Yorkshire Post - March 24, 2006
Holiday firm WA Shearings has sold a portfolio of 39 of its UK hotels in a sale and leaseback deal worth £110m which will allow it to pay off much of its debt. The sale to property investment firm Moorfield Group comes a year after the £200m merger of Leeds-based Coach Holiday Group owner of Wallace Arnold and Wigan rival Shearings Holidays to create Britain's biggest coach holiday operator with more than 3,000 staff, a fleet of 400 coaches and coach, air and hotel holidays to more than 170 destinations in Britain and Europe.
A team from Deloitte in Leeds advised on both the merger and the sale and leaseback deal in which other Yorkshire advisers were also involved. The deal will see WA Shearings continue to operate all of the hotels, many of which are in seaside resorts and allow it to pay off a substantial part of the debt taken on at the time of the merger.
WA Shearings has signed long- term leases on the hotels, will have full operational control over the assets and will control a £25m capital investment programme over the next five years. The trend of separation between asset ownership and operation is increasingly common within the hotel sector with Travelodge, Hilton, Thistle and Accor all completing similar transactions in the last few years.
Sphere: Related Content
Friday, March 24, 2006
Tesco Considering Spinoff of $21 Billion Supermarket Portfolio into New REIT
Reuters - March 24, 2006
Tesco Plc (TSCO.L) shares leapt to a new high on a newspaper report it was looking to extract more value from property assets, but Britain's biggest retailer said on Friday it had no immediate plans. "We are always looking at the different possibilities and of course we won't rule anything out, but there is nothing major on the cards right now," Tesco spokesman Jonathan Church said.
Tesco shares jumped almost 5 percent to a new high of 351 pence in early trade after the Daily Telegraph quoted Finance Director Andrew Higginson as saying the supermarket giant would look at placing its 12-billion-pound ($21 billion) freehold property into a real estate investment trust (REIT).
This would allow Tesco to place its property into a separately quoted vehicle and use money raised from selling shares in that entity to buy back its shares, the paper said. "We're obviously interested (in REITs) in the sense that we're a big property company," the Daily Telegraph quoted Tesco's Higginson as saying. "We've got people looking at whether it's a good idea."
Private equity firms have long been attracted to buying retailers to tap the value of their property portfolios and store groups are increasingly looking at ways of extracting value themselves. Sphere: Related Content
Tesco Plc (TSCO.L) shares leapt to a new high on a newspaper report it was looking to extract more value from property assets, but Britain's biggest retailer said on Friday it had no immediate plans. "We are always looking at the different possibilities and of course we won't rule anything out, but there is nothing major on the cards right now," Tesco spokesman Jonathan Church said.
Tesco shares jumped almost 5 percent to a new high of 351 pence in early trade after the Daily Telegraph quoted Finance Director Andrew Higginson as saying the supermarket giant would look at placing its 12-billion-pound ($21 billion) freehold property into a real estate investment trust (REIT).
This would allow Tesco to place its property into a separately quoted vehicle and use money raised from selling shares in that entity to buy back its shares, the paper said. "We're obviously interested (in REITs) in the sense that we're a big property company," the Daily Telegraph quoted Tesco's Higginson as saying. "We've got people looking at whether it's a good idea."
Private equity firms have long been attracted to buying retailers to tap the value of their property portfolios and store groups are increasingly looking at ways of extracting value themselves. Sphere: Related Content
Thursday, March 23, 2006
Hearthstone Assisted Living Enters $419 Million Sale Leaseback of 32 Facilities Across US
Nationwide Healthcare Properties - March 22, 2006
Nationwide Health Properties, Inc. (NYSE: NHP) announced today that it has entered into definitive agreements for the acquisition and master leaseback of the 32-facility, ten-state real estate holdings of Hearthstone Assisted Living, Inc. The purchase price is $419 million plus an estimated $12 million of debt defeasance and closing costs. The transaction is anticipated to close by May 31, 2006.
In tandem with the transaction, Hearthstone's President and CEO Tim Hekker and partners will acquire 100% ownership of the company that will operate the Hearthstone facilities. Hearthstone's principal selling shareholders include Fremont Realty Capital, funds advised by Apax Partners, L.P. and Kosberg & Associates.
NHP will receive rent at an initial lease rate of 8.06% plus one percent annual fixed rent increases for an average rent yield of 8.66% over the 15-year initial term. NHP will also receive CPI-based annual rent increases of up to 2% of Hearthstone's annual gross revenue. At the beginning of the eighth year, the minimum rent is reset for the remainder of the initial term to the greater of fair market rent or 110% of the prior year's total rent. Hearthstone has agreed to provide NHP with an exclusive acquisition right on its next $150 million of potential new investments, as well as a right of first offer/last look on an additional $150 million of potential new investments.
