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

Wikinvest Wire