BioMed Realty Trust Web Site - May 2, 2006
BioMed Realty Trust, Inc. (NYSE: BMR) today announced that it has signed a definitive purchase and sale agreement with Human Genome Sciences, Inc. (Nasdaq: HGSI) to acquire Human Genome Sciences' large-scale manufacturing and headquarters office and laboratory facilities located in Rockville, Maryland. The portfolio includes a total of approximately 925,000 rentable square feet of existing laboratory, office and manufacturing space, with the headquarters facility consisting of three recently constructed buildings and a parking structure, as well as undeveloped land that management estimates can support over 500,000 rentable square feet of additional laboratory and office space. The total purchase price is approximately $425 million, excluding estimated closing costs. BioMed expects the initial capitalization rate for the acquired portfolio to be in excess of nine percent. The acquisition is anticipated to close in the second quarter of 2006, and is subject to customary closing conditions.
Human Genome Sciences, a public biopharmaceutical company with a pipeline of novel protein and antibody drugs directed toward large markets that have significant unmet medical need, will lease the buildings pursuant to 20-year triple-net leases. The leases provide for a security deposit equal to one year's rent, and provide HGSI with the right to extend each lease for two 10-year terms and to repurchase the properties under certain circumstances.
Sphere: Related Content
Wednesday, May 03, 2006
Monday, May 01, 2006
West LB's London Headquarters Sold for £325 Million
Irish Times - April 26, 2006
David Arnold's property investment company D2 Private has paid over €468 million (£325 million) for Woolgate Exchange, one of the City of London's most prestigious office buildings.
Built five years ago, the 32,609sq m (351,000sq ft) building is let in its entirety under a long-term lease to West LB, one of Germany's leading international banks, as the company's UK headquarters. The acquisition will provide the new owners with a net initial yield of 5 per cent. The deal was funded by Anglo Irish Bank.
The Dublin-based D2 Private was set up by Arnold last year with Deirdre Foley, a former director of Derek Quinlan's investment company, Quinlan Private. D2's chairman is Brendan O'Mara, who is also chairman of Ireland's largest quantity surveyors firm, Bruce Shaw.
So far, the company has acquired properties worth over €720 million (£500 million) in London, including the Woolgate Exchange. It plans to further significantly expand its portfolio this year. Last year D2 Private bought the Richard Rogers-designed Marks & Spencer headquarters in Paddington for around €201 million (£140 million) and a 2,323sq m (25,000sq ft) refurbished office building in Wardour Street, Soho for about €20 million (£14 million), which is let to The Moving Picture Company as their London headquarters.
Last month in Dublin the company also acquired Brooklawn House, an office investment in Ballsbridge, for approximately €47 million. Sphere: Related Content
David Arnold's property investment company D2 Private has paid over €468 million (£325 million) for Woolgate Exchange, one of the City of London's most prestigious office buildings.
Built five years ago, the 32,609sq m (351,000sq ft) building is let in its entirety under a long-term lease to West LB, one of Germany's leading international banks, as the company's UK headquarters. The acquisition will provide the new owners with a net initial yield of 5 per cent. The deal was funded by Anglo Irish Bank.
The Dublin-based D2 Private was set up by Arnold last year with Deirdre Foley, a former director of Derek Quinlan's investment company, Quinlan Private. D2's chairman is Brendan O'Mara, who is also chairman of Ireland's largest quantity surveyors firm, Bruce Shaw.
So far, the company has acquired properties worth over €720 million (£500 million) in London, including the Woolgate Exchange. It plans to further significantly expand its portfolio this year. Last year D2 Private bought the Richard Rogers-designed Marks & Spencer headquarters in Paddington for around €201 million (£140 million) and a 2,323sq m (25,000sq ft) refurbished office building in Wardour Street, Soho for about €20 million (£14 million), which is let to The Moving Picture Company as their London headquarters.
Last month in Dublin the company also acquired Brooklawn House, an office investment in Ballsbridge, for approximately €47 million. Sphere: Related Content
Friday, April 28, 2006
Allied Irish Banks Agrees to €377 Million Sale Leaseback of Dublin HQ
Allied Irish Banks Web Site - April 26, 2006
Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB] today announces that it has entered into certain transactions in relation to its Existing Bankcentre property (excluding the New Bankcentre Development) at Ballsbridge, Dublin 4.
The property has been sold in two lots, to Hibernian Life and Pensions Limited and to Sean Dunne. These purchasers were selected following an open market tender process. The total sum to be paid for the purchase of the properties is €377.7 million in cash.
The Existing Bankcentre comprises of eight adjoining office blocks. The front four Blocks and adjoining land are to be bought by Sean Dunne and will be leased back to the AIB Group on a 20-year lease, with a break clause exercisable by either party after four years and eleven months. The remaining property to be bought by Hibernian Life and Pensions Limited, will be leased to the AIB Group for a period of 20 years. The initial annual rent payable on both lots by the tenant will be €11.6 million per annum and will be subject to adjustment in subsequent five year rent reviews. It is anticipated that the cost will be more than offset by savings and by the benefits derived from the use of the capital.
The capital benefit (i.e. the profit after taxation) to AIB generated from these transactions is in the region of €230 million. AIB will reinvest the capital from the transactions in its core banking business and the transactions are expected to complete during the second quarter of 2006. Sphere: Related Content
Allied Irish Banks, p.l.c. ("AIB") [NYSE: AIB] today announces that it has entered into certain transactions in relation to its Existing Bankcentre property (excluding the New Bankcentre Development) at Ballsbridge, Dublin 4.
The property has been sold in two lots, to Hibernian Life and Pensions Limited and to Sean Dunne. These purchasers were selected following an open market tender process. The total sum to be paid for the purchase of the properties is €377.7 million in cash.
The Existing Bankcentre comprises of eight adjoining office blocks. The front four Blocks and adjoining land are to be bought by Sean Dunne and will be leased back to the AIB Group on a 20-year lease, with a break clause exercisable by either party after four years and eleven months. The remaining property to be bought by Hibernian Life and Pensions Limited, will be leased to the AIB Group for a period of 20 years. The initial annual rent payable on both lots by the tenant will be €11.6 million per annum and will be subject to adjustment in subsequent five year rent reviews. It is anticipated that the cost will be more than offset by savings and by the benefits derived from the use of the capital.
The capital benefit (i.e. the profit after taxation) to AIB generated from these transactions is in the region of €230 million. AIB will reinvest the capital from the transactions in its core banking business and the transactions are expected to complete during the second quarter of 2006. Sphere: Related Content
Saturday, April 22, 2006
Law Firm Eversheds Signs Long Term Lease for New London HQ Building
Forbes - April 21, 2004
Land Securities Group PLC said it has pre-let One Wood Street, EC2, to international law firm Eversheds LLP for its London headquarters. Eversheds has taken an 18 year lease on all of the 165,000 sq ft office accommodation. The global law firm will occupy all eight floors, with an option to lease back 20,000 sq ft to Land Securities. Wood Street was purchased by Land Securities for 36.1 mln stg in August 2003. Redevelopment of One Wood Street started in 2005 at a build cost of some 50 mln stg. Sphere: Related Content
Land Securities Group PLC said it has pre-let One Wood Street, EC2, to international law firm Eversheds LLP for its London headquarters. Eversheds has taken an 18 year lease on all of the 165,000 sq ft office accommodation. The global law firm will occupy all eight floors, with an option to lease back 20,000 sq ft to Land Securities. Wood Street was purchased by Land Securities for 36.1 mln stg in August 2003. Redevelopment of One Wood Street started in 2005 at a build cost of some 50 mln stg. Sphere: Related Content
US EPA Regional HQ in Denver Sold for $95 Million
BUSINESS WIRE - April 21, 2006
Government Properties Trust, Inc. today announced that it has executed a definitive agreement to acquire a 280,000 square foot, nine story building located in the Lower Downtown Historic District in Denver, Colorado for a price not to exceed $95.0 million. The building is being acquired from an affiliate of Opus Northwest, L.L.C. The property is currently under development. The transaction is scheduled to close and be funded upon the later of December of 2006 or upon the completion of the project and acceptance of the property by the tenant.
