SEC Edgar Database - November 19, 2007
On November 19, 2007, Harleysville National Bank, a wholly owned banking subsidiary of Harleysville National Corporation, entered into a definitive agreement (the “Agreement”) to sell sixteen properties to American Realty Capital, LLC (“ARC”) in a sale-leaseback transaction. The properties are located throughout Berks, Bucks, Lehigh, Montgomery, Northampton, and Carbon counties. The total sale price is expected to be approximately $38.8 million.
In the Agreement, the parties each make customary representations and warranties to each other. The finalization of the transaction is also contingent upon the completion of a 30 day due diligence period.
The agreement provides that the leases will be institution-quality, triple net leases with initial annual aggregate base rent of $3,003,838 (a 7.75% cap rate) with annual rent escalations equal to the lower of CPI-U (Consumer Price Index for all Urban Consumers) or 2.0 percent commencing in the second year of the lease term. As tenant, the Bank will be fully responsible for all costs associated with the operation, repair and maintenance of the properties during the lease terms.
The agreement provides that each lease will have an initial term ranging from 5 – 15 years, commencing on the closing date for the Agreement, with options to renew on various terms for periods aggregating up to 45 years. The Agreement is expected to close on or before year-end 2007.
Sphere: Related Content
Wednesday, November 21, 2007
Tuesday, November 20, 2007
Whirlpool Signs 10 Year Lease for 1.7 Million SF Distribution Center in CA Inland Empire
Trading Markets - November 19, 2007
Whirlpool Corp. has signed a 10-year lease to occupy the Perris Distribution Center, a 1.7-million-square-foot warehouse-distribution facility at the northeast corner of Perris Boulevard and Morgan Street, said Sam Foster, senior vice president with Jones Lang LaSalle, a Los Angeles real estate firm. Financial terms were not disclosed.
Foster negotiated Whirlpool's lease with the building's developer, IDS Real Estate Group in Los Angeles. The building was the largest speculative warehouse-distribution project ever built in the United States, said Murad Siam, IDS Real Estate's co-chief executive officer.
All of the employees are being moved from two warehouse-distribution facilities in Ontario and one in Mira Loma. Benton Harbor, Mich.-based Whirlpool leased more than 1.5 million square feet of logistics space in those three cities, Foster said.
Whirlpool, which purchased Maytag Corp. for $1.79 billion on March 2006, is building 10 large warehouse-distribution facilities, including the Perris operation, in North America. The Perris facility will serve the southwest United States, Foster said.
Whirlpool officials originally wanted to build their own distribution facility on 80 acres that was served by rail, but changed their plans when such a site became too difficult to find. "It's almost impossible to find a site like that anywhere in the Los Angeles area," Foster said. "We looked in Barstow, but by then Whirlpool decided they would be better off locating in the basin." Sphere: Related Content
Whirlpool Corp. has signed a 10-year lease to occupy the Perris Distribution Center, a 1.7-million-square-foot warehouse-distribution facility at the northeast corner of Perris Boulevard and Morgan Street, said Sam Foster, senior vice president with Jones Lang LaSalle, a Los Angeles real estate firm. Financial terms were not disclosed.
Foster negotiated Whirlpool's lease with the building's developer, IDS Real Estate Group in Los Angeles. The building was the largest speculative warehouse-distribution project ever built in the United States, said Murad Siam, IDS Real Estate's co-chief executive officer.
All of the employees are being moved from two warehouse-distribution facilities in Ontario and one in Mira Loma. Benton Harbor, Mich.-based Whirlpool leased more than 1.5 million square feet of logistics space in those three cities, Foster said.
Whirlpool, which purchased Maytag Corp. for $1.79 billion on March 2006, is building 10 large warehouse-distribution facilities, including the Perris operation, in North America. The Perris facility will serve the southwest United States, Foster said.
Whirlpool officials originally wanted to build their own distribution facility on 80 acres that was served by rail, but changed their plans when such a site became too difficult to find. "It's almost impossible to find a site like that anywhere in the Los Angeles area," Foster said. "We looked in Barstow, but by then Whirlpool decided they would be better off locating in the basin." Sphere: Related Content
Netcare Mulling $5.9 Billion Sale Leaseback of UK & South African Hospital Portfolios?
Business Report - November 20, 2007
Netcare could sell its South African property business, worth R9.5 billion, to unlock more value for shareholders, Richard Friedland, the chief executive, said yesterday.
Friedland said there were at least four or five options the company could explore when the properties were sold. Those included leasing back the hospitals and allowing shareholders to have a stake in Netcare and the property portfolio. Friedland would not be drawn into the time frames of when this could be finalised.
He said there were no discussions taking place around the issue at present, but it was an option the company knew could yield a great deal of value. Netcare manages 56 hospitals in South Africa. It owns 44 of those.
Two months ago, Netcare said it could sell its UK property, which was valued at more than £2.2 billion (R30.2 billion). Peter Nelson, the group's chief financial officer, said those plans were on hold. "We are still open minded to the sale, but the interest rates are very high in the UK right now and we need that to settle down a bit," Nelson said . "At the right time and for the right price we will sell, but it is not our main focus as we stand here today." Sphere: Related Content
Netcare could sell its South African property business, worth R9.5 billion, to unlock more value for shareholders, Richard Friedland, the chief executive, said yesterday.
Friedland said there were at least four or five options the company could explore when the properties were sold. Those included leasing back the hospitals and allowing shareholders to have a stake in Netcare and the property portfolio. Friedland would not be drawn into the time frames of when this could be finalised.
He said there were no discussions taking place around the issue at present, but it was an option the company knew could yield a great deal of value. Netcare manages 56 hospitals in South Africa. It owns 44 of those.
Two months ago, Netcare said it could sell its UK property, which was valued at more than £2.2 billion (R30.2 billion). Peter Nelson, the group's chief financial officer, said those plans were on hold. "We are still open minded to the sale, but the interest rates are very high in the UK right now and we need that to settle down a bit," Nelson said . "At the right time and for the right price we will sell, but it is not our main focus as we stand here today." Sphere: Related Content
The Great Escape Completes $89.5 Million Sale Leaseback of Midwest Store Portfolio
McHenry County Business Journal - November 2, 2007
The Great Escape, the largest home leisure retailer in the Midwest with 21 stores, has sold all of its stores. The Great Escape will continue selling its assortment of home recreational products for the foreseeable future, as the retailer has agreed to a 20 year leaseback of the properties.
This month, South Holland-based Great Escape sold all its store sites, including one at 2421 S. Randall Road in Algonquin, to Scottsdale, Ariz.-based Spirit Finance Corp. for a total of $89.5 million. Records show the Algonquin store sold for $9.8 million.
Representatives of The Great Escape and Spirit Finance Corp. declined to discuss the transaction. Sphere: Related Content
The Great Escape, the largest home leisure retailer in the Midwest with 21 stores, has sold all of its stores. The Great Escape will continue selling its assortment of home recreational products for the foreseeable future, as the retailer has agreed to a 20 year leaseback of the properties.
This month, South Holland-based Great Escape sold all its store sites, including one at 2421 S. Randall Road in Algonquin, to Scottsdale, Ariz.-based Spirit Finance Corp. for a total of $89.5 million. Records show the Algonquin store sold for $9.8 million.
Representatives of The Great Escape and Spirit Finance Corp. declined to discuss the transaction. Sphere: Related Content
Houghton Mifflin Completes $25.8 Million Sale Leaseback of Chicago Area Warehouse
Cityfeet / GlobeSt.com - October 25, 2007
Inland Real Estate Exchange Corp., based in Oak Brook, has acquired a distribution center at 1900 S. Batavia Ave. The sales price was $25.8 million. The 513,512-sf building was acquired from Boston-based Houghton Mifflin Co. in a sale-leaseback.
Inland Real Estate Acquisitions Inc. negotiated the sale on behalf of Inland Real Estate Exchange Corp., both of which are affiliates of Inland Real Estate Group of Cos. Inc. Houghton Mifflin was represented in the transaction by Cushman & Wakefield. The cap rate was nearly 7.8%.
The textbook and educational publisher has signed a 12-year lease for the building, which was constructed in the late 1970s with a series of additions in the 1980s and a small addition in the 1990s. The lease rate is $3.90 per sf, net, with escalations each year, says Joe Cosenza, vice chairman of the Inland Real Estate Group of Cos. Houghton Mifflin only has two distribution centers, with the other being in Indiana. The Indiana facility distributes college textbooks while the Geneva facility distributes textbooks for students in elementary and secondary schools, which is the more profitable of the two areas of the company, Cosenza says. Sphere: Related Content
Inland Real Estate Exchange Corp., based in Oak Brook, has acquired a distribution center at 1900 S. Batavia Ave. The sales price was $25.8 million. The 513,512-sf building was acquired from Boston-based Houghton Mifflin Co. in a sale-leaseback.
Inland Real Estate Acquisitions Inc. negotiated the sale on behalf of Inland Real Estate Exchange Corp., both of which are affiliates of Inland Real Estate Group of Cos. Inc. Houghton Mifflin was represented in the transaction by Cushman & Wakefield. The cap rate was nearly 7.8%.
The textbook and educational publisher has signed a 12-year lease for the building, which was constructed in the late 1970s with a series of additions in the 1980s and a small addition in the 1990s. The lease rate is $3.90 per sf, net, with escalations each year, says Joe Cosenza, vice chairman of the Inland Real Estate Group of Cos. Houghton Mifflin only has two distribution centers, with the other being in Indiana. The Indiana facility distributes college textbooks while the Geneva facility distributes textbooks for students in elementary and secondary schools, which is the more profitable of the two areas of the company, Cosenza says. Sphere: Related Content
DHL Agrees to €160 Million Sale Leaseback of 26 Logistics Buildings Across France
Segro Web Site - November 15, 2007
Segro has agreed the purchase of a portfolio comprising 26 logistics buildings across France via a sale and leaseback with DHL. The total purchase costs are €159.8m and the portfolio will provide a total annual income of €11.2m representing an attractive net initial yield of 7.0%.
60% of the portfolio is in the Paris region, 10% in Lyon, 12% in Marseille and over 5% in Lille – with the remainder located in Toulouse, Bordeaux, Nantes, Orléans and Strasbourg.
The portfolio totals a built area of c210,000 m² on 70ha of land and comprises distribution and logistics centres used by the DHL Supply Chain and small cross-dock facilities used by DHL Express. All properties will be subject to new, nine year leases with DHL, 20 of them with 6 year break options and 6 of them with 3 year break options
9ha of land has been identified as having immediate development potential and it is estimated that a further 10,000m² of built area can be added in these locations. Sphere: Related Content
Segro has agreed the purchase of a portfolio comprising 26 logistics buildings across France via a sale and leaseback with DHL. The total purchase costs are €159.8m and the portfolio will provide a total annual income of €11.2m representing an attractive net initial yield of 7.0%.
60% of the portfolio is in the Paris region, 10% in Lyon, 12% in Marseille and over 5% in Lille – with the remainder located in Toulouse, Bordeaux, Nantes, Orléans and Strasbourg.
The portfolio totals a built area of c210,000 m² on 70ha of land and comprises distribution and logistics centres used by the DHL Supply Chain and small cross-dock facilities used by DHL Express. All properties will be subject to new, nine year leases with DHL, 20 of them with 6 year break options and 6 of them with 3 year break options
9ha of land has been identified as having immediate development potential and it is estimated that a further 10,000m² of built area can be added in these locations. Sphere: Related Content
Sunday, November 18, 2007
Penn West Petroleum HQ in Calgary Sold for €253 Million
Allianz Global Investors Web Site - November 16, 2007
In a joint venture with Homburg Investment Inc., the property fund company DEGI Deutsche Gesellschaft für Immobilienfonds mbH is making its first investment in Canada. For its DEGI INTERNATIONAL fund, the company acquires an office project featuring a total area of around 57,900 m² for around €253 mln.
The Homburg-Harris Centre.The “Homburg-Harris Centre” will upon completion rank among the most modern and advanced office buildings in the central business district (CBD) of Calgary. The seller of the office project is the international property and project development company Homburg Invest Inc., which as joint venture partner owns a 10 % holding in the newly established property holding company, and will by its Canadian subsidiary be handling local management for the property.
The Homburg-Harris Centre is situated in an extremely central location, Downtown Central Core, with very convenient links to urban public transport. The building complex consists of two linked office towers. The office space of 20,000 m² in the ten-story Tower 1 has already been let in its entirety to the energy company Penn West Petroleum Ltd. before the tower is completed in January 2008. The retailing areas on the ground floor will be used as a restaurant. For the 20-story Tower 2, completion is scheduled for 2009. The Homburg-Harris Centre also features underground parking for 400 cars. The purchase price will be paid in instalments as construction work progresses. Sphere: Related Content
In a joint venture with Homburg Investment Inc., the property fund company DEGI Deutsche Gesellschaft für Immobilienfonds mbH is making its first investment in Canada. For its DEGI INTERNATIONAL fund, the company acquires an office project featuring a total area of around 57,900 m² for around €253 mln.
The Homburg-Harris Centre.The “Homburg-Harris Centre” will upon completion rank among the most modern and advanced office buildings in the central business district (CBD) of Calgary. The seller of the office project is the international property and project development company Homburg Invest Inc., which as joint venture partner owns a 10 % holding in the newly established property holding company, and will by its Canadian subsidiary be handling local management for the property.
The Homburg-Harris Centre is situated in an extremely central location, Downtown Central Core, with very convenient links to urban public transport. The building complex consists of two linked office towers. The office space of 20,000 m² in the ten-story Tower 1 has already been let in its entirety to the energy company Penn West Petroleum Ltd. before the tower is completed in January 2008. The retailing areas on the ground floor will be used as a restaurant. For the 20-story Tower 2, completion is scheduled for 2009. The Homburg-Harris Centre also features underground parking for 400 cars. The purchase price will be paid in instalments as construction work progresses. Sphere: Related Content
Friday, November 16, 2007
Citigroup Nearing $1.6 Billion Sale Leaseback of Manhattan Office Tower
New York Post - November 14, 2007
Shorenstein Co. is slicing through complicated negotiations to sign a $1.6 billion contract to purchase 388 and 390 Greenwich St. from Citigroup, sources say. As we advised last week, Shorenstein was leading the pack of bidders for what would be one of the largest deals this year. Citi will be leasing back a chunk of the building for the next 15 years.
Shorenstein, which has investments in 125 Park Ave. and the Starrett-Lehigh Building on West 26th Street, declined to comment, as did Cushman & Wakefield's capital markets group, which has been leading the marketing efforts for Citi. Sphere: Related Content
Shorenstein Co. is slicing through complicated negotiations to sign a $1.6 billion contract to purchase 388 and 390 Greenwich St. from Citigroup, sources say. As we advised last week, Shorenstein was leading the pack of bidders for what would be one of the largest deals this year. Citi will be leasing back a chunk of the building for the next 15 years.
Shorenstein, which has investments in 125 Park Ave. and the Starrett-Lehigh Building on West 26th Street, declined to comment, as did Cushman & Wakefield's capital markets group, which has been leading the marketing efforts for Citi. Sphere: Related Content
Thursday, November 15, 2007
Cramo Mulls Sale Leaseback of Property Portfolio in Finland
PropertyEU - November 13, 2007
Cramo, a major service provider to the construction industry in Northern Europe, is investigating the possible disposal of its real estate assets in its home country Finland in a sale-and-leaseback transaction during the first half of 2008. In a statement on Tuesday, Cramo said it has given the assignment to Catella Corporate Finance. Cramo will continue as tenant in most of the facilities if a sale is arranged. 'At this stage it is difficult to estimate the profit impact of the possible sale,' Cramo said.
Cramo specialises in construction equipment rental and the sale and leasing of modular space from 260 outlets in 10 countries spread across the Nordic region and Central and Eastern Europe. The equipment hire business has 62 depots in Finland, while its modular hire division operates one office, two factories and 3,500 modules and site huts.
The company is listed on the OMX Nordic Exchange Helsinki and realised a consolidated operating profit of EUR 68.6 mln on sales of EUR 402 mln in 2006. Sphere: Related Content
Cramo, a major service provider to the construction industry in Northern Europe, is investigating the possible disposal of its real estate assets in its home country Finland in a sale-and-leaseback transaction during the first half of 2008. In a statement on Tuesday, Cramo said it has given the assignment to Catella Corporate Finance. Cramo will continue as tenant in most of the facilities if a sale is arranged. 'At this stage it is difficult to estimate the profit impact of the possible sale,' Cramo said.
Cramo specialises in construction equipment rental and the sale and leasing of modular space from 260 outlets in 10 countries spread across the Nordic region and Central and Eastern Europe. The equipment hire business has 62 depots in Finland, while its modular hire division operates one office, two factories and 3,500 modules and site huts.
The company is listed on the OMX Nordic Exchange Helsinki and realised a consolidated operating profit of EUR 68.6 mln on sales of EUR 402 mln in 2006. Sphere: Related Content
Sunday, November 11, 2007
Station Casinos Completes $3.1 Billion Sale Leaseback of Four Las Vegas Casinos
Sec Edgar Database - November 7, 2007
On November 7, 2007, Station Casinos, Inc., a Nevada corporation completed its merger with FCP Acquisition Sub, a Nevada corporation, as part of transaction to take the company private.
A number of wholly owned unrestricted direct and indirect subsidiaries of the Company entered into a mortgage loan in the principal amount of $2.050 billion and related mezzanine financings in an aggregate principal amount of $425.0 million (collectively, the “CMBS Loans”), for the purpose of financing the consideration payable to the Company’s stockholders upon consummation of the Merger.
Palace Station, Boulder Station, Sunset Station and Red Rock (collectively, the “CMBS Property”) were sold to the CMBS Borrower. Immediately following such sale, such CMBS Property was leased back to the Company pursuant to a master lease with an initial term of fifteen (15) years and extension terms for an aggregate of ten (10) additional years. The Company in turn subleased each parcel of the CMBS Property back to the Operating Subsidiaries, with each such sublease having the same term as the master lease.
Interest on the CMBS Loans is equal to the LIBOR plus 2.3% per annum. In addition to paying interest on outstanding principal under the CMBS Loans, the CMBS Borrower is required to reimburse the lenders for securitization and disbursement expenses in an amount not to exceed $2,730,000.
The maturity date of the CMBS Loans shall be November 12, 2009, subject to three one-year extensions. The CMBS Loans may be prepaid in whole or in part during the initial two-year term with an initial prepayment fee equal to 1.00% of the principal amount prepaid with the prepayment fee declining after the one year anniversary of the closing date on a straightline basis to 0.0% on the two-year anniversary of the closing date. The CMBS Borrower will be required to hedge the LIBOR interest rate such that it will not exceed 5.5%.
At the commencement of each Renewal Term, if any, Base Rent shall be reset to be equal to the greater of (a) the annual Fair Market Rental for the Leased Property and (b) one hundred ten percent (110%) of the annual aggregate interest payments payable on the then-existing Landlord’s Debt. Tenant shall maintain a reserve (“FF&E Reserve”) for capital and FF&E expenditures in the amount of 2.5% of gross revenues
The CMBS Loans include $740,000,000 for Boulder Station; $1,170,000,000 for the Charleston Station;$471,000,000 for the Palace Station; and $725,000,000 for the Sunset Station. Sphere: Related Content
On November 7, 2007, Station Casinos, Inc., a Nevada corporation completed its merger with FCP Acquisition Sub, a Nevada corporation, as part of transaction to take the company private.
