The The Star Online - November 7, 2005
US real estate groups are flocking to Australia to tap a juicy source of capital: A$4 billion of annual pension savings chasing property.
With 10% of Australia's share market devoted to property, compared with about 2% of the US market, US real estate groups see a new wellspring of money. The drawcard for the Americans is that Australian property fund managers value the steady income that comes from real estate, and tend to be longer-term investors than their US peers, who are more focused on capital growth.
Tishman Speyer, which owns iconic properties like New York's Rockefeller Center, last December became the first US group to float a trust in Australia, its only publicly-traded fund worldwide. It raised A$520mil to buy a 45.9% stake in a US$1.85bil portfolio of office buildings mainly in New York, Chicago and San Francisco in a joint venture with Singapore's Government Investment Corp Real Estate Pte Ltd (GIC) and Tishman Speyer.
It was followed by Reckson Realty Corp, which raised A$263mil in September with the float of Reckson New York Property Trust, giving Australians a 75% stake in offices in and around New York, while Reckson kept 25%.
Now, there are companies flying over without any deals to sell, just to meet fund managers in Australia. To the extent a deal ever materialises, the best way for us to get execution is to build those relationships well in advance of that,” said Maryland-based shopping centre group Federal Realty Inc vice-president of investor relations, Andrew Blocher.
The job has become a little harder for US groups, as the gap between cheap debt and rental yields in the US has shrunk, spurring Australian property investors to shift their own offshore focus to Europe.
The US groups say they are not coming to Australia because the capital is cheaper than at home, or because they are looking to unload inferior properties. “If I look at US office acquisitions, Australian capital is by no means cheap,” said Tishman Speyer's Feldstein. Tishman Speyer chose Australia to complete the funding of the group's joint venture with Singapore's GIC, seeing it as a potential platform for a global real estate fund, he said.
Reckson's fund manager in Australia, Francis Sheehan, said if Reckson had been looking to dump assets, it would have been better off selling them in the US. “We could have gained a much higher price,” he said. “But, we retained 25%, which is pretty high in the industry, because we believe in assets and markets.” Reckson is managing the trust with no performance and no promotion fees in contrast to Tishman Speyer.
Californian property giant Maguire Properties Inc joined the trend, selling down stakes in 5 buildings into a US$1.2bil joint venture with Macquarie Office Trust.
Sphere: Related Content
Thursday, November 10, 2005
Wednesday, November 09, 2005
Kerr Drug Completes $52 Million Sale Leaseback of 20 Drug Stores
Businesswire - November 4, 2005
GMAC Commercial Holding Capital Corp. recently purchased of a portfolio of 20 free-standing drug stores for $52,100,000. Capital Corp.'s Net Lease Acquisition Group negotiated the sale/leaseback transaction with an affiliate of Kerr Drug, a Raleigh, N.C.-based regional chain of drug stores.
Net Lease Acquisition Group Vice Presidents Patrick Pearson and Gregg Fields structured 20-year, triple net leases for each of the stores. Eighteen of the stores are in North Carolina and the remaining two are located in South Carolina. All of the properties are fairly new--the oldest was built between seven and eight years ago--and the majority are self-developed.
GMAC Commercial Mortgage (GMACCM) Vice President Jere Lucey, of the New York loan origination office, arranged approximately 75 percent loan-to-value first mortgage financing for the transaction through GMACCM's Proprietary Lending Group. Sphere: Related Content
GMAC Commercial Holding Capital Corp. recently purchased of a portfolio of 20 free-standing drug stores for $52,100,000. Capital Corp.'s Net Lease Acquisition Group negotiated the sale/leaseback transaction with an affiliate of Kerr Drug, a Raleigh, N.C.-based regional chain of drug stores.
Net Lease Acquisition Group Vice Presidents Patrick Pearson and Gregg Fields structured 20-year, triple net leases for each of the stores. Eighteen of the stores are in North Carolina and the remaining two are located in South Carolina. All of the properties are fairly new--the oldest was built between seven and eight years ago--and the majority are self-developed.
GMAC Commercial Mortgage (GMACCM) Vice President Jere Lucey, of the New York loan origination office, arranged approximately 75 percent loan-to-value first mortgage financing for the transaction through GMACCM's Proprietary Lending Group. Sphere: Related Content
Tuesday, November 08, 2005
Lenovo Building $84 Million Office Campus Near Research Triangle Park
Commercial Property News - November 1, 2005
Lenovo USA Inc. has signed a record-breaking build-to-suit deal with Duke Realty Corp. to occupy 500,000 square feet of office space in a three-building corporate campus in Morrisville, N.C. The Perimeter Park development project is estimated to cost about $70 million, while the lease is reportedly worth about $100 million.
"I'm not aware if there has ever been a lease this large in Raleigh," said Andrew Kelton, senior vice president of Duke's Raleigh operations. "And it may be the largest we've done for Duke as a corporation."
Japanese PC manufacturer Lenovo bought IBM Think Pad in May and is now consolidating 578,000 square feet of inherited space in Raleigh's Research Triangle Park. Lenovo was able to sign its 10-year lease at below market rate and it was given $16 million worth of tax incentives from local and state authorities. It also has a development option for a fourth property in the park.
The first two buildings in the campus, both five stories with 179,000 square feet, will include mainly offices with some lab space. Building Three will include 143,000 square feet on four floors. Though initial design renderings are still being tweaked to reflect Lenovo's high-tech image, the groundbreaking for Building One has been moved up to next month, with an expected completion of January 2007. Building Two should be finished by February 2007, and Building Three in early 2009.
Kelton said that he believes his company was able to win the huge contract in part because of Perimeter Park's prime location, near Interstate 540 and the Raleigh/Durham International Airport. It already has 2 million square feet of offices in the park, with 1 million square feet of developable space. Sphere: Related Content
Lenovo USA Inc. has signed a record-breaking build-to-suit deal with Duke Realty Corp. to occupy 500,000 square feet of office space in a three-building corporate campus in Morrisville, N.C. The Perimeter Park development project is estimated to cost about $70 million, while the lease is reportedly worth about $100 million.
"I'm not aware if there has ever been a lease this large in Raleigh," said Andrew Kelton, senior vice president of Duke's Raleigh operations. "And it may be the largest we've done for Duke as a corporation."
Japanese PC manufacturer Lenovo bought IBM Think Pad in May and is now consolidating 578,000 square feet of inherited space in Raleigh's Research Triangle Park. Lenovo was able to sign its 10-year lease at below market rate and it was given $16 million worth of tax incentives from local and state authorities. It also has a development option for a fourth property in the park.
The first two buildings in the campus, both five stories with 179,000 square feet, will include mainly offices with some lab space. Building Three will include 143,000 square feet on four floors. Though initial design renderings are still being tweaked to reflect Lenovo's high-tech image, the groundbreaking for Building One has been moved up to next month, with an expected completion of January 2007. Building Two should be finished by February 2007, and Building Three in early 2009.
Kelton said that he believes his company was able to win the huge contract in part because of Perimeter Park's prime location, near Interstate 540 and the Raleigh/Durham International Airport. It already has 2 million square feet of offices in the park, with 1 million square feet of developable space. Sphere: Related Content
Sunday, November 06, 2005
Mitre 10 Selling 3 New Superstores in New Zealand
Bayleys Real Estate Web Site - November 4, 2005
Mitre 10, the leading home improvement retailer in New Zealand, is selling three stores at auction through Bayleys Real Estate.
Mitre 10 is taking an initial lease over each property for 12 years, with one nine-year right of renewal followed by three six-year rights of renewal. The leases incorporate rent reviews adjusted to CPI increases and to market. The three properties having a combined annual net rental income of$2.625 million.
Mitre 10 has 118 Mitre 10 stores, 83 Hammer Hardware outlets and 18 Palmers Gardenworld centres. Sphere: Related Content
Mitre 10, the leading home improvement retailer in New Zealand, is selling three stores at auction through Bayleys Real Estate.
Mitre 10 is taking an initial lease over each property for 12 years, with one nine-year right of renewal followed by three six-year rights of renewal. The leases incorporate rent reviews adjusted to CPI increases and to market. The three properties having a combined annual net rental income of$2.625 million.
Mitre 10 has 118 Mitre 10 stores, 83 Hammer Hardware outlets and 18 Palmers Gardenworld centres. Sphere: Related Content
Aker ASA Enters $212 Million Sale Leaseback on New Oslo Headquarters
Forbes.com / AFX - Oslo, Norway - November 3, 2005
Aker ASA said it has agreed to sell all the shares in its real estate company which owns the property and the building project for a new Aker headquarters, to Naeringsbygg Holding 2 AS for 1.4 bln nkr. Naeringsbygg Holding 2 is owned by the customers of investment company Acta ASA. Aker will book a gain of around 400 mln nkr on the transaction in the fourth quarter.
Aker will rent back the offices for a period 12 years once the building process is completed. Næringsbygg Holding 2 AS has the necessary equity to finance part of the purchase, but the transaction is pending sufficient financing, Aker said. Sphere: Related Content
Degussa Sells and Leases Back Offices in Frankfurt
Degussa Web Site - October 17, 2005
Degussa AG, Dusseldorf, Germany, has sold its administrative site in Weissfrauenstrasse, Frankfurt, Germany, to Deutsche Immobilien Chancen AG (DIC) and Morgan Stanley Real Estate Funds. The agreements were signed last Friday and title is scheduled to pass to the new owners on December 31, 2005. From the same date, Degussa will rent a large proportion of premises from the new owners under a ten-year rental contract.
Degussa and the new owners have agreed not to disclose the purchase price. Degussa will remain responsible for facility management and maintenance at the site. At present about 950 employees from a variety of business and service units work in the buildings, which are located directly on the Main river. Sphere: Related Content
Degussa AG, Dusseldorf, Germany, has sold its administrative site in Weissfrauenstrasse, Frankfurt, Germany, to Deutsche Immobilien Chancen AG (DIC) and Morgan Stanley Real Estate Funds. The agreements were signed last Friday and title is scheduled to pass to the new owners on December 31, 2005. From the same date, Degussa will rent a large proportion of premises from the new owners under a ten-year rental contract.
Degussa and the new owners have agreed not to disclose the purchase price. Degussa will remain responsible for facility management and maintenance at the site. At present about 950 employees from a variety of business and service units work in the buildings, which are located directly on the Main river. Sphere: Related Content
German State of Hesse Agrees to $1.3 Billion Sale Leaseback
Bloomberg - November 1, 2005
CommerzLeasing und Immobilien AG, the property leasing unit of Germany's No. 3 publicly traded bank, agreed to pay 1.07 billion euros ($1.3 billion) to buy and lease back German state-owned real estate.
The state of Hesse agreed to sell 18 properties including its finance and interior ministries, police stations and other offices, according to an e-mail today. The government will lease back the space for about 55.3 million euros annually (5.2% initial yield). The buildings encompass 396,700 square meters (4.27 million square feet) of rental space.
CommerzLeasing, which outbid a pool of predominantly non- German competitors, is financing the purchase with 1 billion euros in loans from Hypo Real Estate AG, according to the statement. The deal is subject to state parliamentary approval. Hesse is looking to real estate sales to free up funds.
EuroProperty News reports that the portfolio will be leased back by the state for up to 20 years. The portfolio, marketed by PricewaterhouseCoopers and CB Richard Ellis, is reportedly the first major one to be sold by a German state. Hamburg is currently marketing two portfolios while Hessen plans to sell 770 million eoros worth of assets next year.
Other states are expected to market property after such strong bidding for Hessen's assets. Hessen's recently issued 10-year Eurobond rated AA+ by Standard & Poor's offered a yield of 3.25%, or 1.5% less than the property yield on this transaction. Sphere: Related Content
CommerzLeasing und Immobilien AG, the property leasing unit of Germany's No. 3 publicly traded bank, agreed to pay 1.07 billion euros ($1.3 billion) to buy and lease back German state-owned real estate.
The state of Hesse agreed to sell 18 properties including its finance and interior ministries, police stations and other offices, according to an e-mail today. The government will lease back the space for about 55.3 million euros annually (5.2% initial yield). The buildings encompass 396,700 square meters (4.27 million square feet) of rental space.
CommerzLeasing, which outbid a pool of predominantly non- German competitors, is financing the purchase with 1 billion euros in loans from Hypo Real Estate AG, according to the statement. The deal is subject to state parliamentary approval. Hesse is looking to real estate sales to free up funds.
EuroProperty News reports that the portfolio will be leased back by the state for up to 20 years. The portfolio, marketed by PricewaterhouseCoopers and CB Richard Ellis, is reportedly the first major one to be sold by a German state. Hamburg is currently marketing two portfolios while Hessen plans to sell 770 million eoros worth of assets next year.
Other states are expected to market property after such strong bidding for Hessen's assets. Hessen's recently issued 10-year Eurobond rated AA+ by Standard & Poor's offered a yield of 3.25%, or 1.5% less than the property yield on this transaction. Sphere: Related Content
Club Med Completes 225 Million Euro Sale Leaseback of Four Mountain Villages
Reuters - November 2, 2005
French resort operator Club Mediterranee (CMIP.PA) has sold four vacation villages to property investment firm Gecina for 225 million euros ($270 million) in a deal that will return it to breakeven for the first time in five years, it said on Wednesday. The deal comes as a number of French companies take advantage of a short-term tax break to divest property assets, lightening their balance sheets in the process.
Club Med, which pioneered fun-in-the-sun holiday villages in the 1950s, said the deal would cut its debt by 175 million euros, produce a capital gain of 40 million euros and bring it to breakeven in net profit terms over its 2005 financial year for the first time since 2001. It has agreed to lease back the villages on 12-year renewable contracts with a net rent equivalent to 7 percent of the overall deal.
The deal follows a 1 billion euro agreement in March between Accor, Europe's biggest hotelier, and real estate firm Fonciere des Murs (FERP.PA) covering leases on 128 hotels. The flurry of activity stems from France's decision last year to cut the capital gains tax to 16.5 percent, from 30 percent before, until 2007 for companies selling real estate assets to listed French property firms, known as SIICs.
"The emergence of SIIC activity in hotels is hotting up, and with the capital gains tax incentive, we expect to see new deals, notably with Accor in the future," said Vicki Lee, a leisure sector analyst at UBS. Accor (ACCP.PA), which owns 29 percent of Club Med, has put 10 of its upscale Sofitel hotels up for sale. Sphere: Related Content
French resort operator Club Mediterranee (CMIP.PA) has sold four vacation villages to property investment firm Gecina for 225 million euros ($270 million) in a deal that will return it to breakeven for the first time in five years, it said on Wednesday. The deal comes as a number of French companies take advantage of a short-term tax break to divest property assets, lightening their balance sheets in the process.
Club Med, which pioneered fun-in-the-sun holiday villages in the 1950s, said the deal would cut its debt by 175 million euros, produce a capital gain of 40 million euros and bring it to breakeven in net profit terms over its 2005 financial year for the first time since 2001. It has agreed to lease back the villages on 12-year renewable contracts with a net rent equivalent to 7 percent of the overall deal.
The deal follows a 1 billion euro agreement in March between Accor, Europe's biggest hotelier, and real estate firm Fonciere des Murs (FERP.PA) covering leases on 128 hotels. The flurry of activity stems from France's decision last year to cut the capital gains tax to 16.5 percent, from 30 percent before, until 2007 for companies selling real estate assets to listed French property firms, known as SIICs.
"The emergence of SIIC activity in hotels is hotting up, and with the capital gains tax incentive, we expect to see new deals, notably with Accor in the future," said Vicki Lee, a leisure sector analyst at UBS. Accor (ACCP.PA), which owns 29 percent of Club Med, has put 10 of its upscale Sofitel hotels up for sale. Sphere: Related Content
HSBC May Empark on Sale Leaseback Program
EuroProperty News reports that CB Richard Ellis has won a property management contract with International bank HSBC believed to be worth £25m-£30m a year in fees. CBRE will reportedly assume responsibility for HSBC's entire European property management function including consultation, deals and property management.
CBRE is expected to hire around 100 staff to manage the project. The contract, which
will be run from London, makes CBRE responsible for the complete strategic
management of HSBC's global portfolio, worth around £40bn. Transaction work may
come from sale-and-leasebacks. There is speculation that HSBC's £490m Canary
Wharf HQ could be sold and leased back, as its Singapore offices were. Sphere: Related Content
CBRE is expected to hire around 100 staff to manage the project. The contract, which
will be run from London, makes CBRE responsible for the complete strategic
management of HSBC's global portfolio, worth around £40bn. Transaction work may
come from sale-and-leasebacks. There is speculation that HSBC's £490m Canary
Wharf HQ could be sold and leased back, as its Singapore offices were. Sphere: Related Content
Friday, November 04, 2005
New Net Lease REIT Closes $240 Million IPO
Newkirk Realty Trust Web Site - November 2, 2005
Newkirk Realty Trust, Inc. (NYSE:NKT) announced today the closing of its initial public offering of 15,000,000 shares of common stock at a price to the public of $16.00 per share.
Newkirk Realty Trust is a real estate investment trust that isthe general partner of, and owns a 30.1% controlling interest in, The Newkirk Master Limited Partnership. The Newkirk Master Limited Partnership is a publicly reporting limited partnership that owns a diversified portfolio of triple-net leased properties and other real estate-related assets. Sphere: Related Content
Newkirk Realty Trust, Inc. (NYSE:NKT) announced today the closing of its initial public offering of 15,000,000 shares of common stock at a price to the public of $16.00 per share.
Newkirk Realty Trust is a real estate investment trust that isthe general partner of, and owns a 30.1% controlling interest in, The Newkirk Master Limited Partnership. The Newkirk Master Limited Partnership is a publicly reporting limited partnership that owns a diversified portfolio of triple-net leased properties and other real estate-related assets. Sphere: Related Content
Wednesday, November 02, 2005
Australian Trust Acquires Two Net Leased Properties in US
The Financial Standard - October 26, 2005
Listed property trust Mariner American Property Income Trust (MAPIT) is to buy two US properties with a combined worth of just under $160 million. MAPIT has entered into contracts to purchase the FedEx freight terminal near New York City for US$25 million ($34 million) and the headquarters of computer security group RSA in Boston for US$95 million ($125 million).
The acquisitions will more than double the total value of properties held by the Trust to $286 million. MAPIT's investment strategy is to invest in high-grade US properties with long-term quality tenants. With the FedEx purchase, FedEx Freight East Inc will lease the property for a 13-year term. With the RSA Security Headquarters, RSA will lease for an 11-year term. According to the group, the FedEx property boasts a lease yield of 7.3 percent while the RSA office building will return a higher 8.16 percent over the term of the lease. Sphere: Related Content
Listed property trust Mariner American Property Income Trust (MAPIT) is to buy two US properties with a combined worth of just under $160 million. MAPIT has entered into contracts to purchase the FedEx freight terminal near New York City for US$25 million ($34 million) and the headquarters of computer security group RSA in Boston for US$95 million ($125 million).
