PropertyEU - February 29, 2008
Fletcher Hotel Group, a subsidiary of the Hotel Management Group, said on Friday it has hired UK broker HVS Hodges Ward Elliot for the sale of its two and three-star hotel portfolio in the Netherlands. Fletcher, based in Vianen, said it plans to sell 23 of the 28 hotels it owns in the country through a sale-and-lease-back deal.
The group said that the move is aimed at funding its expansion strategy. Over the last four years, Fletcher has boosted its turnover by 40% thanks to 'autonomous growth and M&A activities'. The hotel chain is targeting a portfolio of 50 hotels in the Netherlands.
The portfolio comprises well-known assets such as Hotel Duinoord in Wassenaaar, De Malle Jan in Vierhouten, Hotel Erica in Berg en Dal and the largest hotel in Waddeneilanden, d’Amelander Kaap. Fletcher plans to lease back the hotels for a total EUR 7 mln per year.
London-based services firm HVS Hodges Ward Elliot has acted in several transactions in the Netherlands such as the sale of the SAS Radisson Hotel at Schiphol, and the Holiday Inn in Eindhoven.
Sphere: Related Content
Sunday, February 22, 2009
German State of Hesse Resumes EUR 400 Million Sale Leaseback of 35 Public Buildings
PropertyEU - July 7, 2008
The German state of Hesse is putting the Leo III property portfolio back on the market, Minister of Finance Karlheinz Weimar (CDU) told newspaper Financial Times Deutschland (FTD). Weimar said that the sale process has been resumed and that a deal is expected by the end of 2008. The German state aims to fetch about EUR 400mln for the portfolio, which consists of 35 public buildings. According to the FTD, the assets generate a net rent of about EUR 25mln. HSH Real Estate and Atisreal have been appointed to market the portfolio.
The German state initially put the assets on the market last year, but eventually halted attempts to arrange a sale and leaseback of the portfolio because the ongoing turbulence in the financial markets had left potential buyers unwilling or unable to meet the asking price of around EUR 400mln.
In November 2006, Austrian real estate company CA Immo acquired the Leo II portfolio from Hesse for about EUR 770mln in a sale-and-leaseback operation. The portfolio comprised 36 state-owned properties and 170 homes. Sphere: Related Content
The German state of Hesse is putting the Leo III property portfolio back on the market, Minister of Finance Karlheinz Weimar (CDU) told newspaper Financial Times Deutschland (FTD). Weimar said that the sale process has been resumed and that a deal is expected by the end of 2008. The German state aims to fetch about EUR 400mln for the portfolio, which consists of 35 public buildings. According to the FTD, the assets generate a net rent of about EUR 25mln. HSH Real Estate and Atisreal have been appointed to market the portfolio.
The German state initially put the assets on the market last year, but eventually halted attempts to arrange a sale and leaseback of the portfolio because the ongoing turbulence in the financial markets had left potential buyers unwilling or unable to meet the asking price of around EUR 400mln.
In November 2006, Austrian real estate company CA Immo acquired the Leo II portfolio from Hesse for about EUR 770mln in a sale-and-leaseback operation. The portfolio comprised 36 state-owned properties and 170 homes. Sphere: Related Content
Net Leased Travelodge Hotel In London Trades at 6% Yield
Property Week - February 20, 2008
A consortium of private investors this week bought a Travelodge hotel in the City of London with 70% leverage.
The consortium of around 10 wealthy investors – seven of which are east African and three of which are UK based – was led by investment manager Aprirose Real Estate. It paid around £25m to Lenta Properties for the 45,000 sq ft, 190-bedroom hotel near Tower Hill at Lloyds Court in the City, which is let to Travelodge on a 35-year lease with upward-only rental increases lined to the Retail Prices Index.
Aprirose managed to secure 69.3% senior debt funding at an undisclosed rate for the purchase from a bank, thought to be Abbey, for the former office building on the back of the strength of Travelodge as a long-term covenant.
Manish Gudka, head of Aprirose, said: ‘We are led by what our investors want, and right now capital protection is the name of the game, so we are very much covenant-driven. ‘Our investors like long leases, guaranteed uplifts and strong covenants – and that is the model that this Travelodge fits. The fundamentals of the property, in terms of customer demand and the location, are strong,’ he said.
Mark Bruce-Lockhart, director at Phillips Lockhart, the agent acting for Aprirose, attributed the low 6% yield to the perceived resilience of the budget hotel sector in the downturn: ‘There are not many 35-year unbroken streams in central London, which pushed the yield down. The banks really liked this deal because it was long dated.
‘It shows that there is demand for the secure, long-dated income, purely because people are growing fed up with not earning any interest in the bank. ‘We are finding surprisingly good demand for small recession-resilient covenants like Tesco Express, Aldi and Lidl2, which Travelodge falls into.’
Contracts were exchanged before Christmas, but the deal did not complete until last week.
Lenta Properties was represented by Storeys:ssp. Sphere: Related Content
A consortium of private investors this week bought a Travelodge hotel in the City of London with 70% leverage.
The consortium of around 10 wealthy investors – seven of which are east African and three of which are UK based – was led by investment manager Aprirose Real Estate. It paid around £25m to Lenta Properties for the 45,000 sq ft, 190-bedroom hotel near Tower Hill at Lloyds Court in the City, which is let to Travelodge on a 35-year lease with upward-only rental increases lined to the Retail Prices Index.
Aprirose managed to secure 69.3% senior debt funding at an undisclosed rate for the purchase from a bank, thought to be Abbey, for the former office building on the back of the strength of Travelodge as a long-term covenant.
Manish Gudka, head of Aprirose, said: ‘We are led by what our investors want, and right now capital protection is the name of the game, so we are very much covenant-driven. ‘Our investors like long leases, guaranteed uplifts and strong covenants – and that is the model that this Travelodge fits. The fundamentals of the property, in terms of customer demand and the location, are strong,’ he said.
Mark Bruce-Lockhart, director at Phillips Lockhart, the agent acting for Aprirose, attributed the low 6% yield to the perceived resilience of the budget hotel sector in the downturn: ‘There are not many 35-year unbroken streams in central London, which pushed the yield down. The banks really liked this deal because it was long dated.
‘It shows that there is demand for the secure, long-dated income, purely because people are growing fed up with not earning any interest in the bank. ‘We are finding surprisingly good demand for small recession-resilient covenants like Tesco Express, Aldi and Lidl2, which Travelodge falls into.’
Contracts were exchanged before Christmas, but the deal did not complete until last week.
Lenta Properties was represented by Storeys:ssp. Sphere: Related Content
BBVA Nearing EUR 1 Billion Sale Leaseback of Properties Across Spain
Property Week - February 20, 2009
RREEF is close to sealing a €1bn purchase and leaseback of some of Spanish bank Banco Bilbao Vizcaya Argentaria’s (BBVA) property assets
It is thought the global fund manager is in advanced talks with BBVA to buy a portfolio of retail bank branches and offices across Spain. The bank would lease the properties back on a range of leases of more than 15 years.
BBVA instructed CB Richard Ellis last year to market its property assets to raise around €2bn.
Around 1,288 retail branches and 30 office buildings are among the property assets. BBVA has split the portfolio to attract a wider range of investors and has agreed to lease the properties on a range of terms between 25 years and 40 years.
It is thought that RREEF has cherry picked several assets in which it is interested and is discussing the possible structure for the deal. Sphere: Related Content
RREEF is close to sealing a €1bn purchase and leaseback of some of Spanish bank Banco Bilbao Vizcaya Argentaria’s (BBVA) property assets
It is thought the global fund manager is in advanced talks with BBVA to buy a portfolio of retail bank branches and offices across Spain. The bank would lease the properties back on a range of leases of more than 15 years.
BBVA instructed CB Richard Ellis last year to market its property assets to raise around €2bn.
Around 1,288 retail branches and 30 office buildings are among the property assets. BBVA has split the portfolio to attract a wider range of investors and has agreed to lease the properties on a range of terms between 25 years and 40 years.
It is thought that RREEF has cherry picked several assets in which it is interested and is discussing the possible structure for the deal. Sphere: Related Content
Sunday, February 15, 2009
Adidas AG Completes Sale Leaseback of Reebok-CCM’s HQ in Montréal
Jones Lang Lasalle Web Site - January, 2009
Jones Lang LaSalle Real Estate Services, on behalf of adidas AG, is pleased to announce the successful completion of a 15 year sale leaseback of the 475,000 s.f. worldwide headquarters and global distribution center of Reebok-CCM Hockey. This state of the art distribution facility located in Ville St. Laurent, Montréal, Québec, Canada was constructed in 2006 as a mixed industrial and office space building. The property sits on over 885,000 s.f. of land and boasts 71,512 s.f. of office and showroom space, and an impressive 402,951 s.f. of warehousing area at a clear height of 33.5 ft.
The property is 100% leased to Reebok-CCM for 15 years, on an absolute net lease basis.
Adidas AG, the world’s second largest sporting goods company, whose global portfolio encompasses distribution, office and retail space, has already appointed Jones Lang LaSalle on over 50 projects worldwide involving transaction management, property development, capital markets and lease administration.
John Faratro, Senior Vice President, Jones Lang LaSalle says, “our strong track record in Industrial Services and ability to deliver key expertise through our established network of local markets was integral to a successful disposition.” Sphere: Related Content
Jones Lang LaSalle Real Estate Services, on behalf of adidas AG, is pleased to announce the successful completion of a 15 year sale leaseback of the 475,000 s.f. worldwide headquarters and global distribution center of Reebok-CCM Hockey. This state of the art distribution facility located in Ville St. Laurent, Montréal, Québec, Canada was constructed in 2006 as a mixed industrial and office space building. The property sits on over 885,000 s.f. of land and boasts 71,512 s.f. of office and showroom space, and an impressive 402,951 s.f. of warehousing area at a clear height of 33.5 ft.
The property is 100% leased to Reebok-CCM for 15 years, on an absolute net lease basis.
Adidas AG, the world’s second largest sporting goods company, whose global portfolio encompasses distribution, office and retail space, has already appointed Jones Lang LaSalle on over 50 projects worldwide involving transaction management, property development, capital markets and lease administration.
John Faratro, Senior Vice President, Jones Lang LaSalle says, “our strong track record in Industrial Services and ability to deliver key expertise through our established network of local markets was integral to a successful disposition.” Sphere: Related Content
BBVA Completes €82 Million Sale Leaseback of Madrid HQ
Property Week - February 13, 2009
Deka has bought the Madrid headquarters of Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) for around €82m in a purchase and leaseback. The German open-ended fund manager is thought to have agreed to lease the building back to the bank for 15 years. The rent has not been disclosed.
The sale is part of a wider disposal of assets by BBVA. Last year it instructed CB Richard Ellis to advise on raising around €2bn through sale and leasebacks. It is thought to have assembled two main portfolios comprising around 1,288 retail branches and 30 office buildings respectively. It split the portfolio to attract a wider range of investors and has agreed to lease the properties on a range of terms between 25 years and 40 years.
In the last six months of 2008, nearly €4bn of Spanish bank properties were put up for sale and leasebacks.
Colliers International advised Deka. All parties declined to comment. Sphere: Related Content
Deka has bought the Madrid headquarters of Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) for around €82m in a purchase and leaseback. The German open-ended fund manager is thought to have agreed to lease the building back to the bank for 15 years. The rent has not been disclosed.
The sale is part of a wider disposal of assets by BBVA. Last year it instructed CB Richard Ellis to advise on raising around €2bn through sale and leasebacks. It is thought to have assembled two main portfolios comprising around 1,288 retail branches and 30 office buildings respectively. It split the portfolio to attract a wider range of investors and has agreed to lease the properties on a range of terms between 25 years and 40 years.
In the last six months of 2008, nearly €4bn of Spanish bank properties were put up for sale and leasebacks.
Colliers International advised Deka. All parties declined to comment. Sphere: Related Content
Coates Seeking $15 Million Sale Leaseback of Seven Shops in West Australia
The West Australian - February 13,2009
The owners of Australia’s biggest equipment hire group, Coates Hire, are auctioning seven WA sites next month in the hope of reaping more than $15 million.
The Carlyle Group and Kerry Stokes’ National Hire Group, which bought out Coates Hire a year ago, are selling land in regional and metropolitan WA with properties in Kwinana, Port Hedland, Kalgoorlie, Newman, Tom Price, Kambalda and Collie.
Each of the properties will be leased back by Coates Hire on a 12-year lease, for rents ranging from $35,000 to $580,000 a year.
Colliers International industrial and commercial sales and leasing executive Greg O’Meara, who is handling the portfolio, said the sale was an opportunity for smaller investors to buy an industrial investment, in some cases for $300,000 to $400,000, with a blue-chip national tenant.
The three biggest properties, in Kwinana, Port Hedland and Kalgoorlie, would appeal to investors in the $5 million to $7 million range.
“The strength of the offering is the strong tenant,” Mr O’Meara said. “The properties by and large are in good industrial locations, in mining towns for the most part, and provide good cash flows. People are buying an income stream but they are also buying a piece of real estate. Self-funded retirees who have been hit by market uncertainty in recent months can look at getting an excellent return on their money.”
The seven properties will be auctioned on March 11. Sphere: Related Content
The owners of Australia’s biggest equipment hire group, Coates Hire, are auctioning seven WA sites next month in the hope of reaping more than $15 million.
The Carlyle Group and Kerry Stokes’ National Hire Group, which bought out Coates Hire a year ago, are selling land in regional and metropolitan WA with properties in Kwinana, Port Hedland, Kalgoorlie, Newman, Tom Price, Kambalda and Collie.
Each of the properties will be leased back by Coates Hire on a 12-year lease, for rents ranging from $35,000 to $580,000 a year.
Colliers International industrial and commercial sales and leasing executive Greg O’Meara, who is handling the portfolio, said the sale was an opportunity for smaller investors to buy an industrial investment, in some cases for $300,000 to $400,000, with a blue-chip national tenant.
The three biggest properties, in Kwinana, Port Hedland and Kalgoorlie, would appeal to investors in the $5 million to $7 million range.
“The strength of the offering is the strong tenant,” Mr O’Meara said. “The properties by and large are in good industrial locations, in mining towns for the most part, and provide good cash flows. People are buying an income stream but they are also buying a piece of real estate. Self-funded retirees who have been hit by market uncertainty in recent months can look at getting an excellent return on their money.”
The seven properties will be auctioned on March 11. Sphere: Related Content
Thursday, February 12, 2009
Mitchells & Butlers Completes £30 Million Sale Leaseback of HQ & Hotel in Birmingham
PropertyEU - February 9, 2009
London-based fund manager Moorfield Group has concluded a £30 mln (EUR 33.5 mln) sale-and-leaseback with leisure group Mitchells & Butlers for its 95,000 sq ft (8,826 m2) head office and adjoining 120-room hotel in Birmingham.
Moorfield has purchased the buildings for its Moorfield Real Estate Fund II which raised £400 mln of private equity on closing at the end of 2007. MREF II is backed principally by US endowment and foundation funds and European pension funds.
The hotel and office are on Fleet Street in Birmingham and the hotel is an Express by Holiday Inn. Both have been leased back to Mitchells & Butlers.
Colliers CRE acted for Mitchells & Butlers and Savills acted for Moorfield. Sphere: Related Content
London-based fund manager Moorfield Group has concluded a £30 mln (EUR 33.5 mln) sale-and-leaseback with leisure group Mitchells & Butlers for its 95,000 sq ft (8,826 m2) head office and adjoining 120-room hotel in Birmingham.
Moorfield has purchased the buildings for its Moorfield Real Estate Fund II which raised £400 mln of private equity on closing at the end of 2007. MREF II is backed principally by US endowment and foundation funds and European pension funds.
The hotel and office are on Fleet Street in Birmingham and the hotel is an Express by Holiday Inn. Both have been leased back to Mitchells & Butlers.
Colliers CRE acted for Mitchells & Butlers and Savills acted for Moorfield. Sphere: Related Content
Monday, February 02, 2009
DHL Enters EUR 30 Million Sale Leaseback of Three Logistics Properties in Belgium
PropertyEU - January 30, 2009
Warehousing group WDP has expanded its Belgian portfolio with the acquisition of three logistics sites from DHL's parent company Deutsche Post for a total of nearly EUR 30 mln. The all-share transaction reflects a gross yield of 8.7%. The sites, with a total area of 85,000 m2, will be leased back by DHL, WDP said on Thursday.
The transaction will take the form of a merger and three partial de-mergers whereby WDP will issue shares for an amount of nearly EUR 22 mln and will be transferred debt of EUR 8 mln. The deal is due for completion in the first quarter of 2009.
The assets consist of the Belgian 33,000 m2 head office of DHL Exel Supply Chain in Mechelen, a site of 33,923 m2 leased with a five- to nine-year contract and a 19,000 m2 site in Meer. The total rent amounts to EUR 2.7 mln per year. Sphere: Related Content
Warehousing group WDP has expanded its Belgian portfolio with the acquisition of three logistics sites from DHL's parent company Deutsche Post for a total of nearly EUR 30 mln. The all-share transaction reflects a gross yield of 8.7%. The sites, with a total area of 85,000 m2, will be leased back by DHL, WDP said on Thursday.
The transaction will take the form of a merger and three partial de-mergers whereby WDP will issue shares for an amount of nearly EUR 22 mln and will be transferred debt of EUR 8 mln. The deal is due for completion in the first quarter of 2009.
The assets consist of the Belgian 33,000 m2 head office of DHL Exel Supply Chain in Mechelen, a site of 33,923 m2 leased with a five- to nine-year contract and a 19,000 m2 site in Meer. The total rent amounts to EUR 2.7 mln per year. Sphere: Related Content
Sunday, February 01, 2009
Home Depot Completes $59.2 Million Sale Leaseback of Two Distribution Centers
CoStar Group - January 27, 2009
Home Depot sold two distribution centers in Alabama and Georgia to The Inland Real Estate Group of Cos. Inc. for $59.2 million, or approximately $45 per square foot. The Atlanta-based home improvement retailer also leased back the nearly 1.32 million square feet in industrial space for 18 years.
Inland said the buildings, known as rapid deployment centers, are key hubs in Home Depot’s supply chain.
The one-year-old facilities each measure 657,600 square feet. The first is at 6400 Jefferson Metropolitan Parkway in McCalla, AL, about 20 miles southwest of Birmingham. The second one is just outside of Valdosta, GA, at 6201 Peterson Road in Lake Park. It’s nearly five miles from the Florida state line and about two hours northeast of Tallahassee.
CB Richard Ellis represented Home Depot. Inland used in-house representation. Sphere: Related Content
Home Depot sold two distribution centers in Alabama and Georgia to The Inland Real Estate Group of Cos. Inc. for $59.2 million, or approximately $45 per square foot. The Atlanta-based home improvement retailer also leased back the nearly 1.32 million square feet in industrial space for 18 years.
Inland said the buildings, known as rapid deployment centers, are key hubs in Home Depot’s supply chain.
