Tuesday, January 30, 2007

Toyoko Inns to Enter EUR 100 Million Leaseback of Five Hotels in Europe

The Sunday Business Post - January 28, 2007

Developer Frank Gormley of Howard Euroscape has signed a joint-venture agreement with Japanese hotel operator Toyoko Inns to expand the chain in Europe. The first phase of the contract is worth €100 million and involves the acquisition and development of five sites which will then be leased back to the operator.

The deal will involve Toyoko signing 30 year leases with upward only rent review linked to the retail price index. Gormley expects a 10per cent rental return on the initial project cost and said there is potential to sell on the long-term investment.

Toyoko will focus on opening in Britain and Europe but Gormley said there was a chance the joint venture would also look at opening hotels in the United States. The Toyoko Inn group was established in 1986, and the group head office is located in Kamata. It operates more than 100 hotels, all of them in Japan except for one in China. Sphere: Related Content

Bank of Ireland and AIB to Leaseback More Branches

The Sunday Post - January 28, 2007

Bank of Ireland is set to announce a further sell-off of branches later this year, according to informed investment sources, who also said that AIB was examining a possible sale of more branches. In October, Bank of Ireland agreed sale and leaseback deals on 36 premises for just under €240 million. Half of the 36 branches were bought by Bernard McNamara, Quinlan Private and Friends First.

The selling prices of the branches reflected yields of between 2.6 per cent and 3.7 per cent, less than many investors could have achieved by lodging the money in bank accounts. However, sale and leasebacks on branches are popular because many are in prime locations, rents are increasing and investors are confident that yields will improve after the first round of rent reviews in five years.

AIB sold 12 branches last year for €100 million - well over the guide price of €87million - to developer Gerry Gannon, reflecting a yield of 2.8 per cent. AIB then announced it would sell off another 25 branches in a deal that was expected to raise €100million for the bank.

Sale and leasebacks of branches are becoming increasingly popular internationally, as the banks decide that disposing of property assets will free up capital for other purposes and realise value for shareholders.

Bank of Ireland and AIB have already sold off their headquarters buildings, while in London HSBC is now planning a €1.2 billion sale and leaseback of its headquarters in Canary Wharf in Britain, making it the largest investment deal in British history for a single building.

The bank will sign a 15-year lease on the property as part of the deal. The 45-storey building houses around 8,000 staff and was completed in 2002. Sphere: Related Content

Sunday, January 28, 2007

Accor Seeking £500 Million Sale Leaseback of 30 UK Hotels

Estates Gazette reports that French hotel company Accor is seeking a sale leaseback on a portfolio of 30 mid-market Novotel and budget Ibis hotels across the UK.

Accor retained NM Rothschild late last year to arrange the transaction, code-named Project Milky Way. Accor is seeking revenue-based leases so it will not be liable to pay all its rent should it struggle to fill the rooms. British Land is reportedly competing with at least two other bidders to buy a £500m portfolio of hotels.

The sales are part of Accor's strategy to release cash from its portfolio to create a less capital intensive hotel group. During the past 18 months, the firm has sold more than 260 hotels for £1.1bn and plans to sell a further 535 hotels worth £2.2bn by 2008. Accor currently owns more than 1,000 freehold hotels. Sphere: Related Content

Saturday, January 27, 2007

Marks and Spencer Plans £500 Million Sale Leaseback of UK Store Portfolio

Forbes - January 23, 2006

Marks & Spencer Group PLC revealed a novel property deal to plug its 704 mln stg pension deficit without requiring a major cash injection.

Instead of contributing cash into the fund M&S has agreed with the pension scheme's trustees to inject 1.1 bln stg of property assets into a partnership with the scheme, with 500 mln stg of value going to the fund -- reducing the deficit by this amount.

M&S will lease back the properties, paying rent of 50 mln stg for 15 years -- a total of 500 mln stg after 15 years when adjusted for the time value of money. The balance of the deficit is expected to be met by future investment returns.