The acquisitions will more than double the total value of properties held by the Trust to $286 million. MAPIT's investment strategy is to invest in high-grade US properties with long-term quality tenants. With the FedEx purchase, FedEx Freight East Inc will lease the property for a 13-year term. With the RSA Security Headquarters, RSA will lease for an 11-year term. According to the group, the FedEx property boasts a lease yield of 7.3 percent while the RSA office building will return a higher 8.16 percent over the term of the lease. Sphere: Related Content
Tuesday, November 01, 2005
Tower Records Completes $28 Million Sale Leaseback of Manhattan Store
Real Estate Weekly - 26 October 2005
Real Estate Weekly has reported that Tower Records has sold its flagship store at 692 Broadway in New York City for $28 million in a sale-leaseback transaction with Vornado Realty Trust. Tower Records, which recently came out of a pre-packed bankruptcy, owned five contiguous ground floor retail condominium units totaling 35,752 square feet in the Silk Building, a 12-story mixed-use building, on East Fourth Street between Broadway and Lafayette. Tower Records will lease back the units from Vornado for an initial term of ten years, with the option to extend for two additional five year terms. Sphere: Related Content
Real Estate Weekly has reported that Tower Records has sold its flagship store at 692 Broadway in New York City for $28 million in a sale-leaseback transaction with Vornado Realty Trust. Tower Records, which recently came out of a pre-packed bankruptcy, owned five contiguous ground floor retail condominium units totaling 35,752 square feet in the Silk Building, a 12-story mixed-use building, on East Fourth Street between Broadway and Lafayette. Tower Records will lease back the units from Vornado for an initial term of ten years, with the option to extend for two additional five year terms. Sphere: Related Content
Sunday, October 30, 2005
Qatar Financial Centre Authority Signs Lease for New Hheadquarters
Qatar Financial Centre Authority Web Site - October 27, 2005
The Qatar Financial Centre Authority (QFCA) has signed a lease to move into a new building that will provide its permanent home from the end of next year.
The lease for the entire 20 storey building has been signed with the Qatar Insurance Company (QIC) and will include the QFCA, the QFC Regulatory Authority and provide licensed institutions with a base from which to operate.
The Qatar Financial Centre (QFC) has been established so that financial institutions and other associated businesses that move to Qatar can participate in the Country’s growth within an efficient and supportive business and regulatory framework.
The QFC has been created as an integral part of Qatar’s programme to attract major financial institutions and professional service groups that can help to develop business opportunities in the country. Qatar is asset rich and revenue rich and its strategy is to use the QFC to diversify the economy from a position of strength – including a $110 billion project finance programme over the next five years. Sphere: Related Content
The Qatar Financial Centre Authority (QFCA) has signed a lease to move into a new building that will provide its permanent home from the end of next year.
The lease for the entire 20 storey building has been signed with the Qatar Insurance Company (QIC) and will include the QFCA, the QFC Regulatory Authority and provide licensed institutions with a base from which to operate.
The Qatar Financial Centre (QFC) has been established so that financial institutions and other associated businesses that move to Qatar can participate in the Country’s growth within an efficient and supportive business and regulatory framework.
The QFC has been created as an integral part of Qatar’s programme to attract major financial institutions and professional service groups that can help to develop business opportunities in the country. Qatar is asset rich and revenue rich and its strategy is to use the QFC to diversify the economy from a position of strength – including a $110 billion project finance programme over the next five years. Sphere: Related Content
Saturday, October 29, 2005
Systemax to Lease 500,000 SF Distribution Center Near Atlanta
CoStar Group - October 27, 2005
Atlanta-based IDI is nearing a deal with Systemax Inc. for approximately 500,000 square feet at IDI’s Hamilton Mill Business Center in Gwinnett County. The deal would also include an agreement by IDI to purchase Systemax’s current facility, a 360,000-square-foot building on Satellite Boulevard in IDI’s Shawnee Ridge development.
The Systemax deal would be yet another large warehouse deal for the Northeast submarket, which has seen several large transactions lately. Earlier this fall, The Home Depot took down 546,000 square feet with Solution Property Group in Braselton, Progressive Lighting has made its deal with Duke, Takeuchi Manufacturing struck a build-to-suit deal with J.W. Rooker & Associates in Jackson County and Kubota signed a 400,000-square-foot deal with Pattillo Construction Co. in Jackson as well.
CoStar Group numbers for third-quarter 2005 show the Northeast market strengthening a bit with a small drop in vacancy rate (12.2% to 11.8%) over the past quarter. The market absorbed nearly 1 million square feet during the third quarter, bringing the yearly total for the submarket to more than 2.3 million square feet. Sphere: Related Content
Atlanta-based IDI is nearing a deal with Systemax Inc. for approximately 500,000 square feet at IDI’s Hamilton Mill Business Center in Gwinnett County. The deal would also include an agreement by IDI to purchase Systemax’s current facility, a 360,000-square-foot building on Satellite Boulevard in IDI’s Shawnee Ridge development.
The Systemax deal would be yet another large warehouse deal for the Northeast submarket, which has seen several large transactions lately. Earlier this fall, The Home Depot took down 546,000 square feet with Solution Property Group in Braselton, Progressive Lighting has made its deal with Duke, Takeuchi Manufacturing struck a build-to-suit deal with J.W. Rooker & Associates in Jackson County and Kubota signed a 400,000-square-foot deal with Pattillo Construction Co. in Jackson as well.
CoStar Group numbers for third-quarter 2005 show the Northeast market strengthening a bit with a small drop in vacancy rate (12.2% to 11.8%) over the past quarter. The market absorbed nearly 1 million square feet during the third quarter, bringing the yearly total for the submarket to more than 2.3 million square feet. Sphere: Related Content
Whirlpool Leases 500,000 SF Build-to-Suit Distribution Center in Orlando
CoStar Group - October 28, 2005
Appliance-maker Whirlpool outgrew its current warehouse on Investors Row in Orlando, FL and struck a deal with The Pizutti Cos. for a new, 500,000-square-foot regional distribution center about 20 miles away at Orange Avenue and Route 417 in Orlando. Construction began this month on the build-to-suit facility with a move-in date set for next June.
The new 500,000-square-foot, rail-served building on 34 acres is expandable to 750,000 square feet. Exxcel Project Management is the project contractor. Whirlpool is vacating a 228,950-square-foot, Class A warehouse facility on 13.20 acres owned by Liberty Property Trust at 2351 Investors Row. Pizzuti and Whirlpool have collaborated on a number of construction projects for the appliance maker, including more than 2.5 million square feet of build-to-suit projects in Carlisle, PA; Clyde, OH; Indianapolis, IN; Dallas, TX; and Tulsa, OK.
In August, Whirlpool agreed to buy rival Maytag for $21 a share or about $1.7 billion. The deal, which would create the world's largest appliance maker, is expected to close next year if approved by U.S. regulators. Sphere: Related Content
Appliance-maker Whirlpool outgrew its current warehouse on Investors Row in Orlando, FL and struck a deal with The Pizutti Cos. for a new, 500,000-square-foot regional distribution center about 20 miles away at Orange Avenue and Route 417 in Orlando. Construction began this month on the build-to-suit facility with a move-in date set for next June.
The new 500,000-square-foot, rail-served building on 34 acres is expandable to 750,000 square feet. Exxcel Project Management is the project contractor. Whirlpool is vacating a 228,950-square-foot, Class A warehouse facility on 13.20 acres owned by Liberty Property Trust at 2351 Investors Row. Pizzuti and Whirlpool have collaborated on a number of construction projects for the appliance maker, including more than 2.5 million square feet of build-to-suit projects in Carlisle, PA; Clyde, OH; Indianapolis, IN; Dallas, TX; and Tulsa, OK.
In August, Whirlpool agreed to buy rival Maytag for $21 a share or about $1.7 billion. The deal, which would create the world's largest appliance maker, is expected to close next year if approved by U.S. regulators. Sphere: Related Content
Rockwell Automation Agrees to $150 Million Sale Leaseback
PRNewswire-FirstCall - Chicago - October 26, 2005
First Industrial Realty Trust, Inc. (NYSE: FR) announced that it has entered into a sale-leaseback transaction with Rockwell Automation, Inc. In the transaction, First Industrial will acquire and lease back to Rockwell approximately 24 properties in 17 states. The transaction is expected to close in fourth quarter 2005. First Industrial expects to purchase the properties from Rockwell Automation for approximately $150 million. The lease terms for the properties range from five to fifteen years. Sphere: Related Content
First Industrial Realty Trust, Inc. (NYSE: FR) announced that it has entered into a sale-leaseback transaction with Rockwell Automation, Inc. In the transaction, First Industrial will acquire and lease back to Rockwell approximately 24 properties in 17 states. The transaction is expected to close in fourth quarter 2005. First Industrial expects to purchase the properties from Rockwell Automation for approximately $150 million. The lease terms for the properties range from five to fifteen years. Sphere: Related Content
Wednesday, October 26, 2005
Fortunoff Enters Sale Leaseback on Manhattan Building
The New York Post reports that Fortunoff is selling its Fifth Avenue building in Manhattan in a sale-leaseback deal. Metropole Realty Advisors has agreed to buy the 12-story, 64,000-square-foot tower. The price is said to be around $90 million. Fortunoff signed a long-term lease to rent its 17,000 feet on the lower three floors and mezzanine. The remaining space is fully occupied at undermarket rents by companies that include the Cancer Research Institute. Metropole brought the building to Fortunoff in 1979 and has since been its leasing agent and acting real estate advisor. When the retailer decided to sell, Metropole asked to be the buyer. Eastdil Realty handled the quiet marketing of the luxury property whose primary pricing was based on the value of the Fortunoff retail lease.
Sphere: Related Content
Saturday, October 22, 2005
Sony seeking Sale Leaseback on Eoropean Property Portfolio
Estates Gazette reports that Sony has hired Cushman & Wakefield Healey & Baker to arrange a sale leaseback for a two million sf property portfolio in the UK, Italy, Switzerland, Germany, the Netherlands and Belgium. The bulk of the portfolio will be offices and the balance manufacturing sites. Sony reportedly plans to stay in only around 60% of the properties.
Sphere: Related Content
Friday, October 21, 2005
Progressive Lighting to Lease 700,000 SF Distribution Center Near Atlanta
CoStar Group - October 19, 2005
Just weeks after buying the former Georgia Distribution Center in Braselton, GA, Duke Realty Corp. (NYSE: DRE) has nabbed a huge deal with an Atlanta-based lighting firm. Progressive Lighting is days away from completing a deal for the entire building at 625 Braselton Parkway, a currently 505,000-square-foot industrial building originally developed by Southeast Investment Properties. The deal calls for the building to be expanded to approximately 700,000 square feet immediately, and has provisions for Progressive Lighting to take a full-expansion of the building, which would be more than 1 million square feet.
At that size, it would be one of the largest industrial deals in Atlanta this year, comparable to The Home Depot’s 1 million-square-foot deal in Henry County and Solo Cup Co.’s mammoth 1.3 million-square-foot deal in Social Circle. The building will serve as Progressive Lighting’s headquarters and have as much as 40,000 square feet of office space.
The deal is a major coup for Duke, which just recently closed on the purchase of the building and 318 acres at the intersection of I-85 and Georgia Highway 53 in Braselton, northeast of Atlanta. The seller was legendary land speculator Wayne Mason, who had originally optioned the land to Steve Smith of Southeast Investment Properties for a project he called Georgia Distribution Center. Sphere: Related Content
Just weeks after buying the former Georgia Distribution Center in Braselton, GA, Duke Realty Corp. (NYSE: DRE) has nabbed a huge deal with an Atlanta-based lighting firm. Progressive Lighting is days away from completing a deal for the entire building at 625 Braselton Parkway, a currently 505,000-square-foot industrial building originally developed by Southeast Investment Properties. The deal calls for the building to be expanded to approximately 700,000 square feet immediately, and has provisions for Progressive Lighting to take a full-expansion of the building, which would be more than 1 million square feet.
At that size, it would be one of the largest industrial deals in Atlanta this year, comparable to The Home Depot’s 1 million-square-foot deal in Henry County and Solo Cup Co.’s mammoth 1.3 million-square-foot deal in Social Circle. The building will serve as Progressive Lighting’s headquarters and have as much as 40,000 square feet of office space.
The deal is a major coup for Duke, which just recently closed on the purchase of the building and 318 acres at the intersection of I-85 and Georgia Highway 53 in Braselton, northeast of Atlanta. The seller was legendary land speculator Wayne Mason, who had originally optioned the land to Steve Smith of Southeast Investment Properties for a project he called Georgia Distribution Center. Sphere: Related Content
Groupe Casino Agrees to 201 Million Euro Sale Leaseback of 13 Warehouses
Groupe Casino Web Site - October 17, 2005
Groupe Casino, one of France's leading food retailers, is selling 13 warehouses for a total of €201.5 million to Mines de la Lucette. The 13 warehouses total 418,000 square metres and are located throughout France. Mines de la Lucette is 76.7%-owned by Morgan Stanley Real Estate Funds.
The sale price amounts to €201.5 million pre-tax, including €13.5 million in work to be financed by Mines de la Lucette over the period 2006-2014. Twelve of the thirteen warehouses are being leased back under commercial leases by Easydis, Groupe Casino’s wholly-owned logistics subsidiary. Most of the leases have an initial fixed term of no more than nine years.
The price obtained by Casino corresponds to a rent capitalisation rate of less than 7%. The sale will be completed during the first half of 2006. Sphere: Related Content
Groupe Casino, one of France's leading food retailers, is selling 13 warehouses for a total of €201.5 million to Mines de la Lucette. The 13 warehouses total 418,000 square metres and are located throughout France. Mines de la Lucette is 76.7%-owned by Morgan Stanley Real Estate Funds.
The sale price amounts to €201.5 million pre-tax, including €13.5 million in work to be financed by Mines de la Lucette over the period 2006-2014. Twelve of the thirteen warehouses are being leased back under commercial leases by Easydis, Groupe Casino’s wholly-owned logistics subsidiary. Most of the leases have an initial fixed term of no more than nine years.
The price obtained by Casino corresponds to a rent capitalisation rate of less than 7%. The sale will be completed during the first half of 2006. Sphere: Related Content
Parmalat Pursuing 100 Million Euro Sale Leaseback of Madrid HQ
AFX International, quoting spanish newspaper La Gaceta de los Negocios, reports that Parmalat SpA has put its Madrid headquarters up for sale for over 100 mln euro. The Italian dairy and fruit juice company is expected to remain in the building under a lease back contract following the sale according to unnamed sector sources.
Sphere: Related Content
AAA Mid-Atlantic Enters 15 Year Lease for New HQ
Mack Cali Web Site - October 20, 2005
Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has entered into a development and acquisition agreement with AAA Mid-Atlantic. The agreement includes Mack-Cali's development of an operations center for AAA and its acquisition of land and buildings from AAA, all in Hamilton Township, New Jersey.
Mack-Cali will develop for AAA a three-story, 120,000 square-foot class A office building on a 21.6 acre land site at Mack-Cali's Horizon Center Business Park. AAA has pre-leased the building, which it will use as an operations center, for 15 years. Construction on the build-to-suit project is expected to be completed in the third quarter of 2006.
Upon completion of the new building for AAA, Mack-Cali will acquire from AAA three office and office/flex buildings totaling 83,762 square feet and land for the development of an additional 243,000 square feet of commercial space. Mack-Cali plans to redevelop each of the acquired properties. Sphere: Related Content
Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has entered into a development and acquisition agreement with AAA Mid-Atlantic. The agreement includes Mack-Cali's development of an operations center for AAA and its acquisition of land and buildings from AAA, all in Hamilton Township, New Jersey.
Mack-Cali will develop for AAA a three-story, 120,000 square-foot class A office building on a 21.6 acre land site at Mack-Cali's Horizon Center Business Park. AAA has pre-leased the building, which it will use as an operations center, for 15 years. Construction on the build-to-suit project is expected to be completed in the third quarter of 2006.
Upon completion of the new building for AAA, Mack-Cali will acquire from AAA three office and office/flex buildings totaling 83,762 square feet and land for the development of an additional 243,000 square feet of commercial space. Mack-Cali plans to redevelop each of the acquired properties. Sphere: Related Content
Thursday, October 20, 2005
Hilton US to Buy Hilton UK
Scotsman.com Business - Media & Leisure - October 15, 2005
HILTON Group, the hotel and gambling operator, confirmed yesterday it is in advanced talks with Hilton Hotels Corporation (HHC) of the US about a GBP3.6 billion sale of its hotel business, in a deal that would see it split from Ladbrokes, the UK bookmaker the group owns.
HHC, which was founded in 1919 by Barron Hilton, sold the rights to the Hilton brand outside the US in 1964. Ladbrokes, Britain's biggest bookmaker, bought Hilton in 1987, dropping the Ladbrokes name in favour of Hilton after buying the hotel and casino operator Stakis in 1998.
Hilton Group, led by chief executive David Michels, is currently also in talks with Royal Bank of Scotland, among others, over the sale of 18 hotels in the UK in a GBP400 million-plus sale and manage-back deal and further such disposals are inevitable.
Included in that group are Dunkeld House, Edinburgh Airport and the Treetops in Aberdeen, and a spokesman said yesterday that those are likely to be sold separately in a sell-and lease back deal, before any overall sell-off to the US group.
Hilton Group has more than 400 hotels - 70 of which are in the UK - under the Hilton and Scandic brands in 80 countries. HHC owns, manages or franchises more than 2,300 hotels under such brands as Hilton, Conrad, Doubletree, Embassy Suites and Hampton Inn brands.
Shares in Hilton Group soared 13.4 percent yesterday as details of the talks emerged, ending at 345.5p. Sphere: Related Content
HILTON Group, the hotel and gambling operator, confirmed yesterday it is in advanced talks with Hilton Hotels Corporation (HHC) of the US about a GBP3.6 billion sale of its hotel business, in a deal that would see it split from Ladbrokes, the UK bookmaker the group owns.
HHC, which was founded in 1919 by Barron Hilton, sold the rights to the Hilton brand outside the US in 1964. Ladbrokes, Britain's biggest bookmaker, bought Hilton in 1987, dropping the Ladbrokes name in favour of Hilton after buying the hotel and casino operator Stakis in 1998.
Hilton Group, led by chief executive David Michels, is currently also in talks with Royal Bank of Scotland, among others, over the sale of 18 hotels in the UK in a GBP400 million-plus sale and manage-back deal and further such disposals are inevitable.
Included in that group are Dunkeld House, Edinburgh Airport and the Treetops in Aberdeen, and a spokesman said yesterday that those are likely to be sold separately in a sell-and lease back deal, before any overall sell-off to the US group.
Hilton Group has more than 400 hotels - 70 of which are in the UK - under the Hilton and Scandic brands in 80 countries. HHC owns, manages or franchises more than 2,300 hotels under such brands as Hilton, Conrad, Doubletree, Embassy Suites and Hampton Inn brands.
Shares in Hilton Group soared 13.4 percent yesterday as details of the talks emerged, ending at 345.5p. Sphere: Related Content
REIT Legislation Expected in Germany
MSN Money - Financial Times Business News - September 29, 2005
JPMorgan on Thursday said it was 'almost certain' that a new German government would pass legislation to allow the sale of US-style Reits, or tax-friendly property funds, as it announced the formation of a strategic partnership in such products with Sal Oppenheim, Germany's biggest private bank.
The two banks said they were already engaged in a 'whole string' of beauty parades with German industrial companies, retailers and other groups interested in selling and leasing back their real estate via Reits.
Dieter Pfundt, head of investment banking at Sal Oppenheim, said: 'It may be difficult at the start but this should be a $60bn by 2010.' Bankers are confident that Reits legislation will be passed by the end of next year.
'This is in the interest of Germany as a financial centre. No one is opposed to it,' said Karl Altenburg, head of investment banking in Germany at JPMorgan.
'Reit legislation is almost certain.' Sphere: Related Content
JPMorgan on Thursday said it was 'almost certain' that a new German government would pass legislation to allow the sale of US-style Reits, or tax-friendly property funds, as it announced the formation of a strategic partnership in such products with Sal Oppenheim, Germany's biggest private bank.
The two banks said they were already engaged in a 'whole string' of beauty parades with German industrial companies, retailers and other groups interested in selling and leasing back their real estate via Reits.