The one-year-old facilities each measure 657,600 square feet. The first is at 6400 Jefferson Metropolitan Parkway in McCalla, AL, about 20 miles southwest of Birmingham. The second one is just outside of Valdosta, GA, at 6201 Peterson Road in Lake Park. It’s nearly five miles from the Florida state line and about two hours northeast of Tallahassee.
CB Richard Ellis represented Home Depot. Inland used in-house representation. Sphere: Related Content
Saturday, January 24, 2009
Sale Leasebacks Revived as Companies Look for Cash
Property Week - January 22, 2009
Big-name owner-occupiers attempt to raise capital from property portfolios
A host of the world’s biggest companies are turning to their property portfolios in an attempt to raise cash to shore up their declining balance sheets.
Property Week understands that builders’ merchant Travis Perkins and communications company Cable & Wireless are investigating ways to raise capital from their properties.
The potential is huge, predicts GVA Grimley, which estimated in spring 2008 that the value of freehold properties held on the FTSE 200 companies’ balance sheets totalled £163bn.
Julian Lyon, chairman of the Confederation of British Industry’s property group and manager of European real estate at General Motors, said: ‘All companies must keep under constant review how they raise working capital. ‘Several options for raising capital have disappeared, so companies have to look at alternatives.’
Rumours have swept the market that other corporate occupiers such as Credit Suisse, builders’ supplier Wolseley and Honda may be considering sale and leasebacks. They would follow General Motors, which, advised by Jones Lang LaSalle, put $750m (£536m) of sale-and-leasebacks properties on the market at the end of last year, including its Detroit headquarters, the Renaissance Center.
Matthew Richards, director of corporate capital markets at JLL, said enquiries of this type had doubled over the last six months.
However, most companies are at early stages in their investigations. Cable & Wireless, which is advised by Doherty Baines, has a small portfolio of technical sale-and-leaseback properties on the market.
Credit Suisse reviews its freehold property every six months and is thought to be considering the sale-and-leaseback option for the future.
Wolseley was unavailable for comment.
Honda’s property manager, Gordon Hunt, said it was not yet the right time.
‘We are not looking at sale and leasebacks as it doesn’t appeal to us because of a simple commercial reason: the yields are not where they need to be.’
Hunt’s comments demonstrate a crucial point: that some owner-occupiers only consider them when they are desperate for cash, but others, such as Tesco and Travis Perkins, have long pursued them as a sensible business initiative.
Property director of Travis Perkins, Martin Meech, who has a sale and leaseback portfolio on the market, said: ‘Sale and leasebacks are part of an ongoing portfolio strategy for us.’
Tom Betts, finance director at Topland, which has invested in several sale-and-leaseback transactions in the past, agreed and said: ‘We are seeing a few things in their infancy at the moment. But it should not just be cash-raising to sort a problem.
We are a long-term investor and we want someone who is going to be there for the long term. Sphere: Related Content
Big-name owner-occupiers attempt to raise capital from property portfolios
A host of the world’s biggest companies are turning to their property portfolios in an attempt to raise cash to shore up their declining balance sheets.
Property Week understands that builders’ merchant Travis Perkins and communications company Cable & Wireless are investigating ways to raise capital from their properties.
The potential is huge, predicts GVA Grimley, which estimated in spring 2008 that the value of freehold properties held on the FTSE 200 companies’ balance sheets totalled £163bn.
Julian Lyon, chairman of the Confederation of British Industry’s property group and manager of European real estate at General Motors, said: ‘All companies must keep under constant review how they raise working capital. ‘Several options for raising capital have disappeared, so companies have to look at alternatives.’
Rumours have swept the market that other corporate occupiers such as Credit Suisse, builders’ supplier Wolseley and Honda may be considering sale and leasebacks. They would follow General Motors, which, advised by Jones Lang LaSalle, put $750m (£536m) of sale-and-leasebacks properties on the market at the end of last year, including its Detroit headquarters, the Renaissance Center.
Matthew Richards, director of corporate capital markets at JLL, said enquiries of this type had doubled over the last six months.
However, most companies are at early stages in their investigations. Cable & Wireless, which is advised by Doherty Baines, has a small portfolio of technical sale-and-leaseback properties on the market.
Credit Suisse reviews its freehold property every six months and is thought to be considering the sale-and-leaseback option for the future.
Wolseley was unavailable for comment.
Honda’s property manager, Gordon Hunt, said it was not yet the right time.
‘We are not looking at sale and leasebacks as it doesn’t appeal to us because of a simple commercial reason: the yields are not where they need to be.’
Hunt’s comments demonstrate a crucial point: that some owner-occupiers only consider them when they are desperate for cash, but others, such as Tesco and Travis Perkins, have long pursued them as a sensible business initiative.
Property director of Travis Perkins, Martin Meech, who has a sale and leaseback portfolio on the market, said: ‘Sale and leasebacks are part of an ongoing portfolio strategy for us.’
Tom Betts, finance director at Topland, which has invested in several sale-and-leaseback transactions in the past, agreed and said: ‘We are seeing a few things in their infancy at the moment. But it should not just be cash-raising to sort a problem.
We are a long-term investor and we want someone who is going to be there for the long term. Sphere: Related Content
Sunday, January 18, 2009
Atos Origin Completes EUR 28 Million Sale Leaseback of Offices in Madrid
PropertyEU - January 16, 2009
Germany's Real I.S. said it has acquired a property in the Julian Camarillo office district of Madrid in a EUR 28 mln sale and leaseback with IT company Firma Atos Origin. The asset is earmarked for the institutional investment fund BGV Bayerische Grundvermögen III SICAV FIS. The four-storey building has a rentable surface of 8,000 m2, and an underground parking garage with 92 spaces. The property is fully leased.
Real I.S. is the Munich-based subsidiary of Bayern LB. This is the fifth investment made by the company on behalf of its institutional fund. Sphere: Related Content
Germany's Real I.S. said it has acquired a property in the Julian Camarillo office district of Madrid in a EUR 28 mln sale and leaseback with IT company Firma Atos Origin. The asset is earmarked for the institutional investment fund BGV Bayerische Grundvermögen III SICAV FIS. The four-storey building has a rentable surface of 8,000 m2, and an underground parking garage with 92 spaces. The property is fully leased.
Real I.S. is the Munich-based subsidiary of Bayern LB. This is the fifth investment made by the company on behalf of its institutional fund. Sphere: Related Content
Monday, January 12, 2009
Tesco Completes £308 Million Sale Leaseback of Seven Stores
Property Week - January 9, 2009
Tesco has completed another two sale and leasebacks totalling £308m. It has sold three Tesco stores into a £199m joint venture with the separately run Tesco Pension Scheme. The pension scheme will take a 50% stake. A further four stores will be sold to a Prupim annuity fund client in a £109m sale and leaseback. The initial yields on all the transactions are 5.25%-5.3%. Prupim and GL Hearn advised the Prupim fund; Morgan Williams advised Tesco on both transactions; Cushman & Wakefield advised the Tesco Pension Fund. Sphere: Related Content
Tesco has completed another two sale and leasebacks totalling £308m. It has sold three Tesco stores into a £199m joint venture with the separately run Tesco Pension Scheme. The pension scheme will take a 50% stake. A further four stores will be sold to a Prupim annuity fund client in a £109m sale and leaseback. The initial yields on all the transactions are 5.25%-5.3%. Prupim and GL Hearn advised the Prupim fund; Morgan Williams advised Tesco on both transactions; Cushman & Wakefield advised the Tesco Pension Fund. Sphere: Related Content
Telereal to Buy Trillium for £750 Million
PropertyEU - January 9, 2009
London-based property investment and services firm Telereal has agreed to acquire Land Securities' outsourcing business Trillium for £750 mln (about EUR 831 mln).
The investment volume is considerably lower than the £1 bn-plus valuations of Trillium in 2007-2008. But the deal does not include Trillium's Accor hotel portfolio which will remain within Land Securities.
In a statement, Land Securities said the headline enterprise value of £750 mln was based on Trillium's balance sheet - excluding the Accor hotels - at end-March 2008. The gross assets of Trillium (excluding Accor) were £1.57 bn end-March 2008 and £1.3 bn at end-September 2008. The sale of Trillium is expected to complete on 12 January.
Land Securities, the largest real estate investment trust in the UK, unveiled plans back in November 2007 to demerge into two separate listed companies for retail property and the London office portfolio. The group planned either to sell Trillium, or failing that list it as a separate entity. However, the worsening of the global financial crisis stymied the re-organisation, with the sales process for Trillium taking much longer than expected. Land Securities suspended the demerger plans for its retail and office divisions in November last year.
The UK REIT said on Thursday that the sale of Trillium will generate cash proceeds of £444 mln which will be used to reduce the group's net debt.
Francis Salway, CEO of Land Securities, said: 'We are pleased to have concluded this sale in a challenging economic environment. We will now focus on our core property investment and development activities. The cash proceeds will strengthen our balance she" Sphere: Related Content
London-based property investment and services firm Telereal has agreed to acquire Land Securities' outsourcing business Trillium for £750 mln (about EUR 831 mln).
The investment volume is considerably lower than the £1 bn-plus valuations of Trillium in 2007-2008. But the deal does not include Trillium's Accor hotel portfolio which will remain within Land Securities.
In a statement, Land Securities said the headline enterprise value of £750 mln was based on Trillium's balance sheet - excluding the Accor hotels - at end-March 2008. The gross assets of Trillium (excluding Accor) were £1.57 bn end-March 2008 and £1.3 bn at end-September 2008. The sale of Trillium is expected to complete on 12 January.
Land Securities, the largest real estate investment trust in the UK, unveiled plans back in November 2007 to demerge into two separate listed companies for retail property and the London office portfolio. The group planned either to sell Trillium, or failing that list it as a separate entity. However, the worsening of the global financial crisis stymied the re-organisation, with the sales process for Trillium taking much longer than expected. Land Securities suspended the demerger plans for its retail and office divisions in November last year.
The UK REIT said on Thursday that the sale of Trillium will generate cash proceeds of £444 mln which will be used to reduce the group's net debt.
Francis Salway, CEO of Land Securities, said: 'We are pleased to have concluded this sale in a challenging economic environment. We will now focus on our core property investment and development activities. The cash proceeds will strengthen our balance she" Sphere: Related Content
Thursday, January 08, 2009
UniCredit Completes €800 Million Sale Leaseback of Milan HQ and 70 Bank Branches Across Italy
Property Week - January 6, 2009
Italian bank UniCredit has packaged a portfolio of domestic real estate, including its Milan headquarters, into a fund and sold 62% of the units to institutional investors.
The fifteen year investment fund, managed by Italian real estate manager Fimit, comprises a portfolio of the bank’s historic Palazzo Broggi building in the heart of Milan (pictured) and Livio Cambi in the city, as well as 70 banking branches and has an overall value of €800m.
UniCredit, which will lease the properties back for 18 years, will keep a 33% stake in the remaining fund units and sell a further 5% by February.
Italy’s second largest bank is under to pressure to boost its core tier one capital ratio – a key measure of balance sheet strength – to 6.7% before the end of the year.
The deal is expected to yield UniCredit a €280m profit for the fourth quarter of 2008. In the three months to September, net profit at the bank fell 54% to €551m compared with the same period last year, but beat market forecasts of €425m.
The sale is one of three disposals worth just over €2bn for the bank. It has also raised €1bn from the sale of profit sharing rights by UniCredit’s Bank Austria for €1.1bn and a stake in Atlantia, an Italian highway tolls operator, for €248m.
In October UniCredit said it needed to raise €6.6bn in additional capital through scrapping its cash dividend and tapping shareholders for extra cash. Sphere: Related Content
Italian bank UniCredit has packaged a portfolio of domestic real estate, including its Milan headquarters, into a fund and sold 62% of the units to institutional investors.
The fifteen year investment fund, managed by Italian real estate manager Fimit, comprises a portfolio of the bank’s historic Palazzo Broggi building in the heart of Milan (pictured) and Livio Cambi in the city, as well as 70 banking branches and has an overall value of €800m.
UniCredit, which will lease the properties back for 18 years, will keep a 33% stake in the remaining fund units and sell a further 5% by February.
Italy’s second largest bank is under to pressure to boost its core tier one capital ratio – a key measure of balance sheet strength – to 6.7% before the end of the year.
The deal is expected to yield UniCredit a €280m profit for the fourth quarter of 2008. In the three months to September, net profit at the bank fell 54% to €551m compared with the same period last year, but beat market forecasts of €425m.
The sale is one of three disposals worth just over €2bn for the bank. It has also raised €1bn from the sale of profit sharing rights by UniCredit’s Bank Austria for €1.1bn and a stake in Atlantia, an Italian highway tolls operator, for €248m.
In October UniCredit said it needed to raise €6.6bn in additional capital through scrapping its cash dividend and tapping shareholders for extra cash. Sphere: Related Content
Marsans Completes €115 Million Sale Leaseback of Madrid HQ
Iberian Lawyer - January 6, 2009
Uría Menéndez has advised Grupo Marsans in the sale and leaseback of its headquarters in the emblematic "Edificio Pórtico" in Campo de las Naciones in Madrid.
The transaction consisted of the sale of the property for approximately €115 million to the German investment fund Union Investment Real Estate (UIRE), and the subrogation of the purchaser to the mortgage loan granted by Eurohypo for the building’s original acquisition.
A lease agreement for the entire premises was entered into simultaneously to the formalising of the sale and purchase deed, with the vendor thus becoming the lessee. The initial term of the lease is eight years, the lessee being entitled to extend this term for two additional successive periods of three years each.
Uría Menéndez’s team included Diego Armero, Maria Luisa Vara, Pablo Garrote and Francisco Bengoetxea (real estate); Carlos López Quiroga (transport); and Guillermo Canalejo and Francisco de la Puente (tax).
UIRE was advised by Gómez-Acebo & Pombo and Eurohypo by its own in-house lawyers. Sphere: Related Content
Uría Menéndez has advised Grupo Marsans in the sale and leaseback of its headquarters in the emblematic "Edificio Pórtico" in Campo de las Naciones in Madrid.
The transaction consisted of the sale of the property for approximately €115 million to the German investment fund Union Investment Real Estate (UIRE), and the subrogation of the purchaser to the mortgage loan granted by Eurohypo for the building’s original acquisition.
A lease agreement for the entire premises was entered into simultaneously to the formalising of the sale and purchase deed, with the vendor thus becoming the lessee. The initial term of the lease is eight years, the lessee being entitled to extend this term for two additional successive periods of three years each.
Uría Menéndez’s team included Diego Armero, Maria Luisa Vara, Pablo Garrote and Francisco Bengoetxea (real estate); Carlos López Quiroga (transport); and Guillermo Canalejo and Francisco de la Puente (tax).
UIRE was advised by Gómez-Acebo & Pombo and Eurohypo by its own in-house lawyers. Sphere: Related Content
Monday, December 22, 2008
Spanish Savings Bank CAM Enters EUR 63 Million Sale Leaseback of Three Office Buildings in Spain
PropertyEU - December 18, 2008
The employee pension fund of Spain's savings bank Caja de Ahorros del Mediterraneo (CAM) has acquired three office buildings from the bank for EUR 63 mln. The assets are located in Alicante, Valencia and Barcelona, and have been leased back to CAM for a period of 20 years with an option to extend for a further 10 years.
The fund said this sale-and-leaseback transaction is expected to 'give more stability to its real estate portfolio, as it provides a stable income stream which is less subject to market volatility. Sphere: Related Content
The employee pension fund of Spain's savings bank Caja de Ahorros del Mediterraneo (CAM) has acquired three office buildings from the bank for EUR 63 mln. The assets are located in Alicante, Valencia and Barcelona, and have been leased back to CAM for a period of 20 years with an option to extend for a further 10 years.
The fund said this sale-and-leaseback transaction is expected to 'give more stability to its real estate portfolio, as it provides a stable income stream which is less subject to market volatility. Sphere: Related Content
Tuesday, December 16, 2008
Caixa Catalunya Seeking EUR 500 Million Sale Leaseback of 824 Bank Branches Across Spain
Reuters - December 14, 2008
Spanish savings bank Caixa Catalunya is seeking to sell 824 of its 1,200 buildings in Spain in a bid to raise 500 million euros ($663.4 million), La Vanguardia reported on Sunday, citing sources at the bank.The bank wants to strike a deal with potential buyers to continue to rent the branches, with a buy-back option for 10, 15 and 20 years, and wants to sell them in lots of 5 million euros, which would include 10 to 15 premises, the paper said.
The bank is in particular targeting its private banking clients as potential buyers, it added.
Its head office in Barcelona is not up for sale, added the report. No one was immediately available at the bank on Sunday to comment.
Other Spanish banks have also closed leaseback deals on their property, notably Spain's largest bank Santander (SAN.MC), which has sold more than 1,150 of its branches and other buildings and its headquarters complex at Boadilla del Monte on the outskirts of Madrid. Sphere: Related Content
Spanish savings bank Caixa Catalunya is seeking to sell 824 of its 1,200 buildings in Spain in a bid to raise 500 million euros ($663.4 million), La Vanguardia reported on Sunday, citing sources at the bank.The bank wants to strike a deal with potential buyers to continue to rent the branches, with a buy-back option for 10, 15 and 20 years, and wants to sell them in lots of 5 million euros, which would include 10 to 15 premises, the paper said.
The bank is in particular targeting its private banking clients as potential buyers, it added.
Its head office in Barcelona is not up for sale, added the report. No one was immediately available at the bank on Sunday to comment.
Other Spanish banks have also closed leaseback deals on their property, notably Spain's largest bank Santander (SAN.MC), which has sold more than 1,150 of its branches and other buildings and its headquarters complex at Boadilla del Monte on the outskirts of Madrid. Sphere: Related Content
Sunday, December 14, 2008
Tesco Pursuing €212 Million Sale Leaseback of Six Properties in Ireland
Property Week - December 12, 2008
Tesco plans to sell properties in the Republic of Ireland worth €212m (£184m), including shopping centres Golden Island in Athlone and Artane Castle, Artane, north Dublin.
It is looking for €60m (£52m) for Golden Island, which would reflect a net initial yield of 6.15%, and €35m (£30m) for Artane Castle – a yield of more than 6%.
DTZ Sherry FitzGerald is quoting €116.9m (£101m) for a sale and leaseback of four other stores. Sphere: Related Content
Tesco plans to sell properties in the Republic of Ireland worth €212m (£184m), including shopping centres Golden Island in Athlone and Artane Castle, Artane, north Dublin.
It is looking for €60m (£52m) for Golden Island, which would reflect a net initial yield of 6.15%, and €35m (£30m) for Artane Castle – a yield of more than 6%.
DTZ Sherry FitzGerald is quoting €116.9m (£101m) for a sale and leaseback of four other stores. Sphere: Related Content
Sunday, December 07, 2008
European Banks Look to Sale Leasebacks for Liquidity Amid Tight Capital Markets
Property Week - December 5, 2008
European banks have embarked on a slew of sale and leasebacks in an attempt to raise cash amid the global economic turmoil.
Collapsed Belgian bank Fortis, BBVA and Banco Sabadell have all put portfolios on the market.