The portfolio's current occupancy rate is approximately 89% and consists of 3,097 units. Hearthstone derives substantially all of its revenues from private-pay sources. The lease will provide for a $6 million security deposit. Sphere: Related Content
Nationwide Health Properties, Inc. (NYSE: NHP) announced today that it has entered into definitive agreements for the acquisition and master leaseback of the 32-facility, ten-state real estate holdings of Hearthstone Assisted Living, Inc. The purchase price is $419 million plus an estimated $12 million of debt defeasance and closing costs. The transaction is anticipated to close by May 31, 2006.
In tandem with the transaction, Hearthstone's President and CEO Tim Hekker and partners will acquire 100% ownership of the company that will operate the Hearthstone facilities. Hearthstone's principal selling shareholders include Fremont Realty Capital, funds advised by Apax Partners, L.P. and Kosberg & Associates.
NHP will receive rent at an initial lease rate of 8.06% plus one percent annual fixed rent increases for an average rent yield of 8.66% over the 15-year initial term. NHP will also receive CPI-based annual rent increases of up to 2% of Hearthstone's annual gross revenue. At the beginning of the eighth year, the minimum rent is reset for the remainder of the initial term to the greater of fair market rent or 110% of the prior year's total rent. Hearthstone has agreed to provide NHP with an exclusive acquisition right on its next $150 million of potential new investments, as well as a right of first offer/last look on an additional $150 million of potential new investments.
The portfolio's current occupancy rate is approximately 89% and consists of 3,097 units. Hearthstone derives substantially all of its revenues from private-pay sources. The lease will provide for a $6 million security deposit. Sphere: Related Content
Monday, March 20, 2006
Bursa Malaysia Considering Sale Leaseback of Kuala Lumpur Stock Exchange
TheEdgeDaily - March 20, 2006
Bursa Malaysia is considering the sale and leaseback of it's headquarters building, home of the Kuala Lumpur Stock Exchange. Bursa Malaysia is considering a return of capital to shareholders late this year, its chief executive Yusli Mohamed Yusoff said on March 20.
The Bursa's striking headquarters, built in salmon-pink stone and featuring a large courtyard fountain, is potentially up for sale and could be leased back to the exchange, Yusli said. "This is the major property that we have on our balance sheet and we are looking at the possibility of a sale and lease-back. We are still studying it and it needs to make sense for us financially. If the numbers are marginal, we may not do it."
Bursa's 2004 annual report put the total net value of lands and buildings at almost RM300 million ($81 million.) Sphere: Related Content
Bursa Malaysia is considering the sale and leaseback of it's headquarters building, home of the Kuala Lumpur Stock Exchange. Bursa Malaysia is considering a return of capital to shareholders late this year, its chief executive Yusli Mohamed Yusoff said on March 20.
The Bursa's striking headquarters, built in salmon-pink stone and featuring a large courtyard fountain, is potentially up for sale and could be leased back to the exchange, Yusli said. "This is the major property that we have on our balance sheet and we are looking at the possibility of a sale and lease-back. We are still studying it and it needs to make sense for us financially. If the numbers are marginal, we may not do it."
Bursa's 2004 annual report put the total net value of lands and buildings at almost RM300 million ($81 million.) Sphere: Related Content
Sunday, March 19, 2006
InterContinental Hotels Group Completes Eur 352 million Sale Manage-Back of 24 hotels in Continental Europe
InterContinental Hotels - March 13, 2006
InterContinental Hotels Group PLC ("IHG") today announces it has sold a portfolio of 24 hotels (4,903 rooms) to a subsidiary of Westbridge Hospitality Fund LP. Westbridge is a hospitality investment fund managed by Westmont Hospitality, one of IHG's largest franchisees. The portfolio has been sold for €352m (approximately £240m), marginally above net asset value. Proceeds to IHG in cash and debt assumption are €345.2m (before transaction costs), with the balance of €6.8m relating to third party minority interests.
The hotels have been sold to Westbridge with 15 year franchise contracts. Normalised franchise fees are expected to be approximately €4m per annum. The hotels are located in Continental Europe and operate under the Crowne Plaza, Holiday Inn, and Express by Holiday Inn brands. The transaction is expected to complete in the second quarter of 2006.
The disposals represent a continuation of IHG’s strategy to grow its managed and franchised business and reduce asset ownership. Since separation in April 2003, IHG has disposed of, or is in the process of disposing of, 175 hotels with a net asset value of more than £2.8bn. Sphere: Related Content
InterContinental Hotels Group PLC ("IHG") today announces it has sold a portfolio of 24 hotels (4,903 rooms) to a subsidiary of Westbridge Hospitality Fund LP. Westbridge is a hospitality investment fund managed by Westmont Hospitality, one of IHG's largest franchisees. The portfolio has been sold for €352m (approximately £240m), marginally above net asset value. Proceeds to IHG in cash and debt assumption are €345.2m (before transaction costs), with the balance of €6.8m relating to third party minority interests.