The General Services Administration on behalf of the Environmental Protection Agency has executed a 10-year lease for the building which will serve as a regional headquarters. Approximately 16,000 square feet of the building will be available for street level retail space. The project includes 225 on-site underground parking stalls and an additional 122 off-site surface stalls are available.
The Company is currently in the process of securing fixed interest rate financing and a forward interest rate lock has been put in place pending completion of the project. Sphere: Related Content
Government Properties Trust, Inc. today announced that it has executed a definitive agreement to acquire a 280,000 square foot, nine story building located in the Lower Downtown Historic District in Denver, Colorado for a price not to exceed $95.0 million. The building is being acquired from an affiliate of Opus Northwest, L.L.C. The property is currently under development. The transaction is scheduled to close and be funded upon the later of December of 2006 or upon the completion of the project and acceptance of the property by the tenant.
The General Services Administration on behalf of the Environmental Protection Agency has executed a 10-year lease for the building which will serve as a regional headquarters. Approximately 16,000 square feet of the building will be available for street level retail space. The project includes 225 on-site underground parking stalls and an additional 122 off-site surface stalls are available.
The Company is currently in the process of securing fixed interest rate financing and a forward interest rate lock has been put in place pending completion of the project. Sphere: Related Content
Friday, April 21, 2006
eBay's PayPal Signs 20 Year Lease in West Dublin
TMC Net / Irish Times - April 19, 2006
PayPal, the money transfer arm of online auction giant eBay, is leasing the entire Atrium building at Blanchardstown for an annual rent of around 1.1 million, giving Dublin's suburban office market a major boost after years of double-digit vacancy rates. The e-commerce firm has signed up for two five-storey blocks, which total 6,968.66sq m (73,934sq ft) of space, as part of a major expansion of its Irish operations.
According to market sources, PayPal has agreed a competitive rent of 162 per sq m (15 per sq ft) on a 20-year lease that includes break options. The two buildings are strategically located at the entrance to the Blanchardstown shopping centre and overlook the N3 motorway.
PayPal's decision to lease the entire Atrium building will be viewed as yet another sign that Dublin's suburban office sector is turning a corner after more than three years of plummeting rents and rising vacancy rates. West Dublin was one of the areas worst hit by the dot.com meltdown with large-scale office complexes proving almost impossible to let.
Although completed in 2002 by developers Green Property, which also owns the Blanchardstown centre, the PayPal deal is the first letting on the site. The Atrium complex is regarded as one of the finest office buildings in the Blanchardstown area. The two buildings are linked by a full-height, glazed atrium. The scheme also has 111 surface car-parking spaces. Sphere: Related Content
PayPal, the money transfer arm of online auction giant eBay, is leasing the entire Atrium building at Blanchardstown for an annual rent of around 1.1 million, giving Dublin's suburban office market a major boost after years of double-digit vacancy rates. The e-commerce firm has signed up for two five-storey blocks, which total 6,968.66sq m (73,934sq ft) of space, as part of a major expansion of its Irish operations.
According to market sources, PayPal has agreed a competitive rent of 162 per sq m (15 per sq ft) on a 20-year lease that includes break options. The two buildings are strategically located at the entrance to the Blanchardstown shopping centre and overlook the N3 motorway.
PayPal's decision to lease the entire Atrium building will be viewed as yet another sign that Dublin's suburban office sector is turning a corner after more than three years of plummeting rents and rising vacancy rates. West Dublin was one of the areas worst hit by the dot.com meltdown with large-scale office complexes proving almost impossible to let.
Although completed in 2002 by developers Green Property, which also owns the Blanchardstown centre, the PayPal deal is the first letting on the site. The Atrium complex is regarded as one of the finest office buildings in the Blanchardstown area. The two buildings are linked by a full-height, glazed atrium. The scheme also has 111 surface car-parking spaces. Sphere: Related Content
Tuesday, April 18, 2006
Invesco Funds Group Building in Denver Sells for $69.3 Million
Commercial Property News - April 18, 2006
Capital Lease Funding Inc. has acquired two adjacent office buildings in Denver, 4340 and 4350 S. Monaco St. The New York City-based REIT, which specializes in net lease holdings, bought the properties from locally based Challenger South Monaco L.L.C., paying about $69.3 million, or $262.50 per square foot.
Each of the buildings is fully net leased to Invesco Funds Group Inc., a subsidiary of London-based investment management firm AMVESCAP P.L.C., through 2016. Invesco's parent has guaranteed the tenant's lease obligations (currently the firm is rated BBB-plus by Standard & Poor�s Corp. and a3 by Moody's Investors Service).
The four- and six-story office buildings--118,600 square feet and 145,150 square feet, respectively--are on 12.5 acres near the junction of I-25 and I-225 in south Denver. The sale is one of a good many office transactions in the Denver market in recent quarters, indicating strong investor interest in the market. According to the local office of Grubb & Ellis Co., fully 70 office properties traded hands in metro Denver in 2005, twice as many as in the previous year.
CB Richard Ellis represented both the buyer and the seller in the Monaco Street transaction. Sphere: Related Content
Capital Lease Funding Inc. has acquired two adjacent office buildings in Denver, 4340 and 4350 S. Monaco St. The New York City-based REIT, which specializes in net lease holdings, bought the properties from locally based Challenger South Monaco L.L.C., paying about $69.3 million, or $262.50 per square foot.
Each of the buildings is fully net leased to Invesco Funds Group Inc., a subsidiary of London-based investment management firm AMVESCAP P.L.C., through 2016. Invesco's parent has guaranteed the tenant's lease obligations (currently the firm is rated BBB-plus by Standard & Poor�s Corp. and a3 by Moody's Investors Service).
The four- and six-story office buildings--118,600 square feet and 145,150 square feet, respectively--are on 12.5 acres near the junction of I-25 and I-225 in south Denver. The sale is one of a good many office transactions in the Denver market in recent quarters, indicating strong investor interest in the market. According to the local office of Grubb & Ellis Co., fully 70 office properties traded hands in metro Denver in 2005, twice as many as in the previous year.
