotels, the Scottish hotel operator backed by Bank of Scotland, will confirm today plans to raise more than £250 million by selling the property interest in 23 of its 69 hotels. The company, taken private three years ago in a £590 million deal, had been expected to sell 20 hotels worth £200 million through a sale and manage-back. However, its adviser, Deloitte, is understood to be marketing 23 properties, with a sale and leaseback now the likeliest method of disposal. Sphere: Related Content

Tuesday, August 01, 2006

Citigroup Sings Long Term Lease for New Tech Center Near Cincinnati

Commercial Property News - July 28, 2006

Citigroup North America has inked a 15-year lease with Duke Realty Corp. to occupy 176,000 square feet in the REIT's Landings of Blue Ash development near Cincinnati. Citigroup plans to locate a new information technology center at the site.

The financial services giant will occupy all of the 176,000-square-foot Landings I, which is currently under construction, with completion slated for October. Citigroup also plans to take 18,000 square feet, or about 10 percent, of the next building in the development, Landings II, which is scheduled for completion next year. The company plans eventually to employ more than 1,000 people in Blue Ash, Ohio, a suburb northeast of Cincinnati. Sphere: Related Content

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