CoStar Web Site - August 24, 2006
Software firm CA Inc. (NYSE:CA) agreed to a sale-leaseback of its world headquarters at One CA Plaza in Islandia, NY, to private investors Island Headquarters Operators LLC and Islandia Operators LLC for $204.3 million, or approximately $262.50 per square foot. CRIC Capital LLC, in partnership with Boston, MA-based Prudential Real Estate Investors, manages the investment group.
The leaseback portion of the agreement included a 15-year term with an option for CA to renew the term up to 35 years, according to a filing with the U.S. Securities and Exchange Commission. The monthly base rent is $1.26 million with an annual increase of .78% through year 11. After year 11, the rent will remain constant until the initial term expires.
The Long Island campus is a 60-acre site that includes three connected buildings totaling approximately 778,000 rentable square feet. The Class A complex includes: Central Tower, with six-stories and a lower level, a two-story Annex Building and a two-story Atrium Building. The 14-year-old property went through an upgrade, expansion and partial renovation in 1999.
Jones Lang LaSalle's Washington, DC capital markets team, assisted by JLL's Manhattan capital markets team, worked with CA on the sale-leaseback of the property.
Sphere: Related Content
Sunday, August 27, 2006
Friday, August 25, 2006
Whirlpool Enters $600 Million Build-to-Suit Agreement for 11 Distribution Centers
Property Review.com.au - August 23, 2006
Local property trust DB RREEF has agreed to spend $600 million to acquire Whirlpool logistics facilities across the globe. The new investment and building program with US-based Whirlpool Corporation includes 11 new global logistics facilities across the USA, Canada and Poland.
The agreement with Whirlpool will eventually see DB RREEF progressively acquire over a three year period nine state-of-the-art industrial distribution facilities in the USA and Canada as well as two factory distribution centres in the USA and Poland, totalling approximately 10 million sq ft.
Each of these centres will be fully leased to Whirlpool for 10 years, with a further four, 5-year options.
Whirlpool is the world’s leading manufacturer and marketer of home appliances and is ranked number 152 on the 2006 Fortune 500 list with worldwide sales in excess of $US19 billion per annum.
The first distribution centre of 500,000 sq ft is currently under construction and due for completion in the first quarter of 2007. Further sites have been secured for a distribution centre of 500,000 sq ft to be built in Toronto, Canada ad two factory distribution centres to be built in the Midwest, USA and Wroclaw, Poland. Site selection for the other seven distribution centres to be located in the USA and Canada, is well advanced ranging in size from 300,000 sq ft to over 1,000,000 sq ft.
Whirlpool Corporation’s Director of Global Corporate Real Estate, Lee Utke said the investment program gives Whirlpool maximum flexibility with respect to the ultimate location and size of the individual distribution centres. Sphere: Related Content
Local property trust DB RREEF has agreed to spend $600 million to acquire Whirlpool logistics facilities across the globe. The new investment and building program with US-based Whirlpool Corporation includes 11 new global logistics facilities across the USA, Canada and Poland.
The agreement with Whirlpool will eventually see DB RREEF progressively acquire over a three year period nine state-of-the-art industrial distribution facilities in the USA and Canada as well as two factory distribution centres in the USA and Poland, totalling approximately 10 million sq ft.
Each of these centres will be fully leased to Whirlpool for 10 years, with a further four, 5-year options.
Whirlpool is the world’s leading manufacturer and marketer of home appliances and is ranked number 152 on the 2006 Fortune 500 list with worldwide sales in excess of $US19 billion per annum.
The first distribution centre of 500,000 sq ft is currently under construction and due for completion in the first quarter of 2007. Further sites have been secured for a distribution centre of 500,000 sq ft to be built in Toronto, Canada ad two factory distribution centres to be built in the Midwest, USA and Wroclaw, Poland. Site selection for the other seven distribution centres to be located in the USA and Canada, is well advanced ranging in size from 300,000 sq ft to over 1,000,000 sq ft.
Whirlpool Corporation’s Director of Global Corporate Real Estate, Lee Utke said the investment program gives Whirlpool maximum flexibility with respect to the ultimate location and size of the individual distribution centres. Sphere: Related Content
Moody's Rates Eur 1 Billion in CMBS Secured by Vendex Stores Portfolio
Moody's Investors Service - August 22, 2006
The transaction represents the securitisation of a loan secured by 70 retail properties and 3 car parks in the Netherlands, used to re-finance a bridge loan provided by NIBC Bank N.V. and ING Real Estate Finance N.V. In November 2005 a consortium of IEF Capital, Bouwfonds Asset Management and Stichting Pensioenfonds voor de Gezondheid, Geestelijke en Maatschappelijke belangen (better known s "PGGM") acquired the real estate portfolio of Vendex KBB which was sold by public auction. The sale was structured via a share deal.
The portfolio of properties consists of 70 high street retail properties and 3 car parks with an average age of approximately 36 years, a gross floor area of 543,133 square meters and 1,022 parking spaces. All properties are rented out on long term 10-25 year, contracts to operating companies of the Maxeda group, with Hema B.V. representing 44%, Magazijn "De Bijenkorf" B.V. 28%, Vroom & Dreesmann Warenhuizen B.V (“V&D”) 21% and the car parks 7% of the €69 million U/W annual gross rent. The properties are fully occupied. Table 1 in Appendix shows the U/W market value, vacant possession value (VPV), gross rent and ERV for each tenant. The total portfolio U/W market value is €1.37 billion, the VPV is €1.39 billion; [1.5]% above the market value due to the reversionary potential of the properties (U/W gross rent €69 million, ERV €78.4 million).
The portfolio was acquired in November 2005. The fiscal book value of the portfolio amounts to approximately €111 million that creates a deferred tax liability in case of a sale of the assets. In case of the enforcement of the mortgage, the Issuer will rank prior to the tax authorities.
Although the three tenants are separate legal entities their respective financial
obligations are guaranteed by their joint indirect parent Maxeda B.V. (former Vendex KBB B.V.). Victoria Acquisition III B.V. (rated B1) is the parent company holding 100% of the shares in Maxeda. Maxeda is a leading non-food retailer in the Netherlands, and is active in six other European countries: Belgium, Luxembourg, Denmark, Germany, France and Spain.
The tenants to a large extent operate their retail format independently as they have different market focus. HEMA is a unique general merchandise retailer offering a wide range of attractively designed, good value, everyday household items, under the HEMA brand name. V&D is the only national middle-market department store chain in the Netherlands. V&D offers a wide variety of products in several categories, including apparel, lifestyle and home entertainment, mostly under its own labels. Bijenkorf is the only national up-market department store chain in the Netherlands. Bijenkorf offers a wide variety of up-market products, including apparel, cosmetics, accessories, household goods, leisure goods, and fine goods, with international premium brands and A-brands as well as private label brands. Sphere: Related Content
The transaction represents the securitisation of a loan secured by 70 retail properties and 3 car parks in the Netherlands, used to re-finance a bridge loan provided by NIBC Bank N.V. and ING Real Estate Finance N.V. In November 2005 a consortium of IEF Capital, Bouwfonds Asset Management and Stichting Pensioenfonds voor de Gezondheid, Geestelijke en Maatschappelijke belangen (better known s "PGGM") acquired the real estate portfolio of Vendex KBB which was sold by public auction. The sale was structured via a share deal.
The portfolio of properties consists of 70 high street retail properties and 3 car parks with an average age of approximately 36 years, a gross floor area of 543,133 square meters and 1,022 parking spaces. All properties are rented out on long term 10-25 year, contracts to operating companies of the Maxeda group, with Hema B.V. representing 44%, Magazijn "De Bijenkorf" B.V. 28%, Vroom & Dreesmann Warenhuizen B.V (“V&D”) 21% and the car parks 7% of the €69 million U/W annual gross rent. The properties are fully occupied. Table 1 in Appendix shows the U/W market value, vacant possession value (VPV), gross rent and ERV for each tenant. The total portfolio U/W market value is €1.37 billion, the VPV is €1.39 billion; [1.5]% above the market value due to the reversionary potential of the properties (U/W gross rent €69 million, ERV €78.4 million).
The portfolio was acquired in November 2005. The fiscal book value of the portfolio amounts to approximately €111 million that creates a deferred tax liability in case of a sale of the assets. In case of the enforcement of the mortgage, the Issuer will rank prior to the tax authorities.
Although the three tenants are separate legal entities their respective financial
obligations are guaranteed by their joint indirect parent Maxeda B.V. (former Vendex KBB B.V.). Victoria Acquisition III B.V. (rated B1) is the parent company holding 100% of the shares in Maxeda. Maxeda is a leading non-food retailer in the Netherlands, and is active in six other European countries: Belgium, Luxembourg, Denmark, Germany, France and Spain.
The tenants to a large extent operate their retail format independently as they have different market focus. HEMA is a unique general merchandise retailer offering a wide range of attractively designed, good value, everyday household items, under the HEMA brand name. V&D is the only national middle-market department store chain in the Netherlands. V&D offers a wide variety of products in several categories, including apparel, lifestyle and home entertainment, mostly under its own labels. Bijenkorf is the only national up-market department store chain in the Netherlands. Bijenkorf offers a wide variety of up-market products, including apparel, cosmetics, accessories, household goods, leisure goods, and fine goods, with international premium brands and A-brands as well as private label brands. Sphere: Related Content
Monday, August 21, 2006
WestLB Completes Sale Leaseback of 11 Building Real Estate Portfolio
WestLB Web Site - August 17, 2006
WestLB nal real AG and Sireo have completed the sale and leaseback of a portfolio of selected international buildings.
The transaction contains 11 properties in Germany, France, United Kingdom, Hong Kong, Italy, Turkey and Luxembourg. The majority of properties will be fully leased back by WestLB predominately for long-term.
“We are taking advantage of the strong demand for quality office space to sell these buildings and re-invest the capital in our core banking activities” said Klaus Michael Geiger, the board member responsible for this transaction in WestLB.
“We are taking advantage of the strong demand for quality office space to sell these buildings and re-invest the capital in our core banking activities” said Klaus Michael Geiger, the board member responsible for this transaction in WestLB.
The properties outside of Germany were acquired on behalf of the Sireo Immobilienfonds No. 4 SICAV managed by SIM Sireo Investment Management. The German properties were purchased by Sireo itself and shall be resold in the near future.
SIM Sireo Investment Management S.à r.L. is a 100 percent subsidiary of Sireo Real Estate GmbH and manages the fund activities from Luxembourg.
WestLB was advised by Cushman & Wakefield and Allen & Overy LLP. Sphere: Related Content
WestLB nal real AG and Sireo have completed the sale and leaseback of a portfolio of selected international buildings.
The transaction contains 11 properties in Germany, France, United Kingdom, Hong Kong, Italy, Turkey and Luxembourg. The majority of properties will be fully leased back by WestLB predominately for long-term.
“We are taking advantage of the strong demand for quality office space to sell these buildings and re-invest the capital in our core banking activities” said Klaus Michael Geiger, the board member responsible for this transaction in WestLB.
“We are taking advantage of the strong demand for quality office space to sell these buildings and re-invest the capital in our core banking activities” said Klaus Michael Geiger, the board member responsible for this transaction in WestLB.
The properties outside of Germany were acquired on behalf of the Sireo Immobilienfonds No. 4 SICAV managed by SIM Sireo Investment Management. The German properties were purchased by Sireo itself and shall be resold in the near future.
SIM Sireo Investment Management S.à r.L. is a 100 percent subsidiary of Sireo Real Estate GmbH and manages the fund activities from Luxembourg.
WestLB was advised by Cushman & Wakefield and Allen & Overy LLP. Sphere: Related Content
Sunday, August 20, 2006
Poundex Leases New 550,000-SF HQ & Distribution Building
GlobeSt.com - August 17, 2006
Furniture importer Poundex Associates Corp. has signed a 10-year lease for 550,000 sf of space at Majestic Realty Co.'s 400-acre Majestic Grand Crossing project that will serve as the new corporate headquarters for Poundex. The 550,000-sf facility will replace other facilities in the City of Industry that now serve as the headquarters for Poundex.
Majestic originally began the 550,000-sf Poundex building as a speculative project, but soon after construction began, Poundex agreed to lease the entire building, which is scheduled to be completed in the spring. Terms of the deal were not disclosed.
The new Poundex facility will include about 8,000 sf of two-story headquarters office space, a shipping office and the rest warehouse space. The furniture importer, which has been in the City of Industry for 16 years, now occupies about 300,000 sf in two buildings, one owned and one leased, and is expected to sell the building it owns.
Established in 1989, Poundex is an importer and distributor for fine furniture, selling to dealers and distributors. The company also has offices in New Jersey and Georgia. Sphere: Related Content
Furniture importer Poundex Associates Corp. has signed a 10-year lease for 550,000 sf of space at Majestic Realty Co.'s 400-acre Majestic Grand Crossing project that will serve as the new corporate headquarters for Poundex. The 550,000-sf facility will replace other facilities in the City of Industry that now serve as the headquarters for Poundex.
Majestic originally began the 550,000-sf Poundex building as a speculative project, but soon after construction began, Poundex agreed to lease the entire building, which is scheduled to be completed in the spring. Terms of the deal were not disclosed.
The new Poundex facility will include about 8,000 sf of two-story headquarters office space, a shipping office and the rest warehouse space. The furniture importer, which has been in the City of Industry for 16 years, now occupies about 300,000 sf in two buildings, one owned and one leased, and is expected to sell the building it owns.
Established in 1989, Poundex is an importer and distributor for fine furniture, selling to dealers and distributors. The company also has offices in New Jersey and Georgia. Sphere: Related Content
Boom For Australian Property Funds Has Only Just Begun
The Australian - August 19, 2006
The Australian property funds growth story has barely begun. The $120 billion now invested in listed and unlisted property funds will grow fourfold, according to business forecaster Phil Ruthven. Ruthven, chairman of IBISWorld, says Australia's total non-residential property assets -- commercial, retail, industrial and rural -- are worth about $1.2 trillion. He expects about 40 per cent of that will be securitised over the next few decades, in line with the US.
Ruthven says Australian corporations are finally waking up to the realisation they should be achieving returns on capital of four times the bond rate -- impossible if substantial property assets are sitting on the balance sheet, returning 10 to 12 per cent.
Like Wesfarmers's Bunnings hardware store chain, which sold its property assets into a listed property trust, or Woolworths, which recently sold 11 key distribution centres to fund manager SAITeysMcMahon and Lend Lease, Ruthven predicts an increasing number of Australian corporations will sell off every property asset they own.
Universities, for example, control more than $30 billion in property assets, which Ruthven says should be sold off-balance sheet and leased back. Farms are another sector ripe for securitisation, he says, pointing to Challenger's $115 million Wine Trust as an example of the way forward.
Australia's listed property trusts (LPTs) were the best-returning asset class of all in the 10 years to December 2004, according to research commissioned by the Australian Stock Exchange last year. LPTs provided an after-tax return of between 10 and 12.3 per cent a year (depending on the investor's tax bracket) while Australian shares, for example, returned between 9.2 per cent and 11.6 per cent a year. Sphere: Related Content
The Australian property funds growth story has barely begun. The $120 billion now invested in listed and unlisted property funds will grow fourfold, according to business forecaster Phil Ruthven. Ruthven, chairman of IBISWorld, says Australia's total non-residential property assets -- commercial, retail, industrial and rural -- are worth about $1.2 trillion. He expects about 40 per cent of that will be securitised over the next few decades, in line with the US.
Ruthven says Australian corporations are finally waking up to the realisation they should be achieving returns on capital of four times the bond rate -- impossible if substantial property assets are sitting on the balance sheet, returning 10 to 12 per cent.
Like Wesfarmers's Bunnings hardware store chain, which sold its property assets into a listed property trust, or Woolworths, which recently sold 11 key distribution centres to fund manager SAITeysMcMahon and Lend Lease, Ruthven predicts an increasing number of Australian corporations will sell off every property asset they own.
Universities, for example, control more than $30 billion in property assets, which Ruthven says should be sold off-balance sheet and leased back. Farms are another sector ripe for securitisation, he says, pointing to Challenger's $115 million Wine Trust as an example of the way forward.
Australia's listed property trusts (LPTs) were the best-returning asset class of all in the 10 years to December 2004, according to research commissioned by the Australian Stock Exchange last year. LPTs provided an after-tax return of between 10 and 12.3 per cent a year (depending on the investor's tax bracket) while Australian shares, for example, returned between 9.2 per cent and 11.6 per cent a year. Sphere: Related Content
Saturday, August 19, 2006
Comcast Signs Build-to-Suit Agreement for New Call Center
GlobeSt.com - August 17, 2006
Opus Northwest LLC has inked a 10-year lease with publicly held Comcast for a custom-designed customer service center in Lynnwood, WA. The 87,385-sf building will be located in the 92-acre Opus Northpointe Corporate Campus near the intersection of I-5 and 164th Street Southwest. Occupancy is scheduled for July 2007.
Tom Bohman from Cushman & Wakefield and Garth Olsen from GVA Kidder Matthews represented Comcast and Tom Bohman and Gary Bullington from C&W represented Opus Northwest. Although the negotiated lease rate is not being disclosed by the parties involved, local sources tell GlobeSt.com that the lease rate for this type of product should range between $15- and $18 per sf per year.
The customer service center will be Comcast’s third in the Puget Sound region. The others are in Fife and Everett. Comcast officials say all three centers will operate as one virtual call center with full back-up capability. In the coming year, Comcast plans to build nine new call centers and expand 12 existing locations. Sphere: Related Content
Opus Northwest LLC has inked a 10-year lease with publicly held Comcast for a custom-designed customer service center in Lynnwood, WA. The 87,385-sf building will be located in the 92-acre Opus Northpointe Corporate Campus near the intersection of I-5 and 164th Street Southwest. Occupancy is scheduled for July 2007.
Tom Bohman from Cushman & Wakefield and Garth Olsen from GVA Kidder Matthews represented Comcast and Tom Bohman and Gary Bullington from C&W represented Opus Northwest. Although the negotiated lease rate is not being disclosed by the parties involved, local sources tell GlobeSt.com that the lease rate for this type of product should range between $15- and $18 per sf per year.
The customer service center will be Comcast’s third in the Puget Sound region. The others are in Fife and Everett. Comcast officials say all three centers will operate as one virtual call center with full back-up capability. In the coming year, Comcast plans to build nine new call centers and expand 12 existing locations. Sphere: Related Content
Tuesday, August 15, 2006
Ahold to Pursue Sale Leaseback of US Storess?
The Guardian - August 14, 2006
Two leading shareholders in Royal Ahold called today for the break-up of the troubled retail group, including the sale of its US business. The hedge funds Centaurus Capital and Paulson, which together own 6.4% in Ahold, said the group needed 'drastic strategic action' to deliver shareholder value and urged talks with the board and other shareholders about its future. They said a restructuring could value Ahold at €9 a share, or a quarter more than now.
The Dutch company, often described as Europe's Enron, almost collapsed three years ago after overstating earnings at its US Foodservice distribution business by £970m in the Netherlands' worst accounting scandal. Last year it paid €803m to settle a US class-action suit.
The London-based Centaurus and New York-based Paulson said: "We believe keeping Ahold's disparate retail and wholesale interests together diminishes shareholder value and limits the operating potential of the individual businesses.
The US businesses, including the supermarket chains Stop & Shop, Giant and Tops, account for €33bn of Ahold's annual sales of €44.5bn but Mr Moberg admits that they face fierce competition from rivals such as Wal-Mart and are struggling to meet their 5% operating margin target.
Sources close to the hedge funds said nobody at board level had any direct experience of the ferociously competitive US retail market.
