Dividend Capital To Buy 33 Net Leased Properties from iStar Financial for $1.4 Billion

CoStar Group - May 5, 2010

Dividend Capital Total Realty Trust Inc. agreed to acquire a portfolio of office and industrial properties from iStar Financial Inc. for an aggregate purchase price of $1.4 billion, adjusted for closing costs and prorations of taxes, operating expenses, leasing costs and other items.

Although Dividend Capital did not identify the property assets it is acquiring, it did say that the portfolio consists of 33 office and industrial properties in 18 geographic markets within the United States aggregating approximately 11.8 million net rentable square feet. Included in this portfolio are 22 office properties in 12 markets aggregating approximately 5.1 million net rentable square feet and 11 industrial properties in 10 markets aggregating 6.7 million net rentable square feet.

The properties included in the portfolio are primarily leased to large corporate tenants subject to triple net leases.

Earlier this year, iStar Financial announced that it was pursuing a sale or other transaction involving a portfolio of corporate tenant lease assets representing an aggregate $1.1 billion of book value. The portfolio is encumbered by secured, non-recourse term debt with an aggregate principal balance of $947.9 million that matures in April 2011.

The transactions are expected to close in the second quarter of 2010 subject to finalization of due diligence and obtaining sufficient financing, as well as other customary closing conditions.

iStar has agreed to provide Dividend Capital with up to $125 million in mezzanine financing after the buyer has obtained a commitment for senior financing. Dividend Capital has made an initial earnest money deposit of $25 million in respect of the transactions. Sphere: Related Content

Agrokor Completes EUR 77 Million Sale Leaseback of Two Office & Logistic Facilities in Zagreb, Croatia

W. P. Carey Website - May 5, 2010

W. P. Carey & Co. LLC (NYSE: WPC), a global investment management company that provides long term asset-based and build to suit financing for companies, announced today that CPA®:17 – Global one of its publicly held non-traded REIT affiliates, has acquired two office and logistics facilities in Zagreb, Croatia. The transaction is W. P. Carey’s first in Croatia and is for a total consideration of €77 million ($101 million), including acquisition fees. The two properties comprise the office headquarters and national distribution center of Konzum, the largest food retailer in Croatia and a subsidiary of Agrokor.

Founded in 1976, Agrokor is the largest private company in Croatia. Agrokor is the largest company in the Adria region and one of the largest among its peers in CEE. A vertically-integrated business with nearly 40,000 employees and almost €4 billion in revenues, it is Croatia’s largest food producer, largest food processor, largest food distributor, and largest food retailer.

Jeffrey Lefleur, Executive Director of W. P. Carey, said:

“As one of the largest real estate transactions in Eastern Europe in the last three years, the acquisition is further indication of W. P. Carey’s ability to provide long term capital to companies based in capital-constrained regions on the Continent.

“Given Agrokor’s dominance of the agribusiness industry and history of successful acquisitions and growth, this was an ideal situation for us to enter the Croatian market. Having its strategically critical operating assets on a long term lease is consistent with our investment strategy.”

Ivica Todoric, Founder and President of Agrokor, said:

“This transaction with W. P. Carey allowed us to structure a deal that meets our short term commitments while supporting our longer term goals.”

King Sturge was the real estate advisor to the transaction. Sphere: Related Content

TDG Ltd Announces £22 Million Sale Leaseback of Eight Cold Storage Facilities in the UK

W. P. Carey Website - May 4, 2010

W. P. Carey & Co. LLC (NYSE: WPC), a global investment management company that provides long term sale leaseback and build to suit financing for companies, announced today that CPA®:17 – Global, one of its publicly held non-traded REIT affiliates, has purchased eight cold storage facilities from UK logistics and supply chain management company TDG Limited for a total consideration of £22 million ($34 million), including acquisition fees, in an all-equity transaction. The purchase of a ninth cold storage facility is pending subject to final approvals and is expected to close in the next few weeks. The properties are leased back to TDG on a long term basis. The nine properties, which total over 46,000 square meters (500,000 square feet) of cold storage warehousing and office space, are located across England and Wales.

TDG Ltd operates throughout Europe, including the UK, Ireland, France, Spain, Germany, the Benelux, Poland and Hungary, and is 100% owned by private equity investment firm Douglas Bay Capital PLC.

Agents on the transaction were Celtic Asset Management and GVA Grimley for TDG and Knight Frank for W. P. Carey.

Jennifer Walsh, Director of W. P. Carey, said:

“We at W. P. Carey have recognised the growth potential that TDG offers, last year producing results well ahead of its competitors. In addition, the UK public cold storage industry has proved a defensive and stable one in recent months. We believe that the acquired portfolio includes some of TDG’s most sustainable sites, offering a diversified customer base and large geographical market shares.
“This transaction further demonstrates W. P. Carey’s ability to work with private equity firms in order to develop alternative financing structures that support their broader investment strategies as well as provide capital to their portfolio companies.”

Mike Brannigan, CEO of TDG, said:

“We are pleased about this new business relationship with W. P. Carey. The transaction is another key milestone in our property and business strategy to further strengthen our balance sheet in order to reinvest and accelerate the development of TDG. Over the past year TDG has substantially changed its business profile and is now best placed to capitalise on a more benign economic environment.

“We are delighted to work with long term partners such as W. P. Carey, who understands the sector and TDG's long term objectives.” Sphere: Related Content

Venter Institute Completes $53 Million Sale Leaseback of Rockville R&D Campus

GenomeWeb - May 4, 2010

The J. Craig Venter Institute has sold its Rockville, Md., headquarters campus to BioMed Realty Trust for $53 million, but will continue to carry out research there under a 10-year renewable sale-leaseback agreement with the buyer, JCVI said today.

JCVI fully leases the campus, which consists of five buildings totaling 218,000 square feet, located at 9704-9714 Medical Center Drive. Some 300 scientists and support staffers are based at the campus, while another 100 scientists and support staffers are employed at JCVI's San Diego campus.

J. Craig Venter, JCVI's founder and president, said in a statement that the sale-leaseback "will enable us to remain financially sound for the foreseeable future, and ensure that we can continue our groundbreaking genomic science."

JCVI was formed in October 2006 through the merger of three affiliated organizations — the Institute for Genomic Research, the J. Craig Venter Institute, and the J. Craig Venter Science Foundation.