Almost every other top European bank, from Italy’s UniCredito to Royal Bank of Scotland in the UK, is also scrutinising its property holdings to see where money can be made.
A report by Merrill Lynch found that Europe’s leading banks need to raise a further €73bn (£61bn) to keep their finances steady.
Cushman & Wakefield found that the top 43 European banks have €63bn (£52bn) of property assets on their balance sheets (see table).
Matthew Stone, head of occupier strategy at Cushman & Wakefield, said: ‘One increasingly popular method for banks to raise capital is through sale and leasebacks. The Spanish banks, BBVA and Banco Sabadell, and Fortis of Belgium, have all recently announced plans for billions of euros of sale and leaseback transactions, and many other European banks are actively considering them as a cost-efficient method of raising finance.
‘Leading European banks have over €63bn of land and buildings on their balance sheets which, if fully monetised, would meet almost all the €73bn of additional capital needs estimated by Merrill Lynch.’
There are investors willing to buy this kind of property. The fact that some banks have been bailed out by governments provides reassurance that they are safe from insolvency and are good covenants. Sphere: Related Content
European banks have embarked on a slew of sale and leasebacks in an attempt to raise cash amid the global economic turmoil.
Collapsed Belgian bank Fortis, BBVA and Banco Sabadell have all put portfolios on the market.
Almost every other top European bank, from Italy’s UniCredito to Royal Bank of Scotland in the UK, is also scrutinising its property holdings to see where money can be made.
A report by Merrill Lynch found that Europe’s leading banks need to raise a further €73bn (£61bn) to keep their finances steady.
Cushman & Wakefield found that the top 43 European banks have €63bn (£52bn) of property assets on their balance sheets (see table).
Matthew Stone, head of occupier strategy at Cushman & Wakefield, said: ‘One increasingly popular method for banks to raise capital is through sale and leasebacks. The Spanish banks, BBVA and Banco Sabadell, and Fortis of Belgium, have all recently announced plans for billions of euros of sale and leaseback transactions, and many other European banks are actively considering them as a cost-efficient method of raising finance.
‘Leading European banks have over €63bn of land and buildings on their balance sheets which, if fully monetised, would meet almost all the €73bn of additional capital needs estimated by Merrill Lynch.’
There are investors willing to buy this kind of property. The fact that some banks have been bailed out by governments provides reassurance that they are safe from insolvency and are good covenants. Sphere: Related Content
Wednesday, December 03, 2008
Renown Agrees to $89.3 Million Sale Leaseback of Two Properties in Japan
Trading Markets.com - December 1, 2008
Japan's Renown Inc. (TSE:3606) said Friday that it will sell its headquarters building in Tokyo and an office building in Osaka for a total of 8.5 billion yen (US$89.3 million). The apparel company, which is undergoing rehabilitation, plans to use the proceeds to reduce interest-bearing debt and renovate stores.
Renown will sell the Tokyo property to building-leasing firm TOC CO. (8841) for 6 billion yen and the Osaka property to condominium builder Haseko Corp. (TSE:1808) for 2.5 billion yen.
It will sign lease contracts with the buyers and continue using the buildings. Sphere: Related Content
Japan's Renown Inc. (TSE:3606) said Friday that it will sell its headquarters building in Tokyo and an office building in Osaka for a total of 8.5 billion yen (US$89.3 million). The apparel company, which is undergoing rehabilitation, plans to use the proceeds to reduce interest-bearing debt and renovate stores.
Renown will sell the Tokyo property to building-leasing firm TOC CO. (8841) for 6 billion yen and the Osaka property to condominium builder Haseko Corp. (TSE:1808) for 2.5 billion yen.
It will sign lease contracts with the buyers and continue using the buildings. Sphere: Related Content
Tuesday, December 02, 2008
Dearth of Financing Slows Sale Leasebacks
Financial Week - November 30, 2008
The credit crunch is killing the trend of using sale-leasebacks to raise capital, because frozen conditions have made it nearly impossible to get deals done.
Through Nov. 1, sale-leasebacks totaled $6.2 billion, less than half of the $14.2 billion in such transactions seen during 2007, according to Real Capital Analytics. Most of the deals that do close are one-off, single-tenant transactions amounting to less than $100 million each, experts say, a change from the large portfolio deals that dominated the market in years past.
From 2002 through 2007, sale-leasebacks gained popularity with private equity firms, which sold real estate assets from acquisitions to pay off the loans used to bankroll their leveraged buyouts. Having less invested capital increased PE firms’ net returns on assets and equity.
But few other corporations saw the need for them because the liberal lending atmosphere made capital promptly and cheaply obtainable. As that lending has dried up, sale-leasebacks, like most other forms of financing, have become both more desirable and less available.
Sale-leasebacks have slowed dramatically,” said Dan Fasulo, managing director of Real Capital Analytics. “It’s counterintuitive, because you’d think that they would be thriving in this type of environment. But it doesn’t matter how good the tenants are, the lenders just are not there.”
One reason is that lenders can no longer package loans for sale-leasebacks into securities as they did during the real estate boom.
“If the debt is available, it’s available in smaller denominations, because you are working directly with a lender, not from a securitization anymore,” said Mindy Berman, the managing director of corporate capital markets at Jones Lang LaSalle.
In addition to providing another source of capital, sale-leasebacks offer a way to reap gains on property that has been on the balance sheet. Companies have been depreciating their real estate assets for years, so the book value of those assets is low and companies should realize hefty profits on sales. But commercial real estate prices have come down considerably from their 2007 highs, and some executives harbor unrealistic expectations regarding the value of their properties, experts said.
“There is still a real spread between sellers’ expectations and what buyers are willing to pay,” said Arthur Greenberg, an executive vice president in the Washington office of real estate broker Studley. “There is a lot of money sitting on the sidelines, but it is primarily private equity money, and [private equity] has higher yield expectations than the current market is offering.”
Potential investors will only consider deals for top-notch properties whose tenants have stellar credit, and they’re looking for long-term leases that stretch to 15 years instead of 10. Medical office building sale-leasebacks represent a bright spot in the industry, while deals have dried up in sectors that have suffered more from the financial slowdown, such as retail or automotive.
“Underwriting has changed significantly in the sale-leaseback realm,” said Ms. Berman of Jones Lang LaSalle. “We’re back to basics. You need to underwrite the credit of the tenant and the property fundamentals.”
Still, Ms. Berman said her office fields calls every day from companies interested in determining the value of their property and the feasibility of a sale-leaseback.
“In today’s market, everyone is desperate,” said Bill Pollert, president of CapLease, a real estate investment trust that specializes in single-tenant properties. “They’re looking for every possible way to generate capital. It’s hard for companies that are not in real estate to justify owning property.”
Experts expect the sector to lead the rebound in commercial real estate once credit conditions relax.
“Fundamentally, the economics that justify sale-leasebacks are strong and viable,” Mr. Pollert said. “It’s a segment that will come back and will be strong once the debt markets come back. There is a lot of pent-up demand out there.” Sphere: Related Content
The credit crunch is killing the trend of using sale-leasebacks to raise capital, because frozen conditions have made it nearly impossible to get deals done.
Through Nov. 1, sale-leasebacks totaled $6.2 billion, less than half of the $14.2 billion in such transactions seen during 2007, according to Real Capital Analytics. Most of the deals that do close are one-off, single-tenant transactions amounting to less than $100 million each, experts say, a change from the large portfolio deals that dominated the market in years past.
From 2002 through 2007, sale-leasebacks gained popularity with private equity firms, which sold real estate assets from acquisitions to pay off the loans used to bankroll their leveraged buyouts. Having less invested capital increased PE firms’ net returns on assets and equity.
But few other corporations saw the need for them because the liberal lending atmosphere made capital promptly and cheaply obtainable. As that lending has dried up, sale-leasebacks, like most other forms of financing, have become both more desirable and less available.
Sale-leasebacks have slowed dramatically,” said Dan Fasulo, managing director of Real Capital Analytics. “It’s counterintuitive, because you’d think that they would be thriving in this type of environment. But it doesn’t matter how good the tenants are, the lenders just are not there.”
One reason is that lenders can no longer package loans for sale-leasebacks into securities as they did during the real estate boom.
“If the debt is available, it’s available in smaller denominations, because you are working directly with a lender, not from a securitization anymore,” said Mindy Berman, the managing director of corporate capital markets at Jones Lang LaSalle.
In addition to providing another source of capital, sale-leasebacks offer a way to reap gains on property that has been on the balance sheet. Companies have been depreciating their real estate assets for years, so the book value of those assets is low and companies should realize hefty profits on sales. But commercial real estate prices have come down considerably from their 2007 highs, and some executives harbor unrealistic expectations regarding the value of their properties, experts said.
“There is still a real spread between sellers’ expectations and what buyers are willing to pay,” said Arthur Greenberg, an executive vice president in the Washington office of real estate broker Studley. “There is a lot of money sitting on the sidelines, but it is primarily private equity money, and [private equity] has higher yield expectations than the current market is offering.”
Potential investors will only consider deals for top-notch properties whose tenants have stellar credit, and they’re looking for long-term leases that stretch to 15 years instead of 10. Medical office building sale-leasebacks represent a bright spot in the industry, while deals have dried up in sectors that have suffered more from the financial slowdown, such as retail or automotive.
“Underwriting has changed significantly in the sale-leaseback realm,” said Ms. Berman of Jones Lang LaSalle. “We’re back to basics. You need to underwrite the credit of the tenant and the property fundamentals.”
Still, Ms. Berman said her office fields calls every day from companies interested in determining the value of their property and the feasibility of a sale-leaseback.
“In today’s market, everyone is desperate,” said Bill Pollert, president of CapLease, a real estate investment trust that specializes in single-tenant properties. “They’re looking for every possible way to generate capital. It’s hard for companies that are not in real estate to justify owning property.”
Experts expect the sector to lead the rebound in commercial real estate once credit conditions relax.
“Fundamentally, the economics that justify sale-leasebacks are strong and viable,” Mr. Pollert said. “It’s a segment that will come back and will be strong once the debt markets come back. There is a lot of pent-up demand out there.” Sphere: Related Content
Tuesday, November 18, 2008
Trent Ltd Considers Sale Leaseback of Retail Portfolio in India to Fund Expansion
mydigitalfc.com - November 16, 2008
Trent Ltd, the fashion retailer headed by Noel Naval Tata, is considering sale of some of its prime properties to raise cash for expansion. Because the retail business needs physical space, Trent will take the properties back on lease.
Senior Trent officials told Financial Chronicle that, at current realty prices, up to Rs 700 crore ($9 Billion) could be raised by selling its properties across India, the combined space of which is almost 300,000 sq ft.
The properties include an office building in Mumbai’s suburban business district of Bandra Kurla complex, Spencer’s Plaza in Chennai and a property each in Delhi and Ahmedabad.
“We could enter into a sale and leaseback agreement, thus freeing up a considerable amount of cash for our expansion without having to raise fresh equity through a rights issue,” a top Trent official said.
The money along with internal accruals is expected to help Trent fund its Rs 2,000 crore investment in the Star India Bazaar hypermarket chain and Westside retail stores. The company also needs money to expand its Landmark book and music stores and for its new value-retail format and investments in setting up or expanding its upmarket Sisley, Topman and Topshop retail stores.
Among listed retailers in India, Trent has the highest gross margins in terms of percentages of sales and per sq ft of space used, according to a recent study by the brokerage, CLSA. Sphere: Related Content
Trent Ltd, the fashion retailer headed by Noel Naval Tata, is considering sale of some of its prime properties to raise cash for expansion. Because the retail business needs physical space, Trent will take the properties back on lease.
Senior Trent officials told Financial Chronicle that, at current realty prices, up to Rs 700 crore ($9 Billion) could be raised by selling its properties across India, the combined space of which is almost 300,000 sq ft.
The properties include an office building in Mumbai’s suburban business district of Bandra Kurla complex, Spencer’s Plaza in Chennai and a property each in Delhi and Ahmedabad.
“We could enter into a sale and leaseback agreement, thus freeing up a considerable amount of cash for our expansion without having to raise fresh equity through a rights issue,” a top Trent official said.
The money along with internal accruals is expected to help Trent fund its Rs 2,000 crore investment in the Star India Bazaar hypermarket chain and Westside retail stores. The company also needs money to expand its Landmark book and music stores and for its new value-retail format and investments in setting up or expanding its upmarket Sisley, Topman and Topshop retail stores.
Among listed retailers in India, Trent has the highest gross margins in terms of percentages of sales and per sq ft of space used, according to a recent study by the brokerage, CLSA. Sphere: Related Content
Sunday, November 16, 2008
Banco Sabadell Considering EUR 500 Million Sale Leaseback of 600 Bank Branches Across Spain
Monereo Meyer Marinel Web Site - November 14, 2008
Banco Sabadell is considering selling approximately 50% of their branch offices. The entity is planning to sell 600 offices in its network under the sale and leaseback model, a transaction that provides investors with great security and a potential payoff of between 500 and 600 million Euros.
According to data from the Spanish newspaper Expansión, Banco Sabadell has confirmed that the transaction of the sale of up to 600 branches currently owned by the bank is in its initial phase, and would not take place until 2009. The transaction would involve the sale of blocks or parts of these assets, under the sale and leaseback model, with Sabadell remaining as a tenant for a period of between 25 and 30 years, with a final option of buying the property back, thus guaranteeing safe and steady income for the buyer. This type of transaction offers great security to investors since it is backed by an entity with a good rating. Market experts have said that the entity could earn between 500 and 600 million Euros.
According to preliminary plans, the corporate offices would not be included in the transaction although sources close to the entity note that they have also been appraised. Banco Sabadell began appraising their real estate assets a year ago and confirms that they are in no hurry to sell and intend to wait for an interesting opportunity to present itself. In fact, the bank has strengthened its balance sheet this year by selling half of its bank insurance business to Zurich, with a capital gain of 512 million Euros.
Banco Sabadell will thus join Spanish financial institutions that have decided to sell off part of their real estate holdings, a trend Banco Santander started with BBVA, Banco Popular and Caixa Galicia following suit. Sphere: Related Content
Banco Sabadell is considering selling approximately 50% of their branch offices. The entity is planning to sell 600 offices in its network under the sale and leaseback model, a transaction that provides investors with great security and a potential payoff of between 500 and 600 million Euros.
According to data from the Spanish newspaper Expansión, Banco Sabadell has confirmed that the transaction of the sale of up to 600 branches currently owned by the bank is in its initial phase, and would not take place until 2009. The transaction would involve the sale of blocks or parts of these assets, under the sale and leaseback model, with Sabadell remaining as a tenant for a period of between 25 and 30 years, with a final option of buying the property back, thus guaranteeing safe and steady income for the buyer. This type of transaction offers great security to investors since it is backed by an entity with a good rating. Market experts have said that the entity could earn between 500 and 600 million Euros.
According to preliminary plans, the corporate offices would not be included in the transaction although sources close to the entity note that they have also been appraised. Banco Sabadell began appraising their real estate assets a year ago and confirms that they are in no hurry to sell and intend to wait for an interesting opportunity to present itself. In fact, the bank has strengthened its balance sheet this year by selling half of its bank insurance business to Zurich, with a capital gain of 512 million Euros.
Banco Sabadell will thus join Spanish financial institutions that have decided to sell off part of their real estate holdings, a trend Banco Santander started with BBVA, Banco Popular and Caixa Galicia following suit. Sphere: Related Content
Friday, November 14, 2008
Taylor Wimpey Pursuing £100m Sale Leaseback of 350 UK Show Homes
Property Week - November 14, 2008
Taylor Wimpey is to carry out a sale and leaseback of around 350 of its show homes in a bid to reduce debt and improve cashflow. The listed housebuilder plans to sell the UK-wide show home portfolio for between £70m and £100m and pay rental income to the buyer for up to three years. It is thought to have instructed King Sturge and last Wednesday sent details to selected institutional-type investors.
Taylor Wimpey needs working capital and access to the show homes, which have an average value of around £200,000, to market its developments. The buyer would gain a sizeable portfolio and a guaranteed three-year income stream without voids, and eventual ownership of 350 homes at a time when the housing market could be in recovery. It could provide investors with an initial yield of between 6% and 7%.
Packaging the homes up as a portfolio is thought to be an innovative way for Taylor Wimpey, led by chief executive Peter Redfearn, to reduce its £1.9bn debt burden. In an interim management statement on Tuesday, Taylor Wimpey said it was unlikely to agree a new debt package by January, when its covenants may be tested. Redfearn said Taylor Wimpey was ready to sell parts of its UK land banks or non-core parts of the business if necessary. The sale-and-leaseback plan would be one such option.
Taylor Wimpey is valued at around £142m, down from a high of £4.3bn last year. It has significantly reduced costs with 1,900 job cuts, land sales and a construction slowdown. Neil Batty, Knight Frank’s new homes investment head, said all housebuilders were looking at ways to extract value. Sphere: Related Content
Taylor Wimpey is to carry out a sale and leaseback of around 350 of its show homes in a bid to reduce debt and improve cashflow. The listed housebuilder plans to sell the UK-wide show home portfolio for between £70m and £100m and pay rental income to the buyer for up to three years. It is thought to have instructed King Sturge and last Wednesday sent details to selected institutional-type investors.
Taylor Wimpey needs working capital and access to the show homes, which have an average value of around £200,000, to market its developments. The buyer would gain a sizeable portfolio and a guaranteed three-year income stream without voids, and eventual ownership of 350 homes at a time when the housing market could be in recovery. It could provide investors with an initial yield of between 6% and 7%.
Packaging the homes up as a portfolio is thought to be an innovative way for Taylor Wimpey, led by chief executive Peter Redfearn, to reduce its £1.9bn debt burden. In an interim management statement on Tuesday, Taylor Wimpey said it was unlikely to agree a new debt package by January, when its covenants may be tested. Redfearn said Taylor Wimpey was ready to sell parts of its UK land banks or non-core parts of the business if necessary. The sale-and-leaseback plan would be one such option.
Taylor Wimpey is valued at around £142m, down from a high of £4.3bn last year. It has significantly reduced costs with 1,900 job cuts, land sales and a construction slowdown. Neil Batty, Knight Frank’s new homes investment head, said all housebuilders were looking at ways to extract value. Sphere: Related Content
Tuesday, November 11, 2008
Eroski Agrees to EUR 361 Million Sale Leaseback of 15 Hypermarkets in Spain
Property Week - November 5, 2009
Topland has agreed the purchase of a 15-strong retail portfolio with Spanish retailer Eroski in Spain’s biggest hypermarket sale and leaseback deal.
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year. Sphere: Related Content
Topland has agreed the purchase of a 15-strong retail portfolio with Spanish retailer Eroski in Spain’s biggest hypermarket sale and leaseback deal.
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year. Sphere: Related Content
Friday, November 07, 2008
Eroski Completes €361 Million Sale Leaseback of 15 Hypermarkets in Spain
Property Week - November 5, 2008
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year.
Cushman & Wakefield advised both parties. Sphere: Related Content
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year.