It is stressed that the sale of the US businesses is just one, albeit a preferred, option and others include the sale and lease-back of property and the disposal of several underperforming chains. Sphere: Related Content
Two leading shareholders in Royal Ahold called today for the break-up of the troubled retail group, including the sale of its US business. The hedge funds Centaurus Capital and Paulson, which together own 6.4% in Ahold, said the group needed 'drastic strategic action' to deliver shareholder value and urged talks with the board and other shareholders about its future. They said a restructuring could value Ahold at €9 a share, or a quarter more than now.
The Dutch company, often described as Europe's Enron, almost collapsed three years ago after overstating earnings at its US Foodservice distribution business by £970m in the Netherlands' worst accounting scandal. Last year it paid €803m to settle a US class-action suit.
The London-based Centaurus and New York-based Paulson said: "We believe keeping Ahold's disparate retail and wholesale interests together diminishes shareholder value and limits the operating potential of the individual businesses.
The US businesses, including the supermarket chains Stop & Shop, Giant and Tops, account for €33bn of Ahold's annual sales of €44.5bn but Mr Moberg admits that they face fierce competition from rivals such as Wal-Mart and are struggling to meet their 5% operating margin target.
Sources close to the hedge funds said nobody at board level had any direct experience of the ferociously competitive US retail market.
It is stressed that the sale of the US businesses is just one, albeit a preferred, option and others include the sale and lease-back of property and the disposal of several underperforming chains. Sphere: Related Content
Marsh Supermarkets to Sell and Leaseback Property Portfolio
SEC Edgar Archive - August 14, 2006
Marsh Supermarkets, Inc. (Nasdaq Global Market: MARSA) today announced that its Board of Directors has reaffirmed its support for the acquisition of Marsh by MSH Supermarkets Holding Corp., an affiliate of Sun Capital Partners, Inc., under which MSH Supermarkets will acquire all of the outstanding shares of both of classes of common stock of Marsh for $11.125 per share in cash without any financing condition.
Separately, the Company noted that it had been advised by MSH Supermarkets and Cardinal Paragon, Inc. and Drawbridge Special Opportunities Advisors LLC, that those parties signed a letter of intent to enter into a sale/leaseback agreement under which Cardinal/Drawbridge would acquire a substantial portion of MSH Supermarkets owned property portfolio.
Terms of the agreement were not publicly released.
(Note, Marsh Supermarkets, Inc. owns 34 Marsh Supermarkets, 43 Village Pantry convenience stores, three distribution stores and a 160,000 square foot corporate headquarters in Indianapolis at net book value of approximately $240 million acording to the companys 2006 10-K filing.) Sphere: Related Content
Marsh Supermarkets, Inc. (Nasdaq Global Market: MARSA) today announced that its Board of Directors has reaffirmed its support for the acquisition of Marsh by MSH Supermarkets Holding Corp., an affiliate of Sun Capital Partners, Inc., under which MSH Supermarkets will acquire all of the outstanding shares of both of classes of common stock of Marsh for $11.125 per share in cash without any financing condition.
Separately, the Company noted that it had been advised by MSH Supermarkets and Cardinal Paragon, Inc. and Drawbridge Special Opportunities Advisors LLC, that those parties signed a letter of intent to enter into a sale/leaseback agreement under which Cardinal/Drawbridge would acquire a substantial portion of MSH Supermarkets owned property portfolio.
Terms of the agreement were not publicly released.
(Note, Marsh Supermarkets, Inc. owns 34 Marsh Supermarkets, 43 Village Pantry convenience stores, three distribution stores and a 160,000 square foot corporate headquarters in Indianapolis at net book value of approximately $240 million acording to the companys 2006 10-K filing.) Sphere: Related Content
Wednesday, August 09, 2006
German Publisher Handelsblatt HQ Sold For €40 million.
Doughty Hanson Web Site - August 8, 2006
Doughty Hanson & Co Real Estate today announces the sale of the Handelsblatt Headquarters to IXIS AEW Europe, the European real estate manager, for more than €40 million.
This transaction completes the sale of all of the assets in the Holtzbrinck Portfolio and will generate a 2.8x return on the investment. The Holtzbrinck Portfolio was acquired from German publishing group Georg von Holtzbrinck in January 2003.
Completed in 1982 on behalf of Handelsblatt, the publishing group which it has since accommodated, the property offers more than 9,900 sq m of office space and is situated in the Düsseldorf sub-market “Bankenviertel”, representing one of the class A locations in the North -Rhine-Westphalia capital.
The Holtzbrinck Portfolio was the fourth transaction by the Doughty Hanson & Co Real Estate I in the Solutions for Corporates programme. The Solutions for Corporates programme aims to create value for corporates by exploiting under-utilised company-owned property or partnering with corporates to solve complex property or occupational issues. Sphere: Related Content
Doughty Hanson & Co Real Estate today announces the sale of the Handelsblatt Headquarters to IXIS AEW Europe, the European real estate manager, for more than €40 million.
This transaction completes the sale of all of the assets in the Holtzbrinck Portfolio and will generate a 2.8x return on the investment. The Holtzbrinck Portfolio was acquired from German publishing group Georg von Holtzbrinck in January 2003.
Completed in 1982 on behalf of Handelsblatt, the publishing group which it has since accommodated, the property offers more than 9,900 sq m of office space and is situated in the Düsseldorf sub-market “Bankenviertel”, representing one of the class A locations in the North -Rhine-Westphalia capital.
The Holtzbrinck Portfolio was the fourth transaction by the Doughty Hanson & Co Real Estate I in the Solutions for Corporates programme. The Solutions for Corporates programme aims to create value for corporates by exploiting under-utilised company-owned property or partnering with corporates to solve complex property or occupational issues. Sphere: Related Content
Tuesday, August 08, 2006
National Oilwell Varco Signs 10-Year Lease for Office Building in Houston
Commercial Property News - August 07, 2006
As part of an expansion and consolidation in the Houston area, National Oilwell Varco inked a 10-year lease occupying a vacant seven-story office building. Terms of the lease were not disclosed.
The Houston-based company--which creates oil and gas drilling equipment--will take over the entirety of the 200,000-square-foot building, located at 7909 Parkwood Circle. The building is located at Beechnut and Beltway 8 between Highway 59 and the Westpark Tollway along Beltway 8, which allows easy access to downtown Houston, Sugarland and both Houston airports.
“The building’s proximity to the beltway as well as its efficient floor plan were attractive to National Oilwell. Additionally, they could lease the entire building and be the sole occupant,” Lucian Bukowski, vice president with Dallas-based The Staubach Co. who represented National Oilwell, told CPN.“This will allow them to expand and consolidate some functions and provide room for future growth.”
The building is owned by US Real Estate L.P. owns the building. Trammel Crow Co. is handling the leasing. Sphere: Related Content
As part of an expansion and consolidation in the Houston area, National Oilwell Varco inked a 10-year lease occupying a vacant seven-story office building. Terms of the lease were not disclosed.
The Houston-based company--which creates oil and gas drilling equipment--will take over the entirety of the 200,000-square-foot building, located at 7909 Parkwood Circle. The building is located at Beechnut and Beltway 8 between Highway 59 and the Westpark Tollway along Beltway 8, which allows easy access to downtown Houston, Sugarland and both Houston airports.
“The building’s proximity to the beltway as well as its efficient floor plan were attractive to National Oilwell. Additionally, they could lease the entire building and be the sole occupant,” Lucian Bukowski, vice president with Dallas-based The Staubach Co. who represented National Oilwell, told CPN.“This will allow them to expand and consolidate some functions and provide room for future growth.”
The building is owned by US Real Estate L.P. owns the building. Trammel Crow Co. is handling the leasing. Sphere: Related Content
Sunday, August 06, 2006
SAVVIS Gains $36.8 Million in Sale Leaseback of Fort Worth Data Center
CoStar Group - August 3, 2006
SAVVIS Communications Corp. purchased the building at 14901 FAA Blvd. in Fort Worth, TX from Digital Realty Trust for $13.8 million, or approximately $50.50 per square foot. The next day, it sold the building and all of the equipment to Digital Realty Trust for $50.6 million or $184.34 per foot.
Built in 2001, the 274,500-square-foot facility houses a data center for SAVVIS. The property was sold back to Digital on a sale/leaseback agreement for 15 years at $4.3 million per year (8.5% cap rate). The lease provides three five-year renewal options. Sphere: Related Content
SAVVIS Communications Corp. purchased the building at 14901 FAA Blvd. in Fort Worth, TX from Digital Realty Trust for $13.8 million, or approximately $50.50 per square foot. The next day, it sold the building and all of the equipment to Digital Realty Trust for $50.6 million or $184.34 per foot.
Built in 2001, the 274,500-square-foot facility houses a data center for SAVVIS. The property was sold back to Digital on a sale/leaseback agreement for 15 years at $4.3 million per year (8.5% cap rate). The lease provides three five-year renewal options. Sphere: Related Content
Thursday, August 03, 2006
Buffalo Grill Enters Eur 300 Million Sale Leaseback of 128 Restaurants in France
Buffalo Grill Web Site - August 1, 2006
Following a competitive bidding process, Buffalo Grill, France’s leading steakhouse chain, has entered into exclusive negotiations with Klépierre aimed at concluding a strategic partnership that would operate on two levels:
1. Partnering with Klépierre on the development of its branded restaurant business in France and abroad
2. Sale of a portfolio of 128 real estate assets nationwide in France.
The sale of this portfolio would be accompanied by the conclusion of commercial leases whose initial term would be nine years firm, renewable twice thereafter at the initiative of Buffalo Grill, on the basis of minimum guaranteed rents and subject to a variable rent clause tied to revenue growth.
The sale price would be based on a global appraised value for the real estate assets of around 300 million euros. In the coming days, this strategic partnership will be presented to Buffalo Grill’s personnel representatives and submitted to the approval of its supervisory board.
Buffalo Grill has 290 restaurants in Europe, mainly in France, and generated consolidated revenue of 278 million euros in 2005. The company is indirectly owned by the private equity fund Colony Investors VII and Colyzeo (via SAIP). Sphere: Related Content
Following a competitive bidding process, Buffalo Grill, France’s leading steakhouse chain, has entered into exclusive negotiations with Klépierre aimed at concluding a strategic partnership that would operate on two levels:
1. Partnering with Klépierre on the development of its branded restaurant business in France and abroad
2. Sale of a portfolio of 128 real estate assets nationwide in France.
The sale of this portfolio would be accompanied by the conclusion of commercial leases whose initial term would be nine years firm, renewable twice thereafter at the initiative of Buffalo Grill, on the basis of minimum guaranteed rents and subject to a variable rent clause tied to revenue growth.
The sale price would be based on a global appraised value for the real estate assets of around 300 million euros. In the coming days, this strategic partnership will be presented to Buffalo Grill’s personnel representatives and submitted to the approval of its supervisory board.
Buffalo Grill has 290 restaurants in Europe, mainly in France, and generated consolidated revenue of 278 million euros in 2005. The company is indirectly owned by the private equity fund Colony Investors VII and Colyzeo (via SAIP). Sphere: Related Content
Wednesday, August 02, 2006
Macdonald Hotels Pursuing £250 Million Sale Leaseback of 23 Hotels
Times Online - July 31, 2006
Macdonald Hotels, the Scottish hotel operator backed by Bank of Scotland, will confirm today plans to raise more than £250 million by selling the property interest in 23 of its 69 hotels. The company, taken private three years ago in a £590 million deal, had been expected to sell 20 hotels worth £200 million through a sale and manage-back. However, its adviser, Deloitte, is understood to be marketing 23 properties, with a sale and leaseback now the likeliest method of disposal. Sphere: Related Content
Macdonald Hotels, the Scottish hotel operator backed by Bank of Scotland, will confirm today plans to raise more than £250 million by selling the property interest in 23 of its 69 hotels. The company, taken private three years ago in a £590 million deal, had been expected to sell 20 hotels worth £200 million through a sale and manage-back. However, its adviser, Deloitte, is understood to be marketing 23 properties, with a sale and leaseback now the likeliest method of disposal. Sphere: Related Content
Tuesday, August 01, 2006
Citigroup Sings Long Term Lease for New Tech Center Near Cincinnati
Commercial Property News - July 28, 2006
Citigroup North America has inked a 15-year lease with Duke Realty Corp. to occupy 176,000 square feet in the REIT's Landings of Blue Ash development near Cincinnati. Citigroup plans to locate a new information technology center at the site.
The financial services giant will occupy all of the 176,000-square-foot Landings I, which is currently under construction, with completion slated for October. Citigroup also plans to take 18,000 square feet, or about 10 percent, of the next building in the development, Landings II, which is scheduled for completion next year. The company plans eventually to employ more than 1,000 people in Blue Ash, Ohio, a suburb northeast of Cincinnati. Sphere: Related Content
Citigroup North America has inked a 15-year lease with Duke Realty Corp. to occupy 176,000 square feet in the REIT's Landings of Blue Ash development near Cincinnati. Citigroup plans to locate a new information technology center at the site.
The financial services giant will occupy all of the 176,000-square-foot Landings I, which is currently under construction, with completion slated for October. Citigroup also plans to take 18,000 square feet, or about 10 percent, of the next building in the development, Landings II, which is scheduled for completion next year. The company plans eventually to employ more than 1,000 people in Blue Ash, Ohio, a suburb northeast of Cincinnati. Sphere: Related Content
Saturday, July 29, 2006
Cummins Signs Long Term Lease for HQ Office
Cummins Web Site - July 27, 2006
Cummins Inc. (NYSE:CMI) announced today that it has reached a new lease agreement on its Corporate Office Building, 500 Jackson St., that will keep the Company a central part of downtown Columbus for many years to come. The renewal takes effect Aug. 1, 2006.
The current lease was scheduled to expire July 31, 2009. The renewal, which runs through July 2019, offers the Company competitive lease rates and allocates funds to allow Cummins to make improvements to the facility.
Cummins owns the land on which the 390,000 square foot facility sits, but has leased the building from Newkirk Master Limited Partnership since 1983. Approximately 760 Cummins employees work in the building, which serves as the corporate headquarters for Cummins. Sphere: Related Content
Cummins Inc. (NYSE:CMI) announced today that it has reached a new lease agreement on its Corporate Office Building, 500 Jackson St., that will keep the Company a central part of downtown Columbus for many years to come. The renewal takes effect Aug. 1, 2006.
The current lease was scheduled to expire July 31, 2009. The renewal, which runs through July 2019, offers the Company competitive lease rates and allocates funds to allow Cummins to make improvements to the facility.
Cummins owns the land on which the 390,000 square foot facility sits, but has leased the building from Newkirk Master Limited Partnership since 1983. Approximately 760 Cummins employees work in the building, which serves as the corporate headquarters for Cummins. Sphere: Related Content
Cisco Systems UK Headquaters Trades for £156 Million at 4.25% Yield
Property Week - July 27, 2006
Evans Randall, the privately owned investment bank, has bought Scottish Widows’ Lakeshore Scheme at Bedfont Lakes, Middlesex, for £156m.
In the biggest office transaction in the south-east outside London since 2000, Evans Randall has acquired three office blocks totalling 275,000 sq ft let to Cisco Systems. The purchase price reflects a yield of around 4.75%.
Evans Randall has spent nearly £500m on UK property in the last four weeks. It paid £197m for 33 Old Broad Street in the City of London and also bought five UK government fire control centres for £125m.
Michael Evans, chairman and chief executive at Evans Randall, said the bank hopes to invest up to £2bn on property in Europe next year. It is targeting properties priced between £75m to £300m.
Evans told Property Week: ‘What drives deals for us is the length of the deal, fixed increases in rent and exceptionally strong covenants like Cisco, which are rated by Standard & Poors as “A+”. We want to go for tenants rated “A” or better.’
The sale follows the regearing of Cisco’s lease at the offices in 2004. It has gone from paying £33.50/sq ft to £28/sq ft (£360.59-£301.39/sq m) and now has 19-years left unexpired on its lease.
The purchase price is the highest paid for offices in the south-east since 2000 when the entire scheme, totalling 750,000 sq ft (69,676 sq m), was bought by Scottish Widows from MEPC for £280m, reflecting a yield of 6.5%.
Jones Lang LaSalle acted for Scottish Widows; CB Richard Ellis advised Evans Randall. Sphere: Related Content
Evans Randall, the privately owned investment bank, has bought Scottish Widows’ Lakeshore Scheme at Bedfont Lakes, Middlesex, for £156m.
In the biggest office transaction in the south-east outside London since 2000, Evans Randall has acquired three office blocks totalling 275,000 sq ft let to Cisco Systems. The purchase price reflects a yield of around 4.75%.
Evans Randall has spent nearly £500m on UK property in the last four weeks. It paid £197m for 33 Old Broad Street in the City of London and also bought five UK government fire control centres for £125m.
Michael Evans, chairman and chief executive at Evans Randall, said the bank hopes to invest up to £2bn on property in Europe next year. It is targeting properties priced between £75m to £300m.
Evans told Property Week: ‘What drives deals for us is the length of the deal, fixed increases in rent and exceptionally strong covenants like Cisco, which are rated by Standard & Poors as “A+”. We want to go for tenants rated “A” or better.’
The sale follows the regearing of Cisco’s lease at the offices in 2004. It has gone from paying £33.50/sq ft to £28/sq ft (£360.59-£301.39/sq m) and now has 19-years left unexpired on its lease.
The purchase price is the highest paid for offices in the south-east since 2000 when the entire scheme, totalling 750,000 sq ft (69,676 sq m), was bought by Scottish Widows from MEPC for £280m, reflecting a yield of 6.5%.
Jones Lang LaSalle acted for Scottish Widows; CB Richard Ellis advised Evans Randall. Sphere: Related Content
Friday, July 28, 2006
Bank of Ireland Seeking €250 million in Sale Leaseback of 36 Branches
Irish Times - July 26, 2006
Bank of Ireland is to launch a marketing campaign in September for the sale and leaseback of 36 of its branches in Dublin and other cities and towns. The initiative is expected to bring in between €230 million and €250 million.
AIB is also set to unload much of its branch network to free-up substantial capital for its banking operations. CB Richard Ellis, which is advising Bank of Ireland, said it expected that the investments would be sold at yields of around 3 per cent but, inevitably, some of the higher profile buildings were likely to show lower returns for the purchasers.
The 36 branches to be offered for sale are among the best owned by the Bank of Ireland and include several Dublin offices. All the branches will be offered for sale on 25-year leases but 17 will have break options after year 15 while another, at Leeson Street in Dublin 2, will have break options in years five and 10 because of development potential. The rent roll for the entire portfolio will be over €9 million.
In all cases the sale and leaseback terms will provide for a 15 per cent fixed uplift in the rent after five years. Subsequent reviews will be based on open market valuations.
The potential for rent increases will largely depend on the areas designated as retail use as opposed to offices. Consequently, buildings with two floors in retail use - such as O'Connell Street in Dublin and Eyre Square in Galway - will inevitably show the best return once open market valuations are the norm.
The move by the banks to embark on sale and leaseback programmes will be welcomed by the investment industry - from the pension funds and insurance companies to the investment syndicates and private investors.
Commercial investments have been in particularly short supply in the Republic in recent years, with many investors forced to look abroad for investment opportunities. The shortage means that investments on even secondary streets in Dublin have been selling for record yields of 1.5-3 per cent. More recently, a retail investment on Grafton Street changed hands at a yield of 1 per cent.
For the banks, the sale and leaseback exercise will free-up substantial funds which are effectively dormant. Once the sales have been completed, the banks will be in a position to produce a better return on their assets. Sphere: Related Content
Bank of Ireland is to launch a marketing campaign in September for the sale and leaseback of 36 of its branches in Dublin and other cities and towns. The initiative is expected to bring in between €230 million and €250 million.
