Monday, December 31, 2007

Flextronics Completes Sale Leaseback of 500,000 SF Industrial Complex in Silicon Valley

Commercial property News - December 28, 2007

Westcore Properties L.L.C. has snapped up a nine-structure manufacturing complex in Milpitas, Calif., owned by electronics manufacturing services provider Flextronics International USA Inc. Flextronics will stay put as the sole occupant of the buildings, which account for an aggregate 499,200 square feet of industrial space, under a 10-year lease agreement with the new owner.

Carrying addresses on Gibraltar Dr., the multi-structure complex occupies 33.5 acres in Silicon Valley's South 88 Corridor, less than nine miles from San Jose. Singapore-based Flextronics came into possession of the buildings, which average 15 years of age, when it acquired rival Solectron in a $3.6 billion deal earlier this year.

Westcore, which purchased the property through its Westcore Milpitas L.L.C. entity, relied on Bank of America for financing for the acquisition and turned to CPS/CORFAC International for representation in the deal; CPS/CORFAC also represented Flextronics. Specific terms of the sale and lease agreements have not been disclosed; however, the average asking rate for manufacturing space in Milpitas is $0.73 per-square-foot, triple-net, according to a third quarter report by real estate services firm NAI BT Commercial.

Flextronics' decision to leaseback the space as opposed to leasing elsewhere was a practical one, according to Dan Hollingsworth, senior vice president & principal with CPS/CORFAC. "These are nine individual buildings; that's a campus," Hollingsworth told CPN today. "To find a campus of 500,000 square feet--that you (typically) can't find." Sphere: Related Content

Sunday, December 30, 2007

SEB Group Completes EUR 185 Million Sale Leaseback of 54 Properties in the Baltics

CNW Group - December 28, 2007

Homburg Invest Inc. announces that it has finalized its acquisition of the “Baltic” portfolio consisting of 54 properties located in Estonia, Latvia and Lithuania (the “Baltic’s”) from SEB Group (“SEB”). The transaction was previously announced on April 26, 2007, when SEB and Homburg Invest entered into an agreement to acquire the Baltic portfolio. Due to the exercise of pre-emptive rights by third parties for certain of the properties, the acquired portfolio consists of 54 properties instead of the original 63 properties previously announced. With respect to the properties, 39 are occupied by SEB under long-term leases and 15 properties are primarily leased to other tenants or have short-term leases with SEB.

The transaction was completed at an aggregate purchase price of approximately CAD 268,250,000 (EURO 185,000,000) with a long-term debt financing of CAD 194,100,000 (EURO 134,000,000) from SEB Merchant Bank with the remainder of the purchase price being paid in cash. Sphere: Related Content Enters 1.6 Million SF Build-to-Suit for New Headquarters in Seattle

Cityfeet / GlobeSt - December 27, 2007 has inked a 1.6-million-sf headquarters deal with Vulcan Inc. and Schnitzer West. The deal calls for the online retailer to occupy 11 new buildings to be built on six blocks located immediately north of the Seattle CBD in the South Lake Union area. expects to begin moving into its new office space in mid-2010, with full occupancy in 2011. The company said in an SEC filing that it will pay as much as $1.5 billion over 16 years to occupy the full 1.6 million sf, and that is also has options for additional space. An Amazon executive was not immediately available Thursday morning for further comment.

The developers are billionaire Paul Allen’s real estate investment arm Vulcan Inc., which controls some 60 blocks in the South lake Union area, and Schnitzer West, a partnership Schnitzer Investment Corp. of Portland, OR, and Dan Ivanoff of Seattle. To help seal the deal, the City of Seattle approved increased building heights in the immediate area and the developers agreed to contribute $6.4 million for affordable housing in the area.’s new headquarters will be anchored by three 12-story, 160-foot high buildings on one-and-a-half blocks bounded by Terry and Boren avenues and John and Harrison streets. The buildings are known as Interurban Exchange II, IV and V.

Vulcan and Schnitzer West will jointly develop the buildings to a LEED Silver or Gold standard as the project’s first phase. The other eight buildings are slated to be developed exclusively by Vulcan. In addition to the office space, the buildings will hold about 100,000 sf of street-level space for restaurants and shops.

The company’s headquarters complex will be on the city’s new Streetcar line, which will connect to the city’s bus and light rail systems. Tim Halladay, vice president of real estate and finance operations at says proximity to public transit was an important factor in the selecting the location, as was the opportunity to enhance employee collaboration and productivity by consolidating employees on larger floor plates in fewer, adjacent buildings.

Amazon's current headquarters is located in a 16-story former hospital southeast of the Downtown core in the Beacon Hill neighborhood. It would vacate the hospital and several other leased locations around the city when it consolidates operations in the South Lake Union area. In total, the company reportedly occupies approximately 650,000 sf in the city. Sphere: Related Content

Friday, December 28, 2007

FBI Enters $100 Million Build-to-Suit For Denver HQ

CoStar Group - December 26, 2007

Alex S. Palmer & Co. has emerged as the winner of a $100 million contract with the General Services Administration (GSA) to develop a new office building in Denver for the Federal Bureau of Investigation (FBI).

The Nashville-based development group was awarded the contract after a more than six-month competition with national developers including Hines International, Opus Group, Highwoods Properties and CB Richard Ellis.

"A competitive procurement was conducted by GSA that included several other distinguished developers from across the country," GSA Contracting Officer Mark Pearce said in a statement.

Under current plans, Alex Palmer & Co. will develop a 216,322-square-foot office building with expansion rights up to 292,034 square feet, as well as an adjoining parking garage. The new facility will sit on a 10-acre FBI campus at the former site of the Denver Stapleton Airport. It is expected to achieve LEED Silver certification from the U.S. Green Building Council.

The FBI has signed a 20-year lease with Alex Palmer & Co., which will own the building. Ground breaking is planned in the second quarter of 2008, with completion slated by the end of 2009.

The building is part of a broader effort to replace outdated FBI offices in several cities with state-of-the-art facilities. Its glass exterior and energy efficient design also signify another step toward more modern and eco-friendly government buildings.

Peter Ruggiero, a partner with Chicago-based Skidmore Owings & Merrill and the designer of 7 World Trade Center in Manhattan, will lead the design team for the project. Bovis Lend Lease will serve as lead contractor.

Alex Palmer & Co. has built other federal buildings in recent years including the Veterans Administration building in San Diego, a government office building for the County of Alameda in San Francisco, and the IRS building in Fresno, CA. Sphere: Related Content

Wednesday, December 26, 2007

Metro Completes EUR 243 Million Sale leaseback of 12 Hypermarkets in Germany

Property Week - December 23, 2007

Israeli investor Delek Real Estate has bought a chain of retail properties in Germany from retailer Metro for (£176m).

Delek Real Estate is carrying out the German purchase through its sub-subsidiary Delek Global Real Estate, which is listed on AIM. The company is also seeking a partner to take a 20% stake in the deal.

Delek Global is buying 12 hypermarkets located on the outskirts of towns, mainly in the Rhine-Main area around Frankfurt. Ten of the hypermarkets were formerly owned by Wal-Mart and converted into the Real format. Real is the largest hypermarket group in Germany.

The purchase is being financed by non recourse debt of E230m (£167m) and the rest in cash. The gross rental income is E16.05m (£11.6m) a year. Sphere: Related Content

Nippon Oil Agrees to $370 Million Sale Leaseback of Seven Buildings

Bloomberg - December 27, 2007

Nippon Oil Corp., Japan's biggest petroleum refiner, said it will sell and lease back all of its buildings for 42.3 billion yen ($370 million) as the company seeks to improve its balance sheet.

Tokyo-based Nippon Oil by the end of January will sell seven buildings, which will then be securitized, the company said in a statement on its Web site yesterday. Nippon Oil will take a gain of 10 billion yen from the sale for the year ending March 31. The company said it won't change its earnings forecast. Sphere: Related Content

Monday, December 24, 2007

Alimentation Couche-Tard Completes $131.4 Million Sale Leaseback of 83 Convenience Stores Across US

Alimentation Couche-Tard Web Site - December 21, 2007

Alimentation Couche-Tard Inc., Canada's leading convenience store operator with over 5,600 stores, announces that it has entered into, through its subsidiaries Circle K Stores Inc. and Mac’s Convenience Stores LLC., a sale and leaseback transaction with Cole Credit Property Trust II, Inc. relating to 83 properties sold for total gross selling price of US$131.4 million. The proceeds will be used for namely reduce Couche-Tard’s term revolving unsecured operating credit. Sold properties are located in several States and are subject to leases agreements with an initial average term of 20 years to which are attached renewal options for an additional 45 years.

“I am very satisfied with this transaction which is part of our long term financing plan and improves our short term financial leverage”, indicated Richard Fortin, Executive Vice-President and Chief Financial Officer. Sphere: Related Content

Friday, December 21, 2007

Foster's Completes $41 Million Sale Leaseback of Property Portfolio in Melbourne

The Sydney Morning Herald - December 21, 2007

Charter Hall announces that its managed fund DPF, has acquired in joint venture with the Perth based Wyllie Group, a $41 million portfolio of properties located within the inner city Melbourne suburb of Abbotsford.

The publicly listed Fosters Group has leased back the portfolio of 10 properties for 10 + 5+ 5 year periods. The properties are located adjacent to or nearby to the Fosters Abbotsford Brewery and the adjoining Yarra River. The buildings are predominantly used for offices, visitors and display centre together with open car parks used to accommodate staff working at the brewery.

“Abbotsford continues to be gentrified and we believe the long term outlook for these investments will provide both capital growth and secure, growing income returns with the benefit of 3.75% per annum rental increases” according to Charter Hall’s Joint Managing Director, David Harrison. The properties were secured on an initial yield of 7.12% and comprise a total of 20,000m2 of land area and a combined lettable area of buildings that are developed of approx 12,000m2.

The properties will be owned by a jointly owned trust managed by Charter Hall which intends to hold the assets over the medium to long term and may look to expand its jointly owned property holdings.

Colliers agents John Marasco and Nick Rathgeber negotiated the sale. Sphere: Related Content

Mannesmann Plastics Machinery GmbH Completes €113 Million Sale Leaseback of Three Facilities in Germany

SEGRO Web Site - December 21, 2007

SEGRO has agreed a sale and leaseback with MPM (Mannesmann Plastics Machinery) on three industrial sites in Germany, at Munich, Nuremberg and Hanover. The leaseback is for a minimum term of 15 years and the transaction represents a net initial yield of 7.1%, this yield will increase with indexation. The value of the Munich site is approximately two thirds of this portfolio and marks SEGRO’s first move into this target market.