M&S retains control over the properties and retains any capital gains on the properties which revert to it after 15 years. It expects the profit and loss implications of the deal to be minimal. M&S will have the right to substitute properties within the portfolio to suit its corporate needs.

M&S also said it would redeem outstanding secured bonds to the value of 317 mln stg issued by Amethyst Finance PLC, releasing properties with a current market value of 550 mln stg (but with a book value of 343 mln stg as of September 2006) for use in the partnership. The redemption will mean it taking a exceptional hit of 30-35 mln stg in its year to end-March 2007 results. Sphere: Related Content

Nine Welcome Break UK Motorway Service Stations on Market for £365 Million

Financial Times Alphaville - January 26, 2007

Robert Tchenguiz is poised to put a portfolio of Welcome Break motorway service stations on the market to take advantage of rising investor demand in the sector. It is understood that agents DTZ have been hired to sell the nine properties for about £365m. The move comes on the heels of the sale of Moto and RoadChef at prices that suggest a strong appetite for such assets. Mr Tchenguiz and RBS, his partner on the deal, paid £270m for the assets in 2004 through a sale-and-leaseback deal by Investcorp, the Bahrain-based investment group, which still owns Welcome Break’s operating business. Sphere: Related Content

HSBC Seeking £800 Million Sale Leaseback of Canary Wharf HQ

Property Week - January 26, 2007

HSBC, the world's third-largest bank, is reported to be considering the sale and leaseback of its Canary Wharf headquarters in what would be the biggest sale of a single building of its kind in London.

The decision to sell the one million sq ft (929,022 sq m) HSBC tower at 8 Canada Square was made at a board meeting last night following the recommendation of its property advisor, CB Richard Ellis.

It is thought that the building could be worth up to £800m, and a sale at this price would be Britain’s most valuable. The skyscraper serves as the international headquarters for HSBC, and houses around 8,000 staff.

The 45 storey, 200 metre tower was designed by Lord Foster. Construction began in 1997 and was completed in 2002. It is the second largest tower in the UK after the neighbouring Citigroup Centre, with trading room floor plates of around 45,000 sq ft (4,180 sq m).

HSBC is expected to sign a new 15-year lease on the property, and its decision is based on a wish to cash in on what many see as the continuing strength of the investment market. Some observers believe the sale price may reach £1bn, although at this stratospheric price potential buyers would be few and far between. Sphere: Related Content

Thursday, January 25, 2007

Bristol-Myers Squibb Closes $283 Million Sale Leaseback of Office Campus Near Princeton, NJ

GlobeSt.com - January 23, 2007

Bristol-Myers Squibb has closed on the sale of four Central New Jersey office buildings totaling 872,551 sf to Eaton Vance. The Boston-based wealth management firm bought the buildings on behalf of its real estate investments group. The combined sale price of $283 million factors out to more than $324 per sf.

Under the terms of the sale-leaseback deal, BMS will stay in the buildings for periods ranging from eight to 12 years. Details of the lease agreement were not released. BMS officially put the buildings on the market in July 2006, specifically looking for a sale-leaseback deal. A spokesman told GlobeSt.com that the move was part of the company’s effort to “restructure its real estate holdings.”

BMS hired Princeton-based Garibaldi, Morford & Dodds/Corfac International to find a buyer. Ultimately, it was that firm’s Robert Morford, Gerald Moore Jr. and Gerald Bower Jr. who orchestrated the transaction for the pharma giant. Buyer Eaton Vance was represented in-house.

The properties include three buildings at 777 Scudders Mill Rd. here. Built in 1993, the campus consists of three, five-story class A office buildings totaling 657,408 sf that sold for a combined $230 million, or about $350 a foot. Situated on more than 100 acres within Princeton Forrestal Center, the buildings are connected by an underground service corridor and the complex has a television/media studio. The site also has final approvals for a fourth five-story building and preliminary approvals for two more buildings.