The hotels have been sold to Westbridge with 15 year franchise contracts. Normalised franchise fees are expected to be approximately €4m per annum. The hotels are located in Continental Europe and operate under the Crowne Plaza, Holiday Inn, and Express by Holiday Inn brands. The transaction is expected to complete in the second quarter of 2006.
The disposals represent a continuation of IHG’s strategy to grow its managed and franchised business and reduce asset ownership. Since separation in April 2003, IHG has disposed of, or is in the process of disposing of, 175 hotels with a net asset value of more than £2.8bn. Sphere: Related Content
NCC Completes $65 Million Sale Leaseback of Residential Complex in Berlin
Europe Real Estate - March 13, 2006
NCC, one of the leading construction and property development companies in the Nordic region, has concluded a sale leaseback agreement with the German finance group HSH Nordbank and their leasing affiliate AGV regarding properties in the Sonnengarten area, just outside Berlin. The sales price is approximately SEK 500 million ($65.4 million) and the parties will simultaneously sign an 18-year lease on the premises.
Sonnengarten is a well-established residential area situated in Glienicke-Nordbahn, north of Berlin and consists of approximately 30,000 square meters of residential space and 800 square meters of commercial premises distributed among a total of 23 properties. The 362 residential units and 13 commercial premises are located in a green environment, close to daycare centers, schools and the areas own shopping center. The area also has an underground car park with room for 169 vehicles.
According to the buyback option, NCC will be entitled to repurchase the entire property portfolio on predetermined terms and conditions after 10, 11 or 13 years. NCC will also have the right, but not the obligation, to repurchase the portfolio when the lease expires at the market value prevailing at that time. The sale is expected to be during the second quarter of 2006. Sphere: Related Content
NCC, one of the leading construction and property development companies in the Nordic region, has concluded a sale leaseback agreement with the German finance group HSH Nordbank and their leasing affiliate AGV regarding properties in the Sonnengarten area, just outside Berlin. The sales price is approximately SEK 500 million ($65.4 million) and the parties will simultaneously sign an 18-year lease on the premises.
Sonnengarten is a well-established residential area situated in Glienicke-Nordbahn, north of Berlin and consists of approximately 30,000 square meters of residential space and 800 square meters of commercial premises distributed among a total of 23 properties. The 362 residential units and 13 commercial premises are located in a green environment, close to daycare centers, schools and the areas own shopping center. The area also has an underground car park with room for 169 vehicles.
According to the buyback option, NCC will be entitled to repurchase the entire property portfolio on predetermined terms and conditions after 10, 11 or 13 years. NCC will also have the right, but not the obligation, to repurchase the portfolio when the lease expires at the market value prevailing at that time. The sale is expected to be during the second quarter of 2006. Sphere: Related Content
TJX Distribution Center in Philadelphia Sells for $90 Million
GlobeSt.com - March 14, 2006
Capital Lease Funding Inc. has acquired the approximately one-million-sf warehouse distribution center at 2760 Red Lion Rd. to for just over $90.1 million, or about $89 per sf. Seller Malvern-based Liberty Property Trust, which developed the property as a build-to-suit for the TJX Companies, Inc. in 2001, obtained a return of more than $41 million.
The building is fully leased to TJX Companies, Inc. (rated A/A3 by S&P/Moody's) through June 2021. The facility, which was completed in 2001, is a strategically important one to TJX Companies, Inc. as it serves as the sole tri-state distribution facility for its Marshalls stores. CapLease financed the acquisition at closing with a $71.7 million 10-year mortgage note to Wachovia Bank at a 5.57% coupon rate. The rent increases moderately for the first three years and is flat for the remaining 12 years. Sphere: Related Content
Capital Lease Funding Inc. has acquired the approximately one-million-sf warehouse distribution center at 2760 Red Lion Rd. to for just over $90.1 million, or about $89 per sf. Seller Malvern-based Liberty Property Trust, which developed the property as a build-to-suit for the TJX Companies, Inc. in 2001, obtained a return of more than $41 million.
The building is fully leased to TJX Companies, Inc. (rated A/A3 by S&P/Moody's) through June 2021. The facility, which was completed in 2001, is a strategically important one to TJX Companies, Inc. as it serves as the sole tri-state distribution facility for its Marshalls stores. CapLease financed the acquisition at closing with a $71.7 million 10-year mortgage note to Wachovia Bank at a 5.57% coupon rate. The rent increases moderately for the first three years and is flat for the remaining 12 years. Sphere: Related Content
Friday, March 17, 2006
First Industrial Realty Trust Forms $900 Million Net Lease Co-Investment Program
PRNewswire-FirstCall - March 15, 2006
First Industrial Realty Trust, Inc. (NYSE: FR), the nation's largest provider of diversified industrial real estate, announced today that it has formed a net lease co-investment program with UBS Wealth Management-North American Property Fund Limited, a fund managed and advised on behalf of the international clients of UBS AG, a world-wide financial institution. The Program is targeting long-term single tenant net lease industrial properties throughout the United States with an investment horizon of seven to ten years.
