Residual Value Loan Product Launched

Commercial Property News - March 02, 2006

The Norseman Group, in conjunction with RVI Group, used its new product, the Zero Tenant Note, or ZTN, for the first time yesterday. The transaction was a $2.3 million ZTN on six Best Buy properties owned by a large portfolio owner of single tenant properties. The new product is a mezzanine loan written on top of single tenant properties that are not generating current cash flow, and is encumbered by long-term, fully liquidating long-term credit tenant lease mortgage debt. Sphere: Related Content

State Street Signs Lease for New £200 Million HQ at Canary Wharf

Freeman News - February 27, 2006

Canary Wharf Group plc has announced that it has pre-sold long leasehold interests in 20 Churchill Place to Prudential Retirement Income Ltd for £199.5m with an occupational lease to SSB Realty, LLC. CWG will complete construction of the new building by autumn 2008 for full occupation by State Street in early 2009. The building will comprise approximately 300,000 sq ft of office space above ground plus ancillary space. State Street is currently an occupier at Canary Wharf in the One Canada Square tower where it leases five floors from CWG.

20 Churchill Place, designed by Kohn Pedersen Fox, will be State Street's new London Headquarters building. It will be located at the eastern gateway to the Canary Wharf estate, opposite the new Barclays Bank plc Headquarters. The building will enable State Street to consolidate their City, West End and Canary Wharf offices into one location. It is anticipated that State Street will begin a phased move into the building in autumn 2008 to be completed in early 2009. Sphere: Related Content

Staples Signs Long Term Lease for 555,000 SF in Orlando

CoStar Group - February 23, 2006

Staples, Inc., the office products retailer, has signed a 10-year lease for a 555,000-square-foot warehouse distribution facility at 10701 Central Port Drive in Orlando, FL. The one-story, 555,000-square-foot industrial building was built in 1994 and is located in the SE Orange County Industrial submarket. David Murphy and Kevin Hoover of CB Richard Ellis represented the landlord, Equity Industrial LP IV. David Ginther of Fischer & Co. represented the tenant. Sphere: Related Content

Swiss Retailer Completes 8 Store Sale Leaseback

Globes Online - February 26, 2006

Fishman Holdings subsidiary Jerusalem Economic Corp. (TASE:ECJM) (JEC) is expanding its business in Central Europe. The company today announced the purchase of eight stores from a large Swiss retailer in a buy and lease-back deal. JEC bought properties with 6,751 sq.m. of space and 93 parking places for 17.8 million Swiss francs (NIS 64 million), and leased the properties back to the retail chain in 5-10 leases.

JEC said it was negotiating with a foreign bank for a non-recourse loan for 85% of the deal. Three months ago, JEC announced a similar deal, in which it bought 17 stores from a large Swiss retailer in a buy and lease-back deal for 47.8 million Swiss francs (NIS 174 million). Sphere: Related Content

American Financial REIT to Sell Five Net Leased Properties for $301 Million

American Financial Realty Trust Web Site - February 24, 2006

American Financial Realty Trust (NYSE:AFR), announced today that it has entered into an agreement of sale with Resnick Development Corp., a subsidiary of Jack Resnick & Sons, Inc., to sell five 100% occupied, net leased properties for a sale price of $301 million, before transactions and closing costs. The purchaser will reimburse the Company for approximately $16.0 million in loan defeasance and prepayment costs, which results in an implied cap rate on the sale of approximately 6.70%.

The properties to be sold by the Company, which aggregate approximately 1.16 million square feet of rentable area, include 215 Fremont Street, San Francisco, California, an approximately 373,000 square foot office building that is leased to Charles Schwab & Co., Inc., Condominium Unit # 1 at 123 S. Broad Street, Philadelphia Pennsylvania, an approximately 256,000 square foot commercial condominium unit that is leased to Wachovia Bank, National Association, and three operations centers located in Meridian, Idaho, Louisville, Kentucky and McLeansville, North Carolina, aggregating approximately 530,000 square feet, that are leased to Citicorp North America, Inc.

The sale price is approximately $260 per square foot and will result in a GAAP gain to the Company of approximately $42.5 million, net of estimated closing costs. The transaction is expected to close early in the second quarter 2006. The Company will retain the property management on the 123 South Broad condominium unit and be granted rights of first offer to reacquire all of the properties. Sphere: Related Content

Duke University Places $11 Million Credit Tenant Loan on Research Facility

Private Placement Letter reports that Durham, N.C.-based Duke University has priced an $11 million credit tenant lease deal in the private market last week, sources said. William Blair acted as the sole agent for the transaction. Sources said the deal was backed by a research building and was structured as a single 16-year final/ 11-year average life maturity and was priced at 73 basis points over Treasurys. Duke University is viewed as a NAIC-1 credit. Sphere: Related Content

ICI's London Headquarters sold for £60.8 Million

Estates Gazette reports that Standard Life Investments has confirmed its acquisition of 20 Manchester Square, London, W1 for £60.8m from Close Brothers Investment on behalf of its Long Lease Fund. The deal is for the long leasehold interest from the Portman Estate until 29 July 2134 and represents a net initial yield of 4.42%.

The 70,074 sq ft office building, formerly EMI's headquarters, was developed by Delancey and completed in 2001. It is let in its entirety to ICI on a 20-year lease from 2001, at an annual rent of £3.5 million. ICI occupies the building as its global headquarters. Sphere: Related Content

Marks & Spencer Considering REIT to House £4 Billion Store Portfolio

The Times - February 23, 2006

The value of Marks & Spencer would soar to 580p a share if the retailer injected its estimated £4 billion property portfolio into a tax efficient real estate investment trust (Reit).

The prediction by Morgan Stanley Equity Research analysts would lift the fair value of M&S to 45 per cent more than the 400p hostile bid made by Philip Green in June 2004 and 15 per cent above the current M&S share price. The Treasury intends to introduce Reits in the UK next January, but details of the legislation are still being finalised. The current proposals insist that the ratio of taxable profits to interest must be more than 2.5 to 1 and that no shareholder is allowed to own more than 10 per cent of the Reit.

Morgan Stanley said it estimated that Marks & Spencer’s property had a market value of £4 billion, rising to £4.2 billion by the end of this year. Turning its estate into a Reit would make more transparent the market value of its assets and free up cash for M&S to invest in its core retail business or distribute to shareholders, according to Morgan Stanley.

That would enable investors to value M&S as a retail business and allow management to focus purely on the core retail operations. It would also give M&S shareholders a chance to buy shares in a newly created property company and receive dividends from a tax-free profit.

The 580p target price — 30p above Morgan Stanley’s current target — assumes M&S splits into an operating company worth 440p a share and a property company worth 140p a share. To reach a fair value of 440p a share for the M&S operating company, Morgan Stanley assumes that the property is sold and leased back to M&S at a price reflecting a 5.6 per cent rental yield, in line with a sale and leaseback by Debenhams. The cash would repay debt.

The property company valuation is based on a 20 per cent rise in the £3.3 billion valuation of M&S’s property since July 2004 and a further rise to £4.2 billion by the end of 2006. If M&S paid a conversion tax of 15 per cent on capital gains tax liabilities, the new property company would have an asset value of £3.9 billion. After £1.5 billion of debt, the property company’s equity value would be £2.5 billion or 140p a share.

Few big retailers still own extensive portfolios of property. Sphere: Related Content

AON May Build New UK HQ at Canary Wharf in London

The Sunday Times - February 23, 2006

AON, the insurance broker, is in talks to relocate its British headquarters to Canary Wharf in London's Docklands. The company said yesterday that it was considering leasing 255,000 sq ft of office space on the estate, in what would be one of the biggest new headquarter lettings at Canary Wharf for three years. It would also be the first time that a major insurance company has taken a large amount of space at the East London location.

The Docklands developer has been trying to diversify its tenant line-up to include other types of companies in the area, which is popular with large investment banks and law firms, including Credit Suisse, Lehman Brothers, Citigroup and Clifford Chance. Property sources said yesterday that Aon was still finalising the deal, but it is expected to lease a new building at 10 Churchill Place for at least 20 years at a rent approaching £40 per sq ft.

The company would relocate from its present site at Devonshire Square in the City of London. The group, which is being advised by CB Richard Ellis, has been looking for a new London site for more than two years. The company employs about 2,000 staff in London. Aon provides risk management services, insurance, reinsurance brokerage, management consulting and speciality insurance underwriting. Sphere: Related Content

Sainsbury to Issue £2.07 Billion in CMBS Backed by 127 Supermarkets

Freeman News - February 24, 2006

J Sainsbury plc, Britain's third biggest supermarket group, is to issue £2.07bn of commercial mortgage-backed securities to cut financing costs and slash its ££582m pension deficit. Sainsbury is to plough £350m into its pension schemes over the next three months. Sainsbury will use the balance of the proceeds to buy back up to £1.7bn in outstanding debt.

It said the CMBS will enable it to cut interest payments by £12m a year from next year. The debt will be secured indirectly against 127 of its supermarkets with a value of £3.55bn, approximately half the net book value of its estate
Sainsbury will incur a pre-tax charge of £37m this year, partly to pay for the early redemption of the existing unsecured bonds, rated BBB- and Baa3 respectively by Standard & Poors and Moody's.

(see Moody's Investors Service presale reports at the links below)

Longstone Finance plc

Eddystone Finance plc Sphere: Related Content

Little Chef Completes £60.3 Million Sale Leaseback of 65 UK Sites

CatererSearch Web Site - February 24, 2006

Little Chef has sold 65 sites to an Israeli property investor in a £60.3m sale-and-leaseback deal. Arazim Investment, a £100m company listed on the Tel Aviv stock exchange, completed the purchase earlier this week. The deal included a 56-bedroom hotel operated by Little Chef at Pontefract on the A1 in West Yorkshire. None of the properties are co-located on Travelodge sites and are spread as far apart as Scotland and the South-west of England.

Little Chef owner Lawrence Wosskow said: "The money will enable us to continue the roll-out of our new Coffee Tempo cafe brand and modernise existing Little Chef sites." The sites, nine of which have a Burger King franchise, were chosen because they were freehold or long-lease deals. The leaseback deals are for 35 years. The deal was handled by Coffer Corporate Leisure, the newly-founded leisure mergers and acquisitions vehicle of Davis Coffer Lyons. Sphere: Related Content

Vacancy Rate in Calgary Canada Drops to 1.9%

Calgary Herald - February 20, 2006

The hunt for downtown office space is so intense these days that buildings still under construction and not available for occupancy for more than a year have been pre-leased. It's a sign of the times in Calgary as the downtown office vacancy rate has hit a historic low. According to a February office space report by Barclay Street Real Estate Ltd., the overall vacancy rate is at 1.9 per cent.