CB Richard Ellis represented both the buyer and the seller in the Monaco Street transaction. Sphere: Related Content
MetLife Signs Build-to-Suit for 115,00 Square Foot Office Building in Tampa
BUSINESS WIRE - April 18, 2006
Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, announced today that it has been awarded a build-to-suit lease at Highwoods Preserve for approximately 115,000 square feet by MetLife which already owns and/or leases over 300,000 square feet at this 800,000 square foot campus. Under the terms of the agreement, Highwoods will build a new, four-story office building with deck parking, investing approximately $19.7 million in the project. The building will be 100% occupied by MetLife under a long-term lease agreement. It is expected to be completed in the first quarter of 2007. Sphere: Related Content
Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, announced today that it has been awarded a build-to-suit lease at Highwoods Preserve for approximately 115,000 square feet by MetLife which already owns and/or leases over 300,000 square feet at this 800,000 square foot campus. Under the terms of the agreement, Highwoods will build a new, four-story office building with deck parking, investing approximately $19.7 million in the project. The building will be 100% occupied by MetLife under a long-term lease agreement. It is expected to be completed in the first quarter of 2007. Sphere: Related Content
Covenant Transport Enters $30 Million Sale Leaseback of HQ
SEC Edgar Web Site - April 3, 2006
On April 3, 2006, Covenant Transport, Inc. entered into a purchase and sale agreement on its headquarters facility, a maintenance facility, a body shop, and approximately forty-six (46) acres of surrounding property in Chattanooga, Tennessee for a purchase price of $30 million. Concurrent with the sale of the Property, Covenant entered into a twenty-year lease agreement whereby Covenant will lease back the Property at an annual rental rate of approximately $2.5 million, subject to annual rent increases of 1.0%.
Under the Lease Agreement, Covenant-TN has eight (8) consecutive options to extend the term of the lease by five (5) years for each such option. If the Purchaser decides to sell or otherwise convey title to the Property during the term of the Lease Agreement, Covenant-TN shall have a right of first refusal to purchase the Property on the same terms offered to any third party. Sphere: Related Content
On April 3, 2006, Covenant Transport, Inc. entered into a purchase and sale agreement on its headquarters facility, a maintenance facility, a body shop, and approximately forty-six (46) acres of surrounding property in Chattanooga, Tennessee for a purchase price of $30 million. Concurrent with the sale of the Property, Covenant entered into a twenty-year lease agreement whereby Covenant will lease back the Property at an annual rental rate of approximately $2.5 million, subject to annual rent increases of 1.0%.
Under the Lease Agreement, Covenant-TN has eight (8) consecutive options to extend the term of the lease by five (5) years for each such option. If the Purchaser decides to sell or otherwise convey title to the Property during the term of the Lease Agreement, Covenant-TN shall have a right of first refusal to purchase the Property on the same terms offered to any third party. Sphere: Related Content
Danish Firm NKT Completes $34 Million Sale Leaseback of US Properties
NKT Web Site - April 12, 2006
Nilfisk-Advance A/S has sold two properties in the United States for $34.5 million. Transfer of the properties will take place on April 12, 2006. Proceeds realised from the sale will be around 100 mDKK. The transaction comprises a 44,000 m2 property in Plymouth, Minnesota, and a 21,500 m2 property in Springdale, Arkansas. The former houses both Nilfisk-Advance's US head office and production facilities, and the latter contains production and storage facilities. Nilfisk-Advance has signed 10-year leases on the facilities. Sphere: Related Content
Nilfisk-Advance A/S has sold two properties in the United States for $34.5 million. Transfer of the properties will take place on April 12, 2006. Proceeds realised from the sale will be around 100 mDKK. The transaction comprises a 44,000 m2 property in Plymouth, Minnesota, and a 21,500 m2 property in Springdale, Arkansas. The former houses both Nilfisk-Advance's US head office and production facilities, and the latter contains production and storage facilities. Nilfisk-Advance has signed 10-year leases on the facilities. Sphere: Related Content
UK Gym Chain Next Generation Seeking Sale Leaseback of 14 Properties
The Sunday Times - April 16, 2006
The Livingstone brothers, two of Britain’s biggest property magnates, are this weekend on the verge of extending their empire into the fitness industry with a £200m (€290m) raid on the Next Generation chain of upmarket gyms, writes Mark Kleinman.London & Regional, the property firm run by Ian and Richard Livingstone, is in exclusive talks with UBS, the investment bank handling the sale, following the withdrawal of rival bidders Esporta and Whitbread.
A sale will crystallise multi-million payouts for Next Generation shareholders including John Magnier and JP McManus, the Irish racing tycoons, Scottish & Newcastle, and David Lloyd, the former tennis professional. London & Regional is understood to be planning a sale and leaseback of Next Generation’s 14 wholly owned sites. Sphere: Related Content
The Livingstone brothers, two of Britain’s biggest property magnates, are this weekend on the verge of extending their empire into the fitness industry with a £200m (€290m) raid on the Next Generation chain of upmarket gyms, writes Mark Kleinman.London & Regional, the property firm run by Ian and Richard Livingstone, is in exclusive talks with UBS, the investment bank handling the sale, following the withdrawal of rival bidders Esporta and Whitbread.
A sale will crystallise multi-million payouts for Next Generation shareholders including John Magnier and JP McManus, the Irish racing tycoons, Scottish & Newcastle, and David Lloyd, the former tennis professional. London & Regional is understood to be planning a sale and leaseback of Next Generation’s 14 wholly owned sites. Sphere: Related Content
Tesco Enters GBP 200 Million Sale Leaseback of Two UK Stores
Yahoo Finance - April 13, 2006
The UK's largest food retailer Tesco PLC has sold a 50 pct stake in two of its stores to Morley Fund Management for 100 mln stg as part of a sale-and-leaseback deal to establish a real estate investment fund, Morley's property fund manager Andrew Appleyard said.
Both Morley and Tesco's stakes in the properties -- Tesco Extra stores in Coventry and Kent -- are included in the 200 mln stg fund, Appleyard said. The agreement allows for the inclusion of other assets in the future and the fund could go up by an extra 60 mln stg if expansion plans in Coventry receive planning permission, Appleyard said. If Tesco wants, he added, the fund could keep on growing through more property assets. Rents on the stores increase about 2.5 pct per year, Appleyard said.
Tesco has been examining a variety of options to exploit its property assets. In late March, the firm said it was in the early stages of considering whether to put all or part of its 12 bln stg freehold portfolio in a Real Estate Investment Trust (REIT). Sphere: Related Content
The UK's largest food retailer Tesco PLC has sold a 50 pct stake in two of its stores to Morley Fund Management for 100 mln stg as part of a sale-and-leaseback deal to establish a real estate investment fund, Morley's property fund manager Andrew Appleyard said.
Both Morley and Tesco's stakes in the properties -- Tesco Extra stores in Coventry and Kent -- are included in the 200 mln stg fund, Appleyard said. The agreement allows for the inclusion of other assets in the future and the fund could go up by an extra 60 mln stg if expansion plans in Coventry receive planning permission, Appleyard said. If Tesco wants, he added, the fund could keep on growing through more property assets. Rents on the stores increase about 2.5 pct per year, Appleyard said.
Tesco has been examining a variety of options to exploit its property assets. In late March, the firm said it was in the early stages of considering whether to put all or part of its 12 bln stg freehold portfolio in a Real Estate Investment Trust (REIT). Sphere: Related Content
TAC Seeking $70 Million HQ Leaseback in Australia
The Australian - April 11, 2006
The Australian government-controlled Transport Accident Commission has told developers a waterfront precinct known as the 'western wedge' is its preferred location for a 16,000sqm office building and 500 car spaces. TAC will lease back the building for an initial 15 years.
TAC wants to move by the start of 2009, giving developers only until the end of the month to register in a fast-tracked expressions of interest process run by PricewaterhouseCoopers. But with the TAC willing to pay an initial rent of $290 a square metre in a CBD where the current going rate is only $220/sqm, the offer has attracted a Melbourne Cup field, understood to include most major major developers and funds.
The third-party insurance authority is one of Australia's largest, with assets of $7.4 billion and liabilities of $6 billion. Its current head office is in Melbourne at the Allco-owned 222 Exhibition Street, where it occupies about 13,230sqm. Sphere: Related Content
The Australian government-controlled Transport Accident Commission has told developers a waterfront precinct known as the 'western wedge' is its preferred location for a 16,000sqm office building and 500 car spaces. TAC will lease back the building for an initial 15 years.