The deal with Venter is BioMed Realty's second acquisition of life-science property along the I-270 corridor in Maryland's Montgomery County this year. On March 1, the REIT announced it had acquired two fully-leased life science buildings totaling about 82,400 square feet in Gaithersburg, Md., for $14.4 million. The buildings are leased to MedImmune and GenVec.

The JCVI campus acquisition expands BioMed Realty's Maryland portfolio to six properties, consisting of 15 buildings and 1.4 million rentable square feet of life-science space. BioMed Realty is headquartered in San Diego. Sphere: Related Content

CVS Portfolio Trades for $63 Million

GlobeSt.com - April 29, 2010

A private investor has acquired a net lease portfolio of 20 CVS/pharmacies for $62.7 million. The seller was also a Texas-based private investor.

Encompassing more than 248,000 square feet, the retail properties are located in primary and secondary markets in Alabama, California, Connecticut, Florida, Georgia, Illinois, Massachusetts, Michigan, New Hampshire, Pennsylvania, Texas and Virginia. The properties, which average 12,400 square feet, are 100% leased to CVS/pharmacies, according to Jeff Hughes, a senior director of investment sales for Stan Johnson Co., a Tulsa, OK-based net lease brokerage firm.

Hughes represented both the buyer and the seller, along with Brandon Duff, also of Stan Johnson Co. He says the buyer was attracted to this deal because the properties were highly leveraged and well-suited to meet its unique needs for this transaction.

"These properties have long-term, bond-style leases with investment grade tenants, providing highly leveraged assumable loans in place," Hughes says. "This transaction type is perfectly suited for owners needing to replace debt from 1031 or 1033 exchanges." Sphere: Related Content

W.P. Carey Appoints H. Cabot Lodge, III President of W. P. Carey & Co. Ltd. and Head of European Investments

W. P. Carey Website - April 29, 2010

Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that H. Cabot Lodge, III has been appointed President of its UK subsidiary, W. P. Carey & Co. Ltd. Mr. Lodge will serve as head of European Investments and is based out of W. P. Carey’s London office.

Gordon DuGan, President and Chief Executive Officer of W. P. Carey, commented “Cabot’s appointment to head our European investment team underlines our commitment to further strengthen the firm’s international platform. Having a senior executive with Cabot’s capabilities and credentials will enhance our ability to capitalize on recent successes and pursue opportunities in the current market. Cabot has more than 25 years of deal experience, including 15 years previously with W. P. Carey, and his knowledge will be a significant asset in accelerating the development of our European franchise.” Sphere: Related Content

Eroski Closes EUR 150 Million Sale Leaseback of 12 Supermarkets Across Spain

Expansión (as translated by Google) - April 29, 2010

The Eroski supermarket chain has closed its third real estate sales transaction in just four months. The latter was closed this Tuesday. The agreement provides for the sale and subsequent rental (market operation known as a sale & lease back) of more than a dozen establishments in the background episodes.

The transaction, advised by property consultant Cushman & Wakefield, has been closed for 150 million euros. The facilities have a combined total area of 120,000 square meters and are spread throughout Spain, including the hypermarket of the Bañeza (Leon), Azuqueca (Guadalajara) and Luz de Castilla (Segovia).

The average length of contracts signed by Eroski is situated in 20 years.
With this operation, Epis (acronym of European Property Investors Special Opportunities) enters the Spanish real estate market. In 2008, the fund reached 788 million euros for institutional investors, to date, purchases of assets in the UK and France.

The vehicle is real estate fund managed by AEW Capital Partners Europe and Tristan. "We are delighted to have closed this transaction with a major corporation and we believe that due to its strong defensive position in a sector such as the power, this transaction is the ideal investment vehicle to make your diving episodes in a market as in Spanish, "says Ric Lewis, CEO of Tristan Capital Partners.

In accordance with episodes, the supermarket chain that closes the third operation is the sale and subsequent rental of their facilities. The first one took place in late December when the investment firm WP Carey purchased a large block of businesses. In that case, Eroski has not provided or the total number of businesses sold or the total amount of the transaction. In the second transaction, closed on 16 February, the chain received 75 million euros for a portfolio of properties transferred to the same non-listed company (REIT) fund of WP Carey. The sale and subsequent lease was closed at 7% return (yield).

Eroski operates throughout the Spanish territory with a hundred hypermarkets, 1,700 supermarkets and franchises. The group also owns shopping centers, in addition to managing gas stations and travel agencies.

This is not the first time the distribution group uses the divestment of property assets to achieve liquidity. Specifically, since 2001, Eroski has conducted an intense policy of sale of real estate (both supermarkets and hypermarkets, such as schools), keeping their premises as a tenant.

Thus, the company transferred several of its local financial institutions ING and Eurohypo, in addition to selling tracks logistics platforms in Zaragoza and Malaga. In both cases, Eroski opted for the formula for sale and rent back.

Thus, Eroski joins the group of companies and financial institutions that use the formula for sale & lease back to obtain liquidity through the sale of assets, but without losing their respective locations. Among them, BBVA, Banco Sabadell and Barclays. Sphere: Related Content

Popular Seeking EUR 700 Million Sale Leaseback of 800 Bank Branches

Reuters - April 26, 2010

Spanish bank Popular (POP.MC) is aiming to sell more than a third of its branches by the end of June in deals that could raise about 700 million euros ($940.9 million) of capital gains, El Economista reported on Monday without citing sources.

The bank has agreed to sell up to 800 branches to wealthy investors who in return will lease them back to the bank, the financial daily reported.

A spokesman for the bank declined to comment on the report.

A number of competitors such as Santander (SAN.MC) and BBVA (BBVA.MC) have already signed sale-leaseback deals on property. Sphere: Related Content

EUR 130 Million Carrefour Distribution Center Portfolio in France For Sale

PropertyEU - April 23, 2010

US real estate investor WP Carey has mandated CB Richard Ellis and BNP Paribas to sell a portfolio of distribution centres across France, according to well-informed market sources. The portfolio, worth some EUR 130 mln, offers 360,000 m2 of logistics space mostly let to French hypermarket Carrefour. The properties are spread across nine locations in France, including the cities of Paris, Lille, Caen, Nancy, Le Mans, Agen, Bourges and Lyon.

"The company wants to capitalise on the expected recovery for the logistics sector," a person familiar with the situation said.