MPM is leading in the production of machines for the plastics and rubber compounding and processing industries. The company was split out of Mannesmann following its purchase by Vodafone in 2000.

The Munich site comprises 130,649 sq m of production / logistics space and 23,488 sq m of offices on 24.1 ha of land and is made up of a campus of high quality construction workspace units. This high potential site is well located to the northwest of the city within the motorway ring and within easy access of an important S-Bahn train station link. Part of the site, about 30,000 sq m, is sublet to a third party on a lease. As well as providing 15 years of secured income at an attractive yield SEGRO will be able to generate additional returns by building out parts of the site for future occupation by MPM. As well as opportunities on the site sublet to a third party when their lease expires, SEGRO will potentially be able with MPM to secure commercial zoning rights for adjoining land.

The sites at Hanover and Nuremberg respectively comprise 28,772 sq m of built area on 7.3ha of land and 31,669 sq m of built area on 5.1 ha of land. Both sites are in attractive suburban locations and will become part of SEGRO’s portfolio of trading properties.

(Note: In March of the year, MPM completed a simmilar sale leaseback transaction involving three facilities in the US.) Sphere: Related Content

Thursday, December 20, 2007

Accor Agrees to €518 Million Sale Leaseback of 57 Hotels in France and Switzerland

Accor Web Site - December 20, 2007

As part of its real estate management strategy, Accor has announced the signature of a memorandum of understanding to sell 47 hotels in France and 10 in Switzerland to a Real Estate Consortium including Caisse des Dépôts et Consignations and two investment funds managed by AXA Real Estate Investment Managers (European Hotel Venture & Alternative Property Income Venture). The Novotel, Mercure, Ibis, All Seasons and Etap Hotel properties involved in the transaction represent a total of 8,200 rooms.

The €518-million transaction includes a €52-million renovation program at the new owner’s expense. On top of this amount, extensions to two of the existing properties will be financed by the owner for a total of €30 million. Accor will continue to operate the hotels under the same brands through 12-year variable leases, whose rents are based on an average 16% of revenue a year with no guaranteed minimum. The leases are renewable six times, for a total of 84 years. Based on estimated 2007 revenue, the variable rent would amount to €29.6 million (a 5.71% cap rate), net of €3.7 million in insurance costs, property taxes and structural maintenance capex, which are now at the owner’s expense.

This transaction is part of the € 1.9 billion asset disposal program as presented by the Group in September 2007. Accor continues to deploy its innovative asset management strategy designed to both reduce earnings volatility and emphasize the focus on hotel operations.

From a financial standpoint, this transaction will enable Accor to reduce its adjusted net debt by approximately €350 million in 2008, of which € 300 million of cash impact, and will add around €5 million to 2008 profit before tax. Sphere: Related Content

Monday, December 17, 2007

Daimler Agrees to Sale Leaseback of Office Space at Potsdamer Platz in Berlin

Daimler Web Site - December 14

Stuttgart, December 14, 2007 - Daimler (stock-exchange abbreviation DAI) has sold the “Quartier Potsdamer Platz” to SEB Asset Management, based in Frankfurt am Main. The complex comprises a total of 500,000 square meters of floor space above and below ground with 19 buildings. 42% of the property is high-quality office space, 22% is used for retail purposes, and the rest consists of apartments, hotels, entertainment and catering facilities. Half of the office space at Potsdamer Platz will continue to be used by the Daimler Group on a long-term basis. The transaction is expected to be closed by the end of the first quarter of 2008.

Dr. Ruediger Grube, Member of the Board of Management of Daimler AG for Corporate Development and Real Estate, stated, “We are delighted that with SEB Asset Management we have found an investor with a long-term orientation that will continue to develop and enhance one of the most attractive sites in Europe”.

The transaction is subject to the approval of the antitrust authorities. The sale is part of the ongoing measures being taken to optimize the Group’s portfolio with the goal of focusing on the core business and improving value added.

(Spiegel reports that the sale price for the entire complex was was around €1.2 billion.) Sphere: Related Content

Sunday, December 16, 2007

Station Casinos Completes $70.3 Million Sale Leaseback of Las Vegas HQ

Las Vegas Business Press - December 14, 2007

The Cole Cos. recently acquired Station Casinos' corporate headquarters in a purchase-leaseback transaction. The Phoenix-based firm paid $70.3 million, or $507 per square foot, for the three-level Class A office building at 1011 S. Pavilion Center Dr. in Summerlin. The 138,558 square-foot structure, designed by Gensler of Nevada, rests on three acres adjacent to the Red Rock Casino Resort.

Station Casinos signed a 20-year, triple-net lease to occupy the building. Rental rates were not disclosed. The new glass, steel and stone structure cost $64.2 million to construct earlier this year, with occupancy starting in September. The sale gives the locals gaming company a much needed cash infusion after going private in an $8.9 billion transaction last month.

Las Vegas employers are on track to add 11,200 positions this year for a 1.2 percent overall job growth. Class A space, meanwhile, had the lowest vacancy rate of all local office products in the third quarter, reports Applied Analysis, a local economic advisory firm. It also commanded the highest rents at $2.86 per square-foot or 48 cents more than valley-wide average.

"The valley's west submarket had only seven Class A office buildings in the third quarter, totaling less than a million square feet," said Brian Gordon, principal of Applied Analysis. "It has created a pent-up demand for that area resulting in a low 4.1 vacancy rate." Sphere: Related Content

Saturday, December 15, 2007

Orior Completes EUR 61 Million Sale Leaseback of Swiss Real Estate Portfolio

PRNewswire - December 13, 2007

ThreadGreen Partners LLP today announced the sale and subsequent leaseback of the real estate portfolio of Orior Ltd, comprising six commercial properties spread across Switzerland, to ThreadGreen Industrial Limited. The properties, with overall usable area totalling approximately 68,221 squared metres of office, distribution, production and cold storage space, were sold for CHF 103 million (approximately EUR 61.6 million) to the Guernsey Fund.

Orior is the largest independent convenience food company in Switzerland with leading market shares in all segments of its product offerings. The Company dates back to 1929.

The Facilities comprise substantially all of the manufacturing operations of the Company and the majority of the Company's revenue is generated from the Assets. Furthermore, the Company has invested over CHF 200 million in the maintenance and modification of the assets over the past ten years. The assets are in good condition and considered of strategic importance to the industry which Orior serves. Given its strong market position, it is expected that the Company will continue to realize historical levels of profitability moving forward. Sphere: Related Content

Monday, December 10, 2007

Miro Radici Completes €55.5m Million Sale Leaseback of 13 Property Portfolio in Germany

Property Week - December 6, 2007

Sellar Property Group has completed a sale and leaseback purchase of a 13-strong German portfolio for €55.5m (£40m).

The properties, which total 700,000 sq ft over 40 acres of land in the Ruhr Valley were purchased from an undisclosed seller. They are let to Italian-based textile company Miro Radici Group on 12 year leases, generating an annual rent of €4m (£2.8m).

The purchase brings Seller’s investment in German investments to approximately €130m (£93.7m), taking it closer to its target of €250m (£180m) within the next 12 months. Sphere: Related Content

Sunday, December 09, 2007

CVS Caremark Nearing $600 Million Sale leaseback of 163 Drug Stores in 29 US States

Moody's Investors Service Web Site - December 7, 2007

Based on information received through December 5, Moody's Investors Service assigns a provisional (P) Baa2 rating to $593.1 million of CVS Caremark Lease-Backed Pass-Through Certificates, Series 2007, to be issued by a trust that will acquire 163 first-priority lien commercial mortgage, credit-tenant lease loans. The loans will be secured by newly constructed and existing drug stores and related realty that will be triple-net leased to subsidiaries of CVS Caremark Corporation. Each of the leases will be bondable and guaranteed by CVS Caremark Corporation, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2030. 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 163 drugstores are located in 29 states.

Moody's determined that, among other factors, the dark value of the collateral is sufficient, assuming a bankruptcy of CVS Caremark and rejection of 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 Caremark Corporation, which is currently Baa2, stable outlook; therefore, the Certificates' rating will change as the senior unsecured debt rating of CVS Caremark Corporation may change. The rating of the Certificates was also based on the overall structure and legal integrity of the transaction. Sphere: Related Content

DnB NOR Bank ASA Agrees to $650 Million Sale leaseback of 22 Bank Buildings in Norway

DnB NOR Bank ASA Web Site - December 7, 2007

DnB NOR Bank ASA has entered into agreements on the sale of a further 22 bank buildings, thus concluding the sale of the bank's own commercial property portfolio announced in the spring.

The total sales price for the 22 buildings is NOK 3.6 billion ($650 million.) This will give the bank a gain of more than NOK 1.4 billion before tax. As several of the properties in the portfolio are owned by companies, the tax charge will be relatively low. The buildings were sold with an average yield of 5.62 per cent.

"We are very satisfied with both the price obtained and with the buyers. The latter is important as we have entered into long-term lease agreements for the sold properties," says Bjørn Berg, chief investment officer in DnB NOR, who has managed the sales process on behalf of the bank. He adds that the new lease agreements have a duration of between seven and ten years. The agreements will imply no significant changes in the bank's operating expenses over the coming years.

Oslo Pensjonsforsikring has bought 18 of the properties, Sparebankstiftelsen DnB NOR (the Savings Bank Foundation) has bought two properties, Odfjell Eiendom AS bought one property and Petter Myhre and Mohsen Shahabi bought one property.

The bank's first property sale in 2007 was DnB NOR's head office at Aker Brygge in Oslo, which was sold to the property company Norwegian Property ASA for just over NOK 1.7 billion during the summer.

DnB NOR Næringsmegling AS and Catella Corporate Finance AB (Stockholm) have been advisers for DnB NOR Bank and acted as brokers throughout the sales process. Sphere: Related Content

Friday, December 07, 2007

CNL Income Properties Agrees to $301 Million Sale Leaseback of 28 Golf Course Properties

SEC Edgar Database - December 6, 2007

We entered into an asset purchase agreement on October 29, 2007 committing to acquire 28 golf course properties from American Golf Corporation and certain of its affiliates (collectively “AGC”) for a purchase price of $301.0 million. On November 30, 2007, we completed the acquisition of 22 of those golf course properties for a purchase price of $244.0 million.

We leased our interests in these properties on a long-term, triple-net basis to Evergreen Alliance Golf Limited, L.P. (“EAGLE”) to operate on our behalf. The leases have a 20-year initial term, with four 5-year renewal options and are cross-defaulted with each other and with the 15 other leases for our golf course properties that are operated by EAGLE. The minimum aggregate annual rent for the properties is approximately $20.7 million in the initial year (i.e. an 8.5% cap rate.)