AIB is also set to unload much of its branch network to free-up substantial capital for its banking operations. CB Richard Ellis, which is advising Bank of Ireland, said it expected that the investments would be sold at yields of around 3 per cent but, inevitably, some of the higher profile buildings were likely to show lower returns for the purchasers.
The 36 branches to be offered for sale are among the best owned by the Bank of Ireland and include several Dublin offices. All the branches will be offered for sale on 25-year leases but 17 will have break options after year 15 while another, at Leeson Street in Dublin 2, will have break options in years five and 10 because of development potential. The rent roll for the entire portfolio will be over €9 million.
In all cases the sale and leaseback terms will provide for a 15 per cent fixed uplift in the rent after five years. Subsequent reviews will be based on open market valuations.
The potential for rent increases will largely depend on the areas designated as retail use as opposed to offices. Consequently, buildings with two floors in retail use - such as O'Connell Street in Dublin and Eyre Square in Galway - will inevitably show the best return once open market valuations are the norm.
The move by the banks to embark on sale and leaseback programmes will be welcomed by the investment industry - from the pension funds and insurance companies to the investment syndicates and private investors.
Commercial investments have been in particularly short supply in the Republic in recent years, with many investors forced to look abroad for investment opportunities. The shortage means that investments on even secondary streets in Dublin have been selling for record yields of 1.5-3 per cent. More recently, a retail investment on Grafton Street changed hands at a yield of 1 per cent.
For the banks, the sale and leaseback exercise will free-up substantial funds which are effectively dormant. Once the sales have been completed, the banks will be in a position to produce a better return on their assets. Sphere: Related Content
Thursday, July 27, 2006
Buffets to Acquire Ryan's Restaurant Group for $876 Million in Sale Leaseback Transaction
Ryan's Restaurant Group Web Site - July 25, 2006
Buffets, Inc., a leading owner and operator of buffet-style restaurants, and Ryan's Restaurant Group, Inc. (Nasdaq: RYAN), the leading publicly traded buffet operator, today announced the signing of an agreement under which a subsidiary of Buffets will merge with Ryan's in a cash transaction valued at approximately $876 million, including debt that will be assumed or repaid at or prior to closing. Buffets is owned by an investment partnership organized by Caxton-Iseman Capital, Inc., a New York-based private equity firm, and the senior management of Buffets.
The transaction will create the nation's largest buffet restaurant chain and one of the five largest companies in the casual and mid-scale dining segment. The combined company will have annual revenues of more than $1.7 billion, a national footprint, and operate approximately 675 restaurants principally under the well-respected Ryan's(R) Grill, Buffet & Bakery, Fire Mountain(R), Old Country Buffet(R) and HomeTown Buffet(R) brands.
Under terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Ryan's shareholders will receive $16.25 in cash for each common share they own, representing an approximate 45% premium over Ryan's closing share price on July 24, 2006.
The combined company will continue to be called Buffets, Inc. and will continue to be headquartered in Eagan, Minnesota. Ryan's will operate as a separate division of Buffets and will continue to be based in Greer, South Carolina. R. Michael Andrews, Chief Executive Officer of Buffets, will continue to serve in this capacity for the combined company, which will have approximately 43,000 employees.
(Note - Ryan's Restaurant Group owns substantially all of its 340 Ryan's(R) Grill, Buffet & Bakery and Fire Mountain(R) restaurant properties, each of which is a free-standing masonry building of approximately 8,000 to 12,500 square feet. The portfolio has a net book value of approximately $710 million according to the companys 2006 10-K filing.) Sphere: Related Content
Buffets, Inc., a leading owner and operator of buffet-style restaurants, and Ryan's Restaurant Group, Inc. (Nasdaq: RYAN), the leading publicly traded buffet operator, today announced the signing of an agreement under which a subsidiary of Buffets will merge with Ryan's in a cash transaction valued at approximately $876 million, including debt that will be assumed or repaid at or prior to closing. Buffets is owned by an investment partnership organized by Caxton-Iseman Capital, Inc., a New York-based private equity firm, and the senior management of Buffets.
The transaction will create the nation's largest buffet restaurant chain and one of the five largest companies in the casual and mid-scale dining segment. The combined company will have annual revenues of more than $1.7 billion, a national footprint, and operate approximately 675 restaurants principally under the well-respected Ryan's(R) Grill, Buffet & Bakery, Fire Mountain(R), Old Country Buffet(R) and HomeTown Buffet(R) brands.
Under terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Ryan's shareholders will receive $16.25 in cash for each common share they own, representing an approximate 45% premium over Ryan's closing share price on July 24, 2006.
The combined company will continue to be called Buffets, Inc. and will continue to be headquartered in Eagan, Minnesota. Ryan's will operate as a separate division of Buffets and will continue to be based in Greer, South Carolina. R. Michael Andrews, Chief Executive Officer of Buffets, will continue to serve in this capacity for the combined company, which will have approximately 43,000 employees.
(Note - Ryan's Restaurant Group owns substantially all of its 340 Ryan's(R) Grill, Buffet & Bakery and Fire Mountain(R) restaurant properties, each of which is a free-standing masonry building of approximately 8,000 to 12,500 square feet. The portfolio has a net book value of approximately $710 million according to the companys 2006 10-K filing.) Sphere: Related Content
Sunday, July 23, 2006
Bristol-Myers Squibb Pursuing Sale Leaseback of 900,000 SF Office Campus in Princeton
GlobeSt.com - July 20, 2006
Pharma giant Bristol-Myers Squibb is putting a total of 900,000 sf of office space on the market at two locations here as the company restructures its real estate holdings, GlobeSt.com has learned. And company officials say they're looking for a sale-leaseback deal. 'The company will remain at both sites and sign long-term leases,' a spokesman says.
And BMS has hired locally based Garibaldi, Morford & Dodds/Corfac International to advise it on the offering, GlobeSt.com has learned. Handling the assignment are Robert Morford, Gerald E. Moore Jr. and Gerald A. Bower Jr. of Garibaldi's Financial Services Division.
"This portfolio is well positioned," Morford tells GlobeSt. "It should attract investors seeking quality, well-located office space leased to a credit tenant that's committed to the community."
The two locations are 777 Scudders Mill Rd. and 100 Nassau Park Blvd. here. Built in 1993, 777 Scudders Mill Rd. is situated on approximately 106 acres within Princeton Forrestal Center. The property consists of three, five-story office buildings connected by an underground service concourse. Among the concourse's amenities is a television/media studio. The site also has final approvals in place for a fourth five-story office building, as well as preliminary approvals for two additional buildings.
The 100 Nassau Park Blvd. property, meanwhile, was built in 1986. It consists of a three-story class A office building with a centralized atrium. Sphere: Related Content
Pharma giant Bristol-Myers Squibb is putting a total of 900,000 sf of office space on the market at two locations here as the company restructures its real estate holdings, GlobeSt.com has learned. And company officials say they're looking for a sale-leaseback deal. 'The company will remain at both sites and sign long-term leases,' a spokesman says.
And BMS has hired locally based Garibaldi, Morford & Dodds/Corfac International to advise it on the offering, GlobeSt.com has learned. Handling the assignment are Robert Morford, Gerald E. Moore Jr. and Gerald A. Bower Jr. of Garibaldi's Financial Services Division.
"This portfolio is well positioned," Morford tells GlobeSt. "It should attract investors seeking quality, well-located office space leased to a credit tenant that's committed to the community."
The two locations are 777 Scudders Mill Rd. and 100 Nassau Park Blvd. here. Built in 1993, 777 Scudders Mill Rd. is situated on approximately 106 acres within Princeton Forrestal Center. The property consists of three, five-story office buildings connected by an underground service concourse. Among the concourse's amenities is a television/media studio. The site also has final approvals in place for a fourth five-story office building, as well as preliminary approvals for two additional buildings.
The 100 Nassau Park Blvd. property, meanwhile, was built in 1986. It consists of a three-story class A office building with a centralized atrium. Sphere: Related Content
Lexington and Newkirk Merge and Create Leading Single Tenant REIT
Lexington Corporate Properties Trust Web Site - July 23, 2006
Lexington Corporate Properties Trust (NYSE: LXP - News) and Newkirk Realty Trust, Inc. (NYSE: NKT - News) announced today that they have entered into a definitive merger agreement to create Lexington Realty Trust, the leading real estate investment trust focused on single tenant properties.
The merger will create a combined company which will own interests in more than 350 properties located across 44 states with a presence in the nation's highest growth markets. Based on Friday's closing prices, the combined entity would have an enterprise value of approximately $4.6 billion. Investment grade tenants, in the aggregate, will represent approximately 56% of annualized base rent.
Following the merger, Newkirk shareholders and unitholders will own approximately 46.8% and Lexington shareholders and unitholders will own approximately 53.2% of the combined company assuming no conversion of Lexington's Series C Cumulative Convertible Preferred Stock. Sphere: Related Content
Lexington Corporate Properties Trust (NYSE: LXP - News) and Newkirk Realty Trust, Inc. (NYSE: NKT - News) announced today that they have entered into a definitive merger agreement to create Lexington Realty Trust, the leading real estate investment trust focused on single tenant properties.
The merger will create a combined company which will own interests in more than 350 properties located across 44 states with a presence in the nation's highest growth markets. Based on Friday's closing prices, the combined entity would have an enterprise value of approximately $4.6 billion. Investment grade tenants, in the aggregate, will represent approximately 56% of annualized base rent.
Following the merger, Newkirk shareholders and unitholders will own approximately 46.8% and Lexington shareholders and unitholders will own approximately 53.2% of the combined company assuming no conversion of Lexington's Series C Cumulative Convertible Preferred Stock. Sphere: Related Content
Tuesday, July 18, 2006
Metro AG Enters $696 Million Sale Leaseback of 16 Hypermarkets in Poland
Bloomberg.com - July 18, 2006
GE Real Estate Central Europe, a unit of the world's second-largest company, bought 16 hypermarkets from Casino Guichard-Perrachon SA for 555 million euros ($696 million) to more than double its retail assets in Poland.
GE Real Estate will lease the 319,000 square meters of space for 10 years to Metro AG, Germany's largest retailer, which yesterday bought Casino's Polish retail chain for 224 million euros, GE said in an e-mailed statement received late yesterday.
Real estate investors are targeting central and eastern Europe, where property is cheaper and potential returns are higher than in more mature European markets such as France and Germany.
Casino, France's fifth-largest supermarket chain, which operates under the Monoprix and Spar names, yesterday also sold its Leader Price supermarket chain in Poland to Tesco Plc, the U.K.'s largest food retailer, for 105 million euros.
Casino has retained some other real estate assets, valued at 130 million euros, which it plans to sell separately. It sold its Polish assets to reduce debt. Sphere: Related Content
GE Real Estate Central Europe, a unit of the world's second-largest company, bought 16 hypermarkets from Casino Guichard-Perrachon SA for 555 million euros ($696 million) to more than double its retail assets in Poland.
GE Real Estate will lease the 319,000 square meters of space for 10 years to Metro AG, Germany's largest retailer, which yesterday bought Casino's Polish retail chain for 224 million euros, GE said in an e-mailed statement received late yesterday.
Real estate investors are targeting central and eastern Europe, where property is cheaper and potential returns are higher than in more mature European markets such as France and Germany.
Casino, France's fifth-largest supermarket chain, which operates under the Monoprix and Spar names, yesterday also sold its Leader Price supermarket chain in Poland to Tesco Plc, the U.K.'s largest food retailer, for 105 million euros.
Casino has retained some other real estate assets, valued at 130 million euros, which it plans to sell separately. It sold its Polish assets to reduce debt. Sphere: Related Content
Denver Newspaper Agency Nearing $88 Million Sale Leaseback of Denver HQ
DenverPost.com - July 18, 2006
The Denver Newspaper Agency is working on a deal to sell the new $88 million joint headquarters of The Denver Post and the Rocky Mountain News and lease it back from the buyer. The agency hopes to announce the deal within about 10 days, just before the newspapers begin moving into the 300,000-square-foot building at Colfax Avenue and Broadway.
"We're not in the real-estate business," said Dan May, senior vice president and chief financial officer of the DNA. "We want to be a more traditional group that leases its downtown real estate."
May declined to identify the investors interested in buying the building. The performance of interest rates has been advantageous, May said. When the DNA financed the building, rates were low. Now, with rates rising, it might make sense for the agency to lock in a lease rate that would make its payments predictable for a long period. If interest rates rise, as many people expect, locking in payments over the long term would be beneficial for the DNA, May said.
In the negotiations, various terms are being discussed. They involve different ways the deal could be structured, including a possible option for the DNA to repurchase the building. Sphere: Related Content
The Denver Newspaper Agency is working on a deal to sell the new $88 million joint headquarters of The Denver Post and the Rocky Mountain News and lease it back from the buyer. The agency hopes to announce the deal within about 10 days, just before the newspapers begin moving into the 300,000-square-foot building at Colfax Avenue and Broadway.
"We're not in the real-estate business," said Dan May, senior vice president and chief financial officer of the DNA. "We want to be a more traditional group that leases its downtown real estate."
May declined to identify the investors interested in buying the building. The performance of interest rates has been advantageous, May said. When the DNA financed the building, rates were low. Now, with rates rising, it might make sense for the agency to lock in a lease rate that would make its payments predictable for a long period. If interest rates rise, as many people expect, locking in payments over the long term would be beneficial for the DNA, May said.
In the negotiations, various terms are being discussed. They involve different ways the deal could be structured, including a possible option for the DNA to repurchase the building. Sphere: Related Content
Kingfisher Enters Eur 287 Million Sale Leaseback of Seven B&Q Stores
Kingfisher plc - July 14, 2006
Kingfisher plc and The British Land Company PLC have agreed a deal on seven B&Q Warehouse large format stores. Kingfisher plc has sold a subsidiary company, which owns the seven stores, to The British Land Company PLC for a total cash payment of £198 million (€287.47m).
The stores, all freehold, are in prime edge of town locations in Ashford, Bury, Exeter, Glasgow, Grimsby, Lincoln and North Shields. The stores are approximately 100,000 sq ft each and, in total, extend to nearly 700,000 sq ft. The portfolio represents approximately 7 per cent of Kingfisher’s total freehold and long leasehold assets.
The stores are let at current market rental levels to B&Q PLC (Kingfisher’s main UK subsidiary) on 20-year leases with the tenant having an option to break after 15 years.
The leases have been structured to provide significant operational flexibility through assignment, under-letting and alterations. The rent is payable monthly in advance and will be uplifted annually in line with the change in the Retail Prices Index, subject to a cap. This reflects B&Q’s desire to align property occupation costs more closely with the operating business environment. It will limit B&Q’s rental increases for the stores and protects the business from any increases above the current rate of inflation. It also provides stability and certainty of cashflow for B&Q.
Terry Hartwell, Group Property Director of Kingfisher, said: “Through this transaction, Kingfisher is taking advantage of the current buoyancy in the direct property investment market in the UK to finance its operational business at attractive rates going forward. The proceeds of the transaction will be used to repay existing debt and to invest in Kingfisher’s worldwide store opening programme, including further freehold acquisitions.” Sphere: Related Content
Kingfisher plc and The British Land Company PLC have agreed a deal on seven B&Q Warehouse large format stores. Kingfisher plc has sold a subsidiary company, which owns the seven stores, to The British Land Company PLC for a total cash payment of £198 million (€287.47m).
The stores, all freehold, are in prime edge of town locations in Ashford, Bury, Exeter, Glasgow, Grimsby, Lincoln and North Shields. The stores are approximately 100,000 sq ft each and, in total, extend to nearly 700,000 sq ft. The portfolio represents approximately 7 per cent of Kingfisher’s total freehold and long leasehold assets.
The stores are let at current market rental levels to B&Q PLC (Kingfisher’s main UK subsidiary) on 20-year leases with the tenant having an option to break after 15 years.
The leases have been structured to provide significant operational flexibility through assignment, under-letting and alterations. The rent is payable monthly in advance and will be uplifted annually in line with the change in the Retail Prices Index, subject to a cap. This reflects B&Q’s desire to align property occupation costs more closely with the operating business environment. It will limit B&Q’s rental increases for the stores and protects the business from any increases above the current rate of inflation. It also provides stability and certainty of cashflow for B&Q.
Terry Hartwell, Group Property Director of Kingfisher, said: “Through this transaction, Kingfisher is taking advantage of the current buoyancy in the direct property investment market in the UK to finance its operational business at attractive rates going forward. The proceeds of the transaction will be used to repay existing debt and to invest in Kingfisher’s worldwide store opening programme, including further freehold acquisitions.” Sphere: Related Content
Wells Fargo Seeking $300 Million Sale Leaseback of Office Building in San Francisco
San Francisco Chronicle - July 15, 2006
Wells Fargo & Co. has put its office building at 333 Market St. up for sale, about 18 months after purchasing it and sinking $35 million into renovations. The asking price was not disclosed. The bank said it will offer to sign a 20-year lease with the new owner of the 33-story, 646,000- square-foot property.
Wells Fargo employs about 1,000 workers at 333 Market St. in various divisions including home mortgage, private client services and administration. Other tenants include the General Services Administration and Hotwire.
Wells Fargo officials said the strengthening commercial real estate market prompted the sale. The bank employs 8,000 workers in San Francisco and is headquartered at 420 Montgomery St. Sphere: Related Content
Wells Fargo & Co. has put its office building at 333 Market St. up for sale, about 18 months after purchasing it and sinking $35 million into renovations. The asking price was not disclosed. The bank said it will offer to sign a 20-year lease with the new owner of the 33-story, 646,000- square-foot property.
Wells Fargo employs about 1,000 workers at 333 Market St. in various divisions including home mortgage, private client services and administration. Other tenants include the General Services Administration and Hotwire.
Wells Fargo officials said the strengthening commercial real estate market prompted the sale. The bank employs 8,000 workers in San Francisco and is headquartered at 420 Montgomery St. Sphere: Related Content
Saturday, July 15, 2006
Australian Taxation Office Leases New $200 Million Tower at Sydney’s World Square
Multiplex Group - July 14, 2006
Multiplex Group is pleased to announce the Australian Taxation Office (“ATO”) has signed an Agreement for Lease to fully occupy a new commercial office tower at the last remaining site at Sydney’s World Square.
The 23,000 square metre facility, known as Latitude East, will be developed and built by Multiplex. The Building will front Goulburn and Pitt streets adjacent to the Ernst & Young Centre in the midtown precinct of the Sydney CBD. The 10 level building which has an estimated value on completion of around $200 million incorporates large efficient floorplates of approximately 2,500 square metres.
The ATO has signed a 15 year lease agreement, plus three five year options. Sphere: Related Content
Multiplex Group is pleased to announce the Australian Taxation Office (“ATO”) has signed an Agreement for Lease to fully occupy a new commercial office tower at the last remaining site at Sydney’s World Square.
The 23,000 square metre facility, known as Latitude East, will be developed and built by Multiplex. The Building will front Goulburn and Pitt streets adjacent to the Ernst & Young Centre in the midtown precinct of the Sydney CBD. The 10 level building which has an estimated value on completion of around $200 million incorporates large efficient floorplates of approximately 2,500 square metres.
The ATO has signed a 15 year lease agreement, plus three five year options. Sphere: Related Content
Friday, July 14, 2006
Rank Group Agrees to $316 Million Sale Leaseback of 43 Bingo Clubs and Casinos
Rank Group Plc - July 14, 2006
The Rank Group Plc (‘Rank’) has agreed a net £172m transaction with Earth Estates Limited and Solarus Estates Limited (‘Earth-Solarus’) for the sale and leaseback of 43 of Rank’s UK properties and the transfer of liabilities relating to a further 44 surplus leasehold properties.