Dieter Pfundt, head of investment banking at Sal Oppenheim, said: 'It may be difficult at the start but this should be a $60bn by 2010.' Bankers are confident that Reits legislation will be passed by the end of next year.
'This is in the interest of Germany as a financial centre. No one is opposed to it,' said Karl Altenburg, head of investment banking in Germany at JPMorgan.
'Reit legislation is almost certain.' Sphere: Related Content
French Retailer Casino in $250 Million Sale Leaseback
GlobeSt. com - New York - October 17, 2005
PARIS- French retailer Casino is selling 13 distribution warehouses to a fund controlled by Morgan Stanley for euros 201.5 million ($241.6 million).
A statement by Groupe Casino says that the warehouses, totaling 418,000 sq m, were being sold to Mines de la Lucette. Mines is 77% owned by Morgan Stanley Real Estate Funds. Twelve of the warehouses will be leased back by Easydis, Casino's wholly owned logistics company.
Casino, France's fifth-largest retailer and second-biggest quoted retailer after Carrefour, says the price obtained for the warehouses corresponds to a yield of less than 7%. Sphere: Related Content
PARIS- French retailer Casino is selling 13 distribution warehouses to a fund controlled by Morgan Stanley for euros 201.5 million ($241.6 million).
A statement by Groupe Casino says that the warehouses, totaling 418,000 sq m, were being sold to Mines de la Lucette. Mines is 77% owned by Morgan Stanley Real Estate Funds. Twelve of the warehouses will be leased back by Easydis, Casino's wholly owned logistics company.
Casino, France's fifth-largest retailer and second-biggest quoted retailer after Carrefour, says the price obtained for the warehouses corresponds to a yield of less than 7%. Sphere: Related Content
Tyco Building Near Atlanta Sells for $30.4 Million
Costar Group - October 19, 2005
Teachers Insurance and Annuity Association (TIAA) has plunked down $30.4 million for 201 Greenwood Court, an 800,000-square-foot industrial building in Henry County that is fully leased through late 2013 to medical product maker Tyco Healthcare Group LP. The seller is Chicago-based First Industrial Realty Trust, which was represented by a CB Richard Ellis team led by Chris Riley.
The building is known to most as a former Amazon.com facility, which was the subject of much hype when the company announced in 1999 it would open its largest U.S. distribution center in Henry County. The company eventually shut the center down before it was fully operational. Tyco signed its first lease there in 2003 and expanded to take the entire building in October 2004.
With an estimated rental rate of $2.60 per square foot, the $30.4 million price ($38 per square foot) roughly equates to a cap rate of 6%. That number used to be rare in Atlanta but may become a more common sight on future sales in that range over the coming year, said Greg Ryan, vice president of investments for Atlanta-based developer IDI.
“Real estate is a steady investment and institutional buyers are becoming very aggressive when these high-quality buildings come to market,” Ryan said. “There’s been a 200 basis point fall in cap rates over the last two years and now some of the biggest markets are seeing some sales in the 5.5% range.”
In this case, Ryan said TIAA is a “wise buyer that recognizes the long-term value of real estate” and one that isn’t afraid to pay top dollar for quality assets.
Ryan said Atlanta is part of a core group of five industrial markets - the others are Los Angeles, Dallas, Chicago and New Jersey - that are in demand with institutions. He said the popularity of real estate as an investment class is starting to also effect “secondary” industrial markets like Memphis and Cincinnati as well. Sphere: Related Content
Teachers Insurance and Annuity Association (TIAA) has plunked down $30.4 million for 201 Greenwood Court, an 800,000-square-foot industrial building in Henry County that is fully leased through late 2013 to medical product maker Tyco Healthcare Group LP. The seller is Chicago-based First Industrial Realty Trust, which was represented by a CB Richard Ellis team led by Chris Riley.
The building is known to most as a former Amazon.com facility, which was the subject of much hype when the company announced in 1999 it would open its largest U.S. distribution center in Henry County. The company eventually shut the center down before it was fully operational. Tyco signed its first lease there in 2003 and expanded to take the entire building in October 2004.
With an estimated rental rate of $2.60 per square foot, the $30.4 million price ($38 per square foot) roughly equates to a cap rate of 6%. That number used to be rare in Atlanta but may become a more common sight on future sales in that range over the coming year, said Greg Ryan, vice president of investments for Atlanta-based developer IDI.
“Real estate is a steady investment and institutional buyers are becoming very aggressive when these high-quality buildings come to market,” Ryan said. “There’s been a 200 basis point fall in cap rates over the last two years and now some of the biggest markets are seeing some sales in the 5.5% range.”
In this case, Ryan said TIAA is a “wise buyer that recognizes the long-term value of real estate” and one that isn’t afraid to pay top dollar for quality assets.
Ryan said Atlanta is part of a core group of five industrial markets - the others are Los Angeles, Dallas, Chicago and New Jersey - that are in demand with institutions. He said the popularity of real estate as an investment class is starting to also effect “secondary” industrial markets like Memphis and Cincinnati as well. Sphere: Related Content
Wednesday, October 19, 2005
San Francisco Offices Net Leased to GAP Sold For $171 Million
The Australian - October 18, 2005
THE Australian-listed Tishman Speyer Office Fund has made its second acquisition in a month, a $US171.4 million ($228 million) San Francisco office building that houses clothing retailer Gap Inc. The trust, with a market value of $555 million, raised $71 million last night through an institutional placement. The balance will be funded with debt.
The building, near the San Francisco Giants' baseball stadium, is the fund's third San Francisco property. In September, Tishman Speyer made its first foray into Washington DC, buying a suburban office complex for $US88.5 million. The latest acquisition, at 550 Terry Francois Boulevard, in Mission Bay, south of the CBD, is leased to Gap Inc. It is largely occupied by Gap's Old Navy division, which is progressively relocating from other sites in San Francisco, Boston and New York. Tishman Speyer managing director Carl Shannon said it was a new building, in an increasingly dynamic area.
The new building, bought from ProLogis subsidiary Cattelus Development Corp, was acquired on a 6.8 per cent yield (before acquisition costs) and is leased to Gap until 2017. Mr Shannon said significant rental growth was expected in years two and seven under the lease. Sphere: Related Content
THE Australian-listed Tishman Speyer Office Fund has made its second acquisition in a month, a $US171.4 million ($228 million) San Francisco office building that houses clothing retailer Gap Inc. The trust, with a market value of $555 million, raised $71 million last night through an institutional placement. The balance will be funded with debt.
The building, near the San Francisco Giants' baseball stadium, is the fund's third San Francisco property. In September, Tishman Speyer made its first foray into Washington DC, buying a suburban office complex for $US88.5 million. The latest acquisition, at 550 Terry Francois Boulevard, in Mission Bay, south of the CBD, is leased to Gap Inc. It is largely occupied by Gap's Old Navy division, which is progressively relocating from other sites in San Francisco, Boston and New York. Tishman Speyer managing director Carl Shannon said it was a new building, in an increasingly dynamic area.
The new building, bought from ProLogis subsidiary Cattelus Development Corp, was acquired on a 6.8 per cent yield (before acquisition costs) and is leased to Gap until 2017. Mr Shannon said significant rental growth was expected in years two and seven under the lease. Sphere: Related Content
IBM Nearing £85m Sale Leaseback of UK Property Portfolio
Property Week has reported that outsourcing specialist Mapeley is the frontrunner in a £85m sale leaseback with IBM. Mapeley is competing wit Highcross and private equity firm Carlyle Group. A decision is expected within a week.
The deal includes IBM's £120m UK freehold estate, but the addition of nine vacant
leasehold properties with liabilities of £35m has reduced the net value of the
deal to £85m. The freehold properties total 1.6 million square feet of space
on 203 acres in three business campuses including IBM's headquarters in Portsmouth. Sphere: Related Content
The deal includes IBM's £120m UK freehold estate, but the addition of nine vacant
leasehold properties with liabilities of £35m has reduced the net value of the
deal to £85m. The freehold properties total 1.6 million square feet of space
on 203 acres in three business campuses including IBM's headquarters in Portsmouth. Sphere: Related Content
Tuesday, October 18, 2005
Cortefiel Seeking 220 Million Euro Sale Leaseback of HQ and Store Portfolio
The Financial Times reports that Private equity firms CVC, Permira and PAI, which last month acquired Spanish fashion retailer Cortefiel, have decided to sell off its property assets, including the group's headquarters, several retail outlets and two plots of land. According to market sources, the total value of the assets stands at some 220m euros. CB Richard Ellis has been selected to co-ordinate the sale and leaseback effort.
Sphere: Related Content
Monday, October 17, 2005
Cortefiel Seeking 220 Million Euro Sale Leaseback of HQ and Store Portfolio
The Financial Times Limited reports that Private equity firms CVC, Permira and PAI, which last month acquired Spanish fashion retailer Cortefiel, have decided to sell off its property assets, including the group's headquarters, several retail outlets and two plots of land. According to market sources, the total value of the assets stands at some 220m euros. CB Richard Ellis has been selected to co-ordinate the sale and leaseback effort.
Sphere: Related Content
Friday, October 14, 2005
Lexington REIT Forms New High Yield Net Lease Investment Company
SEC Edgar Archive - October 10, 2005
Lexington Corporate Properties Trust (NYSE:LXP) has announced the formation of a new specialty investment company that will expand Lexington’s acquisition opportunities by investing directly and indirectly in general use properties with private or middle market type tenants, special purpose properties, non-U.S. properties located in the Americas with U.S. dollar denominated rent, and other specialized facilities or assets integral to the operations of its tenants. These investments are generally expected to generate higher yields than those available on Lexington’s core investments.
The specialty investment company, called Lexington Strategic Asset Corp. (“LSAC”), has raised net proceeds of approximately $61.6 million, after placement fees and estimated offering expenses, through the sale in a private placement of 6,738,000 shares of common stock to “qualified institutional buyers”, investors outside of the United States in offshore transactions, and institutional and individual “accredited investors”.
In connection with the private placement, Lexington will contribute to LSAC its indirect ownership interest in four real estate assets and financing deposits. In exchange, LSAC will issue to Lexington shares of its common stock having an aggregate value of approximately $33.2 million based on the offering price in the private placement.
Upon completion of the private placement and Lexington’s contribution, LSAC will have an equity capitalization of approximately $94.8 million and Lexington will beneficially own approximately 32% of the fully diluted outstanding shares of LSAC’s common stock. Sphere: Related Content
Lexington Corporate Properties Trust (NYSE:LXP) has announced the formation of a new specialty investment company that will expand Lexington’s acquisition opportunities by investing directly and indirectly in general use properties with private or middle market type tenants, special purpose properties, non-U.S. properties located in the Americas with U.S. dollar denominated rent, and other specialized facilities or assets integral to the operations of its tenants. These investments are generally expected to generate higher yields than those available on Lexington’s core investments.
The specialty investment company, called Lexington Strategic Asset Corp. (“LSAC”), has raised net proceeds of approximately $61.6 million, after placement fees and estimated offering expenses, through the sale in a private placement of 6,738,000 shares of common stock to “qualified institutional buyers”, investors outside of the United States in offshore transactions, and institutional and individual “accredited investors”.
In connection with the private placement, Lexington will contribute to LSAC its indirect ownership interest in four real estate assets and financing deposits. In exchange, LSAC will issue to Lexington shares of its common stock having an aggregate value of approximately $33.2 million based on the offering price in the private placement.
Upon completion of the private placement and Lexington’s contribution, LSAC will have an equity capitalization of approximately $94.8 million and Lexington will beneficially own approximately 32% of the fully diluted outstanding shares of LSAC’s common stock. Sphere: Related Content
Tuesday, October 11, 2005
Kuehne & Nagel Signs 866,064 SF Distribution Center Build-to-Suit
CoStar Group - October 10, 2005
Kuehne & Nagel, a worldwide logistics provider, recently signed a lease deal for an 866,064-square-foot, build-to-suit industrial building in the DeSoto Trade Center. The logistics firm will be expanding and relocating from its current location at 6005 Freeport in Memphis, where it occupies 550,000 square feet.
Dallas-based Hillwood Development Corp. will be overseeing the development in the Desoto Trade Center, a 688-Acre industrial park located in Southaven, MS that recently received foreign trade zone status. Construction is expected to begin in December of 2005 and is scheduled for completion in the second quarter of 2006. Sphere: Related Content
Kuehne & Nagel, a worldwide logistics provider, recently signed a lease deal for an 866,064-square-foot, build-to-suit industrial building in the DeSoto Trade Center. The logistics firm will be expanding and relocating from its current location at 6005 Freeport in Memphis, where it occupies 550,000 square feet.
Dallas-based Hillwood Development Corp. will be overseeing the development in the Desoto Trade Center, a 688-Acre industrial park located in Southaven, MS that recently received foreign trade zone status. Construction is expected to begin in December of 2005 and is scheduled for completion in the second quarter of 2006. Sphere: Related Content
Thursday, October 06, 2005
EDS Closes $217 Million Sale Leaseback of Office Portfolio
Dallas (TX) Business Journal - 10-04-2005
A consortium of investors led by Koll Development Co. has bought several buildings, including three office buildings in Plano's Legacy Business Park, from Electronic Data Systems Corp. for $217 million. Plano-based EDS (NYSE: EDS) will lease back some of the buildings for various terms.
Dallas-based Koll, a commercial real estate firm, divided the properties, which span seven states and four European countries, into three pools -- two domestic and one international. The first pool was bought by Koll and Invesco Real Estate, which will jointly own and manage 1.45 million square feet of office buildings, including the Legacy Campus in Plano and others in Denver and Dayton, Ohio.
Northstar Realty Finance Corp. (NYSE: NRF), a real estate investment trust, bought a collection of buildings occupied by EDS on long-term leases. The international component was bought by Citigroup Property Investors of Europe and includes warehouses and office buildings in France, Germany, Italy and the United Kingdom. EDS' headquarters, data centers and undeveloped land in the Legacy Business Park were not sold.
EDS in June said it had plans to sell 20 company-owned properties and lease back a portion of them in a move that would generate about $200 million in cash in 2005 and $200 million in cost savings over the next three years. The sale is part of the technology company's strategy to reduce real estate costs and consolidate facilities. Sphere: Related Content
A consortium of investors led by Koll Development Co. has bought several buildings, including three office buildings in Plano's Legacy Business Park, from Electronic Data Systems Corp. for $217 million. Plano-based EDS (NYSE: EDS) will lease back some of the buildings for various terms.
Dallas-based Koll, a commercial real estate firm, divided the properties, which span seven states and four European countries, into three pools -- two domestic and one international. The first pool was bought by Koll and Invesco Real Estate, which will jointly own and manage 1.45 million square feet of office buildings, including the Legacy Campus in Plano and others in Denver and Dayton, Ohio.
Northstar Realty Finance Corp. (NYSE: NRF), a real estate investment trust, bought a collection of buildings occupied by EDS on long-term leases. The international component was bought by Citigroup Property Investors of Europe and includes warehouses and office buildings in France, Germany, Italy and the United Kingdom. EDS' headquarters, data centers and undeveloped land in the Legacy Business Park were not sold.
EDS in June said it had plans to sell 20 company-owned properties and lease back a portion of them in a move that would generate about $200 million in cash in 2005 and $200 million in cost savings over the next three years. The sale is part of the technology company's strategy to reduce real estate costs and consolidate facilities. Sphere: Related Content
Saturday, May 22, 2004
Hitachi to Enter Long Term Sublease fo New HQ Campus in San Jose CA
CoStar Web Site - May 13, 2004
Hitachi Global Storage Technologies (Hitachi GST), one of the world's leading suppliers of hard disk drives, struck a deal to relocate its corporate headquarters and research functions to another corporate campus in San Jose, while retaining its development, manufacturing and support operations at the company's current 332-acre campus on Cottle Road.
In one of the largest subleases ever signed in Silicon Valley, the technology firm agreed to a long-term sublease with an option to purchase the entire 21-acre, 367,500-square-foot flex/R&D campus at 3403 Yerba Buena Blvd. in San Jose, CA. Hitachi GST plans to relocate 650 employees from its headquarters and research center to the Yerba Buena campus in late Spring 2005.
Bob Steinbock, Scott Prosser and Mark Schmidt of CB Richard Ellis in San Jose represented the sublessor, Celanese Americas Corp. According to Trammell Crow Co., which was marketing the Yuerba Buena Boulevard campus, it was originally developed by Syntex Corp. at a cost of more than $100 million as the company's preeminent testing lab and is located adjacent to Mission West Properties' and Legacy Partners' campus developments. Sphere: Related Content
Hitachi Global Storage Technologies (Hitachi GST), one of the world's leading suppliers of hard disk drives, struck a deal to relocate its corporate headquarters and research functions to another corporate campus in San Jose, while retaining its development, manufacturing and support operations at the company's current 332-acre campus on Cottle Road.
In one of the largest subleases ever signed in Silicon Valley, the technology firm agreed to a long-term sublease with an option to purchase the entire 21-acre, 367,500-square-foot flex/R&D campus at 3403 Yerba Buena Blvd. in San Jose, CA. Hitachi GST plans to relocate 650 employees from its headquarters and research center to the Yerba Buena campus in late Spring 2005.
Bob Steinbock, Scott Prosser and Mark Schmidt of CB Richard Ellis in San Jose represented the sublessor, Celanese Americas Corp. According to Trammell Crow Co., which was marketing the Yuerba Buena Boulevard campus, it was originally developed by Syntex Corp. at a cost of more than $100 million as the company's preeminent testing lab and is located adjacent to Mission West Properties' and Legacy Partners' campus developments. Sphere: Related Content
Nordea Completes $1 Billion Pan-Nordic Sale-Leaseback Transaction
PRNewswire - May 6, 2004
Cardinal Capital Partners, Inc., a U.S. based real estate investment firm, recently completed the acquisition of a multinational real estate portfolio valued at approximately $1 billion from Nordea Bank and its subsidiaries. The portfolio is comprised of 13 properties located in the central business districts of Stockholm, Sweden; Oslo, Norway; and Helsinki, Finland and encompasses 2 million square feet (192,000 m2) of premiere office and retail properties.
The deal reportedly took a year to complete and featured a 25-year lease for 2 million square feet of CBD office space.
Sphere: Related Content
Cardinal Capital Partners, Inc., a U.S. based real estate investment firm, recently completed the acquisition of a multinational real estate portfolio valued at approximately $1 billion from Nordea Bank and its subsidiaries. The portfolio is comprised of 13 properties located in the central business districts of Stockholm, Sweden; Oslo, Norway; and Helsinki, Finland and encompasses 2 million square feet (192,000 m2) of premiere office and retail properties.
The deal reportedly took a year to complete and featured a 25-year lease for 2 million square feet of CBD office space.
Sphere: Related Content
Wachovia to Enter $547 million Sale Leaseback of 8.2 Million SF Portfolio
SEC Edgar Web Site - May 11, 2004
American Financial Realty Trust today announced that it has signed a contract to acquire a portfolio of 150 properties, totaling approximately 8.2 million square feet, from Wachovia Bank for an aggregate purchase price of approximately $547 million. The portfolio composition includes bank branches and both large and small office buildings. The Company expects to complete the acquisition in the third quarter.
Upon completion of the transaction, the seller will lease approximately 5.0 million square feet in the portfolio for a 20-year term at an annual triple net rental rate equal to approximately 8.5% of the Company's purchase price for the leased space, and will lease an additional 1.1 million square feet of space on a temporary basis for rent equal to operating expenses for the properties. A portion of the portfolio is currently leased to third parties, while the remainder of the portfolio will be acquired vacant.