'The properties that are being delivered in 2007 consisting of four major new office developments in downtown Calgary are approximately 70 per cent pre-leased at this point in time,' said Mark St. Pierre, senior vice-president and principal of Barclay Street Real Estate. 'We anticipate that those buildings will be 90 to 100 per cent pre-leased before the end of this calendar year with still six months following for delivery. The average lease rate for AA office space is currently about $35 a square foot.

Downtown Calgary has about 33 million square feet of office space. In the top quality AA class, the actual vacancy rate is 0.9 per cent, according to Barclay Street Real Estate, with only just over 50,000 square feet of vacant area in an overall inventory of just over five million square feet. "With under two per cent vacancy in the downtown core, Calgary's vacancy is second in the world only to Tokyo at 1.2 per cent," states the report. Sphere: Related Content

Kesko Agrees to EUR 200 Million Sale Leaseback of 77 Stores in Finland

Kesko Web Site - February 16, 2004

Kesko has today agreed to sell 77 retail properties in various parts of Finland to Niam Retail Holding Finland AB. The sale price is over EUR 200 million. Kesko Group's gain on the disposal is EUR 99.8 million.

In addition to real estate owned by Kesko Group, 15 real estate properties owned by the Kesko Pension Fund have also been sold at the same time. All the above premises have been leased back for the use of Kesko's division parent companies under 5-year or 10-year lease agreements with extension options.

Kesko Group's lease liabilities, covering all properties now leased and totalling approximately EUR 144 million, are not classified as finance leases. Lease liabilities concerning the real estate sold by Kesko Group amount to EUR 118 million.

Out of the 77 real estate properties covered by the deal, 57 are used by K-food store chains, 14 by the K-rauta and Rautia chains, four by the K-maatalous chain and two by the chain of Anttila department stores. The concluded deal will cause no changes in store operations. The total area of the real estate sold by Kesko Group is approximately 160,000 sq.m.

The sale of real estate aims at enhancing the use of Kesko Group's capital. The assets obtained from the sale will be used to strengthen the store network in Finland and other countries, to expand the Group's international business operations and for rearrangements of long-term finance. Closing of the transaction is is expected to occur in early March. Sphere: Related Content

Boise Cascade to Sell and Leaseback HQ Office Building

The Idaho Statesman - February 18, 2006

Boise Cascade Co. said Friday it will sell its five-story 300,000-square foot headquarters at 1111 West Jefferson to local developer Rafanelli & Nahas and then lease back up to three floors to house its 540 Boise area employees. Terms of the Boise Cascade deal were not revealed Friday.

But area real estate experts said Boise Cascade stands to get a good price for its headquarters, thanks to a recent runup in Treasure Valley real estate values. Ada County Assessor Bob McQuade said the building and the land it sits on was assessed at $19.8 million in 2005.

News of the sale was not unexpected. Boise Cascade announced last year that it was exploring various options for its headquarters, including a sale. Industry observers say an increasing number of U.S. companies are choosing to rent rather than own in order to cash in on the increased value of their property. The deal is expected to close March 9.

Boise Cascade's exit from the real estate business means it will be able to concentrate on its core businesses of wood products and paper manufacturing, said a company official. "We wanted to concentrate on those businesses, and not worry about managing real estate," said Boise Cascade spokesman Mike Moser. Sphere: Related Content

Toys R Us Commences $868 Million Sale Leaseback of 60 Stores in Europe

SEC Edgar Web Site - February 15, 2006

Toys Limited and Toys "R" Us Properties Limited, an indirect subsidiary of Toys "R" Us, Inc., will sell to Toys Properties by way of an inter-company transfer 29 stores and one distribution center having an aggregate market value of £493.2 million (U.S.$868.0 million) and lease those properties back pursuant to operating leases. The acquisition is being financed through commercial mortgage backed floating rate notes of £355.8 million (U.S.$626.2 million.) The company will also sell and leaseback 22 properties located in Spain and nine in France under simmilar arrangements.

The proceeds from the transaction, together with other available funds, were used to repay all of the outstanding indebtedness under the bridge facility component of the acquisition facilities with, among others, Deutsche Bank AG, London Branch, Barclays Bank PLC and The Royal Bank of Scotland plc, and to pay part of the transaction costs related to the various transactions. Following the closing of the U.K. transaction, there remained no outstanding balance under the bridge facility. Sphere: Related Content

Quantum Converts $54.2 Million Synthetic Lease to Sale Leaseback

SEC Edgar Web Site - February 10, 2006

On February 6, 2006, Quantum Corporation terminated its existing synthetic lease agreement with SELCO Service Corporation for its Pikes Peak Corporate Center, located at 10125, 10205 and 10285 Federal Drive, Colorado Springs, Colorado and arranged for a sale of the Colorado Facility to CS/Federal Drive LLC, (Cushman & Wakefield Net Lease Trust, Inc.) and restructured its interest in the facility as a triple net operating lease.

Under the terms of the transaction documents, the Colorado Facility was sold to CS for a total sales price of approximately $54.25 million, of which the Company received approximately $2.6 million, with the remainder paid to SELCO in consideration of its synthetic leasehold interest in the property and covering costs associated with the transaction. In connection with the sale, the Company leased the three buildings located at the Colorado Facility from CS pursuant to three triple net leases with terms of 5, 7 and 15 years. The leases require the Company to pay initial base annual rent of $5,940,966.00 (10.95% cap rate) with annual increases of 2.0% and greater during the first five years of the lease. Sphere: Related Content

Woolworths Seeking $860 Million Sale Leaseback of 11 Distribution Centers in Australia

WeSellRealEstate.com.au - February 10, 2006

A rush of bids are expected today for the $860 million Woolworths industrial portfolio of distribution centres. Record low yields are expected as a condition of sale specifies that the winning bidder will be the one who offers the lowest rent, not the highest purchase price.

Yields for prime industrial assets in the best performing markets in Australia range from 7% to 7.25%, but the Woolworths sale is expected to establish a new benchmark in the 6% range. Woolworths will leaseback the 11 properties for 15 years. However only 6 properties have freehold titles. One of the distribution centres in the sale include the new Barnawartha site located at Logic. Sphere: Related Content

Restaurant Chains Being Presured by Investors to Monetize Property Portfolios

New York Times - February 10, 2006

Hedge fund activists have redirected their recent interest in fast food to casual dining and are focusing beyond high margins in the kitchen to finding value in the land beneath it.

This week, Pirate Capital, an aptly named $1.5 billion activist fund, indicated in a regulatory filing that it had paid $58.8 million for a 7 percent stake in CKE Restaurants, parent of Carl's Jr. and Hardee's, among other holdings.

Late last month, Michael Woodhouse, the chairman and chief executive of Cracker Barrel, said his company had hired Wachovia to explore ways to enhance shareholder value. This came after Cracker Barrel was approached by an unnamed shareholder who wanted changes. That shareholder is Nelson Peltz, who runs Trian Partners, a new private investment fund, say people briefed on Mr. Peltz's investment. A spokeswoman for Mr. Peltz declined to comment.

These restaurant franchises, slightly more sophisticated than fast-food chains, have something in common with their bigger brethren other than some menu items: the restaurants in both types of chains own a lot of real estate. The hedge fund investors believe that real estate has value that, once unlocked, could go to the company's owners — the activists — in the form of share buybacks.

Here's how the activists want to unlock real estate value: sell the real estate under the stores and lease it back, using the proceeds to buy back stock. If such a move would incur a large tax bill — which it would if the real estate was cheap — the restaurant companies could create a real estate holding company and borrow, heavily, against it.

Cracker Barrel and CKE Restaurants will not be alone: other targets are expected to include Outback Steakhouse, Bob Evans and Brinker International, say managers who do not want to be identified because they are buying shares. Sphere: Related Content

Goody's Completes Sale Leaseback of HQ & Distribution Centers

Commercial Property News - February 10, 2006

The two investment firms that purchased Goody's Family Clothing Inc. for $327 million last month have carried out a sale-leaseback of three Goody's buildings to help fund the equity portion of the acquisition. The proceeds of the sale and leaseback were not disclosed.

Under the terms of the sale and leaseback, the investment firms--Prentice Capital Management L.F. and Affiliates and GMM Capital L.L.C.--sold the buildings to STAG Capital Partners, and then leased it back.

According to industry observers contacted today by CPN, investment firms that acquire companies often sell and leaseback property and then use the proceeds to reduce the amount of equity that the investment firm would otherwise have to supply to the transaction. The technique can significantly increase return on the deal.

The property includes Goody's corporate headquarters building and main distribution center in Knoxville, Tenn., and a second distribution center in Russellville, Ark. The three buildings encompass approximately 750,000 square feet. Sphere: Related Content

Kmart Distribution Center Sells for $53 Million

CoStar Group - February 8, 2006

JP Morgan purchased the Kmart distribution center at 1475 Nitterhouse Drive in Chambersburg, PA, from Nitterhouse LLP for $53.2 million, or about $61.50 per square foot. Built in 2001, the distribution center is a single story, 862,450-square-foot warehouse with a 30-foot clear height and 59 loading docks. The building is fully leased to Kmart through August 2016 on a triple net lease. Cushman & Wakefield's James P. Vessey, James Sheehan, Jerome Kranzel, Stephan Cooper and Jeffrey Williams represented both parties. Sphere: Related Content

German Retailer Sinn Leffers Completes Sale Leaseback of Property Portfolio

Hypo Real Estate Group Web Site - February 7, 2006

Hypo Real Estate Bank AG (Munich) and Hypo Real Estate Bank International (Stuttgart) are pleased to announce that the Group has provided a € 172 million acquisition financing to European Property Investors, L.P., a value-added corporate outsourcing fund managed by Curzon Global Partners. The financing has been provided in connection with the acquisition of a portfolio of properties for a sale and leaseback transaction with Sinn Leffers in Germany. The transaction closed on 23rd December 2005.