A number of wholly owned unrestricted direct and indirect subsidiaries of the Company entered into a mortgage loan in the principal amount of $2.050 billion and related mezzanine financings in an aggregate principal amount of $425.0 million (collectively, the “CMBS Loans”), for the purpose of financing the consideration payable to the Company’s stockholders upon consummation of the Merger.
Palace Station, Boulder Station, Sunset Station and Red Rock (collectively, the “CMBS Property”) were sold to the CMBS Borrower. Immediately following such sale, such CMBS Property was leased back to the Company pursuant to a master lease with an initial term of fifteen (15) years and extension terms for an aggregate of ten (10) additional years. The Company in turn subleased each parcel of the CMBS Property back to the Operating Subsidiaries, with each such sublease having the same term as the master lease.
Interest on the CMBS Loans is equal to the LIBOR plus 2.3% per annum. In addition to paying interest on outstanding principal under the CMBS Loans, the CMBS Borrower is required to reimburse the lenders for securitization and disbursement expenses in an amount not to exceed $2,730,000.
The maturity date of the CMBS Loans shall be November 12, 2009, subject to three one-year extensions. The CMBS Loans may be prepaid in whole or in part during the initial two-year term with an initial prepayment fee equal to 1.00% of the principal amount prepaid with the prepayment fee declining after the one year anniversary of the closing date on a straightline basis to 0.0% on the two-year anniversary of the closing date. The CMBS Borrower will be required to hedge the LIBOR interest rate such that it will not exceed 5.5%.
At the commencement of each Renewal Term, if any, Base Rent shall be reset to be equal to the greater of (a) the annual Fair Market Rental for the Leased Property and (b) one hundred ten percent (110%) of the annual aggregate interest payments payable on the then-existing Landlord’s Debt. Tenant shall maintain a reserve (“FF&E Reserve”) for capital and FF&E expenditures in the amount of 2.5% of gross revenues
The CMBS Loans include $740,000,000 for Boulder Station; $1,170,000,000 for the Charleston Station;$471,000,000 for the Palace Station; and $725,000,000 for the Sunset Station. Sphere: Related Content
Saturday, November 10, 2007
S&P Rates C$1.23 Billion in Bonds Financing Canadian Govt Office Portfolio
TD Waterhouse Web Site - October 26, 2007
Standard & Poor's Ratings Services today assigned its preliminary 'AAA' senior secured debt rating to Royal Office Finance LP's C$1.23 billion senior secured amortizing bonds due October 2032.
The preliminary 'AAA' rating assigned to the issue of senior secured bonds by Royal Office Finance LP (ROFLP) reflects the creditworthiness of Public Works and Government Services Canada (PWGSC) and the federal government; the certainty of a rent stream fixed for 25 years; triple net leases with limited setoff and termination rights; bankruptcy-remote sole-purpose special purpose entities ( SPEs) established for the transaction; and a minimum 1x debt service cover through the 25-year term. These strengths are somewhat counterbalanced by the risk associated with refinancing C$425 million at term-end; and a minor amount of appropriation risk.
The bonds are secured by an absolute assignment of rent payments from PWGSC, a ministry of the federal government. Canadian Leaseback LP (CLLP) and ROFLP are formed by Larco Investments Ltd. PWGSC is the ministry of the federal government responsible for providing support to federal ministries and agencies by purchasing goods and services and providing office accommodation and technology services. Larco is a successful privately-owned real estate operator and developer based in British Columbia.
(Note: Private Placement Letter reports that the bonds were bought by 43 Canadian investors at 86 basis points over Canadian Government Treasurys, for a coupon of 5.209%.) Sphere: Related Content
Standard & Poor's Ratings Services today assigned its preliminary 'AAA' senior secured debt rating to Royal Office Finance LP's C$1.23 billion senior secured amortizing bonds due October 2032.
The preliminary 'AAA' rating assigned to the issue of senior secured bonds by Royal Office Finance LP (ROFLP) reflects the creditworthiness of Public Works and Government Services Canada (PWGSC) and the federal government; the certainty of a rent stream fixed for 25 years; triple net leases with limited setoff and termination rights; bankruptcy-remote sole-purpose special purpose entities ( SPEs) established for the transaction; and a minimum 1x debt service cover through the 25-year term. These strengths are somewhat counterbalanced by the risk associated with refinancing C$425 million at term-end; and a minor amount of appropriation risk.
The bonds are secured by an absolute assignment of rent payments from PWGSC, a ministry of the federal government. Canadian Leaseback LP (CLLP) and ROFLP are formed by Larco Investments Ltd. PWGSC is the ministry of the federal government responsible for providing support to federal ministries and agencies by purchasing goods and services and providing office accommodation and technology services. Larco is a successful privately-owned real estate operator and developer based in British Columbia.
(Note: Private Placement Letter reports that the bonds were bought by 43 Canadian investors at 86 basis points over Canadian Government Treasurys, for a coupon of 5.209%.) Sphere: Related Content
Friday, November 09, 2007
FNV Vastgoed Completes Sale Leaseback of Four Properties in the Netherlands
PropertyEU - November 5, 2007
FNV Vastgoed, the property unit of the largest union confederation in the Netherlands, has divested four offices with a total area of 27,500 m2 via a sale-and-lease-back transaction with UBS Global Asset Management. The financial details were not disclosed.
The offices are located in Amsterdam, Rotterdam, Groningen and Bergen op Zoom. FNV, headquartered in Amsterdam, is leasing back the real estate assets on a long-term basis. Epac Property Counselors advised FNV on the transaction, while UBS Global Asset Management was advised by Cushman & Wakefield. The FNV has 16 affiliated unions representing 1.2 million members. Sphere: Related Content
FNV Vastgoed, the property unit of the largest union confederation in the Netherlands, has divested four offices with a total area of 27,500 m2 via a sale-and-lease-back transaction with UBS Global Asset Management. The financial details were not disclosed.
The offices are located in Amsterdam, Rotterdam, Groningen and Bergen op Zoom. FNV, headquartered in Amsterdam, is leasing back the real estate assets on a long-term basis. Epac Property Counselors advised FNV on the transaction, while UBS Global Asset Management was advised by Cushman & Wakefield. The FNV has 16 affiliated unions representing 1.2 million members. Sphere: Related Content
Thursday, November 08, 2007
FBI Enters $60 Million Build-to-Suit for Regional HQ in Knoxville, TN
Knoxville News Sentinel - November 6, 2007
The FBI has outgrown downtown Knoxville and plans to leave in favor of a new, three-story regional field office in West Knoxville that will cost nearly $60 million.
Last month, a Cleveland, Ohio-area developer purchased 9 acres of land in the Dowell Springs Business Park off Middlebrook Pike that will eventually be home to a 99,130-square-foot office building for the agency.
In addition to employees from the Duncan building, the Dowell Springs office also will be home to employees from the FBI's Joint Terrorism Task Force that is in a West Knoxville office building and counter-intelligence agents in Oak Ridge. Lambert said the building should be finished in March 2009 and will house approximately 150 people.
The building will be developed by Carnegie Management and Development Corp. of Westlake, Ohio. According to a news release from the General Services Administration, the project has a 15-year lease value of $47.4 million.
Robert Berryhill, an executive with Carnegie, said his firm will own the building and the government will lease it for that amount. Berryhill said the total construction cost will be $58 million, and his firm plans to break ground in January. Sphere: Related Content
The FBI has outgrown downtown Knoxville and plans to leave in favor of a new, three-story regional field office in West Knoxville that will cost nearly $60 million.
Last month, a Cleveland, Ohio-area developer purchased 9 acres of land in the Dowell Springs Business Park off Middlebrook Pike that will eventually be home to a 99,130-square-foot office building for the agency.
In addition to employees from the Duncan building, the Dowell Springs office also will be home to employees from the FBI's Joint Terrorism Task Force that is in a West Knoxville office building and counter-intelligence agents in Oak Ridge. Lambert said the building should be finished in March 2009 and will house approximately 150 people.
The building will be developed by Carnegie Management and Development Corp. of Westlake, Ohio. According to a news release from the General Services Administration, the project has a 15-year lease value of $47.4 million.
Robert Berryhill, an executive with Carnegie, said his firm will own the building and the government will lease it for that amount. Berryhill said the total construction cost will be $58 million, and his firm plans to break ground in January. Sphere: Related Content
Bertelsmann Planning £50 Million Sale Leaseback of Publishing Division HQ in London
Estates Gazette has reported that media giant Bertelsmann has hired CB Richard Ellis to offer a 15-year sale leaseback of the 58,500 sq ft London headquarters of its Random House publishing division. The asking price is reportedly £50m which would provide a yield of around 5%.
Sphere: Related Content
Wednesday, November 07, 2007
Bendon Seeking $20 Million Sale Leaseback of Auckland HQ
National Business Review - November 5, 2007
Fashion underwear company Bendon's new head office in the Airport Oaks subdivision in Auckland goes on the market as a sale-and-leaseback this week with expectations of a $20 million-plus price tag.
Bendon moved its office from comparatively primitive quarters in the East Tamaki industrial zone when the new headquarters building was completed in 2004. The distribution centre followed early last year.
If the property achieves the anticipated price bracket, it will stamp an international seal of approval on the industrial estates around the airport, with a yield in the low 7 per cent range, firmer than the office market in the central business district was managing two years ago.
The Bendon site occupies 1.64ha and has three road frontages, backing on to Airpark Drive for warehouse access. The head office area of 2167sq m has a rental rate of $250 a square metre and a small part of it a rate of $255. The high-stud 3818sq m section of the warehouse has a rental rate of $110 a sq m. Including a fitout rental for the eight-and-a-half years of the initial Bendon term, total passing rent is just under $1.65 million. Bendon has two six-year rights of renewal. Sphere: Related Content
Fashion underwear company Bendon's new head office in the Airport Oaks subdivision in Auckland goes on the market as a sale-and-leaseback this week with expectations of a $20 million-plus price tag.
Bendon moved its office from comparatively primitive quarters in the East Tamaki industrial zone when the new headquarters building was completed in 2004. The distribution centre followed early last year.
If the property achieves the anticipated price bracket, it will stamp an international seal of approval on the industrial estates around the airport, with a yield in the low 7 per cent range, firmer than the office market in the central business district was managing two years ago.
The Bendon site occupies 1.64ha and has three road frontages, backing on to Airpark Drive for warehouse access. The head office area of 2167sq m has a rental rate of $250 a square metre and a small part of it a rate of $255. The high-stud 3818sq m section of the warehouse has a rental rate of $110 a sq m. Including a fitout rental for the eight-and-a-half years of the initial Bendon term, total passing rent is just under $1.65 million. Bendon has two six-year rights of renewal. Sphere: Related Content
Sunday, November 04, 2007
Pep Boys Agrees to $166 Million Sale Leaseback of 34 Stores Across US
Philadelphia Inquirer - November 3, 2007
Pep Boys - Manny, Moe and Jack, the Philadelphia automotive repair and parts chain, said yesterday it had agreed to sell and lease back 34 of its 592 retail stores.
The $166.2 million sale will reduce the company's debt, which is $560 million, Harry Yanowitz, chief financial officer, said. He said the properties being sold are at randomly selected locations across the nation.
The sale-and-lease-back program, announced last summer, is part of a turnaround strategy that began with the appointment in March of chief executive officer Jeffrey C. Rachor, 45. The chain, with locations in 36 states and $2.3 billion in annual revenue, has lost money in three of the last five years. Since June, its shares have fallen from a 52-week high of $22.49 to as low as $12.48.
The company was founded in 1921 in West Philadelphia. It grew rapidly, aided by Henry Ford's sale of Model T's without such essentials as headlamps - an effort by Ford to create an aftermarket industry that would promote and support automobiles. Two years after opening the Philadelphia store, two of the founders, Manny Rosenfeld and Moe Strauss, took a research trip in a Model T to Los Angeles, where they began acquiring properties. The company today owns properties, on both coasts and in major cities, that have increased greatly in value. It is seeking to convert that to cash to reduce its debt and fund change and growth.
When the pending deal closes later this month, the company will begin work on another batch of store sales. As a store is sold, it will be leased back for 15 years, with four five-year renewal options, Yanowitz said. No decision has been made on how many stores to sell or how far to reduce debt, Yanowitz said. Sphere: Related Content
Pep Boys - Manny, Moe and Jack, the Philadelphia automotive repair and parts chain, said yesterday it had agreed to sell and lease back 34 of its 592 retail stores.
The $166.2 million sale will reduce the company's debt, which is $560 million, Harry Yanowitz, chief financial officer, said. He said the properties being sold are at randomly selected locations across the nation.
The sale-and-lease-back program, announced last summer, is part of a turnaround strategy that began with the appointment in March of chief executive officer Jeffrey C. Rachor, 45. The chain, with locations in 36 states and $2.3 billion in annual revenue, has lost money in three of the last five years. Since June, its shares have fallen from a 52-week high of $22.49 to as low as $12.48.
The company was founded in 1921 in West Philadelphia. It grew rapidly, aided by Henry Ford's sale of Model T's without such essentials as headlamps - an effort by Ford to create an aftermarket industry that would promote and support automobiles. Two years after opening the Philadelphia store, two of the founders, Manny Rosenfeld and Moe Strauss, took a research trip in a Model T to Los Angeles, where they began acquiring properties. The company today owns properties, on both coasts and in major cities, that have increased greatly in value. It is seeking to convert that to cash to reduce its debt and fund change and growth.
When the pending deal closes later this month, the company will begin work on another batch of store sales. As a store is sold, it will be leased back for 15 years, with four five-year renewal options, Yanowitz said. No decision has been made on how many stores to sell or how far to reduce debt, Yanowitz said. Sphere: Related Content
Deutsche Woolworth Agrees to EUR 400 Million Sale Leaseback of 100 Stores in Germany
Trade News / Financial Times Deutschland - November 2, 2007
Argyll Partners, the UK investment firm, is acquiring Deutsche Woolworth, the German low-cost retailer, and intends to pass the outlets which the retailer actually owns, numbering around 100 and valued at around 400m euros in the 2005 balance sheet, to the US investment firm Cerberus, according to company sources. A sale-and-lease-back is reported to have been decided for several of the properties. The seller of the German company is the UK investment firm Electra.
Argyll has indicated that the sale will finance the restructuring of Deutsche Woolworth, through which a strengthening of operative business and a return to profitability are targeted. The German retailer, which operates around 340 branches in Germany and Austria, generated turnover of 1bn euros in 2005. Sector experts have expressed surprise that the operative business is being taken over alongside the property which, until now, has been regarded as the only valuable asset of the German business. Sphere: Related Content
Argyll Partners, the UK investment firm, is acquiring Deutsche Woolworth, the German low-cost retailer, and intends to pass the outlets which the retailer actually owns, numbering around 100 and valued at around 400m euros in the 2005 balance sheet, to the US investment firm Cerberus, according to company sources. A sale-and-lease-back is reported to have been decided for several of the properties. The seller of the German company is the UK investment firm Electra.
Argyll has indicated that the sale will finance the restructuring of Deutsche Woolworth, through which a strengthening of operative business and a return to profitability are targeted. The German retailer, which operates around 340 branches in Germany and Austria, generated turnover of 1bn euros in 2005. Sector experts have expressed surprise that the operative business is being taken over alongside the property which, until now, has been regarded as the only valuable asset of the German business. Sphere: Related Content
Saturday, November 03, 2007
Neurocrine Biosciences Enters $108 Million Sale Leaseback of San Diego HQ
Neurocrine Biosciences Web Site - November 1, 2007
Neurocrine Biosciences, Inc. (Nasdaq: NBIX) announced today that the Company has entered into a sale and leaseback agreement with Veralliance Properties for its real estate assets, with an expected closing date before year-end 2007. Total consideration to be received by Neurocrine for the properties is $108 million. Concurrently with the closing of the transaction, Neurocrine will lease back its corporate headquarters under a lease with a 10 year term. Neurocrine has certain options to repurchase all of the properties included in the transaction during the term of the lease. Under the terms of the asset purchase agreement, Neurocrine anticipates that it will receive cash of approximately $60 million net of fees, expenses and existing indebtedness.
"Owning the properties that Neurocrine occupies has been a highly profitable strategy for the Company and our shareholders, allowing us to benefit from the appreciation in the San Diego commercial real estate market," said Timothy P. Coughlin, Vice President and Chief Financial Officer of Neurocrine Biosciences. "Improving our strong financial position at this time in a non-dilutive manner provides us with the financial flexibility to advance our clinical and research programs and build equity in our pipeline."
Neurocrine Biosciences, Inc. is a product-based biopharmaceutical company focused on neurological and endocrine diseases and disorders. The product candidates address some of the largest pharmaceutical markets in the world including insomnia, anxiety, depression, endometriosis, irritable bowel syndrome, pain, and diabetes.
(NOTE: According to the just released 10-Q report, the property was sold at a 7.0% cap rate with 3% annual rental increases, subject to a 10 year net lease with landlord roof & structure risk. The purchase option is at the greater of market or the then escallated base rent capped at 6.75%.) Sphere: Related Content
Neurocrine Biosciences, Inc. (Nasdaq: NBIX) announced today that the Company has entered into a sale and leaseback agreement with Veralliance Properties for its real estate assets, with an expected closing date before year-end 2007. Total consideration to be received by Neurocrine for the properties is $108 million. Concurrently with the closing of the transaction, Neurocrine will lease back its corporate headquarters under a lease with a 10 year term. Neurocrine has certain options to repurchase all of the properties included in the transaction during the term of the lease. Under the terms of the asset purchase agreement, Neurocrine anticipates that it will receive cash of approximately $60 million net of fees, expenses and existing indebtedness.
"Owning the properties that Neurocrine occupies has been a highly profitable strategy for the Company and our shareholders, allowing us to benefit from the appreciation in the San Diego commercial real estate market," said Timothy P. Coughlin, Vice President and Chief Financial Officer of Neurocrine Biosciences. "Improving our strong financial position at this time in a non-dilutive manner provides us with the financial flexibility to advance our clinical and research programs and build equity in our pipeline."
Neurocrine Biosciences, Inc. is a product-based biopharmaceutical company focused on neurological and endocrine diseases and disorders. The product candidates address some of the largest pharmaceutical markets in the world including insomnia, anxiety, depression, endometriosis, irritable bowel syndrome, pain, and diabetes.
(NOTE: According to the just released 10-Q report, the property was sold at a 7.0% cap rate with 3% annual rental increases, subject to a 10 year net lease with landlord roof & structure risk. The purchase option is at the greater of market or the then escallated base rent capped at 6.75%.) Sphere: Related Content
Saturday, October 27, 2007
Jelmoli Cancels £1.4 Billion Sale Leaseback of 88 Retail Stores in Switzerland
Property Week - October 25, 2007
Delek Global Real Estate, a London-listed company with Israeli investor Igal Ahouvi, has pulled out of the £1.4bn purchase of Swiss department store Jelmoli’s property portfolio because of the turmoil in the financial markets.
In a statement to the LSE this morning Israel-based Delek said the price of the portfolio had not been adjusted to reflect the uncertainty in the global market. It has asked Jelmoli to drop the price to £1.27bn to £1.35bn in order to complete the deal – which was meant to sign on October 1.
The deal, comprising of 88 stores let to the Swiss retailer, would have been the largest ever portfolio sale in Switzerland with rent rolls around £47m a year increasing to around £75m in 2009 when the developments under way are completed. Sphere: Related Content
Delek Global Real Estate, a London-listed company with Israeli investor Igal Ahouvi, has pulled out of the £1.4bn purchase of Swiss department store Jelmoli’s property portfolio because of the turmoil in the financial markets.
