Sunday, July 29, 2007

CSFB HQ at Canary Wharf in London Sold for £452

Property Week - July 27, 2007

Evans Randall has bought the freehold of 5 Canada Square in Canary Wharf from the Royal Bank of Scotland for £452m its largest UK investment. The Mayfair-based private investment bank and private equity company bought the 14-storey 515,000 sq ft building, constructed in 2002, at an initial yield of around 4.4%.

The property is let to Credit Suisse International on a 25-year lease ending in October 2027. Ten of the 14 floors are sublet to Bank of America. Annual rent of £19.7m equates to around £38/sq ft. Evans Randall, which owns a 50% stake in 30 St Mary Axe, said the next rent review is in October and, with £47/sq ft achieved in similar buildings, the investment is highly reversionary.

Michael Evans, chairman and chief executive of Evans Randall, said: ‘As the single-largest investment we have made in the UK real estate market, 5 Canada Square fits perfectly with our strategy of acquiring trophy buildings in Europe’s main financial centres at rentals that have significant reversionary value.’

Bank of Scotland Corporate Banking provided debt. CB Richard Ellis advised Evans Randall; Lazards acted for the Royal Bank of Scotland. Sphere: Related Content

Friday, July 27, 2007

Hela Completes $621 Million Sale Leaseback of German Retail Portfolio

Reuters - July 25, 2007

Private British property firm Numisma said on Wednesday it had bought a portfolio of retail properties from German retail group Distributa. A source familiar with the matter said the sale-and-leaseback deal was worth around 450 million euros ($621.5 million).

Numisma -- a joint venture between the offshore family trust of British property entrepreneur Pervaiz Naviede and private wealth manager Stenham Group -- said the deal brought the value of its property holdings to just over 1 billion euros and reflected a net initial yield of 6.5 percent.

The 260,000 square metres (2.8 million square feet) portfolio comprised 17 outlets let to German home improvements retailer Hela, nine supermarkets operated by Rewe subsidiary Accord, five hypermarkets occupied by Kaufland as well as Distributa's head office and main distribution facility.

All four tenants will continue to occupy the properties. Sphere: Related Content

Thursday, July 26, 2007

B&B Completes EUR 471 Million Sale Leaseback of 159 Hotels in France

Bloomberg - July 24, 2007

ANF SA, a real estate investment trust controlled by buyout firm Eurazeo SA, bought 159 hotels across France for 471 million euros ($651 million) from operator B&B, which will lease them back.

B&B, which is France's third-largest economy hotel company and is controlled by Eurazeo, will lease the hotels back under a 12-year accord, paying an initial annual rent of 27.3 million euros, Paris-based Eurazeo said in a faxed statement today.

The acquisition is the first purchase and leaseback deal by ANF, which opted for REIT status at the start of 2006, a year after Eurazeo transferred to it 131 buildings and developments in Lyon and Marseille. Eurazeo owns 83 percent of B&B.

ANF plans to raise half of the acquisition costs by selling new shares by the year-end. It hired BNP Paribas SA to manage the sale. The rest will be financed through bank loans. Only nine of the hotels bought have loans outstanding.

ANF will also acquire about 58 million euros of additional hotels that B&B is building during the next three years, according to the statement. Sphere: Related Content

Monday, July 23, 2007

Merlin Entertainments Group Completes £622 Million Sale Leaseback of Top Tourist Attractions in UK

Property Week - July 20, 2007

Nick Leslau’s Prestbury has bought a portfolio of famous UK tourist attractions from private equity group Blackstone in a £622m sale and leaseback. The portfolio, sold by Blackstone-controlled Merlin Entertainments Group, features four UK assets, Madame Tussauds London, Thorpe Park, Alton Towers and Warwick Castle. It also includes one continental European asset, the Heide Park theme park in Soltau, northern Germany.

The properties were sold to Prestbury’s investment fund, Prestbury 1 Limited Partnership, and will be leased back to Merlin on 35-year renewable leases. The fund’s major investors are Sir Tom Hunter’s West Coast Capital, Icelandic retail investor Baugur and HBOS. It is managed by Prestbury. For the Merlin deal the four investors have put up £100m equity each, and three smaller investors have put up £25m of equity each.

Sandy Gumm, finance officer at Prestbury, said the deal was a formalisation of the ad-hoc arrangement whereby the parties had co-operated on several previous sale and leasebacks. "We’ve done a string of deals with these guys, and we know we like working with them," she said. Sphere: Related Content

Wednesday, July 18, 2007

CIMB Group Seeks Sale Leaseback of Office Tower in Kuala Lumpur

YellowBrix IndustryWatch - July 9, 2007

CIMB Group is putting up its Menara Commerce office building for sale. According to sources close to the deal, the group has already prepared the request for proposals (RFPs) to be given out to any parties interested in buying the building, located at the intersection of Jalan Raja Laut and Jalan Esfahan in Kuala Lumpur.