The agreement includes the £211m sale and leaseback of a portfolio of 40 Mecca bingo clubs and four Grosvenor casinos (one property comprises both a casino and a bingo club). Rank will lease back the properties over 15 years at an initial rate of £11.2m per annum. This represents an initial yield of 5.3% on the freehold portfolio. The book value of the properties was £137m.
In addition, Rank will transfer to Earth-Solarus liabilities relating to 44 surplus leasehold properties. The leasehold liability transfer price is £39m. There will be a pre-tax net book gain on the transaction of approximately £53m. It is not anticipated that the transaction will attract any capital gains tax. The proceeds of the transaction will be used to pay down debt.
Both Earth Estates Limited and Solarus Estates Limited are joint venture companies between William Pears and the Khalastchi family. Sphere: Related Content
The Rank Group Plc (‘Rank’) has agreed a net £172m transaction with Earth Estates Limited and Solarus Estates Limited (‘Earth-Solarus’) for the sale and leaseback of 43 of Rank’s UK properties and the transfer of liabilities relating to a further 44 surplus leasehold properties.
The agreement includes the £211m sale and leaseback of a portfolio of 40 Mecca bingo clubs and four Grosvenor casinos (one property comprises both a casino and a bingo club). Rank will lease back the properties over 15 years at an initial rate of £11.2m per annum. This represents an initial yield of 5.3% on the freehold portfolio. The book value of the properties was £137m.
In addition, Rank will transfer to Earth-Solarus liabilities relating to 44 surplus leasehold properties. The leasehold liability transfer price is £39m. There will be a pre-tax net book gain on the transaction of approximately £53m. It is not anticipated that the transaction will attract any capital gains tax. The proceeds of the transaction will be used to pay down debt.
Both Earth Estates Limited and Solarus Estates Limited are joint venture companies between William Pears and the Khalastchi family. Sphere: Related Content
Thursday, July 13, 2006
InterContinental Hotels Group Agrees to $804 Million Sale Manageback of Seven Hotels
InterContinental Hotels Group PLC - July 13, 2006
InterContinental Hotels Group PLC ('IHG') today announces it has agreed to sell a portfolio of seven InterContinental branded hotels (2,537 rooms) located in Continental Europe to the Morgan Stanley Real Estate Funds ('MSREF'). The transaction is expected to complete in the third quarter of 2006.
IHG has retained 30 year management contracts on the hotels, with two 10 year renewals at IHG’s discretion giving a total potential contract length of 50 years. The portfolio has been sold for €634m (£440m) ($804m) in cash before transaction costs, approximately €80m ($101m) above net book value of approximately €550m, with no material tax charge arising. In addition, MSREF has agreed to make capital investments in the portfolio for approximately €60m, including implementing new brand initiatives and adding further facilities to these prestigious hotels.
In 2005, these seven hotels generated revenues of €185m, EBITDA of €42m and EBIT of €23m before management fees. Normalised management fees from the management contracts are expected to be approximately €10m per annum going forward.
On completion of this transaction, IHG will have sold 175 hotels with a net asset value of more than £2.8bn since separation from Six Continents in April 2003. Sphere: Related Content
InterContinental Hotels Group PLC ('IHG') today announces it has agreed to sell a portfolio of seven InterContinental branded hotels (2,537 rooms) located in Continental Europe to the Morgan Stanley Real Estate Funds ('MSREF'). The transaction is expected to complete in the third quarter of 2006.
IHG has retained 30 year management contracts on the hotels, with two 10 year renewals at IHG’s discretion giving a total potential contract length of 50 years. The portfolio has been sold for €634m (£440m) ($804m) in cash before transaction costs, approximately €80m ($101m) above net book value of approximately €550m, with no material tax charge arising. In addition, MSREF has agreed to make capital investments in the portfolio for approximately €60m, including implementing new brand initiatives and adding further facilities to these prestigious hotels.
In 2005, these seven hotels generated revenues of €185m, EBITDA of €42m and EBIT of €23m before management fees. Normalised management fees from the management contracts are expected to be approximately €10m per annum going forward.
On completion of this transaction, IHG will have sold 175 hotels with a net asset value of more than £2.8bn since separation from Six Continents in April 2003. Sphere: Related Content
Wednesday, July 12, 2006
GSA Agrees to $21.7 Million Office Building Build-to-Suit in Atlanta
Businesswire - July 10, 2006
Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced that it has been awarded a 91,000-square foot build-to-suit contract with a long-term lease by the General Services Administration (GSA) to develop a Class 'A' office building with structured parking for the Department of Homeland Security. The cost of the project is approximately $21.7 million and includes the purchase of two acres of land. Construction will commence in the fourth quarter and the project is expected to be completed in the third quarter of 2007.
Ed Fritsch, president and chief executive officer, commented, 'This is the fourth build-to-suit project we've been awarded by the federal government in the last two years. In 2005, we delivered 601,000 square feet for the federal government that was 100% pre-leased. These projects included a 138,000 square foot field office for the FBI in Tampa, a 109,000 square foot office building for the Centers for Disease Control in Atlanta and a 350,000-square foot office and storage facility for the National Archives and Records Administration (NARA) in Atlanta." Sphere: Related Content
Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced that it has been awarded a 91,000-square foot build-to-suit contract with a long-term lease by the General Services Administration (GSA) to develop a Class 'A' office building with structured parking for the Department of Homeland Security. The cost of the project is approximately $21.7 million and includes the purchase of two acres of land. Construction will commence in the fourth quarter and the project is expected to be completed in the third quarter of 2007.
Ed Fritsch, president and chief executive officer, commented, 'This is the fourth build-to-suit project we've been awarded by the federal government in the last two years. In 2005, we delivered 601,000 square feet for the federal government that was 100% pre-leased. These projects included a 138,000 square foot field office for the FBI in Tampa, a 109,000 square foot office building for the Centers for Disease Control in Atlanta and a 350,000-square foot office and storage facility for the National Archives and Records Administration (NARA) in Atlanta." Sphere: Related Content
Johns Hopkins Agrees to 243,000 Square Foot Office Build-to-Suit
CoStar Group - July 12, 2006
Johns Hopkins Applied Physics Lab (JHAPL) has signed on to lease the entire six-story, 243,000-square-foot proposed office building at 7651 Montpelier Road in the Montpelier Research Park.
Construction for the new complex is expected to begin later this month and reach completion in October 2007. JHAPL already leases five buildings in the Montpelier Research Park, which neighbors its 360-acre main campus on Johns Hopkins Road, also in Laurel.
The project architect is Morgan Gick McBeath & Associates. General contracting will be handled by Harvey-Cleary Builders. TC MidAtlantic Development Inc. is the developer. Sphere: Related Content
Johns Hopkins Applied Physics Lab (JHAPL) has signed on to lease the entire six-story, 243,000-square-foot proposed office building at 7651 Montpelier Road in the Montpelier Research Park.
Construction for the new complex is expected to begin later this month and reach completion in October 2007. JHAPL already leases five buildings in the Montpelier Research Park, which neighbors its 360-acre main campus on Johns Hopkins Road, also in Laurel.
The project architect is Morgan Gick McBeath & Associates. General contracting will be handled by Harvey-Cleary Builders. TC MidAtlantic Development Inc. is the developer. Sphere: Related Content
Friday, July 07, 2006
Kimberly-Clark Leases 806,000 SF Distribution Center Near Chicago
CoStar Group - July 3, 2006
In one of the largest industrial leases this year, Kimberly-Clark Corp. signed an 806,000-square-foot, full-building lease for a Duke Realty facility in Romeoville, IL. The property, which is under construction, will be known as Building 3 in the Park 55 industrial park.
The building is on a 35-acre site on Crossroads Parkway and is scheduled to deliver next month. Kimberly-Clark Corp. will use the building as a warehouse and distribution facility. Kimberly-Clark manufactures paper supplies and other goods ranging from personal care to professional heath care products.
David Kahnweiler and Charles Canale of Colliers Bennett & Kahnweiler represented Duke Realty. Keith and Matthew Stauber, also of Colliers Bennett & Kahnweiler, represented Kimberly-Clark. Sphere: Related Content
In one of the largest industrial leases this year, Kimberly-Clark Corp. signed an 806,000-square-foot, full-building lease for a Duke Realty facility in Romeoville, IL. The property, which is under construction, will be known as Building 3 in the Park 55 industrial park.
The building is on a 35-acre site on Crossroads Parkway and is scheduled to deliver next month. Kimberly-Clark Corp. will use the building as a warehouse and distribution facility. Kimberly-Clark manufactures paper supplies and other goods ranging from personal care to professional heath care products.
David Kahnweiler and Charles Canale of Colliers Bennett & Kahnweiler represented Duke Realty. Keith and Matthew Stauber, also of Colliers Bennett & Kahnweiler, represented Kimberly-Clark. Sphere: Related Content
Lafarge HQ in Paris Sold for Eur 150 Million
Forbes - July 4, 2006
Fomento de Construcciones y Contratas SA and Caja Madrid's 50:50 joint venture Realia has acquired Lafarge's headquarters in Paris for 150 mln eur, Cinco Dias reported, citing unnamed company sources. According to Cinco Dias, Lafarge will continue to lease the 10,000 square-metre building from Realia. Sphere: Related Content
Fomento de Construcciones y Contratas SA and Caja Madrid's 50:50 joint venture Realia has acquired Lafarge's headquarters in Paris for 150 mln eur, Cinco Dias reported, citing unnamed company sources. According to Cinco Dias, Lafarge will continue to lease the 10,000 square-metre building from Realia. Sphere: Related Content
Fila Enters $26 Million Sale Leaseback of Distribution Center Near Baltimore
citybizlist - June 30, 2006
Fila USA, acting as Brandon One Real Estate LLC, sold 7630 Gambrills Cove Road to First Industrial Realty, care of FR Net Lease Co-Invest Pro 6 LLC, for $26 million, or approximately $68 per square foot. Fila USA purchased the building in 1999 and is leasing back the property for the next 15 years.
The 384,068-square-foot industrial building was constructed in 1997 and features 33 loading docks and two drive-in bays. Located in the Brandon Woods Business Park, the property is one of the largest small-parcel distribution facilities in the Mid-Atlantic. Sphere: Related Content
Fila USA, acting as Brandon One Real Estate LLC, sold 7630 Gambrills Cove Road to First Industrial Realty, care of FR Net Lease Co-Invest Pro 6 LLC, for $26 million, or approximately $68 per square foot. Fila USA purchased the building in 1999 and is leasing back the property for the next 15 years.
The 384,068-square-foot industrial building was constructed in 1997 and features 33 loading docks and two drive-in bays. Located in the Brandon Woods Business Park, the property is one of the largest small-parcel distribution facilities in the Mid-Atlantic. Sphere: Related Content
PDL BioPharma Signs 15-Year 447,000-SF HQ Lease in Freemont, CA
GlobeSt.com - July 7, 2006
In one of the largest Bay Area leases this year, PDL BioPharma Inc. has signed a 15-year corporate headquarters lease for 447,000 sf at Pacific Shores Center, a 1.7 million-sf class A-plus office park here owned by San Francisco-based Jay Paul Co. The lease, which commences Jan. 1, 2007, represents a nearly 80% expansion for the publicly held biopharmaceutical company and fills most of the vacant space within Pacific Shores Center.
PDL is currently housed in a mix of owned and leased buildings in Fremont, which sits just across the San Francisco Bay from Redwood City. At Pacific Shores Center, it will occupy 1500 Seaport Boulevard, a 164,000-sf building currently in shell condition that will be built out as lab space, and 1400 Seaport, a 283,000-sf fully finished and furnished building that that will house its administrative offices.
PDL is subleasing 1400 Seaport from OpenWave Systems Inc. for the first seven years. The sublease will convert to a direct lease with Jay Paul upon expiration and will run co-terminus with the 1500 Seaport lease, both expiring on Dec. 31, 2021. The negotiated lease rates were not released by the parties involved; the published triple-net asking rate for 1500 Seaport is $1.75 per sf per month. Sphere: Related Content
In one of the largest Bay Area leases this year, PDL BioPharma Inc. has signed a 15-year corporate headquarters lease for 447,000 sf at Pacific Shores Center, a 1.7 million-sf class A-plus office park here owned by San Francisco-based Jay Paul Co. The lease, which commences Jan. 1, 2007, represents a nearly 80% expansion for the publicly held biopharmaceutical company and fills most of the vacant space within Pacific Shores Center.
PDL is currently housed in a mix of owned and leased buildings in Fremont, which sits just across the San Francisco Bay from Redwood City. At Pacific Shores Center, it will occupy 1500 Seaport Boulevard, a 164,000-sf building currently in shell condition that will be built out as lab space, and 1400 Seaport, a 283,000-sf fully finished and furnished building that that will house its administrative offices.
PDL is subleasing 1400 Seaport from OpenWave Systems Inc. for the first seven years. The sublease will convert to a direct lease with Jay Paul upon expiration and will run co-terminus with the 1500 Seaport lease, both expiring on Dec. 31, 2021. The negotiated lease rates were not released by the parties involved; the published triple-net asking rate for 1500 Seaport is $1.75 per sf per month. Sphere: Related Content
Maxtor Regional HQ Near Denver Sells for Over $60 Million
GlobeSt.com - July 6, 2006
The 450,000-sf regional headquarters of Maxtor Corp. in Longmont, CO, has changed hands. Invesco of Dallas and Circle Capital Partners of Denver sold the facility to a New York-based investor group under the name FEIGA/Sandstone LP.
Sources tell GlobeSt.com that the property sold for upwards of $60 million and that Maxtor’s lease is “long-term.” The building has been primarily used for research and development and was the regional headquarters for Maxtor.
In May 2006, Maxtor was acquired by Seagate Technologies for $1.9 billion. Both companies manufacture hard drives. Sphere: Related Content
The 450,000-sf regional headquarters of Maxtor Corp. in Longmont, CO, has changed hands. Invesco of Dallas and Circle Capital Partners of Denver sold the facility to a New York-based investor group under the name FEIGA/Sandstone LP.
Sources tell GlobeSt.com that the property sold for upwards of $60 million and that Maxtor’s lease is “long-term.” The building has been primarily used for research and development and was the regional headquarters for Maxtor.
In May 2006, Maxtor was acquired by Seagate Technologies for $1.9 billion. Both companies manufacture hard drives. Sphere: Related Content
Thursday, July 06, 2006
Alcatel Closes €60 Million Sale Leaseback of Headquarters in Italy
Europe Real Estate - July 6, 2006
Europa Fund II, managed by Europa Capital, an independent European real estate investment management company, has completed its first investment in Italy, purchasing the headquarters of Alcatel Italia from the Italian subsidiary of the international telecommunications conglomerate for in excess of €60 million.
The research, development and office complex comprises a site in excess of 150,000 m² with over 70,000 m² of built space. Alcatel Italia have entered into a lease back of 48,000 m².
Europa intend to obtain planning permission for the future redevelopment of the site into a new research, development, laboratory and light industrial park with highly flexible accommodation to house a wide variety of occupiers from different hi-tech and industrial sectors. It is anticipated that the first 25,000 m² phase will be available for occupation in mid-2008.
Commenting on the deal, Christopher Curtis, Principal of Europa Capital responsible for Southern Europe, said: 'This investment provides Europa Fund II with a solid income stream coupled with the potential to add significant value through the planning process.' Sphere: Related Content
Europa Fund II, managed by Europa Capital, an independent European real estate investment management company, has completed its first investment in Italy, purchasing the headquarters of Alcatel Italia from the Italian subsidiary of the international telecommunications conglomerate for in excess of €60 million.
The research, development and office complex comprises a site in excess of 150,000 m² with over 70,000 m² of built space. Alcatel Italia have entered into a lease back of 48,000 m².
Europa intend to obtain planning permission for the future redevelopment of the site into a new research, development, laboratory and light industrial park with highly flexible accommodation to house a wide variety of occupiers from different hi-tech and industrial sectors. It is anticipated that the first 25,000 m² phase will be available for occupation in mid-2008.
Commenting on the deal, Christopher Curtis, Principal of Europa Capital responsible for Southern Europe, said: 'This investment provides Europa Fund II with a solid income stream coupled with the potential to add significant value through the planning process.' Sphere: Related Content
Johnson Service Group Enters Sale Leaseback of 79 UK Dry Cleaning Stores
Laundry and Cleaning News - July 6, 2006
Johnson Service Group is disposing of, on a sale and leaseback basis, 79 retail trading properties currently occupied by the drycleaning division for the sum of £26.5million in cash on completion to Oceandale Investments and Oceandale Securities.
According to the group, proceeds from the sale will be used to reduce bank borrowings. The operating leases, signed in the name of Johnson Cleaners UK Ltd., are for 15 years with a break clause after 10 years. The gross and net book value of the properties is £13.2m and £12.3m respectively.
Trading conditions for the drycleaning division continue to be unpredictable, says the company in its pre-closing trading statement for the half-year to 30 June 2006, A cost reduction exercise is underway at all levels of the business, which should result in margins improving in the second half of the year.
Discussions about the future of the Johnson Service Group’s drycleaning businesses are continuing with an interested party that may, or may not, lead to an offer being received. Sphere: Related Content
Johnson Service Group is disposing of, on a sale and leaseback basis, 79 retail trading properties currently occupied by the drycleaning division for the sum of £26.5million in cash on completion to Oceandale Investments and Oceandale Securities.
According to the group, proceeds from the sale will be used to reduce bank borrowings. The operating leases, signed in the name of Johnson Cleaners UK Ltd., are for 15 years with a break clause after 10 years. The gross and net book value of the properties is £13.2m and £12.3m respectively.
Trading conditions for the drycleaning division continue to be unpredictable, says the company in its pre-closing trading statement for the half-year to 30 June 2006, A cost reduction exercise is underway at all levels of the business, which should result in margins improving in the second half of the year.
Discussions about the future of the Johnson Service Group’s drycleaning businesses are continuing with an interested party that may, or may not, lead to an offer being received. Sphere: Related Content
Anthem Insurance Operations Center Sold for $100 Million
GlobeSt.com - July 6, 2006
On behalf of its investors, Triple Net Properties LLC has purchased a two-building healthcare office property in Indianapolis, IN. The 100%-leased asset, located at 220 Virginia Ave., was purchased for $100.8 million. Dan Prosky, managing director with Triple Net’s healthcare properties division, says the quality of the asset, the sustainability of the tenant and an attractive 7% cap rate in the first year made the deal viable for the company’s investors.
The plaza includes two, five-story office buildings of approximately 562,000 total gross sf. The property includes surface parking next to the buildings and a long-term agreement with the City of Indianapolis for 2,000 spaces at the adjacent Conseco Fieldhouse garage. The property was constructed in 2000 as a build-to-suit for Anthem Insurance Cos. Inc. and is currently fully occupied by Anthem on an absolute net basis.
The property was purchased from institutional investors advised by Prudential Real Estate Investors. Triple Net represented the tenant in common buyers. Financing was provided by LaSalle Bank. Sphere: Related Content
On behalf of its investors, Triple Net Properties LLC has purchased a two-building healthcare office property in Indianapolis, IN. The 100%-leased asset, located at 220 Virginia Ave., was purchased for $100.8 million. Dan Prosky, managing director with Triple Net’s healthcare properties division, says the quality of the asset, the sustainability of the tenant and an attractive 7% cap rate in the first year made the deal viable for the company’s investors.