Within the portfolio, American Financial intends to acquire 24 non-core properties, aggregating approximately 2.0 million square feet, and to immediately commence marketing these properties for sale. Assuming sale of these properties, the seller's occupancy within the portfolio will rise to over 80%. Sphere: Related Content
American Financial Realty Trust today announced that it has signed a contract to acquire a portfolio of 150 properties, totaling approximately 8.2 million square feet, from Wachovia Bank for an aggregate purchase price of approximately $547 million. The portfolio composition includes bank branches and both large and small office buildings. The Company expects to complete the acquisition in the third quarter.
Upon completion of the transaction, the seller will lease approximately 5.0 million square feet in the portfolio for a 20-year term at an annual triple net rental rate equal to approximately 8.5% of the Company's purchase price for the leased space, and will lease an additional 1.1 million square feet of space on a temporary basis for rent equal to operating expenses for the properties. A portion of the portfolio is currently leased to third parties, while the remainder of the portfolio will be acquired vacant.
Within the portfolio, American Financial intends to acquire 24 non-core properties, aggregating approximately 2.0 million square feet, and to immediately commence marketing these properties for sale. Assuming sale of these properties, the seller's occupancy within the portfolio will rise to over 80%. Sphere: Related Content
Bank of America to Enter $546 million Sale Leaseback of 7.5 Million SF Portfolio
SEC Edgar Web Site - May 10, 2004
On May 7, 2004, the American Financial Realty Trust and Bank of America, N.A. entered into a letter of understanding regarding the Company's purchase of a portfolio of 263 properties, aggregating 7.5 million square feet. The portfolio described in the letter of understanding includes 179 bank branches and 84 office buildings, which the Company will purchase for aggregate consideration of approximately $546 million.
The proposed transaction contemplates that the Seller will lease back from the Company approximately 63.5% of the space in the portfolio for a term of 15 or 20 years (at the option of the Seller) at an annual triple net rental rate equal to between approximately 8.4% and 8.55% of the Company's purchase price for the leased
space, depending on the term selected.
The Seller is also expected to occupy an additional approximately 7% of the portfolio for up to 18 months, at an annual rent equal to operating expenses plus $1.00 per square foot. An additional approximately 11% of the portfolio is currently leased to third party tenants, while the remaining approximately 15% of the portfolio will be acquired vacant.
(The properties are believed to be thos acquired by Bank of America in its merger with FleetBoston Financial Corporation.)
American Financial expects to achieve an average annual capitalization rate of approximately 9.25% on the portfolio over the initial 20 year term of the Seller's leases, or approximately 9.0% assuming the Seller selects an initial 15 year lease term.
Sphere: Related Content
On May 7, 2004, the American Financial Realty Trust and Bank of America, N.A. entered into a letter of understanding regarding the Company's purchase of a portfolio of 263 properties, aggregating 7.5 million square feet. The portfolio described in the letter of understanding includes 179 bank branches and 84 office buildings, which the Company will purchase for aggregate consideration of approximately $546 million.
The proposed transaction contemplates that the Seller will lease back from the Company approximately 63.5% of the space in the portfolio for a term of 15 or 20 years (at the option of the Seller) at an annual triple net rental rate equal to between approximately 8.4% and 8.55% of the Company's purchase price for the leased
space, depending on the term selected.
The Seller is also expected to occupy an additional approximately 7% of the portfolio for up to 18 months, at an annual rent equal to operating expenses plus $1.00 per square foot. An additional approximately 11% of the portfolio is currently leased to third party tenants, while the remaining approximately 15% of the portfolio will be acquired vacant.
(The properties are believed to be thos acquired by Bank of America in its merger with FleetBoston Financial Corporation.)
American Financial expects to achieve an average annual capitalization rate of approximately 9.25% on the portfolio over the initial 20 year term of the Seller's leases, or approximately 9.0% assuming the Seller selects an initial 15 year lease term.
Sphere: Related Content
Friday, May 21, 2004
Charles Schwab to Sell & Leaseback San Francisco HQ
CoStar Web Site - May 6, 2004
American Financial Realty Trust (NYSE: AFR) said it signed a non-binding letter of intent to acquire a downtown San Francisco office building fully leased to financial advisor Charles Schwab & Co. as well as Schwab's leasehold interests in three suburban office buildings. The agreement covers approximately 823,500 square feet of office space in Northern California.
American Financial said it will buy a 373,500-square-foot, Class-A office building in downtown San Francisco that will be fully leased on a 'bond net' basis by Schwab. American Financial also said it will "assume control over" three office buildings in Northern California totaling approximately 450,000 square feet and currently leased to, but not occupied by, Schwab.
Those buildings are believed to be part of Pleasanton Corporate Commons, a four-building office park developed by Hines on Stoneridge Mall Road, near the intersection of Interstates 580 and 680 in the East Bay community of Pleasanton. Schwab pre-leased the campus from Hines in 2000 with plans to occupy the entire complex. But those plans never materialized as the economy slipped into recession and Schwab initiated several rounds of lay-offs, eventually putting the space up for sublease.
Hines sold the office park to Swiss banker UBS at the end of last year in a sale brokered by Secured Capital Corp. It is believed that Schwab's leases may have been restructured as part of that sale. Prior to the sale, Schwab had two long-term leases for the Pleasanton buildings. One for one building of approximately 150,000 square feet through 2010, and the other for the remaining 446,000 square feet through 2013. Schwab subleased approximately 118,000 square feet in one of the buildings to E-Loan.
Sphere: Related Content
American Financial Realty Trust (NYSE: AFR) said it signed a non-binding letter of intent to acquire a downtown San Francisco office building fully leased to financial advisor Charles Schwab & Co. as well as Schwab's leasehold interests in three suburban office buildings. The agreement covers approximately 823,500 square feet of office space in Northern California.
American Financial said it will buy a 373,500-square-foot, Class-A office building in downtown San Francisco that will be fully leased on a 'bond net' basis by Schwab. American Financial also said it will "assume control over" three office buildings in Northern California totaling approximately 450,000 square feet and currently leased to, but not occupied by, Schwab.
Those buildings are believed to be part of Pleasanton Corporate Commons, a four-building office park developed by Hines on Stoneridge Mall Road, near the intersection of Interstates 580 and 680 in the East Bay community of Pleasanton. Schwab pre-leased the campus from Hines in 2000 with plans to occupy the entire complex. But those plans never materialized as the economy slipped into recession and Schwab initiated several rounds of lay-offs, eventually putting the space up for sublease.
Hines sold the office park to Swiss banker UBS at the end of last year in a sale brokered by Secured Capital Corp. It is believed that Schwab's leases may have been restructured as part of that sale. Prior to the sale, Schwab had two long-term leases for the Pleasanton buildings. One for one building of approximately 150,000 square feet through 2010, and the other for the remaining 446,000 square feet through 2013. Schwab subleased approximately 118,000 square feet in one of the buildings to E-Loan.
Sphere: Related Content
Halifax Bank of Scotland Nearing £150 Million Sale Leaseback of London HQ
Property Week - April 16, 2004
Halifax Bank of Scotland is set to sell its City of London headquarters to Vincent Tchenguiz's new company, just four months after buying the building. Consensus is buying 33 Old Broad Street, EC2, for around £150m with the benefit of a new 35-year leaseback to HBoS.
The 192,000 sq ft (17,837 sq m) building was bought by HBoS from Prudential for around £130m at the end of last year, but the new lease has made it a more valuable investment. The Broad Street deal coincides with a rise in activity in the City investment market. Two large buildings have gone up for sale this week, as some private investors decide to cash in on the huge demand to buy buildings.
Matrix Securities is trying to sell Alban Gate, 125 London Wall, EC2, for around £270m. The move is surprising because Matrix only bought the building in June for around £240m, and private investor syndicates such as Matrix usually hold their investments rather than trade them. CB Richard Ellis is believed to be advising Matrix.
In the second sale, a Malaysian-controlled private family trust has placed 280 Bishopsgate, the London HQ of Royal Bank of Scotland, on the market at £242m. The building was bought in early 2002 for around £220m. FPDSavills is the selling agent.
However, James Crawford, head of City investment at FPDSavills, warned: ‘There is less on the market in the City now than there has been in the last 10 years.' Sphere: Related Content
Halifax Bank of Scotland is set to sell its City of London headquarters to Vincent Tchenguiz's new company, just four months after buying the building. Consensus is buying 33 Old Broad Street, EC2, for around £150m with the benefit of a new 35-year leaseback to HBoS.
The 192,000 sq ft (17,837 sq m) building was bought by HBoS from Prudential for around £130m at the end of last year, but the new lease has made it a more valuable investment. The Broad Street deal coincides with a rise in activity in the City investment market. Two large buildings have gone up for sale this week, as some private investors decide to cash in on the huge demand to buy buildings.
Matrix Securities is trying to sell Alban Gate, 125 London Wall, EC2, for around £270m. The move is surprising because Matrix only bought the building in June for around £240m, and private investor syndicates such as Matrix usually hold their investments rather than trade them. CB Richard Ellis is believed to be advising Matrix.
In the second sale, a Malaysian-controlled private family trust has placed 280 Bishopsgate, the London HQ of Royal Bank of Scotland, on the market at £242m. The building was bought in early 2002 for around £220m. FPDSavills is the selling agent.
However, James Crawford, head of City investment at FPDSavills, warned: ‘There is less on the market in the City now than there has been in the last 10 years.' Sphere: Related Content
Soros Buys Five Building Portfolio Occupied By HQ Office Suites
Freeman News - May 11, 2004
Soros Real Estate and Peter Kershaw have bought a portfolio of five buildings from Merrill Lynch Executive Office Partnership for a total of £52.3m. The five buildings were occupied by HQ, the UK's second-largest serviced office provider after Regus.
Kershaw and Soros together bought out HQ's UK business from its US parent after it emerged from Chapter 11 bankruptcy protection last year. The offices are at St James's Square, Mayfair; Bishopsgate, London EC2; Fenchurch Avenue, EC3; Bristol Business Park and Edinburgh Park.
Bank of Scotland provided financing for the deal. Merrill Lynch has also provided funding for five years. HQ has also signed a 13-year lease on its building at Stockley Park. The building is owned by Merrill Lynch Property Fund. HQ currently operates 20 centres in the UK and plans to increase this number to 30 within three years. Sphere: Related Content
Soros Real Estate and Peter Kershaw have bought a portfolio of five buildings from Merrill Lynch Executive Office Partnership for a total of £52.3m. The five buildings were occupied by HQ, the UK's second-largest serviced office provider after Regus.
Kershaw and Soros together bought out HQ's UK business from its US parent after it emerged from Chapter 11 bankruptcy protection last year. The offices are at St James's Square, Mayfair; Bishopsgate, London EC2; Fenchurch Avenue, EC3; Bristol Business Park and Edinburgh Park.
Bank of Scotland provided financing for the deal. Merrill Lynch has also provided funding for five years. HQ has also signed a 13-year lease on its building at Stockley Park. The building is owned by Merrill Lynch Property Fund. HQ currently operates 20 centres in the UK and plans to increase this number to 30 within three years. Sphere: Related Content
Unilever Unit Completes Sale Leaseback of CT Offices
Fairfield County Business Journal - April 12, 2004
Consumer products giant Unilever, as part of its expansion plans in Trumbull, has decided the company might be better off leasing a building it has owned since it was built in the mid-1960s. A deed filed with the town of Trumbull shows that Unilever subsidiary Conopco Inc. sold the 100,000-square-foot structure at 20 and 40 Merritt blvd. to WH-Conn L.L.C. for $21.5 million on Feb. 24. The buyer is a subsidiary of Whiting-Turner Contracting Co. of Baltimore - the company currently constructing the $20 million, 80,000-square-foot expansion to the building Unilever announced in October.
Unilever Home and Personal Care U.S.A. is consolidating units from Greenwich and New Jersey in an expanded five-building campus, adding 600 new jobs and bringing its total employment in Trumbull to about 1,500 people.
The $21.5 million price tag Whiting-Turner paid represents a premium price, real estate brokers said. With the planed expansion, the building would total 180,000 square feet, putting the cost at $119 per square foot.
Sphere: Related Content
Consumer products giant Unilever, as part of its expansion plans in Trumbull, has decided the company might be better off leasing a building it has owned since it was built in the mid-1960s. A deed filed with the town of Trumbull shows that Unilever subsidiary Conopco Inc. sold the 100,000-square-foot structure at 20 and 40 Merritt blvd. to WH-Conn L.L.C. for $21.5 million on Feb. 24. The buyer is a subsidiary of Whiting-Turner Contracting Co. of Baltimore - the company currently constructing the $20 million, 80,000-square-foot expansion to the building Unilever announced in October.
Unilever Home and Personal Care U.S.A. is consolidating units from Greenwich and New Jersey in an expanded five-building campus, adding 600 new jobs and bringing its total employment in Trumbull to about 1,500 people.
The $21.5 million price tag Whiting-Turner paid represents a premium price, real estate brokers said. With the planed expansion, the building would total 180,000 square feet, putting the cost at $119 per square foot.
Sphere: Related Content
Borders Books Completes Sale Leaseback of UK HQ & Flagship Store
Jones Lang LaSalle UK Web Site - April 20, 2004
Borders (UK) Ltd Completes Sale and Leaseback of Charing Cross Road Head Quarters and Flagship Store. Acting on behalf of Borders (UK) Ltd, Jones Lang LaSalle has successfully exchanged and completed contracts on the sale and leaseback of the landmark building at 118-124 Charing Cross Road that houses Borders' head office and flagship superstore.
Knight Frank, acting on behalf of clients of Credit Suisse Asset Management, purchased the property on which Borders (UK) Ltd has signed up to a 20-year lease. The purchase demonstrates the continuing strength of the Central London retail market and more specifically the increased demand for property in Charing Cross Road. Sphere: Related Content
Borders (UK) Ltd Completes Sale and Leaseback of Charing Cross Road Head Quarters and Flagship Store. Acting on behalf of Borders (UK) Ltd, Jones Lang LaSalle has successfully exchanged and completed contracts on the sale and leaseback of the landmark building at 118-124 Charing Cross Road that houses Borders' head office and flagship superstore.
Knight Frank, acting on behalf of clients of Credit Suisse Asset Management, purchased the property on which Borders (UK) Ltd has signed up to a 20-year lease. The purchase demonstrates the continuing strength of the Central London retail market and more specifically the increased demand for property in Charing Cross Road. Sphere: Related Content
Fidelity to Sell & Leaseback Two Boston Office Buildings
BostonHerald.com - April 30, 2004
Fidelity Investments is putting on the market a significant block of its downtown Boston real estate holdings in a bid to cash in on a hot investment market for fully leased office properties.
The financial services giant plans to sell the 900,000-square-foot 245 Summer St. building, next to South Station, and a much smaller 7 Water St., near Post Office Square, a company spokeswoman confirmed yesterday.
The move is part of an effort, said spokeswoman Anne Crowley, to cash in on sky-high demand by real estate investors for office buildings leased to high-quality corporate tenants. As part of the deal, Fidelity will lease back its space in the former Stone & Webster building - a key factor that would make the 14-story South Station high-rise more valuable to investors, observers say.
Fidelity bought the 1970s era edifice for roughly $190 million in 1999. The financial services giant could get nearly $100 million more for it, noted one real estate executive.
In opting to put the downtown buildings on the block, Fidelity may be eyeing the record, $705 million sale of the recently completed State Street Financial Center. That 1 million square foot tower sold for more than twice its $350 million development cost, largely due to its lease to State Street Corp., observers say.
Fidelity, at the least, could sell 245 Summer for $300 a square foot - or $270 million - with the price going up from there, noted Gary Lemire of CB Richard Ellis/Whittier Partners. It's also expected to lease back space it occupies at 7 Water St. Sphere: Related Content
Fidelity Investments is putting on the market a significant block of its downtown Boston real estate holdings in a bid to cash in on a hot investment market for fully leased office properties.
The financial services giant plans to sell the 900,000-square-foot 245 Summer St. building, next to South Station, and a much smaller 7 Water St., near Post Office Square, a company spokeswoman confirmed yesterday.
The move is part of an effort, said spokeswoman Anne Crowley, to cash in on sky-high demand by real estate investors for office buildings leased to high-quality corporate tenants. As part of the deal, Fidelity will lease back its space in the former Stone & Webster building - a key factor that would make the 14-story South Station high-rise more valuable to investors, observers say.
Fidelity bought the 1970s era edifice for roughly $190 million in 1999. The financial services giant could get nearly $100 million more for it, noted one real estate executive.
In opting to put the downtown buildings on the block, Fidelity may be eyeing the record, $705 million sale of the recently completed State Street Financial Center. That 1 million square foot tower sold for more than twice its $350 million development cost, largely due to its lease to State Street Corp., observers say.
Fidelity, at the least, could sell 245 Summer for $300 a square foot - or $270 million - with the price going up from there, noted Gary Lemire of CB Richard Ellis/Whittier Partners. It's also expected to lease back space it occupies at 7 Water St. Sphere: Related Content
Morgan Lewis & Bockius Philadelphia HQ For Sale
Philadelphia Business Journal - April 30, 2004
Six Penn Center, home to the prestigious Philadelphia law firm of Morgan Lewis & Bockius is up for sale. The 305,000-square-foot building is fully leased to Morgan Lewis, which made its home there in the fall of 1998 after a controversial move from One Logan Square. There are nearly 10 years left on a 15-year lease of the building.
The building has several owners. Financial services firm Morgan Stanley owns a portion of the property on behalf of pension funds. Pennsylvania Real Estate Investment Trust of Philadelphia is also an owner. Holliday Fenolglio Fowler is marketing the building. The sale price was not set but estimated to reach $60 million.
The 20-story building has a five-story parking garage that can accommodate 194 vehicles. Since the parking deck was once office space, the garage floors can be converted back into office space to allow Morgan Lewis to expand if necessary.
Sphere: Related Content
Six Penn Center, home to the prestigious Philadelphia law firm of Morgan Lewis & Bockius is up for sale. The 305,000-square-foot building is fully leased to Morgan Lewis, which made its home there in the fall of 1998 after a controversial move from One Logan Square. There are nearly 10 years left on a 15-year lease of the building.
The building has several owners. Financial services firm Morgan Stanley owns a portion of the property on behalf of pension funds. Pennsylvania Real Estate Investment Trust of Philadelphia is also an owner. Holliday Fenolglio Fowler is marketing the building. The sale price was not set but estimated to reach $60 million.
The 20-story building has a five-story parking garage that can accommodate 194 vehicles. Since the parking deck was once office space, the garage floors can be converted back into office space to allow Morgan Lewis to expand if necessary.
Sphere: Related Content
Saturday, May 08, 2004
Property Consultant DTZ Etimates £40 Billion in UK Property Outsourcing Over Next Five Years
Times Online - May 03, 2004
DTZ, the property consultant, said that companies and public sector organisations sold off more than £20 billion of real estate in the last five years but that this would increase as more businesses opted to cash in on the value of their property assets.
DTZ said that sale and leaseback deals accounted for almost 50 per cent of property outsourcing deals over the last two years. DTZ also expects local authorities and other public sector bodies to sell off more of their property holdings. It estimates that UK local authorities own £110 billion of property, excluding council houses. The property consultant said that councils such as Birmingham and Southwark both have larger property portfolios than some of the major listed UK property companies.
Property experts believe that as many indebted local authorities come under increasing pressure to manage their assets more effectively, they will be tempted to sell off property as way to ease financial pressures. Bradford City Council is one of the first council’s to consider outsourcing its property portfolio. Earlier this year it drew up a shortlist of bidders, including Land Securities, the UK’s largest property company, to own and manage its property portfolio.