In a statement to the LSE this morning Israel-based Delek said the price of the portfolio had not been adjusted to reflect the uncertainty in the global market. It has asked Jelmoli to drop the price to £1.27bn to £1.35bn in order to complete the deal – which was meant to sign on October 1.
The deal, comprising of 88 stores let to the Swiss retailer, would have been the largest ever portfolio sale in Switzerland with rent rolls around £47m a year increasing to around £75m in 2009 when the developments under way are completed. Sphere: Related Content
Thursday, October 25, 2007
Pierburg Completes Sale Leaseback Of Three Properties in Germany
PropertyEU - October 22, 2007
Natixis Capital Partners announced on Monday that it has bought three German industrial real estate sites in the western German city of Neuss from the automotive company Pierburg. The financial details were not disclosed. The properties provide a total lettable area of about 80,000 m2 and are earmarked for Naxitis' Captiva Capital Partners III fund. The assets have been leased back under terms of various lengths by Pierburg, which uses them for research & development, production, offices and storage, Natixis Capital Partners was advised by Freshfields Bruckhaus Deringer, PwC und URS. The seller was advised by Catella Corporate Finance. Sphere: Related Content
Natixis Capital Partners announced on Monday that it has bought three German industrial real estate sites in the western German city of Neuss from the automotive company Pierburg. The financial details were not disclosed. The properties provide a total lettable area of about 80,000 m2 and are earmarked for Naxitis' Captiva Capital Partners III fund. The assets have been leased back under terms of various lengths by Pierburg, which uses them for research & development, production, offices and storage, Natixis Capital Partners was advised by Freshfields Bruckhaus Deringer, PwC und URS. The seller was advised by Catella Corporate Finance. Sphere: Related Content
Sunday, October 21, 2007
Tiffany & Co. Completes £73 Million Sale Leaseback of Flagship Store in London
Tiffany & Co. Web Site - October 19, 2007
Tiffany & Co. (NYSE: TIF) reported today that it has sold the building housing its flagship store in London for the price of £73,000,000 (approximately $149,000,000 at the sale date) and simultaneously entered into a 15-year lease with two 10-year renewal options. Tiffany had acquired the building at 25 Old Bond Street and an adjoining building at 15 Albermarle Street in 2002 for a total cost of $43,000,000 (U.S. dollar equivalent at the acquisition date). The acquisition was made in order to combine the buildings, renovate and reconfigure the interior retail selling space; that work was completed in 2006, allowing the Company to complete this sale and leaseback as planned.
This transaction results in a deferred, pretax gain of approximately $73,000,000, which will be amortized in selling, general and administrative expenses over a 15-year period, and is not expected to have a significant effect on future earnings. The Company plans to use the proceeds from the sale for general corporate purposes.
Michael J. Kowalski, chairman and chief executive officer, said, "Since opening our flagship store in London in 1986, Tiffany has developed a substantial and highly successful presence in London. Combining the Old Bond Street and Albermarle Street properties into a spacious new store has generated sales growth beyond our expectations, and we had always planned to pursue a sale-leaseback transaction following the completion of construction. We now operate five stores in London, with a sixth opening next year, and continue to be excited about the growth potential we envision in that very important market. Sphere: Related Content
Tiffany & Co. (NYSE: TIF) reported today that it has sold the building housing its flagship store in London for the price of £73,000,000 (approximately $149,000,000 at the sale date) and simultaneously entered into a 15-year lease with two 10-year renewal options. Tiffany had acquired the building at 25 Old Bond Street and an adjoining building at 15 Albermarle Street in 2002 for a total cost of $43,000,000 (U.S. dollar equivalent at the acquisition date). The acquisition was made in order to combine the buildings, renovate and reconfigure the interior retail selling space; that work was completed in 2006, allowing the Company to complete this sale and leaseback as planned.
This transaction results in a deferred, pretax gain of approximately $73,000,000, which will be amortized in selling, general and administrative expenses over a 15-year period, and is not expected to have a significant effect on future earnings. The Company plans to use the proceeds from the sale for general corporate purposes.
Michael J. Kowalski, chairman and chief executive officer, said, "Since opening our flagship store in London in 1986, Tiffany has developed a substantial and highly successful presence in London. Combining the Old Bond Street and Albermarle Street properties into a spacious new store has generated sales growth beyond our expectations, and we had always planned to pursue a sale-leaseback transaction following the completion of construction. We now operate five stores in London, with a sixth opening next year, and continue to be excited about the growth potential we envision in that very important market. Sphere: Related Content
Casino Nearing EUR 650 Million Sale Leaseback of 274 Properties in France
PropertyEU - October 19, 2007
French retail company Casino plans to unlock the capital tied up in its food store properties that no longer offer strong development potential. The move, which marks a new phase in Casino's property management strategy, is aimed at funding projects in France and abroad. The company said that it will transfer 255 urban and semi-urban supermarket properties in France, representing a total of 170,000 m2 of retail sales area to a new vehicle called AEW Immocommercial.
AEW was one of the first five companies authorised by the French securities regulator (AMF) to operate as an 'OPCI' (property investment mutual fund) on 11 October. The group sees the OPCI as an opportunity to enhance the value of its property assets. OPCIs are the latest in the line of tax-friendly vehicles created in France to promote investment in property stocks, after the SCPIs (non-trading property investment companies) and SIICs (REIT-style structures). They are managed by independent portfolio management companies which must also be licensed by the AMF.
The investors in AEW Immocommercial will comprise a consortium of institutional investors managed by AEW Europe, and other investors, including Casino which will hold 10% to 18% of the vehicle's capital. The move follows the sale and leaseback of Casino's head office and warehouses in 2005 and 2006.
In another innovative move for retail property, the rents paid by Casino to AEW Immocommercial will be variable and calculated as a percentage of the stores' retail sales, without any guaranteed minimum and without any indexation on the French construction cost index, the company said. Averaging 3% of net retail sales, the total rent for 2008 will be around EUR 25 mln. The leases will be for an initial 12-year term, renewable four times. AEW Immocommercial will have initial assets of EUR 455 mln, including transfer taxes, of which 30% will be financed by a bank loan.
Saint-Etienne-based Casino said also that it has sold six hypermarket properties, seven supermarket properties and six warehouses on La Réunion Island to Generali for EUR 266 mln, including taxes. Casino said that it was to transfer the properties, which are owned by Vindemia, to a new vehicle, Immocio OPCI, which was also authorized by the AMF on 11 October. The company received then an offer from the Generali Group for Immocio's entire capital.
Vindemia will lease back the assets from Immocio under 9-year commercial leases with a renewal option. The initial rents would total about EUR 18 mln per year, representing around 2.5% of net sales for the hypermarkets and 1.6% for the supermarkets. The leases would be indexed on the French construction cost index. Vindemia will continue to own the land and the car parks on the hypermarket sites. The transaction will provide Vindemia with additional resources to speed up the development of its food retailing business and strengthen its market leadership.
Casino expects to complete the transactions before the end of the year. Sphere: Related Content
French retail company Casino plans to unlock the capital tied up in its food store properties that no longer offer strong development potential. The move, which marks a new phase in Casino's property management strategy, is aimed at funding projects in France and abroad. The company said that it will transfer 255 urban and semi-urban supermarket properties in France, representing a total of 170,000 m2 of retail sales area to a new vehicle called AEW Immocommercial.
AEW was one of the first five companies authorised by the French securities regulator (AMF) to operate as an 'OPCI' (property investment mutual fund) on 11 October. The group sees the OPCI as an opportunity to enhance the value of its property assets. OPCIs are the latest in the line of tax-friendly vehicles created in France to promote investment in property stocks, after the SCPIs (non-trading property investment companies) and SIICs (REIT-style structures). They are managed by independent portfolio management companies which must also be licensed by the AMF.
The investors in AEW Immocommercial will comprise a consortium of institutional investors managed by AEW Europe, and other investors, including Casino which will hold 10% to 18% of the vehicle's capital. The move follows the sale and leaseback of Casino's head office and warehouses in 2005 and 2006.
In another innovative move for retail property, the rents paid by Casino to AEW Immocommercial will be variable and calculated as a percentage of the stores' retail sales, without any guaranteed minimum and without any indexation on the French construction cost index, the company said. Averaging 3% of net retail sales, the total rent for 2008 will be around EUR 25 mln. The leases will be for an initial 12-year term, renewable four times. AEW Immocommercial will have initial assets of EUR 455 mln, including transfer taxes, of which 30% will be financed by a bank loan.
Saint-Etienne-based Casino said also that it has sold six hypermarket properties, seven supermarket properties and six warehouses on La Réunion Island to Generali for EUR 266 mln, including taxes. Casino said that it was to transfer the properties, which are owned by Vindemia, to a new vehicle, Immocio OPCI, which was also authorized by the AMF on 11 October. The company received then an offer from the Generali Group for Immocio's entire capital.
Vindemia will lease back the assets from Immocio under 9-year commercial leases with a renewal option. The initial rents would total about EUR 18 mln per year, representing around 2.5% of net sales for the hypermarkets and 1.6% for the supermarkets. The leases would be indexed on the French construction cost index. Vindemia will continue to own the land and the car parks on the hypermarket sites. The transaction will provide Vindemia with additional resources to speed up the development of its food retailing business and strengthen its market leadership.
Casino expects to complete the transactions before the end of the year. Sphere: Related Content
Friendly Ice Cream Completes Sale Leaseback of 160 Restaurants
MassLive.com - October 18, 2007
Friendly Ice Cream Corp. has sold its headquarters campus on Boston Road and 160 of its restaurants to subsidiaries of Realty Income Corp., a California-based company that specializes in buying retail properties and leasing them back to the original chains under long-term lease agreements. Most of the leases are repotedly for 40 years.
"This is not something that's uncommon," said James D. Sullivan, vice president for franchising and development at Friendly, yesterday. "This is really familiar in the restaurant industry. If you look at all the restaurant transactions recently, across a broad range of concepts, this is the norm. We had a number of properties encumbered with mortgages, and this was a way to eliminate some of that debt, through a sale-lease-back." The process is "part of the overall restructuring of the balance sheet for the company. It is more about securing our future for the long term," Sullivan said.
Friendly was acquired on Aug. 31 by an affiliate of Sun Capital Partners, a private equity firm based in Boca Raton, Fla., for $337.2 million. Systemwide, the company has completed sale-lease-back transactions on 160 restaurants since Sun Capital bought the company on Aug. 31. The company has 316 company restaurants and 196 franchised restaurants.
Most of the sales involve company-operated stores, Sullivan said, though a few franchise restaurants are on Friendly-owned property and a few were sold and leased back to the company. Sphere: Related Content
Friendly Ice Cream Corp. has sold its headquarters campus on Boston Road and 160 of its restaurants to subsidiaries of Realty Income Corp., a California-based company that specializes in buying retail properties and leasing them back to the original chains under long-term lease agreements. Most of the leases are repotedly for 40 years.
"This is not something that's uncommon," said James D. Sullivan, vice president for franchising and development at Friendly, yesterday. "This is really familiar in the restaurant industry. If you look at all the restaurant transactions recently, across a broad range of concepts, this is the norm. We had a number of properties encumbered with mortgages, and this was a way to eliminate some of that debt, through a sale-lease-back." The process is "part of the overall restructuring of the balance sheet for the company. It is more about securing our future for the long term," Sullivan said.
Friendly was acquired on Aug. 31 by an affiliate of Sun Capital Partners, a private equity firm based in Boca Raton, Fla., for $337.2 million. Systemwide, the company has completed sale-lease-back transactions on 160 restaurants since Sun Capital bought the company on Aug. 31. The company has 316 company restaurants and 196 franchised restaurants.
Most of the sales involve company-operated stores, Sullivan said, though a few franchise restaurants are on Friendly-owned property and a few were sold and leased back to the company. Sphere: Related Content
Nike Enters into Sale Leaseback of Two Distribution Centers in ME & NH
Womens Wear Daily - October 19, 2007
Nike Inc. is partnering with real estate firm CB Richard Ellis in a sale-leaseback of its Cole Haan and Nike Bauer facilities in Yarmouth, Maine, and Greenland, N.H. According to an internal statement from James Seuss, president and chief executive officer of Cole Haan, and Mark Duggan, president and ceo of Nike Bauer Hockey, the financial transaction would take physical assets off the balance sheet and convert them to cash, allowing further investment in core businesses. The companies will lease rather than own the properties going forward, akin to what the company does with its New York offices. There have been talks about the initiative for two years. Sphere: Related Content
Nike Inc. is partnering with real estate firm CB Richard Ellis in a sale-leaseback of its Cole Haan and Nike Bauer facilities in Yarmouth, Maine, and Greenland, N.H. According to an internal statement from James Seuss, president and chief executive officer of Cole Haan, and Mark Duggan, president and ceo of Nike Bauer Hockey, the financial transaction would take physical assets off the balance sheet and convert them to cash, allowing further investment in core businesses. The companies will lease rather than own the properties going forward, akin to what the company does with its New York offices. There have been talks about the initiative for two years. Sphere: Related Content
Saturday, October 20, 2007
Essent Completes Sale Leaseack of 9 Properties in the Netherlands
PropertyEU - October 18, 2007
Dutch energy company Essent has bought a real estate portfolio including nine office and business properties. The assets were acquired via a sale-and-leaseback transaction with a joint venture of Utrecht's Top Vastgoed Beleggingen and Stolwijk's Burgland Vastgoed. Financial details of the transaction have not been disclosed.
The portfolio involves some 62,000 m2 of space in buildings located in the Dutch cities of Roermond, Eindhoven, Den Bosch, Breda, Eemshaven, Emmen, Groningen, Leeuwarden en Hengelo. With the exception of Eindhoven, all the properties have been leased back to subsidiaries of Essent. DTZ Zadelhoff advised the energy company. Sphere: Related Content
Dutch energy company Essent has bought a real estate portfolio including nine office and business properties. The assets were acquired via a sale-and-leaseback transaction with a joint venture of Utrecht's Top Vastgoed Beleggingen and Stolwijk's Burgland Vastgoed. Financial details of the transaction have not been disclosed.
The portfolio involves some 62,000 m2 of space in buildings located in the Dutch cities of Roermond, Eindhoven, Den Bosch, Breda, Eemshaven, Emmen, Groningen, Leeuwarden en Hengelo. With the exception of Eindhoven, all the properties have been leased back to subsidiaries of Essent. DTZ Zadelhoff advised the energy company. Sphere: Related Content
Skechers Enters Build-to-Suit for Massive Warehouse Distribution Center in Los Angeles
Los Angeles Times - October 17, 2007
One of the country's largest warehouses will be built in Moreno Valley for Skechers USA Inc., the Manhattan Beach shoe manufacturer said Tuesday. Skechers has agreed to be the sole occupant of a 1.8-million-square-foot building it will use to distribute shoes across the United States and Canada. The rectangular building near the 215 and 60 freeways in Riverside County will be half a mile long.
"We believe this is the largest industrial lease by a single tenant under one roof ever in the United States," said real estate broker Darla Longo of CB Richard Ellis, the Los Angeles brokerage that represented both Skechers and landlord HF Logistics I in the transaction. HF Logistics, an affiliate of Moreno Valley industrial property developer Highland Fairview, should have the building ready by January 2009, said Paul Galliher, senior vice president of distribution for Skechers. It will consolidate operations now in five buildings in Ontario.
"Having everything all under one roof will obviously improve our efficiency," Galliher said. He said it would cost "well over $100 million" to build. The bulk of Skechers shoes are made in Asia and shipped through the ports of Los Angeles and Long Beach, Galliher said. It also has operations in Italy, Romania, Brazil and Mexico. At the new facility, shoes will be removed from shipping containers and placed on shelves as high as 42 feet. Robots will roam the aisles, pulling out pairs of shoes to fill orders from Skechers stores and other retailers.
It will take about 800 employees to operate the center, with the payroll swelling to about 1,100 during the peak back-to-school season, Galliher said. Sphere: Related Content
One of the country's largest warehouses will be built in Moreno Valley for Skechers USA Inc., the Manhattan Beach shoe manufacturer said Tuesday. Skechers has agreed to be the sole occupant of a 1.8-million-square-foot building it will use to distribute shoes across the United States and Canada. The rectangular building near the 215 and 60 freeways in Riverside County will be half a mile long.
"We believe this is the largest industrial lease by a single tenant under one roof ever in the United States," said real estate broker Darla Longo of CB Richard Ellis, the Los Angeles brokerage that represented both Skechers and landlord HF Logistics I in the transaction. HF Logistics, an affiliate of Moreno Valley industrial property developer Highland Fairview, should have the building ready by January 2009, said Paul Galliher, senior vice president of distribution for Skechers. It will consolidate operations now in five buildings in Ontario.
"Having everything all under one roof will obviously improve our efficiency," Galliher said. He said it would cost "well over $100 million" to build. The bulk of Skechers shoes are made in Asia and shipped through the ports of Los Angeles and Long Beach, Galliher said. It also has operations in Italy, Romania, Brazil and Mexico. At the new facility, shoes will be removed from shipping containers and placed on shelves as high as 42 feet. Robots will roam the aisles, pulling out pairs of shoes to fill orders from Skechers stores and other retailers.
It will take about 800 employees to operate the center, with the payroll swelling to about 1,100 during the peak back-to-school season, Galliher said. Sphere: Related Content
Tuesday, October 16, 2007
Mayer Brown Enters Long Term Lease for Washington, DC HQ
Washington Business Journal - October 16, 2007
Mayer Brown LP will move its headquarters to 1999 K St. NW, the Helmut Jahn-designed building currently under construction. The law firm, signed a 15-year lease on Tuesday, to occupy all of the building's office space -- 243,000 square feet -- as part of a consolidation and expansion of its D.C. operations. Mayer Brown expects to have 250 lawyers move into the space in the third quarter of 2009.
Mayer Brown began looking for space about 15 months ago. It wanted to consolidate its operations at 1909 K St. NW and Lafayette Center. The law firm was in late-stage negotiations to occupy about 245,000 square feet of space at 1000 Connecticut Ave. NW, which is to be redeveloped, but officials changed their minds.
Vornado/Charles E. Smith tore down the older office building at the corner of 20th and K streets to build a trophy space on that corridor. The company had started construction with no preleases signed. Sphere: Related Content
Mayer Brown LP will move its headquarters to 1999 K St. NW, the Helmut Jahn-designed building currently under construction. The law firm, signed a 15-year lease on Tuesday, to occupy all of the building's office space -- 243,000 square feet -- as part of a consolidation and expansion of its D.C. operations. Mayer Brown expects to have 250 lawyers move into the space in the third quarter of 2009.
Mayer Brown began looking for space about 15 months ago. It wanted to consolidate its operations at 1909 K St. NW and Lafayette Center. The law firm was in late-stage negotiations to occupy about 245,000 square feet of space at 1000 Connecticut Ave. NW, which is to be redeveloped, but officials changed their minds.
Vornado/Charles E. Smith tore down the older office building at the corner of 20th and K streets to build a trophy space on that corridor. The company had started construction with no preleases signed. Sphere: Related Content
Sunday, October 14, 2007
Royal Bank of Scotland Seeking £900 Million Sale Leaseback of UK Property Portfolio
Property Week - October 12, 2007
The Royal Bank of Scotland has secretly put a £900m portfolio of property up for sale to help fund its takeover of Dutch bank ABN Amro. Cushman & Wakefield is marketing the portfolio of sale-and-leaseback assets. It is the largest part of a £1.75bn raft of property sales to help fund the €71.1bn (£49.2bn) takeover, which went unconditional this week.