UBS-NAPF has allocated up to $255 million in equity and First Industrial expects to co-invest up to $45 million in equity, representing an 85% and 15% equity interest, respectively. Based on expected leverage of 60% to 70%, the total capitalization of the Program could reach approximately $900 million. First Industrial will manage the properties through its full-service offices across the country. Sphere: Related Content
First Industrial Realty Trust, Inc. (NYSE: FR), the nation's largest provider of diversified industrial real estate, announced today that it has formed a net lease co-investment program with UBS Wealth Management-North American Property Fund Limited, a fund managed and advised on behalf of the international clients of UBS AG, a world-wide financial institution. The Program is targeting long-term single tenant net lease industrial properties throughout the United States with an investment horizon of seven to ten years.
UBS-NAPF has allocated up to $255 million in equity and First Industrial expects to co-invest up to $45 million in equity, representing an 85% and 15% equity interest, respectively. Based on expected leverage of 60% to 70%, the total capitalization of the Program could reach approximately $900 million. First Industrial will manage the properties through its full-service offices across the country. Sphere: Related Content
Rangar Warehouse in Tacoma, WA Sells for $63 Million
TheNewsTribune - March 14th, 2006
The $63 million sale of an industrial campus in Fife which was owned and is occupied by toy logistics company Rangar has set a new benchmark for the value of such property in Pierce County. The sale of the 968,000-square-foot Regal Logistics Center to by Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) set a local record of $65 per square foot. The previous mark was around $60 per square foot.
Eight institutional investors, primarily pension funds, bid for the property . “There are only a handful of industrial parks that size,” said Todd Clarke, senior vice president of GVA Kidder Mathews in Tacoma. “It’s a strong investment market. A quality market will get multiple offers.”
The winning bid was submitted TIAA-CREF which arranged a long-term agreement to lease the property back to Rangar, Clarke said. The $63 million figure “exceeded our underwriting expectations,” he said. “Buyers are willing to pay a premium. These opportunities are few and far between.”
“People want to be near the port,” said Port of Tacoma spokesman Mike Wasem. “People want to be near the fulcrum of trade and the transport of materials. “Transactions like this are a great indicator about how the port is a magnet for commerce. As trans-Pacific trade grows, we’re going to see more deals like this.”
The property is located between Interstate 5 and the Puyallup River, at 6500 26th St. E. in Fife. Clarke first sold the site to the developer OPUS, which constructed the original buildings and later sold the property to Rangar. Sphere: Related Content
The $63 million sale of an industrial campus in Fife which was owned and is occupied by toy logistics company Rangar has set a new benchmark for the value of such property in Pierce County. The sale of the 968,000-square-foot Regal Logistics Center to by Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) set a local record of $65 per square foot. The previous mark was around $60 per square foot.
Eight institutional investors, primarily pension funds, bid for the property . “There are only a handful of industrial parks that size,” said Todd Clarke, senior vice president of GVA Kidder Mathews in Tacoma. “It’s a strong investment market. A quality market will get multiple offers.”
The winning bid was submitted TIAA-CREF which arranged a long-term agreement to lease the property back to Rangar, Clarke said. The $63 million figure “exceeded our underwriting expectations,” he said. “Buyers are willing to pay a premium. These opportunities are few and far between.”
“People want to be near the port,” said Port of Tacoma spokesman Mike Wasem. “People want to be near the fulcrum of trade and the transport of materials. “Transactions like this are a great indicator about how the port is a magnet for commerce. As trans-Pacific trade grows, we’re going to see more deals like this.”
The property is located between Interstate 5 and the Puyallup River, at 6500 26th St. E. in Fife. Clarke first sold the site to the developer OPUS, which constructed the original buildings and later sold the property to Rangar. Sphere: Related Content
OBI Enters $200 Million Sale Leaseback of 18 DIY Stores in Poland
PRNewswire-FirstCall - March 16, 2006
W. P. Carey International LLC, an affiliate of investment firm W. P. Carey & Co. LLC (NYSE: WPC) , announced today that it has entered into agreements to acquire and lease back 18 facilities from OBI AG, the fourth largest Do-It-Yourself (DIY) retailer in the world, for a total purchase price that is expected to be approximately $200 million. The transaction is expected to close March 30, 2006.
The 18 facilities are located throughout Poland and include 15 existing retail stores including the Polish headquarters in Warsaw, two stores under construction and one build-to-suit retail site. Currently, OBI operates stores in Austria, Bosnia-Herzegovina, the Czech Republic, Germany, Hungary, Italy, Poland, Russia, Slovenia, and Switzerland. OBI plans to use these funds to further expand its footprint throughout Central and Eastern Europe. Sphere: Related Content
W. P. Carey International LLC, an affiliate of investment firm W. P. Carey & Co. LLC (NYSE: WPC) , announced today that it has entered into agreements to acquire and lease back 18 facilities from OBI AG, the fourth largest Do-It-Yourself (DIY) retailer in the world, for a total purchase price that is expected to be approximately $200 million. The transaction is expected to close March 30, 2006.