Cushman & Wakefield advised both parties. Sphere: Related Content
Sunday, November 02, 2008
British Land Selling Debenhams Flagship Store in London for £150 Million
Property Week - October 31, 2008
A Ukrainian investor is under offer to buy the British Land-owned Debenhams block in London’s West End for £150m.
It is thought the investor is the same Ukrainian company which recently purchased 1 Old Bond STreet for around £14m from Scottish Widows Investment Partnership in a deal reflecting a net initial yield of 3.9%.
The company approached British Land to buy the 366,700 sq ft building which occupies a prime position on London’s main shopping street and is the department store operator’s flagship store. It has been known for some time that British Land is seeking to reduce its in-town retail exposure.
British Land, the UK’s second-largest REIT, is an investor in 36 department stores, 24 owned directly and 12 owned within the British Land Fraser joint venture.
Of those owned directly, 22 are subject to leaseback to Debenhams for a minimum of 26 years unexpired. In total these comprise 3.3m sq ft in locations including the flagship London store, a 466,000 sq ft store on Market Street in Manchester, and a 140,000 sq ft store in St Davids, Cardiff.
The total gross annual rent passing is £30.3m. The leases provide for minimum 2.5% per annum rental increases and five-yearly open market reviews from 2019 onwards.
British Land declined to comment. Sphere: Related Content
A Ukrainian investor is under offer to buy the British Land-owned Debenhams block in London’s West End for £150m.
It is thought the investor is the same Ukrainian company which recently purchased 1 Old Bond STreet for around £14m from Scottish Widows Investment Partnership in a deal reflecting a net initial yield of 3.9%.
The company approached British Land to buy the 366,700 sq ft building which occupies a prime position on London’s main shopping street and is the department store operator’s flagship store. It has been known for some time that British Land is seeking to reduce its in-town retail exposure.
British Land, the UK’s second-largest REIT, is an investor in 36 department stores, 24 owned directly and 12 owned within the British Land Fraser joint venture.
Of those owned directly, 22 are subject to leaseback to Debenhams for a minimum of 26 years unexpired. In total these comprise 3.3m sq ft in locations including the flagship London store, a 466,000 sq ft store on Market Street in Manchester, and a 140,000 sq ft store in St Davids, Cardiff.
The total gross annual rent passing is £30.3m. The leases provide for minimum 2.5% per annum rental increases and five-yearly open market reviews from 2019 onwards.
British Land declined to comment. Sphere: Related Content
Saturday, October 18, 2008
Meavita Nederland Enters Sale Leaseback of 27 Health Care Properties in the Netherlands
PropertyEU - October 16, 2008
Dutch firm Green Real Estate has acquired 27 properties from healthcare organisation Meavita Nederland in a sale-and-leaseback transaction. The financial details were not disclosed.
Meavita Nederland disposed of the properties as it no longer views real estate ownership as a core activity. The portfolio comprises 14,000 m2 of lettable area and includes consultancy offices and medical centres in the north, centre and east of the Netherlands.
The healthcare division of property broker DTZ Zadelhoff acted for Green Real Estate. Ans de Wijn Bedrijfshuisvesting advised Meavita Nederland. Sphere: Related Content
Dutch firm Green Real Estate has acquired 27 properties from healthcare organisation Meavita Nederland in a sale-and-leaseback transaction. The financial details were not disclosed.
Meavita Nederland disposed of the properties as it no longer views real estate ownership as a core activity. The portfolio comprises 14,000 m2 of lettable area and includes consultancy offices and medical centres in the north, centre and east of the Netherlands.
The healthcare division of property broker DTZ Zadelhoff acted for Green Real Estate. Ans de Wijn Bedrijfshuisvesting advised Meavita Nederland. Sphere: Related Content
Wednesday, October 15, 2008
GM Seeking $500 Million Sale Leaseback of Detroit HQ
Commercial Property News - October 14, 2008
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund.
But GM may have trouble getting the first pension board to invest. Several pension board trustees told news groups that they considered it too big of a risk.
GM moved into the Renaissance Center, a seven-building complex in downtown Detroit in 1996. The automaker bought the complex for $75 million, and then borrowed $500 million against it for remodeling, according to a Detroit News story by Robert Snell. As reported May 9 by CPN, GM paid $626 million to take full control of the building.
John Blanchard, GM’s executive director of worldwide real estate, could not be reached by press time, but has stated this week that if the deal with the pension funds could not worked out, the auto giant would consider selling the Renaissance Center and leasing back space. He said the company is committed to staying in Detroit. The proposed refinancing comes as GM is trying to raise $15 billion to provide cash flow through 2010, according to published reports. Sphere: Related Content
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund.
But GM may have trouble getting the first pension board to invest. Several pension board trustees told news groups that they considered it too big of a risk.
GM moved into the Renaissance Center, a seven-building complex in downtown Detroit in 1996. The automaker bought the complex for $75 million, and then borrowed $500 million against it for remodeling, according to a Detroit News story by Robert Snell. As reported May 9 by CPN, GM paid $626 million to take full control of the building.
John Blanchard, GM’s executive director of worldwide real estate, could not be reached by press time, but has stated this week that if the deal with the pension funds could not worked out, the auto giant would consider selling the Renaissance Center and leasing back space. He said the company is committed to staying in Detroit. The proposed refinancing comes as GM is trying to raise $15 billion to provide cash flow through 2010, according to published reports. Sphere: Related Content
Tuesday, September 30, 2008
Kesko Completes EUR 44 Million Sale Leaseback of 23 Stores in Finland
Kesko Web Site - September 30, 2008
The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros (a 6.2% initial yield) and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007. Sphere: Related Content
The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros (a 6.2% initial yield) and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007. Sphere: Related Content
Monday, September 29, 2008
Pep Boys Completes $77.5 Million Sale Leaseback of 22 Auto Parts Stores
CoStar Group - September 24, 2008
Corporate Partners Capital Group Inc., a Los Angeles-based company that specializes in structuring purchase-leaseback transactions with corporations, acquired 22 properties in various locations across the United States from The Pep Boys Manny Moe & Jack of California and Wachovia Development Corp. The aggregate purchase price was $77.5 million, or approximately $177.50 per square foot, and had an estimated cap rate of 7.5%.
The 22-retail properties total 474,434 square feet. The buyer entered into agreements to lease the properties back to be operated as Pep Boys stores.
Howard Sands of Corporate Partners Capital Group Inc. represented the buyer in-house. Harry Yanowitz, Alexander Spooner and Joe Cireli of Pep Boys and John Altmeyer of Wachovia represented the sellers in-house. Sphere: Related Content
Corporate Partners Capital Group Inc., a Los Angeles-based company that specializes in structuring purchase-leaseback transactions with corporations, acquired 22 properties in various locations across the United States from The Pep Boys Manny Moe & Jack of California and Wachovia Development Corp. The aggregate purchase price was $77.5 million, or approximately $177.50 per square foot, and had an estimated cap rate of 7.5%.
The 22-retail properties total 474,434 square feet. The buyer entered into agreements to lease the properties back to be operated as Pep Boys stores.
Howard Sands of Corporate Partners Capital Group Inc. represented the buyer in-house. Harry Yanowitz, Alexander Spooner and Joe Cireli of Pep Boys and John Altmeyer of Wachovia represented the sellers in-house. Sphere: Related Content
Friday, September 26, 2008
Del Taco Completes $24 Million Sale Leaseback of 15 Store Restaurant Portfolio
Cityfeet / GlobeSt - September 24, 2008
A locally based group of investors in a 1031 exchange have acquired a 15-store portfolio from Del Taco restaurants in a sale-leaseback, according to Faris Lee Investments, which brokered the deal. The restaurants are located in Arizona, California and Nevada and were built between 1998 and 2002.
The buyer was Innovative Property Partners LLC, a group of investors based in Orange County, who were represented by Richard Walter and Dennis Vaccaro of Faris Lee, which is based in Irvine. Del Taco Corp., which represented itself in the transaction, executed 20-year absolute NNN leases with the buyer and will continue to operate the properties.
Del Taco was founded in 1961 and operates or franchisees more than 510 restaurants in 16 states. The company is based in the Orange County city of Lake Forest.
According to Walter, who is president of Faris Lee Investments, “Del Taco Corp. was interested in a quick sale of the properties, and we were able to close the sale in just 45 days, which also met the needs of the 1031 buyer.” Walter notes that closing on 15 different sites in three different states “required a great deal of work during the due diligence process” in order to close by the deadline and to meet the expectations of both the seller and the buyer.
Walter adds that Faris Lee Capital, the financing arm for Faris Lee, coordinated and placed the financing for the buyer, who was attracted to the long-term leases and well located properties. He notes that Faris Lee is seeking other sale-leaseback opportunities to match buyer needs with niche opportunities like this one." Sphere: Related Content
A locally based group of investors in a 1031 exchange have acquired a 15-store portfolio from Del Taco restaurants in a sale-leaseback, according to Faris Lee Investments, which brokered the deal. The restaurants are located in Arizona, California and Nevada and were built between 1998 and 2002.
The buyer was Innovative Property Partners LLC, a group of investors based in Orange County, who were represented by Richard Walter and Dennis Vaccaro of Faris Lee, which is based in Irvine. Del Taco Corp., which represented itself in the transaction, executed 20-year absolute NNN leases with the buyer and will continue to operate the properties.
Del Taco was founded in 1961 and operates or franchisees more than 510 restaurants in 16 states. The company is based in the Orange County city of Lake Forest.
According to Walter, who is president of Faris Lee Investments, “Del Taco Corp. was interested in a quick sale of the properties, and we were able to close the sale in just 45 days, which also met the needs of the 1031 buyer.” Walter notes that closing on 15 different sites in three different states “required a great deal of work during the due diligence process” in order to close by the deadline and to meet the expectations of both the seller and the buyer.
Walter adds that Faris Lee Capital, the financing arm for Faris Lee, coordinated and placed the financing for the buyer, who was attracted to the long-term leases and well located properties. He notes that Faris Lee is seeking other sale-leaseback opportunities to match buyer needs with niche opportunities like this one." Sphere: Related Content
Wednesday, September 17, 2008
Citibank Seeking Sale Leaseback of 18 Bay Area Bank Branches
Silicon Valley / San Jose Business Journal - September 15, 2008
Citibank, the retail banking operation of financial services giant Citigroup Inc., has put 18 Bay Area branch locations on the market.
The locations for sale -- which include sites in Burlingame, San Mateo, Los Altos, Palo Alto, San Jose, Santa Clara and Sunnyvale -- are exceptional, said retail broker Don Tepman.
“Most, if not all, of these properties are very well located and I consider them to be among the Bay Area’s top real estate sites for retail,” Tepman said. “Rarely do we see product of this quality with such strong credit tenant backing.”
Citibank is offering to sell the locations and to sign 10-year leases plus options, according to an offering document. The company is promising annual 3 percent rent increases. The sites are for sale individually and en masse.
Citi has retained CB Richard Ellis to handle the offering. Sphere: Related Content
Citibank, the retail banking operation of financial services giant Citigroup Inc., has put 18 Bay Area branch locations on the market.
The locations for sale -- which include sites in Burlingame, San Mateo, Los Altos, Palo Alto, San Jose, Santa Clara and Sunnyvale -- are exceptional, said retail broker Don Tepman.
“Most, if not all, of these properties are very well located and I consider them to be among the Bay Area’s top real estate sites for retail,” Tepman said. “Rarely do we see product of this quality with such strong credit tenant backing.”
Citibank is offering to sell the locations and to sign 10-year leases plus options, according to an offering document. The company is promising annual 3 percent rent increases. The sites are for sale individually and en masse.
Citi has retained CB Richard Ellis to handle the offering. Sphere: Related Content
Sunday, September 14, 2008
State of California Enters 20 Year Lease for Highway Patrol HQ in Sacramento
GlobeSt.com - September 12, 2008
The state has inked a 20-year lease for a 285,000-sf, three-building low-rise campus here on behalf of the California Highway Patrol. Known as Continental Plaza, the buildings will be used to consolidate CHP’s administrative functions, which are now spread among several buildings in the Sacramento area. The law enforcement agency is slated to fill its new headquarters with 1,000 employees next September.
The state’s lease rate starts at $2.44 per sf per month, fully serviced with the exception of utilities, an information office with the state Department of General Services tells GlobeSt.com. The lease agreement includes a $41-million ($144 per-sf) tenant improvement allowance, annual rental rate bumps (approximately 1.5%) and a purchase option that may be exercised at the end of either year 10 or year 20. If exercised at year 10, the purchase price would be based on a 7% cap rate on the property’s NOI for year 11, according to DGS. If exercised at the end of the lease term, the purchase price would be based on a 7% cap rate on the NOI rent from year 19. If the state pays rent for 20 years, it would pay the property owner $193 million, according to DGS.
“The fact that Continental Plaza was an existing facility offered many benefits, including cost savings to the agency, an accelerated occupancy schedule and the reuse of an existing structure, [which is] part of the state’s ‘green’ strategy,” Newland says. Per state requirements, all three buildings will be renovated with the goal of receiving a LEED-NC-Silver certification from the US Green Building Council.
The property owner is Grove Investment Co. of Newport Beach, CA. Grubb & Ellis brokers Bill Newland, Clyde Rawlings and Toss Vallentine represented the building owner in the transaction. Cornish & Carey represented the state. Sphere: Related Content
The state has inked a 20-year lease for a 285,000-sf, three-building low-rise campus here on behalf of the California Highway Patrol. Known as Continental Plaza, the buildings will be used to consolidate CHP’s administrative functions, which are now spread among several buildings in the Sacramento area. The law enforcement agency is slated to fill its new headquarters with 1,000 employees next September.
The state’s lease rate starts at $2.44 per sf per month, fully serviced with the exception of utilities, an information office with the state Department of General Services tells GlobeSt.com. The lease agreement includes a $41-million ($144 per-sf) tenant improvement allowance, annual rental rate bumps (approximately 1.5%) and a purchase option that may be exercised at the end of either year 10 or year 20. If exercised at year 10, the purchase price would be based on a 7% cap rate on the property’s NOI for year 11, according to DGS. If exercised at the end of the lease term, the purchase price would be based on a 7% cap rate on the NOI rent from year 19. If the state pays rent for 20 years, it would pay the property owner $193 million, according to DGS.
“The fact that Continental Plaza was an existing facility offered many benefits, including cost savings to the agency, an accelerated occupancy schedule and the reuse of an existing structure, [which is] part of the state’s ‘green’ strategy,” Newland says. Per state requirements, all three buildings will be renovated with the goal of receiving a LEED-NC-Silver certification from the US Green Building Council.
The property owner is Grove Investment Co. of Newport Beach, CA. Grubb & Ellis brokers Bill Newland, Clyde Rawlings and Toss Vallentine represented the building owner in the transaction. Cornish & Carey represented the state. Sphere: Related Content
Thursday, September 11, 2008
Norske Skog Completes $75 Million Sale Leaseback of HQ in Norway
Reuters - September 9, 2008
Norwegian papermaker Norske Skog (NSG.OL) has sold its headquarters for 429.5 million Norwegian crowns ($75.76 million) and will book a gain of 230 million in the fourth quarter from the property sale, it said on Tuesday.
'The sale of the property is part of the work efforts to reduce Norske Skog's debts,' the company said in a statement.
Norske Skog simultaneously signed a lease agreement on the Oxenoen property in Lysaker with the new owners, Aspelin Ramm and Oslo housing and savings society OBOS, enabling it to stay in the building for some time, the company said. Sphere: Related Content
Norwegian papermaker Norske Skog (NSG.OL) has sold its headquarters for 429.5 million Norwegian crowns ($75.76 million) and will book a gain of 230 million in the fourth quarter from the property sale, it said on Tuesday.
'The sale of the property is part of the work efforts to reduce Norske Skog's debts,' the company said in a statement.
Norske Skog simultaneously signed a lease agreement on the Oxenoen property in Lysaker with the new owners, Aspelin Ramm and Oslo housing and savings society OBOS, enabling it to stay in the building for some time, the company said. Sphere: Related Content
Monday, September 08, 2008
IRS Extends Offer to Settle LILO & SILO Law Suits
The Providence Journal / Bloomberg - September 6, 2008
The Internal Revenue Service gave 45 companies, including Providence-based Textron Inc. as well as utilities and banks, an extra month to decide whether to settle disputes over their use of a leasing tax shelter ruled improper by several courts.
In exchange for terminating the transactions, known as lease-in, lease-out or sale-in, lease-out deals, the companies can keep 20 percent of their savings and the IRS will waive some penalties.
The settlement offer involves shelters such as the one used by Wachovia Corp., which an appeals court ruled against in April. The bank said the ruling would cost it $975 million in back taxes.
The tax agency, in an announcement on its Web site, said companies have 60 days to respond to an offer letter it began sending on Aug. 6. The extension from 30 days was granted “to provide taxpayers with sufficient time to evaluate the offer,” the Web site says.
Under the terms of the IRS’ offers, the companies must use their best efforts to terminate the transactions by Dec. 31. In some cases, the IRS will give taxpayers until Dec. 31, 2010, to unwind the deals.
Companies must agree to concede 80 percent of all deductions associated with the transactions for taxes due in years before 2008. In exchange, the IRS won’t tax certain income generated by the transactions for the same years.
An IRS release said the government won’t agree to settle any of a taxpayer’s shelter-related tax issues unless the bank or company accepts the settlement terms for all of its lease transactions.
Companies have been trying to decide whether to accept the settlement or take their chances in court, said Ralph Izzo, chief executive officer of one of the 45 targeted companies, Public Service Enterprise Group Inc., owner of New Jersey’s largest utility. The IRS has scored victories in federal courts against BB&T Corp., Fifth Third Bancorp and KeyCorp.
Izzo said at an investor conference that, in his company’s case, taking the settlement may exceed cash reserves it has set aside.
The settlement offer affects a “broad range of companies,” Shulman said last month. In addition to banks, companies such as Altria Group Inc., the largest U.S. tobacco company, and Textron, maker of Cessna aircraft, engaged in the transactions.
The tax shelters, known by the acronyms LILO and SILO, entail letting banks or other companies to buy subway cars or other public assets and lease them back to cities or transit authorities. The banks and companies claimed tax deductions, such as depreciation on the equipment.
The leasing arrangements provided revenue to cities, transit systems, airport authorities and other municipal services.
Promoters of the transactions, such as Brussels-based Dexia SA, told clients that the arrangements would let buyers save on taxes as the assets depreciated, although the companies wouldn’t own or operate the equipment or services. The IRS challenged the arrangements in court, saying the purchase-and-lease transactions were shams designed to produce tax deductions on assets that the banks and companies never truly owned.
From 2001 to 2003, at least 16 U.S. companies bought transportation assets from cities through 35 leasing agreements. Other companies sought tax breaks by leasing municipal services, such as sewer lines in Germany and the Alamodome arena in San Antonio, as well as emergency 911 call centers in Chicago and air-traffic-control systems in Australia, Canada and France.
Shulman said about 1,000 separate transactions could be unwound as a result of the settlement. Sphere: Related Content
The Internal Revenue Service gave 45 companies, including Providence-based Textron Inc. as well as utilities and banks, an extra month to decide whether to settle disputes over their use of a leasing tax shelter ruled improper by several courts.