We have agreed to acquire the remaining six properties, all of which are leasehold interests, by April 17, 2008. Sphere: Related Content

Monday, December 03, 2007

Santander Receives Bid of EUR 1.7 Billion for HQ in Spain

Forbes / Thomson Financial - December 3, 2007

Banco Santander SA has received offers of more than 1.7 bln eur from JP Morgan and Metrovacesa for its Boadilla del Monte headquarters, El Economista reported, citing unnamed sector sources.

Santander could book 1 bln eur in capital gains from the operation, the newspaper said, noting that the sale is set to be closed before Dec 20.

Santander would enter into a 30-year lease-back contract of the property while retaining its right to repurchase, it added. Sphere: Related Content

Billia Planning $85.5 Million Sale Leasback of Two Property Portfolios in Denmark and Sweden

Billia Web Site - December 3, 2007

In January, Bilia, the leading Nordic car dealer and service provider in Sweden, Norway and Denmark, will be presenting a prospectus relating to the sale of real estate in Copenhagen, Denmark, and Mälardalen, Sweden. The sales process is expected to be complete at the end of the first quarter of 2008.

The sale of the real estate in Denmark is dependent on Bilia utilising the option it obtained in 2005 in connection with the Scaniadam deal to acquire the A/S Selandia Ejendomsselskab real estate company. The book value of the Danish holdings is estimated after the acquisition at approximately SEK 300 M.

The acquisition of the Hans Persson Group included real estate holdings and the plan now is to dispose of these holdings by selling Hans Persson Fastighets AB. The book value of these real estate holdings is approximately SEK 250 M. Bilia will be signing long-term rental agreements for most of this real estate. In Bilia’s view, the sale will result in a not insignificant capital gain.

Bilia has commissioned the services of Catella Corporate Finance as an adviser to complete the sale.

Bilia, headquartered in Sweden, has 3,500 employees and an annual turnover of SEK13.5bn. Bilia is listed on the Nordic Exchange in Stockholm. Sphere: Related Content

Citigroup Agrees to $1.575 Billion Sale Leaseback of Manhattan Office Towers

Reuters - December 3, 2007

Office property owner SL Green Realty Corp (SLG.N) has reached an agreement to buy Citigroup Inc's (C.N) downtown office complex for $1.575 billion, a source familiar with the deal said on Monday, underscoring the health of the Manhattan property market, despite turmoil in the lending markets. Canadian real estate investment firm SITQ also will take a 47.5 percent stake in the complex at 388-390 Greenwich St. when it closes later this month, said SL Green, which will retain a 52.5 percent stake. The two buildings total 2.6 million square foot, translating the deal's price to $598 per square foot, SL Green said.

The flow of securitized loans used to finance much of the debt-heavy purchases of U.S. buildings or to develop property has slowed to a trickle of what it was just six months ago. Fears stemming from from the troubles of the U.S. housing market, crossed over to the commercial market, chasing buyers of commercial mortgage-backed securities (CMBS) out to the sidelines. Sales of buildings, such as the Citigroup building, demonstrates that other lenders, such as European banks have been willing in many cases to step in and fill in part of the void left by the stoic CMBS market. It also highlights the change in real estate buyers, from individuals using loads of securitized debt to real estate investment trusts, such as SL Green and pension funds, which use more cash and other sources of debt financing.

Westdeutsche ImmobilienBank AG, the real estate lending arm of German lender WestLB AG (WDLGgb.F), and PB Capital Corp., the commercial real estate financial arm of Deutsche Postbank AG (DPBGn.DE), provided the mortgage financing, SL Green said.

The deal calls for the tenant to lease back the building and cover the costs of operating and maintaining it for 13 years, SL Green said. The complex houses Citigroup's investment banking arm. Over that period, Citigroup also will to vacate the building in stages, which will leave SL Green as a low-cost provider of office space downtown and an alternative to the World Trade Center, Fasulo said.

Citigroup declined to comment on the pending sale. A representative from SL Green was not available for further comment, nor was one available from Cushman & Wakefield Sonnenblick-Goldman, which arranged the financing. The initial rental rate reflect a first-year return of 6.3 percent, SL Green said. Sphere: Related Content

CIMB Mulling Sale Leaseback of Retail Bank Branch Portfolio in Malasia

Business Times - December 3, 2007

CIMB Group, Malaysia's biggest investment bank. is mulling a third sale and leaseback exercise on some buildings that house its operation and bank branches as part of its plan to manage capital more efficiently, its chief said.

Group chief executive Datuk Nazir Razak said it has done two such exercises to its current head office Bangunan CIMB, and Menara Bumiputra-Commerce, its new retail banking headquarters on Jalan Raja Laut which is still under construction.

"We still own a lot of branches, the Jalan Tun Perak building (which houses the retail banking operation now), Menara SBB. It could be a third sale and leaseback exercise involving the rest of the portfolio," he said yesterday.

"We have embarked on it and done two buildings, there is most likely to be a third portfolio, where we will put the other buildings inside," Nazir added.

He said modern banks of today should not engage in other things such as building ownership and management. Lenders are better off renting the buildings, release the capital and plough it back to the business. By selling and renting back Menara Bumiputra-Commerce for example, the bank will have the capital to write RM3.6 billion in new loans, he said. Sphere: Related Content

Hafslund Enters $125.7 Million Sale Leaseback of 34 Properties Throughout Norway

Hafslund Web Site - December 3, 2007

Hafslund, Norway's largest power distribution utility, has sold 100 percent of the shares in the company Hatros II AS to the Oslo Pensjons Forsikring AS, for a total of NOK 728 million, equivalent to a property value of NOK 694 million. The company is a single purpose company with 34 properties in Oslo and Akershus. The properties mainly consist of transformer stations with surrounding areas.

Hafslund Nett AS will lease back the main part of the properties for a period of 15 years, with an option for extension, and will be responsible for the technical and building related maintenance of the properties during the period.

The sale gives an accounting profit before tax of about NOK 500 million. Sphere: Related Content

CIMB Group Agrees to $137 Million Sale Leaseback of New HQ Tower in Kuala Lumpur

CIMB Group Web Site - December 3, 2007

CIMB Group today entered into agreements with Pelaburan Hartanah Bumiputera Berhad (PHBB) for the sale and leaseback of Menara Bumiputra-Commerce, the Group's new retail banking headquarters on Jalan Raja Laut, Kuala Lumpur.

Under the sale and purchase agreement, Bumiputra-Commerce Holdings Bhd (BCHB), the listed owner of CIMB Group, will sell the 39-storey building to PHBB for RM460 million or RM730 per square foot. CIMB Bank Berhad will then lease the building from PHBB for an initial period of ten years.

In his speech at the launch, Dato' Mohd Shukri, Executive Director of BCHB, said that the Group decided to build Menara Bumiputra-Commerce three years ago to house its scattered retail banking operations in one location. He also noted that the Group would not be making effective use of its capital if it owned its buildings. "As a banking and financial services group, CIMB Group's strategy is to be asset-light, and employ our capital efficiently towards the core business," he explained.

Dato' Shukri said that the Group was pleased to have PHBB as a partner and was confident that PHBB will be a "buy and hold" investor. He added: "This is also an opportunity for CIMB to form a long-term relationship with PHBB, and to explore areas in which we can create synergies through working with each other."

Menara Bumiputra-Commerce is being constructed by IJM Corporation Bhd and is expected to be completed by the end of 2008. Sphere: Related Content

Saturday, December 01, 2007

Arcandor Nearing $1.18 Billion Sale Leaseback of of Property Portfolio

Wall Street Journal - December 1, 2007

The real-estate investment arm of Deutsche Bank AG and Pirelli Real Estate are close to acquiring a property portfolio from Arcandor AG, a German mail-order and department-store company, for €800 million ($1.18 billion), according to people familiar with the matter.

The deal with Deutsche Bank's Rreef and Pirelli Real Estate, in which tire maker and broadband-services company Pirelli & C. SpA owns a 52% stake, is expected to be announced early next week.

Arcandor's head of communications, Jörg Howe, confirmed the company is in the "final stages of negotiations" to sell a portfolio that includes 85 Karstadt stores -- including Europe's biggest department store, Berlin's KaDeWe -- as well as 12 Karstadt Sport stores and some offices. As part of the deal, Rreef and Pirelli Real Estate may acquire a minority stake in Arcandor's retail business, according to people familiar with the deal.

Karstadt, Arcandor's department-store division, will lease back the buildings on 15-year leases, with an option to extend the leases by an additional 15 years, Mr. Howe said. Rreef and Pirelli Real Estate declined to comment.

"Arcandor's properties are prime retail properties in good locations, so they would be very popular with investors," said Gerhard Kemper, managing director of Kemper's Deutschland GmbH, a real-estate agency specializing in retail property, in which Cushman & Wakefield Inc. owns a stake. "This will be the biggest retail sale of this kind this year in Germany and I think it will send a signal to the market that big deals are possible, even in the current climate," he added. Sphere: Related Content

Clearstream Agrees to €350 Million Sale Leaseback of HQ in Luxembourg

Clearstream Web Site - November 28, 2007

Clearstream International S.A., Deutsche Börse Group’s securities settlement and custody provider, is to sell its headquarters in Luxembourg for € 350 million to the real estate company IVG Immobilien AG, Bonn. A corresponding contract was signed today. At the same time of the sale, Clearstream entered into a lease agreement with the owner of the buildings.

The Luxembourg buildings are the only properties actually owned by Deutsche Börse Group, which rents all of its remaining office space. The sale and leaseback will allow the company to benefit from the very positive current market environment for commercial real estate in Luxembourg.

All four buildings in "The Square" complex in the Kirchberg area of Luxembourg City are to be sold; the lease agreement only applies to the two buildings used by Clearstream itself. The sale price is considerably higher than the book value of around € 230 million. Deutsche Börse AG will receive the book profit over the course of 2008 via dividend payments from Clearstream. The transaction is expected to be concluded by the end of the year, and still requires approval by the Supervisory Board of Deutsche Börse AG.

The sale will be conducted via the disposal of four companies whose assets consist of the office buildings rented to Clearstream and third parties. The lease agreement between Clearstream and the related real estate companies who own the buildings has a 10-year term with two 5-year extension options. Sphere: Related Content

Friday, November 30, 2007

AIB Agrees to EUR 30 Million Sale Leaseback of Bank Branch Portfolio in Ireland

Irish Independent - November 28, 2007

A private investor has agreed to acquire a portfolio of AIB properties in Munster in a major sale and leaseback transaction.