It is also learnt that the group plans to dispose of the property on a sale-and-lease-back basis whereby it will continue to occupy the building and pay rent to the new owner. "The property is situated in the heart of the city centre. The location is strategic. It would be a good purchase for corporate and regional REIT (real estate investment trust) players," a source told Business Times.

Property valuers contacted estimated the market value of the 630,000 sq ft building to range from RM250 million to RM441 million, based on the current market value of between RM400 per sq ft and RM700 per sq ft for commercial buildings in the area. Sphere: Related Content

Applebee’s to Pursue Sale Leaseback 508 Company Owned Restaurants

New York Times/Reuters - July 17, 2007

The franchise restaurant chain IHOP said yesterday that it planned to buy Applebee’s International for $25.50 a share to expand beyond its pancake houses, sending IHOP shares up nearly 9 percent. The all-cash deal, which represents a 4.6 percent premium to Applebee’s closing price on Friday, is worth about $1.9 billion, excluding debt, based on the company’s 75,072,000 shares outstanding as of April 1.

With a market capitalization of $980.6 million, IHOP is using securitized debt backed mostly by Applebee’s assets to finance the purchase of Applebee’s, which has a market value of $1.82 billion.

IHOP said it planned to sell, and then lease back, the real estate of Applebee’s 508 company-owned restaurants, at a rate of about 40 stores each quarter, to raise cash to help reduce the debt.

IHOP’s chief executive, Julia A. Stewart, a former Applebee’s president, said the company intended to “fundamentally change” Applebee’s business model, “moving it nearly completely out of the role of owner-operator to one that is predominantly a franchiser.” Sphere: Related Content

AEG-Electrolux Completes €60 Million Sale Leaseback of HQ in Nurnberg Germany

Finfacts Ireland - July 18, 2007

CMC Capital, the West Cork based investor in German commercial property on behalf of clients, has announced it has purchased the headquarters of the international domestic appliance group AEG-Electrolux in a €60 million investment. The property, which is located in Nurnberg, Germany was purchased in the form of a sale and lease back arrangement on behalf of CMC Capital’s property syndicate investors.

Under the terms of the deal, AEG-Electrolux has agreed to a long lease for office accommodation on the site, where it will retain its international headquarters on approximately 20,000 square metres. Over 700 AEG employees will continue to work at the complex, located close to the centre of Nurnberg.

The transaction was structured as a joint venture with the firm’s German partner, MIB AG, a leading German real estate firm based in Berlin. Under the terms of the agreement CMC Capital and MIB AG will look to further develop the site following this acquisition. Sphere: Related Content

AT&T Seeking $290 Million Sale Leaseback of Chicago Office Tower

Crain's Chicago Business - July 16, 2007

AT&T Inc. is putting a nearly 1-million-square-foot building in the West Loop on the market in what could be a $290-million sale/leaseback deal.

As a part of the sale, the San Antonio-based telecom giant would sign a 10-year lease, says a spokesman. The Chicago office of real estate firm CB Richard Ellis Inc. is marketing the 31-story structure at 225 W. Randolph St., he confirmed. He declined to comment on a possible price, but people familiar with the listing say AT&T would pay net rent, not including taxes and operating expenses, of $18 to $20 a square foot. That would put the sales price in the range of $290 million, those sources say.

Since 2005, AT&T has done several sale/leaseback deals, which total “more than $1 billion that’s been redeployed back into the business, rather than sitting in real estate,” the spokesman says. Among those transactions was the $338-million sale of the Midwestern headquarters in 2005 to Inland Real Estate Group. AT&T signed an 11-year lease, not including renewal options, for the 1.69-million-square-foot campus in Hoffman Estates.

The nearly 2,300 employees in the West Loop building would not be affected by the sale, the spokesman says. AT&T or a predecessor has owned the building since it was built in 1966. Sphere: Related Content

DnB NOR Completes $304 Million Sale Leaseback of HQ in Oslo

DnB NOR Web Site - July 12, 2007

DnB NOR's headquarters premises at Aker Brygge in Oslo were today sold to Norwegian Property for NOK 1,740 million. The sale represent just over 31,700 square metres of commercial property at Aker Brygge. The sum includes lease agreements for the headquarters offices and shopping areas. This gives a yield of 4.45 percent the first year based on existing lease agreements.

ACN Newswire reports that DnB NOR Bank ASA constitutes 82% of rental income under a four year contract with right to extend at market conditions. The rest of the tenants are mainly shops and restaurants and have an average duration of 4.4 years. All leases are CPI adjusted annually.