In exchange for terminating the transactions, known as lease-in, lease-out or sale-in, lease-out deals, the companies can keep 20 percent of their savings and the IRS will waive some penalties.
The settlement offer involves shelters such as the one used by Wachovia Corp., which an appeals court ruled against in April. The bank said the ruling would cost it $975 million in back taxes.
The tax agency, in an announcement on its Web site, said companies have 60 days to respond to an offer letter it began sending on Aug. 6. The extension from 30 days was granted “to provide taxpayers with sufficient time to evaluate the offer,” the Web site says.
Under the terms of the IRS’ offers, the companies must use their best efforts to terminate the transactions by Dec. 31. In some cases, the IRS will give taxpayers until Dec. 31, 2010, to unwind the deals.
Companies must agree to concede 80 percent of all deductions associated with the transactions for taxes due in years before 2008. In exchange, the IRS won’t tax certain income generated by the transactions for the same years.
An IRS release said the government won’t agree to settle any of a taxpayer’s shelter-related tax issues unless the bank or company accepts the settlement terms for all of its lease transactions.
Companies have been trying to decide whether to accept the settlement or take their chances in court, said Ralph Izzo, chief executive officer of one of the 45 targeted companies, Public Service Enterprise Group Inc., owner of New Jersey’s largest utility. The IRS has scored victories in federal courts against BB&T Corp., Fifth Third Bancorp and KeyCorp.
Izzo said at an investor conference that, in his company’s case, taking the settlement may exceed cash reserves it has set aside.
The settlement offer affects a “broad range of companies,” Shulman said last month. In addition to banks, companies such as Altria Group Inc., the largest U.S. tobacco company, and Textron, maker of Cessna aircraft, engaged in the transactions.
The tax shelters, known by the acronyms LILO and SILO, entail letting banks or other companies to buy subway cars or other public assets and lease them back to cities or transit authorities. The banks and companies claimed tax deductions, such as depreciation on the equipment.
The leasing arrangements provided revenue to cities, transit systems, airport authorities and other municipal services.
Promoters of the transactions, such as Brussels-based Dexia SA, told clients that the arrangements would let buyers save on taxes as the assets depreciated, although the companies wouldn’t own or operate the equipment or services. The IRS challenged the arrangements in court, saying the purchase-and-lease transactions were shams designed to produce tax deductions on assets that the banks and companies never truly owned.
From 2001 to 2003, at least 16 U.S. companies bought transportation assets from cities through 35 leasing agreements. Other companies sought tax breaks by leasing municipal services, such as sewer lines in Germany and the Alamodome arena in San Antonio, as well as emergency 911 call centers in Chicago and air-traffic-control systems in Australia, Canada and France.
Shulman said about 1,000 separate transactions could be unwound as a result of the settlement. Sphere: Related Content
Saturday, August 30, 2008
Southern Cross Healthcare Agrees to £31.1 Million Sale Leaseback of Nine UK Care Homes
RTTNews - August 29, 2008
Southern Cross Healthcare, a provider of UK care home services, announced the sale and long-term leaseback of the freehold interests in nine care homes to a subsidiary of Daejan Holdings Plc for £31.1 million.
The gross asset value of the nine freehold interests is £37.2 million. The company said it would incur a book loss of £6.1 million on completion of the sale. It will pay £2.5 million for these homes as annual rent (8.0% cap rate.)
The company said it will use the proceeds from the divestment to partially pay down two syndicated credit facilities and a bilateral credit facility put in place earlier this year to fund additional acquisitions and developments.
Further, Bill Colvin, chief executive of Southern Cross, said, "Discussions are ongoing with other potential purchasers regarding further 20 freeholds to be divested and the proceeds from any sale will also be used to further reduce borrowings. Southern Cross is continuing to discuss with its banking syndicate the provision of longer term funding arrangements for the Group." Sphere: Related Content
Southern Cross Healthcare, a provider of UK care home services, announced the sale and long-term leaseback of the freehold interests in nine care homes to a subsidiary of Daejan Holdings Plc for £31.1 million.
The gross asset value of the nine freehold interests is £37.2 million. The company said it would incur a book loss of £6.1 million on completion of the sale. It will pay £2.5 million for these homes as annual rent (8.0% cap rate.)
The company said it will use the proceeds from the divestment to partially pay down two syndicated credit facilities and a bilateral credit facility put in place earlier this year to fund additional acquisitions and developments.
Further, Bill Colvin, chief executive of Southern Cross, said, "Discussions are ongoing with other potential purchasers regarding further 20 freeholds to be divested and the proceeds from any sale will also be used to further reduce borrowings. Southern Cross is continuing to discuss with its banking syndicate the provision of longer term funding arrangements for the Group." Sphere: Related Content
Wednesday, August 27, 2008
Life Time Fitness Complets $100 Millon Sale Leaseback of Four US Fitness Centers
MarketWatch / Business Wire - August 25, 2008
Senior Housing Properties Trust (SNH) today announced that it has acquired four health and wellness centers operated by Life Time Fitness, Inc. (LTM) for $100 million. Simultaneously, SNH entered into a long term lease arrangement with Life Time Fitness for these same properties.
The rent payable by Life Time Fitness to SNH for these four health and wellness centers will be $9.1 million per year (9.1% cap rate), plus fixed increases during the lease term. These health and wellness centers have a lease term ending in 2028, plus tenant renewal options thereafter. SNH has funded this transaction by drawing under its revolving bank credit facility.
Senior Housing Properties Trust is a real estate investment trust which owns independent and assisted living communities, nursing homes, rehabilitation hospitals, wellness centers and medical office buildings throughout the United States. SNH is headquartered in Newton, MA. Sphere: Related Content
Senior Housing Properties Trust (SNH) today announced that it has acquired four health and wellness centers operated by Life Time Fitness, Inc. (LTM) for $100 million. Simultaneously, SNH entered into a long term lease arrangement with Life Time Fitness for these same properties.
The rent payable by Life Time Fitness to SNH for these four health and wellness centers will be $9.1 million per year (9.1% cap rate), plus fixed increases during the lease term. These health and wellness centers have a lease term ending in 2028, plus tenant renewal options thereafter. SNH has funded this transaction by drawing under its revolving bank credit facility.
Senior Housing Properties Trust is a real estate investment trust which owns independent and assisted living communities, nursing homes, rehabilitation hospitals, wellness centers and medical office buildings throughout the United States. SNH is headquartered in Newton, MA. Sphere: Related Content
Sunday, August 24, 2008
AT&T Completes $72 Million Sale Leaseback of Atlanta Office Complex
Jones Lang LaSalle Web Site - August 22, 2008
Jones Lang LaSalle announced today it has closed the sale and leaseback of the two-building complex in Atlanta’s Northlake/Lavista submarket for AT&T. Equity Capital Management purchased the 406,292 square foot complex for $72 million.
At closing, AT&T executed a long-term leaseback for for both 2245 and 2247 Northlake Parkway in Tucker, Georgia, signaling its continued commitment to the facility and market.
This transaction marks the first closing within the Jones Lang LaSalle capital markets group by a newly-merged/legacy Staubach team. Managing Directors Jay Koster (New York) and Brad Armstrong (Atlanta) completed this assignment along with Vice Presidents Mike Hochanadel and Chris Wagner. The same transaction team completed the $275.2 million, 1.1 million square foot, sale-leaseback of Lenox Park, located in Atlanta’s Buckhead submarket, for AT&T in May of this year.
The Class-A property is located in the northeast Atlanta metropolitan area in the city of Tucker. It has immediate access to I-285 and is just three miles from the I-85/I-285 junction. Atlanta’s Hartsfield-Jackson International Airport is less than 25 minutes away, and the property is just 15 minutes from Dekalb Peachtree Airport. The building known as 2245 Northlake Parkway has three stories and was built in 1980. The building known as 2247 Northlake Parkway is a 10-story building built in 2000. Combined, the properties have more than 1,500 parking spaces, both structured and surface. Sphere: Related Content
Jones Lang LaSalle announced today it has closed the sale and leaseback of the two-building complex in Atlanta’s Northlake/Lavista submarket for AT&T. Equity Capital Management purchased the 406,292 square foot complex for $72 million.
At closing, AT&T executed a long-term leaseback for for both 2245 and 2247 Northlake Parkway in Tucker, Georgia, signaling its continued commitment to the facility and market.
This transaction marks the first closing within the Jones Lang LaSalle capital markets group by a newly-merged/legacy Staubach team. Managing Directors Jay Koster (New York) and Brad Armstrong (Atlanta) completed this assignment along with Vice Presidents Mike Hochanadel and Chris Wagner. The same transaction team completed the $275.2 million, 1.1 million square foot, sale-leaseback of Lenox Park, located in Atlanta’s Buckhead submarket, for AT&T in May of this year.
The Class-A property is located in the northeast Atlanta metropolitan area in the city of Tucker. It has immediate access to I-285 and is just three miles from the I-85/I-285 junction. Atlanta’s Hartsfield-Jackson International Airport is less than 25 minutes away, and the property is just 15 minutes from Dekalb Peachtree Airport. The building known as 2245 Northlake Parkway has three stories and was built in 1980. The building known as 2247 Northlake Parkway is a 10-story building built in 2000. Combined, the properties have more than 1,500 parking spaces, both structured and surface. Sphere: Related Content
Friday, August 22, 2008
General Reinsurance Signs 20 Year Lease for Stamford HQ
BNET / Real Estate Weekly - August 20, 2008
A team that recently joined Jones Lang LaSalle through its merger with The Staubach Company has completed a new direct lease transaction for General Reinsurance Corp. at Building and Land Technology's Long Ridge Corporate Center campus in Stamford, Conn. The reinsurance company signed a 20-year lease for the entire 310,000 s/f 120 Long Ridge Road office building.
The tenant was represented by Brian Higgins, managing director--brokerage, Jay Koster, managing director--capital markets, and Chris Kraus, managing director--brokerage, all with Jones Lang LaSalle's New York office. The team worked closely with Michael A. Rea, vice president with Gen Re, throughout the process. Property owner Building and Land Technology was represented in-house by Carl Kuehner, chief executive officer, and Paul Kuehner, chief financial officer.
Gen Re is relocating to 120 Long Ridge Road from 695 East Main Street, also known as Financial Centre, which had served as the reinsurer's headquarters for the past 25 years. The company's master lease at Financial Centre is set to expire in 2010. Gen Re plans to occupy its new headquarters space at 120 Long Ridge Road in late 2009. Sphere: Related Content
A team that recently joined Jones Lang LaSalle through its merger with The Staubach Company has completed a new direct lease transaction for General Reinsurance Corp. at Building and Land Technology's Long Ridge Corporate Center campus in Stamford, Conn. The reinsurance company signed a 20-year lease for the entire 310,000 s/f 120 Long Ridge Road office building.
The tenant was represented by Brian Higgins, managing director--brokerage, Jay Koster, managing director--capital markets, and Chris Kraus, managing director--brokerage, all with Jones Lang LaSalle's New York office. The team worked closely with Michael A. Rea, vice president with Gen Re, throughout the process. Property owner Building and Land Technology was represented in-house by Carl Kuehner, chief executive officer, and Paul Kuehner, chief financial officer.
Gen Re is relocating to 120 Long Ridge Road from 695 East Main Street, also known as Financial Centre, which had served as the reinsurer's headquarters for the past 25 years. The company's master lease at Financial Centre is set to expire in 2010. Gen Re plans to occupy its new headquarters space at 120 Long Ridge Road in late 2009. Sphere: Related Content
AT&T Completes $345 Million Sale Leaseback of Dallas HQ
Atlanta Business Chronicle - August 20, 2008
An otherwise pretty mundane summer 2008 in the Atlanta commercial real estate marketplace is closing out with the biggest of bangs, thanks to a mega-deal involving several big names and a high-profile property.
In a blockbuster, $345 million transaction that closed Aug. 14, global telecommunications provider AT&T Inc. (NYSE: T) entered into a sale-leaseback agreement for AT&T Tower, the 1.8 million-square-foot building at 675 West Peachtree St. that is the most visible component of its three-building Southeastern regional headquarters complex.
AT&T sold the landmark 47-story Midtown building — which was known as the BellSouth Tower until the $86 billion AT&T/BellSouth merger in 2006 — to a wholly owned subsidiary of Icahn Enterprises L.P., a holding company headed by billionaire financier and investor Carl Icahn. As part of the transaction, AT&T agreed to lease the building back on an unspecified mid- to long-term basis.
On the brokerage side, the deal was negotiated by a Jones Lang LaSalle Inc. capital markets team comprising managing directors Jay Koster and Brad Armstrong, along with vice presidents Mike Hochanadel and Chris Wagner. Koster and Hochanadel are based in JLL’s New York office, while Armstrong and Wagner are part of the real estate services provider’s Atlanta operations. Sphere: Related Content
An otherwise pretty mundane summer 2008 in the Atlanta commercial real estate marketplace is closing out with the biggest of bangs, thanks to a mega-deal involving several big names and a high-profile property.
In a blockbuster, $345 million transaction that closed Aug. 14, global telecommunications provider AT&T Inc. (NYSE: T) entered into a sale-leaseback agreement for AT&T Tower, the 1.8 million-square-foot building at 675 West Peachtree St. that is the most visible component of its three-building Southeastern regional headquarters complex.
AT&T sold the landmark 47-story Midtown building — which was known as the BellSouth Tower until the $86 billion AT&T/BellSouth merger in 2006 — to a wholly owned subsidiary of Icahn Enterprises L.P., a holding company headed by billionaire financier and investor Carl Icahn. As part of the transaction, AT&T agreed to lease the building back on an unspecified mid- to long-term basis.
On the brokerage side, the deal was negotiated by a Jones Lang LaSalle Inc. capital markets team comprising managing directors Jay Koster and Brad Armstrong, along with vice presidents Mike Hochanadel and Chris Wagner. Koster and Hochanadel are based in JLL’s New York office, while Armstrong and Wagner are part of the real estate services provider’s Atlanta operations. Sphere: Related Content
Thursday, August 21, 2008
Tesco Completes $1.1 Billion Sale Leaseback of 13 UK Stores & Distribution Center
Bloomberg - August 21, 2008
Tesco Plc, the U.K.'s biggest retailer, sold properties to real-estate investors for 605 million pounds ($1.1 billion), its fourth such disposal in two years, freeing up capital for overseas expansion.
The 13 stores and a distribution center were purchased by four buyers, including investment arms of insurers Prudential Plc and Sun Life Financial Inc., and represent 2.4 percent of the value of the grocer's stores, Cheshunt, England-based Tesco said today. The company is leasing back the properties for 20 years, with the right to extend the contracts.
Tesco has about 1,780 U.K. outlets. It gets more than 25 percent of its sales abroad and entered the U.S. last year. Over the past two years, rising values for property assets had lured investors to retailers such as J Sainsbury Plc, which rebuffed demands for a real-estate split.
``Tesco freehold property sales show that there is still good pension-fund appetite for supermarkets,'' analyst Nick Bubb of Pali International said in an e-mailed note.
The disposal is part of Tesco's plan, announced two years ago, to raise 5 billion pounds through property sales, of which it has so far raised 2 billion pounds, including today's announcement.
The stores all pay landlords a return of at least 4.88 percent on their investment as a percentage of the purchase price, Tesco said. The company has estimated the value of all of its real estate at 31 billion pounds.
One of the buyers was the Universities Superannuation Scheme, Britain's second-largest pension fund, which runs money for academics and college staff. Tesco formed a joint venture with USS that will own the property.
The rest of the properties were bought by Prudential Plc's Prupim property-investment arm, Sun Life's Canada Life division, and LaSalle Investment Management, a unit of commercial real- estate broker Jones Lang LaSalle Inc. Sphere: Related Content
Tesco Plc, the U.K.'s biggest retailer, sold properties to real-estate investors for 605 million pounds ($1.1 billion), its fourth such disposal in two years, freeing up capital for overseas expansion.
The 13 stores and a distribution center were purchased by four buyers, including investment arms of insurers Prudential Plc and Sun Life Financial Inc., and represent 2.4 percent of the value of the grocer's stores, Cheshunt, England-based Tesco said today. The company is leasing back the properties for 20 years, with the right to extend the contracts.
Tesco has about 1,780 U.K. outlets. It gets more than 25 percent of its sales abroad and entered the U.S. last year. Over the past two years, rising values for property assets had lured investors to retailers such as J Sainsbury Plc, which rebuffed demands for a real-estate split.
``Tesco freehold property sales show that there is still good pension-fund appetite for supermarkets,'' analyst Nick Bubb of Pali International said in an e-mailed note.
The disposal is part of Tesco's plan, announced two years ago, to raise 5 billion pounds through property sales, of which it has so far raised 2 billion pounds, including today's announcement.
The stores all pay landlords a return of at least 4.88 percent on their investment as a percentage of the purchase price, Tesco said. The company has estimated the value of all of its real estate at 31 billion pounds.
One of the buyers was the Universities Superannuation Scheme, Britain's second-largest pension fund, which runs money for academics and college staff. Tesco formed a joint venture with USS that will own the property.
The rest of the properties were bought by Prudential Plc's Prupim property-investment arm, Sun Life's Canada Life division, and LaSalle Investment Management, a unit of commercial real- estate broker Jones Lang LaSalle Inc. Sphere: Related Content
Tuesday, August 19, 2008
Bulgarian Telecom Planning EUR 300 Million Sale Leaseback of 100 Properties
Estates Gazette is reporting that Bulgaria’s former state telecom operator Bulgarian Telecommunications Co (BTC) is seeking international investors for a large 20-year sale-and-leaseback transaction.
The company will reportedly market a €300m portfolio of its most valuable 100 sites in September, including the Telecom Palace in Sophia, which could be redeveloped. BTC will lease back some of the offices and warehouses for up to 20 years, offering the rest for development. The initial yield on the 3.2m sq ft portfolio will be 10%.
Cushman & Wakefield affiliate Forton International is representing BTC which is reviewing whether it needs to own any of its 2,000 properties. BTC wants to release equity to invest in core operations.
BTC was privatised in 2004 and is now owned by US insurance giant AIG. Sphere: Related Content
The company will reportedly market a €300m portfolio of its most valuable 100 sites in September, including the Telecom Palace in Sophia, which could be redeveloped. BTC will lease back some of the offices and warehouses for up to 20 years, offering the rest for development. The initial yield on the 3.2m sq ft portfolio will be 10%.
Cushman & Wakefield affiliate Forton International is representing BTC which is reviewing whether it needs to own any of its 2,000 properties. BTC wants to release equity to invest in core operations.
BTC was privatised in 2004 and is now owned by US insurance giant AIG. Sphere: Related Content
Canadian Tire Agrees to CAN $174 Million Sale Leaseback of 12 Stores Across Canada
The Chronicle Herald - August 19, 2008
Hard goods retailer Canadian Tire Corp. says it has struck a deal to sell and lease back 12 of its store properties for $174 million. Canadian Tire said late Monday the company will book a pre-tax gain on the sale of about $70 million. The transaction is subject to Competition Act approval and is expected to close in September.