The portfolio consists of sixteen city centre retail assets (predominantly in the North Rhine/Westphalia region) together with a headquarters office and distribution centre totalling in all circa 130,000 sq metres. All properties are
newly let to the tenant company on long leases. Sphere: Related Content

Apple Computer Leases 116,830 SF Building in Cupertino, CA

CoStar Group - February 3, 2006

Apple Computer signed a deal for the entire 116,830-square-foot building at 10400-10450 Ridgeview Court in Cupertino. About 56,315 square feet was a direct deal with the landlord and the remaining 60,515 square feet was a sublease from IBM. Gregg von Thaden of Colliers International in San Jose represented Apple in both leases. Frank Friedrich, Don Lonsinger and Doug Beck of CB Richard Ellis in San Jose and Randall Brown of CB Richard Ellis of Los Angeles represented IBM. Brad Martin and Rich Hardy of Cushman & Wakefield of San Jose represented the landlord, Grosvenor International Ltd. Sphere: Related Content

Retailer Casual Male Closes Sale Leaseback of HQ Complex Near Boston

Casual Male Retail Group Web Site - February 3, 2006

On January 30, 2006, Casual Male Retail Group, Inc., the nations largest retailer of big and tall men's apparel, entered into a sale-leaseback transaction with Spirit Finance Corporation for its headquarters and primary distribution center property for $57.0 million. The property consists of a 725,835 gross square foot building located on approximately 27.3 acres in Canton, MA. The transaction funded and closed on February 1, 2006.

The Company agreed to lease the property back for an annual rent of $4.56 million, payable monthly and in advance. The initial period of the Lease Agreement is for 20 years with optionas to extend for six additional successive periods of five years. In addition, on February 1, 2011, the fifth anniversary of the Lease Agreement, and for every fifth anniversary thereafter, the base rent will increase not to exceed the lesser of 7% or a percentage based on changes in the Consumer Price Index. Sphere: Related Content

ING Agrees to $31 Million Sale Leaseback of Office Complex In Quebec

Whiterock REIT Web Site - February 3, 2006

Whiterock Real Estate Investment Trust has entered into a long term sale-leaseback agreement with ING Insurance Company of Canada covering a three-building, 230,000 square foot office complex, in Saint-Hyacinthe, Quebec for approximately $31 million. The lease has a term of 20 years with four, five-year extensions, and is triple net including all structural repairs and maintenance expenses.

"Whiterock is very pleased to enter into a long-term transaction with ING, the largest provider of property and casualty insurance in Canada with an A+ credit rating by Standard & Poor's."

The office complex is located at 2450 rue Girouard Ouest, and 450 rue St-Joseph and will be leased back in its totality to ING until 2026. 2450 rue Girouard Ouest consists of two buildings connected by an elevated walkway, of which one building totaling 115,000 square feet was newly constructed in 2005, and the second building totaling 85,000 square feet is currently undergoing significant renovations by the tenant. The third building, totaling approximately 30,000 square feet was significantly upgraded in 1990, and again in 2005. The properties also contain approximately 560 surface parking stalls, all of which are utilized by ING.

Whiterock intends to finance the going-in 7.5% cap rate acquisition with 20 year fixed rate debt for approximately 75% of the purchase price. Sphere: Related Content

Minka Lighting Signs 533,000-SF Industrial Prelease

CoStar Group - February 1, 2006

Minka Lighting signed a long-term lease, estimated at 10 years, for a 532,926-square-foot industrial building at 23700 Cactus Ave. in Moreno Valley, CA. Construction for the building is planned to begin this month with completion set for September. It will be located in the master-planned Centerpointe Business Park. The newly built industrial building will feature 98 loading docks, four ground-level doors and a 32-foot clear height. Jeff Ruscigno and Joseph McKay of Lee & Associates represented the landlord, Ridge Properties. Louis Tomaselli and Mitch Zehner of Voit Commercial Brokerage represented the tenant. Sphere: Related Content

CSFB Considering Sale Leaseback of London Buildings?

Estates Gazette reports that CB Richard Ellis has been appointed to advise Credit Suisse First Boston on the bank's property strategy. CSFB may consider a £500m-plus sale and leaseback of the 540,000 sq ft 1 Cabot Square and the 167,000 sq ft 20 Columbus Courtyard in London. Recent Canary Wharf sales have achieved an average yield of around 5.6%. Sphere: Related Content

UK Retailer B&Q Planning Sale Leasebacks on £1.1 Billion UK Store Portfolio

Property Week reports that B&Q is planning sale and leasebacks on parts of its £1.1bn UK portfolio in an effort to advance its turnaround strategy and raise cash. The company reportedly completed its first sale and leaseback before Christmas when Standard Life Investments paid £61 million for two warehouses in Birmingham and Doncaster. The sale and leaseback, through subsidiary B&Q Properties, was reportedly completed in four and half days after a private investor pulled out of the deal before Christmas.

Terry Hartwell, property director at B&Q's parent company Kingfisher Group, was reported as saying that the company would likely pursue further sale leaseback transactions in 2006. Sphere: Related Content

Le Nature Facility in Phoenix With 20 Year Lease Sells for $88.5 Million

CB Richard Ellis Web Site - January 30, 2006

First Industrial Realty Trust has sold the 500,000-square-foot 615 North 48th Street in Phoenix, AZ to CBRE Investors. Situated on 30.12 acres of land, the building was a build-to-suit for and is fully leased on a 25-year triple net lease by Le*Nature’s, Inc. Sale price was in excess of $88.5 million.

Le*Nature’s, Inc. produces and markets all natural, fully pasteurized, noncarbonated alternative everages in re-closable plastic bottles. It is also widely recognized as having one of America’s most advanced beverage manufacturing facilities.

The R&D, manufacturing and distribution facility in Phoenix was a build-to-suit constructed by First Industrial Realty Trust for Le*Nature’s, Inc. The state-of-the-art facility includes 70,525 square feet of office space situated throughout the three floors, sky lights throughout the warehouse area, 378 parking stalls, 30 foot clear ceiling height and a 75-foot mounted freeway sign with color video screen totaling approximately 400 square feet in size. Sphere: Related Content

City of Hamburg Germany Completes EUR 815.5 Million Sale Leaseback of 39 Properties

HSH N Real Estate - January 31, 2006

The Free and Hanseatic City of Hamburg has sold a portfolio of office and commercial space comprising 39 properties to Captiva Capital Partners II S.C.A. real estate fund. The real estate sold forms part of a portfolio comprising a total of approx. 180 properties. The transaction volume amounts to €815.5 million. This sale, which was transacted in the form of an asset deal on behalf of the public sector, thus ranks among the largest transactions of this kind ever to be carried out in Germany.

The consulting syndicate consisting of Ernst & Young Real Estate GmbH, HSH N Real Estate AG and Sal. Oppenheim jr. & Cie. KGaA was responsible for all aspects of preparing and carrying out the selling process. The legal consulting and contractual arrangements were performed by law firm Freshfields Bruckhaus Deringer, which has a particular focus on providing advice on large-scale real estate portfolio transactions. Over the coming months, FHH will put another package of properties up for sale with the support of the consulting syndicate.

The 39 properties were purchased by Captiva Capital Partners II S.C.A. real estate fund, which is managed by IXIS Capital Partners Limited. IXIS forms part of Caisse Nationale des Caisses d'Epargne, which is France's third-largest network of banks. The Captiva real estate fund was involved in several large-scale real estate transactions in the past, such as logistics real estate of KarstadtQuelle AG, France Telecom real estate and office properties owned by Barmer Ersatzkasse.

The deal with the purchaser will be closed subject to the consent of the Senate and Parliament of FHH. On the part of FHH, the process will be handled by Hamburger Gesellschaft for Vermogens- und Beteiligungs-verwaltung mbH (HGV), a subsidiary of FHH. Sphere: Related Content

AIB Seeking €360 Million Sale Leaseback of Ballsbridge HQ

Irish Independent - January 31 06

AIB is shortly expected to put its Ballsbridge head office on the market at an estimated price tag of €360m. The bank declined to confirm the move yesterday - a spokeswoman saying it had "no comment" to make. The Bankcentre complex comprises a number of different blocks opposite the Royal Dublin Society. The group plans to lease the buildings back from the new owner/owners on a long-term arrangement.

This is a carbon copy of the transaction used by the group to fund the extension of its headquarters complex, a deal that was completed this time last year. Three interlinked blocks, varying in height from five to seven storeys over basement and with 535 car parking spaces, are currently being constructed behind the existing offices. The deals are roughly equal in valuation terms, according to property sources, and each represents by far the largest property transactions in the Irish market.

A year ago, the bank entered into exclusive negotiations to fund its landmark extension in Ballsbridge with the Serpentine Consortium, a syndicate of private investors assembled by AIB Private Banking and Goodbody Stockbrokers, which is also owned by AIB. The price agreed with the syndicate has not been disclosed but property specialists put a €360m price tag on the transaction at the time.

The Serpentine Consortium was named preferred bidder after an open tender process handled by Jones Lang La Salle, the estate agent which is understood to be handling the new sale and leaseback. A spokesman for Jones Lang La Salle said he had no comment to make when asked yesterday.

Some disappointed bidders were critical of the tender process, noting that the successful bidders were clients of the bank. Deloitte Ireland claimed after the event that its bid of €380m, made on behalf of an unnamed UK property fund, had been rejected by the bank, even though it represented a premium of circa €20m over the successful Serpentine offer.

In all, it is reckoned eight investment groups were shortlisted for that sales and leaseback development and that, between them, they represented some €2bn of private Irish money. It is understood that consortium members participating in that transaction were asked to put up €120m in equity, with AIB lending the balance of the investment to the investors.

The funding aspect is what arguably attracted other banks to put in tenders the last time around, and it is expected the same names will be back in the hat this time around. Sphere: Related Content

AAA Signs 10-Year Lease on 200,000-SF Customer Support Center

Commercial Property News - January 27, 2006

The California State Automobile Association and AAA Arizona have joined forces on a 10-year lease for a 31-acre, 206,333-square-foot regional customer service and information technology center in Glendale, Ariz. Financial terms were not disclosed.

The long-term lease and size of the facility make it the largest office lease in this submarket in recent history, Phil Breidenbach, senior vice president of Colliers International's office properties division, which represented the building's owner, West Coast Capital Partners of Los Angeles.