The 18 facilities are located throughout Poland and include 15 existing retail stores including the Polish headquarters in Warsaw, two stores under construction and one build-to-suit retail site. Currently, OBI operates stores in Austria, Bosnia-Herzegovina, the Czech Republic, Germany, Hungary, Italy, Poland, Russia, Slovenia, and Switzerland. OBI plans to use these funds to further expand its footprint throughout Central and Eastern Europe. Sphere: Related Content
Bookham Enters $24 Million Sale Leaseback of UK Manufacturing Facility
MarketWatch - March 14, 2006
Bookham, Inc. (BKHM), a leading provider of optical components, modules and subsystems, announced today that on March 10, 2006, it signed an agreement for the sale and associated leaseback of its Caswell, UK, manufacturing facility with Scarborough Developments, a UK-based property investment company. On closing, which is subject to customary closing conditions and expected to occur on or before March 30, 2006, the transaction will result in immediate proceeds to the Company of 13.8 million pounds Sterling (approximately US $24 million). As part of this transaction, the Company will enter into a long-term lease of the Caswell site with Scarborough Developments. Sphere: Related Content
Bookham, Inc. (BKHM), a leading provider of optical components, modules and subsystems, announced today that on March 10, 2006, it signed an agreement for the sale and associated leaseback of its Caswell, UK, manufacturing facility with Scarborough Developments, a UK-based property investment company. On closing, which is subject to customary closing conditions and expected to occur on or before March 30, 2006, the transaction will result in immediate proceeds to the Company of 13.8 million pounds Sterling (approximately US $24 million). As part of this transaction, the Company will enter into a long-term lease of the Caswell site with Scarborough Developments. Sphere: Related Content
Saturday, March 11, 2006
Southern Cross Completes £1 Billion Sale Leaseback of 294 Nursing Homes
Scotsman.com - March 10, 2006
Royal Bank of Scotland was today understood to have pulled off the biggest property deal of the year so far, buying more than half the nursing home estate of Southern Cross for an estimated £1 billion.
The deal involves RBS buying 294 of Southern Cross's 573 properties from owners Blackstone, the US private equity group, although Southern Cross will continue to operate the sites under 20-year lease agreements while paying rent.
Southern Cross is the UK's largest provider of residential care homes and runs a number of sites across Scotland, including Bonnington in Edinburgh, Tranent Care Home and Springfield Bank in Bonnyrigg. Southern Cross is expected to float on the London Stock Exchange later in the year with an estimated value of up to £500 million.
Blackstone built the homes portfolio through a number of quickfire deals in recent years. It originally bought Southern Cross for £162m in September 2004 from West private equity before buying Ashbourne Group for £85m from Electra Partners shortly afterwards. Finally, it paid around £560m to buy publicly-listed NHP in November 2004, in a move which made it the UK care homes leader - ahead of Bupa - with more than 28,000 beds across 573 sites.
According to healthcare analysts, buyers have been attracted to the sector because of the increasing old age profile of the UK, the stability of the sector and increased Government spending. Despite Southern Cross being the UK's biggest care home provider, it has only six per cent of the market. Sphere: Related Content
Royal Bank of Scotland was today understood to have pulled off the biggest property deal of the year so far, buying more than half the nursing home estate of Southern Cross for an estimated £1 billion.
The deal involves RBS buying 294 of Southern Cross's 573 properties from owners Blackstone, the US private equity group, although Southern Cross will continue to operate the sites under 20-year lease agreements while paying rent.
Southern Cross is the UK's largest provider of residential care homes and runs a number of sites across Scotland, including Bonnington in Edinburgh, Tranent Care Home and Springfield Bank in Bonnyrigg. Southern Cross is expected to float on the London Stock Exchange later in the year with an estimated value of up to £500 million.
Blackstone built the homes portfolio through a number of quickfire deals in recent years. It originally bought Southern Cross for £162m in September 2004 from West private equity before buying Ashbourne Group for £85m from Electra Partners shortly afterwards. Finally, it paid around £560m to buy publicly-listed NHP in November 2004, in a move which made it the UK care homes leader - ahead of Bupa - with more than 28,000 beds across 573 sites.
According to healthcare analysts, buyers have been attracted to the sector because of the increasing old age profile of the UK, the stability of the sector and increased Government spending. Despite Southern Cross being the UK's biggest care home provider, it has only six per cent of the market. Sphere: Related Content
Property Sale Leasebacks Help Fill Corporate Pension Holes
Reuters.co.uk - March 10, 2006
Companies looking to plug big pension shortfalls are increasingly using sale-and-leaseback property deals to raise money, boosted by strong demand for real estate, said investment firm Close Brothers. Supermarket chain J. Sainsbury, defence and engineering group BAE Systems and holiday village operator Center Parcs are among firms using this technique to raise capital for pensions or other needs, the firm said in a note.
