Monday, March 29, 2010

Leighton Contractors Agrees to $94 Million Sale Leaseback of Brisbane HQ - March 29, 2010

Leighton Holdings Limited (LEI) said it has signed a contract to sell the South Tower of HQ in Brisbane’s Fortitude Valley to AFIAA for $94 million. AFIAA is the investment foundation of 18 Swiss pension funds.

CEO of AFIAA, Hans Brauwers, said the acquisition was a logical development of the foundation’s strategy of counter-cyclical investment.

“The Australian market is extremely attractive at the moment – as a country rich in raw materials and on the doorstep of Asia, Australia is benefiting directly from the pronounced upswing in the east, particularly China and India,” Mr Brauwers said.

The tower is fully leased to Leighton Contractors as their new head quarters on a fixed 10-year lease.

Leighton Properties’ executive director and state manager, Queensland, Andrew Borger, said an EOI campaign for the HQ North Tower would commence immediately.

“There is still very strong interest in high quality, new assets from both national and international investors and we are confident bringing HQ North Tower to the marketplace,” Mr Borger said.

“Fortitude Valley is now the most active city fringe office precinct in Brisbane."

"It’s location is viewed as an extension of Brisbane’s CBD and currently there is in the order of $10.3 billion worth of government investment in the construction of road and public transport infrastructure that will benefit this area.” Sphere: Related Content

Friday, March 26, 2010

Almar Management Completes $55 Million Sale Leaseback of Four California Marinas

Citybizlist South Florida - March 25, 2010

Orlando-based CNL Lifestyle Properties, Inc., a commercial real estate REIT that invests in lifestyle properties, has acquired a portfolio of four coastal marinas in California for an aggregate purchase price of approximately $55.0 million, excluding transaction costs.

The marinas were acquired through a sale-leaseback arrangement and are subject to triple-net leases with an initial term of 20 years and two 10-year renewal options. In connection with the transaction the Company assumed three existing loans collateralized by the properties with aggregate outstanding principal balances of approximately $14.0 million.

All properties are operated by Almar Management, Inc.:

Ancapa Isle Marina - Oxnard, California
438 wet slips;
Purchase Price (in thousands): $9,829

Ballena Isle Marina - Alameda, California
504 wet slips;
Purchase Price (in thousands): $8,179

Cabrillo Isle Marina - San Diego, California
463 wet slips;
Purchase Price (in thousands): $20,576

Ventura Isle Marina - Ventura, California
579 wet slips;
Purchase Price (in thousands): $16,418" Sphere: Related Content

Banco Sabadell Agrees to EUR 403 Million Sale Leaseback of Bank Branch Portfolio in Spain (as translated to English by Google)- March 26, 2010

Banco Sabadell sells 378 offices and other properties for 403 million.

In its statement, noted that the sale will simultaneously couple to formalize a long-term lease and that branch is located in Spain.

The total transaction price is EUR 403 million, reflecting an initial yield of 6.65%, and represents for Banco Sabadell a capital gain of approximately EUR 265 million, before taxes.

Most of the assets, which have a surface ranging from 150 square meters (sqm) and 1,000 meters - are found in Catalonia and Madrid, the rest being distributed among the different autonomous communities.

Drawing on the total areas can be emphasized that 17% of premises are situated in the cities of Madrid and Barcelona.
The funds obtained by this operation, intended to increase their 'capital base,' explained the president of Banco Sabadell, Josep Oliu, before the meeting this week, since its objective is 'to reach a 'core capital 'percentage of equity-highest quality-from 8%, one point more than market demand as a bank Sabadell. At this time the core capital of the bank is 7.6%.

This is the second such transaction that closes Banco Sabadell since last year earned 125 million for various operations. Sphere: Related Content

Mitchells and Butlers Reconsidering Sale Leaseback of Large Pub Portfolio?

Mail Online - March 22, 2010

The sale and leaseback of Mitchells and Butlers pub estate is back on the agenda.

A strategic review of the battered pubs group will show a 'change in mindset' at the firm. It had steadfastly resisted attempts by investors to force it to sell off property worth £4bn at its peak.

But the 60-day audit by new chairman John Lovering, who was appointed after 23pc stake owner Joe Lewis cleared out the old board earlier this year, will stop short of pushing for disposals.

But it will signal the board of M&B is open to the idea. This is a significant thawing from the stance held by ousted chief executive Tim Clarke.

While some investors might not feel this goes far enough, Lewis's right hand man, Richard McGuire, said: 'Its for the board to decide the best course of action and restore value for shareholders.

"We look forward to putting a series of questions to them on Wednesday."

Chief executive Adam Fowle signalled in January he would focus on growing key brands including Sizzling Pubs and Toby Carvery.