The fourth building is 100 Nassau Park Blvd., a three-story, 215,143-sf office building in Princeton. Built in 1986 and featuring a centralized three-story atrium, the building’s contribution to the final price tag was about $53 million or more than $246 per sf. Sphere: Related Content

Wednesday, January 24, 2007

Luminar Completes £76 Million Sale Leaseback of 21 UK Nightclubs

Morning Advertiser - January 22, 2007

Luminar has announced it has completed the sale of its entertainment division and 31 non-core units in a deal worth £95.8m.

The company has sold a total of 67 units in its entertainment division, including 54 Chicago Rock Cafés and 13 Jumpin Jaks. Twenty of the freehold sites and one long leasehold property have been sold to a new company called NewCo in a non-recourse sale and leaseback deal worth £76.8m, while the remaining sites have been sold to NewCo subsidiaries for £19m.

Under the terms of the deal Luminar will take a 49% stake in NewCo, while Management, a company led by David Crabtree, current managing director of the entertainment division, will have a 31% stake, with the remaining 20% owned by property group Prestbury. The sites will be leased back to Luminar on 30-year leases.

Luminar’s existing management team will run the clubs, and the group said it expects the completed deal to return around £3m-worth of head office cost savings. The company said that any surplus funds generated from the deal will be returned to shareholders. Sphere: Related Content

Sunday, January 21, 2007

Boyne USA Completes $35Million Sale Leaseback of Brighton Ski Resort in Utah

First Tracks!! Online - January 18, 2007

Orlando, Florida-based CNL Income Properties, rapidly becoming a player in the U.S. ski industry, has purchased Utah's Brighton Ski Resort from Boyne USA for $35 million. Boyne USA will continue to operate the resort via a leaseback arrangement.

The purchase includes the 850-acre ski and snowboard resort with its 66 marked runs and seven chairlifts, two restaurants, 20-room lodge, ski rental operation and retail space at the ski area's base. The acquisition was completed on Jan. 9.

Under the terms of the sale, CNL Income Properties has leased Brighton back to Boyne under two long-term, triple-net leases with initial terms of 20 years and four five-year renewal leases. The minimum annual rent to be paid by Boyne is approximately $3.2 million in the first year and increases annually to approximately $3.9 million. Boyne has also retained the option to repurchase the property from CNL at a later date at a fixed return, exercisable beginning in the seventh year through the 25th year following the sale. Sphere: Related Content

Thursday, January 18, 2007

Australian Geological Survey HQ in Canberra Sold for $234 million

Colliers International Web Site - January 16, 2007

A German pension fund has smashed the record for a Canberra office deal with the purchase of a $234 million government complex. The acquisition of the Geoscience complex by German group Real IS heralds a major move back into Australian real estate by giant German pension funds.

MTAA Super purchased the Geoscience complex from the Australian government, as part of the latter's property divestment program, in 2000, for $152.4 million. It was advised on the latest deal by property consultant JG Service Pty Ltd.

BayernLB, which is the property arm of one of Germany's largest banks, has been growing its Asia-Pacific real estate investment business. It bought an office tower at 11-33 Exhibition Street in Melbourne for $136 million and another at 151 Pirie Street in Adelaide for $61 million last year.

The Canberra complex was acquired from the Motor Trades Association of Australia Superannuation Fund on a sub-7 per cent yield. Analysts said it had been overweight in the Canberra market. The German fund was attracted to the long-term government lease which has 14 years to run at the purpose-built facility. The Geoscience complex is on a 16.03 hectare site and spans 42,894 square metres of office and laboratory space across two buildings. It has 517 car parking bays.

Real IS was represented by Colliers International's Jon Chomley and Jim Shonk. Mr Chomley said that Real IS had undertaken due diligence in only six weeks and the deal settled last week. Sphere: Related Content

Wednesday, January 17, 2007

Cadbury Completes £31.5 Million Sale Leaseback of UK Distribution Center

Freeman News - January 15, 2007

The London office of Hines announced today that the Hines Pan-European Core Fund has signed a sale/leaseback agreement with Cadbury to acquire its distribution center, Midpoint Park, in Minworth, Birmingham, for approximately £31.5m. The acquisition represents the fund’s first UK purchase, and the second for the fund. In 2006, HECF acquired a seven-story office building at Uptown München in Munich.