AIB had brought the 12 properties to the market last month, seeking offers of around €35m through Savills Hamilton Osborne King. But the ultimate agreement is believed to be significantly below this level.

Nevertheless the sale will provide a boost for the investment market, where deals have slowed since the credit crunch. However, the slowdown is believed to have taken its toll and the deal eventually may have been closer to €30m.

The original guide price indicated a net initial yield of approximately 4.25pc. But experts believe the yield was pushed out towards 4.5pc and maybe even beyond as bidders struck a harder bargain than similar transactions before.

AIB's Munster portfolio includes branches in strategic locations in towns such as Ennis and Limerick. Each property will be let to AIB with guarantees on a 20-year FRI lease with upward-only rent reviews every five years. The tenant has a break option in year 15.

Total initial income for the portfolio is €1,664,000, with individual properties generating rents of between €77,500 and €415,000.

The major banks have capitalised on their property portfolios, through lucrative sale and leaseback deals. However the credit crunch and higher interest rates have slowed investment activity across the board.

The strong AIB covenant nevertheless makes the Munster portfolio a cut above most regional properties, even though some might be considered less 'prime' than those snapped up in previous bank disposals over the past year.

The identity of the buyer is a closely guarded secret. But only investors with proven credentials are able to raise funds on the scale required to secure such a large deal in the current, more exacting financial environment.

The Munster portfolio has a total net internal lettable area of around 7,148sqm. Sphere: Related Content

Sunday, November 25, 2007

Santander Agrees to EUR 2.04 Billion Sale Leaseback of 1,173 Bank Owned Properties Throughout Spain

Property Week - November 22, 2007

UK pension fund manager Pearl Group is set to complete the biggest European real estate deal of the year with the E2bn (£1.4bn) purchase of more than a thousand properties owned by Spanish bank Santander, the largest bank in the euro zone by market value.

Pearl, led by entrepreneur Hugh Osmond has entered into an exclusivity period to buy Lot 5 – a portfolio of 1,173 properties, consisting predominantly of high-street banks. The portfolio generates a yearly rental income of approximately E101m (£72m), reflecting a yield of about 5%.

The portfolio forms the largest of five property packages placed on the market by the bank in the summer to help fund its joint bid with Bank of Scotland and Fortis for Dutch bank ABN Amro. The total value placed on all-five lots was E4bn (£2.87bn).

The lots initially received numerous bids over the course of the sale process, including bids for the entire portfolio, however the credit crunch reduced bidding numbers considerably and by October those bidding on all the properties either reduced their bids or joined forces opting to cherry-pick preferred assets.

The sale will be warmly received by a European investment market that has seen little in the way of large transactions, particularly since the liquidity crisis. A sale means that Santander will be left with Lot 1 - the bank’s headquarter scheme on the outskirts of Madrid – left to sell.

Last month, Zara-owner Pontegadea agreed to pay E500m (£359m) for Lots 2-4 which consists of 11 large commercial properties across nine cities. The deal is said to have reflected a yield of less than 5%. The sale will reportedly generate a capital gain of EUR 860 million.

None of the parties involved in sale would comment. Sphere: Related Content

Saturday, November 24, 2007

Kia Motors Considering $268.7 Million Sale Leaseback of Production Assets

Reuters - November 24, 2007

Kia Motors Corp (000270.KS), South Korea's No. 2 carmaker, plans to sell some domestic and overseas production lines and lease them back in the first half of next year in a deal that could fetch up to 250 billion won ($268.7 million), a Korean newspaper said on Saturday.

"To improve financial soundness, (the company) is seeking to sell part of Kia Motors' assets, including production lines, to a leasing company and secure cash," the Chosun Ilbo daily quoted an unnamed senior official at the automaker as saying.

Kia Motors could not immediately be reached for comment.

The report added GE Capital, a financial unit of U.S company General Electric Co (GE.N: Quote, Profile, Research), was the most likely buyer of the assets.

In October, Kia, an affiliate of top South Korean auto company Hyundai Motor Co (005380.KS: Quote, Profile, Research), had posted a bigger-than-expected quarterly net loss due to weaker sales and said it would miss its 2007 operating profit target as costs swelled.

Kia, which has factories in China and Slovakia, is building a $1 billion plant in the United States. ($1=930.3 Won) Sphere: Related Content

Friday, November 23, 2007

Sainsbury Completes $78.5 Million Sale Leaseback of Two UK Regional Distribution Centers

Property Week - November 23, 2007

Sainsbury’s has sold the second of four distribution depots it put up for sale earlier this year, completing two deals in two weeks which represent 1m sq ft in floorspace and just under £80m.

Canada Life has paid £40m to buy the 560,000 sq ft shed at Radial Park in Stoke on Trent. Sainsbury’s has taken a 25-year lease on the property at a net initial yield of 5.65%, again with RPI-linked rent reviews.

The other sale-and-leaseback, signed last week, was to BAE Systems Pension Scheme, which has bought the 425,000 sq ft warehouse in Tamworth for £38.5m and leased it back to the supermarket on a 30-year lease at a net initial yield of 5.5% with RPI- linked rent reviews.

The other two warehouses, in Hams Hall in the West Midlands and Haydock in Merseyside, are still on the market but interest is thought to be strong.

Peter Winfield, head of business space investment at Cushman & Wakefield which acts for Sainsburys, said: "These deals clearly demonstrate that there is institutional demand for high quality property in the current market which reflects the most challenging trading conditions in recent years."

Kitchen La Frenais Morgan acted for BAE, and Atisreal acted for Canada Life. Sphere: Related Content

Royal Bank of Scotland Awards $1.7 Billion Sale Leaseback of 63 Properties

Financial Times - November 23 2007

Royal Bank of Scotland has found a buyer for an £800m ($1.7bn, €1.1bn) portfolio of 63 properties. The price is about 10 per cent lower than originally expected but indicates that real estate deals are possible in spite of the credit squeeze. The preferred bidder on the RBS portfolio is understood to be Prudential, the insurer, which has joined forces with William Pears, a private family-run investment group.

The sale and leaseback agreement comes after several other property deals have been abandoned in recent weeks, including the attempted sale of Meadowhall Shopping Centre in Sheffield by British Land. But the price of the assets has been cut to £800m from an initial asking price closer to £900m in a sign of the weakening market.

William Pears and Prudential beat competition in the final round from Nick Leslau, the private property entrepreneur, working with HBOS. Other interested bidders had included Moorfield and Delancey, both private companies.

The 63 properties cover 2.1m sq ft and produce about £47m of annual rent, making a yield of 5.5 per cent. They include the Strand head office of Coutts, one of RBS’s private banking operations, and other branches including 1 Princes Street in Edinburgh and 28 Cavendish Square in London’s West End. RBS was advised by Cushman & Wakefield. The Scottish bank had put the portfolio up for sale to help raise money for the joint takeover of ABN Amro, the Dutch bank. Sphere: Related Content

Wednesday, November 21, 2007

Microsoft Signs Long Term Lease for $500 Million Data Center Near Chicago

Cityfeet / - November 9, 2007

Microsoft Corp. has signed a 15-year lease for a 550,000-sf data center at 601 Northwest Ave. The data center is being developed by a partnership of information technology company Ascent Corp., based in St. Louis, and property management company Koman Group, based in Creve Coeur, MO. The estimated cost of the project is $500 million.

The two-story building will be constructed on a 14-acre site near Interstate 294 and Interstate 290. The joint venture had acquired the slightly more than 14 acres and planned to construct a speculative building between 430,000 sf and 475,000 sf, says Phil Horstmann, president and CEO of Ascent. “Our original vision for the project was a purpose-building, speculative, multi-tenant data center,” Horstmann says. Microsoft’s lease rate was not disclosed but Jones Lang LaSalle had been marketing the building with an asking lease rate of $36 per sf, triple net.

The building was expected to have at least 200,000 sf with a raised floor and have 21-foot ceilings. The building was expected to have 40 megawatts of power with the ability to expand to 60 megawatts and, with working on the plans for the building with Microsoft, “The capacity has grown,” he says. The joint venture will also have its own power substation on the property.

The building is expected to be completed in the spring and open in April, according to a press release from Microsoft. The building will house “tens of thousands of servers providing information and web-based applications to Internet users worldwide,” according to the press release. Sphere: Related Content

Sodexho's New HQ in Paris Sold for €100 Million

King Sturge Web Site - November 19, 2007

On behalf of Custom House Capital, King Sturge, Paris and Knight Frank Ganly Walters, Dublin have purchased from Sefri-Cime and AXA REIM two office buildings, Panorama Seine and Dockside near Paris in Issy-Les-Moulineaux for more than €100 million.

Sodexho will be occupying both buildings on a 12 year lease and this will become their International Headquarters.

Panorama Seine comprises 7,893m² (84,959ft²) with 71 car parking spaces, due to complete in February 2008. Dockside comprises 2,128m² (22,906ft²) with 27 car parking spaces due to complete in April 2008.

Simmons & Simmons and Le Breton & Associés acted on behalf of Custom House. Sefri-Cime was advised by Pardieu Brocas Mafféi and Wagny Katz. The financing was done by Aareal Bank, who were advised by notaries Allez & Associés. Sphere: Related Content

Harleysville National Bank Agrees to $38.8 Million Sale Leaseback of 16 Retail Bank Branches in PA

SEC Edgar Database - November 19, 2007

On November 19, 2007, Harleysville National Bank, a wholly owned banking subsidiary of Harleysville National Corporation, entered into a definitive agreement (the “Agreement”) to sell sixteen properties to American Realty Capital, LLC (“ARC”) in a sale-leaseback transaction. The properties are located throughout Berks, Bucks, Lehigh, Montgomery, Northampton, and Carbon counties. The total sale price is expected to be approximately $38.8 million.

In the Agreement, the parties each make customary representations and warranties to each other. The finalization of the transaction is also contingent upon the completion of a 30 day due diligence period.

The agreement provides that the leases will be institution-quality, triple net leases with initial annual aggregate base rent of $3,003,838 (a 7.75% cap rate) with annual rent escalations equal to the lower of CPI-U (Consumer Price Index for all Urban Consumers) or 2.0 percent commencing in the second year of the lease term. As tenant, the Bank will be fully responsible for all costs associated with the operation, repair and maintenance of the properties during the lease terms.