In a significant departure from growing the group through buying freehold properties, the review will set out plans to accelerate expansion through leasehold sites.

M&B has had a disastrous two years after being stalked by investors Robert Tchenguiz and embarking in its doomed currency gamble that cost it £422m previously.
The shares closed 1.10p higher at 292.1p valuing M&B at £1.8bn. Sphere: Related Content

Hornbach Completes $47 Million Sale Leaseback of Retail Land in Switzerland

Globes - March 10, 2010

Aspen Group Ltd. (TASE:ASGR) has bought a commercial lot in Biel, Switzerland, through a partnership in which Aspen owns a 50% stake, for CHF 50 million (NIS 176 million). The transaction is a buy and lease-back deal with DIY chain Hornbach, which fully leases the 3.5-hectare (8.75-acre) lot, which has 500 shops with 18,600 square meters of space altogether. Hornbach Holding AG (XETRA:HGH) has a 15-year lease with three five-year options to extend.

Annual rent from the property amounts to CHF 3.12 million, giving a 6.25% gross yield on investment. Sphere: Related Content

Sunday, March 21, 2010

Center Parcs Mulling $1 Billion Sale Leaseback of Holiday Park Portfolio

Financial Times - March 19, 2010

Blackstone, the private equity group, will test investors’ appetite for large real estate deals with plans for the sale of a majority £1.4bn stake in its Center Parcs property portfolio.

Blackstone has begun to sound out institutional interest in the sale of the UK leisure and holiday parks, which could lead to the sale of about three-quarters of the business for as much as £1.4bn.

The group, which also owns the operating business that runs the parks, would look to retain a substantial interest in the properties.

Blackstone is said to have spoken to institutional investors this week at Mipim, the annual property festival in Cannes, about its plans for the portfolio, which are still at an early stage.

The private equity real estate fund manager last week received approval from the holders of the bonds that backed the portfolio acquisition to extend the debt by a further two years until 2013, which has given it time to work on the proposals.

It will reinvest cash in the business rather than take dividends during the period. One idea would be for the group to create a new unlisted or listed fund vehicle to own the assets in which investors could buy a stake, according to Estates Gazette.

Blackstone is also understood to be considering similar sale-and-leaseback transactions on other parts of its property portfolio. There is considerable demand among institutional investors for real estate assets that offer long leases and secure income streams through rent from reliable tenants.

Even so, any sale would be the biggest since the last days of the previous property boom.

Blackstone acquired the operating and property businesses in consecutive deals in 2006 for a total of £1.1bn.

The group declined to comment on Friday night. Sphere: Related Content

Saturday, March 20, 2010

Mercator Nearing EUR 1 Billion Sale Leaseback of Supermarket Portfolio

PropertyEU - March 17, 2010

US private equity group Advent International is the frontrunner in a bid to acquire EUR 1 bn worth of property being sold by Slovenian retail chain Mercator, according to reliable sources. Mercator is divesting the assets on a sale-and-leaseback structure, sources say.

Advent International has long been active in the Central and Eastern European market, launching its first fund in the region in 1994. In 2008 the company set up its fourth CEE fund, ACEE IV, which has a EUR 1 bn war chest for investment in the region. Sphere: Related Content

Siemens Completes Sale Leaseback of Large R&D Campus in Germany

Siemens Real Estate Web Site - March 9, 2010

Siemens Real Estate (SRE) has sold the office and business park in München-Perlach to an acquisition company set up by HIH Hamburgische Immobilien Handlung GmbH (HIH) and RFR Holding GmbH (RFR). The parties have agreed to disclose no details on the purchase price.

The site, which is located in the east of Munich, formed part of the assets of the fund administered by Siemens Pension Trust e.V. The sale and reinvestment of the proceeds in the fund assets is intended to optimize the trust’s investment profile. Siemens will maintain its connection with the park and continue its presence on site: The group has signed a leasing agreement with the investor for all buildings on the complex for the next 13 years, with options to extend this by a further 15 years.

The office and retail park in Neuperlach has a net floor area of approx. 370,000 square meters and covers a plot area of more than 425,000 square meters. There are more than 30 individual buildings on the site, all of them interconnected. It is home to a number of Siemens’ departments, including Corporate Technology (research and development), Siemens IT Solutions (information technology), Siemens Financial Services (financial solutions provider) and SRE (real estate).

The acquisition company, BSC München Grundstücks GmbH & Co. KG, consists of a private placement managed by HIH Hamburgische Immobilien Handlung GmbH (HIH) and RFR Holding.