The fund-raising method is among a number of ways pension schemes are being urged to fill their deficits, caused by a greying population and low bond yields. Shortfalls stood at 76 billion pounds in January among 200 major firms surveyed by Aon Consulting last month.
Sale-and-leaseback deals have been done for many years but are now highly attractive because of strong demand for property, low interest rates and a desire by firms to make more efficient use of capital and fill their pension deficits, Daniel Morland, director at Close Brothers, told Reuters. "It is not a brand new concept ... there is a huge demand now for property."
British property returns surged 19.1 percent last year, only beaten by equities and property shares, according to data last month from research group Investment Property Databank (IPD).
The potential in sale-and-leaseback is considerable, Close Brothers said. The country's top 100 listed companies have freehold property assets with a net book value well above 100 billion pounds, compared with pension deficits of more than 37 billion pounds, it said.
The investment house recently advised on gym group Esporta's raising of new debt facilities as part of a sale-and-leaseback transaction, Morland said. Sphere: Related Content
Companies looking to plug big pension shortfalls are increasingly using sale-and-leaseback property deals to raise money, boosted by strong demand for real estate, said investment firm Close Brothers. Supermarket chain J. Sainsbury, defence and engineering group BAE Systems and holiday village operator Center Parcs are among firms using this technique to raise capital for pensions or other needs, the firm said in a note.
The fund-raising method is among a number of ways pension schemes are being urged to fill their deficits, caused by a greying population and low bond yields. Shortfalls stood at 76 billion pounds in January among 200 major firms surveyed by Aon Consulting last month.
Sale-and-leaseback deals have been done for many years but are now highly attractive because of strong demand for property, low interest rates and a desire by firms to make more efficient use of capital and fill their pension deficits, Daniel Morland, director at Close Brothers, told Reuters. "It is not a brand new concept ... there is a huge demand now for property."
British property returns surged 19.1 percent last year, only beaten by equities and property shares, according to data last month from research group Investment Property Databank (IPD).
The potential in sale-and-leaseback is considerable, Close Brothers said. The country's top 100 listed companies have freehold property assets with a net book value well above 100 billion pounds, compared with pension deficits of more than 37 billion pounds, it said.
The investment house recently advised on gym group Esporta's raising of new debt facilities as part of a sale-and-leaseback transaction, Morland said. Sphere: Related Content
NCC Completes $63 Million Sale Leaseback of Residential Property Near Berlin
Construction and Maintenance News - March 10, 2006
NCC has concluded a Sale-Lease-Back agreement with the German finance group HSH Nordbank and their leasing affiliate AGV regarding properties in the Sonnengarten area, just outside Berlin. The sales price is approximately SEK 500 million and the parties will simultaneously sign an 18-year lease on the premises.
Sonnengarten is a well-established residential area situated in Glienicke-Nordbahn, north of Berlin and consists of approximately 30, 000 square meters of residential space and 800 square meters of commercial premises distributed among a total of 23 properties. In addition to the right to receive rent from tenants, the lease with AGV means that NCC will be responsible for the operation and upkeep of the area in the future.
According to the buyback option, NCC will be entitled to repurchase the entire property portfolio on predetermined terms and conditions after 10, 11 or 13 years. NCC will also have the right, but not the obligation, to repurchase the portfolio when the lease expires at the market value prevailing at that time. Sphere: Related Content
NCC has concluded a Sale-Lease-Back agreement with the German finance group HSH Nordbank and their leasing affiliate AGV regarding properties in the Sonnengarten area, just outside Berlin. The sales price is approximately SEK 500 million and the parties will simultaneously sign an 18-year lease on the premises.
Sonnengarten is a well-established residential area situated in Glienicke-Nordbahn, north of Berlin and consists of approximately 30, 000 square meters of residential space and 800 square meters of commercial premises distributed among a total of 23 properties. In addition to the right to receive rent from tenants, the lease with AGV means that NCC will be responsible for the operation and upkeep of the area in the future.
According to the buyback option, NCC will be entitled to repurchase the entire property portfolio on predetermined terms and conditions after 10, 11 or 13 years. NCC will also have the right, but not the obligation, to repurchase the portfolio when the lease expires at the market value prevailing at that time. Sphere: Related Content
Friday, March 10, 2006
Whitbread May Sell & Leaseback £1 Billion Portfolio of 46 Marriott Hotels in UK
Freeman News / AFX - March 08, 2006
The Financial Times reports that Royal Bank of Scotland Group plc is in exclusive talks with a Whitbread plc and Marriott International joint venture about buying a portfolio of 46 UK hotels for £1bn.