TAC wants to move by the start of 2009, giving developers only until the end of the month to register in a fast-tracked expressions of interest process run by PricewaterhouseCoopers. But with the TAC willing to pay an initial rent of $290 a square metre in a CBD where the current going rate is only $220/sqm, the offer has attracted a Melbourne Cup field, understood to include most major major developers and funds.
The third-party insurance authority is one of Australia's largest, with assets of $7.4 billion and liabilities of $6 billion. Its current head office is in Melbourne at the Allco-owned 222 Exhibition Street, where it occupies about 13,230sqm. Sphere: Related Content
Wednesday, April 12, 2006
KarstadtQuelle to Sell and Leaseback Headquarters and Remaining €600 Million Property Portfolio
MarketWatch - April 2, 2006
KarstadtQuelle, the troubled German retail group, plans to sell further properties, including its headquarters building, on top of a €4.5bn ($5.45bn) deal last week as part of sweeping restructuring measures that will all but end its days as a property owner.
A further €600m worth of properties have been lined up for sale by the end of the year, including the KarstadtQuelle 1960s head office building in Essen, the company confirmed on Sunday. Details of a first package to be sold would be announced within the next two weeks.
The latest sell-offs would leave the group with "hardly anything" in its property portfolio, the company said. KarstadtQuelle operates one of Germany's best-known high-street department store chains, as well mail-order businesses. Sphere: Related Content
KarstadtQuelle, the troubled German retail group, plans to sell further properties, including its headquarters building, on top of a €4.5bn ($5.45bn) deal last week as part of sweeping restructuring measures that will all but end its days as a property owner.
A further €600m worth of properties have been lined up for sale by the end of the year, including the KarstadtQuelle 1960s head office building in Essen, the company confirmed on Sunday. Details of a first package to be sold would be announced within the next two weeks.
The latest sell-offs would leave the group with "hardly anything" in its property portfolio, the company said. KarstadtQuelle operates one of Germany's best-known high-street department store chains, as well mail-order businesses. Sphere: Related Content
ING Bank Offices in The Hague Acquired by Evans Randall
Europe Real Estate - March 29, 2006
HSH Nordbank has financed the acquisition of the landmark office property Haagse Poort in The Hague on behalf of U.K. investment bank Evans Randall. The Bank has agreed to provide €180 million in long-term financing and €30 million in equity interim financing. The structure of the financing also includes derivatives for interest-rate hedging purposes.
The sale by KanAm to Evans Randall constitutes the largest transaction involving a single property on the Dutch market in 2006. The landmark building with nearly 68,000 sqm in space for lease on 18 storys is fully leased to ING Bank of the Netherlands on a long-term basis. This purchase marks the first investment by the London-based investment firm on the European continent.
The Bank carried out this off-market transaction within a few days, in collaboration with its Dutch advisers CBRE and Boekel de Nerée. The Netherlands remains in focus even though the number of attractive office properties has become very small and vacancy rates remain high. Initial net returns on offices are between 6 and 7% in the central locations of metropolitan areas. For very good locations and properties with good tenants and long-term leases, initial net returns of approx. 5.5 % to 5.8%. Sphere: Related Content
HSH Nordbank has financed the acquisition of the landmark office property Haagse Poort in The Hague on behalf of U.K. investment bank Evans Randall. The Bank has agreed to provide €180 million in long-term financing and €30 million in equity interim financing. The structure of the financing also includes derivatives for interest-rate hedging purposes.
The sale by KanAm to Evans Randall constitutes the largest transaction involving a single property on the Dutch market in 2006. The landmark building with nearly 68,000 sqm in space for lease on 18 storys is fully leased to ING Bank of the Netherlands on a long-term basis. This purchase marks the first investment by the London-based investment firm on the European continent.
The Bank carried out this off-market transaction within a few days, in collaboration with its Dutch advisers CBRE and Boekel de Nerée. The Netherlands remains in focus even though the number of attractive office properties has become very small and vacancy rates remain high. Initial net returns on offices are between 6 and 7% in the central locations of metropolitan areas. For very good locations and properties with good tenants and long-term leases, initial net returns of approx. 5.5 % to 5.8%. Sphere: Related Content
Friday, April 07, 2006
Computer Associates Seeking $195 Million Sale Leaseback of Long island HQ
Long Island Business News - March 31, 2006
CA, until recently known as Computer Associates, has placed their headquarters on the market with plans to lease back the site for 15 years with a 10-year renewal option, followed by two five-year options. The property has three buildings totalling 778,000 square feet. The move would infuse the company with cash while letting it remain at the 14-year-old, 60-acre corporate headquarters located off Exit 58 of the Long Island Expressway.
In a statement, CA said it “is exploring the sale/leaseback of the Islandia facility and a number of locations throughout the world,” adding that leasing “office space is standard business practice and frees up capital that can be used to invest in the business.” The company has more than 2,000 employees in Islandia.
CA didn’t stipulate how much it would like to pay in rent, but industry sources estimate it will be slightly below market rates, which averaged $20.25 per foot. The asking price of $250 per square foot is steep, but partially attributable to the site’s potential for additional development. In 1990, Islandia approved a total of 1.48 million square feet to be built in three phases on the main campus. An approved second phase that included a four-story office building and a cafeteria/training center never got off the ground. While CA can’t guarantee the development would be allowed now, Pennetta pointed out that Islandia is business friendly.
The building is being marketed by Jones Lang LaSalle Americas Inc. Sphere: Related Content
CA, until recently known as Computer Associates, has placed their headquarters on the market with plans to lease back the site for 15 years with a 10-year renewal option, followed by two five-year options. The property has three buildings totalling 778,000 square feet. The move would infuse the company with cash while letting it remain at the 14-year-old, 60-acre corporate headquarters located off Exit 58 of the Long Island Expressway.
In a statement, CA said it “is exploring the sale/leaseback of the Islandia facility and a number of locations throughout the world,” adding that leasing “office space is standard business practice and frees up capital that can be used to invest in the business.” The company has more than 2,000 employees in Islandia.
CA didn’t stipulate how much it would like to pay in rent, but industry sources estimate it will be slightly below market rates, which averaged $20.25 per foot. The asking price of $250 per square foot is steep, but partially attributable to the site’s potential for additional development. In 1990, Islandia approved a total of 1.48 million square feet to be built in three phases on the main campus. An approved second phase that included a four-story office building and a cafeteria/training center never got off the ground. While CA can’t guarantee the development would be allowed now, Pennetta pointed out that Islandia is business friendly.