Both Norwegian and international potential buyers have taken part in the process. After today's transaction DnB NOR will focus on the sale of the remaining bank buildings within the Group in Norway. Over 30 bank owned buildings are planned to be sold in autumn. Sphere: Related Content

European SLB Volume Beats Predictions - July 17, 2007

London—Sale-leaseback and single-tenant property sales are on the rise in Europe and there are no signs the trend is likely to end. “There’s been a huge increase in that kind of activity,” says John Knowles, a London-based director in the Europe, Middle East and Africa capital markets group of DTZ, a global real estate services firm. “For the next 12 to 18 months, I don’t see a slowdown.”

Several factors have been driving the increased activity, Knowles explains, including the strength of the global real estate market and the sheer amount of liquidity chasing property. In addition, considerable private equity and M&A activity are altering the way corporations operate, leading to an increased outsourcing of their real estate. Third, there are accounting issues, says Knowles, since most real estate has been held at acquisition cost or book value, and not actively managed or revalued.

“There’s a huge store of real estate on corporates’ balance sheets,” he notes. “That means there’s a hidden store of value at these corporates.”

(The article goes on to site several recent and planned European sale leaseback transactions.) Sphere: Related Content

Alliance Boots Planning £1 Billion Sale Leaseback of UK Property Portfolioo

Business Sale Report - July 16, 2007

Alliance Boots' property assets are set to be sold by Kohlberg Kravis Roberts, and are thought likely to fetch around £1bn. According to reports, the move for a proposed 'refinancing' could indicate that KKR and Pessina are looking to sell and lease back Boots property to help finance the acquisition of the chemist chain. Sphere: Related Content

IndyMac Closes $116 Million Sale Leaseback of Office Campus in Pasadena, CA

Cityfeet / - July 13, 2007

Wells Real Estate Investment Trust II Inc. of Norcross, GA has acquired a 265,000-sf three-building office and retail project called Pasadena Corporate Park for $116 million in a sale-leaseback with IndyMac Bank. IndyMac has signed a 10-year lease to remain in the property, which is on Foothill Boulevard near the Interstate 210 and 605 freeways.

Bounded by North Halstead Street and East Foothill Boulevard, the project includes two three-story office buildings and a retail building, with IndyMac occupying 71% of it. The bank was represented in the sale by Todd Doney of CB Richard Ellis along with Steve Silk and Steve Somer of Eastdil Secured.

The buyer did not disclose terms of the deal, but a public filing by IndyMac listed the sales price as approximately $116 million. According to information from Real Capital Analytics, the property sold for $56 million when IndyMac bought it from Kearny Real Estate in late 2003. The property serves as IndyMac's mortgage banking headquarters.

The Pasadena Corporate Park was a value-added play for Kearny before its sale to IndyMac, with Kearny buying what was originally known as the Xerox facility in December 1999.

Kearny revitalized and repositioned the obsolete 40-year-old facility to create a class A suburban office campus before selling it to IndyMac. Sphere: Related Content

Monday, July 16, 2007

Tiffany Seeking £80 Million Sale Leaseback of Flagship Bond Street Store in London

Hemscott - June 10, 2007

The iconic Old Bond Street store owned by Tiffany & Co has been put up for sales for 80 mln stg, The Sunday Express reported, without naming sources. Tiffany is believed to have appointed property agents Harper Dennis Hobbs to market the store to ultra-rich individuals in a process that will begin this week, according to the newspaper. The newspaper said the store, which is being sold on a sale and leaseback basis, will be bought by either a wealthy Irish or Arab investor. Sphere: Related Content

Sunday, July 15, 2007

Life Style Care Nearing £260 Million Sale Leaseback of UK Care Home Portfolio

Property Week - July 13, 2007

Institutional funds and overseas investors are thought to be in the running for the portfolio of 23 care homes. Invista Real Estate, ING, Prupim and the Quercus healthcare fund managed by Quintain on behalf of Morley are all understood to have expressed interested.

Mark Shipman, founding partner of selling agent Michael Elliott, confirmed that there had been interest from institutions and overseas investors. The £260m price tag would reflect a yield of 4.57% that would rise to 6.52% in March 2022 after deducting 2% buyer’s costs. However, the £230m is thought to be a more realistic price, at a yield of more than 5%. The portfolio is expected to generate annual rent of more than £12.1m. There will be annual rent rises of 3% a year from March 2011 to March 2022. Of the 23 care homes, 16 are within the M25 and the others are in Leeds, Sheffield, Nottingham, Luton, Reading and Slough.