DTZ said that 72 per cent of the estimated £3.9 trillion of commercial property in Europe was owned directly by businesses and public sector organisations rather than by property companies or by investors. Sphere: Related Content
DTZ, the property consultant, said that companies and public sector organisations sold off more than £20 billion of real estate in the last five years but that this would increase as more businesses opted to cash in on the value of their property assets.
DTZ said that sale and leaseback deals accounted for almost 50 per cent of property outsourcing deals over the last two years. DTZ also expects local authorities and other public sector bodies to sell off more of their property holdings. It estimates that UK local authorities own £110 billion of property, excluding council houses. The property consultant said that councils such as Birmingham and Southwark both have larger property portfolios than some of the major listed UK property companies.
Property experts believe that as many indebted local authorities come under increasing pressure to manage their assets more effectively, they will be tempted to sell off property as way to ease financial pressures. Bradford City Council is one of the first council’s to consider outsourcing its property portfolio. Earlier this year it drew up a shortlist of bidders, including Land Securities, the UK’s largest property company, to own and manage its property portfolio.
DTZ said that 72 per cent of the estimated £3.9 trillion of commercial property in Europe was owned directly by businesses and public sector organisations rather than by property companies or by investors. Sphere: Related Content
Tuesday, May 04, 2004
Commercial Net Lease Realty, Inc. Announces Retirement of President and Chief Operating Officer
BUSINESS WIRE - May 3, 2004
Commercial Net Lease Realty, Inc. (NYSE:NNN), announced today that Gary M. Ralston, President and Chief Operating Officer, has retired effective May 1, 2004. Mr. Ralston has also resigned his position from the company's Board of Directors. Craig Macnab, Chief Executive Officer, has assumed the title of President.
'While it is difficult to leave a company which has been such a big part of my life for almost 15 years, I am grateful for the opportunities I've been presented and proud of the achievements our team has accomplished,' said Mr. Ralston.
'Gary Ralston has been an integral part of the growth of our company from less than $15 million in 1992 to more than $1.25 billion today and we very much appreciate the contributions he has made to Commercial Net Lease Realty,' said James M. Seneff, Jr., Chairman of the Board.
'One of the things that attracted me to Commercial Net Lease Realty was the strong management team and the quality of the balance sheet,' added Craig Macnab, Chief Executive Officer. 'Gary has done a terrific job providing the leadership over the past decade that has brought the company to where it is today.
Futher commentary on the departure of Ralston can be found at the Commercial Property News web site at the link below.
http://www.cpnonline.com/commercialpropertynews/headlines/article_display.jsp?vnu_content_id=1000502609 Sphere: Related Content
Commercial Net Lease Realty, Inc. (NYSE:NNN), announced today that Gary M. Ralston, President and Chief Operating Officer, has retired effective May 1, 2004. Mr. Ralston has also resigned his position from the company's Board of Directors. Craig Macnab, Chief Executive Officer, has assumed the title of President.
'While it is difficult to leave a company which has been such a big part of my life for almost 15 years, I am grateful for the opportunities I've been presented and proud of the achievements our team has accomplished,' said Mr. Ralston.
'Gary Ralston has been an integral part of the growth of our company from less than $15 million in 1992 to more than $1.25 billion today and we very much appreciate the contributions he has made to Commercial Net Lease Realty,' said James M. Seneff, Jr., Chairman of the Board.
'One of the things that attracted me to Commercial Net Lease Realty was the strong management team and the quality of the balance sheet,' added Craig Macnab, Chief Executive Officer. 'Gary has done a terrific job providing the leadership over the past decade that has brought the company to where it is today.
Futher commentary on the departure of Ralston can be found at the Commercial Property News web site at the link below.
http://www.cpnonline.com/commercialpropertynews/headlines/article_display.jsp?vnu_content_id=1000502609 Sphere: Related Content
U-Haul Completes $312 Million Sale Leaseback Transaction
PR Newswire - May 4, 2004
Investment firm W. P. Carey & Co. LLC announced today the completion of a $312 million lease transaction involving 78 retail self-storage and truck rental facilities totalling 4 milion square feet in 24 states which operate under the U-Haul brand name. U-Haul used proceeds from the sale-leaseback to pay off their synthetic lease debt.
The properties, totaling approximately four million square feet, were acquired on behalf of Corporate Property Associates 14 Incorporated, (CPA(R):14), Corporate Property Associates 15 Incorporated (CPA(R):15), and Corporate Property Associates 16 -- Global Incorporated (CPA(R):16 -- Global), members of the W. P. Carey Group of income generating, publicly held non-traded real estate investment trusts (REITs).
The facilities are located in 69 cities in 24 states. All 78 locations contain a truck rental facility, and all but one contains a self-storage facility. Under the terms of the two separate bond-type net lease agreements the self-storage facilities will be leased for an initial term of 20 years. The lease can be renewed for two ten-year periods. The truck rental facilities will be leased for an initial term of 10 years. There is also a 20-year management agreement with U-Haul to run both sides of the operation.
Sphere: Related Content
Investment firm W. P. Carey & Co. LLC announced today the completion of a $312 million lease transaction involving 78 retail self-storage and truck rental facilities totalling 4 milion square feet in 24 states which operate under the U-Haul brand name. U-Haul used proceeds from the sale-leaseback to pay off their synthetic lease debt.
The properties, totaling approximately four million square feet, were acquired on behalf of Corporate Property Associates 14 Incorporated, (CPA(R):14), Corporate Property Associates 15 Incorporated (CPA(R):15), and Corporate Property Associates 16 -- Global Incorporated (CPA(R):16 -- Global), members of the W. P. Carey Group of income generating, publicly held non-traded real estate investment trusts (REITs).
The facilities are located in 69 cities in 24 states. All 78 locations contain a truck rental facility, and all but one contains a self-storage facility. Under the terms of the two separate bond-type net lease agreements the self-storage facilities will be leased for an initial term of 20 years. The lease can be renewed for two ten-year periods. The truck rental facilities will be leased for an initial term of 10 years. There is also a 20-year management agreement with U-Haul to run both sides of the operation.
Sphere: Related Content
Friday, April 30, 2004
Fidelity Pursuing $270 Million Sale Leaseback of Two Boston Office Buildings
Boston Herald - April 30, 2004
Fidelity Investments is putting on the market a significant block of its downtown Boston real estate holdings in a bid to cash in on a hot investment market for fully leased office properties.
The financial services giant plans to sell the 900,000-square-foot 245 Summer St. building, next to South Station, and a much smaller 7 Water St., near Post Office Square, a company spokeswoman confirmed yesterday.
The move is part of an effort, said spokeswoman Anne Crowley, to cash in on sky-high demand by real estate investors for office buildings leased to high-quality corporate tenants. As part of the deal, Fidelity will lease back its space in the former Stone & Webster building - a key factor that would make the 14-story South Station high-rise more valuable to investors, observers say.
Fidelity bought the 1970s era edifice for roughly $190 million in 1999. The financial services giant could get nearly $100 million more for it, noted one real estate executive.
In opting to put the downtown buildings on the block, Fidelity may be eyeing the record, $705 million sale of the recently completed State Street Financial Center. That 1 million square foot tower sold for more than twice its $350 million development cost, largely due to its lease to State Street Corp., observers say.
Fidelity, at the least, could sell 245 Summer for $300 a square foot - or $270 million - with the price going up from there, noted Gary Lemire of CB Richard Ellis/Whittier Partners. It's also expected to lease back space it occupies at 7 Water St.
Sphere: Related Content
Fidelity Investments is putting on the market a significant block of its downtown Boston real estate holdings in a bid to cash in on a hot investment market for fully leased office properties.
The financial services giant plans to sell the 900,000-square-foot 245 Summer St. building, next to South Station, and a much smaller 7 Water St., near Post Office Square, a company spokeswoman confirmed yesterday.
The move is part of an effort, said spokeswoman Anne Crowley, to cash in on sky-high demand by real estate investors for office buildings leased to high-quality corporate tenants. As part of the deal, Fidelity will lease back its space in the former Stone & Webster building - a key factor that would make the 14-story South Station high-rise more valuable to investors, observers say.
Fidelity bought the 1970s era edifice for roughly $190 million in 1999. The financial services giant could get nearly $100 million more for it, noted one real estate executive.
In opting to put the downtown buildings on the block, Fidelity may be eyeing the record, $705 million sale of the recently completed State Street Financial Center. That 1 million square foot tower sold for more than twice its $350 million development cost, largely due to its lease to State Street Corp., observers say.
Fidelity, at the least, could sell 245 Summer for $300 a square foot - or $270 million - with the price going up from there, noted Gary Lemire of CB Richard Ellis/Whittier Partners. It's also expected to lease back space it occupies at 7 Water St.
Sphere: Related Content
Tuesday, April 20, 2004
American Financial Announces Acquisition of Citigroup Properties
PRNewswire-FirstCall - April 19, 2004
American Financial Realty Trust announced that it has signed agreements to purchase three office buildings to be developed by Koll Development, LLC and net leased by an affiliate of Citigroup, Inc. The three buildings, totaling approximately 531,000 square feet, will be located in Louisville, Kentucky, Greensboro, North Carolina and Boise, Idaho. All three properties are to be developed concurrently and are expected to be completed in the fourth quarter of 2004.
American Financial's purchase price for the three properties will be between $85.6 million and $88.6 million, based upon construction requirements of the lessee, payable upon completion of construction. American Financial will assume no development risk in the transactions, as an affiliate of Citigroup has net leased the properties at a rental rate to be determined as a percentage of the Company's gross purchase price. The Citigroup leases will be for an initial term of 15 years with two five-year renewal options. Citicorp (rated AA- by Standard and Poor's) will guarantee the lessee's obligations under the leases.
Sphere: Related Content
American Financial Realty Trust announced that it has signed agreements to purchase three office buildings to be developed by Koll Development, LLC and net leased by an affiliate of Citigroup, Inc. The three buildings, totaling approximately 531,000 square feet, will be located in Louisville, Kentucky, Greensboro, North Carolina and Boise, Idaho. All three properties are to be developed concurrently and are expected to be completed in the fourth quarter of 2004.
American Financial's purchase price for the three properties will be between $85.6 million and $88.6 million, based upon construction requirements of the lessee, payable upon completion of construction. American Financial will assume no development risk in the transactions, as an affiliate of Citigroup has net leased the properties at a rental rate to be determined as a percentage of the Company's gross purchase price. The Citigroup leases will be for an initial term of 15 years with two five-year renewal options. Citicorp (rated AA- by Standard and Poor's) will guarantee the lessee's obligations under the leases.
Sphere: Related Content
Friday, April 16, 2004
NY Partnership to Acquire Morgan, Lewis and Bockius' DC HQ
REAL ESTATE FINANCE AND INVESTMENT- April 11, 2004
Joseph Chetrit, Lloyd Goldman and Jeffrey Feil are the winning bidders for a coveted office at 1111 Pennsylvania Ave. N.W., near the White House, for $160 million. The office is occupied entirely by law firm Morgan, Lewis and Bockius, which has a 15-year lease in place. Fresh off of their plan to buy the Sears Tower for about $835 million from MetLife (REFI, 3/15), the partnership is said to be looking to pay about $450 per square foot for the downtown trophy 356,000-square-foot office, which translates into a low 5.5% capitalization rate.
The building is being marketing by representatives of philanthropist Dr. Lazlo Tauber (REFI, 1/26). It is unclear if all three private investors are involved in the deal or if any other investors are participating. Several calls to Goldman, Feil and Chetrit were not returned. Officials at Eastdil Realty, which is representing Tauber's estate, also did not return a call.
Observers originally believed that the building, known as the Presidential Building, would sell for about $140 million. Its location and the belief that it was a one-of-a-kind property subsequently boosted bidding, said one REIT official German investor KanAm was also in the running for the office, observers said. Officials there did not return a call. Sphere: Related Content
Joseph Chetrit, Lloyd Goldman and Jeffrey Feil are the winning bidders for a coveted office at 1111 Pennsylvania Ave. N.W., near the White House, for $160 million. The office is occupied entirely by law firm Morgan, Lewis and Bockius, which has a 15-year lease in place. Fresh off of their plan to buy the Sears Tower for about $835 million from MetLife (REFI, 3/15), the partnership is said to be looking to pay about $450 per square foot for the downtown trophy 356,000-square-foot office, which translates into a low 5.5% capitalization rate.
The building is being marketing by representatives of philanthropist Dr. Lazlo Tauber (REFI, 1/26). It is unclear if all three private investors are involved in the deal or if any other investors are participating. Several calls to Goldman, Feil and Chetrit were not returned. Officials at Eastdil Realty, which is representing Tauber's estate, also did not return a call.
Observers originally believed that the building, known as the Presidential Building, would sell for about $140 million. Its location and the belief that it was a one-of-a-kind property subsequently boosted bidding, said one REIT official German investor KanAm was also in the running for the office, observers said. Officials there did not return a call. Sphere: Related Content
PETCO Funds Acquisition of 20 Stores in Sale Leaseback Deal
Yahoo News / PRNewswire-FirstCall - March 23, 2004
Office Depot, Inc. (NYSE: ODP - News), one of the world's leading sellers of office products, and PETCO Animal Supplies, Inc. (Nasdaq: PETC - News), a leading specialty retailer of premium pet food, supplies and services, announced that they have reached an agreement under which PETCO will acquire 20 former Kids 'R' Us stores from Office Depot for approximately $45 million in cash plus the assumption of lease obligations on leased properties.
The 20 stores -- concentrated in Florida and Ohio, with other locations in Illinois, Kansas, Michigan, North Carolina and New York -- are part of the 124 Kids 'R' Us properties that Office Depot agreed to purchase on March 3. At that time, Office Depot announced its commitment to convert 50-60 Kids 'R' Us stores to Office Depot locations as well as its intention to sell the remaining properties.
James Myers, CEO of PETCO, commented "In addition to enabling us to further penetrate key markets in an efficient manner, the acquisition of the stores will be funded without incurring significant capital outlay, through a sale-leaseback transaction providing traditional store operating lease financing for PETCO."
Sphere: Related Content
Office Depot, Inc. (NYSE: ODP - News), one of the world's leading sellers of office products, and PETCO Animal Supplies, Inc. (Nasdaq: PETC - News), a leading specialty retailer of premium pet food, supplies and services, announced that they have reached an agreement under which PETCO will acquire 20 former Kids 'R' Us stores from Office Depot for approximately $45 million in cash plus the assumption of lease obligations on leased properties.
The 20 stores -- concentrated in Florida and Ohio, with other locations in Illinois, Kansas, Michigan, North Carolina and New York -- are part of the 124 Kids 'R' Us properties that Office Depot agreed to purchase on March 3. At that time, Office Depot announced its commitment to convert 50-60 Kids 'R' Us stores to Office Depot locations as well as its intention to sell the remaining properties.
James Myers, CEO of PETCO, commented "In addition to enabling us to further penetrate key markets in an efficient manner, the acquisition of the stores will be funded without incurring significant capital outlay, through a sale-leaseback transaction providing traditional store operating lease financing for PETCO."
Sphere: Related Content
Captec Completes Sale Leaseback of 24 Burger King Restaurants in Chicago
Crain's Detroit Business - April 06, 2004
Ann Arbor-based Captec Financial Group Inc. acquired 24 Burger King restaurants in Chicago and the surrounding suburbs from BNB Land Venture Inc. The deal is a sale-leaseback arrangement where Captec owns the properties and leases them to BNB, Ken Milne, senior vice president for Captec, said in a statement. Sphere: Related Content
Ann Arbor-based Captec Financial Group Inc. acquired 24 Burger King restaurants in Chicago and the surrounding suburbs from BNB Land Venture Inc. The deal is a sale-leaseback arrangement where Captec owns the properties and leases them to BNB, Ken Milne, senior vice president for Captec, said in a statement. Sphere: Related Content
HealthSouth Lost Millions in Failed Sale Leaseback Deal in 2002
The Birmingham News - April 4, 2004
A failed real-estate partnership involving relatives of former high-ranking executives of HealthSouth Corp. in 2002 ended up costing the Birmingham company more than $16.5 million. The complex deal involved HealthSouth selling 14 facilities to an entity known as First Cambridge-HCI Acquisition LLC, which would lease the facilities back to HealthSouth.
The plan then called for First Cambridge-HCI to sell shares to the public in a deal that bears striking similarities to a HealthSouth spin-off called Capstone Capital Corp. that operated in Birmingham in the mid-1990s.
In December 2001, documents show, UBS arranged an $82.2 million loan for First Cambridge-HCI that was backed by HealthSouth. First Cambridge-HCI used the money to buy 14 health care facilities from HealthSouth, then leased the properties in Texas, California, Florida, Arizona, South Carolina and North Carolina back to the Birmingham company for $9.5 million a year.
HCI intended to establish a total portfolio of approximately 25-30 properties within the first three to six months of 2002 and then conduct an initial public offering through UBS Warburg. For arranging the transaction, HealthSouth paid what UBS a "success fee" of $900,000, plus 1 percent of the loan value. The company also paid the investment bankers $375,000 for servicing the loan during its one-year term.
When Health South came under investigation for other matters, the deal unraveled. To reclaim the properties it had sold to First Cambridge-HCI, HealthSouth paid the company $87.5 million. A year earlier, HealthSouth had sold those same facilities to First Cambridge for $81.5 million, resulting in a loss of $7 million on the loan and repurchasing the facilities. It also paid $9.5 million in rent it otherwise would not have had to pay.
Sphere: Related Content
A failed real-estate partnership involving relatives of former high-ranking executives of HealthSouth Corp. in 2002 ended up costing the Birmingham company more than $16.5 million. The complex deal involved HealthSouth selling 14 facilities to an entity known as First Cambridge-HCI Acquisition LLC, which would lease the facilities back to HealthSouth.
The plan then called for First Cambridge-HCI to sell shares to the public in a deal that bears striking similarities to a HealthSouth spin-off called Capstone Capital Corp. that operated in Birmingham in the mid-1990s.
In December 2001, documents show, UBS arranged an $82.2 million loan for First Cambridge-HCI that was backed by HealthSouth. First Cambridge-HCI used the money to buy 14 health care facilities from HealthSouth, then leased the properties in Texas, California, Florida, Arizona, South Carolina and North Carolina back to the Birmingham company for $9.5 million a year.
HCI intended to establish a total portfolio of approximately 25-30 properties within the first three to six months of 2002 and then conduct an initial public offering through UBS Warburg. For arranging the transaction, HealthSouth paid what UBS a "success fee" of $900,000, plus 1 percent of the loan value. The company also paid the investment bankers $375,000 for servicing the loan during its one-year term.
When Health South came under investigation for other matters, the deal unraveled. To reclaim the properties it had sold to First Cambridge-HCI, HealthSouth paid the company $87.5 million. A year earlier, HealthSouth had sold those same facilities to First Cambridge for $81.5 million, resulting in a loss of $7 million on the loan and repurchasing the facilities. It also paid $9.5 million in rent it otherwise would not have had to pay.
Sphere: Related Content
BentleyForbes Completes $67 Million Acquisition of Five Building Warehouse Portfolio
BUSINESS WIRE - April 16, 2004
Los Angeles-based BentleyForbes has completed the $67 million acquisition of a five building industrial property portfolio. The approximately 1.5 million-square-foot portfolio is 100-percent leased to the North American operating unit of international logistics provider Kuehne & Nagel. The portfolio is comprised of five warehouse facilities in four states, with locations in: Alsip, Ill.; Franklin, Mass.; Forest Park, GA; and two more in Durham, NC.
In the transaction, Bryon Ward of Grubb & Ellis represented both the seller of the five buildings, Loeb Partners Corporation, and the buyer, BentleyForbes. Long-term leases were already in place with Kuehne & Nagel at the time of sale.