Eight of the nine assets were bought in 2002 in a EUR 104 mln sale-and-leaseback transaction with Carrefour. The facilities were purchased on behalf of Corporate Property Associates 14 Incorporated, a member of the WP Carey Group of publicly held non-traded real estate investment trusts (REITs). Sphere: Related Content

Co-operative Group Agrees to 20 Year Lease on Build-to-Suit UK Distribution Center

PropertyEU - April 14, 2010

Legal & General Property has agreed to acquire a distribution centre project in the UK from Goodman for 47 mln (EUR 53 mln). Goodman, a global provider of industrial and business space, announced this week that it will commence development of the pre-let 43,484-m2 regional distribution centre (RDC) at Andover Commercial Park, formerly Andover Airfield, in Hampshire following the forward-funding agreement with LGP.

The distribution centre will be occupied by The Co-operative Group, the UK's fifth largest food retailer, on a 20-year lease. Goodman aims to achieve a BREEAM rating of "Very Good&" for the facility.

Goodman was represented by Savills and Carter Jonas. M3 acted for LGP and Thomas Round advised The Co-operative Group. Sphere: Related Content

Carestream Health Agrees to Sale Leaseback of HQ in Rochester NY

Democrat and Chronicle - April 2, 2010

Carestream Health Inc. is selling its seven-story building that houses its world headquarters.

The Rochester-based health imaging company that employs 1,100 people locally said it plans to remain in the Verona Street building and will sign a 10-year lease for most of the space with the new owner, Rochester property management firm Buckingham Properties LLC.

"We're staying right here," Carestream spokesman Robert Salmon said. "We just don't want to be in the property management business."

The building was put up by Eastman Kodak Co. in 1988 adjacent to its own headquarters at 343 State St. Kodak sold off its health imaging operations, which became Carestream, in 2007.

Terms of the sale to Buckingham Properties were not disclosed. Buckingham CEO Larry Glazer said he hopes to close on the deal by late June.

Carestream will continue to occupy all but the third floor of the building, Glazer said. With 61,000 square feet and adjacent parking, the space could be particularly attractive to firms looking to have a downtown Rochester location but not wanting to deal with parking issues. The space already has attracted some interest from prospects, though Buckingham has not yet begun to heavily market it, he said.

Salmon said part of the motivation for the sale is the fact Carestream had too much unused space in the building.

Companies selling off and then leasing back their own real estate is a common move in the business world as it can free up money for other uses. Xerox Corp. currently is looking to make a similar deal for the 30-story Xerox Square on South Clinton Avenue. Sphere: Related Content

Leighton Contractors Agrees to $94 Million Sale Leaseback of Brisbane HQ

egoli.com - March 29, 2010

Leighton Holdings Limited (LEI) said it has signed a contract to sell the South Tower of HQ in Brisbane’s Fortitude Valley to AFIAA for $94 million. AFIAA is the investment foundation of 18 Swiss pension funds.

CEO of AFIAA, Hans Brauwers, said the acquisition was a logical development of the foundation’s strategy of counter-cyclical investment.

“The Australian market is extremely attractive at the moment – as a country rich in raw materials and on the doorstep of Asia, Australia is benefiting directly from the pronounced upswing in the east, particularly China and India,” Mr Brauwers said.

The tower is fully leased to Leighton Contractors as their new head quarters on a fixed 10-year lease.

Leighton Properties’ executive director and state manager, Queensland, Andrew Borger, said an EOI campaign for the HQ North Tower would commence immediately.

“There is still very strong interest in high quality, new assets from both national and international investors and we are confident bringing HQ North Tower to the marketplace,” Mr Borger said.

“Fortitude Valley is now the most active city fringe office precinct in Brisbane."

"It’s location is viewed as an extension of Brisbane’s CBD and currently there is in the order of $10.3 billion worth of government investment in the construction of road and public transport infrastructure that will benefit this area.” Sphere: Related Content

Almar Management Completes $55 Million Sale Leaseback of Four California Marinas

Citybizlist South Florida - March 25, 2010

Orlando-based CNL Lifestyle Properties, Inc., a commercial real estate REIT that invests in lifestyle properties, has acquired a portfolio of four coastal marinas in California for an aggregate purchase price of approximately $55.0 million, excluding transaction costs.

The marinas were acquired through a sale-leaseback arrangement and are subject to triple-net leases with an initial term of 20 years and two 10-year renewal options. In connection with the transaction the Company assumed three existing loans collateralized by the properties with aggregate outstanding principal balances of approximately $14.0 million.

All properties are operated by Almar Management, Inc.:

Ancapa Isle Marina - Oxnard, California
438 wet slips;
Purchase Price (in thousands): $9,829

Ballena Isle Marina - Alameda, California
504 wet slips;
Purchase Price (in thousands): $8,179

Cabrillo Isle Marina - San Diego, California
463 wet slips;
Purchase Price (in thousands): $20,576

Ventura Isle Marina - Ventura, California
579 wet slips;
Purchase Price (in thousands): $16,418" Sphere: Related Content

Banco Sabadell Agrees to EUR 403 Million Sale Leaseback of Bank Branch Portfolio in Spain

ABC.es (as translated to English by Google)- March 26, 2010

Banco Sabadell sells 378 offices and other properties for 403 million.

In its statement, noted that the sale will simultaneously couple to formalize a long-term lease and that branch is located in Spain.

The total transaction price is EUR 403 million, reflecting an initial yield of 6.65%, and represents for Banco Sabadell a capital gain of approximately EUR 265 million, before taxes.

Most of the assets, which have a surface ranging from 150 square meters (sqm) and 1,000 meters - are found in Catalonia and Madrid, the rest being distributed among the different autonomous communities.

Drawing on the total areas can be emphasized that 17% of premises are situated in the cities of Madrid and Barcelona.
The funds obtained by this operation, intended to increase their 'capital base,' explained the president of Banco Sabadell, Josep Oliu, before the meeting this week, since its objective is 'to reach a 'core capital 'percentage of equity-highest quality-from 8%, one point more than market demand as a bank Sabadell. At this time the core capital of the bank is 7.6%.

This is the second such transaction that closes Banco Sabadell since last year earned 125 million for various operations. Sphere: Related Content

Mitchells and Butlers Reconsidering Sale Leaseback of Large Pub Portfolio?

Mail Online - March 22, 2010

The sale and leaseback of Mitchells and Butlers pub estate is back on the agenda.

A strategic review of the battered pubs group will show a 'change in mindset' at the firm. It had steadfastly resisted attempts by investors to force it to sell off property worth £4bn at its peak.

But the 60-day audit by new chairman John Lovering, who was appointed after 23pc stake owner Joe Lewis cleared out the old board earlier this year, will stop short of pushing for disposals.