The hotels are currently owned by Whitbread but are operated by Marriott, the US hotel chain, which will continue to run the properties after the deal has closed, the newspaper said. It noted that RBS, which declined to comment, has a record in hotel ownership having owned Le Meridien's UK assets for several years.
The FT said RBS is also believed to be working with Egal Ahouvi, the Israeli entrepreneur, on the possible purchase of seven InterContinental Hotels Group plc properties. Sphere: Related Content
The Financial Times reports that Royal Bank of Scotland Group plc is in exclusive talks with a Whitbread plc and Marriott International joint venture about buying a portfolio of 46 UK hotels for £1bn.
The hotels are currently owned by Whitbread but are operated by Marriott, the US hotel chain, which will continue to run the properties after the deal has closed, the newspaper said. It noted that RBS, which declined to comment, has a record in hotel ownership having owned Le Meridien's UK assets for several years.
The FT said RBS is also believed to be working with Egal Ahouvi, the Israeli entrepreneur, on the possible purchase of seven InterContinental Hotels Group plc properties. Sphere: Related Content
Bendigo Bank Seeking $100 Million Sale Leaseback of Headquarters in Victoria
Sydney Morning Herald - March 8, 2006
Bendigo Bank Ltd is looking to sell its new $100 million headquarters in Victoria (Australia) and lease it back when construction is completed. The bank said it is in negotiations with Societe Generale Corporate & Investment Banking about the possible sale and lease back of the premises in Bendigo.
'The project will involve the creation of public infrastructure in the building precinct which will be owned by the City of Greater Bendigo,' said Bendigo Bank. It said the Victorian government will commit $3.8 million towards public infrastructure development in the project. Sphere: Related Content
Bendigo Bank Ltd is looking to sell its new $100 million headquarters in Victoria (Australia) and lease it back when construction is completed. The bank said it is in negotiations with Societe Generale Corporate & Investment Banking about the possible sale and lease back of the premises in Bendigo.
'The project will involve the creation of public infrastructure in the building precinct which will be owned by the City of Greater Bendigo,' said Bendigo Bank. It said the Victorian government will commit $3.8 million towards public infrastructure development in the project. Sphere: Related Content
Dynamics Research Corp Completes $20 Million Sale Leaseback in Andover, MA
BostonSF - March 8, 2006
CB Richard Ellis/New England has brokered the sale leaseback of 60 Frontage Rd., a 135,360-square-foot office building in Andover, Mass. for $20.33 million.
Phil Giunta, Executive Vice President/Partner, and George Nugent, Senior Vice President/Partner of CB Richard Ellis/New England Partners, represented the seller, Dynamics Research Corporation, an Andover-based technology company that provides solutions and services to federal, state, and local government. CB Richard Ellis/New England also procured the buyer, Direct Invest.
Located on more than 17 acres of land and with immediate access to Route 93, 60 Frontage Rd. is a three-story, 135,360 square foot office building that is 100 percent leased to Dynamics Research Corporation. Built in 1986, the property recently underwent a total building renovation. Sphere: Related Content
CB Richard Ellis/New England has brokered the sale leaseback of 60 Frontage Rd., a 135,360-square-foot office building in Andover, Mass. for $20.33 million.
Phil Giunta, Executive Vice President/Partner, and George Nugent, Senior Vice President/Partner of CB Richard Ellis/New England Partners, represented the seller, Dynamics Research Corporation, an Andover-based technology company that provides solutions and services to federal, state, and local government. CB Richard Ellis/New England also procured the buyer, Direct Invest.
Located on more than 17 acres of land and with immediate access to Route 93, 60 Frontage Rd. is a three-story, 135,360 square foot office building that is 100 percent leased to Dynamics Research Corporation. Built in 1986, the property recently underwent a total building renovation. Sphere: Related Content
Accor Announces Sale Leaseback of 76 Hotels in Europe for Eur 583 Million
CatererSearch - March 9, 2006
Accor is to sell off 76 properties with a market value of €583m (£400m). Property company Foncire des Murs will buy the properties and lease them back to Accor, which will continue to manage them under the Novotel, Mercure and Ibis brands. The transaction concerns 59 hotels, five Thalassotherapy institutes in France and 12 hotel in Belgium, with 8,300 rooms. Sphere: Related Content
Accor is to sell off 76 properties with a market value of €583m (£400m). Property company Foncire des Murs will buy the properties and lease them back to Accor, which will continue to manage them under the Novotel, Mercure and Ibis brands. The transaction concerns 59 hotels, five Thalassotherapy institutes in France and 12 hotel in Belgium, with 8,300 rooms. Sphere: Related Content
Kesko Completes Eur 200 Million Sale Leaseback of 77 Properties in Finland
Forbes / AFX - March 6, 2006
Kesko, the retailer-owned wholesale group, said it has completed the sale of 77 retail properties in Finland to Niam Retail Holding Finland AB for more than 200 mln eur. All of the premises have been leased back under 5-year or 10-year agreements with options to extend, the group said. Kesko will book a gain of 99.8 mln eur on the sale, which was first announced in December.