Sphere: Related Content
Los Angeles-based BentleyForbes has completed the $67 million acquisition of a five building industrial property portfolio. The approximately 1.5 million-square-foot portfolio is 100-percent leased to the North American operating unit of international logistics provider Kuehne & Nagel. The portfolio is comprised of five warehouse facilities in four states, with locations in: Alsip, Ill.; Franklin, Mass.; Forest Park, GA; and two more in Durham, NC.
In the transaction, Bryon Ward of Grubb & Ellis represented both the seller of the five buildings, Loeb Partners Corporation, and the buyer, BentleyForbes. Long-term leases were already in place with Kuehne & Nagel at the time of sale.
Sphere: Related Content
Tuesday, April 06, 2004
Senate Panel Targets Tax Deductions on Existing Foreign Leases
CNN.com - Senate panel targets�tax deductions tied to foreign leases - Apr 6, 2004
American companies that leased foreign dams, bridges and subways stand to lose billions of dollars in tax deductions beginning next year under a proposal advanced by Senate tax writers. The House and Senate have advanced bills effectively blocking future leases, but critics said the Senate Finance Committee's new proposal goes further by penalizing companies that entered legal leases years ago, long before debate erupted on Capitol Hill.
The committee started investigating the lease transactions after an anonymous witness testified to their widespread use last fall. "This scheme is so pervasive that much of the old and new infrastructure throughout Europe has been leased to, and leased back from, American corporations," said the witness. "The sole purpose of this scheme is to generate a tax shelter for U.S. corporations that invest in these schemes."
In the typical lease under scrutiny, a local government leases public infrastructure, such as a bridge built or bought with public funds, to a private company to raise revenue. The private company claims a tax break for the depreciated value of the infrastructure while the local government retains control of it.
U.S. companies hunting for new tax deductions have leased as much as $750 billion worth of bridges, subways and other public works in the United States and abroad over the past four years, according to the Treasury Department. Sphere: Related Content
American companies that leased foreign dams, bridges and subways stand to lose billions of dollars in tax deductions beginning next year under a proposal advanced by Senate tax writers. The House and Senate have advanced bills effectively blocking future leases, but critics said the Senate Finance Committee's new proposal goes further by penalizing companies that entered legal leases years ago, long before debate erupted on Capitol Hill.
The committee started investigating the lease transactions after an anonymous witness testified to their widespread use last fall. "This scheme is so pervasive that much of the old and new infrastructure throughout Europe has been leased to, and leased back from, American corporations," said the witness. "The sole purpose of this scheme is to generate a tax shelter for U.S. corporations that invest in these schemes."
In the typical lease under scrutiny, a local government leases public infrastructure, such as a bridge built or bought with public funds, to a private company to raise revenue. The private company claims a tax break for the depreciated value of the infrastructure while the local government retains control of it.
U.S. companies hunting for new tax deductions have leased as much as $750 billion worth of bridges, subways and other public works in the United States and abroad over the past four years, according to the Treasury Department. Sphere: Related Content
Shire Pharmaceuticals Opens US HQ in Philadelphia
Shire Pharmaceuticals picks site of U.S. HQ - 2004-03-30 - Philadelphia Business Journal - March 30, 2004
Shire Pharmaceuticals Group PLC, a British pharmaceutical company, signed a 10-year lease at the Chesterbrook Corporate Center in Tredyffrin, Pa. as the site for its new American headquarters. The company has settled on 725 Chesterbrook Blvd., space that once served as the headquarters of another pharmaceutical giant, AstraZeneca, which moved to Delaware. Shire would lease the entire 128,000-square-foot building, according to various real estate sources.
The space will house the company's research and development as well as administrative and marketing departments, said Souheil Salah, a spokesman with Shire. Shire, which last year operated 14 research and manufacturing facilities in the United States and Canada last year, is seeking to reduce that number to four by the end of 2005, Salah said. As part of that process of consolidating its North American operations, the company decided it wanted to open an East Coast headquarters that would eventually have about 300 employees. Salah said that the headquarters will have 150 employees to start out and grow from there.
Founded in 1994 in Hampshire, Chineham, England, Shire focuses primarily on four therapeutic areas: central nervous system disorders, metabolic diseases, cancer and gastroenterology. Shire generated revenue of $1.2 billion last year, up from $1 billion in 2002. Sphere: Related Content
Shire Pharmaceuticals Group PLC, a British pharmaceutical company, signed a 10-year lease at the Chesterbrook Corporate Center in Tredyffrin, Pa. as the site for its new American headquarters. The company has settled on 725 Chesterbrook Blvd., space that once served as the headquarters of another pharmaceutical giant, AstraZeneca, which moved to Delaware. Shire would lease the entire 128,000-square-foot building, according to various real estate sources.
The space will house the company's research and development as well as administrative and marketing departments, said Souheil Salah, a spokesman with Shire. Shire, which last year operated 14 research and manufacturing facilities in the United States and Canada last year, is seeking to reduce that number to four by the end of 2005, Salah said. As part of that process of consolidating its North American operations, the company decided it wanted to open an East Coast headquarters that would eventually have about 300 employees. Salah said that the headquarters will have 150 employees to start out and grow from there.
Founded in 1994 in Hampshire, Chineham, England, Shire focuses primarily on four therapeutic areas: central nervous system disorders, metabolic diseases, cancer and gastroenterology. Shire generated revenue of $1.2 billion last year, up from $1 billion in 2002. Sphere: Related Content
KKR Circling Sainsbury's
The Observer - April 5, 2004
Kohlberg Kravis Roberts, the US leveraged buyout firm dubbed 'barbarians' for the aggressive deal-making that symbolised Wall Street in the Eighties, is stalking beleaguered J Sainsbury. Sources close to the New-York based company confirmed strong interest in an audacious raid on Britain's third biggest supermarket. Last Thursday KKR asked investors for $3bn to finance more European takeovers.
City consensus says that the Sainsbury family, which controls 38 per cent of the shares, would sell, having sucked out more than £100 million in dividends from the company in the last year. 'A bid is going to be a year away. They're in the paddock. They read how much cash has been taken out of the business. They see that the family is a bit wobbly,' said a well-placed source. It is not known whether KKR has made any approaches to the family or other institutional shareholders at this stage.
A bid would have to be pitched above £6 billion. It is likely that Archie Norman, the former Asda boss and a consultant to KKR, would lead new management at Sainsbury's. New owners would sell and lease back its lucrative property portfolio to repay debt and take out cash in dividends.
Sphere: Related Content
Kohlberg Kravis Roberts, the US leveraged buyout firm dubbed 'barbarians' for the aggressive deal-making that symbolised Wall Street in the Eighties, is stalking beleaguered J Sainsbury. Sources close to the New-York based company confirmed strong interest in an audacious raid on Britain's third biggest supermarket. Last Thursday KKR asked investors for $3bn to finance more European takeovers.
City consensus says that the Sainsbury family, which controls 38 per cent of the shares, would sell, having sucked out more than £100 million in dividends from the company in the last year. 'A bid is going to be a year away. They're in the paddock. They read how much cash has been taken out of the business. They see that the family is a bit wobbly,' said a well-placed source. It is not known whether KKR has made any approaches to the family or other institutional shareholders at this stage.
A bid would have to be pitched above £6 billion. It is likely that Archie Norman, the former Asda boss and a consultant to KKR, would lead new management at Sainsbury's. New owners would sell and lease back its lucrative property portfolio to repay debt and take out cash in dividends.
Sphere: Related Content
Nordea Bank in 775 Million Euro Sale Leaseback of HQ Properties in Sweeden
Moodys.com - April 1, 2004
Nordea Bank is close to closing a 775 million Euro sale leaseback / securiization transaction involving four of Nordea Bank’s Scandinavian head office complexes. The four leases will be drafted as a "bondable" triple-net leases with a term of twenty-five years, with three extension options, two of ten years each, and a third of five years. Two of the complexes are in Stockholm and one each in Oslo and Helsinki.
The new lessees will be wholly-owned subsidiaries of Nordea Bank AB (Aa3, P-1), Nordea Bank Norge ASA (Aa3, P-1) and Nordea Bank Finland Abp (Aa3, P-1), respectively. The properties form the main corporate headquarters of the three Nordea Bank Entity parents. The majority of value of the underlying collateral is attributable to the two Stockholm properties. The properties are located in the most prime area of the City and Stockholm is considered the strongest of the Scandinavian Centres, both from a macro-economic and a creditor rights perspective.
Geographic Diversity: [68.4%] Sweden, [13.7%] Finland, [17.9%] Norway based on Moody’s Stabilised Vacant Possession Value. Opening LTV (VP): 190% Moody’s Stabilised Vacant Possession Value. Sphere: Related Content
Nordea Bank is close to closing a 775 million Euro sale leaseback / securiization transaction involving four of Nordea Bank’s Scandinavian head office complexes. The four leases will be drafted as a "bondable" triple-net leases with a term of twenty-five years, with three extension options, two of ten years each, and a third of five years. Two of the complexes are in Stockholm and one each in Oslo and Helsinki.
The new lessees will be wholly-owned subsidiaries of Nordea Bank AB (Aa3, P-1), Nordea Bank Norge ASA (Aa3, P-1) and Nordea Bank Finland Abp (Aa3, P-1), respectively. The properties form the main corporate headquarters of the three Nordea Bank Entity parents. The majority of value of the underlying collateral is attributable to the two Stockholm properties. The properties are located in the most prime area of the City and Stockholm is considered the strongest of the Scandinavian Centres, both from a macro-economic and a creditor rights perspective.
Geographic Diversity: [68.4%] Sweden, [13.7%] Finland, [17.9%] Norway based on Moody’s Stabilised Vacant Possession Value. Opening LTV (VP): 190% Moody’s Stabilised Vacant Possession Value. Sphere: Related Content
N. Ireland Govt Considering £1 Billion Sale Leaseback
Telegraph - March 27, 2004
The Government of Northern Ireland is considering an estimated £1billion in a sale and leaseback deal that will see the outsourcing of the management of its entire Northern Ireland estate. The secretary of State for Northern Ireland has been instructed to push ahead with plans to transfer all its freeholds and lease liabilities to a private-sector partner according to property magazine, Estates Gazette .
The estate totals more than 3m sq ft of Northern Ireland Civil Service accommodation and includes the Stormont estate, outside Belfast. Northern Ireland's department of finance and personnel, which is responsible for the project, is appointing financial advisers to finalise a strategy for the estate, which could favour a piecemeal sale of chunks of property. Property outsourcing specialists Mapeley and Land Securities Trilliam are uderstood to be interested in the deal. Sphere: Related Content
The Government of Northern Ireland is considering an estimated £1billion in a sale and leaseback deal that will see the outsourcing of the management of its entire Northern Ireland estate. The secretary of State for Northern Ireland has been instructed to push ahead with plans to transfer all its freeholds and lease liabilities to a private-sector partner according to property magazine, Estates Gazette .
The estate totals more than 3m sq ft of Northern Ireland Civil Service accommodation and includes the Stormont estate, outside Belfast. Northern Ireland's department of finance and personnel, which is responsible for the project, is appointing financial advisers to finalise a strategy for the estate, which could favour a piecemeal sale of chunks of property. Property outsourcing specialists Mapeley and Land Securities Trilliam are uderstood to be interested in the deal. Sphere: Related Content
Sunday, April 04, 2004
Metro Completes €700 Million Sale Leaseback of 28 Stores in Poland
Globes Online - March 28, 2004
12 Israeli investors are participating in a huge real estate deal, in which Apollo Real Estate Advisors LP and Rida Development Corp. are buying 28 German-owned Metro shopping malls in Poland for €700 million ($860 million). The Israeli investors include Israel Phoenix Assurance (TASE:PHOE1; PHOE5), Hadar Insurance and Profimex (Israel) general manager Elchanan Rosenheim, Apollo Real Estate representative in Israel.
Metro is selling shopping malls with an aggregate space of 600,000 sq.m. in six cities, including Warsaw, Krakow, Poznan, and Lodz. Metro has committed to leasing back most of the space in 20-year contracts, since its hypermarkets anchor most of the shopping malls. The rest of the space is leased to other stores in long-term contracts. The pretax return for the investors, after expenses, will be 19.8%. Some of the malls have land for future building. Metro is one of the largest supermarket chains in the world, with 2,500 supermarkets across Europe.
The €700 million investment in a project of this kind in a single country is above Apollo Real Estate's permitted ceiling as pledged to its investors. The investment was therefore split, with Apollo Real Estate and Rida investing €350 million, and €350 million being invested directly by Apollo Real Estate's investors. The 12 Israeli investors accepted the offer and will invest directly in the project. Sphere: Related Content
12 Israeli investors are participating in a huge real estate deal, in which Apollo Real Estate Advisors LP and Rida Development Corp. are buying 28 German-owned Metro shopping malls in Poland for €700 million ($860 million). The Israeli investors include Israel Phoenix Assurance (TASE:PHOE1; PHOE5), Hadar Insurance and Profimex (Israel) general manager Elchanan Rosenheim, Apollo Real Estate representative in Israel.
Metro is selling shopping malls with an aggregate space of 600,000 sq.m. in six cities, including Warsaw, Krakow, Poznan, and Lodz. Metro has committed to leasing back most of the space in 20-year contracts, since its hypermarkets anchor most of the shopping malls. The rest of the space is leased to other stores in long-term contracts. The pretax return for the investors, after expenses, will be 19.8%. Some of the malls have land for future building. Metro is one of the largest supermarket chains in the world, with 2,500 supermarkets across Europe.
The €700 million investment in a project of this kind in a single country is above Apollo Real Estate's permitted ceiling as pledged to its investors. The investment was therefore split, with Apollo Real Estate and Rida investing €350 million, and €350 million being invested directly by Apollo Real Estate's investors. The 12 Israeli investors accepted the offer and will invest directly in the project. Sphere: Related Content
Boulder Group Releases Report on Net Lease Restaurant Market
The Boulder Group - April 1, 2004
The Boulder Group has released its most recent quarterly research report on the US net leased investment property market. The report, entitled "The Net Lease Restaurant Market" provides vital statistics on the restaurant segment of the net leased market. As of March 19, 2004, The Boulder Group is tracking 684 available net leased restaurant properties with a combined value of $1.25 billion in 38 states. The restaurant properties included in their survey have a mean selling price of $1,610,000, or $840,000 less than the retail sector as per the The Boulder Group National Report. Additionally, Restaurant Properties mean CAP Rate of 8% is 51 basis points lower than the national retail mean because they are attractive to a larger group of people. The report identified over 100 different restaurant chains that have properties available for sale. Sphere: Related Content
The Boulder Group has released its most recent quarterly research report on the US net leased investment property market. The report, entitled "The Net Lease Restaurant Market" provides vital statistics on the restaurant segment of the net leased market. As of March 19, 2004, The Boulder Group is tracking 684 available net leased restaurant properties with a combined value of $1.25 billion in 38 states. The restaurant properties included in their survey have a mean selling price of $1,610,000, or $840,000 less than the retail sector as per the The Boulder Group National Report. Additionally, Restaurant Properties mean CAP Rate of 8% is 51 basis points lower than the national retail mean because they are attractive to a larger group of people. The report identified over 100 different restaurant chains that have properties available for sale. Sphere: Related Content
Bankruptcy Court Reclassifies $248 Million in United Airlines Facility Lease Deals as Financings
BUSINESS WIRE - March 31, 2004
Fitch Ratings believes that yesterday's court decisions in the United Airlines' (United) bankruptcy proceedings regarding the treatment of the carrier's special facility bonds sets a troubling precedent which may weaken security provisions behind certain municipal leased-backed bonds, but potentially strengthen bondholder security on other lease structures and provide guidance for structuring future transactions as true leases. The ruling came in response to a motion filed by United in which the airline asked the bankruptcy court to determine if certain special facility bonds issued on the airline's behalf constituted a true lease subject to the provisions of Section 365 of the United States Bankruptcy Code, or instead were 'disguised financings' that should be treated by the court as unsecured debt of the airline.
The case involved five series of bonds issued to construct various facilities for the airline at four airports - Denver International (DEN), Los Angeles International (LAX), San Francisco International (SFO), and New York John F. Kennedy International (JFK) - totaling $510 million. The decision rendered yesterday does not address a second case that remains pending before the bankruptcy court regarding approximately $601.3 million in special facility bonds issued by the City of Chicago for United facilities at O'Hare International Airport.
As a result of this decision, bondholders in these four transactions may rank as unsecured creditors in the bankruptcy proceedings. Recoveries on unsecured claims, which rank near the bottom of the priority list under bankruptcy rules, are determined through the plan of reorganization approved by the bankruptcy court. Historically, recovery for unsecured creditors in airline bankruptcies is well below the value of their claims against the bankrupt's estate. For example, US Airways estimated unsecured creditors would receive stock and warrants in the reorganized company valued between 1.2% and 1.8% of their allowed claims when that airline emerged from bankruptcy in March 2003. However, United will maintain access to the facilities financed by these four transactions, provided it assumes the underlying leases with the airport sponsor.
Sphere: Related Content
Fitch Ratings believes that yesterday's court decisions in the United Airlines' (United) bankruptcy proceedings regarding the treatment of the carrier's special facility bonds sets a troubling precedent which may weaken security provisions behind certain municipal leased-backed bonds, but potentially strengthen bondholder security on other lease structures and provide guidance for structuring future transactions as true leases. The ruling came in response to a motion filed by United in which the airline asked the bankruptcy court to determine if certain special facility bonds issued on the airline's behalf constituted a true lease subject to the provisions of Section 365 of the United States Bankruptcy Code, or instead were 'disguised financings' that should be treated by the court as unsecured debt of the airline.
The case involved five series of bonds issued to construct various facilities for the airline at four airports - Denver International (DEN), Los Angeles International (LAX), San Francisco International (SFO), and New York John F. Kennedy International (JFK) - totaling $510 million. The decision rendered yesterday does not address a second case that remains pending before the bankruptcy court regarding approximately $601.3 million in special facility bonds issued by the City of Chicago for United facilities at O'Hare International Airport.
As a result of this decision, bondholders in these four transactions may rank as unsecured creditors in the bankruptcy proceedings. Recoveries on unsecured claims, which rank near the bottom of the priority list under bankruptcy rules, are determined through the plan of reorganization approved by the bankruptcy court. Historically, recovery for unsecured creditors in airline bankruptcies is well below the value of their claims against the bankrupt's estate. For example, US Airways estimated unsecured creditors would receive stock and warrants in the reorganized company valued between 1.2% and 1.8% of their allowed claims when that airline emerged from bankruptcy in March 2003. However, United will maintain access to the facilities financed by these four transactions, provided it assumes the underlying leases with the airport sponsor.
Sphere: Related Content
Saturday, March 27, 2004
Land Securities Sells London Qualifications Board HQ for £42.5 Million
Freeman News - March 26, 2004
Land Securities has sold its interest in 190 High Holborn to a private investor for £42.5m. The 83,000 sq ft building is let to the London Qualifications Board on a 20-year lease with fixed uplifts every five years. The building generates around £2.52m a year in rent, equating to an initial yield of 5.95%.
LandSec acquired the building, formerly known as Enterprise House, from Compaq back in 2001. The company then undertook a comprehensive refurbishment of the building, which was completed in April 2002. King Sturge acted for LandSec. Velleman & Co represented the purchaser. Sphere: Related Content
Land Securities has sold its interest in 190 High Holborn to a private investor for £42.5m. The 83,000 sq ft building is let to the London Qualifications Board on a 20-year lease with fixed uplifts every five years. The building generates around £2.52m a year in rent, equating to an initial yield of 5.95%.