Southern Cross is also selling 24 of its own properties on a sale-and-leaseback basis for £130m. The company would continue to operate the care homes and keep 40% of the operating profits from them. The other 60% would go to the property owner. Philip Scott, chief executive of Southern Cross Healthcare, said the firm has been talking to potential buyers but had not yet entered into detailed discussions. "We’re not in exclusivity with any one party at the moment," he said. Sphere: Related Content

Rileys Contemplates £70 Million Sale Leaseback of UK Snooker Clubs and Bowling Alleys

>The Sunday Times - July 15, 2007

The company behind Rileys snooker clubs and Tenpin bowling centres is in detailed talks over a £70m sale-and-leaseback of its outlets.

Georgica is believed to be negotiating to sell the snooker clubs to Canada Life, the insurance company, and the tenpin bowling halls to an unidentified individual property investor. Once the deal is completed it will continue to manage the venues.

The sale-and-leaseback deals come as the quoted leisure group weighs up bid interest for both divisions.

Last month it said that it was exploring a number of “alternative options” for the bowling and snooker activities. It has promised to update the market by the end of this month.

Meanwhile, a rival tenpin bowling business is set to be sold in the next couple of weeks.

The private-equity arm of ABN Amro is close to clinching a deal to buy AMF Bowling from John Cook and Peter Harris, the holiday tycoons, for about £50m.

Cook and Harris, the main shareholders in Bourne Leisure, the privately-owned group behind Butlins, acquired AMF in 2004.

If the deal goes through it will be latest in a series of investments ABN has made in the leisure sector. Sphere: Related Content

Wednesday, July 11, 2007

AT&T Seeking Sale Leaseback of Large Office Portolio in Atlanta

The Atlanta Journal-Constitution - July 9, 2007

AT&T has put several big properties in Atlanta up for sale, including BellSouth's ex-headquarters in Midtown.

The former BellSouth building, known as Campanile, sits at the southeast corner of 14th and Peachtree streets. The prominent Midtown site will be sold because AT&T no longer needs the space. The Campanile sits at the southeast corner of 14th and Peachtree streets.

AT&T also wants to sell two other complexes, then lease them back for ongoing use by the company. Employees at the sites have been told they won't have to move. One of the spots is in Midtown and has two buildings, both located near AT&T's landmark white tower. The other location includes a cluster of five structures at Lenox Park, a development not far from Lenox Square mall in Buckhead.

AT&T bought BellSouth in December. Many people anticipated that AT&T would sell some of the Atlanta real estate the company inherited in the wake of the massive deal.

"Rather than keeping a lot of capital tied up in office buildings, we're selling some of them and leasing them back so we can redeploy the proceeds into growth projects, or using them to build value for stockholders," said AT&T spokesman Joe Chandler. "In other cases, as is the case with the Campanile building, we're selling the buildings outright."

With the sale-leaseback plan for other buildings, AT&T aims to repeat a pattern used elsewhere. The company has sold and then leased back buildings in St. Louis, Cleveland, Bedminster, N.J., and New Haven, Conn.

AT&T's Midtown 1 and 2 buildings, as they are known within the company, have a combined 842,421 square feet. Chandler said the structures were built in 2002 and 2003 and, even after a sale, would continue to house about 1,800 AT&T staffers. The structures are close to AT&T's 27-year-old tower located at 675 W. Peachtree St. Together, the buildings form what is known as AT&T Midtown Center.

AT&T's five-building Lenox Park complex has a combined 1.1 million square feet, enough room for about 2,800 staffers. BellSouth created the campus by purchasing three existing buildings in 1999 and adding two more in 2001. AT&T workers will stay at the site.

Chandler said Staubach Co. is handling the sale of Lenox Park, while CB Richard Ellis is in charge of marketing the Midtown properties. AT&T declined to say how much it is seeking for the structures. Sphere: Related Content

BenQ Agrees to $151 Million Sale Leaseback of Taipei HQ Tower

Bangkok Post - July 10, 2007

Taiwan's electronics giant BenQ said Tuesday it had agreed to sell two office buildings in Taipei as part of its cost-cutting plan.

BenQ will sell the two buildings which form its headquarters in the Neihu high-tech district to Taiwan's Shin Kong Life Insurance Co for 5 billion Taiwan dollars (151 million US dollars), BenQ said in a statement.

The two buildings are a 14-storey building with four basement levels and a 11-storey building with four basement levels. BenQ will lease back the taller building to use as its Taipei headquarters.

'This is part of the on-going financial plan to improve the overall financial strength of the company,' BenQ Spokesman Eric Yu said in the statement.