The £900m portfolio, codenamed Project Acorn, includes the Strand head office of the Queen’s bank, Coutts, Property Week can reveal. Among the other assets are RBS offices and bank branches at 1 Princes Street in Edinburgh and 28 Cavendish Square in London’s West End. The portfolio, which is three-quarters offices and a quarter high street bank branches, comprises 2.1m sq ft across 63 properties. It produces £47m a year in rent.
It is thought that RBS would consider providing debt for the potential bidder to ease the sale. The final bid deadline is expected in mid-November.
RBS has also put a third tranche of high street bank branches up for sale through Cushman & Wakefield, in a £200m package under the name of Liberty 3. It comprises about 150 freeholds and long leaseholds, totalling around 1.1m sq ft. RBS has sold two other Liberty portfolios since 2005 – the £100m Liberty portfolio and the £75m Liberty 2 to Joseph Ackerman.
The bank is also selling a £650m portfolio of four hotels that it had unsuccessfully tried to sell to Vector Hospitality. CB Richard Ellis Hotels advises on the sale, which includes the Waldorf Hilton and Cumberland hotels in London, the Park Inn at Heathrow and the Marriott Victoria & Albert in Manchester.
RBS would not comment on any of the sales. Sphere: Related Content
The Royal Bank of Scotland has secretly put a £900m portfolio of property up for sale to help fund its takeover of Dutch bank ABN Amro. Cushman & Wakefield is marketing the portfolio of sale-and-leaseback assets. It is the largest part of a £1.75bn raft of property sales to help fund the €71.1bn (£49.2bn) takeover, which went unconditional this week.
The £900m portfolio, codenamed Project Acorn, includes the Strand head office of the Queen’s bank, Coutts, Property Week can reveal. Among the other assets are RBS offices and bank branches at 1 Princes Street in Edinburgh and 28 Cavendish Square in London’s West End. The portfolio, which is three-quarters offices and a quarter high street bank branches, comprises 2.1m sq ft across 63 properties. It produces £47m a year in rent.
It is thought that RBS would consider providing debt for the potential bidder to ease the sale. The final bid deadline is expected in mid-November.
RBS has also put a third tranche of high street bank branches up for sale through Cushman & Wakefield, in a £200m package under the name of Liberty 3. It comprises about 150 freeholds and long leaseholds, totalling around 1.1m sq ft. RBS has sold two other Liberty portfolios since 2005 – the £100m Liberty portfolio and the £75m Liberty 2 to Joseph Ackerman.
The bank is also selling a £650m portfolio of four hotels that it had unsuccessfully tried to sell to Vector Hospitality. CB Richard Ellis Hotels advises on the sale, which includes the Waldorf Hilton and Cumberland hotels in London, the Park Inn at Heathrow and the Marriott Victoria & Albert in Manchester.
RBS would not comment on any of the sales. Sphere: Related Content
Ansbacher Seeking Sale Leaseback of London HQ
Property Week - October 12, 2007
Investment group Ansbacher plans to carry out a sale and leaseback of its 52,000 sq ft office at 2 London Bridge on London’s South Bank. It is offering a 25-year lease with a 20-year break with an annual income of around £2.2m, guaranteed by the Qatar National Bank. CB Richard Ellis is advising Ansbacher. Sphere: Related Content
Investment group Ansbacher plans to carry out a sale and leaseback of its 52,000 sq ft office at 2 London Bridge on London’s South Bank. It is offering a 25-year lease with a 20-year break with an annual income of around £2.2m, guaranteed by the Qatar National Bank. CB Richard Ellis is advising Ansbacher. Sphere: Related Content
Royal Bank of Scotland Plans $1.63 Billion Sale Leaseback of UK Property Portfolio
Reuters - October 12, 2007
The Royal Bank of Scotland (RBS.L) is looking to unlock capital from its UK property estate by selling 800 million pounds ($1.63 billion) of assets, a market source told Reuters on Friday.
An RBS spokeswoman said the sale was part of an ongoing programme, without confirming specific details. She declined to comment on a report in the Financial Times which said the bank would use proceeds from a sale to help finance its share of the acquisition of Dutch bank ABN AMRO.
The bank has appointed property services firm Cushman & Wakefield to co-ordinate the sale of around 60 properties in one of the biggest British corporate sale-and-leasebacks this year, the source said. The portfolio includes a landmark building on London's Strand which is currently occupied by its private banking arm Coutts.
The sale-and-leaseback office deal represents the latest phase in the bank's long-term strategy to maximise value from real estate assets on its balance sheet. "RBS constantly reviews its space requirements to ensure that our property assets remain relevant to the needs of our business and have completed two tranches of property sales in the past two years," the RBS spokeswoman said. "These new tranches are part of this ongoing programme," she added.
Earlier this month, the bank put a 650 million pound portfolio of UK hotel assets on the market in a bid to realise profits gained during a four-year UK property boom, which ended this summer. Sphere: Related Content
The Royal Bank of Scotland (RBS.L) is looking to unlock capital from its UK property estate by selling 800 million pounds ($1.63 billion) of assets, a market source told Reuters on Friday.
An RBS spokeswoman said the sale was part of an ongoing programme, without confirming specific details. She declined to comment on a report in the Financial Times which said the bank would use proceeds from a sale to help finance its share of the acquisition of Dutch bank ABN AMRO.
The bank has appointed property services firm Cushman & Wakefield to co-ordinate the sale of around 60 properties in one of the biggest British corporate sale-and-leasebacks this year, the source said. The portfolio includes a landmark building on London's Strand which is currently occupied by its private banking arm Coutts.
The sale-and-leaseback office deal represents the latest phase in the bank's long-term strategy to maximise value from real estate assets on its balance sheet. "RBS constantly reviews its space requirements to ensure that our property assets remain relevant to the needs of our business and have completed two tranches of property sales in the past two years," the RBS spokeswoman said. "These new tranches are part of this ongoing programme," she added.
Earlier this month, the bank put a 650 million pound portfolio of UK hotel assets on the market in a bid to realise profits gained during a four-year UK property boom, which ended this summer. Sphere: Related Content
Universal Technical Institute Completes $33 Million Sale Leaseback of Campus in Norwood, MA
Commercial Property News - October 12, 2007
Taking advantage of favorable market conditions, Universal Technical Institute Inc. completed a sale leaseback transaction on its Norwood, Mass., campus. The building and land were sold for $33 million to an undisclosed buyer.
The transaction resulted in an almost $500,000 gain that will be amortized over the lease term. Concurrent with the sale transaction, UTI entered into a long term lease with the purchaser for an initial term of 15 years with the option to extend for up to an additional 20 years. The transaction will enhance the company's cash position. UTI cut its staff and restructured sales functions recently, too. With this sale, all 10 UTI campuses are now being leased.
Located in the suburbs of Boston, the UTI Norwood campus benefits from the expansion of commercial real estate in the Boston area. Sphere: Related Content
Taking advantage of favorable market conditions, Universal Technical Institute Inc. completed a sale leaseback transaction on its Norwood, Mass., campus. The building and land were sold for $33 million to an undisclosed buyer.
The transaction resulted in an almost $500,000 gain that will be amortized over the lease term. Concurrent with the sale transaction, UTI entered into a long term lease with the purchaser for an initial term of 15 years with the option to extend for up to an additional 20 years. The transaction will enhance the company's cash position. UTI cut its staff and restructured sales functions recently, too. With this sale, all 10 UTI campuses are now being leased.
Located in the suburbs of Boston, the UTI Norwood campus benefits from the expansion of commercial real estate in the Boston area. Sphere: Related Content
Saturday, October 13, 2007
Tesco Offering EUR 120 Million Sale Leaseback of Warehouse in North Dublin
Calibre / Irish Times - October 13, 2007
Tesco Ireland is preparing to sell its newly-opened distribution warehouse in Donabate, north Co Dublin, for more than 120 million. Under the terms of the deal, Tesco would lease back the 46-acre property for 25 years.
The Donabate warehouse covers 780,000 sq ft and has 79 loading bays. The site also has 600 car-parking spaces, a fuel island and a vehicle wash and steam cleaner.
A document being circulated to investors states that the initial rent will be 7 million a year, with annual reviews linked to the consumer price index up to a cap of 3.5 per cent. The initial net yield will be 5.24 per cent for the new owner. This yield is projected to grow to 9.71 per cent if inflation runs at 2.5 per cent a year over the 25 years of the lease.
Tesco, which has a 26 per cent share of the Irish grocery market, has engaged DTZ Sherry Fitzgerald in Dublin and Morgan Williams in London to market the property. Under the terms of the deal Tesco would be entitled to extend its facilities there or construct new buildings without the requirement for landlord consent. Sphere: Related Content
Tesco Ireland is preparing to sell its newly-opened distribution warehouse in Donabate, north Co Dublin, for more than 120 million. Under the terms of the deal, Tesco would lease back the 46-acre property for 25 years.
The Donabate warehouse covers 780,000 sq ft and has 79 loading bays. The site also has 600 car-parking spaces, a fuel island and a vehicle wash and steam cleaner.
A document being circulated to investors states that the initial rent will be 7 million a year, with annual reviews linked to the consumer price index up to a cap of 3.5 per cent. The initial net yield will be 5.24 per cent for the new owner. This yield is projected to grow to 9.71 per cent if inflation runs at 2.5 per cent a year over the 25 years of the lease.
Tesco, which has a 26 per cent share of the Irish grocery market, has engaged DTZ Sherry Fitzgerald in Dublin and Morgan Williams in London to market the property. Under the terms of the deal Tesco would be entitled to extend its facilities there or construct new buildings without the requirement for landlord consent. Sphere: Related Content
Friday, October 12, 2007
BMW Signs 1.2 Million SF Build-to-Suit for Two US Distrubution Centers
Commercial Property News - October 10, 2007
Industrial property giant ProLogis has inked a deal with the U.S.-based arm of German automaker BMW to develop about 1.2 million square feet of distribution space in the United States. BMW of North America has already preleased the space.
One facility will be a distribution center for BMW in eastern Pennsylvania totaling 870,000 square feet, and another in suburban Chicago totaling 306,000 square feet. BMW will use the facilities for storage and handling of automotive and motorcycle parts, as well as accessories other auto-related items. Both facilities will be built according to the Leadership in Energy and Environmental Design (LEED) standards of the U.S. Green Building Council.
In addition, ProLogis has acquired a 252,000-square-foot distribution facility from BMW in Mt. Olive, N.J., in a sale-leaseback deal. BMW will continue to occupy the building, which serves as its Northeast distribution center for automotive and motorcycle spare parts, under a lease agreement with ProLogis until completion of the Pennsylvania facility.
The new facilities will support the automaker’s presence in this country, where it sold about 313,000 BMW, Mini and Rolls-Royce automobiles in 2006. Sphere: Related Content
Industrial property giant ProLogis has inked a deal with the U.S.-based arm of German automaker BMW to develop about 1.2 million square feet of distribution space in the United States. BMW of North America has already preleased the space.
One facility will be a distribution center for BMW in eastern Pennsylvania totaling 870,000 square feet, and another in suburban Chicago totaling 306,000 square feet. BMW will use the facilities for storage and handling of automotive and motorcycle parts, as well as accessories other auto-related items. Both facilities will be built according to the Leadership in Energy and Environmental Design (LEED) standards of the U.S. Green Building Council.
In addition, ProLogis has acquired a 252,000-square-foot distribution facility from BMW in Mt. Olive, N.J., in a sale-leaseback deal. BMW will continue to occupy the building, which serves as its Northeast distribution center for automotive and motorcycle spare parts, under a lease agreement with ProLogis until completion of the Pennsylvania facility.
The new facilities will support the automaker’s presence in this country, where it sold about 313,000 BMW, Mini and Rolls-Royce automobiles in 2006. Sphere: Related Content
Thursday, October 11, 2007
Newell Rubermaid HQ in Atlanta Sold for $100 Million
Wells REIT II to Be Majority Partner in JV for $100M Office Tower near Atlanta
Wells Real Estate Investment Trust II has teamed up again with Greenstone Properties, Granite Properties and Pope & Land Enterprises, agreeing to become the majority owner of Three Glenlake in suburban Atlanta. When completed in the second quarter of 2008, the $100 million, Class A office tower will become the new headquarters of Newell Rubbermaid.
The partners announced the joint venture today and said it will close upon completion of the 14-story, 355,000-square-foot building in Sandy Springs, Ga., which has been under construction since January. The amount Wells REIT II will pay for its majority stake was not released.
Newell Rubbermaid will be the only tenant to lease the property. The company has said it plans to consolidate three Atlanta area offices and will eventually have about 650 employees at Three Glenlake. Newell Rubbermaid will have a long-term lease for the property but the terms were not available today.
The property is located on Glenlake Parkway, near Abernathy Road and Georgia 400 in Atlanta’s Central Perimeter submarket. Greenstone, Granite, and Pope & Land also developed One Glenlake. They sold that 353,000-square-foot office property to Wells REIT II in 2004. Sphere: Related Content
Wells Real Estate Investment Trust II has teamed up again with Greenstone Properties, Granite Properties and Pope & Land Enterprises, agreeing to become the majority owner of Three Glenlake in suburban Atlanta. When completed in the second quarter of 2008, the $100 million, Class A office tower will become the new headquarters of Newell Rubbermaid.
The partners announced the joint venture today and said it will close upon completion of the 14-story, 355,000-square-foot building in Sandy Springs, Ga., which has been under construction since January. The amount Wells REIT II will pay for its majority stake was not released.
Newell Rubbermaid will be the only tenant to lease the property. The company has said it plans to consolidate three Atlanta area offices and will eventually have about 650 employees at Three Glenlake. Newell Rubbermaid will have a long-term lease for the property but the terms were not available today.
The property is located on Glenlake Parkway, near Abernathy Road and Georgia 400 in Atlanta’s Central Perimeter submarket. Greenstone, Granite, and Pope & Land also developed One Glenlake. They sold that 353,000-square-foot office property to Wells REIT II in 2004. Sphere: Related Content
Kendall College Planning Sale Leaseback of Chicago Campus
Crain's Chicago Business - October 9, 2007
Kendall College is putting up for sale its newly renovated campus on Goose Island, which it will lease back from the new buyer.
Kendall has occupied the 178,000-square-foot building at Halsted Street and Chicago Avenue since January 2005, when the college moved from Evanston after buying the property. The building will go on the market unpriced, Kendall says in a statement.
“We are conducting a sale/leaseback of the property as a function of our commitment to our mission,” Nivine Megahed, Kendall’s president, says in the statement. “We want to focus our energies on providing students with the finest education possible and will be utilizing our capital for growth of programs and students — not on real estate.” Kendall has hired CB Richard Ellis Inc. to market the property at 900 N. North Branch St. CB Richard Ellis’ Michael Caprile, a vice-chairman, is the listing broker.
The school, a private college that offers degrees in business, hospitality management, culinary arts and early childhood education, uses all but 15,000 square feet of the building that it leases out to several tenants. Kendall plans to lease the entire building from the new buyer and sublease to existing tenants. Sphere: Related Content
Kendall College is putting up for sale its newly renovated campus on Goose Island, which it will lease back from the new buyer.
Kendall has occupied the 178,000-square-foot building at Halsted Street and Chicago Avenue since January 2005, when the college moved from Evanston after buying the property. The building will go on the market unpriced, Kendall says in a statement.
“We are conducting a sale/leaseback of the property as a function of our commitment to our mission,” Nivine Megahed, Kendall’s president, says in the statement. “We want to focus our energies on providing students with the finest education possible and will be utilizing our capital for growth of programs and students — not on real estate.” Kendall has hired CB Richard Ellis Inc. to market the property at 900 N. North Branch St. CB Richard Ellis’ Michael Caprile, a vice-chairman, is the listing broker.
The school, a private college that offers degrees in business, hospitality management, culinary arts and early childhood education, uses all but 15,000 square feet of the building that it leases out to several tenants. Kendall plans to lease the entire building from the new buyer and sublease to existing tenants. Sphere: Related Content
Wednesday, October 10, 2007
SunTrust Bank Enters $375 Million Sale Leaseback of 208 Retail Bank Branches and 8 Office Buildings in 8 US States & DC
SEC Edgar Database - October 5, 2007
We anticipate purchasing fee simple interests in a portfolio of 208 single tenant retail banking facilities and eight office buildings collectively known as the SunTrust Bank Portfolio. SunTrust Bank is the principal banking subsidiary of SunTrust Banks, Inc., a financial holding company with its headquarters in Atlanta, Georgia. The properties contain approximately 1,149,131 aggregate gross leasable square feet and are located in eight states and the District of Columbia. We anticipate purchasing these properties from an unaffiliated third party, SunTrust Bank, for approximately $374.9 million in cash, and may later borrow monies using these properties as collateral. We have made an initial non-refundable deposit of $9.4 million against the purchase price. This deposit will be refunded to us if closing fails to occur by December 28, 2007 as a result of the seller’s breach of the purchase agreement.
SunTrust Bank will lease all of the retail banking facilities in the portfolio for a term of ten years, commencing in December 2007 and terminating in December 2017. SunTrust may renew each of these leases for an additional term of ten years, and then for six additional five-year terms. Each of the leases requires SunTrust Bank to pay all taxes, insurance and maintenance expenses from use of the property.
(NOTE: The annual base rent for each property is expected to increase 1.75% each year. The portfolio is expected to be acquired at approximately a 7.2% cap rate.) Sphere: Related Content
We anticipate purchasing fee simple interests in a portfolio of 208 single tenant retail banking facilities and eight office buildings collectively known as the SunTrust Bank Portfolio. SunTrust Bank is the principal banking subsidiary of SunTrust Banks, Inc., a financial holding company with its headquarters in Atlanta, Georgia. The properties contain approximately 1,149,131 aggregate gross leasable square feet and are located in eight states and the District of Columbia. We anticipate purchasing these properties from an unaffiliated third party, SunTrust Bank, for approximately $374.9 million in cash, and may later borrow monies using these properties as collateral. We have made an initial non-refundable deposit of $9.4 million against the purchase price. This deposit will be refunded to us if closing fails to occur by December 28, 2007 as a result of the seller’s breach of the purchase agreement.
SunTrust Bank will lease all of the retail banking facilities in the portfolio for a term of ten years, commencing in December 2007 and terminating in December 2017. SunTrust may renew each of these leases for an additional term of ten years, and then for six additional five-year terms. Each of the leases requires SunTrust Bank to pay all taxes, insurance and maintenance expenses from use of the property.
(NOTE: The annual base rent for each property is expected to increase 1.75% each year. The portfolio is expected to be acquired at approximately a 7.2% cap rate.) Sphere: Related Content
Atlas Cold Storage Completes $170.7 Million Sale Leaseback of 11 Cold Storage Facilities in Four US States
SEC Edgar Database - October 5, 2007
On September 28, 2007, we purchased fee simple interests in a portfolio of eleven cold storage facilities collectively known as the Atlas Cold Storage Portfolio. The properties contain approximately 1.9 million aggregate gross leasable square feet located in four states. We purchased this portfolio from unaffiliated third parties, Atlas Cold Storage America, LLC and Atlas Cold Storage USA, Inc., for approximately $170.7 million. We funded the purchase price at closing entirely from our cash and equivalents. We may later borrow monies using these properties as collateral. We leased each of the properties to the sellers’ affiliate, Atlas Cold Storage Company, for terms ranging from ten to twenty years pursuant to leases that require the lessee to pay all taxes, insurance and maintenance expenses from use of the property.