The plaza includes two, five-story office buildings of approximately 562,000 total gross sf. The property includes surface parking next to the buildings and a long-term agreement with the City of Indianapolis for 2,000 spaces at the adjacent Conseco Fieldhouse garage. The property was constructed in 2000 as a build-to-suit for Anthem Insurance Cos. Inc. and is currently fully occupied by Anthem on an absolute net basis.
The property was purchased from institutional investors advised by Prudential Real Estate Investors. Triple Net represented the tenant in common buyers. Financing was provided by LaSalle Bank. Sphere: Related Content
Wednesday, July 05, 2006
Vue Entertainment Seeking £80 Million Sale Leaseback of Six UK Cinemas
Estates Gazette reports that Vue Entertainment has appointed HP Four to sell a portfolio of six cinemas following last month's £350m management buyout. The cinema developer and operator has appointed HP Four to sell the six UK cinemas, including the 65,000 sq ft Vue Leicester Square, for £80m, or a 5.5% initial yield. The properties are Vue's only freeholds and will be sold on a leaseback basis under 15-year leases on all except its West End flagship, where it will take a 30-year lease. The leases will have fixed yearly increases and open-market reviews every five years.
Sphere: Related Content
Tuesday, July 04, 2006
Tradeka Ltd Completes Sale Leaseback of 270 Stores in Europe
Tradeka Ltd Web Site - June 28, 2006
As a part of its new real estate strategy Tradeka Ltd sells approx. 270 retail properties to European Property Investors LP (“EPI”), a fund managed by Curzon/IXIS AEW Europe. Tradeka Ltd leases the assets back with mainly long-term triple-net leases.
The portfolio consists of hypermarkets, supermarkets and neighbourhood stores and it contains a major part of Tradeka Ltd’s property holdings. The transaction has no effect on Tradeka Lts’s sub-tenants’ or partners’ positions and the store activities will continue normally. Genesta Property Nordic will be acting as the Curzon/IXIS AEW Europe local operating partner.
According to Mr. Markku Uitto, the CEO of Tradeka Ltd, the transaction supports Tradeka Ltd’s strategy to concentrate on core business and to increase Tradeka Ltd’s capital use efficiency. The capital released from the property holdings will be used to develop Tradeka Ltd’s capital structure and to make Tradeka Ltd’s growth strategy possible. Sphere: Related Content
As a part of its new real estate strategy Tradeka Ltd sells approx. 270 retail properties to European Property Investors LP (“EPI”), a fund managed by Curzon/IXIS AEW Europe. Tradeka Ltd leases the assets back with mainly long-term triple-net leases.
The portfolio consists of hypermarkets, supermarkets and neighbourhood stores and it contains a major part of Tradeka Ltd’s property holdings. The transaction has no effect on Tradeka Lts’s sub-tenants’ or partners’ positions and the store activities will continue normally. Genesta Property Nordic will be acting as the Curzon/IXIS AEW Europe local operating partner.
According to Mr. Markku Uitto, the CEO of Tradeka Ltd, the transaction supports Tradeka Ltd’s strategy to concentrate on core business and to increase Tradeka Ltd’s capital use efficiency. The capital released from the property holdings will be used to develop Tradeka Ltd’s capital structure and to make Tradeka Ltd’s growth strategy possible. Sphere: Related Content
UPM-Kymmene Enters EUR 77 Million Sale Leaseback of Group HQ in Helsinki
UPM-Kymmene Web Site - July 3, 2006
UPM has sold the share capital of its Group Head Office real estate at Eteläesplanadi 2 in Helsinki to the German Allianz Lebensversicherungs-AG for approx. EUR 77 million. UPM will book a capital gain of around EUR 37 million from the sale.
UPM’s Group Head Office will continue to occupy the Eteläesplanadi 2 premises under a long-term lease. Around 300 corporate and divisional staff work at the Eteläesplanadi 2 premises.
Allianz Lebensversicherungs-AG and the company managing its real estate property, Allianz Immobilien GmbH, are part of the Allianz Group. Allianz Immobilien GmbH manages a real estate portfolio with a market value totalling approx. EUR 15.3 billion and an annual rental yield of EUR 1 billion. Sphere: Related Content
UPM has sold the share capital of its Group Head Office real estate at Eteläesplanadi 2 in Helsinki to the German Allianz Lebensversicherungs-AG for approx. EUR 77 million. UPM will book a capital gain of around EUR 37 million from the sale.
UPM’s Group Head Office will continue to occupy the Eteläesplanadi 2 premises under a long-term lease. Around 300 corporate and divisional staff work at the Eteläesplanadi 2 premises.
Allianz Lebensversicherungs-AG and the company managing its real estate property, Allianz Immobilien GmbH, are part of the Allianz Group. Allianz Immobilien GmbH manages a real estate portfolio with a market value totalling approx. EUR 15.3 billion and an annual rental yield of EUR 1 billion. Sphere: Related Content
Monday, July 03, 2006
Halifax plc Building in London Sold for Eur 266 Million
Europe Real Estate - June 29, 2006
Evans Randall, the privately-owned investment banking group, has acquired 33 Old Broad Street, London EC2 for €266.4 mln (£197 mln), as part of its ongoing programme to acquire up to €2.71 bln (£2 bln) of real estate assets throughout Europe during 2006/2007.
The 192,300-sq-ft office building, located in the central core of the City of London, is let to Halifax plc, a wholly owned subsidiary of HBOS, on a 35-year lease with 33 years remaining. The current rent is approximately £8 million a year and the lease contains fixed rental uplifts every five years at 2.56% p.a. compound.
Evans Randall acquired the building from a joint venture between Prestbury, West Coast Capital and Bank of Scotland, advised by Franc Warwick. Evans Randall was advised by its retained agent, CB Richard Ellis.
Michael Evans, Chief Executive of Evans Randall, said: £33 Old Broad Street fits perfectly with our strategy to acquire large commercial assets occupied by tenants with strong covenants, on leases with fixed or index-linked rental uplifts. We are actively looking to acquire similar assets throughout Europe.
To date it has acquired close to £1.5 billion of UK and mainland European property investments on behalf of clients. Major transactions include: ING Bank’s €225 million landmark building at Haagse Poort The Hague, Netherlands. The head office of the Financial Services Authority at 25 North Colonnade, Canary Wharf, London E14, for £200m. ABN AMRO’s London headquarters at 250 Bishopsgate, London EC2, for a similar figure. The European headquarters of 3M in Bracknell, Berkshire, for £75m. Sphere: Related Content
Evans Randall, the privately-owned investment banking group, has acquired 33 Old Broad Street, London EC2 for €266.4 mln (£197 mln), as part of its ongoing programme to acquire up to €2.71 bln (£2 bln) of real estate assets throughout Europe during 2006/2007.
The 192,300-sq-ft office building, located in the central core of the City of London, is let to Halifax plc, a wholly owned subsidiary of HBOS, on a 35-year lease with 33 years remaining. The current rent is approximately £8 million a year and the lease contains fixed rental uplifts every five years at 2.56% p.a. compound.
Evans Randall acquired the building from a joint venture between Prestbury, West Coast Capital and Bank of Scotland, advised by Franc Warwick. Evans Randall was advised by its retained agent, CB Richard Ellis.
Michael Evans, Chief Executive of Evans Randall, said: £33 Old Broad Street fits perfectly with our strategy to acquire large commercial assets occupied by tenants with strong covenants, on leases with fixed or index-linked rental uplifts. We are actively looking to acquire similar assets throughout Europe.
To date it has acquired close to £1.5 billion of UK and mainland European property investments on behalf of clients. Major transactions include: ING Bank’s €225 million landmark building at Haagse Poort The Hague, Netherlands. The head office of the Financial Services Authority at 25 North Colonnade, Canary Wharf, London E14, for £200m. ABN AMRO’s London headquarters at 250 Bishopsgate, London EC2, for a similar figure. The European headquarters of 3M in Bracknell, Berkshire, for £75m. Sphere: Related Content
Saturday, July 01, 2006
Rio Tinto Commits to 20 Year Lease on European HQ
Estates Gazette Interactive reports that Derwent Valley and PruPIM have prelet their Telstar development in Paddington, W2, to mineral and metals company Rio Tinto for its new European headquarters.
Rio Tinto signed a 20 year lease on the entire 107,000 sf building at a rent of £4,954,000 per annum, with a 21 month rent free period. The development is due to complete in July 2007 at a cost of approximately £23m.
Derwent Valley is the development manager having sold the site to PruPIM for its Prudential Life Fund upon planning consent. The agreement with PruPIM reportedly includes a profit sharing arrangement determined by final cost of the building and its market value on completion. Sphere: Related Content
Rio Tinto signed a 20 year lease on the entire 107,000 sf building at a rent of £4,954,000 per annum, with a 21 month rent free period. The development is due to complete in July 2007 at a cost of approximately £23m.
Derwent Valley is the development manager having sold the site to PruPIM for its Prudential Life Fund upon planning consent. The agreement with PruPIM reportedly includes a profit sharing arrangement determined by final cost of the building and its market value on completion. Sphere: Related Content
Coca-Cola Amatil Considering $90 Million Distribution Center Build-to-Suit near Sydney
Australian Financial Review reports that Coca-Cola Amatil is considering a sale and leaseback of its distribution center at Eastern Creek in Sydney's west to reduce capital expenditure and finance commitments.
CCA bought the land at Eastern Creek last year for around $35 million and planned to spend between $55 million and $60 million building a state-of-the-art distribution center. The company completed a simmilar $90 million semi-automated warehouse at its nearby Northmead facility.
CCA reportedly has no plans to sell and lease back its other distribution centers which it considers to have more strategic value. Sphere: Related Content
CCA bought the land at Eastern Creek last year for around $35 million and planned to spend between $55 million and $60 million building a state-of-the-art distribution center. The company completed a simmilar $90 million semi-automated warehouse at its nearby Northmead facility.
CCA reportedly has no plans to sell and lease back its other distribution centers which it considers to have more strategic value. Sphere: Related Content
Singapore Airlines Completes $217 Million Sale Leaseback of Office Building
Singapore Airlines Web Site - June 28, 2006
77 Robinson Road Photo
Singapore Airlines Limited has sold the SIA Building, at 77 Robinson Road, to TSO Investment Pte Ltd, a fully-owned subsidiary of a property fund managed by CLSA Capital Partners.
The sale price, at $343.88 million, is equivalent to about $1,165 psf. The building is not a core asset for the Singapore Airlines business, and the Airline’s corporate offices are not located in it. The decision to sell the building was made as part of a regular review of the Airline’s non-core assets, and following a successful private tender exercise, conducted by CB Richard Ellis.
Singapore Airlines redeveloped the SIA Building in 1997. It is a 35-storey office building and comprises net floor area of approximately 295,000 sq ft, plus 180 car park lots.
Singapore Airlines will use proceeds from the sale for investment and growth of the Company and its subsidiaries. The sale is expected to be completed in eight weeks. Sphere: Related Content
77 Robinson Road Photo
Singapore Airlines Limited has sold the SIA Building, at 77 Robinson Road, to TSO Investment Pte Ltd, a fully-owned subsidiary of a property fund managed by CLSA Capital Partners.
The sale price, at $343.88 million, is equivalent to about $1,165 psf. The building is not a core asset for the Singapore Airlines business, and the Airline’s corporate offices are not located in it. The decision to sell the building was made as part of a regular review of the Airline’s non-core assets, and following a successful private tender exercise, conducted by CB Richard Ellis.
Singapore Airlines redeveloped the SIA Building in 1997. It is a 35-storey office building and comprises net floor area of approximately 295,000 sq ft, plus 180 car park lots.
Singapore Airlines will use proceeds from the sale for investment and growth of the Company and its subsidiaries. The sale is expected to be completed in eight weeks. Sphere: Related Content
BP Enters Build-to-Suit Agreement for New North Sea HQ in Aberdeen
Aberdeen Press & Journal - June 29, 2006
Oil and gas giant BP hosted a celebration yesterday to mark the start of the development of its new North Sea headquarters in Aberdeen.
The HQ, in Stoneywood Road on a 15-acre site, is being built by London-based developer Akeler and is expected to be completed in the second half of next year. The new offices will span 20,000sq m over seven wings on three levels. BP has agreed a 15-year lease for the new building, which will be owned by Akeler. The Stoneywood Road site was already owned by BP, which has options to extend the lease beyond 2022. The deal agreed with Akeler involves the developer taking over the site of BP's present HQ.
The complex is designed to accommodate about 1,200 staff - about 1,000 BP employees and 200 contractors. The existing offices house 1,700 people, and the 500 who are not moving into the new location are to shift to other accommodation elsewhere in the city. Sphere: Related Content
Oil and gas giant BP hosted a celebration yesterday to mark the start of the development of its new North Sea headquarters in Aberdeen.
The HQ, in Stoneywood Road on a 15-acre site, is being built by London-based developer Akeler and is expected to be completed in the second half of next year. The new offices will span 20,000sq m over seven wings on three levels. BP has agreed a 15-year lease for the new building, which will be owned by Akeler. The Stoneywood Road site was already owned by BP, which has options to extend the lease beyond 2022. The deal agreed with Akeler involves the developer taking over the site of BP's present HQ.
The complex is designed to accommodate about 1,200 staff - about 1,000 BP employees and 200 contractors. The existing offices house 1,700 people, and the 500 who are not moving into the new location are to shift to other accommodation elsewhere in the city. Sphere: Related Content
JP Morgan Chase Tower in San Francisco to Sell for $400 Million
Los Angeles Times - June 30, 2006
Irvine Co. is paying a record price for a skyscraper in San Francisco, evidence that the city's commercial real estate market is recovering from the tech crash.
The big Orange County land developer's agreement to spend more than $400 million for the 31-story JP Morgan Chase Building in the city's financial district is a vote of confidence in San Francisco's economic comeback, fueled in part by renewed expansion of the Bay Area's technology sector.
Financial service companies have been expanding for several months, followed by a boom in leasing by tech companies, he said. Office vacancy has dropped to less than 15% from its peak of 24% in 2002.
The 665,000-square-foot building at 560 Mission St. that Irvine Co. is buying is rented to financial service giant JP Morgan Chase, which signed a 15-year lease in early 2000 when the dot-com boom was at its peak and rents were significantly higher than they are now.
JP Morgan's expensive lease and the fact that the 4-year-old building was designed by well-known architect Cesar Pelli made it attractive to investors, Yasukochi said. Irvine Co. is paying close to $700 a square foot for the property, surpassing the previous record of $606 set last year by the sale of an office building in Mission Bay rented to Gap Inc.
The building is in escrow, said people with knowledge of the transaction, who asked not to be identified because the deal hadn't closed. Executives at Irvine Co. and the Morgan building's owners — Texas office developer Hines and the California Public Employees' Retirement System — declined to comment.
Irvine Co. is paying more than it would cost to erect a new building of the same size, but that would be easier said than done in development-wary San Francisco, where there are many barriers to new construction, said Grant Lammersen, an investment sales broker at Cushman & Wakefield.
Privately held Irvine Co. is controlled by developer Donald Bren, who is ranked 38th on the Forbes list of wealthy Americans with an estimated fortune of $5.7 billion. The company's holdings in Orange County date to 1864 and include 93,000 acres, about one-fifth of the county's total land area. The company also owns about 400 office properties from San Diego to Silicon Valley. The Morgan building would be its first in San Francisco. Sphere: Related Content
Irvine Co. is paying a record price for a skyscraper in San Francisco, evidence that the city's commercial real estate market is recovering from the tech crash.
The big Orange County land developer's agreement to spend more than $400 million for the 31-story JP Morgan Chase Building in the city's financial district is a vote of confidence in San Francisco's economic comeback, fueled in part by renewed expansion of the Bay Area's technology sector.
Financial service companies have been expanding for several months, followed by a boom in leasing by tech companies, he said. Office vacancy has dropped to less than 15% from its peak of 24% in 2002.
The 665,000-square-foot building at 560 Mission St. that Irvine Co. is buying is rented to financial service giant JP Morgan Chase, which signed a 15-year lease in early 2000 when the dot-com boom was at its peak and rents were significantly higher than they are now.
JP Morgan's expensive lease and the fact that the 4-year-old building was designed by well-known architect Cesar Pelli made it attractive to investors, Yasukochi said. Irvine Co. is paying close to $700 a square foot for the property, surpassing the previous record of $606 set last year by the sale of an office building in Mission Bay rented to Gap Inc.
The building is in escrow, said people with knowledge of the transaction, who asked not to be identified because the deal hadn't closed. Executives at Irvine Co. and the Morgan building's owners — Texas office developer Hines and the California Public Employees' Retirement System — declined to comment.
Irvine Co. is paying more than it would cost to erect a new building of the same size, but that would be easier said than done in development-wary San Francisco, where there are many barriers to new construction, said Grant Lammersen, an investment sales broker at Cushman & Wakefield.
Privately held Irvine Co. is controlled by developer Donald Bren, who is ranked 38th on the Forbes list of wealthy Americans with an estimated fortune of $5.7 billion. The company's holdings in Orange County date to 1864 and include 93,000 acres, about one-fifth of the county's total land area. The company also owns about 400 office properties from San Diego to Silicon Valley. The Morgan building would be its first in San Francisco. Sphere: Related Content
Thursday, June 29, 2006
JP Morgan Offices in Dublin For Sale
Irish Times - June 28, 2006
The EBS Building Society is to offload an office block with tax breaks in the heart of the The International Financial Services Centre in Dublin which is let to JP Morgan Bank. The 10-year-old block, 1 George's Dock, is expected to make between €45 million and €50 million when it is goes to tender on July 31st.
The five-storey over basement building is rented by JP Morgan Bank (Ireland) Ltd under a 25-year lease with another 15 years to run. The overall rent for the 3,926sq m (42,255sq ft) block and 46 car-parking spaces is €2,243,627. However, JP Morgan only pays 80.44 per cent of the full rent, equating to almost €2 million per annum. That works out at €509 per sq m (€47.33 per sq ft) - a relatively strong rent considering that it was last set in December, 2001. Sphere: Related Content
The EBS Building Society is to offload an office block with tax breaks in the heart of the The International Financial Services Centre in Dublin which is let to JP Morgan Bank. The 10-year-old block, 1 George's Dock, is expected to make between €45 million and €50 million when it is goes to tender on July 31st.
The five-storey over basement building is rented by JP Morgan Bank (Ireland) Ltd under a 25-year lease with another 15 years to run. The overall rent for the 3,926sq m (42,255sq ft) block and 46 car-parking spaces is €2,243,627. However, JP Morgan only pays 80.44 per cent of the full rent, equating to almost €2 million per annum. That works out at €509 per sq m (€47.33 per sq ft) - a relatively strong rent considering that it was last set in December, 2001. Sphere: Related Content
Wednesday, June 28, 2006
Hilton Hotel Portfolio With Long Term Leases to Fetch £500 Million
Estates Gazette reports that Vincent Tchenguiz's Consensus and hotel investor the Farnsworth Group are seeking a buyer for a £500m portfolio of 10 Hilton hotels in the UK. The pair stand to earn a profit of up to £170 million on the portfolio which was acquired in a 27-year sale leaseback transaction with Hilton June 2002.
Sphere: Related Content
Citizens Bank Agrees to $323 Million Sale Leaseback of 241 Branches
The Providence Journal - June 27, 2006
A Pennsylvania-based real estate investment trust has struck a deal to buy 241 bank branches from Citizens Financial Group for $323 million and then lease back the locations to Citizens. American Financial Realty Trust of Jenkintown, Pa., said it expects to complete the purchases this month and early next month.