BenQ expects to make a record gain of 1.2 billion Taiwan dollars {36 million US dollars) from the sale of the buildings. The transaction is expected to be completed 40 to 60 days after the signing of the agreement on Tuesday. Sphere: Related Content

Allianz Seeking EUR 1.5 Billion Sale Leaseback of 10 Office Buildings

Forbes - July 9, 2007

IVG Immobilien AG, Babcock & Brown and Tishman Speyer are bidding for part of a 3.5 bln eur real estate portfolio offered by Allianz SE, Financial Times Deutschland reported, citing sources close to the negotiations.

Allianz plans to initially sell a 1.5 bln eur chunk of the portfolio, comprising 10 office buildings that the company aims to sell in a sale-and-leaseback deal, the newspaper said. The German insurer has commissioned Rothschild to find a buyer for the assets, it said. A decision will likely be made in 'a few weeks,' it cited market sources as saying.

The remaining 2 bln eur of assets in the portfolio, comprising almost 200 commercial properties in Germany, has attracted the interest of Goldman Sachs's Whitehall real estate fund as well as Morgan Stanley Real Estate Funds, FT Deutschland said, citing industry sources. The assets, which are being sold through Jones Lang LaSalle, are expected to be sold in August at the earliest, it said. Sphere: Related Content

Kichler Lighting Enters $35.8 Million Sale Leaseback of Cleveland HQ

Crain's Cleveland Business - July 10, 2007

An investment partnership led by Griffin Capital Co. of Los Angeles paid $35.8 million on June 29 for the headquarters and warehouse of Kichler Lighting Co., 7711 East Pleasant Valley Road in Independence, land records show.

Barry Minoff, Kichler chairman, said the company had sold the headquarters and warehouse in a sale-leaseback. He said the company leased the property for 15 years. The building includes 600,000 square feet of warehouse and office space. Sphere: Related Content

Tuesday, July 10, 2007

InBev Enters EUR 419 Million Sale Leaseback of 824 Pubs in Belgium and the Netherlands

Cofinimmo Web Site - July 7, 2007

InBev (Euronext/INB) announced today that it has entered into an agreement with Cofinimmo (Euronext/COFB) under which InBev Belgium will sell 90% of Immobrew S.A./N.V., a subsidiary which directly owns 824 pubs and some residential real estate locations in Belgium and indirectly 245 in the Netherlands, for 419 million euro for 90%, on a debt and cash free basis. At the same time InBev will enter into a lease agreement with Immobrew and some of its affiliates.

Consistent with InBev’s commitment to free up capital invested in non-core activities, InBev has decided to sell parts of its real estate assets in Belgium and the Netherlands, thereby enhancing the focus on its core beer business. The portfolio is sold to Cofinimmo, the largest listed real estate company in Belgium. The structure of the transaction ensures that InBev Belgium will retain a 10% interest in Immobrew. Immobrew will hold lease agreements (commercial types) of 27 years (plus renewal mechanism) with InBev for an initial rent of 26.8 million euro per annum (i.e. a 6.4% cap rate) indexed to CPI.

The commercial relationship between the pub tenants and InBev will not change. Cofinimmo has committed to further investments in the properties, and it is the aim of both parties to assure the continued success of the property portfolio. InBev’s Zone President for Western Europe, Stéfan Descheemaeker, said, “Freeing up resources will allow us to concentrate on winning with consumers, via our beer brands."

The transaction is expected to close by the end of 2007. Lazard acted as sole financial advisor to InBev in the transaction. Sphere: Related Content

Monday, July 09, 2007

Bunnings Enters $197 Million Sale Leaseback on Six Warehouses in Australia

Brisbane Times - July 6, 2007

Listed property developer and funds manager Charter Hall group has raised $120 million to fund the purchase of six Bunnings warehouses, a shopping centre and a half share in the private Commercial & Industrial Fund.

In a deal worth an overall $197 million, with the remaining $77 million in debt and scrip, Charter Hall will grow its market capitalisation from $1.16 billion to $1.29 billion. It is planned that the new Bunnings warehouses, spread across the country, will be the seed assets for the proposed Charter Hall wholesale Core Plus Retail Fund.

Charter Hall already has an array of retail assets including bulky good centres and Coles distribution centres. These will be placed in the new retail fund with the Bunnings sites giving it a value of about $438 million.

For its part Bunnings, part of the Wesfarmers group, will lease back the centres on 12-year leases. Sphere: Related Content

TDC Completes $757 Million Sale Leaseback of 224 Properties in Denmark

TDC Web Site - July 6, 2007

Today, TDC A/S announces that the company has entered into a sale and lease back agreement regarding 224 of its 1586 properties in Denmark with another company having ATP Ejendomme A/S and PFA Ejendomme A/S as its main investors.