Midpoint Park is integral to Cadbury’s national logistics operation. The project comprises a 400,000 sq ft, high-bay distribution warehouse located in one of the leading distribution parks in the country. Hines was advised by Strutt & Parker in the negotiations, while Cadbury Ltd. was represented by Cushman & Wakefield Healey & Baker. Sphere: Related Content

Monday, January 15, 2007

National Envelope Completes $75 Million Sale Leaseback of Nine US Facilities

Spirit Finance Web Site - January 12, 2007

Spirit Finance Corporation (NYSE: SFC), a real estate investment trust focused on single tenant, operationally essential real estate, today announced that it completed a $75 million sale/leaseback transaction with National Envelope Corporation ('NEC'), the world's largest envelope manufacturer, on December 28, 2006.

Spirit purchased nine of NEC's manufacturing facilities which also include warehousing and distribution space. NEC has agreed to lease the buildings for an initial period of 20 years, subject to a master lease with multiple renewal options.

Founded in 1952, National Envelope Corporation manufactures a wide variety of envelopes. The Company's primary markets are domestic paper merchants, envelope imprinters and direct mailers located primarily throughout North America. NEC currently has 21 manufacturing facilities and two administrative offices in the United States, as well as one distribution center in Canada. Sphere: Related Content

Sunday, January 14, 2007

Six Flags Theme Parks Enters $312 Million Sale Leaseback of Seven US Theme Parks

CNL Income Properties Web Site - January 11, 2007

CNL Income Properties Inc., a real estate investment trust focused on lifestyle properties, announced today it has entered into a series of related sale and leaseback agreements to acquire seven Six Flags Inc. properties.

CNL Income Properties intends to acquire the properties in a $312 million asset purchase agreement consisting of $290 million in cash and a note receivable for $22 million. The note has a term of 10 years, annual principal payments of $1.7 million and an interest rate of 8.75%. An affiliate of PARC Management, LLC entered into a related $312 million stock purchase agreement on Jan. 10, 2007 to purchase the properties from Six Flags.

CNL Income Properties in turn will purchase and lease back the properties to PARC Management, which will operate the seven parks under a long-term, triple-net lease agreement. The leases for the Parks are expected to have initial terms through December 2029 and three 10-year renewal options. The minimum annual rent for the leases for the Parks is expected to be approximately $26.9 million (9.3% cap rate) in the initial year. Additional rent is expected to be a negotiated percentage of incremental total revenue over a threshold. All leases will be cross-defaulted.

The transaction is expect to close on or prior to March 31, 2007. Sphere: Related Content

Saturday, January 13, 2007

Corporate Executive Board HQ Near DC Hits Market

CoStar Web Site - January 11, 2007:

The developers of Waterview, the posh, 633,908-square-foot trophy office building going up just across from Washington, DC in Rosslyn, aren't even bothering to wait until construction is completed before putting it up for sale.

With a 20-year prelease to a top-credit tenant, the Corporate Executive Board, and the building scheduled to deliver this summer, the 24-story tower is expected to command a price in the neighborhood of $425 million, according to the Cassidy & Pinkard Colliers, the broker tapped to bring the asset to market.

Waterview’s development team hoping to cash in on the prized asset includes The JBG Companies, CIM Group and Brookfield Properties. The project development cost is reported to be approximately $250 million.

While the brochure may talk about the refined design by architect James Ingo Freed of Pei Cobb Freed & Partners, make no mistake, it's the 20-year lease with annual escalations signed two years ago and already considered $7 below market that is expected to have buyers buzzing.

With a market capitalization of $3.4 billion and generating an annual operating cash flow of more than $142 million, The Corporate Executive Board is considered one of the top credit tenants in the market.

The Waterview complex includes a second tower that will house a new Hotel Palomar by Kimpton, a luxury, boutique hotel featuring 154 rooms and a high-end restaurant. The hotel is not part of the offering.