But it will signal the board of M&B is open to the idea. This is a significant thawing from the stance held by ousted chief executive Tim Clarke.

While some investors might not feel this goes far enough, Lewis's right hand man, Richard McGuire, said: 'Its for the board to decide the best course of action and restore value for shareholders.

"We look forward to putting a series of questions to them on Wednesday."

Chief executive Adam Fowle signalled in January he would focus on growing key brands including Sizzling Pubs and Toby Carvery.

In a significant departure from growing the group through buying freehold properties, the review will set out plans to accelerate expansion through leasehold sites.

M&B has had a disastrous two years after being stalked by investors Robert Tchenguiz and embarking in its doomed currency gamble that cost it £422m previously.
The shares closed 1.10p higher at 292.1p valuing M&B at £1.8bn. Sphere: Related Content

Hornbach Completes $47 Million Sale Leaseback of Retail Land in Switzerland

Globes - March 10, 2010

Aspen Group Ltd. (TASE:ASGR) has bought a commercial lot in Biel, Switzerland, through a partnership in which Aspen owns a 50% stake, for CHF 50 million (NIS 176 million). The transaction is a buy and lease-back deal with DIY chain Hornbach, which fully leases the 3.5-hectare (8.75-acre) lot, which has 500 shops with 18,600 square meters of space altogether. Hornbach Holding AG (XETRA:HGH) has a 15-year lease with three five-year options to extend.

Annual rent from the property amounts to CHF 3.12 million, giving a 6.25% gross yield on investment. Sphere: Related Content

Center Parcs Mulling $1 Billion Sale Leaseback of Holiday Park Portfolio

Financial Times - March 19, 2010

Blackstone, the private equity group, will test investors’ appetite for large real estate deals with plans for the sale of a majority £1.4bn stake in its Center Parcs property portfolio.

Blackstone has begun to sound out institutional interest in the sale of the UK leisure and holiday parks, which could lead to the sale of about three-quarters of the business for as much as £1.4bn.

The group, which also owns the operating business that runs the parks, would look to retain a substantial interest in the properties.

Blackstone is said to have spoken to institutional investors this week at Mipim, the annual property festival in Cannes, about its plans for the portfolio, which are still at an early stage.

The private equity real estate fund manager last week received approval from the holders of the bonds that backed the portfolio acquisition to extend the debt by a further two years until 2013, which has given it time to work on the proposals.

It will reinvest cash in the business rather than take dividends during the period. One idea would be for the group to create a new unlisted or listed fund vehicle to own the assets in which investors could buy a stake, according to Estates Gazette.

Blackstone is also understood to be considering similar sale-and-leaseback transactions on other parts of its property portfolio. There is considerable demand among institutional investors for real estate assets that offer long leases and secure income streams through rent from reliable tenants.

Even so, any sale would be the biggest since the last days of the previous property boom.

Blackstone acquired the operating and property businesses in consecutive deals in 2006 for a total of £1.1bn.

The group declined to comment on Friday night. Sphere: Related Content

Mercator Nearing EUR 1 Billion Sale Leaseback of Supermarket Portfolio

PropertyEU - March 17, 2010

US private equity group Advent International is the frontrunner in a bid to acquire EUR 1 bn worth of property being sold by Slovenian retail chain Mercator, according to reliable sources. Mercator is divesting the assets on a sale-and-leaseback structure, sources say.

Advent International has long been active in the Central and Eastern European market, launching its first fund in the region in 1994. In 2008 the company set up its fourth CEE fund, ACEE IV, which has a EUR 1 bn war chest for investment in the region. Sphere: Related Content

Siemens Completes Sale Leaseback of Large R&D Campus in Germany

Siemens Real Estate Web Site - March 9, 2010

Siemens Real Estate (SRE) has sold the office and business park in München-Perlach to an acquisition company set up by HIH Hamburgische Immobilien Handlung GmbH (HIH) and RFR Holding GmbH (RFR). The parties have agreed to disclose no details on the purchase price.

The site, which is located in the east of Munich, formed part of the assets of the fund administered by Siemens Pension Trust e.V. The sale and reinvestment of the proceeds in the fund assets is intended to optimize the trust’s investment profile. Siemens will maintain its connection with the park and continue its presence on site: The group has signed a leasing agreement with the investor for all buildings on the complex for the next 13 years, with options to extend this by a further 15 years.

The office and retail park in Neuperlach has a net floor area of approx. 370,000 square meters and covers a plot area of more than 425,000 square meters. There are more than 30 individual buildings on the site, all of them interconnected. It is home to a number of Siemens’ departments, including Corporate Technology (research and development), Siemens IT Solutions (information technology), Siemens Financial Services (financial solutions provider) and SRE (real estate).

The acquisition company, BSC München Grundstücks GmbH & Co. KG, consists of a private placement managed by HIH Hamburgische Immobilien Handlung GmbH (HIH) and RFR Holding.

(Note: Other sources report that the transaction yielded a 9.5% return on cash equity as a result of a EUR 250 million financing provided by a syndicate led by Helaba.) Sphere: Related Content

WesTrac Enters $100 Million Sale Leaseback of Property Portfolio in Australia

Sydney Morning Herald - March 18, 2010

Kerry Stokes has transferred more than $100 million of property out of his earth-moving business, WesTrac, to his private company, Australian Capital Equity, and will lease it back to the merged Seven Group Holdings for $18 million a year.

Documents sent to Seven Network shareholders about the merger of Mr Stokes's media interests with his earth-moving business WesTrac Group reveal a deal excising some of WesTrac's ''non-core'' assets was struck the day before Seven and WesTrac announced merger plans in February.

Part of the deal involves ''all freehold properties owned by WesTrac Group and used in the WesTrac business being transferred out of WesTrac Group to Fairburn Nominees,'' later identified as a wholly-owned subsidiary of Mr Stokes's ACE.

The Australian Financial Review is this morning reporting Mr Stokes as having said there will be no revised offer.

After the sale and leaseback valuing the properties at $100.6 million, Mr Stokes's ACE becomes a landlord in another related party transaction.

"These properties used in WesTrac business will then be leased back to the WesTrac Group under triple net leases. The rent of these properties will be [about] $18 million per annum, increasing to [about] $40 million per annum" when a series of projects are complete.

The day after the deal for WesTrac Group to pay rent on the properties, Seven said it would merge with WesTrac Group to become Seven Group Holdings.