(NOTE: The annual base rent for each property increases by 1.75% each year. Each lease may be extended for four additional five-year terms. The portfolio was acquired at approximately a 7.2% cap rate.) Sphere: Related Content
On September 28, 2007, we purchased fee simple interests in a portfolio of eleven cold storage facilities collectively known as the Atlas Cold Storage Portfolio. The properties contain approximately 1.9 million aggregate gross leasable square feet located in four states. We purchased this portfolio from unaffiliated third parties, Atlas Cold Storage America, LLC and Atlas Cold Storage USA, Inc., for approximately $170.7 million. We funded the purchase price at closing entirely from our cash and equivalents. We may later borrow monies using these properties as collateral. We leased each of the properties to the sellers’ affiliate, Atlas Cold Storage Company, for terms ranging from ten to twenty years pursuant to leases that require the lessee to pay all taxes, insurance and maintenance expenses from use of the property.
(NOTE: The annual base rent for each property increases by 1.75% each year. Each lease may be extended for four additional five-year terms. The portfolio was acquired at approximately a 7.2% cap rate.) Sphere: Related Content
Sunday, October 07, 2007
Siemens Italian HQ Sold for EUR 85 Million
PropertyEU - October 4, 2007
RAS Immobiliare has agreed with German electronics giant Siemens on the purchase of the company's Italian head office in Milan. The acquisition price comes to a total of EUR 85 mln. The office building was sold in a sale-and-lease-back transaction, news agency Radiocor said on Thursday. The property is earmarked for Antares, a closed-ended fund offering real estate exposure to institutional investors. Sphere: Related Content
RAS Immobiliare has agreed with German electronics giant Siemens on the purchase of the company's Italian head office in Milan. The acquisition price comes to a total of EUR 85 mln. The office building was sold in a sale-and-lease-back transaction, news agency Radiocor said on Thursday. The property is earmarked for Antares, a closed-ended fund offering real estate exposure to institutional investors. Sphere: Related Content
Saturday, October 06, 2007
Tufts Enters $116 Million Sale Leaseback of Two Medical Office Buildings in Boston
CoStar Group - October 3, 2007
Triple Net Properties LLC, on behalf of tenant-in-common investors, purchased the Biewend building at 260 Tremont St. and the Tupper building at 15 Kneeland St. in Boston from NEMC Real Estate Co. Inc. for $116 million, or approximately $460 per square foot. Concurrently, a 10-year triple net lease for 100% of both buildings was executed by Tufts-New England Medical Center in this sale-leaseback transaction.
The 14-story Biewend building has 154,500 square feet of medical-office space. The Class B office building was built in 1924 and was renovated in 1992. The Tupper Building, built in 1924 and renovated in 1983, is also a 14-story office-medical building containing 97,559 square feet. Both are on the Tufts-New England Medical center campus.
Triple Net Properties was self-represented. Philip G. Giunta of Grubb and Ellis represented NEMC Real Estate Co. Inc. Joseph A. Byers of Commercial Realty Capital arranged financing, which was provided by PNC Bank, National Association. Sphere: Related Content
Triple Net Properties LLC, on behalf of tenant-in-common investors, purchased the Biewend building at 260 Tremont St. and the Tupper building at 15 Kneeland St. in Boston from NEMC Real Estate Co. Inc. for $116 million, or approximately $460 per square foot. Concurrently, a 10-year triple net lease for 100% of both buildings was executed by Tufts-New England Medical Center in this sale-leaseback transaction.
The 14-story Biewend building has 154,500 square feet of medical-office space. The Class B office building was built in 1924 and was renovated in 1992. The Tupper Building, built in 1924 and renovated in 1983, is also a 14-story office-medical building containing 97,559 square feet. Both are on the Tufts-New England Medical center campus.
Triple Net Properties was self-represented. Philip G. Giunta of Grubb and Ellis represented NEMC Real Estate Co. Inc. Joseph A. Byers of Commercial Realty Capital arranged financing, which was provided by PNC Bank, National Association. Sphere: Related Content
Thursday, October 04, 2007
Matsushita Group Completes $735 Million Sale Leaseback 17 Industrial Properties in Japan
Commercial Property News - October 2, 2007
Distribution facility developer ProLogis has expanded its presence across Japan by 3.6 million square feet with the closing of a sale-leaseback deal with leading electronics company Matsushita Group. Denver-based ProLogis partnered with GIC Real Estate Pte. Ltd., the real estate investment division of the Government of Singapore Investment Corp., to acquire the group of 17 industrial properties for $735 million.
Ranging in size from 84,000 square feet to 831,000 square feet, most of the facilities are located in the thriving Tokyo and Osaka distribution markets; however there are also assets in various other parts of Japan, including Sapporo City and Fukuoka Prefecture. Matsushita Group subsidiary Matsushita Logistics will continue to occupy 15 of the warehouses under mostly mid- to long-term lease agreements with ProLogis. Of the remaining two properties, the facility in Morioka will continue to be occupied by a Japanese logistics company and the smaller unoccupied facility in Osaka will be repositioned under ProLogis' guidance. The benefits for Matsushita are the same as those for companies that engage in sale-leaseback deals in the United States. "They are able to fortify their balance sheet and take capital that is tied up in real estate and focus on core businesses," a ProLogis spokesperson told CPN today. Sphere: Related Content
Distribution facility developer ProLogis has expanded its presence across Japan by 3.6 million square feet with the closing of a sale-leaseback deal with leading electronics company Matsushita Group. Denver-based ProLogis partnered with GIC Real Estate Pte. Ltd., the real estate investment division of the Government of Singapore Investment Corp., to acquire the group of 17 industrial properties for $735 million.
Ranging in size from 84,000 square feet to 831,000 square feet, most of the facilities are located in the thriving Tokyo and Osaka distribution markets; however there are also assets in various other parts of Japan, including Sapporo City and Fukuoka Prefecture. Matsushita Group subsidiary Matsushita Logistics will continue to occupy 15 of the warehouses under mostly mid- to long-term lease agreements with ProLogis. Of the remaining two properties, the facility in Morioka will continue to be occupied by a Japanese logistics company and the smaller unoccupied facility in Osaka will be repositioned under ProLogis' guidance. The benefits for Matsushita are the same as those for companies that engage in sale-leaseback deals in the United States. "They are able to fortify their balance sheet and take capital that is tied up in real estate and focus on core businesses," a ProLogis spokesperson told CPN today. Sphere: Related Content
Wednesday, October 03, 2007
Eimskip Completes CDN$385 Million Sale Leaseback of Refrigerated Warehouse Facilities in US & Canada
Eimskip - October 1, 2007
Eimskip has completed the sale of 23 Public Refrigerated Warehouse Facilities located in the U.S. and Canada for gross proceeds of CDN$ 385 million. The net proceeds were used to repay the acquisition debt incurred in connection with the acquisition of Atlas Cold Storage, which was completed in November 2006.
In the last 12 months Eimskip has acquired both Atlas Cold Storage, which is the second largest cold storage company in North America and Versacold, which is the third largest cold storage company in North America. Eimskip has gained a leading position globally in cold storage operation with close to 200 cold storages in five continents.
The combined annual turnover of Atlas Cold Storage and Versacold is approx. CDN$ 1,200 million with 120 cold storages in operation in US, Canada, Argentina, Australia and New Zealand. Atlas Cold Storage and Versacold combined employ 8,500 people.
The total acquisition cost of Atlas Cold Storage and Versacold amounted to CDN$ 1,800 million. As part of their operations both of these companies had substantial real estate holdings in the US, Canada, Argentina, Australia and New Zealand. CBRE, an international real estate services company, has estimated that the total value of these properties to be approximately CDN$ 1,600 million.
Eimskip has now completed the sale of a quarter of these properties, and received gross proceeds of CDN$ 385 million. All of the sold facilities were leased back by Atlas Cold Storage for approximately 20 years. The net proceeds were used to repay the Canadian acquisition debt incurred in connection with the acquisition of Atlas Cold Storage, which was completed in November 2006.
Eimskip is currently working on the sale of the remaining properties.
Baldur Gudnason, CEO of Eimskip:
“We believe the sale of Atlas’ properties is an important milestone in further development of Atlas Cold Storage’s and Versacold’s operations. The operation is running according to plan, and with the sale of these properties, key management can focus on its key competencies, providing world class cold storage services to its customers. Lately, Eimskip has been building an effective transportation network in temperature controlled goods worldwide and currently controls a 13%-15% share of the global cold storage market.
The realized value of the properties now sold were above our expectations, especially in light of the difficult current situation in the financial markets. We view this excellent result as a very positive sign for our future plans. We have delivered on our plan to repay the acquisition debt incurred in the connection with the acquisition of Atlas Cold Storage and to focus Atlas Cold Storage on its core operating activities”.
RBC Capital Markets Real Estate Group acted for Eimskip in this matter and Toronto-based KingSett Capital worked with Eimskip to structure this transaction. Sphere: Related Content
Eimskip has completed the sale of 23 Public Refrigerated Warehouse Facilities located in the U.S. and Canada for gross proceeds of CDN$ 385 million. The net proceeds were used to repay the acquisition debt incurred in connection with the acquisition of Atlas Cold Storage, which was completed in November 2006.
In the last 12 months Eimskip has acquired both Atlas Cold Storage, which is the second largest cold storage company in North America and Versacold, which is the third largest cold storage company in North America. Eimskip has gained a leading position globally in cold storage operation with close to 200 cold storages in five continents.
The combined annual turnover of Atlas Cold Storage and Versacold is approx. CDN$ 1,200 million with 120 cold storages in operation in US, Canada, Argentina, Australia and New Zealand. Atlas Cold Storage and Versacold combined employ 8,500 people.
The total acquisition cost of Atlas Cold Storage and Versacold amounted to CDN$ 1,800 million. As part of their operations both of these companies had substantial real estate holdings in the US, Canada, Argentina, Australia and New Zealand. CBRE, an international real estate services company, has estimated that the total value of these properties to be approximately CDN$ 1,600 million.
Eimskip has now completed the sale of a quarter of these properties, and received gross proceeds of CDN$ 385 million. All of the sold facilities were leased back by Atlas Cold Storage for approximately 20 years. The net proceeds were used to repay the Canadian acquisition debt incurred in connection with the acquisition of Atlas Cold Storage, which was completed in November 2006.
Eimskip is currently working on the sale of the remaining properties.
Baldur Gudnason, CEO of Eimskip:
“We believe the sale of Atlas’ properties is an important milestone in further development of Atlas Cold Storage’s and Versacold’s operations. The operation is running according to plan, and with the sale of these properties, key management can focus on its key competencies, providing world class cold storage services to its customers. Lately, Eimskip has been building an effective transportation network in temperature controlled goods worldwide and currently controls a 13%-15% share of the global cold storage market.
The realized value of the properties now sold were above our expectations, especially in light of the difficult current situation in the financial markets. We view this excellent result as a very positive sign for our future plans. We have delivered on our plan to repay the acquisition debt incurred in the connection with the acquisition of Atlas Cold Storage and to focus Atlas Cold Storage on its core operating activities”.
RBC Capital Markets Real Estate Group acted for Eimskip in this matter and Toronto-based KingSett Capital worked with Eimskip to structure this transaction. Sphere: Related Content
Monday, October 01, 2007
Citibank Seeking Sale Leaseback on 47-Bank Branches in the New York City Metro Area
GlobeSt - October 1, 20007
Citigroup Global Markets Inc. is marketing a 47-branch sale-leaseback transaction through locally-based Newmark Knight Frank. The properties, which comprise 157,312 sf, are all in the metro New York area and include locations in Manhattan, the Bronx, Brooklyn, Queens, Staten Island, Westchester, Suffolk and Nassau counties.
Kenneth Zakin, senior managing director of NKF, will head the sales team, working in cooperation with Citigroup Global Markets, Citigroup’s investment banking division. “The buildings are being offered as a package, or as individual properties, or broken up into several smaller portfolios,” Zakin explains, “and each of them are owned and solely occupied by a long-term net-leased Citibank retail branch.”
Zakin tells GlobeSt.com that there is no asking price for the portfolio as the deal will be conducted through a bidding process. The initial bids are scheduled to be collected by Oct. 9.
This is the second such offering Citigroup and NKF has brought to the market this year. In June, the team closed on the sale of a 23-branch, 217,000-sf Citibank portfolio, with properties centered in the New York City metro area.
“This is another very attractive portfolio for investors seeking multiple assets or 1031 exchange, as the properties are diversified by location within the strongest growth market in the US--and fully occupied on a long-term basis by Citibank, a company which is rated AA+ by Standard & Poor’s and Aaa by Moody’s,” Zakin remarks.
Zakin says that the properties range in size from 2,000 sf to 8,000 sf. He also details to GlobeSt.com that there are 20 properties in Nassau, eight in Suffolk, three in Queens, four in Brooklyn, three in the Bronx, three in Statin Island, five in Westchester and one in Upper Manhattan. Sphere: Related Content
Citigroup Global Markets Inc. is marketing a 47-branch sale-leaseback transaction through locally-based Newmark Knight Frank. The properties, which comprise 157,312 sf, are all in the metro New York area and include locations in Manhattan, the Bronx, Brooklyn, Queens, Staten Island, Westchester, Suffolk and Nassau counties.
Kenneth Zakin, senior managing director of NKF, will head the sales team, working in cooperation with Citigroup Global Markets, Citigroup’s investment banking division. “The buildings are being offered as a package, or as individual properties, or broken up into several smaller portfolios,” Zakin explains, “and each of them are owned and solely occupied by a long-term net-leased Citibank retail branch.”
Zakin tells GlobeSt.com that there is no asking price for the portfolio as the deal will be conducted through a bidding process. The initial bids are scheduled to be collected by Oct. 9.
This is the second such offering Citigroup and NKF has brought to the market this year. In June, the team closed on the sale of a 23-branch, 217,000-sf Citibank portfolio, with properties centered in the New York City metro area.
“This is another very attractive portfolio for investors seeking multiple assets or 1031 exchange, as the properties are diversified by location within the strongest growth market in the US--and fully occupied on a long-term basis by Citibank, a company which is rated AA+ by Standard & Poor’s and Aaa by Moody’s,” Zakin remarks.
Zakin says that the properties range in size from 2,000 sf to 8,000 sf. He also details to GlobeSt.com that there are 20 properties in Nassau, eight in Suffolk, three in Queens, four in Brooklyn, three in the Bronx, three in Statin Island, five in Westchester and one in Upper Manhattan. Sphere: Related Content
Saturday, September 29, 2007
Citigroup Seeking $1.8 Billion Sale Leaseback of Manhattan Office Towers
Crain's New York - September 28, 2007
Citigroup Inc. is looking for a buyer for the former Travelers Group headquarters in lower Manhattan, which could fetch up to $1.8 billion, as part of a larger effort to reduce its real estate holdings. The Wall Street firm plans to lease back the space under a 13-to-15-year lease with 30-plus years of renewal options, said a Citi spokesoman.
The 40-story tower, comprising about 2.7 million square feet, is located about 10 blocks north of the World Trade Center site at 388 Greenwich St. It is being co-marketed with an adjacent 10-story property at 390 Greenwich St. Cushman & Wakefield is acting as the broker and Citis’ global markets unit is advising the company.
The leaseback strategy isn’t new for Citi. Over the past two years, the company has been trimming its real estate holdings, selling office buildings at 333 West 34th St. and 250 West St. Citi has leased back space in both properties. Sphere: Related Content
Citigroup Inc. is looking for a buyer for the former Travelers Group headquarters in lower Manhattan, which could fetch up to $1.8 billion, as part of a larger effort to reduce its real estate holdings. The Wall Street firm plans to lease back the space under a 13-to-15-year lease with 30-plus years of renewal options, said a Citi spokesoman.
The 40-story tower, comprising about 2.7 million square feet, is located about 10 blocks north of the World Trade Center site at 388 Greenwich St. It is being co-marketed with an adjacent 10-story property at 390 Greenwich St. Cushman & Wakefield is acting as the broker and Citis’ global markets unit is advising the company.
The leaseback strategy isn’t new for Citi. Over the past two years, the company has been trimming its real estate holdings, selling office buildings at 333 West 34th St. and 250 West St. Citi has leased back space in both properties. Sphere: Related Content
JPMorgan Chase Completes $300 Million Sale Leaseback of 52 U.S. Office Buildings and Bank Branches
Bloomberg - September 26, 2007
Brookfield Asset Management Inc.'s real estate unit bought 52 U.S. office buildings and bank branches from JPMorgan Chase & Co. for $300 million, adding to the 33 properties it bought from the U.S. bank last year.
The latest properties have 3.6 million square feet and are located in 14 states, Toronto-based Brookfield said today in a statement distributed by Marketwire.
They include the Elgin Card Services Building in suburban Chicago, the Sky Harbour Operations Center and two contiguous buildings in downtown Tempe, Arizona, and office buildings on Long Island and in Brooklyn, New York, Brookfield said.
Today's acquisition adds to the 5.3 million square feet of properties that Brookfield bought from JPMorgan Chase and affiliates last year for $460 million. The New York-based bank signed long-term leaseback agreements for "significant" portions of the space sold, Brookfield said.
The sale allowed New York-based JPMorgan Chase to get rid of vacant space it accumulated through mergers during the past several years and remove the responsibility of building ownership. Sphere: Related Content
Brookfield Asset Management Inc.'s real estate unit bought 52 U.S. office buildings and bank branches from JPMorgan Chase & Co. for $300 million, adding to the 33 properties it bought from the U.S. bank last year.
The latest properties have 3.6 million square feet and are located in 14 states, Toronto-based Brookfield said today in a statement distributed by Marketwire.
They include the Elgin Card Services Building in suburban Chicago, the Sky Harbour Operations Center and two contiguous buildings in downtown Tempe, Arizona, and office buildings on Long Island and in Brooklyn, New York, Brookfield said.
Today's acquisition adds to the 5.3 million square feet of properties that Brookfield bought from JPMorgan Chase and affiliates last year for $460 million. The New York-based bank signed long-term leaseback agreements for "significant" portions of the space sold, Brookfield said.
The sale allowed New York-based JPMorgan Chase to get rid of vacant space it accumulated through mergers during the past several years and remove the responsibility of building ownership. Sphere: Related Content
CH2M Hill Completes $138 Million Sale Leaseback of Denver HQ
Commercial Property News - September 27, 2007
Wells Real Estate Investment Trust II has purchased the world headquarters of CH2M Hill near Denver in a $138.5 million sale-leaseback, not including closing costs, according to the SEC filing for the transaction.
The Class A, four-building complex on South Jamaica Street in Englewood, Colo., has about 478,000 square feet of space. Built between 2002 and 2007, it is located on nearly 31 acres in the Meridian Business Center, which has direct access to the region’s light rail system.
CH2M Hill, a global full-service engineering, construction and operations firm, will pay $10 million in annual rent, according to the SEC document. The firm will occupy the entire four-building complex in the net-lease transaction that covers 10 years. CH2M Hill has the right to extend the lease for two periods of five or 10 years each, the SEC filing noted.
( The SEC filing states that the ten year $138.5 million ($290/sf) sale leaseback was done at a 7.25% cap with 1.75% annual bumps starting at $21.00/sf NNN.) Sphere: Related Content
Wells Real Estate Investment Trust II has purchased the world headquarters of CH2M Hill near Denver in a $138.5 million sale-leaseback, not including closing costs, according to the SEC filing for the transaction.
The Class A, four-building complex on South Jamaica Street in Englewood, Colo., has about 478,000 square feet of space. Built between 2002 and 2007, it is located on nearly 31 acres in the Meridian Business Center, which has direct access to the region’s light rail system.
CH2M Hill, a global full-service engineering, construction and operations firm, will pay $10 million in annual rent, according to the SEC document. The firm will occupy the entire four-building complex in the net-lease transaction that covers 10 years. CH2M Hill has the right to extend the lease for two periods of five or 10 years each, the SEC filing noted.