This is at least the fourth deal Citizens has struck with the company, American Financial spokesman Anthony J. DeFazio said. "Banks in general are realizing more and more it's more profitable for them to lease than to own real estate," DeFazio said. Last October, American Financial paid $60.2 million to buy Citizens' headquarters building in downtown Providence. Citizens, in turn, signed a 10-year lease with the buyer.
DeFazio said his company, which announced the deal in a statement Friday, would not disclose the location of the 241 branches involved in this latest deal until the purchases are completed. They include branches of Citizens Bank and Citizens' Midwest subsidiary, Charter One Bank.
American Financial Realty will acquire the Citizens and Charter One branches in a joint venture with Dillon Real Capital Management LLC. Sphere: Related Content
A Pennsylvania-based real estate investment trust has struck a deal to buy 241 bank branches from Citizens Financial Group for $323 million and then lease back the locations to Citizens. American Financial Realty Trust of Jenkintown, Pa., said it expects to complete the purchases this month and early next month.
This is at least the fourth deal Citizens has struck with the company, American Financial spokesman Anthony J. DeFazio said. "Banks in general are realizing more and more it's more profitable for them to lease than to own real estate," DeFazio said. Last October, American Financial paid $60.2 million to buy Citizens' headquarters building in downtown Providence. Citizens, in turn, signed a 10-year lease with the buyer.
DeFazio said his company, which announced the deal in a statement Friday, would not disclose the location of the 241 branches involved in this latest deal until the purchases are completed. They include branches of Citizens Bank and Citizens' Midwest subsidiary, Charter One Bank.
American Financial Realty will acquire the Citizens and Charter One branches in a joint venture with Dillon Real Capital Management LLC. Sphere: Related Content
Monday, June 26, 2006
The Paramount Group Acquires SFX HQ in Manhattan
Commercial Real Estate News - June 21, 2006
completed its deal to buy the Candler Tower at 220 West 42nd Street. The 24-story Class A office and retail property has 227,685 sf and is located on the south side of 42nd between 7th and 8th Avenues between Disney’s New Amsterdam Theatre and Madam Tussaud’s Wax Museum.
W. P. Carey & Co. negotiated the sale on behalf of two of its non-traded REIT affiliates, Corporate Property Associates 14 and Corporate Property Associates 15, that jointly owned the property.
The entire Candler Tower is triple-net leased to the entertainment conglomerate SFX. The SFX lease is guaranteed by Clear Channel Communications and expires September 2020. The retail is sublet to McDonald’s and is one of the chain’s highest grossing units. McDonald’s recently invested more than $13 million in improvements to the first three floors of the property, two of which are the restaurant space.
The building is named for Asa Candler, a wholesale druggist who purchased the Coca-Cola formula for $2,300 in 1887 and invested his company’s early profits in real estate, building Candler Tower in 1912. Designed in late Gothic and early Renaissance style by architectural firm Willauercar, Shape & Bready, the property was once the tallest structure in Midtown. It is one of the last remaining white terra-cotta skyscrapers in the city and was restored to its original grandeur in the mid 1990s through a $35-million capital improvement program. Sphere: Related Content
completed its deal to buy the Candler Tower at 220 West 42nd Street. The 24-story Class A office and retail property has 227,685 sf and is located on the south side of 42nd between 7th and 8th Avenues between Disney’s New Amsterdam Theatre and Madam Tussaud’s Wax Museum.
W. P. Carey & Co. negotiated the sale on behalf of two of its non-traded REIT affiliates, Corporate Property Associates 14 and Corporate Property Associates 15, that jointly owned the property.
The entire Candler Tower is triple-net leased to the entertainment conglomerate SFX. The SFX lease is guaranteed by Clear Channel Communications and expires September 2020. The retail is sublet to McDonald’s and is one of the chain’s highest grossing units. McDonald’s recently invested more than $13 million in improvements to the first three floors of the property, two of which are the restaurant space.
The building is named for Asa Candler, a wholesale druggist who purchased the Coca-Cola formula for $2,300 in 1887 and invested his company’s early profits in real estate, building Candler Tower in 1912. Designed in late Gothic and early Renaissance style by architectural firm Willauercar, Shape & Bready, the property was once the tallest structure in Midtown. It is one of the last remaining white terra-cotta skyscrapers in the city and was restored to its original grandeur in the mid 1990s through a $35-million capital improvement program. Sphere: Related Content
Esporta Pursuing £300 Million Sale Leaseback of UK Racket Clubs
The Sunday Times - June 25, 2006
The upmarket health-clubs company Esporta is in talks to sell its freehold property assets for more than £300m. The group is believed to have received a number of unsolicited approaches about a possible sale-and-leaseback of its racket clubs. It has asked its regular adviser Citigroup to handle the inquiries.
The current favourite to clinch a deal is Maple Leaf, the privately owned property vehicle of the Landesberg family, best known for their involvement with Admiral Taverns, a pub company. Other parties thought to be interested in the Esporta clubs include Robert Tchenguiz, the property tycoon, and London & Regional, the real-estate group that recently acquired Esporta’s rival Next Generation.
A sale would also mean that the company’s main backer, the private-equity firm Duke Street Capital, would get back the money it has invested in the business and would leave it owning the operating business, in effect, for free.
The decision to explore a property deal is thought to have been taken after the auction of Next Generation, which raised £200m. Esporta was an under-bidder on that deal and also lost out last week in the sale of The Club Company, owner of a string of golf and country clubs. Sphere: Related Content
The upmarket health-clubs company Esporta is in talks to sell its freehold property assets for more than £300m. The group is believed to have received a number of unsolicited approaches about a possible sale-and-leaseback of its racket clubs. It has asked its regular adviser Citigroup to handle the inquiries.
The current favourite to clinch a deal is Maple Leaf, the privately owned property vehicle of the Landesberg family, best known for their involvement with Admiral Taverns, a pub company. Other parties thought to be interested in the Esporta clubs include Robert Tchenguiz, the property tycoon, and London & Regional, the real-estate group that recently acquired Esporta’s rival Next Generation.
A sale would also mean that the company’s main backer, the private-equity firm Duke Street Capital, would get back the money it has invested in the business and would leave it owning the operating business, in effect, for free.
The decision to explore a property deal is thought to have been taken after the auction of Next Generation, which raised £200m. Esporta was an under-bidder on that deal and also lost out last week in the sale of The Club Company, owner of a string of golf and country clubs. Sphere: Related Content
Sunday, June 25, 2006
Estée Lauder Signs $18 Million Build-to-Suit for Distribution Center near Philadelphia
Philadelphia Business Journal - June 23, 2006
Opus East will construct an $18 million, 242,433-square-foot distribution building for Estée Lauder Cos. Inc. in the Keystone Industrial Park II in Bristol, Pa. Estée Lauder (NYSE: ES), the cosmetics maker, signed a 20-year lease with Opus East, a regional operation of the Minnesota-based Opus Group that has an office in Plymouth Meeting, Pa.
Opus East has already broken ground on the facility at 200 Crossings Drive and expects the company to move in next March. Estée Lauder of New York already occupies 302,409 square feet in the industrial park in Bucks County. It has been in that space since March 2001. Opus East and Colliers Lanard & Axilbund arranged the lease. Sphere: Related Content
Opus East will construct an $18 million, 242,433-square-foot distribution building for Estée Lauder Cos. Inc. in the Keystone Industrial Park II in Bristol, Pa. Estée Lauder (NYSE: ES), the cosmetics maker, signed a 20-year lease with Opus East, a regional operation of the Minnesota-based Opus Group that has an office in Plymouth Meeting, Pa.
Opus East has already broken ground on the facility at 200 Crossings Drive and expects the company to move in next March. Estée Lauder of New York already occupies 302,409 square feet in the industrial park in Bucks County. It has been in that space since March 2001. Opus East and Colliers Lanard & Axilbund arranged the lease. Sphere: Related Content
Saturday, June 24, 2006
JFR Global Investments Acquires $245 Million Portfolio of Single Tenant Properties
GlobeSt.com - June 22, 2006
In what may be one of the largest such transactions of its kind, New York-based JFR Global Investments has bought about 3.6 million square feet of office and industry buildings comprised entirely of net-leased, single-tenant properties assembled one at a time and sold as a portfolio. The seller, a private investment group, was asking $245 million for the buildings, though the final price wasn’t disclosed. (believed to be Stag Capital)
All together there are five office and 17 industrial properties in the portfolio. The weighted average lease term is nearly ten years across the portfolio, which is also geographically diverse, spanning 17 states. The average size per property is 175,000 square feet. Notable tenants included Apria Healthcare, Bausch & Lomb, GlaxoSmithKline, West Marine and Xerox Corp. Sphere: Related Content
In what may be one of the largest such transactions of its kind, New York-based JFR Global Investments has bought about 3.6 million square feet of office and industry buildings comprised entirely of net-leased, single-tenant properties assembled one at a time and sold as a portfolio. The seller, a private investment group, was asking $245 million for the buildings, though the final price wasn’t disclosed. (believed to be Stag Capital)
All together there are five office and 17 industrial properties in the portfolio. The weighted average lease term is nearly ten years across the portfolio, which is also geographically diverse, spanning 17 states. The average size per property is 175,000 square feet. Notable tenants included Apria Healthcare, Bausch & Lomb, GlaxoSmithKline, West Marine and Xerox Corp. Sphere: Related Content
Friday, June 23, 2006
Boustead Holdings Pursuing $155 Million Sale Leaseback of Oil Palm Estates
TheEdge Daily - June 21, 2006
Kuala Lumpur based Boustead Holdings Bhd is setting up an Islamic real estate investment trust (I-REIT) to be listed on the Main Board involving some of its oil palm estates and mills with a total value of up to RM570 million ($155 million.)
In a statement on June 21, Boustead said its subsidiary Boustead Properties Bhd's portion of the assets to be disposed of for the REIT would amount to about RM330 million.
“The Proposed Boustead I-REIT will enable the group to realise the fair value of its investments in the plantation assets while retaining productive use of the assets by way of the proposed leaseback arrangement,” he said.
Boustead said it would also allow the group to participate in the local real estate investment market through its proposed holdings in the units and its involvement in the management of the Boustead I-REIT.
Affin Bank Bhd and Pacific Alliance Capital Sdn Bhd have been mandated by Boustead to act as Joint Advisers for the proposed REIT. Sphere: Related Content
Kuala Lumpur based Boustead Holdings Bhd is setting up an Islamic real estate investment trust (I-REIT) to be listed on the Main Board involving some of its oil palm estates and mills with a total value of up to RM570 million ($155 million.)
In a statement on June 21, Boustead said its subsidiary Boustead Properties Bhd's portion of the assets to be disposed of for the REIT would amount to about RM330 million.
“The Proposed Boustead I-REIT will enable the group to realise the fair value of its investments in the plantation assets while retaining productive use of the assets by way of the proposed leaseback arrangement,” he said.
Boustead said it would also allow the group to participate in the local real estate investment market through its proposed holdings in the units and its involvement in the management of the Boustead I-REIT.
Affin Bank Bhd and Pacific Alliance Capital Sdn Bhd have been mandated by Boustead to act as Joint Advisers for the proposed REIT. Sphere: Related Content
Friday, June 16, 2006
Woolworths Closes $846 Million Sale Leaseback of 11 Distribution Centers In Australia
The Australian - June 15, 2006:
In Australia's biggest industrial property sale, unlisted funds managed by SAITeysMcMahon and Lend Lease have paid a combined $846 million to buy Woolworths's prime portfolio of 11 distribution centres around the country. The new, purpose-built centres will be leased back to Woolworths for 15 to 17 years.
Under Woolworths's sale terms a price was fixed for the assets and parties were asked to "rent bid" the 630,000sqm portfolio, effectively by offering the lowest rent.
In a sale handled by merchant bank Grant Samuel, SAITeysMcMahon and the Lend Lease-managed Australia Prime Property Fund are believed to have offered rents equating to a 6.3 percent income yield overall, beating shortlisted parties the ALE Property Group and Westpac Office Trust. Woolworths would not specify the overall yield yesterday, saying it was "sub 6.5 percent", implying annual rent on the centres of less than $55 million.
SAITeysMcMahon acquired the biggest chunk in what chief executive David Hinde admitted was a "huge step up" for the fund manager, which largely distributes its product to retail investors through financial planners. SAITeysMcMahon bought eight of the centres, with a combined 430,000sqm of space, for a total of $623 million.
The properties will be maintained and repaired by Woolworths under the lease terms, although a joint venture between SAITeysMcMahon and the Lend Lease-managed Australia Prime Property Fund would be responsible for structural and capital expenditure works. Outgoing chief executive Roger Corbett said the deal gave Woolworths flexibility to alter and adapt the centres to meet changing operation requirements over time and was a "good outcome for all parties".
APPF acquired the three remaining centres, totalling about 200,000sqm, for $223 million, again without specifying which centres or other purchase details, lifting the value of its industrial portfolio to $491 million.
Woolworths is close to finalising a consolidation of its distribution centre network from 30 to 11, part of the Project Refresh cost-reduction program which has cut overheads by $3.6 billion over the past six years. Sphere: Related Content
In Australia's biggest industrial property sale, unlisted funds managed by SAITeysMcMahon and Lend Lease have paid a combined $846 million to buy Woolworths's prime portfolio of 11 distribution centres around the country. The new, purpose-built centres will be leased back to Woolworths for 15 to 17 years.
Under Woolworths's sale terms a price was fixed for the assets and parties were asked to "rent bid" the 630,000sqm portfolio, effectively by offering the lowest rent.
In a sale handled by merchant bank Grant Samuel, SAITeysMcMahon and the Lend Lease-managed Australia Prime Property Fund are believed to have offered rents equating to a 6.3 percent income yield overall, beating shortlisted parties the ALE Property Group and Westpac Office Trust. Woolworths would not specify the overall yield yesterday, saying it was "sub 6.5 percent", implying annual rent on the centres of less than $55 million.
SAITeysMcMahon acquired the biggest chunk in what chief executive David Hinde admitted was a "huge step up" for the fund manager, which largely distributes its product to retail investors through financial planners. SAITeysMcMahon bought eight of the centres, with a combined 430,000sqm of space, for a total of $623 million.
The properties will be maintained and repaired by Woolworths under the lease terms, although a joint venture between SAITeysMcMahon and the Lend Lease-managed Australia Prime Property Fund would be responsible for structural and capital expenditure works. Outgoing chief executive Roger Corbett said the deal gave Woolworths flexibility to alter and adapt the centres to meet changing operation requirements over time and was a "good outcome for all parties".
APPF acquired the three remaining centres, totalling about 200,000sqm, for $223 million, again without specifying which centres or other purchase details, lifting the value of its industrial portfolio to $491 million.
Woolworths is close to finalising a consolidation of its distribution centre network from 30 to 11, part of the Project Refresh cost-reduction program which has cut overheads by $3.6 billion over the past six years. Sphere: Related Content
Hospira Signs Build to Suit for Office Building Near Chicago HQ
Crain's Chicago Business - June 14, 2006
Lake Forest-based Hospira Inc. has signed a long-term lease for a proposed 102,700-square-foot-office building to be developed by Duke Realty Corp. near the hospital products maker's headquarters in the Conway Park development, according to people familiar with the transaction.
As part of the deal, Duke is likely to expand the building to more than 135,000 square feet, adding a lower-level to the three-story structure that Hospira would use in part for a data center, sources say. Duke edged out rival developer Opus North Corp. of Rosemont, which has been vying for Hospira with an office building proposal of its own at a nearby site.
Daniel McCarthy of Chicago real estate firm Jones Lang LaSalle Inc., which represents Hospira, confirms that a lease had been signed, but declines further comment. Steve Schnur, senior vice president in local office of Indianapolis-based Duke, declines comment.
Hospira, a 2004 spin-off from Abbott Laboratories, is outgrowing its existing building at 275 N. Field Drive in Conway Park.
Called the Cadence at Conway Park, the building is expected to be completed next summer. A Hospira representative could not be reached for comment. Sphere: Related Content
Lake Forest-based Hospira Inc. has signed a long-term lease for a proposed 102,700-square-foot-office building to be developed by Duke Realty Corp. near the hospital products maker's headquarters in the Conway Park development, according to people familiar with the transaction.
As part of the deal, Duke is likely to expand the building to more than 135,000 square feet, adding a lower-level to the three-story structure that Hospira would use in part for a data center, sources say. Duke edged out rival developer Opus North Corp. of Rosemont, which has been vying for Hospira with an office building proposal of its own at a nearby site.
Daniel McCarthy of Chicago real estate firm Jones Lang LaSalle Inc., which represents Hospira, confirms that a lease had been signed, but declines further comment. Steve Schnur, senior vice president in local office of Indianapolis-based Duke, declines comment.
Hospira, a 2004 spin-off from Abbott Laboratories, is outgrowing its existing building at 275 N. Field Drive in Conway Park.
Called the Cadence at Conway Park, the building is expected to be completed next summer. A Hospira representative could not be reached for comment. Sphere: Related Content
Wednesday, June 14, 2006
Italian Government Completes €398 Million Sale Leaseback of 75 Property Portfolio
Standard & Poor's Web Site - June 12, 2006
Standard & Poor's has issued a presale report on Patrimonio Uno CMBS S.r.l., a €398 million asset-backed floating-rate notes transaction backed by a senior loan originated by Banca Intesa SpA, Banca Nazionale del Lavoro SpA (BNL), and Morgan Stanley Bank International Ltd. in December 2005. The purpose of the loan was to finance the acquisition of 75 commercial properties in Italy, 53 office buildings and 12 police training centers, from the Italian Ministry of Economy and Finance (MEF) and other public entities. Of the acquisition price, 60% was funded by the loan, while the balance was funded through equity, via the issuance of fund units that have been sold to institutional investors.
The underlying portfolio securing this transaction can be divided into two distinct groups: portfolio A and portfolio B. The portfolio A properties comprise assets that are subject to a lease agreement entered into between the fund and Agenzia del Demanio (ADD). ADD has subsequently assigned the use of the properties to other government entities. Portfolio B comprises properties leased to a mixture of public and private tenants.
The term of the lease to ADD (75% by rental income) is for nine years, expiring in December 2014, with a lease extension on an all-or-nothing basis for the properties included within portfolio A for a further nine years. The term of the loan/note issuance is for 12 years, with a potential extension for a further three years. Standard & Poor's has considered the likelihood of ADD vacating all properties on expiry of the first lease term, and is comfortable that there are sufficient incentives in the ADD lease agreement to ensure the lease will be renewed for a further nine years.
At closing, the aggregate of rents received will amount to €45.192 million, €33.650 million from portfolio A and €11.542 million from portfolio B. Under the ADD lease agreement, rent will be paid semiannually in arrears on the 15th day of June and December. The contracted rent will increase yearly by 75% of the ISTAT (consumer price index) from the beginning of the second year of the lease.
This is a "sell-down" portfolio and it is anticipated that the loan balance, and the notes outstanding, will reduce as the properties are sold. Sales are expected to start from the beginning of 2008 onwards. In general, portfolio A properties are assumed to be sold only after the eighth year from closing, which is after the portfolio A tenant's lease agreement has expired in December 2014.
Standard & Poor's has been able to de-link the rating on the tenant by focusing on the assets and their ability to generate income over the life of the notes, and through refinance from current or subsequent tenants. Sphere: Related Content
Standard & Poor's has issued a presale report on Patrimonio Uno CMBS S.r.l., a €398 million asset-backed floating-rate notes transaction backed by a senior loan originated by Banca Intesa SpA, Banca Nazionale del Lavoro SpA (BNL), and Morgan Stanley Bank International Ltd. in December 2005. The purpose of the loan was to finance the acquisition of 75 commercial properties in Italy, 53 office buildings and 12 police training centers, from the Italian Ministry of Economy and Finance (MEF) and other public entities. Of the acquisition price, 60% was funded by the loan, while the balance was funded through equity, via the issuance of fund units that have been sold to institutional investors.