The building is being marketed by Jones Lang LaSalle Americas Inc. Sphere: Related Content
Thursday, April 06, 2006
Sony Europe Completes €121 Million Pan-European Sale Leaseback
Sony Europe - March 27, 2006
Sony Europe and Macquarie Global Property Advisors (MGPA) have completed an agreement for the sale and leaseback of eight office and logistics properties currently owned by Sony for €121.1 million. The portfolio spans six European countries - the United Kingdom, Italy, the Netherlands, Belgium, Switzerland and Germany and includes some of Sony's significant buildings in each of these markets. Sony will remain the major tenant of the portfolio, leasing back 65% of the property from MGPA. The properties have been acquired on behalf of MGPA's European property fund, MGP Europe Fund II. Sphere: Related Content
Sony Europe and Macquarie Global Property Advisors (MGPA) have completed an agreement for the sale and leaseback of eight office and logistics properties currently owned by Sony for €121.1 million. The portfolio spans six European countries - the United Kingdom, Italy, the Netherlands, Belgium, Switzerland and Germany and includes some of Sony's significant buildings in each of these markets. Sony will remain the major tenant of the portfolio, leasing back 65% of the property from MGPA. The properties have been acquired on behalf of MGPA's European property fund, MGP Europe Fund II. Sphere: Related Content
Australian Defence Housing Authority Enters $97 Sale Leaseback of 178 Houses
The Australian - April 05, 2006
WESTPAC Funds Management plans to launch Australia's first residential property trust after buying $97 million worth of property from the housing arm of the Australian Defence Force. The Defence Housing Authority sold the 178 houses to WFM under its sale and lease-back program, on lease terms ranging from nine to 12 years. Westpac also said it was in preliminary negotiations to buy a further $300 million of residential property from the DHA.
The DHA typically develops housing for members of the defence force and then sells those properties to retail investors on a sale and lease-back basis. Half of the houses were located in Sydney with the remainder split between southeast Queensland and the ACT. Westpac Specialised Capital Group general manager Sean McElduff said the group planned to take the residential property trust to the market within three months but had not yet decided whether it would be listed. "Residential REITs are a well-developed asset class in the US and we believe such an offer will be well received by Australian investors," Mr McElduff said.
Mr McElduff said the purchase was a long-term play counting on capital appreciation, with properties bought on a gross yield of between 3 per cent and 4 per cent. The DHA whas agreed to re-paint and re-carpet properties when leases expired and fix any broken appliances for the duration of the tenancy. The WFM sale was the first time DHA properties had been sold to non-retail investors. Sphere: Related Content
WESTPAC Funds Management plans to launch Australia's first residential property trust after buying $97 million worth of property from the housing arm of the Australian Defence Force. The Defence Housing Authority sold the 178 houses to WFM under its sale and lease-back program, on lease terms ranging from nine to 12 years. Westpac also said it was in preliminary negotiations to buy a further $300 million of residential property from the DHA.
The DHA typically develops housing for members of the defence force and then sells those properties to retail investors on a sale and lease-back basis. Half of the houses were located in Sydney with the remainder split between southeast Queensland and the ACT. Westpac Specialised Capital Group general manager Sean McElduff said the group planned to take the residential property trust to the market within three months but had not yet decided whether it would be listed. "Residential REITs are a well-developed asset class in the US and we believe such an offer will be well received by Australian investors," Mr McElduff said.
Mr McElduff said the purchase was a long-term play counting on capital appreciation, with properties bought on a gross yield of between 3 per cent and 4 per cent. The DHA whas agreed to re-paint and re-carpet properties when leases expired and fix any broken appliances for the duration of the tenancy. The WFM sale was the first time DHA properties had been sold to non-retail investors. Sphere: Related Content
Swedish Prosecution Authority Signs 20-Year Lease For New HQ in Stockholm
Nordisk Renting AB - April 6, 2006
Nordisk Renting AB has signed an agreement with Skanska regarding the acquisition of another property in Flemingsberg, Greater Stockholm. The building will house Sodertorns Public Prosecution Office, and a 20-year lease has been signed with the Swedish Prosecution Authority. Skanska will construct the property, which is adjacent to the Sodertorn District Court.
The office building is another property in the civil legal centre in Flemingsberg, which is being built by Skanska and acquired by RBS Nordisk Renting on completion. In February 2006 RBS Nordisk Renting and Skanska reached an agreement regarding the acquisition of the new Sodertorn District Court.
The new property is being built adjacent to the district court and will be a modern regional office for the 150 or so people who work for the Public Prosecution Office in Sodertorn and the wider region south of Stockholm. The new property will total around 5,000 square metres, and is planned for tenant occupation in July 2007. Sphere: Related Content
Nordisk Renting AB has signed an agreement with Skanska regarding the acquisition of another property in Flemingsberg, Greater Stockholm. The building will house Sodertorns Public Prosecution Office, and a 20-year lease has been signed with the Swedish Prosecution Authority. Skanska will construct the property, which is adjacent to the Sodertorn District Court.
The office building is another property in the civil legal centre in Flemingsberg, which is being built by Skanska and acquired by RBS Nordisk Renting on completion. In February 2006 RBS Nordisk Renting and Skanska reached an agreement regarding the acquisition of the new Sodertorn District Court.
The new property is being built adjacent to the district court and will be a modern regional office for the 150 or so people who work for the Public Prosecution Office in Sodertorn and the wider region south of Stockholm. The new property will total around 5,000 square metres, and is planned for tenant occupation in July 2007. Sphere: Related Content
Linklaters HQ in London for Sale for £330 Million
Freeman News - March 29, 2006
Linklaters headquarters at Milton and Shire Houses, Silk Street, London, EC2 is to be sold by German Fund Manager Commerz Grundbesitz Investmentgesellschaft mbH. The landmark office buildings total 430,000 sq ft and were substantially redeveloped by Development Securities and pre-leased to Linklaters in 1996. Linklaters leases both buildings on a total of eight leases, which have staggered rent reviews but all expire in September 2021.
Whilst the two tower buildings are connected on the lower levels, they can be occupied and owned separately with each having its own reception areas, atrium and service plant. The buildings are well located to benefit from a number of significant developments in recent years including Citypoint and Slaughter and May’s headquarters, and forthcoming developments of neighbouring sites including 500,000 sq ft British Land tower at Ropemaker Place.
A guide price of £330m is being quoted, which equates to a net initial yield of circa 5.25% based on the current passing rent of £18,256,451 pa. The rent equates to circa £41.60 sq ft overall for the office accommodation. Sphere: Related Content
Linklaters headquarters at Milton and Shire Houses, Silk Street, London, EC2 is to be sold by German Fund Manager Commerz Grundbesitz Investmentgesellschaft mbH. The landmark office buildings total 430,000 sq ft and were substantially redeveloped by Development Securities and pre-leased to Linklaters in 1996. Linklaters leases both buildings on a total of eight leases, which have staggered rent reviews but all expire in September 2021.
Whilst the two tower buildings are connected on the lower levels, they can be occupied and owned separately with each having its own reception areas, atrium and service plant. The buildings are well located to benefit from a number of significant developments in recent years including Citypoint and Slaughter and May’s headquarters, and forthcoming developments of neighbouring sites including 500,000 sq ft British Land tower at Ropemaker Place.
A guide price of £330m is being quoted, which equates to a net initial yield of circa 5.25% based on the current passing rent of £18,256,451 pa. The rent equates to circa £41.60 sq ft overall for the office accommodation. Sphere: Related Content
Tuesday, March 28, 2006
DHL Mail Facility in Allentown Sells for $63 Million
Real estate brokerage firm Grubb & Ellis reports that United Bank of Switzerland has purchased a 292,333 square foot DHL mail sorting facility on 72 acres in Upper Macungie Township from developer Opus East. The sale price of $63.1 million or $217 per square foot was thought to be a record price for an industrial building transaction in the Lehigh Valley.
The property at 910 Nestle Way was designed and built by Opus East for the logistics company owned by Germany's Deutsche Post. The shell building was completed in December as part of a 20-year lease that called for DHL to install more than $72 million in advanced letter- and package-sorting systems. That would create a $107 million facility capable of processing correspondence and packages destined for the Washington, D.C., to Boston corridor.