(Note: Other sources report that the transaction yielded a 9.5% return on cash equity as a result of a EUR 250 million financing provided by a syndicate led by Helaba.) Sphere: Related Content

Friday, March 19, 2010

WesTrac Enters $100 Million Sale Leaseback of Property Portfolio in Australia

Sydney Morning Herald - March 18, 2010

Kerry Stokes has transferred more than $100 million of property out of his earth-moving business, WesTrac, to his private company, Australian Capital Equity, and will lease it back to the merged Seven Group Holdings for $18 million a year.

Documents sent to Seven Network shareholders about the merger of Mr Stokes's media interests with his earth-moving business WesTrac Group reveal a deal excising some of WesTrac's ''non-core'' assets was struck the day before Seven and WesTrac announced merger plans in February.

Part of the deal involves ''all freehold properties owned by WesTrac Group and used in the WesTrac business being transferred out of WesTrac Group to Fairburn Nominees,'' later identified as a wholly-owned subsidiary of Mr Stokes's ACE.

The Australian Financial Review is this morning reporting Mr Stokes as having said there will be no revised offer.

After the sale and leaseback valuing the properties at $100.6 million, Mr Stokes's ACE becomes a landlord in another related party transaction.

"These properties used in WesTrac business will then be leased back to the WesTrac Group under triple net leases. The rent of these properties will be [about] $18 million per annum, increasing to [about] $40 million per annum" when a series of projects are complete.

The day after the deal for WesTrac Group to pay rent on the properties, Seven said it would merge with WesTrac Group to become Seven Group Holdings.

That day, Seven announced an "agreed enterprise value" of $2 billion for WesTrac, including half-equity and half-debt.

The property deal includes a 3 per cent annual rent increase on a 10-year term, the lessee paying maintenance costs on the property up to $100,000 per month before the owner may be asked to contribute, and the lessee paying the owner's legal costs.

ACE is being paid $1 billion in Seven Group Holdings shares for the WesTrac business. Mr Stokes will emerge with 68 per cent of the new merged SGH business. The documents also show a series of related party transactions including an eight-year deal WesTrac has with a subsidiary of ACE to use its aircraft for a monthly fee of $165,000.

The documents reveal that $10.8 million in fees is payable by Seven Network should the deal not proceed.

Also disclosed: Seven's listed investments contain "an unrealised and unadjusted loss of [about] $60 million"; and KKR, Seven Network's joint venture partner in Seven Media Group, can exit its stake at will, triggering payment of a deferred tax liability of $600 million. Sphere: Related Content

Thursday, March 18, 2010

Liberty Enters £41 Million Sale Leaseback of Flagship London Store

City A.M. - March 17, 2010

Liberty yesterday said it is being pursued by more than one suitor after the West End department store confirmed it had sold its building for £41.5m in a leaseback scheme.

The company sold the freehold interest in the 125,000-square foot store, off Regent Street, to private property investment firm Sirosa.

Liberty will take a 30-year lease on the building at an initial annual rent of £2.1m, with five yearly fixed rent reviews. The firm, which is 68 per cent owned by property group MWB Holdings, was set up 135 years ago. The deal still depends on the agreement of MWB and other investors.

Meanwhile Liberty admitted that it has been the target of more than one takeover approach.

A statement yesterday said: “Liberty confirms that it has received approaches which may or may not lead to an offer being made for the company.

“At this stage, it is too early for the board to determine whether or not these discussions will result in any formal offer being made for the company.”

The company has said that the sale of the building will not affect any talks in connection with a takeover bid for the business. Liberty has not identified the takeover contenders. Sphere: Related Content

Wednesday, March 17, 2010

Metro Completes "Wrap" Sale Leaseback of Two German Shopping Centers

Property Funds World - March 15, 2010

Captiva Capital Partners III has acquired two shopping centres via a structured sale and leaseback transaction with Metro.

The centres, Förde Park in Flensburg and the Saarbasar in Saarbrucken, are fully let, flagship retail destinations, hosting a wide variety of specialist stores spread over the combined lettable area of over 85,000 square metres.

They include anchor tenants like Media-Markt, Real, Praktiker, H&M, Aldi and C&A. The centres annually attract over 8.7 milliom visitors.

Metro has signed a long term lease over the entire lettable area on both centres. In addition, it will continue its existing role of centre management.

As part of the yransaction, Captiva has also entered into option agreements with Metro to acquire three additional centres over the next three years. These centres are comparable to Flensburg and Saarbrucken and will also benefit from a long-term master lease with Metro.