The agreement provides that each lease will have an initial term ranging from 5 – 15 years, commencing on the closing date for the Agreement, with options to renew on various terms for periods aggregating up to 45 years. The Agreement is expected to close on or before year-end 2007. Sphere: Related Content

Tuesday, November 20, 2007

Whirlpool Signs 10 Year Lease for 1.7 Million SF Distribution Center in CA Inland Empire

Trading Markets - November 19, 2007

Whirlpool Corp. has signed a 10-year lease to occupy the Perris Distribution Center, a 1.7-million-square-foot warehouse-distribution facility at the northeast corner of Perris Boulevard and Morgan Street, said Sam Foster, senior vice president with Jones Lang LaSalle, a Los Angeles real estate firm. Financial terms were not disclosed.

Foster negotiated Whirlpool's lease with the building's developer, IDS Real Estate Group in Los Angeles. The building was the largest speculative warehouse-distribution project ever built in the United States, said Murad Siam, IDS Real Estate's co-chief executive officer.

All of the employees are being moved from two warehouse-distribution facilities in Ontario and one in Mira Loma. Benton Harbor, Mich.-based Whirlpool leased more than 1.5 million square feet of logistics space in those three cities, Foster said.

Whirlpool, which purchased Maytag Corp. for $1.79 billion on March 2006, is building 10 large warehouse-distribution facilities, including the Perris operation, in North America. The Perris facility will serve the southwest United States, Foster said.

Whirlpool officials originally wanted to build their own distribution facility on 80 acres that was served by rail, but changed their plans when such a site became too difficult to find. "It's almost impossible to find a site like that anywhere in the Los Angeles area," Foster said. "We looked in Barstow, but by then Whirlpool decided they would be better off locating in the basin." Sphere: Related Content

Netcare Mulling $5.9 Billion Sale Leaseback of UK & South African Hospital Portfolios?

Business Report - November 20, 2007

Netcare could sell its South African property business, worth R9.5 billion, to unlock more value for shareholders, Richard Friedland, the chief executive, said yesterday.

Friedland said there were at least four or five options the company could explore when the properties were sold. Those included leasing back the hospitals and allowing shareholders to have a stake in Netcare and the property portfolio. Friedland would not be drawn into the time frames of when this could be finalised.

He said there were no discussions taking place around the issue at present, but it was an option the company knew could yield a great deal of value. Netcare manages 56 hospitals in South Africa. It owns 44 of those.

Two months ago, Netcare said it could sell its UK property, which was valued at more than £2.2 billion (R30.2 billion). Peter Nelson, the group's chief financial officer, said those plans were on hold. "We are still open minded to the sale, but the interest rates are very high in the UK right now and we need that to settle down a bit," Nelson said . "At the right time and for the right price we will sell, but it is not our main focus as we stand here today." Sphere: Related Content

The Great Escape Completes $89.5 Million Sale Leaseback of Midwest Store Portfolio

McHenry County Business Journal - November 2, 2007

The Great Escape, the largest home leisure retailer in the Midwest with 21 stores, has sold all of its stores. The Great Escape will continue selling its assortment of home recreational products for the foreseeable future, as the retailer has agreed to a 20 year leaseback of the properties.

This month, South Holland-based Great Escape sold all its store sites, including one at 2421 S. Randall Road in Algonquin, to Scottsdale, Ariz.-based Spirit Finance Corp. for a total of $89.5 million. Records show the Algonquin store sold for $9.8 million.

Representatives of The Great Escape and Spirit Finance Corp. declined to discuss the transaction. Sphere: Related Content

Houghton Mifflin Completes $25.8 Million Sale Leaseback of Chicago Area Warehouse

Cityfeet / - October 25, 2007

Inland Real Estate Exchange Corp., based in Oak Brook, has acquired a distribution center at 1900 S. Batavia Ave. The sales price was $25.8 million. The 513,512-sf building was acquired from Boston-based Houghton Mifflin Co. in a sale-leaseback.

Inland Real Estate Acquisitions Inc. negotiated the sale on behalf of Inland Real Estate Exchange Corp., both of which are affiliates of Inland Real Estate Group of Cos. Inc. Houghton Mifflin was represented in the transaction by Cushman & Wakefield. The cap rate was nearly 7.8%.

The textbook and educational publisher has signed a 12-year lease for the building, which was constructed in the late 1970s with a series of additions in the 1980s and a small addition in the 1990s. The lease rate is $3.90 per sf, net, with escalations each year, says Joe Cosenza, vice chairman of the Inland Real Estate Group of Cos. Houghton Mifflin only has two distribution centers, with the other being in Indiana. The Indiana facility distributes college textbooks while the Geneva facility distributes textbooks for students in elementary and secondary schools, which is the more profitable of the two areas of the company, Cosenza says. Sphere: Related Content

DHL Agrees to €160 Million Sale Leaseback of 26 Logistics Buildings Across France

Segro Web Site - November 15, 2007

Segro has agreed the purchase of a portfolio comprising 26 logistics buildings across France via a sale and leaseback with DHL. The total purchase costs are €159.8m and the portfolio will provide a total annual income of €11.2m representing an attractive net initial yield of 7.0%.

60% of the portfolio is in the Paris region, 10% in Lyon, 12% in Marseille and over 5% in Lille – with the remainder located in Toulouse, Bordeaux, Nantes, Orléans and Strasbourg.

The portfolio totals a built area of c210,000 m² on 70ha of land and comprises distribution and logistics centres used by the DHL Supply Chain and small cross-dock facilities used by DHL Express. All properties will be subject to new, nine year leases with DHL, 20 of them with 6 year break options and 6 of them with 3 year break options

9ha of land has been identified as having immediate development potential and it is estimated that a further 10,000m² of built area can be added in these locations. Sphere: Related Content

Sunday, November 18, 2007

Penn West Petroleum HQ in Calgary Sold for €253 Million

Allianz Global Investors Web Site - November 16, 2007

In a joint venture with Homburg Investment Inc., the property fund company DEGI Deutsche Gesellschaft für Immobilienfonds mbH is making its first investment in Canada. For its DEGI INTERNATIONAL fund, the company acquires an office project featuring a total area of around 57,900 m² for around €253 mln.

The Homburg-Harris Centre.The “Homburg-Harris Centre” will upon completion rank among the most modern and advanced office buildings in the central business district (CBD) of Calgary. The seller of the office project is the international property and project development company Homburg Invest Inc., which as joint venture partner owns a 10 % holding in the newly established property holding company, and will by its Canadian subsidiary be handling local management for the property.

The Homburg-Harris Centre is situated in an extremely central location, Downtown Central Core, with very convenient links to urban public transport. The building complex consists of two linked office towers. The office space of 20,000 m² in the ten-story Tower 1 has already been let in its entirety to the energy company Penn West Petroleum Ltd. before the tower is completed in January 2008. The retailing areas on the ground floor will be used as a restaurant. For the 20-story Tower 2, completion is scheduled for 2009. The Homburg-Harris Centre also features underground parking for 400 cars. The purchase price will be paid in instalments as construction work progresses. Sphere: Related Content

Friday, November 16, 2007

Citigroup Nearing $1.6 Billion Sale Leaseback of Manhattan Office Tower

New York Post - November 14, 2007

Shorenstein Co. is slicing through complicated negotiations to sign a $1.6 billion contract to purchase 388 and 390 Greenwich St. from Citigroup, sources say. As we advised last week, Shorenstein was leading the pack of bidders for what would be one of the largest deals this year. Citi will be leasing back a chunk of the building for the next 15 years.

Shorenstein, which has investments in 125 Park Ave. and the Starrett-Lehigh Building on West 26th Street, declined to comment, as did Cushman & Wakefield's capital markets group, which has been leading the marketing efforts for Citi. Sphere: Related Content

Thursday, November 15, 2007

Cramo Mulls Sale Leaseback of Property Portfolio in Finland

PropertyEU - November 13, 2007

Cramo, a major service provider to the construction industry in Northern Europe, is investigating the possible disposal of its real estate assets in its home country Finland in a sale-and-leaseback transaction during the first half of 2008. In a statement on Tuesday, Cramo said it has given the assignment to Catella Corporate Finance. Cramo will continue as tenant in most of the facilities if a sale is arranged. 'At this stage it is difficult to estimate the profit impact of the possible sale,' Cramo said.

Cramo specialises in construction equipment rental and the sale and leasing of modular space from 260 outlets in 10 countries spread across the Nordic region and Central and Eastern Europe. The equipment hire business has 62 depots in Finland, while its modular hire division operates one office, two factories and 3,500 modules and site huts.

The company is listed on the OMX Nordic Exchange Helsinki and realised a consolidated operating profit of EUR 68.6 mln on sales of EUR 402 mln in 2006. Sphere: Related Content

Sunday, November 11, 2007

Station Casinos Completes $3.1 Billion Sale Leaseback of Four Las Vegas Casinos

Sec Edgar Database - November 7, 2007

On November 7, 2007, Station Casinos, Inc., a Nevada corporation completed its merger with FCP Acquisition Sub, a Nevada corporation, as part of transaction to take the company private.

A number of wholly owned unrestricted direct and indirect subsidiaries of the Company entered into a mortgage loan in the principal amount of $2.050 billion and related mezzanine financings in an aggregate principal amount of $425.0 million (collectively, the “CMBS Loans”), for the purpose of financing the consideration payable to the Company’s stockholders upon consummation of the Merger.

Palace Station, Boulder Station, Sunset Station and Red Rock (collectively, the “CMBS Property”) were sold to the CMBS Borrower. Immediately following such sale, such CMBS Property was leased back to the Company pursuant to a master lease with an initial term of fifteen (15) years and extension terms for an aggregate of ten (10) additional years. The Company in turn subleased each parcel of the CMBS Property back to the Operating Subsidiaries, with each such sublease having the same term as the master lease.

Interest on the CMBS Loans is equal to the LIBOR plus 2.3% per annum. In addition to paying interest on outstanding principal under the CMBS Loans, the CMBS Borrower is required to reimburse the lenders for securitization and disbursement expenses in an amount not to exceed $2,730,000.

The maturity date of the CMBS Loans shall be November 12, 2009, subject to three one-year extensions. The CMBS Loans may be prepaid in whole or in part during the initial two-year term with an initial prepayment fee equal to 1.00% of the principal amount prepaid with the prepayment fee declining after the one year anniversary of the closing date on a straightline basis to 0.0% on the two-year anniversary of the closing date. The CMBS Borrower will be required to hedge the LIBOR interest rate such that it will not exceed 5.5%.