Opus East began construction of the building in early June 2005 and by mid-September had transferred control of the interior to DHL. The building has nearly 300,000 square feet of floor area and 12,000 square feet of office space and 178 tailgate loading doors. Sphere: Related Content
Spectrum Brands Signs Million-Plus SF Lease Near St. Louis
Commercial Property News - March 28, 2006
Spectrum Brands, a major manufacturer of lawn and household insect-control and insect-repellent products, has signed a lease to occupy the entire Lakeview Commerce Center I, a brand-new distribution facility in Edwardsville, Ill., across the Mississippi River from St. Louis. Initially, the company will occupy 605,000 square feet, but the lease agreement calls for the building to be expanded to between 1 million to 1.2 million square feet by 2008.
The deal is the latest in this submarket of St. Louis, located at the junction of the north-south I-55 and the east-west I-70. Among other companies, Hershey's, Unilever and Proctor & Gamble have located major distribution facilities in the area, which has seen roughly 9 million square feet of industrial space developed in the last four years. Currently, about 2 million square feet are under way in the submarket.
David Zeigler, managing principal at Lee & Associates' St. Louis office, represented landlord Panattoni Development. Sphere: Related Content
Spectrum Brands, a major manufacturer of lawn and household insect-control and insect-repellent products, has signed a lease to occupy the entire Lakeview Commerce Center I, a brand-new distribution facility in Edwardsville, Ill., across the Mississippi River from St. Louis. Initially, the company will occupy 605,000 square feet, but the lease agreement calls for the building to be expanded to between 1 million to 1.2 million square feet by 2008.
The deal is the latest in this submarket of St. Louis, located at the junction of the north-south I-55 and the east-west I-70. Among other companies, Hershey's, Unilever and Proctor & Gamble have located major distribution facilities in the area, which has seen roughly 9 million square feet of industrial space developed in the last four years. Currently, about 2 million square feet are under way in the submarket.
David Zeigler, managing principal at Lee & Associates' St. Louis office, represented landlord Panattoni Development. Sphere: Related Content
Monday, March 27, 2006
Sony Europe Completes EUR121 Million Sale and Leaseback of Eight Properties Across Europe
PRNewswire - March 27, 2006
Sony Europe and Macquarie Global Property Advisors (MGPA) have completed an agreement for the sale and leaseback of eight office and logistics properties currently owned by Sony for EUR121.1 million. The portfolio spans six European countries - the United Kingdom, Italy, the Netherlands, Belgium, Switzerland and Germany - and includes some of Sony's significant buildings in each of these markets. Sony will remain the major tenant of the portfolio, leasing back 65% of the property from MGPA. The properties have been acquired on behalf of MGPA's European property fund, MGP Europe Fund II. Sphere: Related Content
Sony Europe and Macquarie Global Property Advisors (MGPA) have completed an agreement for the sale and leaseback of eight office and logistics properties currently owned by Sony for EUR121.1 million. The portfolio spans six European countries - the United Kingdom, Italy, the Netherlands, Belgium, Switzerland and Germany - and includes some of Sony's significant buildings in each of these markets. Sony will remain the major tenant of the portfolio, leasing back 65% of the property from MGPA. The properties have been acquired on behalf of MGPA's European property fund, MGP Europe Fund II. Sphere: Related Content
KarstadtQuelle Completes Eur 4.5 Billion Sale Leaseback of 174 Properties
Reuters - March 27, 2006
KarstadtQuelle (KARG.DE), Europe's second largest mail order company and Germany's biggest department store operator, said on Monday it had sold its property portfolio for 4.5 billion euros ($5.4 billion), more than three times its book value, allowing it to become debt free and to focus on growing sales. Karstadt, which narrowly escaped bankruptcy in late 2004, said it had sold the properties to a joint venture, owned 49 percent by itself and 51 percent by Whitehall, a Goldman Sachs property fund.
"The deal is not very transparent," said one analyst, who asked not to be named. Others said the same. Karstadt, which narrowly escaped bankruptcy in 2004, had said it wanted to sell the portfolio by the third quarter. Chief Executive Thomas Middelhoff told Reuters that its advisor Rothschild had said the deal was fair. "The advantages of a quick deal were higher than the disadvantages," Middelhoff told Reuters in an interview.
The Essen-based retailer said its net debt stood at 3 billion euros ($3.6 billion) at the end of 2005. The figure includes the debt of Thomas Cook, Europe's second biggest tourism firm, of which Karstadt owns 50 percent.
Under the deal Karstadt gets 3.7 billion euros immediately in exchange for the property portfolio, which includes 174 properties, including department stores, parking lots and office buildings and has a book value of 1.3 billion euros. The company said Karstadt will continue to pay rent on the real estate, which will then be sold on by Whitehall to other interested parties over the next three to five years at which time the joint venture will come to an end.
The remaining 800 million euros of the sale price are expected to come from the appreciation in value of these properties over the time that Whitehall takes to sell them, Karstadt said, adding that it planned to sell on its own remaining real estate worth 600 million euros in the coming months. Sphere: Related Content
KarstadtQuelle (KARG.DE), Europe's second largest mail order company and Germany's biggest department store operator, said on Monday it had sold its property portfolio for 4.5 billion euros ($5.4 billion), more than three times its book value, allowing it to become debt free and to focus on growing sales. Karstadt, which narrowly escaped bankruptcy in late 2004, said it had sold the properties to a joint venture, owned 49 percent by itself and 51 percent by Whitehall, a Goldman Sachs property fund.
"The deal is not very transparent," said one analyst, who asked not to be named. Others said the same. Karstadt, which narrowly escaped bankruptcy in 2004, had said it wanted to sell the portfolio by the third quarter. Chief Executive Thomas Middelhoff told Reuters that its advisor Rothschild had said the deal was fair. "The advantages of a quick deal were higher than the disadvantages," Middelhoff told Reuters in an interview.
The Essen-based retailer said its net debt stood at 3 billion euros ($3.6 billion) at the end of 2005. The figure includes the debt of Thomas Cook, Europe's second biggest tourism firm, of which Karstadt owns 50 percent.
Under the deal Karstadt gets 3.7 billion euros immediately in exchange for the property portfolio, which includes 174 properties, including department stores, parking lots and office buildings and has a book value of 1.3 billion euros. The company said Karstadt will continue to pay rent on the real estate, which will then be sold on by Whitehall to other interested parties over the next three to five years at which time the joint venture will come to an end.
The remaining 800 million euros of the sale price are expected to come from the appreciation in value of these properties over the time that Whitehall takes to sell them, Karstadt said, adding that it planned to sell on its own remaining real estate worth 600 million euros in the coming months. Sphere: Related Content
Saturday, March 25, 2006
RVI to Pay $33 Million for Soon to be Vacant Property That it Insures
SEC Edgar Web Site - March 14, 2006
On March 14, 2006, The Newkirk Master Limited Partnership, the operating partnership of Newkirk Realty Trust, Inc., entered into an agreement to sell its Toledo, Ohio property currently leased to Owens-Illinois for a purchase price of $33,000,000, $1,000,000 in cash plus assumption of the $32,000,000 of outstanding debt encumbering the property at September 29, 2006, the closing date. The purchaser, RVI Group, is the residual value insurer with respect to the property. As previously disclosed, Owens-Illinois has advised the Operating Partnership that it will be vacating the property at the expiration of its lease term, September 30, 2006. Sphere: Related Content
On March 14, 2006, The Newkirk Master Limited Partnership, the operating partnership of Newkirk Realty Trust, Inc., entered into an agreement to sell its Toledo, Ohio property currently leased to Owens-Illinois for a purchase price of $33,000,000, $1,000,000 in cash plus assumption of the $32,000,000 of outstanding debt encumbering the property at September 29, 2006, the closing date. The purchaser, RVI Group, is the residual value insurer with respect to the property. As previously disclosed, Owens-Illinois has advised the Operating Partnership that it will be vacating the property at the expiration of its lease term, September 30, 2006. Sphere: Related Content
Malaysia's Tiong Nam Logistics to Issue Property Backed Bonds
Yahoo Finance - March 22, 2006
Tiong Nam Logistics Bhd. (8397.KU) is looking to raise around MYR150 million ($40.6 million) through the issue of MYR269.41 million in discounted asset-backed Islamic securities in the second quarter of the year. The Malaysian haulage firm wants to raise the funds to reduce debt and for working capital.