The property is located at 5353 West Bell Rd., the site is adjacent to the Talavi Business Park. Sphere: Related Content

Thompson Property in Toronto Sold

Commercial Property News - January 25, 2006

Munich's KanAm US-grundinvest Fonds, as advised by Atlanta-based WestWind Capital Partners, has obtained Corporate Plaza, a 13-story, 206,109-square-foot Class A office in Toronto. KanAm bought the building, which is located in the city's Metro East Submarket, from Caliper Equities Ltd. for an undisclosed amount. The site, located near Highway 401, could support development of an additional 13-story office. The Carswell division of Thomson currently has a long-term lease in the existing building. Sphere: Related Content

New Canadian Retail REIT Formed With 44 Sobeys Grocery Stores

Financial Post - January 25, 2006

The parent company of grocery giant Sobeys Inc. said yesterday it is creating a new trust for its real-estate assets, another strong example of a retailer taking advantage of sky-high property values and insatiable investor demand.

Stellarton, N.S.-based Empire Company Ltd., which owns 68.3% of Sobey's Inc., said yesterday it will move assets from its real-estate division into a new entity to be called Crombie Real Estate Investment Trust. The initial public offering is expected to be worth $150-million. Crombie will purchase 44 commercial properties with seven million square feet from Empire's wholly-owned ECL Properties Ltd., which used to be known as Crombie Properties. Empire will retain a 49.5% stake in the REIT through ECL Properties. ECL Properties is the largest commercial property landlord in Atlantic Canada, and has interests in Quebec and Ontario. On top of developing and managing strip malls, it also owns office buildings.

More and more companies are looking at how to monetize the rising value of their real-estate holdings, while investment bankers actively court retailers such as Loblaw Cos. Ltd. on the merits of rolling real estate into a REIT. Others retailers are simply selling off property. Last year Canadian Tire sold $229-million of its real estate to H&R REIT, leasing back the properties on a long-term basis. Some non-real estate companies are now attracting as much interest for their property assets as their core businesses. One recent example is Hudson's Bay Co., now the subject of a takeover battle, which is said to have as much as $770-million in real estate.

"Most retailers want to retain control of the real estate but if they can sell to a REIT and then control the REIT, they get the best of both worlds," said one Bay Street analyst. Sphere: Related Content

Greek Government Drafting Leaseback Legislation

Ekathimerini.com - January 26, 2006

The Greek government said yesterday that it expects soon to upgrade part of its massive real estate portfolio through financial leasing tools that will allow it to develop and improve some 1.8 billion euros' worth of state property. Economy and Finance Minister Giorgos Alogoskoufis said that the preparation of a draft bill allowing for sale and leaseback programs is in its final stage and will soon be available for public discussion.

"The state has a very big real estate portfolio which has not been managed with the efficiency required," Alogoskoufis said after an Inner Cabinet meeting. Many state services are currently housed in run-down buildings desperately in need of repair work and a facelift. According to the finance minister, the legislation will allow state services on tight budgets to improve their facilities despite limited resources.

The Finance Ministry will use the leaseback options for its prime real estate in the center of Athens and along the fast-developing Attiki Odos zone. Sphere: Related Content

Whirlpool Leases 852,000-SF Distribution Center in Fort Worth

Whirlpool To Open New Distribution Center in Fort Worth - CoStar Group - January 26, 2006

The Whirlpool Corp., a global manufacturer and marketer of home appliances, inked a deal to occupy 852,000 square feet at 1101 Everman Parkway in Fort Worth, TX. The company is slated to move into the entire facility at Carter Industrial Park by March and will remain at the park for the next two years. The company also has another warehouse facility at 14900 Frye Road in Fort Worth.

The property on Everman, formerly occupied by General Motors, is a distribution facility with 55 dock-high doors and a 38-foot ceiling height. More importantly, this location also provides rail service via the Burlington Northern Santa Fe line.

Walter Floyd with NAI Huff Partners and Trey Fricke of Lee & Associates represented the landlord, Industrial Realty Group. The brokers also have the property listed on the market as an investment sale. William Callahan with Jones Lang LaSalle negotiated on behalf of Whirlpool. Sphere: Related Content

Tweeter Home Entertainment Closes Sale Leaseback of HQ & Distribution Center

Tweeter Web Site - January 26, 2006

Tweeter Home Entertainment Group, Inc. (Nasdaq: TWTR), the national specialty consumer electronics retailer, announced that they had completed a sale and leaseback of their corporate headquarters and New England distribution center on January 13, 2006. The company received $13.6 million in cash as a result of this transaction. Proceeds will be used to reduce debt. Sphere: Related Content

SMK Speedy International Inc. Announces Sale Leaseback of 58 Service Centers

CCNMatthews - January 26, 2006

SMK Speedy International Inc. ('Speedy') today announced it has entered into an agreement to sell and leaseback the real estate for 58 company owned properties. The agreement is subject to certain conditions including due diligence and the transaction is expected to close in late March or April.

The proceeds from the successful completion of this transaction will be substantially used to provide full and early repayment of the $19 million principal and approximately $2.6 million of the deferred interest to the Senior Subordinated Noteholders

SMK Speedy is a leading automobile service specialist with 88 company operated and 32 franchise stores under contracts with SMK Speedy International Inc. or 984781 Alberta Ltd. a subsidiary of 578098 Alberta Ltd. Sphere: Related Content

Beatties Gets £56 Million in Sale Leaseback of Two UK Stores

icBirmingham - Mail - January 27, 2006

Beatties' Wolverhampton city centre store has been sold for £47 million, it was revealed today. The store, one of the best known sites in the city, has changed hands just days after owners House of Fraser announced 100 jobs were to go at the Darlington Street complex.

House of Fraser said today it had entered into a new 35-year sale and leaseback arrangement on the city centre store. The former Beatties empire, bought last June for £69.4 million by House of Fraser, has faced a turbulent ride with the new owners at the helm.

House of Fraser said today it was also selling and leasing back its store at Birkenhead, Merseyside. Proceeds from both the Wolverhampton and Birkenhead transactions will be used to reduce House of Fraser's debt. The retailer said the stores had been sold to "two separate parties" for a total of £56 million. (The initial yield achieved on the sale and leaseback transactions was less than 4.7% on an aggregated basis according to the Regulatory News Service.) Sphere: Related Content

Burlington Coat Factory to Pursue Sale Leaseback of Property Portfolio?

Burlington Coat Factory the Next Retail-for-Real-Estate Play - CoStar Group - January 26, 2006

Burlington Coat Factory Warehouse Corp. (NYSE:BCF) accepted a buy-out offer from Boston-based private equity firm Bain Capital Partners LLC for $2.06 billion, or $45.50 per share in cash. Founded by the Milstein family, which swung its 62% ownership stake in favor of the Bain offer, the New Jersey-based Burlington Coat Factory started its 36-year run as an outlet chain offering designer coats at discount prices. Today, the retail chain has 367 stores in 42 states and sells a wide selection of apparel including shoes, baby furniture and home accessories.

Lately faced with stagnant share prices from a seemingly indifferent Wall Street and increasing competition from discounters, many big box retailers are turning to the ground underneath their stores to attract buyers and keep investors happy. Meanwhile, private equity buyers like Bain can tap the chain's highly valued real estate, either by selling off stores or using the real estate as collateral for borrowing funds needed to turnaround underperforming companies and hopefully sell them at a premium later. Bain has made private equity investments and add-on acquisitions in more than 230 companies, including Toys 'R Us, Burger King, Staples, Shopper's Drug Mart, Brookstone, Domino's Pizza, Sealy Corp., Sports Authority, Duane Reade and Dollarama.

"We are thrilled that a transaction with Bain Capital delivers significant value to our stockholders," said Monroe Milstein, Burlington Coat Factory's chairman, president and CEO. Sphere: Related Content

Teledyne Tech. Signes 125,000-SF Office Deal in El Segundo, CA

Teledyne Tech. Inks 125K-SF Office Deal in El Segundo - CoStar Group - January 25, 2006

Teledyne Technologies Inc. leased 125,000 square feet of office space at 501 Continental Blvd. in El Segundo, CA. It will occupy the entire building. The company will occupy the space in mid-2006. Teledyne Technologies designs and manufactures electronics, instrumentation, communication, and propulsion products, and provides advanced engineering services to a variety of customers around the world. Mark Sullivan of Studley represented Teledyne. Steve Solomon and Craig Meyer of Trammell Crow Co. represented the landlord, Alliance Commercial Partners LLC. Sphere: Related Content

S&P May Downgrade CVS Ratings on $1 Billion 700 Store Buy-Leaseback of Sav-on and Osco Drug Stores from Albertson's

Morningstar / MarketWatch Pulse - January 23, 2006

Standard & Poor's Ratings Services on Monday placed CVS Corp.'s (CVS) long-term ratings, including its A- long-term corporate credit rating, on creditwatch with negative implications. S&P also affirmed the A-2 short-term rating on the Woonsocket, R.I.-based retail pharmacy chain. The creditwatch action follows the retailer's agreement to acquire about 700 stores under the Sav-on and Osco banners from Albertson's Inc. (ABS) for $3.9 billion in cash, including property. CVS is planning on funding the transaction with short- and long-term debt, including an anticipated sale leaseback of $1 billion. "Although the proposed transaction would strengthen CVS's competitive position, the additional debt to fund the acquisition would weaken the company's financial profile," said S&P credit analyst Diane Shand in a statement. Sphere: Related Content

IBM HQ in Madrid Sold for $267 Million

Financial Times - January 23, 2006

Morgan Stanley, the US investment bank, has paid €220m (£151m, $267m) for IBM's Iberian headquarters in the biggest single office deal ever seen in Spain. It is understood that two of the group's funds, the Morgan Stanley Eurozone Office Fund and its new KAG German open-ended fund, have joined forces to buy the block building in Madrid's city centre. The seller was GIC, investment wing of Singapore's government and a leading global property investor. The deal was at a net initial yield of 5.5 per cent.

Three thousand IBM staff work at the 10-storey building, on Avenida de America, which was purpose-built for the company in 1989. It was bought by GIC in 2000 on a sale and leaseback basis. The block has more than 500,000 sq ft of space above ground and another 200,000-plus sq ft of underground car parking – with 1,000 spaces – and other facilities. IBM is halfway through a 10-year lease, on an inflation-linked index. However, it is understood that it is in negotiations with Morgan Stanley to add five years to the term.