That day, Seven announced an "agreed enterprise value" of $2 billion for WesTrac, including half-equity and half-debt.

The property deal includes a 3 per cent annual rent increase on a 10-year term, the lessee paying maintenance costs on the property up to $100,000 per month before the owner may be asked to contribute, and the lessee paying the owner's legal costs.

ACE is being paid $1 billion in Seven Group Holdings shares for the WesTrac business. Mr Stokes will emerge with 68 per cent of the new merged SGH business. The documents also show a series of related party transactions including an eight-year deal WesTrac has with a subsidiary of ACE to use its aircraft for a monthly fee of $165,000.

The documents reveal that $10.8 million in fees is payable by Seven Network should the deal not proceed.

Also disclosed: Seven's listed investments contain "an unrealised and unadjusted loss of [about] $60 million"; and KKR, Seven Network's joint venture partner in Seven Media Group, can exit its stake at will, triggering payment of a deferred tax liability of $600 million. Sphere: Related Content

Liberty Enters £41 Million Sale Leaseback of Flagship London Store

City A.M. - March 17, 2010

Liberty yesterday said it is being pursued by more than one suitor after the West End department store confirmed it had sold its building for £41.5m in a leaseback scheme.

The company sold the freehold interest in the 125,000-square foot store, off Regent Street, to private property investment firm Sirosa.

Liberty will take a 30-year lease on the building at an initial annual rent of £2.1m, with five yearly fixed rent reviews. The firm, which is 68 per cent owned by property group MWB Holdings, was set up 135 years ago. The deal still depends on the agreement of MWB and other investors.

Meanwhile Liberty admitted that it has been the target of more than one takeover approach.

A statement yesterday said: “Liberty confirms that it has received approaches which may or may not lead to an offer being made for the company.

“At this stage, it is too early for the board to determine whether or not these discussions will result in any formal offer being made for the company.”

The company has said that the sale of the building will not affect any talks in connection with a takeover bid for the business. Liberty has not identified the takeover contenders. Sphere: Related Content

Metro Completes "Wrap" Sale Leaseback of Two German Shopping Centers

Property Funds World - March 15, 2010

Captiva Capital Partners III has acquired two shopping centres via a structured sale and leaseback transaction with Metro.

The centres, Förde Park in Flensburg and the Saarbasar in Saarbrucken, are fully let, flagship retail destinations, hosting a wide variety of specialist stores spread over the combined lettable area of over 85,000 square metres.

They include anchor tenants like Media-Markt, Real, Praktiker, H&M, Aldi and C&A. The centres annually attract over 8.7 milliom visitors.

Metro has signed a long term lease over the entire lettable area on both centres. In addition, it will continue its existing role of centre management.

As part of the yransaction, Captiva has also entered into option agreements with Metro to acquire three additional centres over the next three years. These centres are comparable to Flensburg and Saarbrucken and will also benefit from a long-term master lease with Metro.

Stephan Fritsch, principal at Natixis Capital Partners, which advised Captiva, says: "The centres are well located, established and dominant in their markets. Consumers are attracted by the easy access to a range of international brands, whilst the retail tenants appreciate the attractive rent levels and high footfall. The master lease structure provides Captiva with access to long term, stable income. Sphere: Related Content

NHI Agrees to Sale Leaseback of Three Nursing Homes and a Hospital

Nashville Business Journal - March 12, 2010

National Health Investors Inc. has announced the purchased of three assisted-living facilities and a psychiatric hospital, the company announced today, as part of $29.7 million in deals that will turn NHI into a landlord for the facilities' operators.

The assisted-living facilities, located in Minnesota and with a total of 102 beds, are run by Suite Living Senior Specialty Services, which was paid $17.2 million to sell the buildings and become a tenant. It has signed a 15-year lease that starts at $1.72 million a year (a 10% initial yield), NHI said.

The California acute psychiatric hospital, Alvarado Parkway Behavioral Institute in La Mesa, was bought for $12.5 million from Helix Healthcare. The cost of its 15-year lease will start at $1.5 million a year (a 12% initial yield.) Sphere: Related Content

Claire’s Stores Agrees to $18 Million Sale Leaseback of HQ near Chicago

GlobeSt.com - March 12, 2010

Claire’s Stores has sold its 527,661-square-foot headquarters and distribution center here for $18 million to Angelo Gordon Net Lease Fund in a leaseback deal. The building, which includes about 110,000 square feet of office space, is on 28 acres just off of Interstate 90 and directly adjacent to the Huntington Woods corporate park.

Having gone out of style during the economic downturn, sale-leasebacks are on a massive comeback, says Robert Brennan with CB Richard Ellis. Brennan, Andrew Sandquist, Jonathan Wolfe, John Suerth and Jason Lev represented Claire’s in the deal. Reasons for the comeback include an enormous amount of equity facing a lack of quality product on the market, and improved mortgage financing alternatives, Brennan tells GlobeSt.com. “There’s a difference between the leasing market, which is way down right now, and the investment market. There’s no question the industrial market is facing vacancy challenges, but on the investment side, especially in the past 60-90 days, there’s been a significant surge in activity.”

Lenders have come back to Chicago industrial investment, agrees Sandquist. He says the price in this deal was very healthy, “if you look at the comparable market rent, this property sold for the mid-$30 per square foot, that’s pretty healthy for such a large building.” Sandquist says there’s been an uptick in local activity as well, with deals such as the New York-based W.P. Carey & Co. buying the 100,000-square-foot Mori Seiki headquarters building in the Huntington Woods park for $32 million in December. The machine-tool tenant also has a 20-year lease.

Claire’s will lease the property back for 20 years. The jewelry and accessories retailer has 2,969 stores in the United States and Europe. Sphere: Related Content

Stobart Group Agrees to £61 Million Sale Leaseback of 70 Acre UK Port Terminal & Distribution Center

Stobart Group Web Site - March 1, 2010

Stobart Group ("Stobart" or "the Group"), the UK's leading provider of multimodal transport and logistics solutions, has agreed to dispose part of its Inland Ports asset to Legal & General Assurance (Pensions Management) Limited, for £61m rising to £62.5m on the satisfaction of further conditions. A key element of this sale is a new 528,000 square feet, state-of-the-art sustainable distribution centre developed by Stobart Group. This was recently announced as the new Northern distribution centre for Tesco's fresh operations. In addition, Stobart was confirmed as the transport contractor for Tesco from this distribution centre.