Five units of Tiong Nam sold assets including warehouses and offices to a special purpose vehicle called ABS Logistics Bhd. for MYR191.6 million. The units also agreed to lease back the assets for up to 10 years. ABS Logistics will sell five classes of discounted Islamic securities using the Ijarah - or leaseback principle. The Class A paper will be for around MYR100 million, the Class B for around MYR20 million, the Class C at MYR40 million, the Class D at MYR44.5 million and the Class E for around MYR64.91 million. The vehicle will fund the purchase of the assets with MYR147 million in cash and the proceeds from the MYR44.5 million mezzanine notes.
As part of the structure, Tiong Nam will have the option to buy back the assets at their fair market value 12 months prior to the expiry of the lease. If it elects not to exercise the option, ABS Logistics Bhd. has the right to sell the assets to other buyers. The offering is subject to approval by the Securities Commission and Tiong Nam shareholders. Sphere: Related Content
Tiong Nam Logistics Bhd. (8397.KU) is looking to raise around MYR150 million ($40.6 million) through the issue of MYR269.41 million in discounted asset-backed Islamic securities in the second quarter of the year. The Malaysian haulage firm wants to raise the funds to reduce debt and for working capital.
Five units of Tiong Nam sold assets including warehouses and offices to a special purpose vehicle called ABS Logistics Bhd. for MYR191.6 million. The units also agreed to lease back the assets for up to 10 years. ABS Logistics will sell five classes of discounted Islamic securities using the Ijarah - or leaseback principle. The Class A paper will be for around MYR100 million, the Class B for around MYR20 million, the Class C at MYR40 million, the Class D at MYR44.5 million and the Class E for around MYR64.91 million. The vehicle will fund the purchase of the assets with MYR147 million in cash and the proceeds from the MYR44.5 million mezzanine notes.
As part of the structure, Tiong Nam will have the option to buy back the assets at their fair market value 12 months prior to the expiry of the lease. If it elects not to exercise the option, ABS Logistics Bhd. has the right to sell the assets to other buyers. The offering is subject to approval by the Securities Commission and Tiong Nam shareholders. Sphere: Related Content
British Land Sells B&Q DIY Store at Record Yield
icTeesside - March 22, 2006
British Land has sold a Teesside property for £29.2m in one of the North-East's biggest retail warehouse deals in recent years. The 122,000sq ft property, which is minutes from British Land's 340,000sq ft Teesside Retail Park between Stockton and Middlesbrough, was placed on the market in December with a guide price of £27.1m.
It is believed to have been sold to a London company which invests in property for wealthy Asian investors. The property is let on a 20-year lease to DIY chain B&Q which employs over 200 staff at the store - one of its largest in the UK.
The property has been sold with a rent review pencilled in for September 2006. It is expected the new landlord will be able to raise rents from their current level of £1.4m, or £11.74 per sq ft to £13.50 per sq ft rent. The selling price represents a 4.64% initial rental yield or 5.2% once the higher rent is achieved. The market for bulky good retail warehouses has run into head winds in the past 18 months in the wake of the housing slowdown and struggling performance from DIY companies. Sphere: Related Content
British Land has sold a Teesside property for £29.2m in one of the North-East's biggest retail warehouse deals in recent years. The 122,000sq ft property, which is minutes from British Land's 340,000sq ft Teesside Retail Park between Stockton and Middlesbrough, was placed on the market in December with a guide price of £27.1m.
It is believed to have been sold to a London company which invests in property for wealthy Asian investors. The property is let on a 20-year lease to DIY chain B&Q which employs over 200 staff at the store - one of its largest in the UK.
The property has been sold with a rent review pencilled in for September 2006. It is expected the new landlord will be able to raise rents from their current level of £1.4m, or £11.74 per sq ft to £13.50 per sq ft rent. The selling price represents a 4.64% initial rental yield or 5.2% once the higher rent is achieved. The market for bulky good retail warehouses has run into head winds in the past 18 months in the wake of the housing slowdown and struggling performance from DIY companies. Sphere: Related Content
Amazon Signs Build-to-Suit for 700,000 SF Fulfilment Center in Leipzig
Europe Real Estate - March 22, 2006
Eurinpro has signed an agreement with global online retailer Amazon.de for the development of an over 70,000 sqm warehouse in the East German city of Leipzig. Amazon contacted Eurinpro in its search for additional fulfilment capacity in Germany. Amazons growth and product range expansion made the company look for additional capacity. Construction starts in March 2006.
The site lies only 2 km from Leipzig city centre and 2 km from the A14 highway. The warehouse will offer connection to one of the main roads that leads into Leipzig centre and has an on-site tram stop. Leipzig currently proves to be a hot spot within Germany, attracting big German industries such as BMW, Porsche and DHL. Sphere: Related Content
Eurinpro has signed an agreement with global online retailer Amazon.de for the development of an over 70,000 sqm warehouse in the East German city of Leipzig. Amazon contacted Eurinpro in its search for additional fulfilment capacity in Germany. Amazons growth and product range expansion made the company look for additional capacity. Construction starts in March 2006.
The site lies only 2 km from Leipzig city centre and 2 km from the A14 highway. The warehouse will offer connection to one of the main roads that leads into Leipzig centre and has an on-site tram stop. Leipzig currently proves to be a hot spot within Germany, attracting big German industries such as BMW, Porsche and DHL. Sphere: Related Content
KPMG in Talks for New UK HQ Office Building at Canary Wharf
KPMG UK - March 23, 2006
KPMG LLP has agreed to enter into detailed discussions with Canary Wharf Group plc with a view to them providing a new, 400,000 sq ft purpose built and designed headquarters building for the UK firm in 2009. The building would replace and significantly increase the space currently occupied by KPMG in One Canada Square. KPMG has decided that the firm should maintain its presence in both Blackfriars and Canary Wharf for the medium to long term. If its plans are implemented, about two thirds of KPMG's London based partners and staff will be located in Canary Wharf from 2009. Sphere: Related Content
KPMG LLP has agreed to enter into detailed discussions with Canary Wharf Group plc with a view to them providing a new, 400,000 sq ft purpose built and designed headquarters building for the UK firm in 2009. The building would replace and significantly increase the space currently occupied by KPMG in One Canada Square. KPMG has decided that the firm should maintain its presence in both Blackfriars and Canary Wharf for the medium to long term. If its plans are implemented, about two thirds of KPMG's London based partners and staff will be located in Canary Wharf from 2009. Sphere: Related Content
KinderCare Secures $650,000,000 Credit Tenant Loan on 713 Child Learning Centers
KinderCare (aka Knowledge Learning Corporation) has entered into a ten-year fixed rate $650,000,000 mortgage financing at 5.236% on 713 children's learning centers totaling 5,119,320 net rentable square feet and located in 37 states. The loans are backed by a 15-year bondable triple net Master Lease for the individual properties. The scheduled base rent shall be subject to CPI increases every five years, not to exceed a 7% maximum increase.