The two funds were advised by Morgan Stanley and GIC was advised by CB Richard Ellis. Sphere: Related Content

Golden Tulip Hotel in Melborne Developed Under 20 Year Leaseback

The Australian - January 24, 2006

The Tourism Hotels & Leisure group has announced plans for a $75 million, four-star hotel to be built on or near Melbourne Airport. The 279-room property is likely to become Melbourne's second Golden Tulip hotel and will be built by an undisclosed developer.

But confusion surrounds the actual site, with Melbourne Airport staff yesterday unaware of any plans for a hotel and a THL spokesman unable to confirm whether the planned complex would be on airport land. Either way, the hotel will be known as the Golden Tulip Melbourne Airport, and according to a THL stock exchange announcement, will include both conference and business facilities.

The proposed complex will be Golden Tulip's second Melbourne property and is expected to be leased back for up to 20 years. Sphere: Related Content

Hornbach Completes Euro 200 Million Sale Leaseback of Seven DIY Megastores in Germany and Switzerland

Hornbach Holding AG Web Site - January 20, 2006

Within the framework of its sale and lease back strategy, the HORNBACH Group has concluded agreements for the disposal and renting back of a portfolio of seven existing and planned DIY megastores with garden centers in Germany and Switzerland. Furthermore, a specialist retail center located in Germany has also been sold. The total value of the portfolio amounts to approximately EUR 200 million.

The Purchaser, Crawford Properties Ltd of Gibraltar, is a company controlled by the Israeli investor Igal Ahouvi. Mr Ahouvi has over the past 18 months expanded his real estate portfolio through large scale transactions in Germany and Europe.

In the past years, HORNBACH has already successfully executed several sale and lease back transactions with various open and closed real estate funds and institutional investors via markets in Germany and other European countries. These transactions enable HORNBACH to improve its liquidity, while simultaneously securing its locations in the long-term. Such disposals are undertaken in line with the strategy to hold approximately 50 per cent of all real estate required for operations in the group companies. Sphere: Related Content

American College Seeking Sale Leaseback on Part of Philadelphia Area Campus

Philadelphia Inquirer - January,23 2006

The American College in Bryn Mawr Pennsylvania is putting its 35-acre campus on the Main Line up for sale. It would sell the six-building Bryn Mawr campus, including the Gregg Conference Center, with 50 hotel rooms and dining and classroom space. It would lease back the Million Dollar Round Table Foundation Hall and, possibly, Mitchell Hall. It needs less space because virtually all courses are now taught using distance-learning technology and practices, spokesman Eric B. Gordon said.

"This is the type of property that becomes available once in a generation... . We're looking for a buyer with a 50- to 100-year time horizon who is willing to pay a premium price." said Peter Stevens, senior vice president for investment sales at CB Richard Ellis Inc., the real estate firm hired to handle the deal. Stevens would not discuss the hoped-for price.

The college offers master's degrees and certification programs in financial-services fields, and it is looking for a buyer who would be a good neighbor. Sphere: Related Content

Safeco Agrees to $210 Million Sale & Short Term Leaseback of Office Campus Near Seattle

Puget Sound Business Journal - Jamuary 18, 2006

Microsoft is planning to buy Safeco's old space in Redmond. In a Jan. 13 SEC filing, Safeco Corp. (NASDAQ: SAFC) said it had reached a tentative agreement to sell its 40-acre Redmond campus to Microsoft Corp. (NASDAQ: MSFT) for $209.5 million. Safeco expects to realize a pre-tax gain on the sale of approximately $29 million.

Under the terms of the agreement, Seattle-based Safeco's wholly owned subsidiary General America Corp. can end the deal at any time before April 13 should Safeco determine it won't proceed with a proposed, 260,000-square-foot expansion of its headquarters in Seattle's University District. Additionally, either party has the right to terminate the agreement if Safeco is unable to get construction permits for the proposed office project by Jan. 13, 2007.

The planned sale does not include Safeco's data center on the Redmond campus, which is located on 154th Place Northeast in Redmond.
After the sale closes, General America Corp. will lease a portion of the campus for up to three years to allow Safeco time to complete its headquarters expansion and relocate its approximately 1,350 Redmond employees to Seattle. The lease includes 549,180 square feet of office space and 70,649 square feet of warehouse space.

General America has agreed to lease a 218,496-square-foot office building on Safeco's Redmond campus to Microsoft beginning next month. The lease, which will terminate on completion of the sale, can be extended if the sale does not close. Microsoft has until mid-February to complete its due diligence inspection of the Safeco property, during which time it can decide on its own whether to proceed with the purchase. Sphere: Related Content

Capital & Regional Acquires €115 Million Retail Portfolio in Germany

Capital & Regional Web Site - January 20, 2006

Capital & Regional plc, the co-investing property asset manager, today announces further acquisitions in its joint venture in Germany.
A further six "big box" out of town retail properties have been acquired for €115 million producing a net initial yield of approximately 7% after non-recoverable costs. The properties have 87,100 sq m of lettable area and tenants include Real (Metro), Wal Mart, Toom (REWE), and Plaza (CoOp).

The acquisitions have increased the portfolio to a total of 14 properties with a total floor area of 156,000 sq m and a total investment of €226 million. The portfolio is being managed by the Hahn Group which has a 10% share in the joint venture. Sphere: Related Content

Legal & General Divisional HQ in UK Sold for £73 Million

Freeman News - January 17, 2006

A subsidiary of The British Land Co plc has sold its interest in Legal & General House, Kingswood, Surrey for approximately £73.6m.

The property is let in its entirety to Legal & General Assurance Society Ltd. for a 20 year term from August 2005 with 5 yearly rent reviews. It comprises a well located and impressive headquarters complex with circa. 259,000 sq. ft. of offices set in 43 acres and within 5 miles of Junction 8 of the M25.
The marketing of the investment produced considerable domestic and international interest and has been acquired from British Land by Kingswood Property Holdings, with funding from The Royal Bank of Scotland plc. The sale price, above book value, reflects an initial yield to the purchasers of 3.9%, rising to 5.62% in April 2008.

Colliers CRE and Smee Associates acted for the vendor, advised by Nabarro Nathanson. DTZ Debenhams Tie Leung represented the purchaser, with legal advice from Clifford Chance LLP. Carey Olsen advised on Jersey aspects of the transaction. Sphere: Related Content

British Land Plans 750 Million Supermarket Portfolio Refinancing

British Land Web Site - January 18, 2006

British Land Co PLC said it is proposing to refinance its existing superstore portfolio which is securitised through Werretown Supermarkets Securitisations PLC.

The proposed refinancing, which unlocks value for both British Land and existing bondholders, is expected to amount to 750 mln stg and includes 52 mln stg in new floating rate bonds.

The new financing is expected to have a weighted average interest rate of about 4.9 pct, the company said. Sphere: Related Content

Benderson Sells Ground Leased to 22 Eckerd Drug Stores

Buffalo Business First - January 21, 2006

Inland Western New York Portfolio LLC, an affiliate of the Chicago-based Inland Real Estate Group of Cos. Inc., acquired 22 properties, mostly Eckerd pharmacies, from Benderson Development Co. It is a follow-up to a 2003 deal that also saw Benderson sell a number of Eckerd properties to Inland including four in the immediate Buffalo Niagara region.

The properties include Eckerd pharmacy real estate along Sheridan Drive and Transit Road in the Town of Amherst, Main Street in Buffalo, Union Road in Cheektowaga and Transit Road in the Town of Lancaster. Outside of the region, the deal includes real estate in such locations as Liverpool, Saratoga and Newburg, said Daryl Cater, Inland spokesman.

Under the terms of the deal, Inland acquired the real estate where the pharmacies sit but Eckerd retains ownership of the buildings Sphere: Related Content

Corporate and Government Sale Leasebacks Deals Surging in Europe

A special Property Report in the January 11, 2006 issue of The Wall Street Journal Europe reports that a number of sizable corporate and government property portfolios are up for grabs, particularly in Italy, Belgium and France.

Leading the way is Comit, the former pension fund of Banca Commerciale Italiana, which is part of Italian bank Intesa Group. First-round bids for a portfolio of Comit's real-estate assets are due by the end of this month. The portfolio is expected to include trophy offices in Milan, bank branches it will lease back, and a residential component. The portfolio is expected to fetch a price in the region of 700 million euros [$846 million]

Italy's government is disposing of real-estate assets to narrow its budget deficit. In December, the government set up a real-estate fund, Patrimonio 1, into which it has put real-estate assets such as a police barracks, with an estimated value of 800 million euros. The move is part of Italy's strategy announced in September to sell 3 billion euros of real estate by the end of 2007. Last month, the disposal program began, with the government selling a portfolio largely comprising offices in Rome and Milan, to Fintecna SpA -- a company controlled by the Ministry of Finance, and which has a role in managing real-estate assets -- for around 400 million euros. Another 600 million euros of real-estate is expected to be sold to Fintecna, probably this year, with another 1.5 billion euros of assets being sold to Patrimonio 1 or a new public fund of a similar nature to Patrimonio.

Italian corporations are getting in on the act. Telecom Italia SpA agreed last month to sell 900 properties, mainly offices, to a joint venture between Morgan Stanley Real Estate Funds, part of U.S. investment bank Morgan Stanley, and Pirelli Real Estate for 790 million euros. The deal is expected to close by June. Pirelli Real Estate is 51%-owned by Italian tire maker and broadband-solutions developer Pirelli & C. SpA.

Belgium saw a slew of real-estate sales last month, with state entities selling 20 properties, with an estimated value of 250 million euros, according to Maxime Xantippe, a partner at advisory firm CB Richard Ellis in Brussels. Belgium's federal government sold a 47,000-square-meter office in Brussels's city center for 37 million euros to real-estate company Cie. Immobiliere de Belgique SA.

Also in December, the Belgian government sold the 72,000-square-meter Court of Justice in Antwerp to Belgian-listed real-estate company Cofinimmo SA for a sum that wasn't disclosed. Real-estate experts say it is likely to have sold for around 180 million euros. Belgium will lease the court back from Cofinimmo for 36 years, with an option to continue leasing.