The properties cover about 480,000 sqm and are mainly being used for technical and administrative purposes. TDC's head office at Nørregade 21, Copenhagen, which is owned by KTAS' pension fund, is not included. As a consequence of the sale and lease back, in future TDC will be a lessee of the properties. The leases are interminable for up to 30 years for the lessee as well as the lessor.

The total consideration is DKK 4.1bn on a cash and debt free basis. The sale is
expected to result in an after tax gain of approximately DKK 2.8 bn which will
be included in the 3Q statement of income under special items. Sphere: Related Content

Swiss National Railway Company SBB Completes £38.3 Million Sale Leaseback

Property Week - July 6, 2007

Livermore Investments Group, an AIM-listed company that gave up online gaming in January to become an investment company, has carried out its first property deal. The group, led by Noam Lanir, paid CHF93.5m (£38.3m) for a 366,000 sq ft office in Bern in a sale-and-leaseback deal with the Swiss national railway company, SBB.

The deal is the first in Livermore’s aim to buy $1bn (£500m) of mainly Swiss Property ‘generating secure income streams from tenants with high credit ratings’. The block, Wylerpark, will be leased by SBB for a minimum of 12 years at CHF4.3m (£1.77m - a 4.6% cap rate) a year for the first year, rising each year in line with the Swiss consumer price index.

Livermore will also build 39 flats overlooking the Alps on the land, which are expected to be completed in 2008 at a cost of CHF16m (£6.5m). It has also bought the rights for 86,000 sq ft of office development at a later date, which it said it intended to pursue.

"This investment will generate a secure income stream from an AAA-rated tenant and potentially provide additional yield enhancement through the development of the accompanying residential project and the additional commercial development rights," he added. Sphere: Related Content

Friday, July 06, 2007

Citibank Awards $139 Million Sale leaseback of 23 New York City Bank Branches

Commercial Property News - July 6, 2007

A portfolio of 23 Citibank branches in the New York City metropolitan region drew an unusual level of interest from investors before it fetched $139.4 million from the winning bidder, an affiliate of Aegon, the Dutch life insurance and pension firm.

“This is one of the most actively bid portfolios that we’ve ever handled,” Kenneth Zakin, a senior managing director at Newmark Knight Frank, told CPN this morning. Zakin led the NKF team that handled the transaction in concert with an in-house team from Citigroup. Aegon was represented by a Dubuque-based affiliate, Aegon USA Realty Advisors Inc.

All told, some 50 potential investors participated in the first round of bidding, and up to 20 bidders continued through the second round. Bidders ran the gamut from REITS and private investors to net-lease and 1031 exchange investors, Zakin noted. About half of the properties are net-leased by Citibank and the rest have multiple tenants.

Zakin attributed the strong competition for the assets to the rare combination of a credit tenant--in this case, Citibank--offering attractively located branches. “We haven’t seen, in the New York metro area, this kind of product,” he explained. The 207,000-square-foot portfolio is distributed through four of New York City’s five boroughs plus the affluent suburbs of Nassau and Westchester Counties. Zakin suggested that Citibank’s sale-leaseback strategy reflects the national trend among commercial banks of monetizing assets. Sphere: Related Content

Thursday, July 05, 2007

Mekonomen Completes $78.5 Million Sale Leaseback of 45 Properties in Sweeden & Denmark

Mekonomen Web Site - July 2, 2007

Mekonomen today completed the sale of the Group’s property portfolio, comprising 85,000 square metres of floor space, distributed among 45 retail properties and other commercial properties in Sweden and Denmark.

The purchaser is AXA Group of France, which took over the portfolio on 2 July 2007. The purchase price was SEK 529 million. (The annual rental expense is estimated at approximately SEK 36 M.)

The transaction gives rise to an after-tax capital gain of SEK 131 million. This amount will be reported in earnings during the third quarter of 2007, rather than in the second quarter, as previously announced.

Mekonomen is a car spare parts chain with its own wholesale operation and a nationwide retail network of wholly owned and co-operating stores in Sweden, Norway and Denmark. Group revenues mainly consist of revenues to service centres and motorists via wholly owned stores, and wholesale operations aimed at co-operating stores. Sphere: Related Content

Morrisons Ponders £1 Billion Bid For Sale Leaseback Bid for 25 UK Supermarkets

The Telegraph - July 5, 2007

Supermarket group Morrisons has received several approaches for a portfolio of 25 sites that is expected to fetch more than a £1bn.

The company announced at its interim results earlier this year that it was looking to unlock value from the sites which are within or near its shopping centre parks, as well as from the shops themselves. The deal would help pay down the company's debt and return cash to shareholders.

The move to sell and leaseback sites has been looked at by several supermarkets, including Sainsbury, which has come under pressure from investors to relinquish its freeholds.