In January 2005, Knowledge Learning Corporation, based in Golden, Colorado, purchased KinderCare Learning Centers for approximately $550 million, plus the assumption of approximately $483 million of indebtedness. The combined company operates 1,900 early childhood education and child care centers, 656 before-and-after school programs and 123 employer-sponsored child care centers located in 39 states and Washington, D.C., serving more than 200,000 children and employing approximately 41,000 people. Sphere: Related Content
In January 2005, Knowledge Learning Corporation, based in Golden, Colorado, purchased KinderCare Learning Centers for approximately $550 million, plus the assumption of approximately $483 million of indebtedness. The combined company operates 1,900 early childhood education and child care centers, 656 before-and-after school programs and 123 employer-sponsored child care centers located in 39 states and Washington, D.C., serving more than 200,000 children and employing approximately 41,000 people. Sphere: Related Content
Hovnanian Enterprises Enters Build-to-Suit For New Office Building in NJ
MarketWatch - March 23, 2006
Mack-Cali Realty Corporation (CLI) today announced that it has entered into a joint venture agreement with The PRC Group to develop a 92,878 square-foot class A office building in Red Bank, New Jersey. The entire building has been pre-leased to Hovnanian Enterprises, Inc. on a triple net basis for 10 years.
The building will be part of a two-building complex, known as Red Bank Corporate Plaza, to be developed by Mack-Cali. Expected to be completed by the third quarter of 2007, the building includes 88,000 square feet of office space, 4,878 square feet of retail space, and a four-story parking garage. The second building in the complex, a two-story, 18,560 square-foot class A office building, will be developed at a later date.
The property will be developed on a 3.4-acre land site located at 141 West Front Street in downtown Red Bank contributed to the joint venture by The PRC Group. Mack-Cali will serve as the leasing agent and co-management agent for the complex. No broker was involved in the Hovnanian transaction. Sphere: Related Content
Mack-Cali Realty Corporation (CLI) today announced that it has entered into a joint venture agreement with The PRC Group to develop a 92,878 square-foot class A office building in Red Bank, New Jersey. The entire building has been pre-leased to Hovnanian Enterprises, Inc. on a triple net basis for 10 years.
The building will be part of a two-building complex, known as Red Bank Corporate Plaza, to be developed by Mack-Cali. Expected to be completed by the third quarter of 2007, the building includes 88,000 square feet of office space, 4,878 square feet of retail space, and a four-story parking garage. The second building in the complex, a two-story, 18,560 square-foot class A office building, will be developed at a later date.
The property will be developed on a 3.4-acre land site located at 141 West Front Street in downtown Red Bank contributed to the joint venture by The PRC Group. Mack-Cali will serve as the leasing agent and co-management agent for the complex. No broker was involved in the Hovnanian transaction. Sphere: Related Content
Rinascente Group to Raise €1.5 Billion in Sale Leaseback of 20 Stores in Italy
The Financial Times reports that the consortium which last year bought Italian retailer La Rinascente is set to sell off its entire real estate portfolio, which could raise up to €1.5bn. The business was bought a year ago for €888m by Pirelli, the Italian company, Deutsche Bank and Investitori Associati, an Italian private equity group.
The trio plan to sell all 20 of the stores they acquired, earning back more than they paid for the entire acquisition. It is understood that the group will keep its La Rinascente-branded stores on long-term sale and leasebacks but will sell its mid-market Upim department stores outright to other retailers or property groups. Sphere: Related Content
The trio plan to sell all 20 of the stores they acquired, earning back more than they paid for the entire acquisition. It is understood that the group will keep its La Rinascente-branded stores on long-term sale and leasebacks but will sell its mid-market Upim department stores outright to other retailers or property groups. Sphere: Related Content
Friday, March 24, 2006
Generale de Sante SA Completes $639 Million Sale Leaseback of 28 Clinics in France
BayStreet - March 23, 2006
Metrovacesa has signed an agreement, through its subsidiary Gecina, to purchase 28 health centres belonging to Générale de Santé for €536 million. Gecina is to invest €30 million in the renovation and extension of the installations.
The transaction is expected to close at the end of June 2006 and will involve a lease of between 10 and 14 years which will generate annual rents of €32.4 million, for a yield of 6.04%.
Générale de Santé, a company listed on the Paris Bourse, is the leading private company in the hospital market in France. It has a 15% market share and obtained 1,435 million in revenues. The group is also present in Italy and has a network of 172 health centres, with a capacity of 14,400 beds. Sphere: Related Content
Metrovacesa has signed an agreement, through its subsidiary Gecina, to purchase 28 health centres belonging to Générale de Santé for €536 million. Gecina is to invest €30 million in the renovation and extension of the installations.
The transaction is expected to close at the end of June 2006 and will involve a lease of between 10 and 14 years which will generate annual rents of €32.4 million, for a yield of 6.04%.
Générale de Santé, a company listed on the Paris Bourse, is the leading private company in the hospital market in France. It has a 15% market share and obtained 1,435 million in revenues. The group is also present in Italy and has a network of 172 health centres, with a capacity of 14,400 beds. Sphere: Related Content
West LB Seeking Sale Leaseback of European Office Portfolio
Estates Gazette reports that West LB is looking for a purchaser for 500,000 sq ft of freehold property across Europe. The German bank is the latest occupier looking to capitalise on investor appetite for property as a means of achieving greater flexibility across its estate.
Cushman & Wakefield has been instructed to market the Euro 150 million sale-and-leaseback portfolio, which includes West LB's former headquarters at 51 Moorgate, EC2. The rest of the portfolio is made up of head offices in Paris, Luxembourg, Milan, Istanbul and Hong Kong, and three German offices in Bonn, Dortmund and Dusseldorf. It will lease back around 80% of the portfolio by rental value on five- to 10-year leases. West LB's present leasehold headquarters at Woolgate Exchange, EC2, which Bankhaus Woelbern is selling, is not part of the deal. The proposed sale is part of a wider review of the bank's property needs.
West LB will join a growing list of occupiers selling off their freeholds for strategic reasons, such as ABN AMRO and Abbey. Sphere: Related Content
Cushman & Wakefield has been instructed to market the Euro 150 million sale-and-leaseback portfolio, which includes West LB's former headquarters at 51 Moorgate, EC2. The rest of the portfolio is made up of head offices in Paris, Luxembourg, Milan, Istanbul and Hong Kong, and three German offices in Bonn, Dortmund and Dusseldorf. It will lease back around 80% of the portfolio by rental value on five- to 10-year leases. West LB's present leasehold headquarters at Woolgate Exchange, EC2, which Bankhaus Woelbern is selling, is not part of the deal. The proposed sale is part of a wider review of the bank's property needs.
West LB will join a growing list of occupiers selling off their freeholds for strategic reasons, such as ABN AMRO and Abbey. Sphere: Related Content
Groupe Casino Completes Euro 86.3 Million Sale Leaseback of Headquarters in France
AFX reports that French supermarket retailer Casino Guichard Perrachon said it has sold its headquarters in St Etienne, France, to the UK fund Matrix for 86.3 mln euro and will lease it back under a 10-year arrangement as part of a strategy of externalising its offices and warehouses.
Sphere: Related Content
WA Shearings Completes £110m Sale Leaseback 39 UK Hotels
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
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
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
Subscribe to:
Posts (Atom)