Stephan Fritsch, principal at Natixis Capital Partners, which advised Captiva, says: "The centres are well located, established and dominant in their markets. Consumers are attracted by the easy access to a range of international brands, whilst the retail tenants appreciate the attractive rent levels and high footfall. The master lease structure provides Captiva with access to long term, stable income. Sphere: Related Content

Saturday, March 13, 2010

NHI Agrees to Sale Leaseback of Three Nursing Homes and a Hospital

Nashville Business Journal - March 12, 2010

National Health Investors Inc. has announced the purchased of three assisted-living facilities and a psychiatric hospital, the company announced today, as part of $29.7 million in deals that will turn NHI into a landlord for the facilities' operators.

The assisted-living facilities, located in Minnesota and with a total of 102 beds, are run by Suite Living Senior Specialty Services, which was paid $17.2 million to sell the buildings and become a tenant. It has signed a 15-year lease that starts at $1.72 million a year (a 10% initial yield), NHI said.

The California acute psychiatric hospital, Alvarado Parkway Behavioral Institute in La Mesa, was bought for $12.5 million from Helix Healthcare. The cost of its 15-year lease will start at $1.5 million a year (a 12% initial yield.) Sphere: Related Content

Friday, March 12, 2010

Claire’s Stores Agrees to $18 Million Sale Leaseback of HQ near Chicago - March 12, 2010

Claire’s Stores has sold its 527,661-square-foot headquarters and distribution center here for $18 million to Angelo Gordon Net Lease Fund in a leaseback deal. The building, which includes about 110,000 square feet of office space, is on 28 acres just off of Interstate 90 and directly adjacent to the Huntington Woods corporate park.

Having gone out of style during the economic downturn, sale-leasebacks are on a massive comeback, says Robert Brennan with CB Richard Ellis. Brennan, Andrew Sandquist, Jonathan Wolfe, John Suerth and Jason Lev represented Claire’s in the deal. Reasons for the comeback include an enormous amount of equity facing a lack of quality product on the market, and improved mortgage financing alternatives, Brennan tells “There’s a difference between the leasing market, which is way down right now, and the investment market. There’s no question the industrial market is facing vacancy challenges, but on the investment side, especially in the past 60-90 days, there’s been a significant surge in activity.”

Lenders have come back to Chicago industrial investment, agrees Sandquist. He says the price in this deal was very healthy, “if you look at the comparable market rent, this property sold for the mid-$30 per square foot, that’s pretty healthy for such a large building.” Sandquist says there’s been an uptick in local activity as well, with deals such as the New York-based W.P. Carey & Co. buying the 100,000-square-foot Mori Seiki headquarters building in the Huntington Woods park for $32 million in December. The machine-tool tenant also has a 20-year lease.

Claire’s will lease the property back for 20 years. The jewelry and accessories retailer has 2,969 stores in the United States and Europe. Sphere: Related Content

Tuesday, March 02, 2010

Stobart Group Agrees to £61 Million Sale Leaseback of 70 Acre UK Port Terminal & Distribution Center

Stobart Group Web Site - March 1, 2010

Stobart Group ("Stobart" or "the Group"), the UK's leading provider of multimodal transport and logistics solutions, has agreed to dispose part of its Inland Ports asset to Legal & General Assurance (Pensions Management) Limited, for £61m rising to £62.5m on the satisfaction of further conditions. A key element of this sale is a new 528,000 square feet, state-of-the-art sustainable distribution centre developed by Stobart Group. This was recently announced as the new Northern distribution centre for Tesco's fresh operations. In addition, Stobart was confirmed as the transport contractor for Tesco from this distribution centre.

The asset disposal illustrates the fundamental strategy of the Stobart Group to invest in assets to develop existing and new customer relationships and then realise the value of the asset, at a profit, to reinvest elsewhere in the business. The disposal value will generate an initial return on investment in the region of 20% with the potential for further returns. This demonstrates the inherent value within the property assets held on the balance sheet of the Group. The ongoing pre-tax profit impact of the asset disposals is neutral.

The £61m is satisfied by a cash payment of which the majority will be used to repay existing borrowings with RBS and Barclays, significantly reducing the core debt in the balance sheet of the company at 28 February 2010 to around £45m. This will allow the Group flexibility in securing the optimum debt structure for future asset developments, including the commenced capital expenditure programme at London Southend Airport.

Stobart also expects to increase the throughput of the Inland Port terminal (currently only 50% utilised) when the site is fully operational and when the existing Valencia fresh produce rail service is extended to Widnes. This next phase of the pioneering Stobart Rail service will allow Tesco to transport its fresh produce from Southern Spain to Northern England by rail, delivering significant environmental benefits.

In addition to the disposal of the fresh produce distribution centre, the Stobart Ports division has entered into a 25 year sale and leaseback arrangement on the Inland Port terminal. Following this, the Group expects to develop further phases on the remaining 95 acres of the Inland Port in response to customer demand. Sphere: Related Content

Wikinvest Wire