LandSec acquired the building, formerly known as Enterprise House, from Compaq back in 2001. The company then undertook a comprehensive refurbishment of the building, which was completed in April 2002. King Sturge acted for LandSec. Velleman & Co represented the purchaser. Sphere: Related Content
Boots Pursuing GBP 1 billion Sale Leaseback of Drug Store Portfolio?
Telegraph - March 27, 2004
UK Retailing giant Boots has warned investors that next year's profits will be hit by a larger-than-expected store investment program and rising pension charges. Boots, which has 1,400 drug stores in the UK, disclosed margins had fallen 30 basis points as the group has struggled to compete against supermarkets.
At their recent press briefing Richard Baker, who has been the chief executive of Boots for six months, refused to dismiss rumours of plans for a GBP 1 billion sale and leaseback of the group's freehold property: "We are not commenting on that at all." Sphere: Related Content
UK Retailing giant Boots has warned investors that next year's profits will be hit by a larger-than-expected store investment program and rising pension charges. Boots, which has 1,400 drug stores in the UK, disclosed margins had fallen 30 basis points as the group has struggled to compete against supermarkets.
At their recent press briefing Richard Baker, who has been the chief executive of Boots for six months, refused to dismiss rumours of plans for a GBP 1 billion sale and leaseback of the group's freehold property: "We are not commenting on that at all." Sphere: Related Content
Lexington REIT Acquires Baker Hughes Portfolio for $119.3 Million
PR Newswire - March 25, 2004
Lexington Corporate Properties Trust (NYSE: LXP), a real estate investment trust, today announced that it has acquired four properties in the Houston, Texas area from Dana Commercial Credit Corp for $119.3 million. The properties are net leased to Baker Hughes, Inc. (NYSE: BHI) and are occupied by various subsidiaries of Baker Hughes, Inc. under leases that each have approximately 11.5 years remaining.
The portfolio has a combined total of 1,061,471 square feet of net rentable area consisting of office, research and development and manufacturing space and includes the WesternGeophisical World Headquarters building (Houston, TX), the Hughes Christensen World Headquarters building, the Baker Petrolite World Headquarters building, and the Baker Hughes Worldwide Training/Worldwide Data Facility.
The average annual lease payments during the lease terms are $13.2 million, or 11.1% of the purchase price. The acquired properties are encumbered by non-recourse first mortgages with a current balance of approximately $110.7 million. The mortgage debt bears interest at a fixed rate of 8.04% and matures in September, 2015. Sphere: Related Content
Lexington Corporate Properties Trust (NYSE: LXP), a real estate investment trust, today announced that it has acquired four properties in the Houston, Texas area from Dana Commercial Credit Corp for $119.3 million. The properties are net leased to Baker Hughes, Inc. (NYSE: BHI) and are occupied by various subsidiaries of Baker Hughes, Inc. under leases that each have approximately 11.5 years remaining.
The portfolio has a combined total of 1,061,471 square feet of net rentable area consisting of office, research and development and manufacturing space and includes the WesternGeophisical World Headquarters building (Houston, TX), the Hughes Christensen World Headquarters building, the Baker Petrolite World Headquarters building, and the Baker Hughes Worldwide Training/Worldwide Data Facility.
The average annual lease payments during the lease terms are $13.2 million, or 11.1% of the purchase price. The acquired properties are encumbered by non-recourse first mortgages with a current balance of approximately $110.7 million. The mortgage debt bears interest at a fixed rate of 8.04% and matures in September, 2015. Sphere: Related Content
Moody's May Downgrade GBP 431 Million In Sainsbury Leaseback Bonds
Reuters.com - March 26, 2004
Moody's Investors Service has placed the A3 rating of the GBP 331,119,309 Secured Bonds due 2023 issued by Highbury Finance B.V. on review for possible downgrade. Moody's also placed the A3 rating of the GBP 100,677,717 Class A Floating Rate Notes due 2023 and the A3 rating of the GBP 30,000,000 Class B Floating Rate Notes due 2023 issued by Dragon Finance B.V. on review for possible downgrade.
The news comes the same day Sainsbury announced it was selling off its US supermarkets business for £1.3bn. The 202 stores, trading as Shaw’s Supermarkets, located in several New England states will be sold to US market rival Albertsons Inc., netting the UK food retailer a post-tax profit of more than £225m.
The rating review is prompted by Moody's decision to review for possible downgrade the A3 rating of J Sainsbury PLC's senior long-term debt. Moody's A3 rating on the Highbury Finance B.V. Secured Bonds is principally based on the strength of Sainsbury as lessee and guarantor.
The Dragon Finance securitisation represents a 23-year sale and leaseback transaction of 10 supermarket sites to Sainsbury, the UK retailer. The Highbury Finance securitisation represents a 23-year sale and leaseback transaction of 16 supermarket sites to Sainsbury. Sphere: Related Content
Moody's Investors Service has placed the A3 rating of the GBP 331,119,309 Secured Bonds due 2023 issued by Highbury Finance B.V. on review for possible downgrade. Moody's also placed the A3 rating of the GBP 100,677,717 Class A Floating Rate Notes due 2023 and the A3 rating of the GBP 30,000,000 Class B Floating Rate Notes due 2023 issued by Dragon Finance B.V. on review for possible downgrade.
The news comes the same day Sainsbury announced it was selling off its US supermarkets business for £1.3bn. The 202 stores, trading as Shaw’s Supermarkets, located in several New England states will be sold to US market rival Albertsons Inc., netting the UK food retailer a post-tax profit of more than £225m.
The rating review is prompted by Moody's decision to review for possible downgrade the A3 rating of J Sainsbury PLC's senior long-term debt. Moody's A3 rating on the Highbury Finance B.V. Secured Bonds is principally based on the strength of Sainsbury as lessee and guarantor.
The Dragon Finance securitisation represents a 23-year sale and leaseback transaction of 10 supermarket sites to Sainsbury, the UK retailer. The Highbury Finance securitisation represents a 23-year sale and leaseback transaction of 16 supermarket sites to Sainsbury. Sphere: Related Content
Tuesday, March 23, 2004
Realty Income to Acquire 112 Circle K Convenience Stores for $100.5 Million
ESCONDIDO, CA - BUSINESS WIRE - March 16, 2004
Realty Income Corp. (NYSE:O) announced today that it has signed a definitive agreement to acquire 112 Circle K-branded convenience stores, under long-term, net-lease agreements, from Alimentation Couche-Tard Inc. (Toronto:ATDb.TO), for approximately $100.5 million. It is anticipated that the transaction will close shortly.
Realty Income will acquire the 112 properties under 15 to 17-year, triple-net lease agreements. The stores have, on average, approximately 2,780 leasable square feet and are situated on an average lot size of 1.0 acre. Each location has, on average, 3.4 multi-pump gasoline dispensers and the stores within the acquired property portfolio are seasoned units with an average operating history of 16 years. The average purchase price for each property will be approximately $897,000. The 112 properties are located in 9 states including 41 properties in Florida (primarily Tampa, Orlando, Fort Myers and Naples MSA), 38 in Arizona (primarily Phoenix and Tucson MSA), 8 each in South Carolina and Louisiana, 7 in North Carolina, 3 each in Alabama and Mississippi, and 2 each in Georgia and New Mexico.
The company further disclosed that it plans to hold approximately $92.3 million of the properties in its core portfolio as long-term investments and will place approximately $8.2 million of the properties in its Crest Net Lease Inc. subsidiary for future sale. After the sale of the Crest Net Lease properties, the company anticipates that Alimentation Couche-Tard will generate approximately 4.84% of its annual revenue.
Alimentation Couche-Tard Inc. is the leader in the Canadian convenience store industry and the 4th largest convenience store operator in North America. The company is based in Laval, Quebec, Canada and operates a network of approximately 4,800 stores, of which approximately 2,700 are located in the United States. The company acquired Circle K, including 2,290 U.S. stores, from Conoco Phillips (NYSE:COP) on December 17, 2003. Sphere: Related Content
Realty Income Corp. (NYSE:O) announced today that it has signed a definitive agreement to acquire 112 Circle K-branded convenience stores, under long-term, net-lease agreements, from Alimentation Couche-Tard Inc. (Toronto:ATDb.TO), for approximately $100.5 million. It is anticipated that the transaction will close shortly.
Realty Income will acquire the 112 properties under 15 to 17-year, triple-net lease agreements. The stores have, on average, approximately 2,780 leasable square feet and are situated on an average lot size of 1.0 acre. Each location has, on average, 3.4 multi-pump gasoline dispensers and the stores within the acquired property portfolio are seasoned units with an average operating history of 16 years. The average purchase price for each property will be approximately $897,000. The 112 properties are located in 9 states including 41 properties in Florida (primarily Tampa, Orlando, Fort Myers and Naples MSA), 38 in Arizona (primarily Phoenix and Tucson MSA), 8 each in South Carolina and Louisiana, 7 in North Carolina, 3 each in Alabama and Mississippi, and 2 each in Georgia and New Mexico.
The company further disclosed that it plans to hold approximately $92.3 million of the properties in its core portfolio as long-term investments and will place approximately $8.2 million of the properties in its Crest Net Lease Inc. subsidiary for future sale. After the sale of the Crest Net Lease properties, the company anticipates that Alimentation Couche-Tard will generate approximately 4.84% of its annual revenue.
Alimentation Couche-Tard Inc. is the leader in the Canadian convenience store industry and the 4th largest convenience store operator in North America. The company is based in Laval, Quebec, Canada and operates a network of approximately 4,800 stores, of which approximately 2,700 are located in the United States. The company acquired Circle K, including 2,290 U.S. stores, from Conoco Phillips (NYSE:COP) on December 17, 2003. Sphere: Related Content
Former Reebok HQ near Boston Sold for $38.1 Million
The Enterprise at SouthofBoston.com - March 23, 2004
A California investment firm paid $38.1 million for the former Reebok headquarters at 100 Technology Drive. Currently occupied by the Stone & Webster engineering firm, the building was built in 1988 to be the headquarters for sneaker-maker Reebok. Stone & Webster's long-term lease of the entire building made it an attractive investment, said Richard Herlihy, senior director of financial services at Cushman & Wakefield of Massachusetts, which handled the transaction.
Herlihy said the building was on the market for a month and his company received 18 offers from real estate investment firms. The winning bid came from Global Innovation Partners LLC, a California-based private equity investment firm that specializes in technology-related property. The $193-per-square-foot selling price is one of the highest in recent years, Herlihy said. Herlihy said Stone & Webster has 10 years left on its lease.
Sphere: Related Content
A California investment firm paid $38.1 million for the former Reebok headquarters at 100 Technology Drive. Currently occupied by the Stone & Webster engineering firm, the building was built in 1988 to be the headquarters for sneaker-maker Reebok. Stone & Webster's long-term lease of the entire building made it an attractive investment, said Richard Herlihy, senior director of financial services at Cushman & Wakefield of Massachusetts, which handled the transaction.
Herlihy said the building was on the market for a month and his company received 18 offers from real estate investment firms. The winning bid came from Global Innovation Partners LLC, a California-based private equity investment firm that specializes in technology-related property. The $193-per-square-foot selling price is one of the highest in recent years, Herlihy said. Herlihy said Stone & Webster has 10 years left on its lease.
Sphere: Related Content
Tesco Raises £650 Million in 33 Store Sale Leaseback
The Guardian - March 23, 2004
Tesco yesterday raised more cash for acquisitions by selling off 33 of its UK stores for £650m. The stores, which range in size, have been sold to a joint venture that is half owned by Tesco and real estate firm Topland. Tesco has also sold two distribution centres in the deal. Tesco's £650m cash will come from issuing bond debt, which will be secured on the rent that it will begin to pay for the properties. Tesco will rent the stores on a long leasehold and carry on running the operations, so customers will not see any change.
Topland, run by Israeli-born brothers Sol and Eddie Zakay, has done similar sale and leaseback deals with retailers Marks & Spencer, Littlewoods and Budgens.
Tesco will use the extra cash for expansion in the UK market, where it is the dominant force in retailing, or for more acquisitions overseas.
The supermarket firm raised £773m in January by selling new shares to investors. A small chunk of this cash was used to buy Adminstore, which owns the Europa convenience stores. A source at Tesco said that it could use its combined £1.4bn in cash to buy up some of the 52 Safeway stores that are on the market after its takeover by Wm Morrison. However, the firm is keenly watched by competition regulators as it has such a strong position in the British market. Tesco could also use the cash to convert more of its stores into the large "hypermarket" format where non-food ranges such as clothes, CDs and homewares are sold alongside food.
The 35 properties being sold make up about 5% of Tesco's total property assets. It has done similar sale and leaseback schemes on a smaller scale, including 21 stores with UK property group British Land and two properties with Slough Estates. Sale and leaseback schemes mean a company effectively raises debt but does not have to put it on its balance sheet.
Sphere: Related Content
Tesco yesterday raised more cash for acquisitions by selling off 33 of its UK stores for £650m. The stores, which range in size, have been sold to a joint venture that is half owned by Tesco and real estate firm Topland. Tesco has also sold two distribution centres in the deal. Tesco's £650m cash will come from issuing bond debt, which will be secured on the rent that it will begin to pay for the properties. Tesco will rent the stores on a long leasehold and carry on running the operations, so customers will not see any change.
Topland, run by Israeli-born brothers Sol and Eddie Zakay, has done similar sale and leaseback deals with retailers Marks & Spencer, Littlewoods and Budgens.
Tesco will use the extra cash for expansion in the UK market, where it is the dominant force in retailing, or for more acquisitions overseas.
The supermarket firm raised £773m in January by selling new shares to investors. A small chunk of this cash was used to buy Adminstore, which owns the Europa convenience stores. A source at Tesco said that it could use its combined £1.4bn in cash to buy up some of the 52 Safeway stores that are on the market after its takeover by Wm Morrison. However, the firm is keenly watched by competition regulators as it has such a strong position in the British market. Tesco could also use the cash to convert more of its stores into the large "hypermarket" format where non-food ranges such as clothes, CDs and homewares are sold alongside food.
The 35 properties being sold make up about 5% of Tesco's total property assets. It has done similar sale and leaseback schemes on a smaller scale, including 21 stores with UK property group British Land and two properties with Slough Estates. Sale and leaseback schemes mean a company effectively raises debt but does not have to put it on its balance sheet.
Sphere: Related Content
Italy's Largest Utility Agrees to $1.73 billion Sale Leaseback of Property Portfolio
Bloomberg.com: Germany - March 19, 2004
Enel SpA, Italy's biggest utility, agreed to sell most of its real estate holdings to a Deutsche Bank AG-led group for 1.4 billion euros ($1.73 billion) to reduce debt and focus on its electricity and gas businesses. Deutsche Bank, Europe's second-biggest bank by assets, and French money manager CDC Ixis will buy 887 properties, Rome-based Enel said in a faxed statement. Enel expects to record a pretax gain of 200 million euros from the sale.
Enel, Europe's fourth-biggest power producer, has a market value of 37.2 billion euros. Enel debt is rated A1 at Moody's Investors Service and A+ at Standard & Poor's Corp., the fifth-highest level. Both ratings companies have a negative outlook on their rankings. The difference between the yield on the notes and that of similarly dated government debt is 19 basis points, little changed from six months ago.
State-controlled Enel cut the amount of property offered for sale after rejecting a 1.7 billion-euro offer from Deutsche Bank and CDC for all of its real estate holdings, the Italian newspaper MF reported in January. Enel said today it transferred 335 properties valued at 380 million euros to another of its property units. Deutsche Bank and CDC have until April 30 to sign the purchase contract, Enel said. The two companies submitted the only bid for the property in November. Two other potential buyers couldn't agree on the terms under which Enel would rent some of the assets. Pirelli & C. Real Estate SpA, Italy's biggest property manager, has said it may buy some of the assets from Deutsche Bank and CDC for as much as 200 million euros.
CDC is a unit of Caisse des Depots et Consignations, France's biggest financial institution, and manages pension funds for government employees. Deutsche Bank is making the purchase through its DB Real Estate Management unit, Enel said.
Cost Savings
Enel plans to use the cash from the sale to reduce debt, which stood at 24.3 billion euros at the end of last year. The agreement will allow Enel to save 20 million euros a year by cutting debt and interest payments, and renting back some of the properties will reduce maintenance costs. Enel follows Italian companies such as Telecom Italia SpA, the nation's biggest telephone company, and Eni SpA, Europe's fourth-biggest oil producer, in selling property. Buyers have included Pirelli Real Estate and the property funds of Morgan Stanley and Goldman Sachs Group Inc.
Italian Trend
Italian companies have sold property valued at $13.1 billion in the past four years, according to Bloomberg data. Shares of Pirelli Real Estate have advanced 65 percent in the past year, and Beni Stabili SpA, Italy's second-biggest property manager, has climbed 53 percent. A Bloomberg index of 104 European property companies has jumped 61 percent in the period.
Enel and Deutsche Bank formed a property joint venture in 2000, when former Chief Executive Franco Tato was seeking to expand in such areas. Deutsche Bank bought Enel's share of the venture two years later. The Italian utility put its Enel Real Estate unit up for sale in 2002. At the time, the business had a book value of 2.6 billion euros, included a car-rental subsidiary and employed 1,128 people. It had 3 million square meters of industrial real estate and 1.1 million square meters of residential properties.
Citigroup Inc. and Lazard LLC advised Enel on the sale.
Sphere: Related Content
Enel SpA, Italy's biggest utility, agreed to sell most of its real estate holdings to a Deutsche Bank AG-led group for 1.4 billion euros ($1.73 billion) to reduce debt and focus on its electricity and gas businesses. Deutsche Bank, Europe's second-biggest bank by assets, and French money manager CDC Ixis will buy 887 properties, Rome-based Enel said in a faxed statement. Enel expects to record a pretax gain of 200 million euros from the sale.
Enel, Europe's fourth-biggest power producer, has a market value of 37.2 billion euros. Enel debt is rated A1 at Moody's Investors Service and A+ at Standard & Poor's Corp., the fifth-highest level. Both ratings companies have a negative outlook on their rankings. The difference between the yield on the notes and that of similarly dated government debt is 19 basis points, little changed from six months ago.
State-controlled Enel cut the amount of property offered for sale after rejecting a 1.7 billion-euro offer from Deutsche Bank and CDC for all of its real estate holdings, the Italian newspaper MF reported in January. Enel said today it transferred 335 properties valued at 380 million euros to another of its property units. Deutsche Bank and CDC have until April 30 to sign the purchase contract, Enel said. The two companies submitted the only bid for the property in November. Two other potential buyers couldn't agree on the terms under which Enel would rent some of the assets. Pirelli & C. Real Estate SpA, Italy's biggest property manager, has said it may buy some of the assets from Deutsche Bank and CDC for as much as 200 million euros.
CDC is a unit of Caisse des Depots et Consignations, France's biggest financial institution, and manages pension funds for government employees. Deutsche Bank is making the purchase through its DB Real Estate Management unit, Enel said.
Cost Savings
Enel plans to use the cash from the sale to reduce debt, which stood at 24.3 billion euros at the end of last year. The agreement will allow Enel to save 20 million euros a year by cutting debt and interest payments, and renting back some of the properties will reduce maintenance costs. Enel follows Italian companies such as Telecom Italia SpA, the nation's biggest telephone company, and Eni SpA, Europe's fourth-biggest oil producer, in selling property. Buyers have included Pirelli Real Estate and the property funds of Morgan Stanley and Goldman Sachs Group Inc.