In France last year, the government fell short of its target of selling as much as 850 million euros of real-estate assets, disposing of just 600 million euros. This year, the government intends to dispose of another 600 million euros in real-estate assets. Sphere: Related Content

DBS Bank To Sell and Leaseback Hong Kong Office Building

Yahoo / Dow Jones - January 16, 2006

DBS Bank (Hong Kong) Ltd., the Hong Kong arm of Singapore's DBS Group Holdings Ltd. (D05.SG), said it will auction the office building it now occupies in Hong Kong's Central district. DBS Bank plans to lease back the 23-story building for six years after the sale, the company said in a statement Sunday. DBS is the sole occupant of the building, which has a gross floor area of 90,703 square feet.

Bids for the building are due by Feb. 22 and the sale is expected to be completed in May, the bank said. DBS said the sale and leaseback arrangement is intended 'to enhance the efficiency of the bank's balance sheet and to re-deploy funds for further expansion in the growing Asia market.' DBS also recently sold its Shenton Way office building in Singapore to a group of funds managed by Goldman Sachs. Sphere: Related Content

Quiksilver Signs Long Term Lease for 683,000 SF Warehouse

GlobeSt.com - January 13, 2006

Quiksilver, the Huntington Beach-based marketer of sports equipment and clothing, has signed a long-term lease for a new 683,000-sf distribution facility that is under construction here, according to Joe Miller of the Anaheim office of Voit Commercial Brokerage. Miller, who represented Quiksilver along with Voit's Rob Socci in the Anaheim Metro office, says this marks the first time that the Huntington Beach-based company has separated its warehouse and office operations.

The new Quiksilver warehouse is at 11310 Cantu Galleano Ranch Rd. and is a development of Atlanta-based Industrial Developments International, which was represented by Bill Heim and Michael Chavez of Lee & Associates. Miller tells GlobeSt.com that Quiksilver most likely will move into the new warehouse in April or May. The new building will primarily be used to distribute footwear.

Terms of the lease were not disclosed. Asking rates for comparable warehouse and distribution space run about 33 cents to 38 cents per sf per month, triple-net. The direct vacancy rate dipped below 3% in the fourth quarter of 2005, and the Inland Empire market finished the year with absorption of more than 23 million sf of space, up from about 20 million sf the previous year. Sphere: Related Content

DHL Signs 20-Year Lease for $181 Million Manhattan Service Center

Crain's New York - January 11, 2006

Delivery company DHL plans to spend $181 million to build its largest U.S. service center in Manhattan, a step to compete for the area's express shipping market. The $181 million includes construction, the lease and other capital expenditures.

The new 161,125-square-foot center at 500 Tenth Avenue and West 38th Street will handle pickup, delivery and sorting operations 24 hours a day during the workweek and until 6 p.m. on Saturday. DHL signed a 20-year lease to build the facility, which will consolidate two existing service centers and increase handling capacity by 50%, to 15,000 letter and parcel shipments per hour. Construction will start next month and the facility, which will initially operate with 400 employees, will be fully operational in May, the company said. Studley Inc. represented DHL in the deal.

Germany-based DHL competes with Federal Express, United Parcel Service and the U.S. Postal Service. All aim for more market share by offering better services and more options, like online tracking and shipping orders. Sphere: Related Content

HSBC Holdings PLC Signs Long Term Lease for New HQ Near Chicago

Chicago Sun Times - January 10, 2006

HSBC Holdings PLC said Monday it has picked the Lake County town Mettawa as the site for its new corporate headquarters. HSBC, which owns the Household Finance operation, said it will move to 28 acres along Interstate 94 starting in early 2008. The move will let the company consolidate about 2,400 workers now at four locations, the biggest of which is the current headquarters at 2700 Sanders Rd. in Prospect Heights. HSBC, which also operates the Beneficial brand, has about 6,100 employees in the Chicago area.

Spokeswoman Anita Black said HSBC signed a 13-year lease with a renewal option for the northwest corner of I-94 and Town Line Road. Itasca-based developer Hamilton Partners owns the empty site and plans a 440,000-square-foot building for HSBC. Black said the company is moving to put its work force together and because it needed modern space. Other company locations to be phased out after the move include two in Mount Prospect and one in Deerfield, she said.

With ample space available in a sluggish suburban leasing market, many developers wooed London-based HSBC. The company said it evaluated more than 50 locations in Lake and northern Cook counties. Sphere: Related Content

Four Seasons Health Care Plans Portfolio Sale Leaseback in UK

The Sunday Times - January 08, 2006

The owner of one of Britain's largest nursing-home operators is preparing a £1 billion refinancing of its business. Allianz Capital, the private-equity group, has hired Dresdner Kleinwort Wasserstein, the investment bank, to oversee the refinancing of Four Seasons Health Care, which it acquired for £775m less than two years ago.

The refinancing, which could be followed by an auction or flotation of Four Seasons’ operating business later this year, is likely to be based on an extensive sale and leaseback of the group’s property portfolio. Four Seasons runs 440 homes and a chain of psychiatric hospitals across Britain and employs more than 21,000 people.

Allianz’s plans have emerged amid a continuing flurry of activity in the care-homes sector. Last weekend, The Sunday Times revealed Blackstone, the private-equity group, is plotting a flotation of Southern Cross. Buyout groups are attracted to the sector because it offers stable cashflows, buoyed by demographic trends that mean a growing proportion of the population is relying on nursing care. But the big profits have come from the soaring value of the property estates. Allianz is one of the big beneficiaries of this trend and it stands to bank a big profit. However, a number of its homes are tied up in securitisation deals and it will have to pay a fee to extricate itself. Sphere: Related Content

Crate & Barrel Completes $40 Million Sale Leaseback of Headquarters

Chicago Tribune - January 4, 2006

New York investor Lloyd Goldman has completed a $40 million sale/leaseback deal for the Northbrook headquarters of Crate & Barrel Inc., according to property records filed last month. Goldman is best known as the lead financial partner in plans to rebuild the World Trade Center site.

The housewares retailer had been seeking a long-term agreement for the 159,500-square-foot building at 1250 Techny Rd., with an initial annual rent of $2.4 million, not including taxes and operating expenses. The transaction allows Crate to free up capital, said a spokeswoman, who declined to comment on the financial terms but said the company signed a 20-year lease.

Chicago-based U.S. Equities Realty LLC and New York-based Sonnenblick-Goldman Co. represented Crate. Sphere: Related Content

Allstate Insurance Completes $59 Million Sale Leaseback of Three Office Buildings

Commercial Real Estate Direct - December 28, 2005

Capital Lease Funding has paid $59 million for a portfolio of three office properties totaling 377,500 square feet. The New York REIT purchased the properties from Allstate Insurance in a sale-leaseback transaction. Allstate, a Northbrook, Ill., insurance firm, placed the buildings on the sales block in September as part of a 1 million-sf portfolio offered through Colliers Bennett & Khanweiler Inc.

Under the terms of the agreement, Allstate will retain its current space in the buildings through December 2015 and is responsible for properties' operating costs. The total amount of space occupied by Allstate in the buildings is not known, but believed to be significant. All three properties are leased to multiple tenants.

The properties included in this sale are:

• 401 McCullough Drive, with 192,000 sf in Charlotte, N.C.;
• 1819 Electric Road, with 166,000 sf in Roanoke, Va., and
• 1721 Cochran Road, with 19,500 sf in Pittsburgh.

CapLease funded the purchase by placing $41.7 million in mortgage debt on the Charlotte and Roanoke properties. The financing package carries a fixed-rate of 5.68 percent and will mature in January 2016. It also includes a 36 month interest-only period. Sphere: Related Content

Ramirent Agrees to Sale Leaseback of 18 Rental Stores

Vertikal.net - December 28, 2005

Ramirent AB, the Swedish affiliate of Finnish based Ramirent plc, one of Europe's top five rental companies, has agreed a sale and leaseback deal on 18 of its Swedish locations.

The buyer is Kungsleden AB, a property company, which has agreed to pay a total price of SEK 186(£13.5) million. The book value of the real estate is SEK 110(£8) million, although non-recurring costs related to the deal are expected to total approximately SEK 25(£1.8) million. Giving Rami a gain of 51(£3.7) million SEK.

Ramirent will continue as the leaseholder on an operating lease basis for each of the properties. The duration of the lease agreements ranges from two to 10 years. The deal will be closed in January 2006. Sphere: Related Content

Tower Completes Sale Leaseback of Sydney HQ for $47.5 Million

December 19, 2005

In a move away from investing in direct property assets, financial services provider Tower Limited has sold its Milsons Point office building in North Sydney to Australand Holdings Limited for $47.5 million. The company will in future focus investment on a spread of property securities.

Tower has negotiated an eight year lease back term at the property, located at 80 Alfred Street in Milsons Point, directly opposite Milsons Point railway station. The company currently occupies over 60% of the total office area, which is 100% tenanted.

The building comprises three retail shops, four levels of basement car parking and 13 levels of office accommodation, incorporating 10,271 sqm of commercial space. It was completed in 1971 and was extensively refurbished in the mid nineties. Australand have acquired the asset on an initial yield of almost 8%, with potential for long term development. Sphere: Related Content

Wal-Mart.com HQ Near San Francisco Sells for $79 Million

GlobeSt.com - December 21, 2005

Two adjacent class A office buildings here that are fully leased to Wal-Mart Stores Inc. have changed hands for $79 million or $472.55 per sf, local real estate sources tell GlobeSt.com. San Francisco-based private fund sponsor Shorenstein Properties LLC acquired the 167,000-sf package from Redwood City, CA-based Foster Enterprises.

The buildings are known by their addresses, 5000 and 7000 Marina Blvd. The
property includes 473 surface parking spaces and is located within Sierra Point,
a 102-acre master-planned commercial business park located adjacent to Highway
101 and surrounded on three sides by the San Francisco Bay.

The Wal-Mart lease runs through 2012. Wal-Mart keeps the headquarters for its online division in the buildings, but also subleases some of the space. Local industry sources tell GlobeSt.com that Wal-Mart leased the building at the top of the market, which would help explain the relatively high purchase price. One source says the rent may be enough for Shorenstein to get back the cash in the deal during Wal-Mart's term, but that Shorenstein may seek to negotiate a blend-and-extend deal with Wal-Mart and then re-trade it after a few years.