The properties are located across Canada and include recently built or expanded Canadian Tire stores. Six of the properties also have a Mark’s Work Wearhouse outlet, the retailer’s clothing division.
Canadian Tire owns about 74 per cent of its store network and leases the rest of its other retail properties. The properties sold Monday represent about four per cent of Canadian Tire’s total real estate portfolio.
"While we continue to see real value in owning the majority of our real estate assets, carefully selected sale-leasebacks enable us to monetize the value of select properties creating financial flexibility while maintaining our overall operating flexibility." said Tom Gauld, president and CEO of the company.
"The properties included in this transaction are locations featuring stores that are either new or recently expanded so we do not see a need to relocate these stores in the foreseeable future. "This enables us to monetize these sites at attractive rates while creating financial flexibility."
Canadian Tire did not identify the buyer or buyers of the retail properties. Earlier this summer, however, the company sold an Ottawa store property for $40 million to RioCan Real Estate Investment Trust, Canada’s largest shopping mall owner, in a sale-leaseback deal.
In its release late Monday, Canadian Tire said it will continue to selectively look at cashing in on its extensive real estate assets, including two urban Canadian Tire stores and an Eastern Canada warehouse announced earlier this year.
Canadian Tire operates 1,170 general merchandise and apparel retail stores and gasoline stations across Canada. The company, with 57,000 employees, sells auto parts, sports and lesure equipment and home products. Sphere: Related Content
Hard goods retailer Canadian Tire Corp. says it has struck a deal to sell and lease back 12 of its store properties for $174 million. Canadian Tire said late Monday the company will book a pre-tax gain on the sale of about $70 million. The transaction is subject to Competition Act approval and is expected to close in September.
The properties are located across Canada and include recently built or expanded Canadian Tire stores. Six of the properties also have a Mark’s Work Wearhouse outlet, the retailer’s clothing division.
Canadian Tire owns about 74 per cent of its store network and leases the rest of its other retail properties. The properties sold Monday represent about four per cent of Canadian Tire’s total real estate portfolio.
"While we continue to see real value in owning the majority of our real estate assets, carefully selected sale-leasebacks enable us to monetize the value of select properties creating financial flexibility while maintaining our overall operating flexibility." said Tom Gauld, president and CEO of the company.
"The properties included in this transaction are locations featuring stores that are either new or recently expanded so we do not see a need to relocate these stores in the foreseeable future. "This enables us to monetize these sites at attractive rates while creating financial flexibility."
Canadian Tire did not identify the buyer or buyers of the retail properties. Earlier this summer, however, the company sold an Ottawa store property for $40 million to RioCan Real Estate Investment Trust, Canada’s largest shopping mall owner, in a sale-leaseback deal.
In its release late Monday, Canadian Tire said it will continue to selectively look at cashing in on its extensive real estate assets, including two urban Canadian Tire stores and an Eastern Canada warehouse announced earlier this year.
Canadian Tire operates 1,170 general merchandise and apparel retail stores and gasoline stations across Canada. The company, with 57,000 employees, sells auto parts, sports and lesure equipment and home products. Sphere: Related Content
Friday, August 15, 2008
Longs Drug Stores to Pursue $1 Billion Sale Leaseback of Drug Stores, Distribution Centers and Office Buildings
The Modesto Bee - August 13, 2008
Longs Drug Stores, a regional drugstore chain based in Walnut Creek, is being acquired by industry giant CVS Caremark Corp., based in Woonsocket, R.I.
The $2.9 billion acquisition will make CVS Caremark the largest drugstore chain in California, with 830 stores. The company is the leading provider of prescriptions in the United States, and with the acquisition of the 521 Longs stores, it will operate 6,800 drugstores in 41 states and the District of Columbia.
One of the big attractions to buying Longs, said Tom Ryan, CVS chairman, president and chief executive officer, is gaining a strong market position in Central and Northern California and Hawaii. The two chains have few overlapping stores, according to Ryan. The Central and Northern California markets are difficult to enter because of the lack of available drugstore sites, Ryan said. Expanding into the markets by developing its own stores would have taken CVS about 10 years, he said.
Part of the cost of buying the Longs stores would be raised by selling the store properties that Longs owns, along with three distribution centers and three office buildings. The properties would be leased back to CVS, Ryan said. He estimated the value of the Longs properties at $1 billion.
The sale is subject to Longs shareholder approval and federal review. It is expected to be completed during the fourth quarter of this year. Sphere: Related Content
Longs Drug Stores, a regional drugstore chain based in Walnut Creek, is being acquired by industry giant CVS Caremark Corp., based in Woonsocket, R.I.
The $2.9 billion acquisition will make CVS Caremark the largest drugstore chain in California, with 830 stores. The company is the leading provider of prescriptions in the United States, and with the acquisition of the 521 Longs stores, it will operate 6,800 drugstores in 41 states and the District of Columbia.
One of the big attractions to buying Longs, said Tom Ryan, CVS chairman, president and chief executive officer, is gaining a strong market position in Central and Northern California and Hawaii. The two chains have few overlapping stores, according to Ryan. The Central and Northern California markets are difficult to enter because of the lack of available drugstore sites, Ryan said. Expanding into the markets by developing its own stores would have taken CVS about 10 years, he said.
Part of the cost of buying the Longs stores would be raised by selling the store properties that Longs owns, along with three distribution centers and three office buildings. The properties would be leased back to CVS, Ryan said. He estimated the value of the Longs properties at $1 billion.
The sale is subject to Longs shareholder approval and federal review. It is expected to be completed during the fourth quarter of this year. Sphere: Related Content
Sears Completes $56.1 Million Sale Leaseback of Warehouse in PA
Cityfeet.com / GlobeSt.com - August 13, 2008
Sears Holdings Corp. has sold its one-million-sf distribution center at Covington Industrial Park to San Antonio-based USAA Real Estate Co.'s US Industrial REIT II. Published reports say the build-to-suit facility, which opened in April with Sears Logistics Services as its long-term tenant, changed hands for $56.1 million.
James Sheehan, senior director with Cushman & Wakefield Inc.'s Philadelphia office, tells GlobeSt.com that a sizable, brand-new facility like this is "extremely appealing to large institutional investors." Sheehan arranged the sale along C&W's Jerome Kranzel, Jeff Williams, Steve Cooper, Gerry Blinebury and James Vesey.
Completed in 2007, the building is the newest and largest of four facilities at the 800-acre industrial park, developed by Chicago-based First Industrial Realty Trust. It offers 32-foot clear heights, tilt-up concrete walls, ESFR sprinklers, cross-docking and additional trailer storage. Although a confidentiality agreement prevents him from disclosing the per-sf rates that Sears Logistics is paying, Sheehan says industrial rents in the northeastern Pennsylvania corridor range from "the high $3 to $4 range."
First Industrial had secured the Hoffman Estates, IL-based Sears as a build-to-suit tenant in in March 2007. The Sears site is in a portion of the park designated as a Keystone Opportunity Expansion Zone, which provides certain tax abatements through 2013. At that time, GlobeSt.com reported Pennsylvania's Department of Community and Economic Development and the Greater Scranton Chamber of Commerce provided Sears with $90,000 in customized job-training funds. Sphere: Related Content
Sears Holdings Corp. has sold its one-million-sf distribution center at Covington Industrial Park to San Antonio-based USAA Real Estate Co.'s US Industrial REIT II. Published reports say the build-to-suit facility, which opened in April with Sears Logistics Services as its long-term tenant, changed hands for $56.1 million.
James Sheehan, senior director with Cushman & Wakefield Inc.'s Philadelphia office, tells GlobeSt.com that a sizable, brand-new facility like this is "extremely appealing to large institutional investors." Sheehan arranged the sale along C&W's Jerome Kranzel, Jeff Williams, Steve Cooper, Gerry Blinebury and James Vesey.
Completed in 2007, the building is the newest and largest of four facilities at the 800-acre industrial park, developed by Chicago-based First Industrial Realty Trust. It offers 32-foot clear heights, tilt-up concrete walls, ESFR sprinklers, cross-docking and additional trailer storage. Although a confidentiality agreement prevents him from disclosing the per-sf rates that Sears Logistics is paying, Sheehan says industrial rents in the northeastern Pennsylvania corridor range from "the high $3 to $4 range."
First Industrial had secured the Hoffman Estates, IL-based Sears as a build-to-suit tenant in in March 2007. The Sears site is in a portion of the park designated as a Keystone Opportunity Expansion Zone, which provides certain tax abatements through 2013. At that time, GlobeSt.com reported Pennsylvania's Department of Community and Economic Development and the Greater Scranton Chamber of Commerce provided Sears with $90,000 in customized job-training funds. Sphere: Related Content
ECI Seeking $42 Million Sale Leaseback on Petah Tikva HQ
Globes - August 14, 2008
Sources inform ''Globes'' that ECI Telecom Ltd. wants to sell its Petah Tikva headquarters for NIS 150 million in a sale and lease-back deal in long-term contract. The company has already contacted a number of insurance companies about a deal.
This is not the first time that ECI has sought to sell the building. Three months ago, it published a tender for the sale of all its properties for NIS 350 million. The tender included the headquarters, building rights on the same lot in Petah Tikva, and an additional lot in Givat Shmuel. The tender was closed in May after no bids were filed, apparently because the development aspects of the lands on offer were of no interest to insurance companies. Sphere: Related Content
Sources inform ''Globes'' that ECI Telecom Ltd. wants to sell its Petah Tikva headquarters for NIS 150 million in a sale and lease-back deal in long-term contract. The company has already contacted a number of insurance companies about a deal.
This is not the first time that ECI has sought to sell the building. Three months ago, it published a tender for the sale of all its properties for NIS 350 million. The tender included the headquarters, building rights on the same lot in Petah Tikva, and an additional lot in Givat Shmuel. The tender was closed in May after no bids were filed, apparently because the development aspects of the lands on offer were of no interest to insurance companies. Sphere: Related Content
Sunday, August 10, 2008
HVB Seeking Sale Leaseback of 200 Bank Branches in Germany
ADVFN News / Thomson Financial - August 8, 2008
Bayerische Hypo-und-Vereinsbank (HVB), the German unit of UniCredit Spa, is looking for buyers of its estimated 200 branch building under a sale and leaseback deal arrangement, according to Financial Times Deutschland, citing a spokesman for HVB.
It said HVB wants to sell its building properties, including those housing the main administration offices in Munich and Hamburg, to some real estate investors.
It said HVB wants to generate a mid-range three-digit million euros proceeds and is aiming to complete the deal by the end of the year. Sphere: Related Content
Bayerische Hypo-und-Vereinsbank (HVB), the German unit of UniCredit Spa, is looking for buyers of its estimated 200 branch building under a sale and leaseback deal arrangement, according to Financial Times Deutschland, citing a spokesman for HVB.
It said HVB wants to sell its building properties, including those housing the main administration offices in Munich and Hamburg, to some real estate investors.
It said HVB wants to generate a mid-range three-digit million euros proceeds and is aiming to complete the deal by the end of the year. Sphere: Related Content
Friday, August 08, 2008
Northrup Grumman Signs Long Term Lease For Office Tower in El Sugundo, CA
Cityfeet / GlobeSt.com - August 6, 2008
Northrop Grumman Corp. has signed a 10-year, $120 million lease for all 333,000 sf at the 16-story, 101 Continental Blvd. office tower in one of the largest office leases in El Segundo in years. Although others involved in the deal declined to comment, citing confidentiality agreements, Northrop spokesman Brooks McKinney confirms that the aerospace giant will be expanding into the 101 Continental building, which is owned by Los Angeles-based Barker Pacific Group and Prudential Real Estate Investors.
Northrop Grumman is expected to begin moving into the building in phases, beginning in early December, and should fully occupy the building by July of next year. Xerox Corp. has leased space in the building since 1983 and still occupies a portion of the 16-story tower, which was built in 1972 and formerly was known as Xerox Centre. Xerox is slated to move out of its remaining space before the move-in by Northrop Grumman.
According to a report last year on GlobeSt.com, the owners of the 101 Continental building were marketing it as a multi-tenant property, rather than the single-tenant facility that it will be when Northrop Grumman moves in. Barker Pacific Group at the time said that it planned a $30 million renovation of the office tower to transform it to class A multi-tenant space, but how much of the $30 million in renovations will be necessary remains in question now that the office tower will be a single-tenant facility as opposed to multi-tenant.
McKinney tells GlobeSt.com that Northrop Grumman needs the 333,000 sf at 101 Continental for expansion of its Integrated Systems and Information Technology sectors, plus some space for corporate office administrative and engineering support functions. The aerospace giant has been growing of late, reporting a year-over-year earnings increase to $483 million from $472 million and a revenue boost of 10% to $8.6 billion for the second quarter ended June 30. Sphere: Related Content
Northrop Grumman Corp. has signed a 10-year, $120 million lease for all 333,000 sf at the 16-story, 101 Continental Blvd. office tower in one of the largest office leases in El Segundo in years. Although others involved in the deal declined to comment, citing confidentiality agreements, Northrop spokesman Brooks McKinney confirms that the aerospace giant will be expanding into the 101 Continental building, which is owned by Los Angeles-based Barker Pacific Group and Prudential Real Estate Investors.
Northrop Grumman is expected to begin moving into the building in phases, beginning in early December, and should fully occupy the building by July of next year. Xerox Corp. has leased space in the building since 1983 and still occupies a portion of the 16-story tower, which was built in 1972 and formerly was known as Xerox Centre. Xerox is slated to move out of its remaining space before the move-in by Northrop Grumman.
According to a report last year on GlobeSt.com, the owners of the 101 Continental building were marketing it as a multi-tenant property, rather than the single-tenant facility that it will be when Northrop Grumman moves in. Barker Pacific Group at the time said that it planned a $30 million renovation of the office tower to transform it to class A multi-tenant space, but how much of the $30 million in renovations will be necessary remains in question now that the office tower will be a single-tenant facility as opposed to multi-tenant.
McKinney tells GlobeSt.com that Northrop Grumman needs the 333,000 sf at 101 Continental for expansion of its Integrated Systems and Information Technology sectors, plus some space for corporate office administrative and engineering support functions. The aerospace giant has been growing of late, reporting a year-over-year earnings increase to $483 million from $472 million and a revenue boost of 10% to $8.6 billion for the second quarter ended June 30. Sphere: Related Content
Sunday, July 20, 2008
C&S Wholesale Grocers Completes $49 Million Sale leaseback of Distribution Center Near Birmingham
Birmingham Business Journal - July 18, 2008
Bruno's Supermarkets' food distributor C&S Wholesale Grocers recently sold its distribution facility in Oxmoor Valley to a real estate investment trust for nearly $49 million in a sale leaseback transaction.
Illinois-based Inland American Real Estate Trust Inc. purchased the 1.3 million-square-foot distribution facility and leased the facility back to New Hampshire-based C&S for 15 years.
Ogden Deaton with Birmingham's Graham & Co. Inc. brokered the deal along with CB Richard Ellis out of New Hampshire. Sphere: Related Content
Bruno's Supermarkets' food distributor C&S Wholesale Grocers recently sold its distribution facility in Oxmoor Valley to a real estate investment trust for nearly $49 million in a sale leaseback transaction.
Illinois-based Inland American Real Estate Trust Inc. purchased the 1.3 million-square-foot distribution facility and leased the facility back to New Hampshire-based C&S for 15 years.
Ogden Deaton with Birmingham's Graham & Co. Inc. brokered the deal along with CB Richard Ellis out of New Hampshire. Sphere: Related Content
Sunday, July 13, 2008
Indonesia Planning $2.01 Billion Sale Leaseback of Finance Ministry Land and Property
Reuters - July 11, 2008
An Indonesian parliamentary working committee approved the government's plan to issue Islamic bonds, also known as sukuk, late on Thursday, clearing the way for issuance in the domestic and global market this year. Here are some details about the sukuk.
* currency: rupiah-denominated sukuk to be sold in the domestic market and dollar-denominated sukuk abroad.
* timetable: August for the domestic issue and October for the international sukuk.
* underlying assets: 18.371 trillion rupiah ($2.01 billion) of finance ministry land and property assets will back the bonds.
* proceeds: will be used to finance the state budget.
* structure of contract: Ijarah sale-and-leaseback, where the sukuk is backed by the purchase, sale or lease of physical properties.
* maturity: the government can set the debt maturity and has previously said it is looking to borrow for seven to 10 years.
* return: fixed coupon rate
* the parliamentary working commission also approved the government's plans to issue the following instruments: long-term sukuk Al Ijarah, retail sukuk, Islamic treasury bills, sukuk for project financing, and exchangeable sukuk. ($1=9,154 rupiah) Sphere: Related Content
An Indonesian parliamentary working committee approved the government's plan to issue Islamic bonds, also known as sukuk, late on Thursday, clearing the way for issuance in the domestic and global market this year. Here are some details about the sukuk.
* currency: rupiah-denominated sukuk to be sold in the domestic market and dollar-denominated sukuk abroad.
* timetable: August for the domestic issue and October for the international sukuk.
* underlying assets: 18.371 trillion rupiah ($2.01 billion) of finance ministry land and property assets will back the bonds.
* proceeds: will be used to finance the state budget.
* structure of contract: Ijarah sale-and-leaseback, where the sukuk is backed by the purchase, sale or lease of physical properties.
* maturity: the government can set the debt maturity and has previously said it is looking to borrow for seven to 10 years.
* return: fixed coupon rate
* the parliamentary working commission also approved the government's plans to issue the following instruments: long-term sukuk Al Ijarah, retail sukuk, Islamic treasury bills, sukuk for project financing, and exchangeable sukuk. ($1=9,154 rupiah) Sphere: Related Content
Thursday, July 10, 2008
Deutsche Post Completes €1 Billion Sale Leaseback of 1,267 Postal Properties Across Germany
Property Week - July 8, 2008
Lone Star has raised more than €700m (£556m) of bank finance for its €1bn (£795m) purchase of a Deutsche Post property portfolio in Germany.
Lone Star sealed the financing for the sale & leaseback with banks Eurohypo, Natixis, DekaBank and Societe Generale, yesterday. It provided the remaining €300m (£238m) itself.
The fundraising comes after the global private equity investor and fund manager agreed a deal to buy the 1,267 strong portfolio in April in the biggest commercial property deal seen in Germany this year. The deal was struck on behalf of its Lone Star Real Estate Fund.
The portfolio is split 70% mixed-use properties and 30% logistics properties and development sites. The mixed-use properties typically comprise ground floor retail with offices and residential space on top and are 16,000 sq ft in size on average.
The portfolio is spread across Germany with many of the properties in small town centres although some are in the suburbs of major cities such as Munich and Hamburg. The unexpired lease lengths in the portfolio vary from two to ten years.
Knight Frank advised Lone Star and Morgan Stanley advised Deutsche Post. Sphere: Related Content
Lone Star has raised more than €700m (£556m) of bank finance for its €1bn (£795m) purchase of a Deutsche Post property portfolio in Germany.