At the commencement of each Renewal Term, if any, Base Rent shall be reset to be equal to the greater of (a) the annual Fair Market Rental for the Leased Property and (b) one hundred ten percent (110%) of the annual aggregate interest payments payable on the then-existing Landlord’s Debt. Tenant shall maintain a reserve (“FF&E Reserve”) for capital and FF&E expenditures in the amount of 2.5% of gross revenues

The CMBS Loans include $740,000,000 for Boulder Station; $1,170,000,000 for the Charleston Station;$471,000,000 for the Palace Station; and $725,000,000 for the Sunset Station. Sphere: Related Content

Saturday, November 10, 2007

S&P Rates C$1.23 Billion in Bonds Financing Canadian Govt Office Portfolio

TD Waterhouse Web Site - October 26, 2007

Standard & Poor's Ratings Services today assigned its preliminary 'AAA' senior secured debt rating to Royal Office Finance LP's C$1.23 billion senior secured amortizing bonds due October 2032.

The preliminary 'AAA' rating assigned to the issue of senior secured bonds by Royal Office Finance LP (ROFLP) reflects the creditworthiness of Public Works and Government Services Canada (PWGSC) and the federal government; the certainty of a rent stream fixed for 25 years; triple net leases with limited setoff and termination rights; bankruptcy-remote sole-purpose special purpose entities ( SPEs) established for the transaction; and a minimum 1x debt service cover through the 25-year term. These strengths are somewhat counterbalanced by the risk associated with refinancing C$425 million at term-end; and a minor amount of appropriation risk.

The bonds are secured by an absolute assignment of rent payments from PWGSC, a ministry of the federal government. Canadian Leaseback LP (CLLP) and ROFLP are formed by Larco Investments Ltd. PWGSC is the ministry of the federal government responsible for providing support to federal ministries and agencies by purchasing goods and services and providing office accommodation and technology services. Larco is a successful privately-owned real estate operator and developer based in British Columbia.

(Note: Private Placement Letter reports that the bonds were bought by 43 Canadian investors at 86 basis points over Canadian Government Treasurys, for a coupon of 5.209%.) Sphere: Related Content

Friday, November 09, 2007

FNV Vastgoed Completes Sale Leaseback of Four Properties in the Netherlands

PropertyEU - November 5, 2007

FNV Vastgoed, the property unit of the largest union confederation in the Netherlands, has divested four offices with a total area of 27,500 m2 via a sale-and-lease-back transaction with UBS Global Asset Management. The financial details were not disclosed.

The offices are located in Amsterdam, Rotterdam, Groningen and Bergen op Zoom. FNV, headquartered in Amsterdam, is leasing back the real estate assets on a long-term basis. Epac Property Counselors advised FNV on the transaction, while UBS Global Asset Management was advised by Cushman & Wakefield. The FNV has 16 affiliated unions representing 1.2 million members. Sphere: Related Content

Thursday, November 08, 2007

FBI Enters $60 Million Build-to-Suit for Regional HQ in Knoxville, TN

Knoxville News Sentinel - November 6, 2007

The FBI has outgrown downtown Knoxville and plans to leave in favor of a new, three-story regional field office in West Knoxville that will cost nearly $60 million.

Last month, a Cleveland, Ohio-area developer purchased 9 acres of land in the Dowell Springs Business Park off Middlebrook Pike that will eventually be home to a 99,130-square-foot office building for the agency.

In addition to employees from the Duncan building, the Dowell Springs office also will be home to employees from the FBI's Joint Terrorism Task Force that is in a West Knoxville office building and counter-intelligence agents in Oak Ridge. Lambert said the building should be finished in March 2009 and will house approximately 150 people.

The building will be developed by Carnegie Management and Development Corp. of Westlake, Ohio. According to a news release from the General Services Administration, the project has a 15-year lease value of $47.4 million.

Robert Berryhill, an executive with Carnegie, said his firm will own the building and the government will lease it for that amount. Berryhill said the total construction cost will be $58 million, and his firm plans to break ground in January. Sphere: Related Content

Bertelsmann Planning £50 Million Sale Leaseback of Publishing Division HQ in London

Estates Gazette has reported that media giant Bertelsmann has hired CB Richard Ellis to offer a 15-year sale leaseback of the 58,500 sq ft London headquarters of its Random House publishing division. The asking price is reportedly £50m which would provide a yield of around 5%. Sphere: Related Content

Wednesday, November 07, 2007

Bendon Seeking $20 Million Sale Leaseback of Auckland HQ

National Business Review - November 5, 2007

Fashion underwear company Bendon's new head office in the Airport Oaks subdivision in Auckland goes on the market as a sale-and-leaseback this week with expectations of a $20 million-plus price tag.

Bendon moved its office from comparatively primitive quarters in the East Tamaki industrial zone when the new headquarters building was completed in 2004. The distribution centre followed early last year.

If the property achieves the anticipated price bracket, it will stamp an international seal of approval on the industrial estates around the airport, with a yield in the low 7 per cent range, firmer than the office market in the central business district was managing two years ago.

The Bendon site occupies 1.64ha and has three road frontages, backing on to Airpark Drive for warehouse access. The head office area of 2167sq m has a rental rate of $250 a square metre and a small part of it a rate of $255. The high-stud 3818sq m section of the warehouse has a rental rate of $110 a sq m. Including a fitout rental for the eight-and-a-half years of the initial Bendon term, total passing rent is just under $1.65 million. Bendon has two six-year rights of renewal. Sphere: Related Content

Sunday, November 04, 2007

Pep Boys Agrees to $166 Million Sale Leaseback of 34 Stores Across US

Philadelphia Inquirer - November 3, 2007

Pep Boys - Manny, Moe and Jack, the Philadelphia automotive repair and parts chain, said yesterday it had agreed to sell and lease back 34 of its 592 retail stores.

The $166.2 million sale will reduce the company's debt, which is $560 million, Harry Yanowitz, chief financial officer, said. He said the properties being sold are at randomly selected locations across the nation.

The sale-and-lease-back program, announced last summer, is part of a turnaround strategy that began with the appointment in March of chief executive officer Jeffrey C. Rachor, 45. The chain, with locations in 36 states and $2.3 billion in annual revenue, has lost money in three of the last five years. Since June, its shares have fallen from a 52-week high of $22.49 to as low as $12.48.

The company was founded in 1921 in West Philadelphia. It grew rapidly, aided by Henry Ford's sale of Model T's without such essentials as headlamps - an effort by Ford to create an aftermarket industry that would promote and support automobiles. Two years after opening the Philadelphia store, two of the founders, Manny Rosenfeld and Moe Strauss, took a research trip in a Model T to Los Angeles, where they began acquiring properties. The company today owns properties, on both coasts and in major cities, that have increased greatly in value. It is seeking to convert that to cash to reduce its debt and fund change and growth.

When the pending deal closes later this month, the company will begin work on another batch of store sales. As a store is sold, it will be leased back for 15 years, with four five-year renewal options, Yanowitz said. No decision has been made on how many stores to sell or how far to reduce debt, Yanowitz said. Sphere: Related Content

Deutsche Woolworth Agrees to EUR 400 Million Sale Leaseback of 100 Stores in Germany

Trade News / Financial Times Deutschland - November 2, 2007

Argyll Partners, the UK investment firm, is acquiring Deutsche Woolworth, the German low-cost retailer, and intends to pass the outlets which the retailer actually owns, numbering around 100 and valued at around 400m euros in the 2005 balance sheet, to the US investment firm Cerberus, according to company sources. A sale-and-lease-back is reported to have been decided for several of the properties. The seller of the German company is the UK investment firm Electra.

Argyll has indicated that the sale will finance the restructuring of Deutsche Woolworth, through which a strengthening of operative business and a return to profitability are targeted. The German retailer, which operates around 340 branches in Germany and Austria, generated turnover of 1bn euros in 2005. Sector experts have expressed surprise that the operative business is being taken over alongside the property which, until now, has been regarded as the only valuable asset of the German business. Sphere: Related Content

Saturday, November 03, 2007

Neurocrine Biosciences Enters $108 Million Sale Leaseback of San Diego HQ

Neurocrine Biosciences Web Site - November 1, 2007

Neurocrine Biosciences, Inc. (Nasdaq: NBIX) announced today that the Company has entered into a sale and leaseback agreement with Veralliance Properties for its real estate assets, with an expected closing date before year-end 2007. Total consideration to be received by Neurocrine for the properties is $108 million. Concurrently with the closing of the transaction, Neurocrine will lease back its corporate headquarters under a lease with a 10 year term. Neurocrine has certain options to repurchase all of the properties included in the transaction during the term of the lease. Under the terms of the asset purchase agreement, Neurocrine anticipates that it will receive cash of approximately $60 million net of fees, expenses and existing indebtedness.

"Owning the properties that Neurocrine occupies has been a highly profitable strategy for the Company and our shareholders, allowing us to benefit from the appreciation in the San Diego commercial real estate market," said Timothy P. Coughlin, Vice President and Chief Financial Officer of Neurocrine Biosciences. "Improving our strong financial position at this time in a non-dilutive manner provides us with the financial flexibility to advance our clinical and research programs and build equity in our pipeline."

Neurocrine Biosciences, Inc. is a product-based biopharmaceutical company focused on neurological and endocrine diseases and disorders. The product candidates address some of the largest pharmaceutical markets in the world including insomnia, anxiety, depression, endometriosis, irritable bowel syndrome, pain, and diabetes.

(NOTE: According to the just released 10-Q report, the property was sold at a 7.0% cap rate with 3% annual rental increases, subject to a 10 year net lease with landlord roof & structure risk. The purchase option is at the greater of market or the then escallated base rent capped at 6.75%.) Sphere: Related Content

Saturday, October 27, 2007

Jelmoli Cancels £1.4 Billion Sale Leaseback of 88 Retail Stores in Switzerland

Property Week - October 25, 2007

Delek Global Real Estate, a London-listed company with Israeli investor Igal Ahouvi, has pulled out of the £1.4bn purchase of Swiss department store Jelmoli’s property portfolio because of the turmoil in the financial markets.

In a statement to the LSE this morning Israel-based Delek said the price of the portfolio had not been adjusted to reflect the uncertainty in the global market. It has asked Jelmoli to drop the price to £1.27bn to £1.35bn in order to complete the deal – which was meant to sign on October 1.