According to Cassidy & Pinkard, offers are expected the first week of February with a projected closing date at substantial completion in August 2007. Pricing is expected in the $425 million range, or a cool $670 per square foot. Sphere: Related Content

Wednesday, January 10, 2007

Accor Completes $225 Million Sale Manageback of Sofitel Hotels in Philadelphia & Manhattan

Bloomberg Europe - January 8, 2007

Accor SA, the world's fourth-largest lodging company, sold its luxury Sofitel hotels in New York and Philadelphia for $225 million to a venture of which it owns 25 percent, to help reduce debt.

Paris-based Accor said in a statement today that it agreed to continue managing the hotels for 25 years. Last March, the company sold Sofitel hotels in six other cities to the venture for $370 million. Other partners are Chicago-based Gem Realty Capital Inc. and Whitehall Street Global Real Estate LP 2005, a $3.2 billion- fund managed by Goldman Sachs Group Inc. Accor may sell its remaining U.S. Sofitel hotel, in Houston, to another buyer, said Janice Maragakis, an Accor spokeswoman in Dallas. ``We're working on another deal separate from this. There should be an announcement on that by the end of the month,'' Maragakis said in a telephone interview.

The Manhattan and Philadelphia hotels have a combined 704 rooms. The Manhattan hotel is located on West 44th Street between Fifth and Sixth Avenues. The Sofitel Philadelphia is at 17th and Sansom Streets, a site previously occupied by the city's stock exchange. Sphere: Related Content

Monday, January 08, 2007

Oregon Health & Science University Completes $44.4 Million Sale Leaseback of Bioscience Campus

OGI School of Science & Engineering Web Site - January 08, 2007

Oregon Health & Science University announced today it has completed the planned sale and leaseback of its OGI School of Science & Engineering campus in Hillsboro. The sale, a key component in OHSU's strategy of building a multidisciplinary bioscience research and education campus at the South Waterfront, was finalized with the investment group Wakefield Capital on Dec. 22. The $44.4 million sale price was in line with OHSU projections, and allows OGI to boost its endowment to more than $48 million.

The school's goal is to secure a $60 million endowment by 2012, providing support for Ph.D. students and about 40 distinguished faculty members who will eventually move to the Schnitzer Campus just south of Marquam Bridge. In the meantime, OGI will lease back its existing campus and sublease any portions not used for research and education to area bioscience, high-tech, and other companies.

In addition to building the school's endowment, proceeds from the sale will pay for the leaseback and be used to invest in new faculty members and research. Under terms of the agreement brokered by Cushman & Wakefield Inc. in Portland, the buyer, which is a wholly owned subsidiary of Wakefield Capital, LLC, a Chevy Chase, Md.-based joint venture formed to invest in health care-related real estate, will lease the campus back to OHSU for seven years, with two three-year extension options. Sphere: Related Content

Sunday, January 07, 2007

CoreNet Survey Reveals Portfolio Sale-Leasebacks on the Rise

Commercial Property News - January 04, 2007

Portfolio sale-leaseback transactions will become increasingly prevalent for companies looking to increase flexibility and limit property ownership, according to results of a survey released by CoreNet Global's Applied Research Center.

“The real big difference between single-property sale-leasebacks and portfolio sale-leasebacks is more in the flexibility it provides the company,” Eric Bowles, director of global research for CoreNet, said, adding that companies who perform portfolio sale-leaseback deals are given options beyond owning or leasing on a single-property basis. “It’s not just about accessing capital, and it’s not just about redeploying capital.”

Bowles added that availability of capital from large institutional investors will continue to drive the sale-leaseback market, citing the recent $36B purchase of Equity Office Properties Trust by the Blackstone Group as “a clear indicator that there’s a lot of capital in the market, and that capital is available for appropriately-structured deals.”

Corporate real estate executives who responded to the survey also estimated that in the next five years, six percent of property will shift from being owned to being leased. Bowles said the six percent shift equates, for CoreNet members, to $72 billion worth of property that will be sold and leased back during that time.

The Trends in Sale Leasebacks study also found that while 63 percent of respondents said they had experience with single property sale-leasebacks, only 21 percent had experience with portfolio sale-leasebacks, with 16 percent planning to in the future.