The buyer, Niam Retail Holding Finland, is owned by Niam, the Swedish private equity firm, and Crown Asset Management, part of US-based Crown NorthCorp. Sphere: Related Content
Kesko, the retailer-owned wholesale group, said it has completed the sale of 77 retail properties in Finland to Niam Retail Holding Finland AB for more than 200 mln eur. All of the premises have been leased back under 5-year or 10-year agreements with options to extend, the group said. Kesko will book a gain of 99.8 mln eur on the sale, which was first announced in December.
The buyer, Niam Retail Holding Finland, is owned by Niam, the Swedish private equity firm, and Crown Asset Management, part of US-based Crown NorthCorp. Sphere: Related Content
Thursday, March 09, 2006
Accor to Sell and Manageback 14 Sofitel Hotels in Europe for Eur 650 Million in 2007
Forbes / AFX - March 8, 2006
Accor said it aims to raise around 650 mln eur from the sale (and manageback) of 14 Sofitel-branded luxury hotels in Europe in 2007. The group announced the plan during a conference call with analysts following its 2005 results. Accor earlier announced plans to raise a total of 1.5 bln eur through disposals in the 2005-8 period and invest 2.7 bln eur by 2010, principally in the budget sector. Sphere: Related Content
Accor said it aims to raise around 650 mln eur from the sale (and manageback) of 14 Sofitel-branded luxury hotels in Europe in 2007. The group announced the plan during a conference call with analysts following its 2005 results. Accor earlier announced plans to raise a total of 1.5 bln eur through disposals in the 2005-8 period and invest 2.7 bln eur by 2010, principally in the budget sector. Sphere: Related Content
Tuesday, March 07, 2006
Accor Announces $370 Million Sale-Manageback of Six US Sofitel Hotels
PRNewswire - March 6, 2006
Accor (OTC: ACRFF) announces the agreement to sell a portfolio of six US Sofitel hotels for $370 million to a joint venture comprised of GEM Realty Capital, Whitehall Street Global Real Estate Limited Partnership 2005 and Accor. The six hotels, totalling 1,931 rooms, are located in the major metropolitan markets of Chicago, Los Angeles, Miami, Minneapolis, San Francisco Bay and Washington D.C.
Accor will remain a 25% shareholder in the joint venture and will continue to manage the hotels under the Sofitel brand name through a 25 year contract. The transaction is in line with Accor's asset management strategy in the upper upscale segment, which is to reduce capital intensity and earnings volatility through 'sale and management back' transactions. Sphere: Related Content
Accor (OTC: ACRFF) announces the agreement to sell a portfolio of six US Sofitel hotels for $370 million to a joint venture comprised of GEM Realty Capital, Whitehall Street Global Real Estate Limited Partnership 2005 and Accor. The six hotels, totalling 1,931 rooms, are located in the major metropolitan markets of Chicago, Los Angeles, Miami, Minneapolis, San Francisco Bay and Washington D.C.
Accor will remain a 25% shareholder in the joint venture and will continue to manage the hotels under the Sofitel brand name through a 25 year contract. The transaction is in line with Accor's asset management strategy in the upper upscale segment, which is to reduce capital intensity and earnings volatility through 'sale and management back' transactions. Sphere: Related Content
Saturday, March 04, 2006
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
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
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
Sunday, February 26, 2006
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
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
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
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
Friday, February 24, 2006
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
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
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
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
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
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
Monday, February 20, 2006
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
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
Saturday, February 18, 2006
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
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
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
Friday, February 17, 2006
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
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
Sunday, February 12, 2006
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
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
Saturday, February 11, 2006
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
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
Friday, February 10, 2006
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
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
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
Wednesday, February 08, 2006
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
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
Tuesday, February 07, 2006
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
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
Monday, February 06, 2006
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
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
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
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
Sunday, February 05, 2006
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
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
Saturday, February 04, 2006
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
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
Thursday, February 02, 2006
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
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
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
Wednesday, February 01, 2006
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
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
Monday, January 30, 2006
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
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
Saturday, January 28, 2006
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
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
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
Friday, January 27, 2006
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
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
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
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
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
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
Thursday, January 26, 2006
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
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
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
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
Wednesday, January 25, 2006
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
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
Tuesday, January 24, 2006
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
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
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
Monday, January 23, 2006
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
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
Sunday, January 22, 2006
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
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
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
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
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
Saturday, January 21, 2006
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
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
Monday, January 16, 2006
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
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
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
Friday, January 13, 2006
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
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
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
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
Thursday, January 12, 2006
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
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
Wednesday, January 04, 2006
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
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
Monday, January 02, 2006
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
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
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
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
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
Sunday, January 01, 2006
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
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
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
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