Italian Trend
Italian companies have sold property valued at $13.1 billion in the past four years, according to Bloomberg data. Shares of Pirelli Real Estate have advanced 65 percent in the past year, and Beni Stabili SpA, Italy's second-biggest property manager, has climbed 53 percent. A Bloomberg index of 104 European property companies has jumped 61 percent in the period.
Enel and Deutsche Bank formed a property joint venture in 2000, when former Chief Executive Franco Tato was seeking to expand in such areas. Deutsche Bank bought Enel's share of the venture two years later. The Italian utility put its Enel Real Estate unit up for sale in 2002. At the time, the business had a book value of 2.6 billion euros, included a car-rental subsidiary and employed 1,128 people. It had 3 million square meters of industrial real estate and 1.1 million square meters of residential properties.
Citigroup Inc. and Lazard LLC advised Enel on the sale.
Sphere: Related Content
Sunday, March 21, 2004
Babcock & Brown bank seeks Australian listing
CBS MARKETWATCH - March 19, 2004
Babcock & Brown, the leasing and structured finance powerhouse, is reportedly considering an initial public offering within the next 12 months to raise capital to fund its increasing interest in principal investing. Set up in the 1970s by two American tax lawyers, the San Francisco-based bank was a pioneer of leveraged leasing, a method of financing it initially used in the airline industry in particular. Now present in more than 20 countries, it has since established a reputation as a specialist project and structured financing operation.
The listing in Sydney of a niche but well-regarded international financial group would be a coup for the ASX and a boost to government efforts to promote the city as a global financial centre. Only three years ago at the height of the tech boom, Australia was pilloried as an 'old economy' and it feared its capital markets would be marginalised.
Rob Topfer, one of the group's Sydney-based directors, said the bank was considering a listing in Australia, which accounts for up to 30 per cent of its revenues, because its local operations had the greatest need for capital within the group and because the funds would be used to support the expansion internationally of the business model it had developed locally in the past five years.
The bank has increasingly been using its balance sheet to make its own investments. It then either finds partners for the assets or houses them in an investment fund such as Prime Infrastructure, its Australian-listed vehicle.
An IPO will also enable the bank, which operates as a limited partnership and has about 45 directors, to offer share options and a more liquid investment to staff. At present it is 80 per cent owned by staff following the sale of a 20 per cent stake to HypoVereinsbank, the German bank, in 1999, for $120m. Babcock & Brown would become one of only a handful of US-based groups, to list in Australia. With the exception of News Corporation, the US-Australian media giant, the other US companies are mainly small operators in the IT and biotechnology sectors. Sphere: Related Content
Babcock & Brown, the leasing and structured finance powerhouse, is reportedly considering an initial public offering within the next 12 months to raise capital to fund its increasing interest in principal investing. Set up in the 1970s by two American tax lawyers, the San Francisco-based bank was a pioneer of leveraged leasing, a method of financing it initially used in the airline industry in particular. Now present in more than 20 countries, it has since established a reputation as a specialist project and structured financing operation.
The listing in Sydney of a niche but well-regarded international financial group would be a coup for the ASX and a boost to government efforts to promote the city as a global financial centre. Only three years ago at the height of the tech boom, Australia was pilloried as an 'old economy' and it feared its capital markets would be marginalised.
Rob Topfer, one of the group's Sydney-based directors, said the bank was considering a listing in Australia, which accounts for up to 30 per cent of its revenues, because its local operations had the greatest need for capital within the group and because the funds would be used to support the expansion internationally of the business model it had developed locally in the past five years.
The bank has increasingly been using its balance sheet to make its own investments. It then either finds partners for the assets or houses them in an investment fund such as Prime Infrastructure, its Australian-listed vehicle.
An IPO will also enable the bank, which operates as a limited partnership and has about 45 directors, to offer share options and a more liquid investment to staff. At present it is 80 per cent owned by staff following the sale of a 20 per cent stake to HypoVereinsbank, the German bank, in 1999, for $120m. Babcock & Brown would become one of only a handful of US-based groups, to list in Australia. With the exception of News Corporation, the US-Australian media giant, the other US companies are mainly small operators in the IT and biotechnology sectors. Sphere: Related Content
Bentley Forbes Acquires US HQ of PHH Arval for $42 Million
BALTIMORE, MD - BUSINESS WIRE - March 18, 2004
BentleyForbes, a Los Angeles-based national commercial real estate investment firm, has completed the $42 million acquisition of the United States Headquarters building for PHH Arval, one of nation's leading vehicle management service companies . The 216,000-square-foot, three-story, Class A office building is a campus-style, build-to-suit development completed in March 2004. BentleyForbes acquired the building at the completion of construction in a net lease acquisition that required the structuring of a long-term lease with the tenant and a sale agreement with the developer.
Located at 940 Ridgebrook Road in Sparks, Md., a township of Baltimore County, the office building is strategically located within easy reach of regional business markets and residential communities including Baltimore, the DC, DE, PA and VA.
BentleyForbes represented itself in the transaction. David Scheffenacker Jr. of Preston Partners, Inc. represented PHH Arval in the lease transaction and the developer, Highland Partners, in the sale. The building was designed and constructed by the project's general contractor, Opus East LLC.
Sphere: Related Content
BentleyForbes, a Los Angeles-based national commercial real estate investment firm, has completed the $42 million acquisition of the United States Headquarters building for PHH Arval, one of nation's leading vehicle management service companies . The 216,000-square-foot, three-story, Class A office building is a campus-style, build-to-suit development completed in March 2004. BentleyForbes acquired the building at the completion of construction in a net lease acquisition that required the structuring of a long-term lease with the tenant and a sale agreement with the developer.
Located at 940 Ridgebrook Road in Sparks, Md., a township of Baltimore County, the office building is strategically located within easy reach of regional business markets and residential communities including Baltimore, the DC, DE, PA and VA.
BentleyForbes represented itself in the transaction. David Scheffenacker Jr. of Preston Partners, Inc. represented PHH Arval in the lease transaction and the developer, Highland Partners, in the sale. The building was designed and constructed by the project's general contractor, Opus East LLC.
Sphere: Related Content
Friday, March 12, 2004
German Fund Buying Crate & Barrell Distribution Center for $44 Million
Real Estate Alert reports that Deka Immobilienfonds, a German operator of open-end funds has agreed to pay about $44 million, or $65/sf, for a two-building Crate & Barrel Distribution Center complex that breaks ground next month in Cranbury, NJ. The price would bring an initial yield of 6.5%. The property will consist of two distribution buildings, one of which is to include a 9,000-sf factory outlet store, as well as land zoned for an additional 275,000-sf building. Rockefeller Group Development, which is developing the park, is the seller.
Sphere: Related Content
Wachovia Flipping Pepco HQ in DC After Long Term Leaseback
Real Estate Alert reports that Wachovia is apparently flipping a single-tenant Washington office building it acquired in September. The bank is reportedly selling the 353,000-square-foot Edison Place at 701 Ninth Street NW to Brookfield Properties of Toronto for about $166 million, or $470/sf. Brookfield's initial annual yield would be about 5.8%.
Wachovia acquired the 10-story property just five months ago for $151 million, or $428/sf, for a cap rate of 6.4%. The seller was Potomac Capital Investment, a unit of Pepco, the Washington-area electric utility. Cassidy & Pinkard brokered the deal. Wachovia is not using a broker with the Brookfield transaction.
The building, which was constructed in 2001, is fully leased to a unit of Pepco, PHI Service, through 2025. It is estimated that PHI pays a triple-net rent of roughly $27/sf. The property consists of 329,000 sf of office space, 24,000 sf of street-level stores, a small amount of storage space and a 416-car underground garage.
Sphere: Related Content
Wachovia acquired the 10-story property just five months ago for $151 million, or $428/sf, for a cap rate of 6.4%. The seller was Potomac Capital Investment, a unit of Pepco, the Washington-area electric utility. Cassidy & Pinkard brokered the deal. Wachovia is not using a broker with the Brookfield transaction.
The building, which was constructed in 2001, is fully leased to a unit of Pepco, PHI Service, through 2025. It is estimated that PHI pays a triple-net rent of roughly $27/sf. The property consists of 329,000 sf of office space, 24,000 sf of street-level stores, a small amount of storage space and a 416-car underground garage.
Sphere: Related Content
Thursday, March 11, 2004
Spirit Group Agrees to £500m Sale leaseback of 220 UK Pub Portfolio
Freeman News - March 8, 2004
Tom Hunter's West Coast Capital is reported to have teamed up with Prestbury Investment Holdings and HBOS in order to buy a portfolio of 220 freehold pubs from Spirit Group, in a deal worth over £500m. Under the deal, which is expected to be finalised within the next week, the pubs will be let back to Spirit on leases of 30 years. Spirit is understood to be paying an initial rent of around £30m a year, with annual uplifts.
The bidding consortium successfully beat Rotch Property Group to the portfolio, plus a number of UK funds and other investors. Colliers CRE and Lazard are representing Spirit. Spirit became the biggest managed pub chain in the UK when it acquired Scottish & Newcastle Retail for £2.51bn last year. The portfolio for sale represents just 15% of Spirit's total estate, which includes around 2,500 pubs plus a number of restaurants and budget hotels.
Commenting on the deal, a source close to Spirit commented: "It releases cash to Spirit less than six months after it bought S&N. But it also leaves the group with a large amount of fixed assets for a future IPO. The analysts are likely to look favourably on the way Spirit has begun to make the portfolio work for itself." Last week, Spirit officially put its Premier Lodge chain of budget hotels up for sale with a price tag of around £500m. Sphere: Related Content
Tom Hunter's West Coast Capital is reported to have teamed up with Prestbury Investment Holdings and HBOS in order to buy a portfolio of 220 freehold pubs from Spirit Group, in a deal worth over £500m. Under the deal, which is expected to be finalised within the next week, the pubs will be let back to Spirit on leases of 30 years. Spirit is understood to be paying an initial rent of around £30m a year, with annual uplifts.
The bidding consortium successfully beat Rotch Property Group to the portfolio, plus a number of UK funds and other investors. Colliers CRE and Lazard are representing Spirit. Spirit became the biggest managed pub chain in the UK when it acquired Scottish & Newcastle Retail for £2.51bn last year. The portfolio for sale represents just 15% of Spirit's total estate, which includes around 2,500 pubs plus a number of restaurants and budget hotels.
Commenting on the deal, a source close to Spirit commented: "It releases cash to Spirit less than six months after it bought S&N. But it also leaves the group with a large amount of fixed assets for a future IPO. The analysts are likely to look favourably on the way Spirit has begun to make the portfolio work for itself." Last week, Spirit officially put its Premier Lodge chain of budget hotels up for sale with a price tag of around £500m. Sphere: Related Content
Willis Group Holdings Signs Long Term Lease for New 420,000 sq ft HQ in London
Freemans News - March 9, 2004
British Land has pre-let its 420,000 sq ft office scheme at 51 Lime Street, London EC3, to the global insurance broker, Willis Group Holdings. Designed by Foster and Partners, 51 Lime Street will be situated opposite the Lloyd's Underwriting Centre. British Land is undertaking the development in partnership with Stanhope, and the scheme is set for completion by the end of 2006 to meet Willis' requirements. Cushman & Wakefield Healey & Baker and DTZ advised British Land. ATIS REAL Weatheralls acted for Willis.
Sphere: Related Content
British Land has pre-let its 420,000 sq ft office scheme at 51 Lime Street, London EC3, to the global insurance broker, Willis Group Holdings. Designed by Foster and Partners, 51 Lime Street will be situated opposite the Lloyd's Underwriting Centre. British Land is undertaking the development in partnership with Stanhope, and the scheme is set for completion by the end of 2006 to meet Willis' requirements. Cushman & Wakefield Healey & Baker and DTZ advised British Land. ATIS REAL Weatheralls acted for Willis.
Sphere: Related Content
Rotch Acquires £260 Million Portfolio Net Leased to BAE Systems
Property Week - March 10, 2004
R20, the property investment vehicle of Robert Tchenguiz, announced today it has bought four buildings from Dana Commercial Credit. The purchase price is understood to be £260m. The buildings, adjacent to Farnborough Airport in Surrey, provide 255,000 sq ft (23,690 sq m) of office space, and are let to BAE Systems.
The properties give a combined rental income of $20.7m. At today's exchange rate, this equates to £11.37m, and the deal reflects a net initial yield of 4.4%. Robert Tchenguiz said: "The acquisition continues our strategy of investing in long-term, blue chip cashflows supported by high quality assets with a useful life well beyond expiry of the current leases" Sphere: Related Content
R20, the property investment vehicle of Robert Tchenguiz, announced today it has bought four buildings from Dana Commercial Credit. The purchase price is understood to be £260m. The buildings, adjacent to Farnborough Airport in Surrey, provide 255,000 sq ft (23,690 sq m) of office space, and are let to BAE Systems.
The properties give a combined rental income of $20.7m. At today's exchange rate, this equates to £11.37m, and the deal reflects a net initial yield of 4.4%. Robert Tchenguiz said: "The acquisition continues our strategy of investing in long-term, blue chip cashflows supported by high quality assets with a useful life well beyond expiry of the current leases" Sphere: Related Content
UK Govt Completes £58 Million Sale Leaseback of Courts in Birmingham
Freemans News - March 9, 2004
The Department for Constitutional Affairs has sold the 115-year long lease in Priory Court, Birmingham, to a private investor for £58m. The current owner of the freehold on Priory Court, a private Israeli client of Blandford Goldsmith, has bought the long leasehold interest in the building. The DCA, formerly known as the Lord Chancellor's Department, will lease the building back for 30 years, at a rent of £25.50 per sq ft.
Priory Court comprises 130,000 sq ft of floorspace. The building houses Birmingham's main civil courtrooms, with 11 magistrates courts plus six floors of office space. The purchaser also owns the building next to Priory Court, the 265,000 sq ft Temple Court office block, for which it paid British Land £42m five years ago. Jed Wolfe of Knight Frank, which advised the DCA, said that the sale would enable the government to reinvest the proceeds in public services. Sphere: Related Content
The Department for Constitutional Affairs has sold the 115-year long lease in Priory Court, Birmingham, to a private investor for £58m. The current owner of the freehold on Priory Court, a private Israeli client of Blandford Goldsmith, has bought the long leasehold interest in the building. The DCA, formerly known as the Lord Chancellor's Department, will lease the building back for 30 years, at a rent of £25.50 per sq ft.
Priory Court comprises 130,000 sq ft of floorspace. The building houses Birmingham's main civil courtrooms, with 11 magistrates courts plus six floors of office space. The purchaser also owns the building next to Priory Court, the 265,000 sq ft Temple Court office block, for which it paid British Land £42m five years ago. Jed Wolfe of Knight Frank, which advised the DCA, said that the sale would enable the government to reinvest the proceeds in public services. Sphere: Related Content
Ashtenne Completes £64.75 Million Sale of 570 houses in UK Net Leased to US Air Force
Property Week - March 8, 2004
Ashtenne has sold its freehold interest in a portfolio of 570 houses at Lakenheath Airbase in Suffolk, currently let to the US Air Force, to a consortium of investors led by Cardiff based Hodge & Co. for £64.75m. The sale represents a profit for Ashtenne of £9.75m, based on a book value of December 2003. Ian Watson, joint chief executive of Ashtenne, said: 'This is a textbook example of what we try to do. We bought this asset with a lease coming to an end within the year as part of a 'job-lot'. We then renewed the lease on excellent terms and have now sold the property to crystallise the very considerable value added. Sphere: Related Content
Ashtenne has sold its freehold interest in a portfolio of 570 houses at Lakenheath Airbase in Suffolk, currently let to the US Air Force, to a consortium of investors led by Cardiff based Hodge & Co. for £64.75m. The sale represents a profit for Ashtenne of £9.75m, based on a book value of December 2003. Ian Watson, joint chief executive of Ashtenne, said: 'This is a textbook example of what we try to do. We bought this asset with a lease coming to an end within the year as part of a 'job-lot'. We then renewed the lease on excellent terms and have now sold the property to crystallise the very considerable value added. Sphere: Related Content
Carrefour SA Completes 58 Million Euro Sale Leaseback of Office Buildings in France
Industry sources claim that Carrefour SA has sold a portfolio of office buildings to Aerium, a real estate investment consortium, in a leaseback deal for 58 million euro as part of Carrefour's policy of divesting non-strategic real estate. Carrefour has reportedly signed long-term leases with Aerium, and will continue to occupy the sites.
Sphere: Related Content
Seattle TV Station KCTS Planning Sale Leaseback of HQ
Seattle Daily Journal of Commerce - March 11, 2004
KCTS Television, one of the most watched stations in the Public Broadcasting System, may sell its headquarters in a leaseback agreement to settle debts and avert legal action by PBS, the head of the station says. 'I think it's the most realistic option we have,' KCTS president William P. Mohler said Tuesday.
Three potential buyers have expressed interest in a deal for the building, located at the Seattle Center and appraised at $13.2 million, and one could make a move in as little as three weeks, Mohler said. A leaseback agreement would allow KCTS to remain in the building and manage $7.2 million in debt, which has mounted over a decade of operating losses. Sphere: Related Content
KCTS Television, one of the most watched stations in the Public Broadcasting System, may sell its headquarters in a leaseback agreement to settle debts and avert legal action by PBS, the head of the station says. 'I think it's the most realistic option we have,' KCTS president William P. Mohler said Tuesday.
Three potential buyers have expressed interest in a deal for the building, located at the Seattle Center and appraised at $13.2 million, and one could make a move in as little as three weeks, Mohler said. A leaseback agreement would allow KCTS to remain in the building and manage $7.2 million in debt, which has mounted over a decade of operating losses. Sphere: Related Content
Luminar Considering Sale and Leaseback of 63 UK Nightclubs
Times Online - March 11, 2004
LUMINAR, the bar and nightclub operator, is considering a sale and leaseback on its estate of about 60 unbranded dancing venues in a move that could presage a share buyback. The group hived off 63 non-core clubs into a separately run division in October in an attempt to improve trading ahead of an eventual disposal. A sale and leaseback would allow it to release cash tied up in the freeholds while continuing to address the issue of performance. Steve Thomas, Luminar's chief executive, said that the turnaround strategy put in place after last year's profit warning, the first since its 1996 flotation, was designed to put the group in a strong enough financial position to consider a range of options. Sphere: Related Content
LUMINAR, the bar and nightclub operator, is considering a sale and leaseback on its estate of about 60 unbranded dancing venues in a move that could presage a share buyback. The group hived off 63 non-core clubs into a separately run division in October in an attempt to improve trading ahead of an eventual disposal. A sale and leaseback would allow it to release cash tied up in the freeholds while continuing to address the issue of performance. Steve Thomas, Luminar's chief executive, said that the turnaround strategy put in place after last year's profit warning, the first since its 1996 flotation, was designed to put the group in a strong enough financial position to consider a range of options. Sphere: Related Content
Wednesday, March 10, 2004
Cesky Telecom Plans €332 Million Property Sale Leaseback
Central & Eastern Europe Telecom Newsletter - March 9, 2004
Cesky Telecom has announced plans to sell and lease back property worth around 11bn kroner (€332m). The sale is the largest in the domestic property market and will be undertaken to assist the company cut costs and mobilise cash flow. No further details are as yet available but a piecemeal approach is apparently possible. The sale process is expected to take one year and to take three to six months to prepare. Sphere: Related Content
Cesky Telecom has announced plans to sell and lease back property worth around 11bn kroner (€332m). The sale is the largest in the domestic property market and will be undertaken to assist the company cut costs and mobilise cash flow. No further details are as yet available but a piecemeal approach is apparently possible. The sale process is expected to take one year and to take three to six months to prepare. Sphere: Related Content
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