( The SEC filing states that the ten year $138.5 million ($290/sf) sale leaseback was done at a 7.25% cap with 1.75% annual bumps starting at $21.00/sf NNN.) Sphere: Related Content
Thursday, September 27, 2007
Bell Canada Enters C$125 Million Build-to-Suit Agreement for Ontario Office Tower
H&R REIT Web Site - September 25, 2007
H&R Real Estate Investment Trust (TSX: HR.UN) announced that it has exercised its purchase option for the Phase III expansion of Bell Canada’s office complex in Mississauga, Ontario. The REIT will fund the construction of the 348,000 square foot, state-of-the-art building, which is expected to be completed in the summer of 2009. The estimated total construction cost is $125 million and the project will generate an un-levered return of 7.6%.
H&R President and CEO Tom Hofstedter added, “We are pleased to continue our development program with Bell Canada. We completed construction of the first, 525,000 square foot phase of this office complex in 2002 and the second phase of 249,000 square feet in 2004. In keeping with our strategy of leasing premises to creditworthy tenants on a long-term basis, the Phase III expansion will have a 20-year lease, as was the case in the first two phases.” Sphere: Related Content
H&R Real Estate Investment Trust (TSX: HR.UN) announced that it has exercised its purchase option for the Phase III expansion of Bell Canada’s office complex in Mississauga, Ontario. The REIT will fund the construction of the 348,000 square foot, state-of-the-art building, which is expected to be completed in the summer of 2009. The estimated total construction cost is $125 million and the project will generate an un-levered return of 7.6%.
H&R President and CEO Tom Hofstedter added, “We are pleased to continue our development program with Bell Canada. We completed construction of the first, 525,000 square foot phase of this office complex in 2002 and the second phase of 249,000 square feet in 2004. In keeping with our strategy of leasing premises to creditworthy tenants on a long-term basis, the Phase III expansion will have a 20-year lease, as was the case in the first two phases.” Sphere: Related Content
Atlas Cold Storage Completes C$215 Million Sale Leaseback of 12 Rrefrigerated Distribution Facilities in Canada
H&R REIT Web Site - September 25, 2007
H&R Real Estate Investment Trust (TSX: HR.UN) (“H&R”) announced that it has acquired a portfolio of 12 refrigerated distribution facilities in six provinces totaling 1.7 million square feet, for approximately $215 million. The cold storage properties will be leased for a weighted average term of 19.3 years to Eimskip Atlas Canada Inc. The leases will be indemnified by hf Eimskipafelag Islands - an Icelandic, publicly listed company with a market cap of over USD$1 billion, and the largest North American refrigerated warehouse company.
H&R President and CEO Tom Hofstedter said, “This transaction will be highly accretive to the REIT. We have secured $161 million of first mortgage financing for a term of 10 years at an interest rate of 5.66% per annum. The REIT’s levered return on equity invested is expected to be in excess of 12%. Moreover, the acquisition of this nationwide portfolio further diversifies H&R’s income by type of asset and by geographic region.” Sphere: Related Content
H&R Real Estate Investment Trust (TSX: HR.UN) (“H&R”) announced that it has acquired a portfolio of 12 refrigerated distribution facilities in six provinces totaling 1.7 million square feet, for approximately $215 million. The cold storage properties will be leased for a weighted average term of 19.3 years to Eimskip Atlas Canada Inc. The leases will be indemnified by hf Eimskipafelag Islands - an Icelandic, publicly listed company with a market cap of over USD$1 billion, and the largest North American refrigerated warehouse company.
H&R President and CEO Tom Hofstedter said, “This transaction will be highly accretive to the REIT. We have secured $161 million of first mortgage financing for a term of 10 years at an interest rate of 5.66% per annum. The REIT’s levered return on equity invested is expected to be in excess of 12%. Moreover, the acquisition of this nationwide portfolio further diversifies H&R’s income by type of asset and by geographic region.” Sphere: Related Content
Monday, September 24, 2007
Mitchells & Butlers Halts £4.5 Billion Sale Leaseback Deal
The Guardian - September 18, 2007
Annual profits at Mitchells & Butlers, Britain's biggest pub operator, are to be almost entirely wiped out by a £200m accounting charge relating to a property deal wrecked by recent turmoil in the debt markets.
Early last month M&B took out hedges against long-term interest rate rises and long-term deflation, in the final stages of negotiations on the debt-financed property deal. The hedges were put in place in order to secure the most favourable terms for debt raising. But just as the deal was to be signed - creating a £4.5bn property joint venture with real estate entrepreneur Robert Tchenguiz - the debt markets ground to a halt and the project collapsed.
M&B said the timing of the credit crisis left the company without a property deal but saddled with related hedges that would translate into huge losses if closed out. Nigel Parson, an analyst at Evolution Securities, noted that the accounting loss was not a cash loss, and there was little likelihood of M&B being under pressure to close out the position for some time. "The 'mark-to-market' discipline will serve as an ongoing reminder to the market of how close M&B got to its deal and how savage the debt crisis is/was."
M&B reiterated its determination to resurrect the property joint venture once the debt markets stabilised. "The board continues to believe that substantial value can be released to shareholders through the creation ... of a dedicated property company structure and discussions are continuing with banks to implement a transaction on acceptable financing terms."
M&B announced in May that it planned a property joint venture with Mr Tchenguiz's investment vehicle, R20, to which it would sell and lease back about 1,300 pubs. The collapsed deal would have seen M&B and R20 each inject about £300m of equity into the property company, which would borrow the remaining £4bn required to acquire M&B's 1,300 pubs. Sphere: Related Content
Annual profits at Mitchells & Butlers, Britain's biggest pub operator, are to be almost entirely wiped out by a £200m accounting charge relating to a property deal wrecked by recent turmoil in the debt markets.
Early last month M&B took out hedges against long-term interest rate rises and long-term deflation, in the final stages of negotiations on the debt-financed property deal. The hedges were put in place in order to secure the most favourable terms for debt raising. But just as the deal was to be signed - creating a £4.5bn property joint venture with real estate entrepreneur Robert Tchenguiz - the debt markets ground to a halt and the project collapsed.
M&B said the timing of the credit crisis left the company without a property deal but saddled with related hedges that would translate into huge losses if closed out. Nigel Parson, an analyst at Evolution Securities, noted that the accounting loss was not a cash loss, and there was little likelihood of M&B being under pressure to close out the position for some time. "The 'mark-to-market' discipline will serve as an ongoing reminder to the market of how close M&B got to its deal and how savage the debt crisis is/was."
M&B reiterated its determination to resurrect the property joint venture once the debt markets stabilised. "The board continues to believe that substantial value can be released to shareholders through the creation ... of a dedicated property company structure and discussions are continuing with banks to implement a transaction on acceptable financing terms."
M&B announced in May that it planned a property joint venture with Mr Tchenguiz's investment vehicle, R20, to which it would sell and lease back about 1,300 pubs. The collapsed deal would have seen M&B and R20 each inject about £300m of equity into the property company, which would borrow the remaining £4bn required to acquire M&B's 1,300 pubs. Sphere: Related Content
HSBC Completes €138 Million Sale Leaseback of London Office Building
Europe Real Estate - September 21, 2007
PRUPIM has acquired 62 Park Street, the prominent HSBC office building located on the River Thames next to Tate Modern, in a £103.25-million (c. €138m) sale-and-lease-back deal. The building, which has been let back to HSBC Bank plc for a further 20 years on an annually indexed lease, comprises more than 160,000 ft² of newly refurbished office accommodation, which is set over six floors. PRUPIM purchased the building on behalf of one of its annuity funds, Prudential Retirement Income Limited, for an initial yield of 4.72%.
62 Park Street is a highly recognizable building on the south side of the River Thames surrounded by a number of landmarks including Tate Modern, The Millennium Bridge, The Globe Theatre and Borough Market.
Southwark has become an increasingly prominent office location as a consequence of the recent improvements to the Jubilee Line underground service, now connecting Bond Street to the west and Canary Wharf to the east.
Catella acted for PRUPIM and CBRE acted for HSBC Bank plc. Sphere: Related Content
PRUPIM has acquired 62 Park Street, the prominent HSBC office building located on the River Thames next to Tate Modern, in a £103.25-million (c. €138m) sale-and-lease-back deal. The building, which has been let back to HSBC Bank plc for a further 20 years on an annually indexed lease, comprises more than 160,000 ft² of newly refurbished office accommodation, which is set over six floors. PRUPIM purchased the building on behalf of one of its annuity funds, Prudential Retirement Income Limited, for an initial yield of 4.72%.
62 Park Street is a highly recognizable building on the south side of the River Thames surrounded by a number of landmarks including Tate Modern, The Millennium Bridge, The Globe Theatre and Borough Market.
Southwark has become an increasingly prominent office location as a consequence of the recent improvements to the Jubilee Line underground service, now connecting Bond Street to the west and Canary Wharf to the east.
Catella acted for PRUPIM and CBRE acted for HSBC Bank plc. Sphere: Related Content
Sainsbury Seeking £200 Million Sale Leaseback of Four Distribution Centers in UK
Property Week - September 21, 2007
Sainsbury’s is considering a £200m sale and leaseback of its distribution sheds. The retailer has approached six parties to see if they are interested in four regional distribution centres in the Midlands and the north of England. However, the credit crunch and the low 5% yield could put off bidders, although the 20-year leases could be attractive.
A source close to the deal said: "The people who could be interested in this are finding it difficult to raise money. But the sites are good, and long leases to Sainsbury’s make it more tempting." The parties are a mix of equity-rich and debt-driven buyers. There is no deadline. Sainsbury’s is keen to offload the sites so it can focus on running its supply chain.
Cushman & Wakefield is advising Sainsbury’s Sphere: Related Content
Sainsbury’s is considering a £200m sale and leaseback of its distribution sheds. The retailer has approached six parties to see if they are interested in four regional distribution centres in the Midlands and the north of England. However, the credit crunch and the low 5% yield could put off bidders, although the 20-year leases could be attractive.
A source close to the deal said: "The people who could be interested in this are finding it difficult to raise money. But the sites are good, and long leases to Sainsbury’s make it more tempting." The parties are a mix of equity-rich and debt-driven buyers. There is no deadline. Sainsbury’s is keen to offload the sites so it can focus on running its supply chain.
Cushman & Wakefield is advising Sainsbury’s Sphere: Related Content
Saturday, September 22, 2007
Old National Bank Agrees to $99.7 Million Sale leaseback of 25 Bank Branches
SEC Edgar Database - September 19, 2007
Old National Bank and ONB Insurance Group, Inc. (collectively, “Old National”), subsidiaries of Old National Bancorp (the “Company”), entered into a Purchase and Sale Agreement, dated September 19, 2007, to sell a portfolio of 25 of its banking properties and one insurance property (collectively, the “Properties”) to five limited liability companies (collectively, the “Buyers”). SunTrust Equity Funding, LLC is the sole member of each Buyer. The closing of the sale of the Properties occurred on September 19, 2007 contemporaneously with the execution and delivery of the Purchase and Sale Agreement.
Old National has entered into five lease agreements, each dated September 19, 2007 (the “Lease Agreements”), with the Buyers, whereby Old National has agreed to lease each of the Properties back from the Buyers for terms expiring September 30, 2031. Under each of the Lease Agreements, Old National has the right at its option to extend the term of the lease for four additional successive terms of five years each, upon specified terms and conditions. Old National is obligated to pay (on a monthly basis) aggregate base rents for the Properties in the aggregate annual amount of $9.0 million (i.e. a 9.0% cap rate) to the Buyers under the Lease Agreements through September 30, 2027; no rent is payable for the final four years of the initial 24-year term. For financial reporting purposes, the rents will be expensed ratably over the 24-year term at an annual rate of $7.5 million.
The Company anticipates that it will enter into a similar sale/leaseback transaction with SunTrust Equity Funding LLC in the fourth quarter of 2007 relating to approximately one trust property and 57 of its banking properties. Sphere: Related Content
Old National Bank and ONB Insurance Group, Inc. (collectively, “Old National”), subsidiaries of Old National Bancorp (the “Company”), entered into a Purchase and Sale Agreement, dated September 19, 2007, to sell a portfolio of 25 of its banking properties and one insurance property (collectively, the “Properties”) to five limited liability companies (collectively, the “Buyers”). SunTrust Equity Funding, LLC is the sole member of each Buyer. The closing of the sale of the Properties occurred on September 19, 2007 contemporaneously with the execution and delivery of the Purchase and Sale Agreement.
Old National has entered into five lease agreements, each dated September 19, 2007 (the “Lease Agreements”), with the Buyers, whereby Old National has agreed to lease each of the Properties back from the Buyers for terms expiring September 30, 2031. Under each of the Lease Agreements, Old National has the right at its option to extend the term of the lease for four additional successive terms of five years each, upon specified terms and conditions. Old National is obligated to pay (on a monthly basis) aggregate base rents for the Properties in the aggregate annual amount of $9.0 million (i.e. a 9.0% cap rate) to the Buyers under the Lease Agreements through September 30, 2027; no rent is payable for the final four years of the initial 24-year term. For financial reporting purposes, the rents will be expensed ratably over the 24-year term at an annual rate of $7.5 million.
The Company anticipates that it will enter into a similar sale/leaseback transaction with SunTrust Equity Funding LLC in the fourth quarter of 2007 relating to approximately one trust property and 57 of its banking properties. Sphere: Related Content
Wednesday, September 19, 2007
Canadian National Railway Company Agrees to C$355 Sale Leaseback of HQ & Central Station Complex in Montreal
Canadian National Railway Web Site - September 19, 2007
Canadian National Railway Company and Homburg Invest Inc. announced today that they have reached an agreement under which Homburg Invest will purchase the Central Station Complex (CSC) in Montreal and CN will leaseback its corporate headquarters building and Central Station railway passenger facilities for C$355 million. The transaction is expected to close by yearend.
Under the agreement, CN will lease back its 17-storey office headquarters building and Central Station railway passenger facilities on a long-term basis. Central Station includes the Grand Hall, train platforms and portions of the sub-track level. The property also has the potential for up to one million square feet of additional development.
Brookfield Financial acted as the exclusive advisor to CN in the transaction. Sphere: Related Content
Canadian National Railway Company and Homburg Invest Inc. announced today that they have reached an agreement under which Homburg Invest will purchase the Central Station Complex (CSC) in Montreal and CN will leaseback its corporate headquarters building and Central Station railway passenger facilities for C$355 million. The transaction is expected to close by yearend.
Under the agreement, CN will lease back its 17-storey office headquarters building and Central Station railway passenger facilities on a long-term basis. Central Station includes the Grand Hall, train platforms and portions of the sub-track level. The property also has the potential for up to one million square feet of additional development.
Brookfield Financial acted as the exclusive advisor to CN in the transaction. Sphere: Related Content
Monday, September 17, 2007
Jacobs Engineering HQ in Calgary Sold for €96 Million
Germany Real Estate - September 14, 2007:
The KanAm grundinvest Fonds has invested in Canada for the first time. The fund has acquired the Jacobs Building in Calgary which is currently under development. The building is situated in the Quarry Park area, which is being realized to the southeast of the city. After delivery, planned for the summer of 2008, the building with four floors and a basement will offer a total surface area of approximately 32,000 m². A total of 1,528 parking spaces are planned on the more than 90,000-m² site. The building has already been fully leased on a long-term basis to the Jacobs Engineering Group. The total investment costs are approximately CA$150 million (approx. €96 million).
The Jacobs Engineering Group is the second largest supplier of technical services worldwide and has 70 offices with over 40,000 employees in 12 countries. A leasing contract has been signed for a period of 15 years.
The Jacobs Building will be the first office building in Quarry Park. Calgary’s first Lifestyle & Business Park with offices, retail, hotels, industry and housing will be developed in this area. The park can benefit from the excellent available infrastructure via its location next to two important motorways. For 2012, delivery of a Light-Railway connection is planned from the center of Calgary to the international airport.
The decision for the acquisition was taken among other things because of the excellent economic parameters for the location. Alberta is the richest province of Canada. It is leading in comparison to the rest of Canada according to the 2006 statistics in terms of economic growth, job market development, income per capita, population and retail trade growth. Calgary possesses the highest concentration of head offices after Toronto countrywide. Sphere: Related Content
The KanAm grundinvest Fonds has invested in Canada for the first time. The fund has acquired the Jacobs Building in Calgary which is currently under development. The building is situated in the Quarry Park area, which is being realized to the southeast of the city. After delivery, planned for the summer of 2008, the building with four floors and a basement will offer a total surface area of approximately 32,000 m². A total of 1,528 parking spaces are planned on the more than 90,000-m² site. The building has already been fully leased on a long-term basis to the Jacobs Engineering Group. The total investment costs are approximately CA$150 million (approx. €96 million).
The Jacobs Engineering Group is the second largest supplier of technical services worldwide and has 70 offices with over 40,000 employees in 12 countries. A leasing contract has been signed for a period of 15 years.
The Jacobs Building will be the first office building in Quarry Park. Calgary’s first Lifestyle & Business Park with offices, retail, hotels, industry and housing will be developed in this area. The park can benefit from the excellent available infrastructure via its location next to two important motorways. For 2012, delivery of a Light-Railway connection is planned from the center of Calgary to the international airport.
The decision for the acquisition was taken among other things because of the excellent economic parameters for the location. Alberta is the richest province of Canada. It is leading in comparison to the rest of Canada according to the 2006 statistics in terms of economic growth, job market development, income per capita, population and retail trade growth. Calgary possesses the highest concentration of head offices after Toronto countrywide. Sphere: Related Content
Nomura Nearing £234 Million Sale Leaseback of London HQ
Property Week - September 14, 2007
Propinvest is in advanced talks to buy Japanese bank Nomura’s headquarters in the City of London. Propinvest, which owns properties across central London, is thought to be close to agreeing a sale and leaseback with Japan’s second-largest investment bank.
Nomura instructed Drivers Jonas to put its headquarters at 1 St Martin’s Le Grand near St Paul’s Cathedral on the market in May. The 275,000 sq ft building was marketed at £234m, which would reflect a 4.75% yield. The deal has been structured so that Nomura will take a 15-year leaseback on the building. Nomura will pay £11.75m annually, and the rent will increase by 3% every year.
The details of Maud’s financing of the purchase and the amount of equity he has injected have not been disclosed. There was speculation that the sale was faltering because of the credit crunch, but Nomura is thought to have offered to provide the debt to aid the deal.
Other organisations are considering similar types of transactions where debt is offered by the vendor to secure a deal. Media group Emap’s lending banks have indicated that they could offer a loan to potential buyers to aid the sale of the £1.9bn company.
News that Nomura has completed its sale will be a boon for the City investment market, which has slowed down. Yields have risen by 25 basis points since the beginning of the year. While some purchases are completing, some buildings in the City are still struggling to find buyers. Nomura’s decision to market its headquarters, which is home to 1,500 staff, was driven by its long-term operational strategy for its property portfolio.
It followed other large sale and leasebacks carried out by investment banks, such as Merrill Lynch, which sold its European headquarters in the City to GIC Real Estate in a £480m sale and leaseback. Sphere: Related Content
Propinvest is in advanced talks to buy Japanese bank Nomura’s headquarters in the City of London. Propinvest, which owns properties across central London, is thought to be close to agreeing a sale and leaseback with Japan’s second-largest investment bank.
Nomura instructed Drivers Jonas to put its headquarters at 1 St Martin’s Le Grand near St Paul’s Cathedral on the market in May. The 275,000 sq ft building was marketed at £234m, which would reflect a 4.75% yield. The deal has been structured so that Nomura will take a 15-year leaseback on the building. Nomura will pay £11.75m annually, and the rent will increase by 3% every year.