The deal, comprising of 88 stores let to the Swiss retailer, would have been the largest ever portfolio sale in Switzerland with rent rolls around £47m a year increasing to around £75m in 2009 when the developments under way are completed. Sphere: Related Content

Thursday, October 25, 2007

Pierburg Completes Sale Leaseback Of Three Properties in Germany

PropertyEU - October 22, 2007

Natixis Capital Partners announced on Monday that it has bought three German industrial real estate sites in the western German city of Neuss from the automotive company Pierburg. The financial details were not disclosed. The properties provide a total lettable area of about 80,000 m2 and are earmarked for Naxitis' Captiva Capital Partners III fund. The assets have been leased back under terms of various lengths by Pierburg, which uses them for research & development, production, offices and storage, Natixis Capital Partners was advised by Freshfields Bruckhaus Deringer, PwC und URS. The seller was advised by Catella Corporate Finance. Sphere: Related Content

Sunday, October 21, 2007

Tiffany & Co. Completes £73 Million Sale Leaseback of Flagship Store in London

Tiffany & Co. Web Site - October 19, 2007

Tiffany & Co. (NYSE: TIF) reported today that it has sold the building housing its flagship store in London for the price of £73,000,000 (approximately $149,000,000 at the sale date) and simultaneously entered into a 15-year lease with two 10-year renewal options. Tiffany had acquired the building at 25 Old Bond Street and an adjoining building at 15 Albermarle Street in 2002 for a total cost of $43,000,000 (U.S. dollar equivalent at the acquisition date). The acquisition was made in order to combine the buildings, renovate and reconfigure the interior retail selling space; that work was completed in 2006, allowing the Company to complete this sale and leaseback as planned.

This transaction results in a deferred, pretax gain of approximately $73,000,000, which will be amortized in selling, general and administrative expenses over a 15-year period, and is not expected to have a significant effect on future earnings. The Company plans to use the proceeds from the sale for general corporate purposes.

Michael J. Kowalski, chairman and chief executive officer, said, "Since opening our flagship store in London in 1986, Tiffany has developed a substantial and highly successful presence in London. Combining the Old Bond Street and Albermarle Street properties into a spacious new store has generated sales growth beyond our expectations, and we had always planned to pursue a sale-leaseback transaction following the completion of construction. We now operate five stores in London, with a sixth opening next year, and continue to be excited about the growth potential we envision in that very important market. Sphere: Related Content

Casino Nearing EUR 650 Million Sale Leaseback of 274 Properties in France

PropertyEU - October 19, 2007

French retail company Casino plans to unlock the capital tied up in its food store properties that no longer offer strong development potential. The move, which marks a new phase in Casino's property management strategy, is aimed at funding projects in France and abroad. The company said that it will transfer 255 urban and semi-urban supermarket properties in France, representing a total of 170,000 m2 of retail sales area to a new vehicle called AEW Immocommercial.

AEW was one of the first five companies authorised by the French securities regulator (AMF) to operate as an 'OPCI' (property investment mutual fund) on 11 October. The group sees the OPCI as an opportunity to enhance the value of its property assets. OPCIs are the latest in the line of tax-friendly vehicles created in France to promote investment in property stocks, after the SCPIs (non-trading property investment companies) and SIICs (REIT-style structures). They are managed by independent portfolio management companies which must also be licensed by the AMF.

The investors in AEW Immocommercial will comprise a consortium of institutional investors managed by AEW Europe, and other investors, including Casino which will hold 10% to 18% of the vehicle's capital. The move follows the sale and leaseback of Casino's head office and warehouses in 2005 and 2006.

In another innovative move for retail property, the rents paid by Casino to AEW Immocommercial will be variable and calculated as a percentage of the stores' retail sales, without any guaranteed minimum and without any indexation on the French construction cost index, the company said. Averaging 3% of net retail sales, the total rent for 2008 will be around EUR 25 mln. The leases will be for an initial 12-year term, renewable four times. AEW Immocommercial will have initial assets of EUR 455 mln, including transfer taxes, of which 30% will be financed by a bank loan.

Saint-Etienne-based Casino said also that it has sold six hypermarket properties, seven supermarket properties and six warehouses on La Réunion Island to Generali for EUR 266 mln, including taxes. Casino said that it was to transfer the properties, which are owned by Vindemia, to a new vehicle, Immocio OPCI, which was also authorized by the AMF on 11 October. The company received then an offer from the Generali Group for Immocio's entire capital.

Vindemia will lease back the assets from Immocio under 9-year commercial leases with a renewal option. The initial rents would total about EUR 18 mln per year, representing around 2.5% of net sales for the hypermarkets and 1.6% for the supermarkets. The leases would be indexed on the French construction cost index. Vindemia will continue to own the land and the car parks on the hypermarket sites. The transaction will provide Vindemia with additional resources to speed up the development of its food retailing business and strengthen its market leadership.

Casino expects to complete the transactions before the end of the year. Sphere: Related Content

Friendly Ice Cream Completes Sale Leaseback of 160 Restaurants - October 18, 2007

Friendly Ice Cream Corp. has sold its headquarters campus on Boston Road and 160 of its restaurants to subsidiaries of Realty Income Corp., a California-based company that specializes in buying retail properties and leasing them back to the original chains under long-term lease agreements. Most of the leases are repotedly for 40 years.

"This is not something that's uncommon," said James D. Sullivan, vice president for franchising and development at Friendly, yesterday. "This is really familiar in the restaurant industry. If you look at all the restaurant transactions recently, across a broad range of concepts, this is the norm. We had a number of properties encumbered with mortgages, and this was a way to eliminate some of that debt, through a sale-lease-back." The process is "part of the overall restructuring of the balance sheet for the company. It is more about securing our future for the long term," Sullivan said.

Friendly was acquired on Aug. 31 by an affiliate of Sun Capital Partners, a private equity firm based in Boca Raton, Fla., for $337.2 million. Systemwide, the company has completed sale-lease-back transactions on 160 restaurants since Sun Capital bought the company on Aug. 31. The company has 316 company restaurants and 196 franchised restaurants.

Most of the sales involve company-operated stores, Sullivan said, though a few franchise restaurants are on Friendly-owned property and a few were sold and leased back to the company. Sphere: Related Content

Nike Enters into Sale Leaseback of Two Distribution Centers in ME & NH

Womens Wear Daily - October 19, 2007

Nike Inc. is partnering with real estate firm CB Richard Ellis in a sale-leaseback of its Cole Haan and Nike Bauer facilities in Yarmouth, Maine, and Greenland, N.H. According to an internal statement from James Seuss, president and chief executive officer of Cole Haan, and Mark Duggan, president and ceo of Nike Bauer Hockey, the financial transaction would take physical assets off the balance sheet and convert them to cash, allowing further investment in core businesses. The companies will lease rather than own the properties going forward, akin to what the company does with its New York offices. There have been talks about the initiative for two years. Sphere: Related Content

Saturday, October 20, 2007

Essent Completes Sale Leaseack of 9 Properties in the Netherlands

PropertyEU - October 18, 2007

Dutch energy company Essent has bought a real estate portfolio including nine office and business properties. The assets were acquired via a sale-and-leaseback transaction with a joint venture of Utrecht's Top Vastgoed Beleggingen and Stolwijk's Burgland Vastgoed. Financial details of the transaction have not been disclosed.

The portfolio involves some 62,000 m2 of space in buildings located in the Dutch cities of Roermond, Eindhoven, Den Bosch, Breda, Eemshaven, Emmen, Groningen, Leeuwarden en Hengelo. With the exception of Eindhoven, all the properties have been leased back to subsidiaries of Essent. DTZ Zadelhoff advised the energy company. Sphere: Related Content

Skechers Enters Build-to-Suit for Massive Warehouse Distribution Center in Los Angeles

Los Angeles Times - October 17, 2007

One of the country's largest warehouses will be built in Moreno Valley for Skechers USA Inc., the Manhattan Beach shoe manufacturer said Tuesday. Skechers has agreed to be the sole occupant of a 1.8-million-square-foot building it will use to distribute shoes across the United States and Canada. The rectangular building near the 215 and 60 freeways in Riverside County will be half a mile long.

"We believe this is the largest industrial lease by a single tenant under one roof ever in the United States," said real estate broker Darla Longo of CB Richard Ellis, the Los Angeles brokerage that represented both Skechers and landlord HF Logistics I in the transaction. HF Logistics, an affiliate of Moreno Valley industrial property developer Highland Fairview, should have the building ready by January 2009, said Paul Galliher, senior vice president of distribution for Skechers. It will consolidate operations now in five buildings in Ontario.

"Having everything all under one roof will obviously improve our efficiency," Galliher said. He said it would cost "well over $100 million" to build. The bulk of Skechers shoes are made in Asia and shipped through the ports of Los Angeles and Long Beach, Galliher said. It also has operations in Italy, Romania, Brazil and Mexico. At the new facility, shoes will be removed from shipping containers and placed on shelves as high as 42 feet. Robots will roam the aisles, pulling out pairs of shoes to fill orders from Skechers stores and other retailers.

It will take about 800 employees to operate the center, with the payroll swelling to about 1,100 during the peak back-to-school season, Galliher said. Sphere: Related Content

Tuesday, October 16, 2007

Mayer Brown Enters Long Term Lease for Washington, DC HQ

Washington Business Journal - October 16, 2007

Mayer Brown LP will move its headquarters to 1999 K St. NW, the Helmut Jahn-designed building currently under construction. The law firm, signed a 15-year lease on Tuesday, to occupy all of the building's office space -- 243,000 square feet -- as part of a consolidation and expansion of its D.C. operations. Mayer Brown expects to have 250 lawyers move into the space in the third quarter of 2009.

Mayer Brown began looking for space about 15 months ago. It wanted to consolidate its operations at 1909 K St. NW and Lafayette Center. The law firm was in late-stage negotiations to occupy about 245,000 square feet of space at 1000 Connecticut Ave. NW, which is to be redeveloped, but officials changed their minds.

Vornado/Charles E. Smith tore down the older office building at the corner of 20th and K streets to build a trophy space on that corridor. The company had started construction with no preleases signed. Sphere: Related Content

Sunday, October 14, 2007

Royal Bank of Scotland Seeking £900 Million Sale Leaseback of UK Property Portfolio

Property Week - October 12, 2007

The Royal Bank of Scotland has secretly put a £900m portfolio of property up for sale to help fund its takeover of Dutch bank ABN Amro. Cushman & Wakefield is marketing the portfolio of sale-and-leaseback assets. It is the largest part of a £1.75bn raft of property sales to help fund the €71.1bn (£49.2bn) takeover, which went unconditional this week.

The £900m portfolio, codenamed Project Acorn, includes the Strand head office of the Queen’s bank, Coutts, Property Week can reveal. Among the other assets are RBS offices and bank branches at 1 Princes Street in Edinburgh and 28 Cavendish Square in London’s West End. The portfolio, which is three-quarters offices and a quarter high street bank branches, comprises 2.1m sq ft across 63 properties. It produces £47m a year in rent.