The underlying portfolio securing this transaction can be divided into two distinct groups: portfolio A and portfolio B. The portfolio A properties comprise assets that are subject to a lease agreement entered into between the fund and Agenzia del Demanio (ADD). ADD has subsequently assigned the use of the properties to other government entities. Portfolio B comprises properties leased to a mixture of public and private tenants.
The term of the lease to ADD (75% by rental income) is for nine years, expiring in December 2014, with a lease extension on an all-or-nothing basis for the properties included within portfolio A for a further nine years. The term of the loan/note issuance is for 12 years, with a potential extension for a further three years. Standard & Poor's has considered the likelihood of ADD vacating all properties on expiry of the first lease term, and is comfortable that there are sufficient incentives in the ADD lease agreement to ensure the lease will be renewed for a further nine years.
At closing, the aggregate of rents received will amount to €45.192 million, €33.650 million from portfolio A and €11.542 million from portfolio B. Under the ADD lease agreement, rent will be paid semiannually in arrears on the 15th day of June and December. The contracted rent will increase yearly by 75% of the ISTAT (consumer price index) from the beginning of the second year of the lease.
This is a "sell-down" portfolio and it is anticipated that the loan balance, and the notes outstanding, will reduce as the properties are sold. Sales are expected to start from the beginning of 2008 onwards. In general, portfolio A properties are assumed to be sold only after the eighth year from closing, which is after the portfolio A tenant's lease agreement has expired in December 2014.
Standard & Poor's has been able to de-link the rating on the tenant by focusing on the assets and their ability to generate income over the life of the notes, and through refinance from current or subsequent tenants. Sphere: Related Content
Friday, June 09, 2006
BMC Software Agrees to $295 Million Sale Leaseback of Houston Headquarters
Comercial Real Estate News - June 8, 2006
TPG/CalSTRS LLC, a joint venture between the Thomas Properties Group and the California State Teachers' Retirement System, has agreed to terms with BMC Software Inc., to purchase the company's four-building, 1.5 million-square-foot campus, as well as 24 acres of adjacent developable land.
The property, located in Houston's Westchase District, was awarded the 2004 BOMA Office Building of the Year Award, and has served as BMC's headquarters since its construction in 1993. A leading provider of enterprise management software solutions, BMC will remain headquartered at the facility under the terms of a 15-year lease for 621,000 square feet (42 percent of the overall campus space) signed as part of the deal.
Two thirds of the $295 million purchase price will be funded by first mortgage financing proceeds, with the other third provided by equity, of which Thomas will fund $24.2 million and CalSTRS $72.4 million. Sphere: Related Content
TPG/CalSTRS LLC, a joint venture between the Thomas Properties Group and the California State Teachers' Retirement System, has agreed to terms with BMC Software Inc., to purchase the company's four-building, 1.5 million-square-foot campus, as well as 24 acres of adjacent developable land.
The property, located in Houston's Westchase District, was awarded the 2004 BOMA Office Building of the Year Award, and has served as BMC's headquarters since its construction in 1993. A leading provider of enterprise management software solutions, BMC will remain headquartered at the facility under the terms of a 15-year lease for 621,000 square feet (42 percent of the overall campus space) signed as part of the deal.
Two thirds of the $295 million purchase price will be funded by first mortgage financing proceeds, with the other third provided by equity, of which Thomas will fund $24.2 million and CalSTRS $72.4 million. Sphere: Related Content
Bank of Ireland to Sell and Leaseback 35 Bank Branches for €300 Million
RTE Business - June 08, 2006
Bank of Ireland has confirmed that following a strategic review of its branch property portfolio, it will sell and leaseback up to 35 of its larger branch locations in September. The bank has 254 branches nationwide.
Bank of Ireland said the proceeds of these sales will be used to strengthen its capital base and to facilitate ongoing growth and investment in the business. The properties will be offered for sale in one or more lots by public tender and CBRE has been appointed as the bank's agents for the project.
Richie Boucher, Chief Executive, Retail Financial Services Ireland says that the bank will enter into long term leases for all of these properties. 'We envisage that we will typically enter 25-year leases, with five rent reviews,' he added. Sphere: Related Content
Bank of Ireland has confirmed that following a strategic review of its branch property portfolio, it will sell and leaseback up to 35 of its larger branch locations in September. The bank has 254 branches nationwide.
Bank of Ireland said the proceeds of these sales will be used to strengthen its capital base and to facilitate ongoing growth and investment in the business. The properties will be offered for sale in one or more lots by public tender and CBRE has been appointed as the bank's agents for the project.
Richie Boucher, Chief Executive, Retail Financial Services Ireland says that the bank will enter into long term leases for all of these properties. 'We envisage that we will typically enter 25-year leases, with five rent reviews,' he added. Sphere: Related Content
Barclays Completes £85m Sale Leaseback of 15 High Street Bank Branches
Property Week reports that Prudential Property Investment Managers (PruPIM) is about to pay more than £85 to acquire a portfolio of 15 high street branches from Barclays. The purchase price provides a yield of around 4.3% as the branches are among the best located high streets branches in the UK. PruPIM acquired the portfolio for one of its retail funds and reportedly beat a shortlist of private investors to the portfolio, which was Barclays' first sale and leaseback to be sold outside of auction.
Barclays is preparing to bring another £70m portfolio 25 of high street branches to the market that will be leased back for 20 years with a break at 15. This portfolio is expected to produce a yield of 4.75% reflecting more secondary locations than the previous sale.
The bank is also reportedly selling its 300,000 sq ft Barclaycard headquarters to a UK fund for £75m at a yield of 5.5%. Barclays' offices at Brackmills Industrial Park, Northampton, and its call centre at Gadbrook Park, Cheshire, are also reportedly under agreement with seperate buyers.
Jones Lang LaSalle's portfolio team is advising Barclays which holds more than 10m sq ft (929,000 sq m) of freehold properties across the world and has 1,700 branches in the UK. Sphere: Related Content
Barclays is preparing to bring another £70m portfolio 25 of high street branches to the market that will be leased back for 20 years with a break at 15. This portfolio is expected to produce a yield of 4.75% reflecting more secondary locations than the previous sale.
The bank is also reportedly selling its 300,000 sq ft Barclaycard headquarters to a UK fund for £75m at a yield of 5.5%. Barclays' offices at Brackmills Industrial Park, Northampton, and its call centre at Gadbrook Park, Cheshire, are also reportedly under agreement with seperate buyers.
Jones Lang LaSalle's portfolio team is advising Barclays which holds more than 10m sq ft (929,000 sq m) of freehold properties across the world and has 1,700 branches in the UK. Sphere: Related Content
Wall Street Journal Reports Sale Leasebacks Gain Favor
A recent article in the Wall Street Journal reports the increasing use of sale leaseback transactions by corporation in Europe, Asia and the US as a way to free up capital to reinvest in their core business. The article cites several recent high profile transactions involving Metro Group AG, Barclays, IBM, Bank of America, Carrefour SA and others.
Sphere: Related Content
LNR Property Corp Enters $60 Million Sale Leaseback of Miami HQ
Cityfeet,com - June 07, 2006
New York-based Andalex Group has acquired Lincoln Place, a 140,000-sf class A office building at 1601 Washington Ave. in South Beach. The property is the headquarters of real estate and finance company LNR Property Corp.
Lincoln Place is an eight-story office building designed by Coral Gables-based architect Nichols Brosch Sandoval which was completed in 2002. It contains 111,000 sf of office space, 29,000 sf of retail space and an attached five-story parking garage with more than 500 spaces. Financing for the transaction was provided by Wachovia Securities.
Andalex vice president and CIO Andrew Silverman tells GlobeSt.com that the building’s location is among reasons the company acquired it. “It’s a fairly new building, class A space, in a good location of South Beach,” Silverman says. LNR has a 15-year lease for the space, but the company believes the strong location will attract tenants over an even longer time period.
The Andalex Group was founded in 1989 and specializes in the acquisition, development, construction management of all property types. The firm’s portfolio includes more than 4.5 million sf of space including the 400,000-sf 101 Avenue of the Americas in Lower Manhattan, Sylvan Corporate Center in Englewood Cliffs, NJ and Arris Lofts in Long Island City, NY. Sphere: Related Content
New York-based Andalex Group has acquired Lincoln Place, a 140,000-sf class A office building at 1601 Washington Ave. in South Beach. The property is the headquarters of real estate and finance company LNR Property Corp.
Lincoln Place is an eight-story office building designed by Coral Gables-based architect Nichols Brosch Sandoval which was completed in 2002. It contains 111,000 sf of office space, 29,000 sf of retail space and an attached five-story parking garage with more than 500 spaces. Financing for the transaction was provided by Wachovia Securities.
Andalex vice president and CIO Andrew Silverman tells GlobeSt.com that the building’s location is among reasons the company acquired it. “It’s a fairly new building, class A space, in a good location of South Beach,” Silverman says. LNR has a 15-year lease for the space, but the company believes the strong location will attract tenants over an even longer time period.
The Andalex Group was founded in 1989 and specializes in the acquisition, development, construction management of all property types. The firm’s portfolio includes more than 4.5 million sf of space including the 400,000-sf 101 Avenue of the Americas in Lower Manhattan, Sylvan Corporate Center in Englewood Cliffs, NJ and Arris Lofts in Long Island City, NY. Sphere: Related Content
ING Securitizes EUR 267 Million Loan on Goldman Sachs UK HQ
ING Real Estate announced today it has successfully closed its first collateralised mortgage-backed securities (CMBS) transaction via LEO (UK) CMBS No.1 plc. The GBP 182.75 million (EUR 267.2 million) transaction was arranged and lead-managed by ING Wholesale Banking on behalf of ING Real Estate Finance, which originated the underlying loan. The loan is secured on part of the European headquarters of Goldman Sachs in London.
The issue comprised GBP 100 million (EUR 146.2 million) Class A1 Notes rated AAA/Aaa, GBP 35 million (EUR 51.2 million) Class A2 Notes rated AAA/Aa2 by S&P and Moody’s respectively and GBP 47.75 million (EUR 69.8 million) Class B Notes. The Class A Notes were listed in the Irish Stock Exchange. The unrated and non listed Class B Notes were placed with ING Real Estate Finance UK, London Branch. ING Real Estate Finance will be the servicer of the loan.
The structure was designed to sell-down a significant portion of the loan to third party investors while allowing ING Real Estate to retain a position in the loan via its purchase of the Class B Notes. There was an overwhelming interest from investors, which resulted in tight pricing on the Class A Notes. Sphere: Related Content
The issue comprised GBP 100 million (EUR 146.2 million) Class A1 Notes rated AAA/Aaa, GBP 35 million (EUR 51.2 million) Class A2 Notes rated AAA/Aa2 by S&P and Moody’s respectively and GBP 47.75 million (EUR 69.8 million) Class B Notes. The Class A Notes were listed in the Irish Stock Exchange. The unrated and non listed Class B Notes were placed with ING Real Estate Finance UK, London Branch. ING Real Estate Finance will be the servicer of the loan.
The structure was designed to sell-down a significant portion of the loan to third party investors while allowing ING Real Estate to retain a position in the loan via its purchase of the Class B Notes. There was an overwhelming interest from investors, which resulted in tight pricing on the Class A Notes. Sphere: Related Content
Wednesday, June 07, 2006
Good Harbor Fillet Enters Sale Leaseback of HQ Near Boston
Boston Business Journal - June 2, 2006
Angelo Gordon and Co. bought a 68,000-square-foot industrial building from 21 Great Republic Drive LLC for $8 million. The deal is a sale and lease back, in which the seller, a joint venture of the Good Harbor Fillet Co. and a private investment fund based in Los Angeles, will continue to occupy and lease the Gloucester, MA building. Good Harbor Fillet signed a 20-year lease for the building with Angelo Gordon and Co.
The building is at 21-29 Great Republic Drive in Gloucester on 9.6 acres in the Blackburn Industrial Park and is about 30 miles northeast of downtown Boston.
Good Harbor Fillet Co. is a seafood processing company whose clients include Gorton's, the U.S. Food Service, Stop & Shop, the U.S. military and school systems nationwide.
Good Harbor Fillet was advised by Sonnenblick Goldman, a New York-based real estate banking firm, in the transaction. Sphere: Related Content
Angelo Gordon and Co. bought a 68,000-square-foot industrial building from 21 Great Republic Drive LLC for $8 million. The deal is a sale and lease back, in which the seller, a joint venture of the Good Harbor Fillet Co. and a private investment fund based in Los Angeles, will continue to occupy and lease the Gloucester, MA building. Good Harbor Fillet signed a 20-year lease for the building with Angelo Gordon and Co.
The building is at 21-29 Great Republic Drive in Gloucester on 9.6 acres in the Blackburn Industrial Park and is about 30 miles northeast of downtown Boston.
Good Harbor Fillet Co. is a seafood processing company whose clients include Gorton's, the U.S. Food Service, Stop & Shop, the U.S. military and school systems nationwide.
Good Harbor Fillet was advised by Sonnenblick Goldman, a New York-based real estate banking firm, in the transaction. Sphere: Related Content
Tuesday, June 06, 2006
PA Consulting Seeking £175 Million Sale Leaseback of London HQ
The Times Online - June 6, 2006
PA Consulting is to sell its London headquarters at 123 Buckingham Palace Road for more than £175 million as part of a sale-and-leaseback deal, The Times has learned.
The management, systems and technology consulting company has appointed Cushman & Wakefield Healey & Baker, the global property consultant, to market the building in London’s Victoria, which it bought for about £107 million in 1999.
PA Consulting occupies about half of the 194,000 sq ft property. The rest is leased to the Highways Agency, BSkyB and Korn/Ferry International. The sale is designed to cash in on bumper demand to buy commercial property assets. Neil Gorman, head of global real estate at PA Consulting, said that capital from the sale would be reinvested in developing new business in new markets.
PA plans to agree a new 20-year lease on the space that it occupies in the building at a rent of about £50 per sq ft. If the building is sold at the £175 million sale price, that would generate a rental yield of more than 5.25 per cent for the purchaser. Sphere: Related Content
PA Consulting is to sell its London headquarters at 123 Buckingham Palace Road for more than £175 million as part of a sale-and-leaseback deal, The Times has learned.
The management, systems and technology consulting company has appointed Cushman & Wakefield Healey & Baker, the global property consultant, to market the building in London’s Victoria, which it bought for about £107 million in 1999.
PA Consulting occupies about half of the 194,000 sq ft property. The rest is leased to the Highways Agency, BSkyB and Korn/Ferry International. The sale is designed to cash in on bumper demand to buy commercial property assets. Neil Gorman, head of global real estate at PA Consulting, said that capital from the sale would be reinvested in developing new business in new markets.
PA plans to agree a new 20-year lease on the space that it occupies in the building at a rent of about £50 per sq ft. If the building is sold at the £175 million sale price, that would generate a rental yield of more than 5.25 per cent for the purchaser. Sphere: Related Content
Sunday, June 04, 2006
Royal Bank of Scotland Seeking Sale Leaseback of 250 Bank Brances
Property Week reports that The Royal Bank of Scotland is looking to sell up to 250 properties across the UK.
The portfolio is expected to include freehold and leasehold properties from both high street retail and offices throughout the UK. It will be the second group of properties to be sold and leased back by the bank. It follows the £100m sale last year of 300 properties to Ackerman Group.
The portfolio, which has yet to officially come to the market, is expected to sell for up to £75m and offer 20-year leases. The exact properties to be included in the portfolio have not yet been finalised and is still awaiting board approval.
Ernst & Young, which advised RBS on last year's deal with Ackerman, is said to be advising on this second group of properties. Sphere: Related Content
The portfolio is expected to include freehold and leasehold properties from both high street retail and offices throughout the UK. It will be the second group of properties to be sold and leased back by the bank. It follows the £100m sale last year of 300 properties to Ackerman Group.
The portfolio, which has yet to officially come to the market, is expected to sell for up to £75m and offer 20-year leases. The exact properties to be included in the portfolio have not yet been finalised and is still awaiting board approval.
Ernst & Young, which advised RBS on last year's deal with Ackerman, is said to be advising on this second group of properties. Sphere: Related Content
Saturday, June 03, 2006
Singapore Stock Exchange Exploring Sale Leaseback of Headquarters
Channel News Asia - May 29, 2006
The Singapore Exchange has confirmed it is open to selling its headquarters building and then leasing it back. But it will only do so when market conditions are suitable. It also says any sale won't automatically result in a special payout to shareholders. It may find other possible uses for the money.
SGX was responding to an analyst report by Credit Suisse predicting the exchange will sell its building SGX Centre 1 by year-end. Sphere: Related Content
The Singapore Exchange has confirmed it is open to selling its headquarters building and then leasing it back. But it will only do so when market conditions are suitable. It also says any sale won't automatically result in a special payout to shareholders. It may find other possible uses for the money.
SGX was responding to an analyst report by Credit Suisse predicting the exchange will sell its building SGX Centre 1 by year-end. Sphere: Related Content
El Arbol Completes $97 Million Sale Leaseback of 44 Supermarkets in Spain
GE Real Estate Iberia recently closed on a €75 million (U.S.$97 million) sale-leaseback deal with Spanish retailer El Arbol for 44 properties toward the north of Spain. Including 32 high street supermarkets, five convenience stores, three food logistics warehouses, three mixed-use assets and a training center, the deal is the second largest in Spain in the past year, according to GE Real Estate.
"We bought the El Arbol properties at a 6 percent to 6.5 percent yield," Marcelo Horcel, managing director of GE Real Estate Iberia, told CPN. "That yield is very much in line with retail markets in Spain, where yields are still tightening. High street retail in prime areas in Spain yields around 5 percent, and shopping centers around 5.5 percent to 6 percent. El Arbol is either the leader or No. 2 in its markets."
The El Arbol properties GE acquired, which are 97 percent occupied, comprise 72,000 square meters and are located in the Spanish regions of Asturias, Cantabria, Castilla y Leon, Extremadura and Galicia, and are on medium- to long-term leases. Sphere: Related Content
"We bought the El Arbol properties at a 6 percent to 6.5 percent yield," Marcelo Horcel, managing director of GE Real Estate Iberia, told CPN. "That yield is very much in line with retail markets in Spain, where yields are still tightening. High street retail in prime areas in Spain yields around 5 percent, and shopping centers around 5.5 percent to 6 percent. El Arbol is either the leader or No. 2 in its markets."
The El Arbol properties GE acquired, which are 97 percent occupied, comprise 72,000 square meters and are located in the Spanish regions of Asturias, Cantabria, Castilla y Leon, Extremadura and Galicia, and are on medium- to long-term leases. Sphere: Related Content
Friday, June 02, 2006
Nortel Seeking Sale Leaseback of Galway Office Complex
One of Galway's leading companies, Nortel, is to embark on a sale and leaseback of most of its office complex at Mervue Business Park in Galway.
Nortel has been based at Mervue since 1973 and operates one of the world's most advanced telecommunications research centres from that location. Roland O'Connell of Hamilton Osborne King, who is handling the property transaction, will not be providing any guide price but investment advisers estimate that the deal should be worth at least €28 million to Nortel.
Nortel has gradually changed its focus from manufacturing to high value global research and development. The company provides international customer sales, operations and finance support across Europe from its Galway base.