The details of Maud’s financing of the purchase and the amount of equity he has injected have not been disclosed. There was speculation that the sale was faltering because of the credit crunch, but Nomura is thought to have offered to provide the debt to aid the deal.
Other organisations are considering similar types of transactions where debt is offered by the vendor to secure a deal. Media group Emap’s lending banks have indicated that they could offer a loan to potential buyers to aid the sale of the £1.9bn company.
News that Nomura has completed its sale will be a boon for the City investment market, which has slowed down. Yields have risen by 25 basis points since the beginning of the year. While some purchases are completing, some buildings in the City are still struggling to find buyers. Nomura’s decision to market its headquarters, which is home to 1,500 staff, was driven by its long-term operational strategy for its property portfolio.
It followed other large sale and leasebacks carried out by investment banks, such as Merrill Lynch, which sold its European headquarters in the City to GIC Real Estate in a £480m sale and leaseback. Sphere: Related Content
Tuesday, September 11, 2007
Eircom Agrees to €40 Million Sale Leaseback of Network Management Centre in Dublin
Sunday Business Post - September 9, 2007
Investment firm Quinlan Private has agreed to buy Eircom’s network management centre in Citywest in west Dublin for about €40 million. The wealth management company has agreed a sale and leaseback deal for the premises, and the purchase price equates to a yield of around 4.5 per cent.
Eircom is likely to pay a rent of around €2 million a year for the network management centre which fronts onto the N7 and covers just under 6,900 square metres. There are 280 car-parking spaces which offer long-term redevelopment potential. Eircom has been selling off its property assets in recent years in order to help reduce debt.
Last December, it sold its new headquarters near Heuston Station for more than €190 million. The purchaser of that building was also Quinlan Private. Quinlan Private has more than €10 billion in assets under management. Sphere: Related Content
Investment firm Quinlan Private has agreed to buy Eircom’s network management centre in Citywest in west Dublin for about €40 million. The wealth management company has agreed a sale and leaseback deal for the premises, and the purchase price equates to a yield of around 4.5 per cent.
Eircom is likely to pay a rent of around €2 million a year for the network management centre which fronts onto the N7 and covers just under 6,900 square metres. There are 280 car-parking spaces which offer long-term redevelopment potential. Eircom has been selling off its property assets in recent years in order to help reduce debt.
Last December, it sold its new headquarters near Heuston Station for more than €190 million. The purchaser of that building was also Quinlan Private. Quinlan Private has more than €10 billion in assets under management. Sphere: Related Content
Saturday, September 08, 2007
Japan Air Lines Arranges $87 Million Sale Leaseback of Hanger Facilities in Japan
JCN Network / Jiji Press - September 5, 2007
Japan Airlines will procure more than 10 billion yen by selling its aircraft hangars in Narita, Haneda and other major Japanese airports by the end of September, JAL officials said Wednesday. The storage facilities will be leased back and the struggling airlines will continue to use them. JAL plans to spend the procured funds to repay interest-bearing debts and improve its financial health. JAL sold its head office building with a similar lease-back contract in 2004. It also sold affiliated hotels while maintaining their operations. Sphere: Related Content
Japan Airlines will procure more than 10 billion yen by selling its aircraft hangars in Narita, Haneda and other major Japanese airports by the end of September, JAL officials said Wednesday. The storage facilities will be leased back and the struggling airlines will continue to use them. JAL plans to spend the procured funds to repay interest-bearing debts and improve its financial health. JAL sold its head office building with a similar lease-back contract in 2004. It also sold affiliated hotels while maintaining their operations. Sphere: Related Content
Cartier's Paris HQ Sold for EUR 380 Million
PropertyEU - September 6, 2007
Germany's KanAm Grundinvest Fonds has acquired jeweller Cartier's head office in Paris for EUR 380 mln. The Cité du Retiro complex is located near the Élysée palace and provides some 21,000 m2 of space, distributed across four connected buildings on seven storeys. The German investment company declined to disclose the yield.
The building was bought by Cartier in 2002 and has since been extensively renovated. The complex has an underground parking lot as well as 260 parking spaces. It is entirely let to Cartier through 2014, with an option to extend. KanAm Grundinvest Fonds said the complex, which houses the company's international head office, was bought in an off-market transaction. Sphere: Related Content
Germany's KanAm Grundinvest Fonds has acquired jeweller Cartier's head office in Paris for EUR 380 mln. The Cité du Retiro complex is located near the Élysée palace and provides some 21,000 m2 of space, distributed across four connected buildings on seven storeys. The German investment company declined to disclose the yield.
The building was bought by Cartier in 2002 and has since been extensively renovated. The complex has an underground parking lot as well as 260 parking spaces. It is entirely let to Cartier through 2014, with an option to extend. KanAm Grundinvest Fonds said the complex, which houses the company's international head office, was bought in an off-market transaction. Sphere: Related Content
Friday, September 07, 2007
Tiffany Completes $328 Million Sale Leaseback of Tokyo Store
Bloomberg - September 5, 2007
Tiffany & Co., the jewelry retailer, may sell the chain's main London store after divesting its principal location in Tokyo.
"We have been talking about doing that for some time," Chief Financial Officer James Fernandez said today at a Goldman Sachs Group Inc. conference in New York. "It is reasonable to expect that this is happening sometime soon."
Billionaire Nelson Peltz, who owns a 5 percent stake in Tiffany, has urged the retailer to boost profit. Besides selling and leasing back its Tokyo store, Tiffany has agreed to sell its Little Switzerland Caribbean jewelry chain, raised its dividend for a second time this year and plans to distribute watches through other retailers starting in 2008.
The Tokyo store, in the Ginza district, was sold to Goldman Sachs for $328 million. That sale will result in an after-tax gain of 47 cents a share in the third quarter, while the store will be leased for 15 to 25 years, New York-based Tiffany said Aug. 30. Tiffany purchased the property in 2003 for approximately $140 million.
Tiffany shares have increased 29 percent this year. The world's second-largest luxury-jeweler, Tiffany has 172 stores and boutiques worldwide. Piaget watchmaker Cie. Financiere Richemont SA of Geneva, Switzerland, is the world's biggest seller of luxury jewelry. Sphere: Related Content
Tiffany & Co., the jewelry retailer, may sell the chain's main London store after divesting its principal location in Tokyo.
"We have been talking about doing that for some time," Chief Financial Officer James Fernandez said today at a Goldman Sachs Group Inc. conference in New York. "It is reasonable to expect that this is happening sometime soon."
Billionaire Nelson Peltz, who owns a 5 percent stake in Tiffany, has urged the retailer to boost profit. Besides selling and leasing back its Tokyo store, Tiffany has agreed to sell its Little Switzerland Caribbean jewelry chain, raised its dividend for a second time this year and plans to distribute watches through other retailers starting in 2008.
The Tokyo store, in the Ginza district, was sold to Goldman Sachs for $328 million. That sale will result in an after-tax gain of 47 cents a share in the third quarter, while the store will be leased for 15 to 25 years, New York-based Tiffany said Aug. 30. Tiffany purchased the property in 2003 for approximately $140 million.
Tiffany shares have increased 29 percent this year. The world's second-largest luxury-jeweler, Tiffany has 172 stores and boutiques worldwide. Piaget watchmaker Cie. Financiere Richemont SA of Geneva, Switzerland, is the world's biggest seller of luxury jewelry. Sphere: Related Content
Thames Water Completes £43 Million Sale Leaseback of UK Headquarters
Evening Post - September 5, 2007
Thames Water, the UK’s biggest water company, has agreed to a £43 million sale leaseback of it's landmark circular headquarters building on the banks of the River Thames. It is the first of a series of sales expected as Thames Water – under new ownership – carries out a review of all its Reading offices.
But the company is staying put at Clearwater Court, leasing back the building for £2 million a year on a 25-year lease. It is now owned by Standard Life Investment Funds Limited and estate agent Strutt & Parker acted for Thames Water.
The crescent-shaped concrete building with twin glass-clad spiral stairways has been the headquarters of Thames Water for the past seven years. It has 8,273.5 sq m of luxurious office accommodation with a central courtyard overlooking the river on Reading Bridge.
Strutt & Parker to dispose of the freehold of all our Reading offices with a long term lease back arrangement for Clearwater Court and other properties.” Thames Water has 4,000 employees and 13 million customers across London and the South East. It owns 20,000 acres over 5,000 sites. Sphere: Related Content
Thames Water, the UK’s biggest water company, has agreed to a £43 million sale leaseback of it's landmark circular headquarters building on the banks of the River Thames. It is the first of a series of sales expected as Thames Water – under new ownership – carries out a review of all its Reading offices.
But the company is staying put at Clearwater Court, leasing back the building for £2 million a year on a 25-year lease. It is now owned by Standard Life Investment Funds Limited and estate agent Strutt & Parker acted for Thames Water.
The crescent-shaped concrete building with twin glass-clad spiral stairways has been the headquarters of Thames Water for the past seven years. It has 8,273.5 sq m of luxurious office accommodation with a central courtyard overlooking the river on Reading Bridge.
Strutt & Parker to dispose of the freehold of all our Reading offices with a long term lease back arrangement for Clearwater Court and other properties.” Thames Water has 4,000 employees and 13 million customers across London and the South East. It owns 20,000 acres over 5,000 sites. Sphere: Related Content
Sunday, September 02, 2007
Carrefour to Sell 20% of Property Unit
New York Times - August 30, 2007
Carrefour, the French supermarket chain and the world’s second-biggest retailer, said Thursday that it planned to sell part of its real estate portfolio in an initial public offering, bowing to pressure from investors including the French billionaire Bernard Arnault.
The company will sell a 20 percent stake in its Carrefour property unit next year. The unit owns 280 superstores and 540 smaller supermarkets in Europe — 60 percent of Carrefour’s real estate.
More than five months ago, Mr. Arnault, the richest man in France and chairman of the fashion house Christian Dior, teamed up with Colony Capital, an American real estate investment firm, to acquire almost 10 percent of Carrefour, with an eye toward its real estate, valued at 24 billion euros (nearly $33 billion).
Carrefour, which is surpassed among retailers only by Wal-Mart, said Thursday that it expected the sale to raise about 3 billion euros ($4.1 billion). Combined with proceeds from divestments of stores in Portugal, Switzerland and other countries, it will help Carrefour buy back as much as 4.5 billion euros’ ($6.13 billion) worth of its own stock.
“It creates value for shareholders and it makes sense,” said Alexandre Iatrides, an analyst at Richelieu Finance in Paris. “Carrefour at the beginning didn’t like it, but more and more distribution companies are selling their real estate.” Sphere: Related Content
Carrefour, the French supermarket chain and the world’s second-biggest retailer, said Thursday that it planned to sell part of its real estate portfolio in an initial public offering, bowing to pressure from investors including the French billionaire Bernard Arnault.
The company will sell a 20 percent stake in its Carrefour property unit next year. The unit owns 280 superstores and 540 smaller supermarkets in Europe — 60 percent of Carrefour’s real estate.
More than five months ago, Mr. Arnault, the richest man in France and chairman of the fashion house Christian Dior, teamed up with Colony Capital, an American real estate investment firm, to acquire almost 10 percent of Carrefour, with an eye toward its real estate, valued at 24 billion euros (nearly $33 billion).
Carrefour, which is surpassed among retailers only by Wal-Mart, said Thursday that it expected the sale to raise about 3 billion euros ($4.1 billion). Combined with proceeds from divestments of stores in Portugal, Switzerland and other countries, it will help Carrefour buy back as much as 4.5 billion euros’ ($6.13 billion) worth of its own stock.
“It creates value for shareholders and it makes sense,” said Alexandre Iatrides, an analyst at Richelieu Finance in Paris. “Carrefour at the beginning didn’t like it, but more and more distribution companies are selling their real estate.” Sphere: Related Content
Wednesday, August 29, 2007
Eurochem Signs $61 Million Build to Suit of Business Park in Singapore
Channel News Asia - August 27, 2007
MacarthurCook Industrial REIT has made its first acquisition since listing on the Singapore Exchange. It is buying a business park complex in Jurong East from Eurochem Corporation for S$91 million ($61 million) in a sale and leaseback arrangement.
The acquisition, funded fully by debt, will increase the size of MacarthurCook's portfolio to S$407 million. Eurochem will sign a lease for 10 years with an option to extend for another five years. The lease will start from the date of completion, which is scheduled for December 2009.
Eurochem is a Singapore-based company operating in the petrochemical sector. Sphere: Related Content
MacarthurCook Industrial REIT has made its first acquisition since listing on the Singapore Exchange. It is buying a business park complex in Jurong East from Eurochem Corporation for S$91 million ($61 million) in a sale and leaseback arrangement.
The acquisition, funded fully by debt, will increase the size of MacarthurCook's portfolio to S$407 million. Eurochem will sign a lease for 10 years with an option to extend for another five years. The lease will start from the date of completion, which is scheduled for December 2009.
Eurochem is a Singapore-based company operating in the petrochemical sector. Sphere: Related Content
Thursday, August 23, 2007
Canadian Government Completes $1.64 Billion Sale Leaseback of 9 Office Buildings Across Canada
The Globe and Mail - August 21, 2007
The Canadian federal government has sold nine office properties to privately held Larco Investments Ltd., a Vancouver-based real-estate company, for $1.64 billion, under a 25 year sale leaseback agreement. The buildings are located in Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal.
Royal Bank of Canada and Bank of Montreal, the investment banks which ran the bid process, initially contacted 91 potential bidders, all of whom were required to be majority Canadian-owned.
Of the $1.644-billion purchase price, $1.567-billion will go to the government. Of this, RBC and BMO will each receive commissions of $5.7-million, according to a government official. There will also be up to $500,000 in expenses for the sale. The remaining $77-million of the sale price will be used to undertake a 10-year capital repair program, while the government will be responsible for other expenses, including maintenance, repairs and other building improvements.
The government has agreed to lease back the nine buildings for 25 years, with payment amounts rising in five-year increments. Lease payments will total $505.3-million over the 25 years, rising from $82.2-million in the first five years, to $122.1-million in years 20 to 25. (This reflects an initial rent of approximately $82 million per year, or a 5.25% cap rate, with increases of approximately 10% every five years). Sphere: Related Content
The Canadian federal government has sold nine office properties to privately held Larco Investments Ltd., a Vancouver-based real-estate company, for $1.64 billion, under a 25 year sale leaseback agreement. The buildings are located in Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal.
Royal Bank of Canada and Bank of Montreal, the investment banks which ran the bid process, initially contacted 91 potential bidders, all of whom were required to be majority Canadian-owned.
Of the $1.644-billion purchase price, $1.567-billion will go to the government. Of this, RBC and BMO will each receive commissions of $5.7-million, according to a government official. There will also be up to $500,000 in expenses for the sale. The remaining $77-million of the sale price will be used to undertake a 10-year capital repair program, while the government will be responsible for other expenses, including maintenance, repairs and other building improvements.
The government has agreed to lease back the nine buildings for 25 years, with payment amounts rising in five-year increments. Lease payments will total $505.3-million over the 25 years, rising from $82.2-million in the first five years, to $122.1-million in years 20 to 25. (This reflects an initial rent of approximately $82 million per year, or a 5.25% cap rate, with increases of approximately 10% every five years). Sphere: Related Content
Wednesday, August 15, 2007
Allianz Completes EUR 1.3 Billion Sale Leaseback of 7 Office Buildings in Germany
IVG Immobilien AG Web Site - August 13, 2007
IVG Immobilien AG, one of Europe’s major listed real estate companies, has acquired an office property portfolio from Allianz for a purchase price of about € 1.3 billion. The so-called “Core Portfolio” includes seven high-quality office properties in the cities of Frankfurt, Hamburg, Munich (3 properties) and Stuttgart (2 properties). The total rental floor space amounts to 441,000 square metres.
The properties have been fully let long term to Allianz. The agreed purchase price corresponds to a net initial yield of 5.3 per cent after incidental acquisition costs. Ownership of some of the properties will pass to IVG at the end of 2007, while in other cases ownership will pass at the beginning of 2008. Sphere: Related Content
IVG Immobilien AG, one of Europe’s major listed real estate companies, has acquired an office property portfolio from Allianz for a purchase price of about € 1.3 billion. The so-called “Core Portfolio” includes seven high-quality office properties in the cities of Frankfurt, Hamburg, Munich (3 properties) and Stuttgart (2 properties). The total rental floor space amounts to 441,000 square metres.
The properties have been fully let long term to Allianz. The agreed purchase price corresponds to a net initial yield of 5.3 per cent after incidental acquisition costs. Ownership of some of the properties will pass to IVG at the end of 2007, while in other cases ownership will pass at the beginning of 2008. Sphere: Related Content
Monday, August 13, 2007
Lloyd’s of London Building Offered for £320 Million
Property Week - August 10, 2007
One of the best-known office buildings in London is about to come to the market. Commerzbank subsidiary CLI Group, which initiates and manages closed-ended funds, is selling the distinctive Lloyd’s of London building, designed by Lord Rogers, with a price tag of around £320m. The annual income from the 310,000 sq ft building is around £17m and a sale would reflect a yield of around 5%.
The news comes at a time when a credit crisis in the financial markets and rising interest rates are causing some investors to reconsider property deals. Savills is advising the vendor and is thought to have already approached several parties seeking an off-market transaction. Sources say it is likely the building will be brought to the market more widely this autumn after the August lull.
The sale will attract interest from institutions as well as wealthy overseas investors given the solid covenant of the UK’s largest insurance company, its long lease, its status and its prime location in the City.
CLI, which holds the scheme in its CFB Fonds 154 fund, bought the building from fellow German open-ended fund manager Deka for £231m in 2004 with a £141m loan from Hypo Real Estate. Deka bought the building upon its completion in 1986 for £180m from insurer Lloyd’s in a purchase and leaseback, before selling it to CLI.
The Lloyd’s lease at the Leadenhall Street building, which is considered to be one of the best examples of modern architecture in the world, expires in 2021. It has one tenant break option within the lease agreement.
Despite apparent warning signs of a market slowdown, investor interest in the City and Midtown markets for well-situated and let buildings shows no sign of abating. Last month Invista Real Estate and Delancey sold their 350,000 sq ft Mid City Place in Midtown for around £330m to US fund manager Beacon Capital Partners at a yield of around 4.25%.
Last year GIC Real Estate, the government of Singapore’s property arm, bought the Merrill Lynch Financial Centre at 2 King Edward Street in the City in a £490m purchase and leaseback. The financial services company took a 15-year lease on the building. GIC’s president, Dr Seek Ngee Huat, said it had bought the building because it was a ‘compelling investment opportunity due to its high specifications and modern design, and the strength of Merrill Lynch’s commitment.’
The rise in the cost of finance and credit problems in some areas of the banking world means the sale of the Lloyd’s building may not attract many heavily debt-backed buyers. Sphere: Related Content
One of the best-known office buildings in London is about to come to the market. Commerzbank subsidiary CLI Group, which initiates and manages closed-ended funds, is selling the distinctive Lloyd’s of London building, designed by Lord Rogers, with a price tag of around £320m. The annual income from the 310,000 sq ft building is around £17m and a sale would reflect a yield of around 5%.
The news comes at a time when a credit crisis in the financial markets and rising interest rates are causing some investors to reconsider property deals. Savills is advising the vendor and is thought to have already approached several parties seeking an off-market transaction. Sources say it is likely the building will be brought to the market more widely this autumn after the August lull.