The larger of the two is 7000 Marina Boulevard, which is a five-story building completed in 1986. The building at 5000 Marina Blvd. is a three-story building that was completed in 2000. The older building was first built as the headquarters for a toy company and then later by Good Guys. Wal-Mart came along shortly after the newer building was completed. Sphere: Related Content

Accor to Sell and Lease Back 80 Hotels Worldwide in 2006

Bloomberg - December 26, 2005

Accor SA, the world's fourth-largest hotel company, intends to sell and lease back 80 hotels next year as part a plan to raise cash to step up expansion in countries including Russia and China. The transactions will follow the divestment of 128 hotels in 2005 and mean the Paris-based hotelier is on track with its plan to raise a total of 400 million euros ($474 million) by tapping its real estate holdings, said a spokeswoman, who declined to be named, confirming a report in Le Figaro newspaper.

Accor, which plans to install Gilles Pelisson as chief executive next month, wants to accelerate growth by increasing the number of hotel rooms it runs by 20 percent to 550,000 by 2008. Reducing the capital tied up in real estate is key to funding the expansion, analysts have said.

"The entire hotel industry is selling property to fund growth," said Yves Marchal, head of the French unit of real estate consultant Jones Lang LaSalle, in an interview earlier this month. Accor shares have gained 42 percent this year, buoyed in part by its divestment plan. Accor had net debt of 2.2 billion euros at the end of last year, equivalent to about twice its operating profit.

The properties to be sold in 2006 are Novotel and Mercure units, Accor's mid-market brands. Sphere: Related Content

BVIC Group Signs 59 Million Euro Sale Leaseback of Retail Center in Greece

BVIC Group We Site - December 28, 2005

BVIC Group is pleased to announce that it has signed a EUR 59 million sale and leaseback agreement with Alpha Leasing. The 13-year sale and leaseback agreement covers 94% of the total lettable and common area, as well as 100% of the parking spaces at the leisure and retail development under construction at Delta Falirou. The contract refers to 13,369 sqm of leisure and retail space and 1,204 sqm of storage space, as well as 738 parking spaces. The total of the lettable space covered by the sale and leaseback agreement has already been leased by BVIC Group to Village Roadshow, and Media Markt, and all of the parking spaces have been leased to a parking station operator. We expect the remaining 6% of common and lettable area, to be let well before the centre opens in mid 2006. Sphere: Related Content

Marriott Sells Land Under 75 Hotels

Marriott International Web Site - December 30, 2005

Marriott International, Inc. (NYSE:MAR) announced today that it has completed the sale of a portfolio of land underlying 75 Courtyard by Marriott hotels for approximately $246 million in cash to CBM Land Joint Venture limited partnership (CBM Land JV). CBM Land JV is a joint venture majority- owned by Sarofim Realty Advisors (Sarofim), on behalf of an institutional investor. In addition, Marriott announced that it has contributed land underlying an additional 9 Courtyard hotels, worth approximately $40 million, to CBM Land JV, thereby retaining an approximately 23 percent equity stake in CBM Land JV.

Arne M. Sorenson, Marriott's executive vice president and chief financial officer, and president of continental European lodging, said, "We are pleased to conclude a transaction that both meaningfully benefits our return on invested capital moving forward and aligns well with our strategy of creating value through managing hotels rather than owning real estate."

The 84 parcels of land continue to be leased to the Courtyard by Marriott Joint Venture, which was substantially acquired by Sarofim Realty Advisors for the same institutional client on March 29, 2005. That acquisition recapitalized that joint venture and accelerated the reinvention of its 120 Courtyard hotels. Similar to today’s announcement, in that transaction Marriott agreed to maintain a minority ownership stake in that joint venture for at least three years. Sphere: Related Content

MAS May Sell & Leaseback HQ in Kuala Lumpur

The Star - December 24, 2005

Malaysian Airlines System Bhd (MAS) may sell and leaseback it's 35 story headquarters building, Bangunan MAS, in Kuala Lumpur and other properties to address its financial needs as it tries to make a turnaround, a company spokesman said. The Government, through various state entities, owns about 92% of MAS, which includes a 69.3% stake held indirectly by state investment agency Khazanah Nasional Bhd. This option was considered during its widespread asset unbundling or WAU exercise in 2002, in which the building was to be sold and leased back to Assets Global Network Sdn Bhd, a subsidiary of Ministry of Finance Inc. Sphere: Related Content

Farmers Insurance to Sell & Leaseback Headquarters in Washington

Businesswire - December 22, 2005

Farmers New World Life Insurance Company, the nation's third-largest personal lines property & casualty insurance group, announced today the sale of its headquarters property at 3003 77th Avenue S.E. on Mercer Island, Washington. Farmers has committed to a lease back of the property for 15 years. The decision to sell the building is part of Farmers' continued efforts to enhance operating efficiency and follows similar real estate transactions at other locations. For example, Farmers recently sold its Home Office headquarters complex in Los Angeles but leased the complex back on a long-term basis.

Farmers, which has a long history in the Seattle area, remains committed to the Mercer Island area for its life insurance company operations. The life company currently serves life insurance customers in 41 states. Farmers Life employs 550 people at its Mercer Island headquarters. Sphere: Related Content

Valtur Enters Euro 103 Million Sale Leaseback of Four Tourist Vllages

Pirelli Real Estate Web Site - December 23 2005

Pirelli RE has signed a binding agreement with Valtur for the acquisition of four tourist villages for an overall value of Euro 103 million, located in Marilleva, Pila, Nicotera and Ostuni. The transaction will take place through a real estate fund reserved for institutional investors; Pirelli RE will hold a share of 35%, in line with its business model (which envisages investments through qualified minority shareholdings), and will provide all the property services for the assets purchased.

Over the next two years investments of around Euro 12 million are planned for the development of the structures: 50% by the fund and 50% by Valtur. The latter will continue to manage the villages under an 18 years leasing contract, renewable for a further nine years. The closing of the transaction is expected by March 2006.

The Marilleva and Pila facilities, in Trentino and Valle d’Aosta respectively, each have an accommodation capacity of around 260 apartments and offer direct access to the ski lifts. The first covers an area of 10,000 sq m and the second an area of 13,000 sq m. The other two villages purchased, located near the sea at Ostuni, in Apulia, and Nicotera, in Calabria, have an accommodation capacity of 470 and 290 apartments respectively. The Ostuni village, the biggest in Valtur’s Italian chain, covers an area of 500,000 sq m, together with an additional 600,000 sq m for the property’s green spaces. Nicotera covers an area of 143,000 sq m.

The transaction, financed by Banca Intesa, is Pirelli RE’s first significantly large purchase in the tourism sector after several small investments, and follows the investment in a 25% share of Turismo & Immobiliare, a company which holds 49% of the share capital of Italia Turismo. Sphere: Related Content

UNITE Enters £64 Million Sale Leaseback of Student Housing Properties

Freeman News / AFX - December 19, 2005

UNITE Group plc has completed the sale of a property unit trust which owns three student accommodation buildings operated by UNITE, to Savills plc, for £64.1m in cash. The amount is equivalent to a 5.22% net initial yield. Under the terms of the deal, UNITE will retain full responsibility for the management of the buildings, as well as a share in the net income after management costs. UNITE will retain approximately 23% of the gross rents after paying rent of £3.4m per year to the fund under three long-term leases.

The properties, all purpose-built in the past three years, are located in Bournemouth, Bath and Portsmouth and provide 1,561 bed spaces, representing about 5% of UNITE's portfolio. UNITE said it will use most of the proceeds to repay borrowings, with the remaining capital of approximately £17m to be reinvested into the group's development activities. Sphere: Related Content

Apple Signs 20 Year Net Lease in Manhattan

iPodNN - December 19, 2005

Apple has found yet another retail store location in Manhattan, after it was unable to obtain approval for a location in Flatiron district earlier this year. Apple has reportedly "net-leased the entire, 30,000-foot five-story building from Jeff Sutton of Wharton Realty and his partner, SL Green Realty Trust," according to a report in the New York Post.

The upcoming retail location on West 34th street will be the third retail location in the lucrative Manhattan market, as the company finalized a second location earlier this year. Apple next spring will open a second 20,000-square-foot retail store in the underground concourse of the General Motors building near Midtown. That lease was finally signed after Jobs negotiated to keep the giant $9 million 32-foot hollow glass cube that he designed, following the expiration of the 20-year store lease. Sphere: Related Content

Net Leased Nestle Warehouse Portfolio Sold for $141.5 Million

CoStar Web Site - December 19, 2005

H&R REIT of Ontario, Canada purchased three industrial buildings in Atlanta, GA, Chicago, IL, and Fort Worth, TX from The Cardinal Co. and its affiliates for approximately $141.5 million, or about $64 per square foot. All three industrial buildings are leased to Nestlé USA Inc. at an average of 12 years.

The buildings acquired in the sale are at 1 Nestlé Court in McDonough, GA (782,565 square feet), 800 Nestlé Court in DeKalb, IL (860,939 square feet) and 13600 Independence Parkway in Fort Worth (524,252 square feet).

Terry Reitz, Kevin Shannon, Bruce Granger, Gary Lindsey and Dave Watson of Grubb & Ellis, along with Asher Hyman of Corvest Realty Group, represented the seller. The buyer had in-house representation. Sphere: Related Content

Alstom Power Enters 24.5 Million Euro Sale Leaseback of HQ

Slough Estate Web Site - December 21, 2005

Slough Estates International has entered into a sale and leaseback transaction to acquire the headquarters of Alstom Power (part of the French industrial group Alstom) in La Courneuve, Ile de France, immediately to the north of Paris for €24.5M, net of acquisition costs.

The 10.9ha property provides 53,000m² of office and light industrial accommodation which Alstom have leased back for a 9 year fixed term at an annual rent of €1.4M. Included in the sale is a 4.4ha prime industrial site with substantial frontage onto the A86 motorway (the second Paris ring road) - this represents a development opportunity for the provision of new light industrial accommodation.

The sale and leaseback element of the transaction reflects a net initial yield of 7.5% excluding the development site as at market value. Sphere: Related Content

Dresdner Bank Agrees to $2.4 Billion Sale Leaseback of Property Portfolio

Eurocastle Web Site - December 22, 2005

Eurocastle Investment Limited (Euronext Amsterdam: ECT),which is managed by Fortress Investment Group LLC, today announced that it has signed a definitive agreement with Dresdner Bank AG to acquire 100% of an open-end fund which owns a portfolio of 303 commercial properties for approximately €2 billion. The properties consist primarily of office buildings and are largely occupied by Dresdner. The bank will continue to occupy their current space which represents approximately 80% of rental income on the portfolio. Dresdner’s average remaining lease term is 9 years, while the average
remaining lease term of the entire portfolio is approximately 8 years. Approximately 15% of the portfolio is currently vacant.