It is thought that RBS would consider providing debt for the potential bidder to ease the sale. The final bid deadline is expected in mid-November.

RBS has also put a third tranche of high street bank branches up for sale through Cushman & Wakefield, in a £200m package under the name of Liberty 3. It comprises about 150 freeholds and long leaseholds, totalling around 1.1m sq ft. RBS has sold two other Liberty portfolios since 2005 – the £100m Liberty portfolio and the £75m Liberty 2 to Joseph Ackerman.

The bank is also selling a £650m portfolio of four hotels that it had unsuccessfully tried to sell to Vector Hospitality. CB Richard Ellis Hotels advises on the sale, which includes the Waldorf Hilton and Cumberland hotels in London, the Park Inn at Heathrow and the Marriott Victoria & Albert in Manchester.

RBS would not comment on any of the sales. Sphere: Related Content

Ansbacher Seeking Sale Leaseback of London HQ

Property Week - October 12, 2007

Investment group Ansbacher plans to carry out a sale and leaseback of its 52,000 sq ft office at 2 London Bridge on London’s South Bank. It is offering a 25-year lease with a 20-year break with an annual income of around £2.2m, guaranteed by the Qatar National Bank. CB Richard Ellis is advising Ansbacher. Sphere: Related Content

Royal Bank of Scotland Plans $1.63 Billion Sale Leaseback of UK Property Portfolio

Reuters - October 12, 2007

The Royal Bank of Scotland (RBS.L) is looking to unlock capital from its UK property estate by selling 800 million pounds ($1.63 billion) of assets, a market source told Reuters on Friday.

An RBS spokeswoman said the sale was part of an ongoing programme, without confirming specific details. She declined to comment on a report in the Financial Times which said the bank would use proceeds from a sale to help finance its share of the acquisition of Dutch bank ABN AMRO.

The bank has appointed property services firm Cushman & Wakefield to co-ordinate the sale of around 60 properties in one of the biggest British corporate sale-and-leasebacks this year, the source said. The portfolio includes a landmark building on London's Strand which is currently occupied by its private banking arm Coutts.

The sale-and-leaseback office deal represents the latest phase in the bank's long-term strategy to maximise value from real estate assets on its balance sheet. "RBS constantly reviews its space requirements to ensure that our property assets remain relevant to the needs of our business and have completed two tranches of property sales in the past two years," the RBS spokeswoman said. "These new tranches are part of this ongoing programme," she added.

Earlier this month, the bank put a 650 million pound portfolio of UK hotel assets on the market in a bid to realise profits gained during a four-year UK property boom, which ended this summer. Sphere: Related Content

Universal Technical Institute Completes $33 Million Sale Leaseback of Campus in Norwood, MA

Commercial Property News - October 12, 2007

Taking advantage of favorable market conditions, Universal Technical Institute Inc. completed a sale leaseback transaction on its Norwood, Mass., campus. The building and land were sold for $33 million to an undisclosed buyer.

The transaction resulted in an almost $500,000 gain that will be amortized over the lease term. Concurrent with the sale transaction, UTI entered into a long term lease with the purchaser for an initial term of 15 years with the option to extend for up to an additional 20 years. The transaction will enhance the company's cash position. UTI cut its staff and restructured sales functions recently, too. With this sale, all 10 UTI campuses are now being leased.

Located in the suburbs of Boston, the UTI Norwood campus benefits from the expansion of commercial real estate in the Boston area. Sphere: Related Content

Saturday, October 13, 2007

Tesco Offering EUR 120 Million Sale Leaseback of Warehouse in North Dublin

Calibre / Irish Times - October 13, 2007

Tesco Ireland is preparing to sell its newly-opened distribution warehouse in Donabate, north Co Dublin, for more than 120 million. Under the terms of the deal, Tesco would lease back the 46-acre property for 25 years.

The Donabate warehouse covers 780,000 sq ft and has 79 loading bays. The site also has 600 car-parking spaces, a fuel island and a vehicle wash and steam cleaner.

A document being circulated to investors states that the initial rent will be 7 million a year, with annual reviews linked to the consumer price index up to a cap of 3.5 per cent. The initial net yield will be 5.24 per cent for the new owner. This yield is projected to grow to 9.71 per cent if inflation runs at 2.5 per cent a year over the 25 years of the lease.

Tesco, which has a 26 per cent share of the Irish grocery market, has engaged DTZ Sherry Fitzgerald in Dublin and Morgan Williams in London to market the property. Under the terms of the deal Tesco would be entitled to extend its facilities there or construct new buildings without the requirement for landlord consent. Sphere: Related Content

Friday, October 12, 2007

BMW Signs 1.2 Million SF Build-to-Suit for Two US Distrubution Centers

Commercial Property News - October 10, 2007

Industrial property giant ProLogis has inked a deal with the U.S.-based arm of German automaker BMW to develop about 1.2 million square feet of distribution space in the United States. BMW of North America has already preleased the space.

One facility will be a distribution center for BMW in eastern Pennsylvania totaling 870,000 square feet, and another in suburban Chicago totaling 306,000 square feet. BMW will use the facilities for storage and handling of automotive and motorcycle parts, as well as accessories other auto-related items. Both facilities will be built according to the Leadership in Energy and Environmental Design (LEED) standards of the U.S. Green Building Council.

In addition, ProLogis has acquired a 252,000-square-foot distribution facility from BMW in Mt. Olive, N.J., in a sale-leaseback deal. BMW will continue to occupy the building, which serves as its Northeast distribution center for automotive and motorcycle spare parts, under a lease agreement with ProLogis until completion of the Pennsylvania facility.

The new facilities will support the automaker’s presence in this country, where it sold about 313,000 BMW, Mini and Rolls-Royce automobiles in 2006. Sphere: Related Content

Thursday, October 11, 2007

Newell Rubermaid HQ in Atlanta Sold for $100 Million

Wells REIT II to Be Majority Partner in JV for $100M Office Tower near Atlanta

Wells Real Estate Investment Trust II has teamed up again with Greenstone Properties, Granite Properties and Pope & Land Enterprises, agreeing to become the majority owner of Three Glenlake in suburban Atlanta. When completed in the second quarter of 2008, the $100 million, Class A office tower will become the new headquarters of Newell Rubbermaid.

The partners announced the joint venture today and said it will close upon completion of the 14-story, 355,000-square-foot building in Sandy Springs, Ga., which has been under construction since January. The amount Wells REIT II will pay for its majority stake was not released.

Newell Rubbermaid will be the only tenant to lease the property. The company has said it plans to consolidate three Atlanta area offices and will eventually have about 650 employees at Three Glenlake. Newell Rubbermaid will have a long-term lease for the property but the terms were not available today.

The property is located on Glenlake Parkway, near Abernathy Road and Georgia 400 in Atlanta’s Central Perimeter submarket. Greenstone, Granite, and Pope & Land also developed One Glenlake. They sold that 353,000-square-foot office property to Wells REIT II in 2004. Sphere: Related Content

Kendall College Planning Sale Leaseback of Chicago Campus

Crain's Chicago Business - October 9, 2007

Kendall College is putting up for sale its newly renovated campus on Goose Island, which it will lease back from the new buyer.

Kendall has occupied the 178,000-square-foot building at Halsted Street and Chicago Avenue since January 2005, when the college moved from Evanston after buying the property. The building will go on the market unpriced, Kendall says in a statement.

“We are conducting a sale/leaseback of the property as a function of our commitment to our mission,” Nivine Megahed, Kendall’s president, says in the statement. “We want to focus our energies on providing students with the finest education possible and will be utilizing our capital for growth of programs and students — not on real estate.” Kendall has hired CB Richard Ellis Inc. to market the property at 900 N. North Branch St. CB Richard Ellis’ Michael Caprile, a vice-chairman, is the listing broker.

The school, a private college that offers degrees in business, hospitality management, culinary arts and early childhood education, uses all but 15,000 square feet of the building that it leases out to several tenants. Kendall plans to lease the entire building from the new buyer and sublease to existing tenants. Sphere: Related Content

Wednesday, October 10, 2007

SunTrust Bank Enters $375 Million Sale Leaseback of 208 Retail Bank Branches and 8 Office Buildings in 8 US States & DC

SEC Edgar Database - October 5, 2007

We anticipate purchasing fee simple interests in a portfolio of 208 single tenant retail banking facilities and eight office buildings collectively known as the SunTrust Bank Portfolio. SunTrust Bank is the principal banking subsidiary of SunTrust Banks, Inc., a financial holding company with its headquarters in Atlanta, Georgia. The properties contain approximately 1,149,131 aggregate gross leasable square feet and are located in eight states and the District of Columbia. We anticipate purchasing these properties from an unaffiliated third party, SunTrust Bank, for approximately $374.9 million in cash, and may later borrow monies using these properties as collateral. We have made an initial non-refundable deposit of $9.4 million against the purchase price. This deposit will be refunded to us if closing fails to occur by December 28, 2007 as a result of the seller’s breach of the purchase agreement.

SunTrust Bank will lease all of the retail banking facilities in the portfolio for a term of ten years, commencing in December 2007 and terminating in December 2017. SunTrust may renew each of these leases for an additional term of ten years, and then for six additional five-year terms. Each of the leases requires SunTrust Bank to pay all taxes, insurance and maintenance expenses from use of the property.

(NOTE: The annual base rent for each property is expected to increase 1.75% each year. The portfolio is expected to be acquired at approximately a 7.2% cap rate.) Sphere: Related Content

Atlas Cold Storage Completes $170.7 Million Sale Leaseback of 11 Cold Storage Facilities in Four US States

SEC Edgar Database - October 5, 2007

On September 28, 2007, we purchased fee simple interests in a portfolio of eleven cold storage facilities collectively known as the Atlas Cold Storage Portfolio. The properties contain approximately 1.9 million aggregate gross leasable square feet located in four states. We purchased this portfolio from unaffiliated third parties, Atlas Cold Storage America, LLC and Atlas Cold Storage USA, Inc., for approximately $170.7 million. We funded the purchase price at closing entirely from our cash and equivalents. We may later borrow monies using these properties as collateral. We leased each of the properties to the sellers’ affiliate, Atlas Cold Storage Company, for terms ranging from ten to twenty years pursuant to leases that require the lessee to pay all taxes, insurance and maintenance expenses from use of the property.

(NOTE: The annual base rent for each property increases by 1.75% each year. Each lease may be extended for four additional five-year terms. The portfolio was acquired at approximately a 7.2% cap rate.) Sphere: Related Content

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