The asset disposal illustrates the fundamental strategy of the Stobart Group to invest in assets to develop existing and new customer relationships and then realise the value of the asset, at a profit, to reinvest elsewhere in the business. The disposal value will generate an initial return on investment in the region of 20% with the potential for further returns. This demonstrates the inherent value within the property assets held on the balance sheet of the Group. The ongoing pre-tax profit impact of the asset disposals is neutral.

The £61m is satisfied by a cash payment of which the majority will be used to repay existing borrowings with RBS and Barclays, significantly reducing the core debt in the balance sheet of the company at 28 February 2010 to around £45m. This will allow the Group flexibility in securing the optimum debt structure for future asset developments, including the commenced capital expenditure programme at London Southend Airport.

Stobart also expects to increase the throughput of the Inland Port terminal (currently only 50% utilised) when the site is fully operational and when the existing Valencia fresh produce rail service is extended to Widnes. This next phase of the pioneering Stobart Rail service will allow Tesco to transport its fresh produce from Southern Spain to Northern England by rail, delivering significant environmental benefits.

In addition to the disposal of the fresh produce distribution centre, the Stobart Ports division has entered into a 25 year sale and leaseback arrangement on the Inland Port terminal. Following this, the Group expects to develop further phases on the remaining 95 acres of the Inland Port in response to customer demand. Sphere: Related Content

Eroski Seeking Further Sale Leaseback Deals in Spain

PropertyEU - February 26, 2010

Spanish supermarket group Eroski is near to concluding further sale-and-leaseback transactions of property assets following on from the recent EUR 74 mln disposal of supermarkets to US investor WP Carey, PropertyEU has learned.

Cushman & Wakefield, which is advising Eroski, confirmed that several transactions are in due diligence but it would not comment on the size of the potential deals or provide further details. Rupert Lea, a partner in C&W's Madrid office, said, however, that the players in the prospective deals are international investors, but added that UK investment company Topland and WP Carey, the US sale-and-leaseback specialist, are not involved.

In early February WP Carey completed a two-stage sale-and-leaseback transaction with Eroski. The second tranche, totalling EUR 36 mln, was for the purchase of 16 retail facilities from the Spanish supermarket operator. The first tranche, totalling EUR 38 mln and comprising 13 sites, closed in December 2009. German lender Eurohypo provided financing for the deal.

Topland carried out a two-phase sale-and-leaseback with Eroski totalling about EUR 710 mln in late 2008 and early 2009. Sphere: Related Content

Landes Group Acquires 313 CVS Pharmacy Stores for $1.375 Billion in 2009

PRWeb - February 24, 2010

Landes Investment Group, Inc. (the “Landes Group”), a privately held real estate investment and development company, announced today that it has acquired a total of 313 CVS pharmacy properties valued at $1.375 billion. The acquisition of the properties, located in 33 states, came via three separate deals in 2009, the last of which was completed in mid-December 2009.

“Last year was an extremely difficult time for many businesses, so we’re pleased that we were able to acquire these properties at competitive rates in the midst of a challenging economy when so few transactions were being done,” says Brett Landes, the company’s founder and president. “The fact that we were able to have such a successful year speaks to the strength of our relationship with CVS, as well as our reputation and history.”

The Landes Group purchased the properties from CVS as sale-and-leaseback transactions, by which the company buys land and buildings from CVS, then leases them back over a long term. The first round of transactions was completed in June 2009 for 122 properties valued at approximately $495 million; the second round closed in September 2009 for 25 properties valued at $137 million; and the third round was completed in December 2009 for 166 properties valued at $743 million.

The deals were closed through LLWG Capital, Inc., a related entity of which Landes is President. Barclays Capital, a global financial services provider, was the primary investment banker for the deals. Liechty & McGinnis, LLP served as advisor and legal counsel on the transactions. Sphere: Related Content

Royal Mail Seeking £500 Million Sale Leaseback of UK Mail Sorting Facilities

The Independent - February 21, 2010

Royal Mail is planning to raise an estimated £500m by selling up to half its mail sorting centres.

King Sturge, a property agent, has been asked to sell three centres in Warrington, Northampton and Manchester to test the market. It is hoped these will raise around £50m, with 25 to 35 centres in total likely to be sold off over the next 12 months.

Under the sale-and-leaseback arrangement, the centres would be bought and run by property companies, while Royal Mail would rent them back for 20 years. The sales would be one of the last big moves by outgoing chief executive Adam Crozier, whose controversial policies to reform the company have included closing thousands of post office branches and cutting jobs.

Mr Crozier is joining broadcaster ITV as chief executive later this year.

King Sturge declined to comment. Royal Mail did not contradict the story but a spokeswoman insisted: "We are committed to, and investing in, these sites for the long-term and have no plans whatsoever to vacate them." Sphere: Related Content

Eroski Completes $50 Million Sale leaseback of 16 Supermarkets in Spain

Property Funds World - February 18, 2010

W. P. Carey’s real estate investment trust affiliate CPA:17 – Global has completed the second tranche of a EUR74m (USD104m) corporate sale leaseback transaction with Eroski Sociedad Cooperativa.

The second tranche, totalling EUR36m (USD50m), is for the purchase of 16 retail facilities from the Spanish supermarket operator.

The first tranche, totalling EUR38m (USD54m) and comprising 13 sites, closed in December last year.

The properties are leased to Eroski under a long term lease. Financing for the investment was provided by Eurohypo.

Established in 1969, Eroski is the third largest food and consumables retailer in Spain. It operates more than 100 hypermarkets and 1,200 supermarkets, franchises over 500 Aliprox fast-food outlets, and manages gas stations, drugstores and travel agencies.

Eroski is the latest European retailer, following transactions with Tesco, OBI and Hellweg, to partner with W. P. Carey in order to release capital from their real estate.

Jeffrey Lefleur (pictured), executive director of W. P. Carey, says: "The closing of this financing further demonstrates W. P. Carey's ability to provide sale-leaseback financing in Spain and highlights our goal of providing defensive, risk management-driven investments for our investors in a breadth of different companies throughout Europe. Our global investment strategy and depth of capital resources will allow us to continue to provide long term financing to corporate real estate owners at a time when more traditional sources of financing are not available." Sphere: Related Content

Eroski Closes $51 Million Sale Leaseback of 13 Supermarkets in Spain

IDD Magazine - December 23, 2009

W.P. Carey & Co. announced Wednesday that one of its REITs, CPA:17 -- Global, completed its first sale-leaseback transaction in Spain.