The properties, totaling approximately 9 million square feet (845,516 square meters) of leasable space, are located throughout Germany, with concentrations in Frankfurt, Hamburg, Munich, Düsseldorf and Berlin. The assets are generally in major metropolitan areas and Eurocastle believes that the properties are among the best-located and highest quality assets in their respective markets. The purchase reflects an unleveraged initial yield of approximately 5%.

(Seperate media sources reported that Australia's Babcock and Brown and investment bank Morgan Stanley with its German partner DIC were also shortlisted in the bidding for the 300 property portfolio.) Sphere: Related Content

Israeli Government Housing Administration Planning Sale Leaseback Deals

Globes Online - December 18, 2005

The Government Housing Administration plans to exercise its option to buy the Beersheva government complex from Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) for $60 million, and assume ownership of the property in November 2007.

The deal involves 28,000 sq.m. in four buildings: 22,000 sq.m. leases to the state at $11 per sq.m. per month, and 6,000 sq.m. in commercial space. Ashtrom Properties Ltd. (TASE:ASPR) and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE:HUCN) subsidiary Secom (Israel) Ltd. built the Beersheva government complex in the late 1990s. Migdal bought the office buildings from Ashtrom in 2003 for $43 million. Ashtrom and Secom still own the commercial space.

The state intends to exploit the difference between interest rates and returns to buy the government complex at a return of 9%, and sell it immediately afterwards, thereby making an additional profit. Under the terms of the contract between the state and Migdal, the state has the right to exercise the option only in November 2007.

The Government Housing Administration is now publishing tenders to sell the four buildings. If it receives no worthwhile offers, it will forego the option, and continue to rent the properties from Migdal. If a new buyer is found, the government will rent the properties in a 20-year lease with a three-year option.

The Government Housing Administration is planning similar deals for the government complexes in Haifa, Ramle and Tel Aviv. The states rents the Tel Aviv government complex from Half Jubilee Ltd., a subsidiary of Africa-Israel Investments Ltd. Sphere: Related Content

Fitch Rates Securitization of $767 Million in Single Tenant Loans

Business Wire - December 15, 2005

Fitch Ratings has rated GE Business Loan Trust 2005-2, a securitization of 341 business loans made to 301 borrowers. The loans were originated by GE Commercial Finance Business Property Corporation (GECF) and the Small Business Finance (SBF) lending division of General Electric Capital Corporation (GECC).

The $767 million underlying collateral pool consists of approximately $500 million (65.2%) of conventional business loans originated by GECF and approximately $267 million (34.8%) of SBA 504 loans originated by SBF. The loans are secured by first liens on owner-occupied or single tenant retail, office, industrial, or other commercial real estate. The pool is diversified geographically, with loans from 41 states.

This transaction represents the sixth term securitization of loans originated by the GECF and SBF business units. Sphere: Related Content

CVS Completes $386 Million Sale Leaseback of 110 Drug Stores

Moody's Investor Service - December 15, 2005

Based on information received through December 14, Moody's Investors Service assigns a provisional (P) A3 rating to approximately $386.1 million of Certificates to be issued by a trust that will acquire 110 first-priority lien commercial mortgage, credit-tenant lease loans. The loans will be secured by newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS Corporation. Each of the leases will be bondable and guaranteed by CVS Corporation, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2028. Fixed net rent under the leases, plus a pre-funded interest reserve, will be sufficient to pay in full all interest and principal of the loans. The 110 drugstores are located in 26 states.

Moody's determined that, among other factors, the dark value of the collateral is sufficient, assuming a bankruptcy of CVS and rejection of the leases, to support the expected loss consistent with the Certificates' rating. The rating
of the Certificates is primarily based on the senior unsecured debt rating of CVS Corporation, which is currently A3, stable outlook; therefore, the Certificates' rating will change as the senior unsecured debt rating of CVS Corporation may change. The rating of the Certificates was also based on the overall structure and legal integrity of the transaction. Sphere: Related Content

Boulder Net Lease Funds Publishes 4th Quarter Net Lease Market Research Report

Boulder Net Lease Funds Web Site - December 06, 2005

Boulder Net Lease Funds, LLC has released a new research report providing comprehensive numbers and analysis of the 4th Quarter activity in the Net Lease Market. As of mid November 2005, Boulder Net Lease Funds is currently tracking 7,348 available net lease properties nationwide which have a combined value in excess of $24.6 Billion. The report covers the office, industrial and retail sectors of the Net Leased Market and breaks down the Net Lease Market by Sector, State, CAP Rate, Pricing and Price Per Foot. Sphere: Related Content

British Govt. Seeking $346 Million Sale Leasebback of Northern Ireland Property Portfolio

Offshore Outsourcing World Blog / Outsource 360 - December 9, 2005

The British government has launched the phased sale of its run-down 3.8-million-sf estate in Northern Ireland. Northern Ireland Civil Service has published an invitation for expressions of interest in the euro 2.2-billion ($2.6-billion) outsourcing contract in the Official Journal of the European Union.

The single contract will involve the private sector buying and leasing back operational property, disposing of redundant buildings, refurbishing retained property and managing the facilities on those properties leased back to the government. Effectively, the government is outsourcing estate, building and facilities management to the private sector. The advertisement states that the Department of Finance and Personnel will brief interested parties in Belfast on Dec. 8. They will then have until January 23 to submit preliminary proposals. Officials will then select three or four prospective partners to draw up more detailed proposals. The aim is to award the contract by the end of next year.

UK-based Land Securities Trillium and Mapeley are expected to prepare joint bids with Irish investors and developers. The portfolio comprises 56 freeholds totalling 2.2 million sf and valued at euro 295 million ($346 million). Lease liabilities on 24 properties totalling 830,000 sf will also be transferred. A further 122 buildings could be transferred in phase two. The properties include 28 core offices in Belfast and the regions; 35 Jobs and Benefits Offices; and 17 Belfast offices that the civil service wants to vacate. But the estate needs extensive refurbishment and will cost the partner an estimated euro 155 million ($133 million) in annual running costs. The successful bidder will also be required to develop a new 50,000-sf office on the Stormont Estate as well as take responsibility for the facilities management of the entire 3.8 million sf estate. Sphere: Related Content

RadioShack Enters $220 Sale Leaseback of HQ

SEC Edgar Database - December 16, 2005

RadioShack Corporation has entered into a purchase and sale agreement with Kan Am Grund Kapitalanlagegesellschaft mbH to sell and lease back its corporate headquarters in Fort Worth, Texas. RadioShack currently expects that its net proceeds, after transaction and other related costs, will be approximately $220 million. RadioShack currently expects that the purchase and sale agreement will close on or about December 21, 2005.

RadioShack will enter into a 20-year triple-net lease agreement with the Purchaser. RadioShack has four five-year options to renew the lease agreement. Base annual rent for the primary term of the lease will initially be approximately $14.1 million and will increase by 1.25% per year. RadioShack will be required to post a $5 million letter of credit at the closing of the lease and to maintain the letter of credit during the term of the lease. RadioShack will be required pay all of the costs associated with the operation of the facilities, including costs such as insurance, taxes and maintenance.
Sphere: Related Content

IBM Completes Sale Leaseback of £120 Million UK Office Portfolio

Propertymall.com - December 7, 2005

The Highcross Fund has completed the purchase of IBM's sale and leaseback portfolio marketed earlier this year with offers being sought in excess of £120 million. The portfolio comprises three purpose-built business parks in Portsmouth, Warwick and Greenock and a two-storey data centre in Greenford. The sites total approximately 1,645,490 sq ft (152,866 sq m). IBM has taken the space for fifteen years, with break clauses in the tenth year and options to extend. Atisreal acted for IBM and Morgan & Co advised The Highcross Fund. Sphere: Related Content

Financial Services Authority HQ in London Sold for £191 Million

Freeman News / AFX - December 06, 2005

Songbird Estates plc's main operating unit, Canary Wharf Group plc, is selling long leasehold interests in 25 North Colonnade to Evans Randall, a privately held investment bank, for £191m. The selling price provides a net yield of 5.2%. The property is let to the Financial Services Authority until 2018 and current rent passing is £9.99m per annum. Canary Wharf is providing rental support of £0.46m until November 2006 and then £0.26m until November 2007, when the rental support will end. The property has been valued at £180m as at end June, the company statement added." Sphere: Related Content

State Street Bank to Lease New UK HQ at Canary Wharf

The Wharf - December 15, 2005

State Street Bank has agreed to heads of terms with Canary Wharf Group (CWG) on a new 300,000 sq ft headquarters to be built at Churchill Place. Construction is to begin on the 12-storey building opposite Barclays HQ, in the new year. The Wharf has previously reported on speculation that the firm, which occupies eight floors in the tower, would be moving. Neither State Street nor CWG would comment on the possible move, but a source close to the deal told The Wharf: "They're taking the building." State Street moved into One Canada Square in August 1991 and has seen staff numbers growing from around 100 to nearly 1,000 in the past 14 years. Sphere: Related Content

Lietuvos Telekomas' Group Agrees to Sale Leaseback of Lithuanian Property Portfolio

Lietuvos Telekomas Web Site - December 8, 2005

On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.

According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.

AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content

Deutsche Telekom Completes $33 Million Sale Leaseback of Three Office Buildings in Frankfurt

Globes Online - December 11,2005

A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.

Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content

Kesko Group Weighing Sale Leaseback of 100 Properties in Finland

Kesko Web Site - December 5, 2005

Kesko Group has started negotiations concerning the sale and leaseback of about one hundred properties located in Finland. The properties are currently used by Kesko's division parent companies and their total area is approximately 200,000 m2. The sale is aimed at enhancing the use of the Group's capital. The deal is intended for conclusion during 2006.

With nearly 3,000 stores totalling almost 2.9 million sq meters, Kesko is the leading retailer in Finland and among the largest companies on the Helsinki Stock Exchange. Established in 1940, it operates throughout the Baltic States and Scandinavian countries. The Group’s sales amounted to EUR 7.6bn in 2004. Sphere: Related Content