The sale will attract interest from institutions as well as wealthy overseas investors given the solid covenant of the UK’s largest insurance company, its long lease, its status and its prime location in the City.
CLI, which holds the scheme in its CFB Fonds 154 fund, bought the building from fellow German open-ended fund manager Deka for £231m in 2004 with a £141m loan from Hypo Real Estate. Deka bought the building upon its completion in 1986 for £180m from insurer Lloyd’s in a purchase and leaseback, before selling it to CLI.
The Lloyd’s lease at the Leadenhall Street building, which is considered to be one of the best examples of modern architecture in the world, expires in 2021. It has one tenant break option within the lease agreement.
Despite apparent warning signs of a market slowdown, investor interest in the City and Midtown markets for well-situated and let buildings shows no sign of abating. Last month Invista Real Estate and Delancey sold their 350,000 sq ft Mid City Place in Midtown for around £330m to US fund manager Beacon Capital Partners at a yield of around 4.25%.
Last year GIC Real Estate, the government of Singapore’s property arm, bought the Merrill Lynch Financial Centre at 2 King Edward Street in the City in a £490m purchase and leaseback. The financial services company took a 15-year lease on the building. GIC’s president, Dr Seek Ngee Huat, said it had bought the building because it was a ‘compelling investment opportunity due to its high specifications and modern design, and the strength of Merrill Lynch’s commitment.’
The rise in the cost of finance and credit problems in some areas of the banking world means the sale of the Lloyd’s building may not attract many heavily debt-backed buyers. Sphere: Related Content
Saturday, August 11, 2007
Konsortium Logistik Planning $74.5 Million Sale Leaseback of Warehouses in Malaysia
Business Times Online - August 9, 2007
Konsortium Logistik, Malaysia's biggest logistic provider for the local car industry, could return as much as RM120 million or 49 sen a share to shareholders as part of a restructuring exercise, JPMorgan said in a report. The US investment bank based its report on information obtained from the management of Konsortium, Malaysia's biggest logistic provider for the local car industry.
The report issued on Tuesday said Konsortium plans to adopt an asset-light strategy by selling most of its landed assets earmarked for future development in Malaysia and abroad. It also plans a sale and leaseback exercise for its warehouses.
These could raise as much as RM250 million ($74.5 million) for Konsortium and place it in a net cash position of RM150 million by year-end. The firm also hopes to institute a generous dividend policy by paying out all of its operating profit. "The complete streamlining of its operations will result in Konsortium only focusing on vendor supply chain management for the car sector and government project concessions," JPMorgan said.
Meanwhile, Konsortium also plans to reduce its capital expenditure by leasing some 200 new trucks in the future to replace its ageing fleet. "The future 200 new trucks will be leased and will not be on the balance sheet. The new leases are expected to generate a five-year payback period," the report said. Sphere: Related Content
Konsortium Logistik, Malaysia's biggest logistic provider for the local car industry, could return as much as RM120 million or 49 sen a share to shareholders as part of a restructuring exercise, JPMorgan said in a report. The US investment bank based its report on information obtained from the management of Konsortium, Malaysia's biggest logistic provider for the local car industry.
The report issued on Tuesday said Konsortium plans to adopt an asset-light strategy by selling most of its landed assets earmarked for future development in Malaysia and abroad. It also plans a sale and leaseback exercise for its warehouses.
These could raise as much as RM250 million ($74.5 million) for Konsortium and place it in a net cash position of RM150 million by year-end. The firm also hopes to institute a generous dividend policy by paying out all of its operating profit. "The complete streamlining of its operations will result in Konsortium only focusing on vendor supply chain management for the car sector and government project concessions," JPMorgan said.
Meanwhile, Konsortium also plans to reduce its capital expenditure by leasing some 200 new trucks in the future to replace its ageing fleet. "The future 200 new trucks will be leased and will not be on the balance sheet. The new leases are expected to generate a five-year payback period," the report said. Sphere: Related Content
Royal Bank of Scotland Agrees to Pre-Let of Bankside Offices in London
Easier Property - August 8, 2007
Land Securities Group PLC has announced that it has exchanged contracts with the Royal Bank of Scotland plc (“RBS”) for the pre-letting of the Bankside 2&3 development on London's Southbank, SE1.
RBS will take a 20 year lease occupying a total of 377,910 sq ft over the two buildings, with rental levels of £46.50 being achieved for the best space. This transaction completes the office space within the 940,000 sq ft mixed-use estate. Building 1, the Blue Fin Building, is occupied by IPC Media following its forward sale in May 2004.
Located behind Tate Modern, Bankside 123 has created a diverse and vibrant environment for the area’s expanding business community, retailers and residents. The trio of buildings set within interconnected public spaces will open up access from Southwark to the riverside.
CB Richard Ellis represented Land Securities and Drivers Jonas advised RBS. The retail element of the scheme is being marketed through CB Richard Ellis. Sphere: Related Content
Land Securities Group PLC has announced that it has exchanged contracts with the Royal Bank of Scotland plc (“RBS”) for the pre-letting of the Bankside 2&3 development on London's Southbank, SE1.
RBS will take a 20 year lease occupying a total of 377,910 sq ft over the two buildings, with rental levels of £46.50 being achieved for the best space. This transaction completes the office space within the 940,000 sq ft mixed-use estate. Building 1, the Blue Fin Building, is occupied by IPC Media following its forward sale in May 2004.
Located behind Tate Modern, Bankside 123 has created a diverse and vibrant environment for the area’s expanding business community, retailers and residents. The trio of buildings set within interconnected public spaces will open up access from Southwark to the riverside.
CB Richard Ellis represented Land Securities and Drivers Jonas advised RBS. The retail element of the scheme is being marketed through CB Richard Ellis. Sphere: Related Content
Friday, August 10, 2007
Restoration Hardware Enters Build to Suit Agreement for 800,000 SF Distribution Center
SEC Edgar Database - August 7, 2007
On August 7, 2007, Restoration Hardware, Inc. entered into a Lease Agreement, effective as of August 3, 2007, with Duke Realty Limited Partnership pursuant to which the Company will lease from the Landlord an approximately 800,000 square feet distribution facility in the Village of West Jefferson, Ohio.
The Leased Premises will be used primarily for fulfillment to the Company’s East Coast retail stores and its non-furniture direct-to-customer business. The Leased Premises will be constructed by the Landlord and is expected to be completed in June 2008. The term of the Lease is 15 years after completion of the Landlord’s construction of the Leased Premises. The Company has the right to extend the lease for three additional periods of five years each.
The annual rent under the Lease will be approximately $3.2 million per year for years one through five, approximately $3.5 million per year for years six through ten, and approximately $3.8 million per year for years eleven through fifteen. The Lease also provides the Company with certain options to expand the Leased Premises. Sphere: Related Content
On August 7, 2007, Restoration Hardware, Inc. entered into a Lease Agreement, effective as of August 3, 2007, with Duke Realty Limited Partnership pursuant to which the Company will lease from the Landlord an approximately 800,000 square feet distribution facility in the Village of West Jefferson, Ohio.
The Leased Premises will be used primarily for fulfillment to the Company’s East Coast retail stores and its non-furniture direct-to-customer business. The Leased Premises will be constructed by the Landlord and is expected to be completed in June 2008. The term of the Lease is 15 years after completion of the Landlord’s construction of the Leased Premises. The Company has the right to extend the lease for three additional periods of five years each.
The annual rent under the Lease will be approximately $3.2 million per year for years one through five, approximately $3.5 million per year for years six through ten, and approximately $3.8 million per year for years eleven through fifteen. The Lease also provides the Company with certain options to expand the Leased Premises. Sphere: Related Content
Wednesday, August 08, 2007
Vertex Completes $26 Million Sale Leaseback of HQ Near Philadelphia
Cityfeet / GlobeSt - August 6, 2007
The Westphal family, which owns Vertex Inc., a tax software company, has sold the company's headquarters, the Cassford Office Complex at 1041 Old Cassatt Rd., to Conshohocken-based Trinity Capital Advisors. At the close, Vertex inked a 10-year lease for the 131,000-sf, five building complex.
To fund the buy, TCA obtained a $22.5-million fixed-rate acquisition loan, arranged by Philadelphia-based BlueStone Real Estate Capital. Kris Wood, BlueStone’s managing director, secured the funding from JP Morgan. It has an 85% loan-to-cost ratio, which puts the price tag for the property at nearly $26.5 million, or just above $202 per sf.
Without disclosing the value of the Vertex lease agreement, Matthew McManus, chairman of BlueStone says that market rents in the area range between $19.50 per sf and $24 per sf. The Cassford complex was completed in 2001. Sphere: Related Content
The Westphal family, which owns Vertex Inc., a tax software company, has sold the company's headquarters, the Cassford Office Complex at 1041 Old Cassatt Rd., to Conshohocken-based Trinity Capital Advisors. At the close, Vertex inked a 10-year lease for the 131,000-sf, five building complex.
To fund the buy, TCA obtained a $22.5-million fixed-rate acquisition loan, arranged by Philadelphia-based BlueStone Real Estate Capital. Kris Wood, BlueStone’s managing director, secured the funding from JP Morgan. It has an 85% loan-to-cost ratio, which puts the price tag for the property at nearly $26.5 million, or just above $202 per sf.
Without disclosing the value of the Vertex lease agreement, Matthew McManus, chairman of BlueStone says that market rents in the area range between $19.50 per sf and $24 per sf. The Cassford complex was completed in 2001. Sphere: Related Content
Monday, August 06, 2007
HSBC Nearing £100 Million Sale Leaseback of Office Building in London
Property Week - August 3, 2007
PruPim is to carry out a purchase and leaseback of HSBC’s 62-76 Park Street in south London for more than £100m. HSBC put the 173,000 sq ft building, near the Tate Modern on London’s South Bank, on the market last month as part of its sale-and-leaseback programme to raise cash.
HSBC is taking a 20-year lease at £5.1m a year, and has an option to extend for five years. The sale follows CB Richard Ellis’s review of HSBC’s property portfolio, which resulted in the £1bn Canary Wharf headquarters sale and reflects a yield of 4.7%.
CB Richard Ellis advised HSBC; Catella acted for Prupim. Sphere: Related Content
PruPim is to carry out a purchase and leaseback of HSBC’s 62-76 Park Street in south London for more than £100m. HSBC put the 173,000 sq ft building, near the Tate Modern on London’s South Bank, on the market last month as part of its sale-and-leaseback programme to raise cash.
HSBC is taking a 20-year lease at £5.1m a year, and has an option to extend for five years. The sale follows CB Richard Ellis’s review of HSBC’s property portfolio, which resulted in the £1bn Canary Wharf headquarters sale and reflects a yield of 4.7%.
CB Richard Ellis advised HSBC; Catella acted for Prupim. Sphere: Related Content
Friday, August 03, 2007
Westinghouse Electric Enters $220 Million Build to Suit Near Pittsburgh
Cityfeet / GlobeSt - August 1, 2007
Details of the previously announced development of Westinghouse Electric Co.’s planned nuclear energy headquarters office campus--believed to be the largest class A build-to-suit in the state’s history--have been finalized. Norcross, GA-based Wells Real Estate Investment Trust II Inc. has acquired an 82-acre parcel in the Cranberry Office Park northeast of Pittsburgh. Mine Safety Appliance Co. owns the business park. On condition of anonymity, an area broker tells GlobeSt.com the price of the land was $14 million. Wells has an option on an adjacent 23-acre parcel that would allow expansion of up to 1.2 million sf.
Dallas-based Trammell Crow Real Estate Development & Investment Inc., now an independently operated subsidiary of CB Richard Ellis, is developing the three-building, 770,000-sf complex, which will be owned by Wells REIT II. Westinghouse has signed a 15-year lease for the facility under an agreement that begins with completion of the second phase of the project.
Phase one calls for a five-story, 440,000-sf central building to be completed in mid-2009, followed by a second phase containing two four-story buildings of approximately 160,000 sf each that will flank phase one. They are scheduled for occupancy in mid-2010. The construction cost for both phases is $180 million. Sphere: Related Content
Details of the previously announced development of Westinghouse Electric Co.’s planned nuclear energy headquarters office campus--believed to be the largest class A build-to-suit in the state’s history--have been finalized. Norcross, GA-based Wells Real Estate Investment Trust II Inc. has acquired an 82-acre parcel in the Cranberry Office Park northeast of Pittsburgh. Mine Safety Appliance Co. owns the business park. On condition of anonymity, an area broker tells GlobeSt.com the price of the land was $14 million. Wells has an option on an adjacent 23-acre parcel that would allow expansion of up to 1.2 million sf.
Dallas-based Trammell Crow Real Estate Development & Investment Inc., now an independently operated subsidiary of CB Richard Ellis, is developing the three-building, 770,000-sf complex, which will be owned by Wells REIT II. Westinghouse has signed a 15-year lease for the facility under an agreement that begins with completion of the second phase of the project.
Phase one calls for a five-story, 440,000-sf central building to be completed in mid-2009, followed by a second phase containing two four-story buildings of approximately 160,000 sf each that will flank phase one. They are scheduled for occupancy in mid-2010. The construction cost for both phases is $180 million. Sphere: Related Content
Kingfisher Completes £73 Million Sale Leaseback of Distribution Center in UK
Kingfisher plc Web Site - August 1, 2007
Kingfisher plc has agreed to sell its freehold property interest in B&Q's new 81,000 square metre (875,000 sq.ft) national distribution centre in Worksop, Nottinghamshire, to a private buyer for a total cash payment of £73 million.
The Worksop site, which was developed by B&Q, will be leased back at an open market rent payable monthly in advance and subject to five yearly index-linked reviews, with a cap. The lease allows B&Q significant operational flexibility. The disposal gives rise to a pre-tax exceptional gain of around £40 million. Kingfisher will use the proceeds to repay existing debt and invest in its worldwide store opening programme.
Duncan Tatton-Brown, Group Finance Director, said: "This is consistent with our policy of recycling property when economically attractive, with the aim of creating value for shareholders." Sphere: Related Content
Kingfisher plc has agreed to sell its freehold property interest in B&Q's new 81,000 square metre (875,000 sq.ft) national distribution centre in Worksop, Nottinghamshire, to a private buyer for a total cash payment of £73 million.
The Worksop site, which was developed by B&Q, will be leased back at an open market rent payable monthly in advance and subject to five yearly index-linked reviews, with a cap. The lease allows B&Q significant operational flexibility. The disposal gives rise to a pre-tax exceptional gain of around £40 million. Kingfisher will use the proceeds to repay existing debt and invest in its worldwide store opening programme.
Duncan Tatton-Brown, Group Finance Director, said: "This is consistent with our policy of recycling property when economically attractive, with the aim of creating value for shareholders." Sphere: Related Content
Thursday, August 02, 2007
Luby's to Consider Sale Leaseback of Restaurant Portfolio?
Yahoo! Finance - July 30, 2007
Investment adviser Ramius Capital Group LLC and affiliated funds have asked the chief executive of Luby's Inc. to consider a sale of the restaurant chain, according to a regulatory filing Monday with the Securities and Exchange Commission.
"Given the available sources of financing, we believe a private equity firm could purchase Luby's at the current market price with little or no equity consideration," wrote Ramius partner Jeffrey C. Smith in a letter to Luby's President and CEO Christopher Pappas. Smith said Luby's could attract a "significant premium in a competitive sale process."
As an alternative, Smith also proposed a sale and leaseback transaction along with a stock buyback and special dividend. Smith estimated that Luby's real estate is worth between $206 million and $265 million pretax in a sale and leaseback transaction.
Smith also said the involvement of Pappas and other Luby's officers in the Pappas Restaurants chain, which is privately owned by the CEO and his brother, is creating conflicts and distractions that prevent action to increase shareholder value at Luby's.
A Luby's spokesperson was not immediately available for comment.
Ramius and its affiliates own a 6.5 percent stake in Luby's and claim to be the restaurant chain's largest independent shareholder. Smith asked Pappas to retain a strategic adviser to help pursue one of the two options. Sphere: Related Content
Investment adviser Ramius Capital Group LLC and affiliated funds have asked the chief executive of Luby's Inc. to consider a sale of the restaurant chain, according to a regulatory filing Monday with the Securities and Exchange Commission.
"Given the available sources of financing, we believe a private equity firm could purchase Luby's at the current market price with little or no equity consideration," wrote Ramius partner Jeffrey C. Smith in a letter to Luby's President and CEO Christopher Pappas. Smith said Luby's could attract a "significant premium in a competitive sale process."
As an alternative, Smith also proposed a sale and leaseback transaction along with a stock buyback and special dividend. Smith estimated that Luby's real estate is worth between $206 million and $265 million pretax in a sale and leaseback transaction.
Smith also said the involvement of Pappas and other Luby's officers in the Pappas Restaurants chain, which is privately owned by the CEO and his brother, is creating conflicts and distractions that prevent action to increase shareholder value at Luby's.
A Luby's spokesperson was not immediately available for comment.
Ramius and its affiliates own a 6.5 percent stake in Luby's and claim to be the restaurant chain's largest independent shareholder. Smith asked Pappas to retain a strategic adviser to help pursue one of the two options. Sphere: Related Content
Auto Distribution Completes €85.3 Million Sale Leaseback of 51 Auto Service Centers In France
Business Immo - July 31, 2007
LaSalle Investment Management (LIM) has acquired, on behalf of the fund, LaSalle French Fund II, 51 Automobile Distribution (AD) centres, for €85.3 million. Purchased from RREEF, within the scope of a sale & leaseback operation, this deal follows LIM’s acquisition of Speedy centres of a few months ago. LIM has thus become the sector’s leading investor.
Colliers, and the consulting firms, LeBoeuf, Lamb, Greene & MacRae and Cheuvreux acted as advisers to LaSalle in the deal. Catella and the law firm, Freshfields acted as advisers to the seller. Sphere: Related Content
LaSalle Investment Management (LIM) has acquired, on behalf of the fund, LaSalle French Fund II, 51 Automobile Distribution (AD) centres, for €85.3 million. Purchased from RREEF, within the scope of a sale & leaseback operation, this deal follows LIM’s acquisition of Speedy centres of a few months ago. LIM has thus become the sector’s leading investor.
Colliers, and the consulting firms, LeBoeuf, Lamb, Greene & MacRae and Cheuvreux acted as advisers to LaSalle in the deal. Catella and the law firm, Freshfields acted as advisers to the seller. Sphere: Related Content
Wednesday, August 01, 2007
Carter Holt Harvey Completes $277 Million Sale Leaseback of Property Portfolio in New Zealand & Australia
egoli - July 30, 2007
Valad Property Group (VPG) announced it would acquire a portfolio of privately held retail depots and packaging plants for $277.3 million. The company said that the sale and leaseback arrangement provides Valad with strategically-located assets and long term income from a blue chip tenant.
The portfolio is operated by Carter Holt Harvey, which is a private company owned by New Zealand businessman Graeme Hart. The portfolio consists of 15 Carters retail warehouse depots in New Zealand, 10 packaging plants including five in Australia, and an office property in Auckland. The company said that five development sites located on the North Island of New Zealand are also included in the transaction. Sphere: Related Content
Valad Property Group (VPG) announced it would acquire a portfolio of privately held retail depots and packaging plants for $277.3 million. The company said that the sale and leaseback arrangement provides Valad with strategically-located assets and long term income from a blue chip tenant.
The portfolio is operated by Carter Holt Harvey, which is a private company owned by New Zealand businessman Graeme Hart. The portfolio consists of 15 Carters retail warehouse depots in New Zealand, 10 packaging plants including five in Australia, and an office property in Auckland. The company said that five development sites located on the North Island of New Zealand are also included in the transaction. Sphere: Related Content
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