The deal involved the acquisition of a 13-facility supermarket portfolio from Spanish supermarket operator Eroski Sociedad Cooperativa for $51 million in cash.

The supermarkets are being leased back to Eroski, Spain's third-largest food and consumables retailer, on a long-term basis. A spokesman for W.P. Carey tells IDD the lease period falls within the firm's typical 15-25-year time frame, and W.P. Carey's ability to pay in cash was a major reason the deal was able to close by year-end.

"The Eroski acquisition represents an opportunity to enter the Spanish market by investing in well-located retail locations leased to an established brand-name retailer," Jeffrey Lefleur, a W.P. Carey executive director, said in a press release. "In addition, the acquisition is consistent with W.P. Carey's investment strategy of purchasing mission-critical assets that also provide industry and geographical diversification to our investment portfolio."

W.P. Carey specializes in sale-leasebacks, having completed two deals in the U.S. two weeks ago. The firm's spokesman says W.P. Carey usually engages in sale-leaseback transactions with companies in the midst of restructuring processes.

In the case of Eroski, the Basque Country-headquartered company reached an agreement earlier this week with 23 lenders to restructure its debt into one $2.4 billion loan, which is due to mature in January 2014. Goldman Sachs has been advising Eroski on its debt restructuring.

Cushman & Wakefield partner Rupert Lea and associate Yola Camacho represented Eroski on the sale-leaseback transaction. Sphere: Related Content

Accor Completes EUR154 Million Sale Leaseback of Five Hotels in Europe

Accor Web Site - February 19, 2010

As part of the ongoing deployment of its “asset right” strategy, Accor has announced an international real estate transaction involving the sale of five hotels (representing more than 1,100 rooms) in four European countries for €154 million.

The transaction has been carried out with Invesco Real Estate, a major real estate manager in the United States, Europe and Asia, with assets under management of more than €18 billion, of which €650 million in European and US hotel properties. The transaction involves five hotels:

- The Novotel Muenchen City in Munich (307 rooms)
- The Novotel Roma la Rustica (149 rooms) and the Mercure Corso Trieste in Rome (97 rooms)
- The Mercure Zabatova in Bratislava, currently under construction (175 rooms)
- The Pullman Paris La Défense (384 rooms)

The Novotel and Mercure hotels have been sold under a sale and variable leaseback agreement for €74 million, of which €17 million for the Mercure Zabatova. They will continue to be operated by Accor under a 15-year variable-rent lease (corresponding to 22% of average annual revenue) that can be renewed at Accor’s initiative. Insurance, property taxes and structural maintenance costs will now be at the owner’s expense.

The Pullman Paris La Défense has been sold for €80 million, including a €10-million renovation program at the owner’s expense. The hotel will continue to be operated by Accor under a 12-year management contract that can be renewed six times.

Financially, the transaction enables Accor to reduce adjusted net debt by €93 million in 2010 and will have a neutral impact on operating profit before tax and non-recurring items.

The transaction confirms Accor’s ability to continue actively pursuing its “asset right” strategy, even in a difficult economic environment, with the goal of reducing earnings volatility and sharpening the focus on its core competency – hotel management. Sphere: Related Content

Sainsbury Agrees to £55 Million Sale Leaseback of Supermarket in West London

Property Week - February 12, 2010

Sainsbury’s has agreed a sale and leaseback with Aviva Investors in Hayes, west London.

The pair agreed to regear the long leasehold at the 125,000 sq ft Sainsbury’s supermarket and petrol filling station at Lombardy Retail Park.

Aviva paid £55m for the leasehold and Sainsbury’s agreed a rent linked to the Retail Prices Index.

The Sainsbury’s deal is one of the largest purchases of a single supermarket in the last five years and is further evidence of the number of institutions keen to buy supermarket assets.

Grocery sales have continued to rise, despite the recession.

Jones Lang LaSalle advised Sainsbury’s; Briant Champion Long advised Aviva. Sphere: Related Content

Topland Seeking £200 Million for Net Leased Property Portfolio

Property Week - February 19, 2010

Topland plans to sell 20 assets to reinvest in larger corporate sale and leaseback deals.

The 20 UK assets across a range of sectors being sold include: a BUPA hospital on Gray’s Inn Road, WC1 for around £10m, an 84,000 sq ft City office at 51-55 Gresham Street, EC2 at £46.8m, which would reflect a yield of 7.5%; an 184,008 sq ft Royal Mail sorting and distribution centre in Plymouth at £14.7m, a 60,803 sq ft Call Centre let to Orange being marketed at £10.8m and a range of Budgens, Sainsbury, Somerfield and Tesco supermarkets priced between £3m and £8m.

Tom Betts, Topland’s director of structured finance, said: “There is currently strong demand for good covenants and longer term income driven by the institutions and equity rich investors. The properties are all at the smaller end of our portfolio but are in an attractive price range which banks can fund.

“Topland is currently focused on larger assets and corporate sale-and-leasebacks both in the UK and Europe.”

Cushman & Wakefield, Jones Lang LaSalle and Lewis & Partners are advising on sales.

Eddie Zakay is chairman of Topland’s UK-based operations. Sol Zakay is based in Topland Group’s headquarters in Gibraltar. Sphere: Related Content

Imagine Schools Closes $61 Million Sale Leaseback of Seven Charter Schools

GlobeSt.com - February 16, 2010

Inland Public Properties Development Inc, a subsidiary of Inland American Real Estate Investment Trust Inc., has purchased seven charter schools for $61 million. The sales-leaseback deal includes schools managed by Imagine Schools Inc.
Inland officials say this deal is innovative in the way it involves both the public and private sector.

“This innovative transaction allows Imagine to focus on its critical mission of public student education and development, while we focus on providing the capital for the bricks and mortar,” says Chuck Jones, president and CEO of IPPD. “We think this is the true definition of a public-private partnership, and one that positions IPPD for continued growth in the social infrastructure community.”

The seven charter schools are located in Arizona, Colorado, Florida, Maryland, and Washington, DC. Imagine will lease back the schools for 20 years on a triple-net master lease. The rental rate on the deal was not disclosed.

“This transaction demonstrates our commitment to social infrastructure assets, which are stable, income producing properties supported by state and federal funding programs,” says Lori Foust, CFO of Inland American Business Manager & Advisor Inc. “These charter schools are strong additions to Inland American’s diverse portfolio.”