One of the biggest hurdles to sale-leaseback transactions, the study found, was an inability to obtain the required price for a property. Also, 37 percent of survey respondents said that of all the internal stakeholders in a sale-leaseback transaction, business unit executives represented the greatest challenge, while 25 percent said chief financial officers do. To mitigate the impact of sale-leasebacks on business unit financials, survey respondents cited support from executive leaders as the most important factor.

The study was compiled from a survey of 29 executives, broken down into 65 percent end users and 35 percent service providers. Eighty-seven percent of the respondents were from Fortune 500 firms, their global equivalents, or their service providers. Sphere: Related Content

Lego Enters $58.9 Million Sale Leaseback of North American HQ

Journal Inquirer - January 3, 2006

Lego Systems Inc. has sold its Enfield buildings and leased back space in some of them for its operations, which are the Danish toymaker's North American headquarters, company spokesman Michael McNally said today.

Enfield Town Clerk Suzanne Olechnicki said today that land records identify the buyer as Equity Industrial Enfield Limited Partnership, based in Needham, Mass. The partnership paid $58,880,848 for the buildings in the transaction, which took place Thursday.

Included in the sale were the distribution center and manufacturing plant. "The buildings were recently sold, and we have entered into a long-term lease on those we will continue to occupy, which are Compass House on Taylor Road and the small building on Print Shop Road," McNally said.

Lego in June announced that it would sell its Enfield buildings and lay off nearly 300 of its Enfield workers - roughly 44 percent - through March of this year. Lego also said it will close its Enfield packaging operation and subcontract all warehousing, packaging, and distribution to an international company based in Singapore.

Cuts at its headquarters in Denmark will be even larger, with 75 percent of the 1,200 employees there expected to lose their jobs in 2007, the company announced. The layoff decision was part of the company's ongoing efforts to slash business costs, Lego officials said. Sphere: Related Content

Dial Corp Sign Long Term Lease for 726,000-SF Distribution Facility in Lehigh Valley

CoStar Group - January 5, 2007

The Dial Corp. signed a long-term lease for the 726,000-square-foot industrial facility at 8400 Industrial Blvd. in Breinigsville. The consumer products manufacturer will occupy the entire building in Boulder Business Center, with an expected move in date of April.

The single-story building, owned and developed by Liberty Property Trust, delivered last September and is on 55 acres. The property includes 72 loading docks, two drive-ins and 32-foot clear height. Sphere: Related Content

Saturday, January 06, 2007

EPA Regional HQ in Downtown Denver Sold for $91 Million

CoStar Group - January 4, 2007

Government Properties Trust Inc. (NYSE: GPT) completed its acquisition of the Environmental Protection Agency (EPA) Region 8 Headquarters building in downtown Denver for $91.3 million, or about $331 per square foot, from Opus Northwest Corp. LLC.

The recently constructed, 275,645-square-foot office building is at 1595 Wynkoop St. in the city's Lower Downtown Historic District. The General Services Administration, on behalf of the EPA, executed a 10-year lease for the entire office portion of the nine-story property, which serves as the EPA's regional headquarters.

Approximately 15,000 square feet of street-level retail space is available through David Hicks brokerage. No outside brokers were involved in the direct deal. Sphere: Related Content

Monday, January 01, 2007

AT&T Completes $205 Million Sale Leaseback of Regional HQ in St Louis

St Louis Business Journal - December 29, 2006

AT&T's largest property in Missouri, One AT&T Center in downtown St. Louis, has sold to a Chicago-based company for $204.9 million.

At closing, AT&T, the sole tenant in the 1.2 million-square-foot tower at 909 Chestnut St., signed a lease spanning 10 years and nine months to continue to occupy the 42-story building. About 4,800 employees work at One AT&T Center. The company has 9,000 employees in the St. Louis area.

AT&T spokesman Don Brown confirmed the sale was finalized at the end of last week. "There is really no difference for AT&T operationally," Brown said. "The commitment is the same. The work that's done in the building remains the same. This just allows us to focus on telephone, communications and entertainment businesses as opposed to the real estate business."