Lone Star sealed the financing for the sale & leaseback with banks Eurohypo, Natixis, DekaBank and Societe Generale, yesterday. It provided the remaining €300m (£238m) itself.
The fundraising comes after the global private equity investor and fund manager agreed a deal to buy the 1,267 strong portfolio in April in the biggest commercial property deal seen in Germany this year. The deal was struck on behalf of its Lone Star Real Estate Fund.
The portfolio is split 70% mixed-use properties and 30% logistics properties and development sites. The mixed-use properties typically comprise ground floor retail with offices and residential space on top and are 16,000 sq ft in size on average.
The portfolio is spread across Germany with many of the properties in small town centres although some are in the suburbs of major cities such as Munich and Hamburg. The unexpired lease lengths in the portfolio vary from two to ten years.
Knight Frank advised Lone Star and Morgan Stanley advised Deutsche Post. Sphere: Related Content
Tuesday, July 08, 2008
Gilat Satellite Networks Seeking $70 Million Sale Leaseback of Two Office Building in Israel
Globes - July 6, 2008
Sources inform "Globes" that Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) wants to sell its two office buildings for $70-80 million in sell and lease-back deals. The two properties are located in Kiryat Arie in Petah Tikva. The sources added that it has contacted Israel's top insurance companies -- Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) -- about a deal.
The VSAT satellite communications equipment maker and services provider owns two of the four building in the Daniv Park in Kiryat Arie, which were built by Denisra International Ltd. in the late 1990s. Gilat purchased two of the buildings for its own use. Gilat is about to be sold to a consortia led by Gores Group LLC and Mivtach Shamir Holdings Ltd. (TASE:MISH). Sphere: Related Content
Sources inform "Globes" that Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) wants to sell its two office buildings for $70-80 million in sell and lease-back deals. The two properties are located in Kiryat Arie in Petah Tikva. The sources added that it has contacted Israel's top insurance companies -- Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) -- about a deal.
The VSAT satellite communications equipment maker and services provider owns two of the four building in the Daniv Park in Kiryat Arie, which were built by Denisra International Ltd. in the late 1990s. Gilat purchased two of the buildings for its own use. Gilat is about to be sold to a consortia led by Gores Group LLC and Mivtach Shamir Holdings Ltd. (TASE:MISH). Sphere: Related Content
Friday, July 04, 2008
Barclays Completes EUR 65 Million Sale Leaseback of 24 Properties in Spain
Property Week - July 2, 2008
Redevco, the Dutch property company, has bought 24 Barclays banks for €65m (£51.5m).
The 24 banks and commercial buildings have been bought on a purchase and leaseback basis with Barclays on long term leases. The properties are located in prime retail high streets in nine Spanish cities including Madrid, Barcelona, Seville, Málaga, Vigo and Alicante.
Jones Lang LaSalle acted as intermediary in the deal. Redevco is part of a stable of companies owned by the family that founded retailer C&A. Sphere: Related Content
Redevco, the Dutch property company, has bought 24 Barclays banks for €65m (£51.5m).
The 24 banks and commercial buildings have been bought on a purchase and leaseback basis with Barclays on long term leases. The properties are located in prime retail high streets in nine Spanish cities including Madrid, Barcelona, Seville, Málaga, Vigo and Alicante.
Jones Lang LaSalle acted as intermediary in the deal. Redevco is part of a stable of companies owned by the family that founded retailer C&A. Sphere: Related Content
Thursday, July 03, 2008
AT&T Completes $285 Million Sale Leaseback of Lindbergh Center in Atlanta
Atlanta Business Chronicle - July 1, 2008
Wells Real Estate Investment Trust II has acquired Lindbergh Center in Atlanta's Buckhead submarket in a sale-leaseback from AT&T Inc.
Financial terms were not released.
Lindbergh Center has twin 14-story, class-A office buildings connected by a four-story atrium, totaling 955,000 square feet. It is at Piedmont Road and Lindbergh Drive, next to MARTA's Lindbergh station. The development is part of Lindbergh City Center, a 47-acre live/work/play development.
AT&T Services Inc. will continue to occupy 100 percent of the property under a new lease from Wells through 2020.
The deal marks Norcross, Ga.-based Wells REIT II's second recent acquisition from AT&T (NYSE: T) in Buckhead. In May, it bought a five-building, 1-million-square-foot office campus in Buckhead through a sale-leaseback.
"We said a month ago it was rare to acquire a million square feet of prime office property, fully leased to a world-class tenant, in the top submarket of a top-10 city," said Don Henry, chief real estate officer of Wells Real Estate Funds. "A month later, we've done it again."
(Note: SEC filing dated August 21, 2008 indicates a purchase price of $285 million and an initial annual rent of $19.9 million for an initial cap rate of approximately 7.0%.) Sphere: Related Content
Wells Real Estate Investment Trust II has acquired Lindbergh Center in Atlanta's Buckhead submarket in a sale-leaseback from AT&T Inc.
Financial terms were not released.
Lindbergh Center has twin 14-story, class-A office buildings connected by a four-story atrium, totaling 955,000 square feet. It is at Piedmont Road and Lindbergh Drive, next to MARTA's Lindbergh station. The development is part of Lindbergh City Center, a 47-acre live/work/play development.
AT&T Services Inc. will continue to occupy 100 percent of the property under a new lease from Wells through 2020.
The deal marks Norcross, Ga.-based Wells REIT II's second recent acquisition from AT&T (NYSE: T) in Buckhead. In May, it bought a five-building, 1-million-square-foot office campus in Buckhead through a sale-leaseback.
"We said a month ago it was rare to acquire a million square feet of prime office property, fully leased to a world-class tenant, in the top submarket of a top-10 city," said Don Henry, chief real estate officer of Wells Real Estate Funds. "A month later, we've done it again."
(Note: SEC filing dated August 21, 2008 indicates a purchase price of $285 million and an initial annual rent of $19.9 million for an initial cap rate of approximately 7.0%.) Sphere: Related Content
Wednesday, July 02, 2008
HSBC May Unwind £1.1 Billion Sale Leaseback of Canary Wharf HQ
This is Money - June 29, 2008
HSBC is believed to have approached potential buyers for its skyscraper head office in London's Canary Wharf amid fears it might have to repossess the building from the Spanish property group that paid a record £1.1bn for it last year.
Metrovacesa, Spain's largest property company, is trying to refinance the £810m of short-term debt it took out with HSBC to buy 8 Canada Square, in what was Britain's biggest single building sale. Although the loan runs until November, Metrovacesa and the banking giant are thought to have wanted to thrash out a refinancing by the end of this month.
However, with lenders having shut up shop in the credit crunch, borrowings are hard to find.
If Metrovacesa, controlled by the Sanahuja family, cannot refinance, HSBC may take back possession of the 42-storey tower - its global headquarters since 2002. In recent weeks it has made approaches to possible buyers, including sovereign wealth funds.
If HSBC, which has been under attack from investment company Knight Vinke over its troubled US business, repossesses the building, it will be keen to sell it on quickly.
However, the appetite for major property deals has dried up and the bank's advances have been snubbed by at least one potential buyer. A spokesman for HSBC declined to comment. Under the terms of the deal with Metrovacesa, HSBC agreed to lease back the building for 20 years at an annual rent of £43.5m with an option to extend for a further five years.
In Metrovacesa's accounts for last year it had written down the value of the building to £1bn. The Sanahujas, who started their property empire in the Seventies in Barcelona, fought a tough battle for control of Metrovacesa in 2006. Sphere: Related Content
HSBC is believed to have approached potential buyers for its skyscraper head office in London's Canary Wharf amid fears it might have to repossess the building from the Spanish property group that paid a record £1.1bn for it last year.
Metrovacesa, Spain's largest property company, is trying to refinance the £810m of short-term debt it took out with HSBC to buy 8 Canada Square, in what was Britain's biggest single building sale. Although the loan runs until November, Metrovacesa and the banking giant are thought to have wanted to thrash out a refinancing by the end of this month.
However, with lenders having shut up shop in the credit crunch, borrowings are hard to find.
If Metrovacesa, controlled by the Sanahuja family, cannot refinance, HSBC may take back possession of the 42-storey tower - its global headquarters since 2002. In recent weeks it has made approaches to possible buyers, including sovereign wealth funds.
If HSBC, which has been under attack from investment company Knight Vinke over its troubled US business, repossesses the building, it will be keen to sell it on quickly.
However, the appetite for major property deals has dried up and the bank's advances have been snubbed by at least one potential buyer. A spokesman for HSBC declined to comment. Under the terms of the deal with Metrovacesa, HSBC agreed to lease back the building for 20 years at an annual rent of £43.5m with an option to extend for a further five years.
In Metrovacesa's accounts for last year it had written down the value of the building to £1bn. The Sanahujas, who started their property empire in the Seventies in Barcelona, fought a tough battle for control of Metrovacesa in 2006. Sphere: Related Content
Fortis Enters EUR 94 Million Sale Leaseback of Two Office Buildings in Belgium
PropertyEU - June 30, 2008
Belgian property group Befimmo said it has acquired two buildings in Belgium from Fortis Bank for an overall purchase price of EUR 94mln.
The first building is located in Antwerp and comprises two technically independent wings over a total 21,253 m2. The Meir wing is a classic-style building let entirely to Fortis Bank for a term of 27 years while the Wapper wing is a contemporary building used as offices and a bank branch, whichis also let entirely to Fortis Bank for a term of 18 years. The other building is situated at Vital Decosterstraat 42-44 in Leuven and is three-quarters let to Fortis Bank on leases of 12 and 15 years. The rest of the second building is let to other tenants.
For Belgian-Dutch financial services group Fortis, the transaction came as it raised EUR 1.5bn through the issue of new shares and announced a number of other measures to shore up its finances. Fortis said these would also include a total of EUR 1.5bn in sale-and-leaseback transactions of real estate like the deal that was announced with Befimmo. Sphere: Related Content
Belgian property group Befimmo said it has acquired two buildings in Belgium from Fortis Bank for an overall purchase price of EUR 94mln.
The first building is located in Antwerp and comprises two technically independent wings over a total 21,253 m2. The Meir wing is a classic-style building let entirely to Fortis Bank for a term of 27 years while the Wapper wing is a contemporary building used as offices and a bank branch, whichis also let entirely to Fortis Bank for a term of 18 years. The other building is situated at Vital Decosterstraat 42-44 in Leuven and is three-quarters let to Fortis Bank on leases of 12 and 15 years. The rest of the second building is let to other tenants.
For Belgian-Dutch financial services group Fortis, the transaction came as it raised EUR 1.5bn through the issue of new shares and announced a number of other measures to shore up its finances. Fortis said these would also include a total of EUR 1.5bn in sale-and-leaseback transactions of real estate like the deal that was announced with Befimmo. Sphere: Related Content
Wednesday, June 25, 2008
Citigroup Seeking $500 Million Sale Leaseback of HQ & Property Portfolio in India
mydigtalfc.com - June 23, 2008
Reeling under the US bad loans crisis, Citigroup will raise around $500 million by selling some real estate properties in India, including its headquarters in Bandra Kurla Complex, Mumbai.
The company has appointed Jones Lang LaSalle Meghraj to do a valuation of the headquarters. It is also selling some corporate offices and prime residential properties in Mumbai, Delhi and Chennai. In Mumbai, it has already liquidated about 8 residential properties in the last one year. Recently, it sold a property here to a Bollywood actor for a whopping Rs 30 crore.
Industry officials said the company plans to sell the BKC headquarters and lease it back. When contacted by Financial Chronicle, chairman and country head of Jones Lang LaSalle Meghraj, Anuj Puri, refused to comment.
While Citibank plans to layoff around 2,000 people globally, its India operations are unlikely to face job cuts. Its investment banking division is growing here, with the firm having appointed Nalin Nayyar, formerly with Lehman Brothers, as a managing director in April.
Citigroup India's headcount has risen to over 22,000 from 21,000 a year earlier. It also hired a new head of mergers and acquisitions, Sameer Nath, who was shifted from Citigroup's US operations.
The company has stopped renting flats to employees. “Since the company plans to sell and lease it back, builders or developers may not be interested. People like high net worth individuals or private equity investors may buy this property,” said an official with IL&FS Property Manage-ment Services, the facilities management arm of IL&FS. Sphere: Related Content
Reeling under the US bad loans crisis, Citigroup will raise around $500 million by selling some real estate properties in India, including its headquarters in Bandra Kurla Complex, Mumbai.
The company has appointed Jones Lang LaSalle Meghraj to do a valuation of the headquarters. It is also selling some corporate offices and prime residential properties in Mumbai, Delhi and Chennai. In Mumbai, it has already liquidated about 8 residential properties in the last one year. Recently, it sold a property here to a Bollywood actor for a whopping Rs 30 crore.
Industry officials said the company plans to sell the BKC headquarters and lease it back. When contacted by Financial Chronicle, chairman and country head of Jones Lang LaSalle Meghraj, Anuj Puri, refused to comment.
While Citibank plans to layoff around 2,000 people globally, its India operations are unlikely to face job cuts. Its investment banking division is growing here, with the firm having appointed Nalin Nayyar, formerly with Lehman Brothers, as a managing director in April.
Citigroup India's headcount has risen to over 22,000 from 21,000 a year earlier. It also hired a new head of mergers and acquisitions, Sameer Nath, who was shifted from Citigroup's US operations.
The company has stopped renting flats to employees. “Since the company plans to sell and lease it back, builders or developers may not be interested. People like high net worth individuals or private equity investors may buy this property,” said an official with IL&FS Property Manage-ment Services, the facilities management arm of IL&FS. Sphere: Related Content
Bank of America Nears $190 Million Sale Leaseback of Chicago Office Tower
Crain's Chicago - June 25, 2008
Bank of America Corp. is close to a deal to sell the former LaSalle Bank Building for roughly $190 million and lease back as much as two-thirds of the 1.2-million-square-foot landmark tower.
The Charlotte, N.C.-based banking giant is in final negotiations to sell the 44-story skyscraper at 135 S. LaSalle St. to New York-based AmTrust Realty Corp., according to sources familiar with the transaction. B of A inherited the Art Deco classic as part of last year’s acquisition of LaSalle Bank’s parent company.
A B of A spokesman confirmed the negotiations with AmTrust but declined to comment on the price. He also declined to comment on how much space the bank would lease, except to say that no jobs would be affected by the deal.
The bank currently occupies about 800,000 square feet in the building, according to real estate research firm CoStar Group Inc.
As a result of the deal, B of A will reduce its occupancy expenses and cut costs by getting out of the property management business for outside tenants, the spokesman said in an e-mail. “This transaction also would free up capital and allow us to continue to reinvest in our businesses,” he said in the e-mail.
B of A has offered to provide a loan to the winning bidder, sources say, a key boost to the deal at a time when many potential transactions are not moving ahead because of the difficulty of obtaining financing.
The deal could close as soon as next month. An executive with Chicago-based real estate firm Jones Lang LaSalle Inc., which is advising B of A in the sale, declined to comment.
The transaction is believed to be the second Chicago acquisition for AmTrust Realty, a low-profile real estate investment firm owned by brothers Michael and George Karfunkel.
In April 2004, Amtrust acquired 33 W. Monroe St., which once housed the headquarters of defunct accounting firm Arthur Andersen LLP. Since then, Amtrust has leased up the 879,000-square-foot building. The vacancy rate has dropped to 10.1%, compared to 67.1% when purchase was made, according to CoStar. Sphere: Related Content
Bank of America Corp. is close to a deal to sell the former LaSalle Bank Building for roughly $190 million and lease back as much as two-thirds of the 1.2-million-square-foot landmark tower.
The Charlotte, N.C.-based banking giant is in final negotiations to sell the 44-story skyscraper at 135 S. LaSalle St. to New York-based AmTrust Realty Corp., according to sources familiar with the transaction. B of A inherited the Art Deco classic as part of last year’s acquisition of LaSalle Bank’s parent company.
A B of A spokesman confirmed the negotiations with AmTrust but declined to comment on the price. He also declined to comment on how much space the bank would lease, except to say that no jobs would be affected by the deal.
The bank currently occupies about 800,000 square feet in the building, according to real estate research firm CoStar Group Inc.
As a result of the deal, B of A will reduce its occupancy expenses and cut costs by getting out of the property management business for outside tenants, the spokesman said in an e-mail. “This transaction also would free up capital and allow us to continue to reinvest in our businesses,” he said in the e-mail.
B of A has offered to provide a loan to the winning bidder, sources say, a key boost to the deal at a time when many potential transactions are not moving ahead because of the difficulty of obtaining financing.
The deal could close as soon as next month. An executive with Chicago-based real estate firm Jones Lang LaSalle Inc., which is advising B of A in the sale, declined to comment.
The transaction is believed to be the second Chicago acquisition for AmTrust Realty, a low-profile real estate investment firm owned by brothers Michael and George Karfunkel.
In April 2004, Amtrust acquired 33 W. Monroe St., which once housed the headquarters of defunct accounting firm Arthur Andersen LLP. Since then, Amtrust has leased up the 879,000-square-foot building. The vacancy rate has dropped to 10.1%, compared to 67.1% when purchase was made, according to CoStar. Sphere: Related Content
Friday, June 20, 2008
MAXIMA Completes EUR 46.6 Million Sale Leaseback of Supermarket Portfolio in Lithuania
PR Inside - June 18, 2008
Re&Solution has acted as a sole advisor of the largest retail chain of food products and manufactured goods in the Baltic States MAXIMA in EUR 46.6 million supermarket portfolio sale and leaseback transaction
The Norwegian investment banking company VERDISPAR, representing its investors through the company VERDISPAR Retail Properties II, has acquired a 26,500 sq. m (285,300 sq. ft.) real estate portfolio from MAXIMA. Verdispar paid LTL 161 million (EUR 46.6 million) for nine supermarkets (MAXIMA X and MAXIMA XX) situated in the largest cities of Lithuania: Vilnius, Kaunas, Klaipeda, Alytus and Siauliai, as well as in Ukmerge and Plunge. MAXIMA will continue to do business in these supermarkets as the chain has signed long-term leaseback contracts with VERDISPAR. The transaction will be formally completed after it is approved by the Competition Council of the Republic of Lithuania.
Mr. Ricardas Cepas, Re&Solution partner said: 'time to buy commercial property in our countries is particularly attractive now. Increased costs of borrowing and significantly tightened credit policy have induced developers to start considering alternative financing opportunities, for example, forward funding or disposing of currently possessed assets. Moreover, quality of investment products has improved substantially compared to for example 2006/2007. The largest shopping centre developers and retail chains have started sales of their assets. The biggest shopping centre, one of the largest logistic hubs is on sale presently; the strongest retail chains consider JV and sale and lease back opportunities; the strongest developers search for development and financial partners. MAXIMA sale and leaseback transaction is an obvious proof of quality of available opportunities, thus we expect that the deal will encourage institutional investors to explore the region and investigate the best investment possibilities ever'.