Morrisons declined to comment yesterday on who had made the approaches for the sites. Morrisons has already cashed in £1.3bn from property disposals since it bought rival Safeway. Sphere: Related Content

SunTrust Plans Sale-Leaseback of 48 Office Buildings, 425 Bank Branches

CNN Money/Commercial Property News - July 3, 2007

As SunTrust pursues its goal of saving $530 million by 2009, the bank said today it will sell and then lease back 473 facilities--48 office buildings and 425 retail branches--in the Southeast and Mid-Atlantic regions.
(Link to Offering Materials)

William Reed Jr., SunTrust vice chairman in charge of its geographic banking organization, said the office buildings would be marketed separately but the sale/leaseback of the retail branches would be offered in one portfolio. No branch closures are planned as part of the sale/leaseback initiative, he said in a release. The total square footage of the office buildings was not disclosed.

A SunTrust spokesman told CPN today that of the bank's 1,691 branches, the company owns 720. "We are selling about 58 percent of the branches of the 720 owned and 25 percent overall," he said. The spokesman declined to say whether SunTrust expected to put the remaining branches it owns up for a similar sale/leaseback initiative in the future. "This is the extent of what we've announced," he said, adding that the company expected these transactions to be completed by the end of the year.

The sale/leaseback plan of SunTrust's corporate real estate is part of an overall restructuring program to boost efficiency and raise shareholder value.

"All the transactions are either net sale/leasebacks or sale partial leasebacks," the spokesman said, adding that the company would consider selling the office buildings in groups rather than individually.

He said SunTrust was the sole tenant in most of the buildings. The spokesman reiterated that SunTrust was going to keep a significant presence in the office buildings for an extended period of time even though the company is looking to shed about 300 positions in its geographic banking organization. Sphere: Related Content

Neckermann Completes €197 Million Sale Leaseback of Campus in Frankfurt

SEGRO Web Site - July 3, 2007

SEGRO has exchanged contracts on its largest ever transaction in Continental Europe, the sale and leaseback from Neckermann (a KarstadtQuelle group company) of a major office and distribution campus in Frankfurt for €197m, including all acquisition costs. This follows SEGRO’s 2005/06 €163m acquisition of a major logistics portfolio and landbank from KarstadtQuelle AG in a sale and leaseback transaction.

The property is located approximately 4km from the centre of Frankfurt on Hanauer Landstraße, the main artery running east from the city, near to the new European Central Bank building, which is currently under construction.

The assets comprise a total of 30 ha and has a built area in excess of 310,000m², including some 86,000m² of high quality office space. The remainder of the site includes high and low bay warehousing, flexible business space, a large data centre and some small retail units.

Approximately 83% of the income from the site (occupied entirely by Neckermann) is secured on leases of at least 10 years, with the remaining space, principally offices that have been let to other Karstadt group companies or to Neckermann’s contractors, leased on shorter terms, thus representing a refurbishment / redevelopment opportunity in the medium term.

(Bloomberg quotes Harm Meijer, an analyst at JPMorgan Chase & Co. in London, as saying annual rental income represents a net 7.9 percent of the purchase price after costs, with rents pegged to consumer price inflation.) Sphere: Related Content

Citigroup European HQ in London Reportedly Sold for £1 Billion - July 2, 2007

Royal Bank of Scotland (RBS) was today understood to have sold one of its two City tower blocks in a deal worth £1 billion, marking the second-biggest property transaction ever seen in the UK and netting the Edinburgh bank an estimated profit of around £310 million.

Scotland's biggest company is said to have offloaded the landmark 25 Canada Square - currently the European headquarters of financial services giant Citigroup - to a joint venture group featuring PropInvest and former Dublin tax inspector Derek Quinlan's Quinlan Private group, whose other investments include Claridges Hotel, in London, and the Jurys Inns chain.

PropInvest, meanwhile, is run by Sheffield-based businessman Glenn Maud, who was said to have been one of the bidders for Swiss Re's flagship "Gherkin" building when it was sold earlier this year for £600m to an affiliate of German property group IVG Immobilien. It is thought that Mr Maud is putting around £500m of his own cash into the purchase.

Citigroup will remain in the 1.22m square feet, 45-storey building and has secured a further 20-year lease, paying £46.5m a year in rent for the landmark tower.

RBS bought 25 Canada Square and another smaller building at number 5 Canada Square four years ago in a deal worth £1.1bn. Lazard, which advised RBS on the deal, is thought to also be advising on the sale of RBS' smaller Canada Square property, which is currently let to Credit Suisse and sub-let to Bank of America - the group which RBS is trying to reach an agreement with on a carve up of ABN's US-based unit LaSalle.

It is unclear which proportion of the £1.1bn RBS originally paid was for 25 Canada Square, but the market value was £690m, according to details of the sale at the time, which also revealed the building charged annual rental income of £44.9m in 2003.