The buyer, MB REIT, is a joint venture of Inland American Real Estate Trust, one of Inland Real Estate Group's companies. AT&T will pay MB REIT monthly rent of about $1.2 million. The first year's rent will total $14.7 million, with a 2 percent annual increase thereafter. "MB REIT does not intend to make significant repairs and improvements to this property over the next few years," Inland American Real Estate Trust wrote in its Dec. 19 filing with the Securities and Exchange Commission.

In August, AT&T announced its plans to sell the building and lease it back. The telecommunications company has completed similar sale/leaseback transactions with real estate it owned elsewhere in the country in the past two years. Sphere: Related Content

Portfolio of 47 Net Leased Marriott Hotels in UK Sold for £1.1 Billion

The Telegraph - January 1, 2007

Royal Bank of Scotland has struck a £1.1bn deal to sell 47 Marriott hotels across the UK – including the landmark County Hall hotel in London – to a subsidiary of Israel's Delek Real Estate and a selection of partners. RBS had bought 46 of the hotels from a joint venture between Whitbread and Marriott International last April for £951m, paying an additional £30m for a separate Marriott development.

Delek Belron Real Estate is taking a 17pc stake in the hotels while another Israeli investor, Electra Real Estate, will buy a 9.9pc stake. Other partners include FIBI Investment – the main Israeli investment arm of FIBI Holdings which has a controlling interest in Israel's fourth-largest bank – and Dublin-based Quinlan Private. Israeli Yigal Ahuvi, who has made a fortune in British real estate, is also thought to be involved. The investors will provide £203m of equity and have secured a long-term loan of £856m from the Royal Bank of Scotland to fund the acquisition.

The bank will be entitled to 20pc of the profits from any future sale of the hotels excluding an annual 2.5pc increase in their value and regular revenues from operations. The purchasers will get additional funding of around £62m for future investments in the hotels.

The portfolio, which also includes the London Regent's Park hotel, has a total of 8,456 rooms. It will be managed by Marriott under a 30-year agreement, which can be extended by another 10 years. The company estimates that the hotels' income after expenses will be around £78m a year for the next 10 years. The deal is due to be completed on March 30. Sphere: Related Content

C & S Wholesale Grocers Enters $150 Million Sale Leaseback of Four Food Warehouses

SEC Edgar Filings - December 29, 2006

On December 27, 2006, Inland American Real Estate Trust, Inc. purchased four food storage warehouses from C & S Wholesale Grocers, Inc. in a 15 year sale leaseback transaction.

The total purchase price was approximately $150 million, or approximately $87 per square foot for the 1,720,000 square foot portfolio. The initial annual triple-net rent was $10,340,500 (6.9% cap rate) and included 1.5% annual rent increases.

Three of the food warehouse properties are located in the greater Springfield, MA area and the fourth is located in Aberdeen, MD. Sphere: Related Content

Lennox Group Completes $27 Million Sale Leaseback of Distribution Center in MD

SEC Edgar Filings - December 28, 2006:

On December 11, 2006, Lennox Group, Inc. entered into a Purchase and Sale Agreement with First Industrial Acquisitions, Inc. for the sale of 16507 Hunters Green Parkway, Hagerstown, Maryland for $27.0 million. On December 28, 2006, the Company closed this transaction and received net proceeds of $26,266,575.18 which have been applied to pay down outstanding debt under the Company’s Term Loan Credit Agreement.

In conjunction with the closing of the sale, Lenox, Inc., a wholly owned subsidiary of Lenox Group Inc, agreed to lease the property, consisting of approximately 40 acres of land and a distribution center of approximately 506,003 rentable square feet, for a non-terminable primary term of 15 years. The Company will pay annual base rent of $1,922,820.00 (7.12% cap rate) with a 2% annual escalation beginning in year two of the Lease. The Company will continue to use the Property for its distribution operation and will be responsible for all operating expenses, including, but not limited to, taxes and insurance on the Property and the cost of services, repairs, maintenance and/or replacements to the Property. Sphere: Related Content

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