The transaction was partly financed by SEB and Nordea banks. Sphere: Related Content
Re&Solution has acted as a sole advisor of the largest retail chain of food products and manufactured goods in the Baltic States MAXIMA in EUR 46.6 million supermarket portfolio sale and leaseback transaction
The Norwegian investment banking company VERDISPAR, representing its investors through the company VERDISPAR Retail Properties II, has acquired a 26,500 sq. m (285,300 sq. ft.) real estate portfolio from MAXIMA. Verdispar paid LTL 161 million (EUR 46.6 million) for nine supermarkets (MAXIMA X and MAXIMA XX) situated in the largest cities of Lithuania: Vilnius, Kaunas, Klaipeda, Alytus and Siauliai, as well as in Ukmerge and Plunge. MAXIMA will continue to do business in these supermarkets as the chain has signed long-term leaseback contracts with VERDISPAR. The transaction will be formally completed after it is approved by the Competition Council of the Republic of Lithuania.
Mr. Ricardas Cepas, Re&Solution partner said: 'time to buy commercial property in our countries is particularly attractive now. Increased costs of borrowing and significantly tightened credit policy have induced developers to start considering alternative financing opportunities, for example, forward funding or disposing of currently possessed assets. Moreover, quality of investment products has improved substantially compared to for example 2006/2007. The largest shopping centre developers and retail chains have started sales of their assets. The biggest shopping centre, one of the largest logistic hubs is on sale presently; the strongest retail chains consider JV and sale and lease back opportunities; the strongest developers search for development and financial partners. MAXIMA sale and leaseback transaction is an obvious proof of quality of available opportunities, thus we expect that the deal will encourage institutional investors to explore the region and investigate the best investment possibilities ever'.
The transaction was partly financed by SEB and Nordea banks. Sphere: Related Content
Tuesday, June 17, 2008
Imo Planning £60 million Sale Leaseback of Car Wash Properties Across Europe
Telegraph - June 15, 2008
Carlyle Group is heading for a showdown with debt investors of Imo, the world's biggest car wash company, as the private equity house revealed plans to dipose of the group's property assets to raise more money.
Carlyle, which is nick-named the ex-presidents' club for employing political heavyweights such as James Baker and John Major, has in recent weeks asked the debt investors of Imo to approve of a sale and lease back of car wash sites that would raise £60m. The debt investors are concerned about the proposals since the property is the main collateral for their investment.
One investor said: "This seems to be an effort on the part of Carlyle to use our security rather than put in more equity themselves. It is not satisfactory." Debt holders have been asked to approve the scheme in the next few weeks.
Carlyle wants to raise the additional money to fund an expansion plan of new car wash sites across Europe. The car wash company had a tough year last year after poor weather affected trading. Experts say that people are more likely to get their cars washed when the weather changes. Last year there were long periods of constant rain or sun.
This year the group says business has been strong so far. Even so Carlyle wants to build more sites to ensure a wider catchment area but needs additional funding.
Imo currently owns 900 car wash sites in 14 countries, that wash over 34 million vehicles each year. In the UK, Imo has 300 sites trading as Arc Clean Car Centres. The next biggest presence is in Germany where is has 335, with the remaining sites spread across 12 other countries.
Carlyle bought the group in 1996 from JP Morgan Partners. Previously it was owned by Bridgepoint Capital, which had led a management buy-in in 1998. The company was originally founded in Germany in 1965 and expanded to include sites in the UK, and throughout Europe. Sphere: Related Content
Carlyle Group is heading for a showdown with debt investors of Imo, the world's biggest car wash company, as the private equity house revealed plans to dipose of the group's property assets to raise more money.
Carlyle, which is nick-named the ex-presidents' club for employing political heavyweights such as James Baker and John Major, has in recent weeks asked the debt investors of Imo to approve of a sale and lease back of car wash sites that would raise £60m. The debt investors are concerned about the proposals since the property is the main collateral for their investment.
One investor said: "This seems to be an effort on the part of Carlyle to use our security rather than put in more equity themselves. It is not satisfactory." Debt holders have been asked to approve the scheme in the next few weeks.
Carlyle wants to raise the additional money to fund an expansion plan of new car wash sites across Europe. The car wash company had a tough year last year after poor weather affected trading. Experts say that people are more likely to get their cars washed when the weather changes. Last year there were long periods of constant rain or sun.
This year the group says business has been strong so far. Even so Carlyle wants to build more sites to ensure a wider catchment area but needs additional funding.
Imo currently owns 900 car wash sites in 14 countries, that wash over 34 million vehicles each year. In the UK, Imo has 300 sites trading as Arc Clean Car Centres. The next biggest presence is in Germany where is has 335, with the remaining sites spread across 12 other countries.
Carlyle bought the group in 1996 from JP Morgan Partners. Previously it was owned by Bridgepoint Capital, which had led a management buy-in in 1998. The company was originally founded in Germany in 1965 and expanded to include sites in the UK, and throughout Europe. Sphere: Related Content
Saturday, June 14, 2008
Rexel Completes EUR 62 Million Sale Leaseback of Six Warehouse Distribution Properties in France
Rexel Web Site - June 12, 2008
Rexel France has concluded a sale-and-leaseback agreement with Gecina Group for seven logistics platforms located in specialized logistics hubs on major trunk roads. The transaction is part of the Rexel Group’s strategy of leasing its commercial and logistics sites so as to be able to continuously adapt its real estate portfolio to market evolutions.
This transaction reduces Rexel's debt by 62 million euros, of which 38 million euros were already reflected in the Q1 2008 consolidated balance sheet. The remaining 24 million euros will be accounted for in the Q2 2008 consolidated balance sheet.
These seven logistics platforms, which represent a constructed area of nearly 125,000 m², are located in Nancy (Champigneulles), Lyon (Saint-Vulbas), Marseille (Miramas), Toulouse (Tournefeuille), Nantes (Saint-Herblain), Rouen (Grand-Quevilly) and Orléans (Meung-sur-Loire).
Six of these platforms were leased back by Rexel France under a commercial lease, whilethe Saint-Vulbas platform will be transferred to a new, larger building in the same Plaine del’Ain logistics hub.
Rexel France was advised in this transaction by the property expert Schneider
International and the Field Fisher Waterhouse law firm. Sphere: Related Content
Rexel France has concluded a sale-and-leaseback agreement with Gecina Group for seven logistics platforms located in specialized logistics hubs on major trunk roads. The transaction is part of the Rexel Group’s strategy of leasing its commercial and logistics sites so as to be able to continuously adapt its real estate portfolio to market evolutions.
This transaction reduces Rexel's debt by 62 million euros, of which 38 million euros were already reflected in the Q1 2008 consolidated balance sheet. The remaining 24 million euros will be accounted for in the Q2 2008 consolidated balance sheet.
These seven logistics platforms, which represent a constructed area of nearly 125,000 m², are located in Nancy (Champigneulles), Lyon (Saint-Vulbas), Marseille (Miramas), Toulouse (Tournefeuille), Nantes (Saint-Herblain), Rouen (Grand-Quevilly) and Orléans (Meung-sur-Loire).
Six of these platforms were leased back by Rexel France under a commercial lease, whilethe Saint-Vulbas platform will be transferred to a new, larger building in the same Plaine del’Ain logistics hub.
Rexel France was advised in this transaction by the property expert Schneider
International and the Field Fisher Waterhouse law firm. Sphere: Related Content
Friday, June 13, 2008
Nomura Agrees to £235 Million Sale Leaseback of London HQ
Property Week - June 13, 2008
Fund managers IVG Asticus and AAIM are under offer to buy Nomura House at 1 St Martin’s Le Grand in the City of London. The two parties have a two-week timetable in which to complete on the 275,000 sq ft building and lease it back to Japanese bank Nomura for around £235m at a yield of around 5%. Drivers Jonas advises Nomura.
All parties declined to comment. Sphere: Related Content
Fund managers IVG Asticus and AAIM are under offer to buy Nomura House at 1 St Martin’s Le Grand in the City of London. The two parties have a two-week timetable in which to complete on the 275,000 sq ft building and lease it back to Japanese bank Nomura for around £235m at a yield of around 5%. Drivers Jonas advises Nomura.
All parties declined to comment. Sphere: Related Content
Thursday, June 12, 2008
Dine Equity Completes $337 Million Sale Leaseback of 181 Appleby's Restaurants
SEC Edgar Web Site - June 19, 2008
On June 13, 2008, Applebee’s Restaurants Kansas LLC, Applebee’s Restaurants Mid-Atlantic LLC, Applebee’s Restaurants North LLC, Applebee’s Restaurants Texas LLC, and Applebee’s Restaurants West LLC (collectively the “Tenant”) entered into a Master Land and Building Lease (the “Master Lease”) with DBAPPLEF, LLC (the “Landlord”) relating to 181 parcels of real property, each of which is improved with a restaurant operating as an Applebee’s Neighborhood Grill and Bar (the “Properties”).
The Master Lease calls for an initial term of twenty years and four five-year options to extend the term which are exercisable by the Tenant or its successors. The initial monthly base rent under the Master Lease will be $2,612,916.66. The initial monthly base rent is subject to a 2% increase on each of the following dates: January 1, 2009; July 1, 2010; July 1, 2011; July 1, 2012; and July 1, 2013. Thereafter, the monthly base rent shall increase by ten percent (10%) of the monthly base rent preceding such increase in base rent on each of July 1, 2018 and July 1, 2023. The Master Lease provides for rent adjustments during each of the option periods as well. Additionally, the tenant under the Master Lease is responsible for additional rent equal to any and all fees, expenses, taxes and other charges of every kind and nature arising in connection with or relating to the Properties.
The Tenant may sublease all or a portion of the Properties, without the Landlord’s consent, provided that certain conditions are met. In addition, the Tenant may assign its interest in the Master Lease with respect to some or all of the Properties, without Landlord’s consent, provided that certain conditions are met and the assignee agrees to enter into a direct lease with the Landlord on a pre-approved form attached to the Master Lease (“Assigned Leases”). Further, if such assignment is to a qualified franchisee meeting certain parameters set forth in the Master Lease, the Tenant shall be released by the Landlord from all obligations with respect to any Assigned Lease.
(Note: Transaction reflects an initial cap rate of approximately 9.3%.) Sphere: Related Content
On June 13, 2008, Applebee’s Restaurants Kansas LLC, Applebee’s Restaurants Mid-Atlantic LLC, Applebee’s Restaurants North LLC, Applebee’s Restaurants Texas LLC, and Applebee’s Restaurants West LLC (collectively the “Tenant”) entered into a Master Land and Building Lease (the “Master Lease”) with DBAPPLEF, LLC (the “Landlord”) relating to 181 parcels of real property, each of which is improved with a restaurant operating as an Applebee’s Neighborhood Grill and Bar (the “Properties”).
The Master Lease calls for an initial term of twenty years and four five-year options to extend the term which are exercisable by the Tenant or its successors. The initial monthly base rent under the Master Lease will be $2,612,916.66. The initial monthly base rent is subject to a 2% increase on each of the following dates: January 1, 2009; July 1, 2010; July 1, 2011; July 1, 2012; and July 1, 2013. Thereafter, the monthly base rent shall increase by ten percent (10%) of the monthly base rent preceding such increase in base rent on each of July 1, 2018 and July 1, 2023. The Master Lease provides for rent adjustments during each of the option periods as well. Additionally, the tenant under the Master Lease is responsible for additional rent equal to any and all fees, expenses, taxes and other charges of every kind and nature arising in connection with or relating to the Properties.
The Tenant may sublease all or a portion of the Properties, without the Landlord’s consent, provided that certain conditions are met. In addition, the Tenant may assign its interest in the Master Lease with respect to some or all of the Properties, without Landlord’s consent, provided that certain conditions are met and the assignee agrees to enter into a direct lease with the Landlord on a pre-approved form attached to the Master Lease (“Assigned Leases”). Further, if such assignment is to a qualified franchisee meeting certain parameters set forth in the Master Lease, the Tenant shall be released by the Landlord from all obligations with respect to any Assigned Lease.
(Note: Transaction reflects an initial cap rate of approximately 9.3%.) Sphere: Related Content
Sunday, June 08, 2008
Volkswagen of America HQ Near Washington, DC Sold
Washington Business Journal - June 6, 2008
A German investment firm has purchased the local headquarters of Volkswagen of America Inc.
Union Investment Real Estate AG, a Hamburg-based investment management company, bought the Tishman Speyer-owned property, known as Woodland Pointe, for an undisclosed amount.
The 184,787-square-foot Class A property has been valued at $100 million. Last fall, Volkswagen signed a 15-year net lease to move its headquarters from Michigan this year. New York-based Tishman Speyer delivered the six-story building in January.
It is expected to be fully occupied by the end of the year, also housing the U.S. headquarters for Audi of America Inc., Audi Financial Services, Volkswagen Credit and other affiliated operations.
Union Investment Real Estate made the purchase due to the property's tenants, the proximity to Dulles International Airport and its visibility along the Dulles Toll Road, said Zeb Bradford, managing director of Metzler, Union Investment's real estate adviser in the U.S. The buyer made the acquisition for UniImmo, its global open-ended real estate fund.
Union Investment Real Estate is planning several other strategic acquisitions in the D.C. area this year, according to Bradford.
Tishman Speyer will continue to manage Woodland Pointe, which is located among 1.7 million square feet of office space in Woodland Park. Roy Bajtel, head of Union Investment's New York City office, represented the company in the negotiations. Drew Flood and Bill Collins of Cassidy Pinkard and Colliers brokered the deal. Sphere: Related Content
A German investment firm has purchased the local headquarters of Volkswagen of America Inc.
Union Investment Real Estate AG, a Hamburg-based investment management company, bought the Tishman Speyer-owned property, known as Woodland Pointe, for an undisclosed amount.
The 184,787-square-foot Class A property has been valued at $100 million. Last fall, Volkswagen signed a 15-year net lease to move its headquarters from Michigan this year. New York-based Tishman Speyer delivered the six-story building in January.
It is expected to be fully occupied by the end of the year, also housing the U.S. headquarters for Audi of America Inc., Audi Financial Services, Volkswagen Credit and other affiliated operations.
Union Investment Real Estate made the purchase due to the property's tenants, the proximity to Dulles International Airport and its visibility along the Dulles Toll Road, said Zeb Bradford, managing director of Metzler, Union Investment's real estate adviser in the U.S. The buyer made the acquisition for UniImmo, its global open-ended real estate fund.
Union Investment Real Estate is planning several other strategic acquisitions in the D.C. area this year, according to Bradford.
Tishman Speyer will continue to manage Woodland Pointe, which is located among 1.7 million square feet of office space in Woodland Park. Roy Bajtel, head of Union Investment's New York City office, represented the company in the negotiations. Drew Flood and Bill Collins of Cassidy Pinkard and Colliers brokered the deal. Sphere: Related Content
Monday, June 02, 2008
Kesko Completes EUR 31 Million Sale Leaseback of HQ & Logistics Property in Finland
Kesko Web Site - May 30, 2008
Kesko Corporation and the Kesko Pension Fund have sold the office and logistics property located at Tikkurilantie 10, Hakkila, Vantaa, to Aberdeen Real Estate Fund Finland in a transaction closed today. The price paid by the fund to Kesko and the Kesko Pension Fund totals about €31 million, of which Kesko´s share is about €10 million. The Kesko Group recognises a gain of about €4 million on the disposal, which will be reported as a non-recurring item in Rautakesko´s profit for the second quarter.
Rautakesko will continue as the principal user of the premises under a long-term lease. Approximately half of the premises have been leased to logistics companies outside Kesko. Premises not used by Kesko are not included in the leaseback system and the buyer will be responsible for them in the future. The total lease area of the property is about 26,000 m².
'The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds will be used to strengthen the store network in Finland and abroad,' says Kesko´s Arja Talma, Senior Vice President, CFO. Sphere: Related Content
Kesko Corporation and the Kesko Pension Fund have sold the office and logistics property located at Tikkurilantie 10, Hakkila, Vantaa, to Aberdeen Real Estate Fund Finland in a transaction closed today. The price paid by the fund to Kesko and the Kesko Pension Fund totals about €31 million, of which Kesko´s share is about €10 million. The Kesko Group recognises a gain of about €4 million on the disposal, which will be reported as a non-recurring item in Rautakesko´s profit for the second quarter.
Rautakesko will continue as the principal user of the premises under a long-term lease. Approximately half of the premises have been leased to logistics companies outside Kesko. Premises not used by Kesko are not included in the leaseback system and the buyer will be responsible for them in the future. The total lease area of the property is about 26,000 m².
'The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds will be used to strengthen the store network in Finland and abroad,' says Kesko´s Arja Talma, Senior Vice President, CFO. Sphere: Related Content
Brocade Communications Considering Sale Leaseback of $223 Million HQ in San Jose
Cityfeet.com / GlobeSt.com - May 29, 2008
Brocade Communications is spending approximately $223 million on a new headquarters office complex on North First Street. The locally based public company currently keeps its headquarters at 1745 Technology Dr. on a lease that runs out in the middle of 2010.
In an SEC filing this week the provider of datacenter networking solutions says it purchased three unimproved building parcels from MFP/Hunter@First Office Partners LLC for $50.9 million. It retained an affiliate of the seller to develop three office buildings totaling 562,000 sf for an additional $173 million that will be paid in installments over the next 27 months.
The new campus will consist of two seven-story buildings and one four-story building and will have a capacity of approximately 2,200 people, allowing the company to consolidate not only its headquarters at 1745 Technology Dr. but also a building it owns several blocks away at Skyport Plaza. Brocade’s two existing local buildings total about 400,000 sf, a company source tells GlobeSt.com.
With regard to the decision to buy or lease, a company source tells GlobeSt.com that the company evaluated both kinds of transactions and “found that this was very fiscally responsible and met our needs.”
Depending on the market or other circumstances, Brocade may evaluate entering into a sale-leaseback transaction with respect to the property and buildings at a future date, according to SEC documents. As part of the deal the company also obtained a four-year option to take down a fourth parcel totaling four acres for $26 million. Sphere: Related Content
Brocade Communications is spending approximately $223 million on a new headquarters office complex on North First Street. The locally based public company currently keeps its headquarters at 1745 Technology Dr. on a lease that runs out in the middle of 2010.
In an SEC filing this week the provider of datacenter networking solutions says it purchased three unimproved building parcels from MFP/Hunter@First Office Partners LLC for $50.9 million. It retained an affiliate of the seller to develop three office buildings totaling 562,000 sf for an additional $173 million that will be paid in installments over the next 27 months.
The new campus will consist of two seven-story buildings and one four-story building and will have a capacity of approximately 2,200 people, allowing the company to consolidate not only its headquarters at 1745 Technology Dr. but also a building it owns several blocks away at Skyport Plaza. Brocade’s two existing local buildings total about 400,000 sf, a company source tells GlobeSt.com.
With regard to the decision to buy or lease, a company source tells GlobeSt.com that the company evaluated both kinds of transactions and “found that this was very fiscally responsible and met our needs.”
Depending on the market or other circumstances, Brocade may evaluate entering into a sale-leaseback transaction with respect to the property and buildings at a future date, according to SEC documents. As part of the deal the company also obtained a four-year option to take down a fourth parcel totaling four acres for $26 million. Sphere: Related Content
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