The smaller of the two buildings, 5 Canada Square was worth £327m on the market in 2003. It is thought that it could fetch £400m, taking RBS' total profit closer to £400m if and when the second building - which covers 515,000 sq ft - is sold. Sphere: Related Content

Tuesday, July 03, 2007

Marseille-Kliniken Completes EUR 95 Million Sale Leaseback of 6 Healthcare Properties

Marseille-Kliniken Web Site - June 29, 2007

Marseille-Kliniken AG successfully closed a third substantial sale-and-lease-back transaction with real estate investor Grosvenor House Group PLC, Great Britain. To this end, Marseille-Kliniken AG will sell a total of six properties - three care facilities and three rehabilitation properties, totalling 1,304 beds to the British investor by way of a sale-and-lease-back transaction and will simultaneously lease all properties back from the company in the long term.

The transaction with a total volume of EUR 95.5 million provides the enterprise with expanded financial flexibility to realize its growth strategy in core segment care. After the implementation of the transaction, the real estate portfolio of the Marseille-Kliniken AG will be divided into approximately 20% owned and 80% leased facilities. The transaction will further reduce the long term financial debts of the enterprise. Sphere: Related Content

Bank of New Zealand Office Tower in Auckland Sold for $45.5 Million

NZ Herald - June 30, 2007

A European investment company is the latest offshore investor to show an interest in the Auckland property market, paying $45.5 million for a 7500 sq m CBD office building being developed by Mansons TCLM at Quay Park.

The sale, while the building is still under construction, reflects strong international competition for large buildings which continues to be a feature of the New Zealand commercial and industrial property market.

The property was sold with a 12-year lease to the BNZ from completion scheduled in April 2008. The bank will relocate almost 300 staff into the property, which will house a call centre and will also meet the company's disaster recovery requirements and will be self-sufficient in the event of a power outage.

It is the second office building that Mansons has sold in the Quay Park precinct this year prior to construction having been completed, coming on the heels of the sale of the green-rated GE Money building earlier this year for $91 million, also to a European investment company. Sphere: Related Content

MWB Seeking £450 Million Sale Leaseback of Hotel Portfolio

The Times - June 30, 2007

Marylebone Warwick Balfour (MWB), the property group under attack from its biggest shareholder, has appointed advisers to sell its Malmaison and Hotel du Vin assets for more than £450 million, The Times has learnt.

Following the collapse of the sale of the assets to Vector Hospitality, MWB has retained Bank of America to find a new buyer. The hotels are expected to be acquired by a property investment firm on a sale and lease-back basis, with MWB continuing to manage them.

The deal with Vector was to have comprised 17 Malmaison and Hotel du Vin properties for £382 million plus a pipeline of seven further hotels for an additional £113 million, making a total of £495 million.

The property portfolio to be sold through Bank of America comprises the 17 original properties plus four more that are due to open in the next five months in Cheltenham, Reading, Cambridge and York. Sphere: Related Content

Monday, July 02, 2007

German Savings Bank Haspa Announces Euro $400 Million Sale Leaseback of 118 Properties

Forbes - June 29, 2007

German savings bank Hamburger Sparkasse (Haspa) said it is selling 118 properties to two funds managed by US investment firm Strategic Value Partners in a sale-and-leaseback deal, confirming earlier reports. No financial details were disclosed.

Financial Times Deutschland earlier cited market sources as saying Strategic Value Partners will pay 400-500 mln eur for the properties. Haspa said it will retain important buildings such as the headquarters and the regional centers. Sphere: Related Content

Sunday, July 01, 2007

Sun Microsystems Completes $212 Million Sale Leaseback of Office Campus Near Boston

Boston Business Journal - June 29, 2007

Sun Microsystems has sold its Burlington campus for $212 million to burlington based developer Nordblom Company for $212 million. The campus will be renamed "Network Drive at Northwest Park."

Sun Microsystems will downsize its presence at the 158-acre campus which was built in 1998. As part of the sale of the property, Sun Microsystems will remain a tenant but will only lease back about 450,000 square feet, said Tamie Thompson of Jones Lang LaSalle, whose firm is heading up the leasing of the Sun campus for Nordblom.

Sun Microsystems executed a 10-year lease with "mid-market rents," said Hunnewell who declined to provide specifics. Approximately 1,500 Sun Microsystems employees work at the Burlington campus.

In addition to 300,000 square feet available for lease in existing buildings, Nordblom has the right to build another 570,000 square feet of commercial uses. Hunnewell said permits allow for office, retail and hotel development on the site but Nordblom has not decided what use or combination of uses will be added to the campus. Sphere: Related Content

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