The sale and leaseback proposition reflects this progression as Nortel will continue to occupy 8,000sq m (86,112sq ft) of space which will be leased back for a term of 20 years. The rent roll of €1.2 million reflects a rent of €161 per sq m (€15 per sq ft).
The remaining 8,000sq m (86,112sq ft) in the 1973 Nortel building will be sold with vacant possession apart from about 1,200sq m (12,916sq ft) which is let on a short term lease to another company. The sale will also include the modern Lyrr Building, currently sublet, which has a floor area of around 1,858sq m (20,000sq ft). Sphere: Related Content
Nortel has been based at Mervue since 1973 and operates one of the world's most advanced telecommunications research centres from that location. Roland O'Connell of Hamilton Osborne King, who is handling the property transaction, will not be providing any guide price but investment advisers estimate that the deal should be worth at least €28 million to Nortel.
Nortel has gradually changed its focus from manufacturing to high value global research and development. The company provides international customer sales, operations and finance support across Europe from its Galway base.
The sale and leaseback proposition reflects this progression as Nortel will continue to occupy 8,000sq m (86,112sq ft) of space which will be leased back for a term of 20 years. The rent roll of €1.2 million reflects a rent of €161 per sq m (€15 per sq ft).
The remaining 8,000sq m (86,112sq ft) in the 1973 Nortel building will be sold with vacant possession apart from about 1,200sq m (12,916sq ft) which is let on a short term lease to another company. The sale will also include the modern Lyrr Building, currently sublet, which has a floor area of around 1,858sq m (20,000sq ft). Sphere: Related Content
Wednesday, May 31, 2006
WTorre Building Large Sale Leaseback Portfolio in Brazil
Brazillian newspaper Gazeta Mercantil reports that Brazilian real estate company WTorre has created a new division to pursue sale and leaseback investments totalling R$1billion over the next three years. Properties will include offices, industrial facilities, distribution centers and stores occupied by large corporations.
The new division was created in 2005 when Brazillian banks started to sell off property assets. Last year the Pao de Acucar chain sold a total of 28 hypermarkets and 32 supermarkets for R$1,29billion to an investment fund owned by businessman Abilio Diniz. WTorre has already negotiated three acquisition contracts with multinationals valued at R$400mil including one valued at R$200mil for eight industrial facilities leased back for a term of 50 years. Sphere: Related Content
The new division was created in 2005 when Brazillian banks started to sell off property assets. Last year the Pao de Acucar chain sold a total of 28 hypermarkets and 32 supermarkets for R$1,29billion to an investment fund owned by businessman Abilio Diniz. WTorre has already negotiated three acquisition contracts with multinationals valued at R$400mil including one valued at R$200mil for eight industrial facilities leased back for a term of 50 years. Sphere: Related Content
Wednesday, May 24, 2006
CA Nearing $195 Million Sale Leaseback of Long Island HQ
Software giant CA Inc. is poised to sell its sprawling 778,000-square-foot Islandia headquarters to Boston-based investment group CRIC Capital, said a source familiar with the deal.
A Jones Lang LaSalle Americas Inc. broker representing CA on the deal declined to comment. CRIC did not return multiple calls and e-mail messages seeking comment.
It is unclear if this deal includes the entire 60-acre campus. The price is also not known, but in its March offering memorandum, CA, formerly known as Computer Associates, set the price at $195 million. At $250 per square foot, that is one of the highest asking prices for a Long Island office building.
CA has been dogged by rumors that it wants to leave the Island – fueled, in part, by CA leasing 67,000 square feet in Manhattan last year – but has said it remains committed to staying on Long Island. The company boasts 150 offices in more than 45 countries.
In the offering memorandum, CA said it aims to lease the site back for 15 years with a decade renewal option, followed by two-five year options.
In 1990, the Islandia Board of Trustees approved a total of 1.48 million square feet to be built in three phases, but only a little more than half was built. Among the projects set aside was a four-story office building and a cafeteria/training center. Sphere: Related Content
A Jones Lang LaSalle Americas Inc. broker representing CA on the deal declined to comment. CRIC did not return multiple calls and e-mail messages seeking comment.
It is unclear if this deal includes the entire 60-acre campus. The price is also not known, but in its March offering memorandum, CA, formerly known as Computer Associates, set the price at $195 million. At $250 per square foot, that is one of the highest asking prices for a Long Island office building.
CA has been dogged by rumors that it wants to leave the Island – fueled, in part, by CA leasing 67,000 square feet in Manhattan last year – but has said it remains committed to staying on Long Island. The company boasts 150 offices in more than 45 countries.
In the offering memorandum, CA said it aims to lease the site back for 15 years with a decade renewal option, followed by two-five year options.
In 1990, the Islandia Board of Trustees approved a total of 1.48 million square feet to be built in three phases, but only a little more than half was built. Among the projects set aside was a four-story office building and a cafeteria/training center. Sphere: Related Content
Sunday, May 21, 2006
Homburg Invest Acquires Infineon Technologies HQ in Munich for EUR 388 Million
Homburg Invest Inc. has reached an agreement to acquire the newly built headquarters and development centre of Infineon Technologies AG in Munich, Germany from Alliance Group, a Dutch/Swiss investment group with CommerzLeasing und Immobilien AG for EUR 388.5 million consisting of EUR 275,5 million assumption of debt and EUR 110 million in cash.
The acquisition is expected to close on or about June 30, 2006. The property is leased on a triple net basis to Infineon Technologies AG for twenty years. Infineon has a purchase option after 15 years.
The low rise campus was built between 2003 and 2005 and conists of six buildings, each app. 23,000 sqm in size and an underground parking facility for 1,980 cars. Access to parking, all situated beneath the buildings, is via an underground ring road. The campus covers approx. 150,000 sqm floor space above ground including a café, restaurant, various shops, a casino, sports facilities, a health centre and a daycare center.
The complex is situated close to the municipal border in Munich's green belt about 20 minutes to the centre of Munich. Sphere: Related Content
The acquisition is expected to close on or about June 30, 2006. The property is leased on a triple net basis to Infineon Technologies AG for twenty years. Infineon has a purchase option after 15 years.
The low rise campus was built between 2003 and 2005 and conists of six buildings, each app. 23,000 sqm in size and an underground parking facility for 1,980 cars. Access to parking, all situated beneath the buildings, is via an underground ring road. The campus covers approx. 150,000 sqm floor space above ground including a café, restaurant, various shops, a casino, sports facilities, a health centre and a daycare center.
The complex is situated close to the municipal border in Munich's green belt about 20 minutes to the centre of Munich. Sphere: Related Content
Saturday, May 20, 2006
MTS Allstream Seeking Sale Leaseback of Winnipeg HQ
Globe and Mail - May 16, 2006
In the midst of its latest restructuring program, Manitoba Telecom Services Inc. is putting two buildings in its home town up for sale.
MTS purchased its 24 story Winnipeg headquarters at 333 Main Street in 2002, and the 13 story building behind it at 191 Pioneer Avenue in 1982. MTS will list the downtown properties with Cushman & Wakefield LePage, MTS spokeswoman Michelle Bailey said yesterday.
Despite the "For sale" sign on those buildings, MTS has no plans to move. The 1,225 employees who work in those sites will stay put because the company plans to lease the office space, Ms. Bailey said.
"This is an opportunity for us to take advantage of the property values having gone up in this particular area," Ms. Bailey said. Sphere: Related Content
In the midst of its latest restructuring program, Manitoba Telecom Services Inc. is putting two buildings in its home town up for sale.
MTS purchased its 24 story Winnipeg headquarters at 333 Main Street in 2002, and the 13 story building behind it at 191 Pioneer Avenue in 1982. MTS will list the downtown properties with Cushman & Wakefield LePage, MTS spokeswoman Michelle Bailey said yesterday.
Despite the "For sale" sign on those buildings, MTS has no plans to move. The 1,225 employees who work in those sites will stay put because the company plans to lease the office space, Ms. Bailey said.
"This is an opportunity for us to take advantage of the property values having gone up in this particular area," Ms. Bailey said. Sphere: Related Content
Saturday, May 13, 2006
Blue Circle Enters 25 Year Lease for Birmingham Offices
Estates Gazette reports that a 60,000 square foot office development close to Birmingham International Airport is being sold to M&F Ireland for £21.75m by Birmingham-based developer Stoford Developments. Blue Circle pre-let the building at the NEC, Solihull on a 25-year lease. The property was reportedly sold at an initial yield of less than 5.25% which is believed to be a record for the M42 corridor.
Sphere: Related Content
Friday, May 12, 2006
Kings Supermarkets Completes $48.4 Million Sale Leaseback of NJ Stores
PRNewswire/Firstcall - May 10, 2006
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it completed a sale-leaseback transaction with Kings Super Markets, Inc., a premium food retailer with 26 stores primarily located in northern New Jersey. Proceeds from the transaction helped to fund the $61.5 million acquisition of Kings Super Markets, Inc. by an investor group consisting of Angelo, Gordon & Co., MTN Capital Partners LLC, and Bruce Weitz, a retail executive with over 30-years senior management experience. Mr. Weitz, who has formerly served as CEO of Duane Reade Drugstore and President of First National Supermarkets, will become the new Chairman of Kings.
As part of the acquisition financing, W. P. Carey's affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA(R):16 - Global), acquired six grocery stores for $48.4 million and leased them back to Kings Super Markets under long-term triple net leases. The six grocery stores are located in Summit, Livingston, Maplewood, Montclair, Morristown, and Cresskill, NJ, areas known to be among the top suburban retail markets in the U.S. Sphere: Related Content
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that it completed a sale-leaseback transaction with Kings Super Markets, Inc., a premium food retailer with 26 stores primarily located in northern New Jersey. Proceeds from the transaction helped to fund the $61.5 million acquisition of Kings Super Markets, Inc. by an investor group consisting of Angelo, Gordon & Co., MTN Capital Partners LLC, and Bruce Weitz, a retail executive with over 30-years senior management experience. Mr. Weitz, who has formerly served as CEO of Duane Reade Drugstore and President of First National Supermarkets, will become the new Chairman of Kings.
As part of the acquisition financing, W. P. Carey's affiliated income generating real estate fund, Corporate Property Associates 16 - Global Incorporated (CPA(R):16 - Global), acquired six grocery stores for $48.4 million and leased them back to Kings Super Markets under long-term triple net leases. The six grocery stores are located in Summit, Livingston, Maplewood, Montclair, Morristown, and Cresskill, NJ, areas known to be among the top suburban retail markets in the U.S. Sphere: Related Content
Thursday, May 11, 2006
Baxter BioScience Enters Sale Leaseback on CA Offices
Baxter BioScience is selling its office building in Westlake Village with plans to lease back the space. Baxter BioScience is a part of Baxter International Inc., based in Deerfield, Ill. The BioScience division, which also owns a manufacturing facility in Thousand Oaks, employs a total of 900 people at the two locations.
Though selling the office building, Baxter BioScience does not plan to scale back or leave the area, said spokeswoman Amy Cynkar. Instead, the company will enter into a long-term lease back agreement to remain in the part of the building it already uses. "We're only occupying half the building," Cynkar said. "It was mainly a financial decision." Baxter BioScience has sublet some space in the office complex since moving into the former Verizon building.
The 426,000-square-foot building was sold for an undisclosed amount to Tishman Speyer Properties. Sphere: Related Content
Though selling the office building, Baxter BioScience does not plan to scale back or leave the area, said spokeswoman Amy Cynkar. Instead, the company will enter into a long-term lease back agreement to remain in the part of the building it already uses. "We're only occupying half the building," Cynkar said. "It was mainly a financial decision." Baxter BioScience has sublet some space in the office complex since moving into the former Verizon building.
The 426,000-square-foot building was sold for an undisclosed amount to Tishman Speyer Properties. Sphere: Related Content
Wednesday, May 10, 2006
ShopKo Agrees to $815 Million Sale Leaseback of 178 Stores
Sun Capital Partners, a Boca Raton, Fla.–based private equity firm, is selling its ShopKo Stores properties to Spirit Finance Corp. in an $815.3 million sale-leaseback, making this the biggest such transaction ever in the U.S. retail real estate industry.
Sun Capital bought ShopKo in December for $880.8 million plus debt.
The deal involves 112 ShopKo and 66 Pamida sites. The seller has agreed to lease the ShopKo stores for 20 years and the Pamida properties for 15.
Up to now Kmart has held the record for a sale-leaseback transaction, according to a report in The Wall Street Journal. The retailer raised $621 million in such a deal during its bankruptcy proceedings.
The ShopKo discount stores, which measure about 90,000 square feet each on average, operate in open-air centers and as stand-alone locations in small cities. Pamida operates 30,000-square-foot general merchandise stores in rural locations.
Sale-leaseback transactions have grown increasingly popular among retailers eager to raise cash. Albertsons, J.C. Penney and Wal-Mart have all struck such deals, as have drugstores, fast-food chains and other stand-alone retailers. In recent years rival drugstore giants Walgreen Co. and CVS Corp. have both completed the occasional sale-leaseback deal. Walgreen leases 80 percent of its roughly 5,000 stores. Sphere: Related Content
Sun Capital bought ShopKo in December for $880.8 million plus debt.
The deal involves 112 ShopKo and 66 Pamida sites. The seller has agreed to lease the ShopKo stores for 20 years and the Pamida properties for 15.
Up to now Kmart has held the record for a sale-leaseback transaction, according to a report in The Wall Street Journal. The retailer raised $621 million in such a deal during its bankruptcy proceedings.
The ShopKo discount stores, which measure about 90,000 square feet each on average, operate in open-air centers and as stand-alone locations in small cities. Pamida operates 30,000-square-foot general merchandise stores in rural locations.
Sale-leaseback transactions have grown increasingly popular among retailers eager to raise cash. Albertsons, J.C. Penney and Wal-Mart have all struck such deals, as have drugstores, fast-food chains and other stand-alone retailers. In recent years rival drugstore giants Walgreen Co. and CVS Corp. have both completed the occasional sale-leaseback deal. Walgreen leases 80 percent of its roughly 5,000 stores. Sphere: Related Content
Monday, May 08, 2006
SJ Berwin HQ in London Sells for Record Low Yield
Property Week reports that a new city benchmark yield was recently set after Blackstone agreed to sell 10 Queen Street Place in the City of London to Morley Fund Management for £145m. The price reflects an initial yield of 4.5% which is reportedly a record for a large tenanted City building in this cycle and reflects the fact that there is a pre-agreed rental increase at the building at the next rent review. The acquisition is for Morley's Norwich Union fund.
Blackstone leased 180,000 sq ft at 10 Queen Street Place, formerly known as Thames Exchange, to law firm SJ Berwin in 2004 on a 20-year lease at around £36/sq ft. Blackstone acquired the 210,000 sq ft building from Scottish Amicable in 2000 for £73m and redeveloped it following a lease surrender by HSBC. Sphere: Related Content
Blackstone leased 180,000 sq ft at 10 Queen Street Place, formerly known as Thames Exchange, to law firm SJ Berwin in 2004 on a 20-year lease at around £36/sq ft. Blackstone acquired the 210,000 sq ft building from Scottish Amicable in 2000 for £73m and redeveloped it following a lease surrender by HSBC. Sphere: Related Content
Saturday, May 06, 2006
Healthways Commissions $60 Million HQ Build-to-Suit Near Nashville
Commercial Property News - May 05, 2006
Highwoods Properties Inc. will develop the new corporate headquarters for Healthways Inc., the largest provider of specialized, comprehensive health and care support programs and services. Highwoods will construct a five-story, 255,000-square-foot Class A office building, which will also have a structured parking, on a 14-acre lot of land in Cool Springs, a submarket of Nashville, Tenn., which Highwood owns. Upon its completion, the building will be 100 percent occupied by Healthways under a long-term lease agreement.
The estimated construction cost for the project is $60 million. Construction is scheduled to begin in the fourth quarter of 2006 with an estimated completion date of late 2007 or early 2008. Sphere: Related Content
Highwoods Properties Inc. will develop the new corporate headquarters for Healthways Inc., the largest provider of specialized, comprehensive health and care support programs and services. Highwoods will construct a five-story, 255,000-square-foot Class A office building, which will also have a structured parking, on a 14-acre lot of land in Cool Springs, a submarket of Nashville, Tenn., which Highwood owns. Upon its completion, the building will be 100 percent occupied by Healthways under a long-term lease agreement.
The estimated construction cost for the project is $60 million. Construction is scheduled to begin in the fourth quarter of 2006 with an estimated completion date of late 2007 or early 2008. Sphere: Related Content
Friday, May 05, 2006
Duckwall-ALCO Signs $11 Million Sale Leaseback of 11 Stores
Discount retail chain Duckwall-ALCO Stores Inc. of Abilene today said it has agreed to sell 11 ALCO locations to Realty Income Corp. for approximately $11.2 million.
It is anticipated that the transaction will close in the next few weeks, with the exception of one store in Texas, which is under construction. The company said cash proceeds from the transaction will be used to repay long-term debt.
As part of the deal, Duckwall-ALCO will continue operations at the 11 locations a 15-year sale-leaseback agreement. Sphere: Related Content
It is anticipated that the transaction will close in the next few weeks, with the exception of one store in Texas, which is under construction. The company said cash proceeds from the transaction will be used to repay long-term debt.
As part of the deal, Duckwall-ALCO will continue operations at the 11 locations a 15-year sale-leaseback agreement. Sphere: Related Content
Point.360 Closes $16 Million Sale Leaseback
GlobeSt.com - May 4, 2006
United Trust Fund of Miami and GE Real Estate have executed the sale-leaseback of a 65,00-sf office and warehouse building. The partners bought the property, which is at 2701 Media Center Drive, from video digital services firm Point.360 for more than $16 million.
As part of the deal, Point.360 has signed a 15-year net lease to remain in the building. The company is one of the largest providers of high-definition digital mastering, data conversion and video asset management services to the entertainment and advertising industries.
The facility is a two-story structure comprising approximately 20,000 sf of office space, with the balance of the space a climate-controlled warehouse. The building was developed in 2001. Sphere: Related Content
United Trust Fund of Miami and GE Real Estate have executed the sale-leaseback of a 65,00-sf office and warehouse building. The partners bought the property, which is at 2701 Media Center Drive, from video digital services firm Point.360 for more than $16 million.
As part of the deal, Point.360 has signed a 15-year net lease to remain in the building. The company is one of the largest providers of high-definition digital mastering, data conversion and video asset management services to the entertainment and advertising industries.
The facility is a two-story structure comprising approximately 20,000 sf of office space, with the balance of the space a climate-controlled warehouse. The building was developed in 2001. Sphere: Related Content
ICA Closes $117 Million Sale Leaseback of 25 Swedish Supermarkets
Commercial Property News - May 05, 2006
ING Real Estate of the The Hague, Netherlands, bought a portfolio of 25 supermarkets in Sweden this week from ICA, a Swedish retailer, for €93 million ($117 million U.S.), in a sale/leaseback transaction. The 25 ICA standalone stores in the southwest of Sweden will be added to the new ING Real Estate Nordic Property Fund, a non-listed fund for global institutional investors expected to launch in the fourth quarter.
ING acquired the portfolio of ICA supermarkets at an initial yield of 5.5 percent. Sphere: Related Content
ING Real Estate of the The Hague, Netherlands, bought a portfolio of 25 supermarkets in Sweden this week from ICA, a Swedish retailer, for €93 million ($117 million U.S.), in a sale/leaseback transaction. The 25 ICA standalone stores in the southwest of Sweden will be added to the new ING Real Estate Nordic Property Fund, a non-listed fund for global institutional investors expected to launch in the fourth quarter.
ING acquired the portfolio of ICA supermarkets at an initial yield of 5.5 percent. Sphere: Related Content
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