Imagine has 71 public charter schools educating more than 36,000 children in 11 states and Washington, DC. Sphere: Related Content

Imagine Schools Enters $44 Million Sale Leaseback of Five Charter Schools

Kansas City Business Journal - January 22, 2010

Entertainment Properties Trust has increased its investment in public charter schools by $48 million, the company said Friday.

The company (NYSE: EPR) purchased five new charter schools from Imagine Schools Inc. of Arlington, Va., at a cost of $44 million and agreed to finance expansion of two others at a cost of $4 million.

Entertainment Properties Trust, which is based in Kansas City, will lease the five new schools back to Imagine Schools, a leading operator of public charter schools.

Entertainment Properties Trust’s portfolio now includes 27 charter schools that Imagine Schools operates in nine states and the District of Columbia.

“We are excited to add to our public charter school portfolio and enthusiastic about the prospects of Imagine and this investment category,” Entertainment Properties Trust CEO David Brain said in a release.

In an interview, Brain said the Imagine Schools transaction announced Friday fulfilled Entertainment Properties’ 2007 commitment to make at least $200 million worth of acquisitions from Imagine. It also increases Entertainment Properties’ footprint in what Brain called “a huge new category” for private real estate investment.

“Public charter schools are now a 4 or 5 percent slice of a couple trillion dollar public education real estate market,” Brain said.

Heretofore, new public schools have been financed almost exclusively through school-bond issues, he said. But Brain said the move to “decentralize and debureaucratize public education” is creating an increasing number of charter schools, which aren’t as cost-efficiently financed through bond issues.

The five new charter schools purchased by Entertainment Properties contain more than 357,000 square feet of educational space and have an enrollment in excess of 2,600 students. All of the Imagine schools owned by Entertainment Properties are governed by a triple-net master lease with a 25-year primary term. Sphere: Related Content

Legal & General Launches £500 Million Net Leased UK Property Fund

Property Funds World - February 8, 2010

Legal & General Property has launched the LPI (Limited Price Inflation) Income Property Fund, which aims to offer defined benefit pension schemes a way to invest in property coupled with a secure source of income, primarily government-backed, all with inflation-linkage.

Providing pension investors with an alternative to traditional index-linked gilts and bonds, which produce average real yields of around 1.5 per cent, the fund aims to deliver a real) yield in excess of four per cent per annum.

To achieve this, the portfolio will be structured around properties whose value is predominantly derived from their leases.

The fund will hold assets which will primarily be let to government or quasi-government tenants for a minimum of 20 years, with their income streams linked to inflation. These assets provide secure, inflation-linked income streams ideally suited for pension fund investors, combined with significantly lower volatility than would be expected from a typical property fund.

The fund will take advantage of the sale-and-leaseback assets currently being offered to LGP through its access to on and off-market opportunities, leveraging its in-house property expertise and relationships with banks and public sector bodies.

The fund will be diversified both by sector class and geography across the UK and will have a target size of GBP500m, with no gearing, either direct or indirect.

Michael Barrie (pictured), director of balanced funds at Legal & General Property, says: “Offering a new innovative approach to pension investors looking for a secure higher yield alternative to long-dated index linked bonds, the Fund combines liability matching with reduced volatility, based on inflation-linked income streams.

“Although the capital values have recovered strongly in recent months, the yield gap between inflation-linked properties and equivalent index-linked gilts offers a very attractive opportunity to our investors. It may be some while before rental levels in the UK begin to recover and many investors will prefer an income stream that rises with inflation over one that is linked to the underlying occupier market.” Sphere: Related Content

Arizona House OKs Additional $300 Million Sale Leaseback of State Buildings

Arizona Daily Star - February 10, 2010

Without a vote to spare, the House on Tuesday gave final approval to putting the state in debt for the next 20 years to balance the books this year.

The 31-27 vote came over objections by lawmakers from both parties who had different reasons they did not like the plan. But a majority said they saw little alternative.

Rep. Nancy McLain, R-Bullhead City, said the state's position is not unlike one she faced during the recession of the early 1990s with her janitorial firm.
First she and her husband stopped taking a salary, then borrowed against a bank line of credit until that was exhausted, then maxed out the credit cards, just to stay afloat, she said.

Rep. Bill Konopnicki, R-Safford, said he also has run into situations as the owner of McDonald's restaurant franchises, and recognizes there is a place for debt. But this is excessive.

"Never, never, never do you take a 20-year note to meet payroll," he said. "This is absolutely, totally irresponsible."

The measure, which now goes to the governor, orders the sale of another $300 million in state buildings, which the state will lease back for 20 years. At the end of that time, ownership will revert back to the state.

It also calls for borrowing $450 million outright for the next 20 years. To get around the constitutional limit on state debt, repayment will come from future lottery proceeds, not the state general fund.

Those moves still leave the state with a $450 million gap. A measure, already approved by the Senate, would delay making a $350 million payment due to public schools in April until the next fiscal year, and would defer $100 million in aid to the state's three universities.

House Republican leaders put off bringing that issue to the floor because they were unsure they could get the necessary 31 votes for final approval of that plan.

This won't be the first state building sell-off. It already sold off $735 million worth of buildings last month in a similar deal to generate immediate cash.
In addition to those measures, the House and Senate have previously approved asking voters for a temporary 1-cent-per-dollar hike in state sales taxes. But even if that measure is approved on May 18, the revenues won't flow into the treasury quickly enough to help balance the budget for the fiscal year that ends June 30. Sphere: Related Content

Ballard Power Agrees to $19.5 Million Sale Leaseback of Canadian HQ

Ballard Power Web Site - February 8, 2010

Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) announced that it has entered into a sale-and-leaseback agreement with Madison Pacific Properties Inc. (TSX: MPC) (www.madisonpacific.ca). Ballard will sell its head office building site in Burnaby, British Columbia in return for gross cash proceeds of approximately C$20.8 million (US$19.5 million). The company will also enter into an initial fifteen-year lease agreement for the same property. The transaction is expected to close on March 9, 2010.

Bruce Cousins, Ballard's Chief Financial Officer, said, "This transaction presented an opportunity to extract cash from a non-core asset and further fortify our strong balance sheet, augmenting the company's cash reserves to approximately $100 million. At the same time, Ballard's continued use of the site is secured through a long-term lease arrangement."

John Sheridan, Ballard's President & CEO, added, "This transaction, along with the monetization of our Share Purchase Agreement and our progress in market development in 2009, has positioned Ballard for strong performance in 2010. We continue to expect revenue growth in excess of 35% and improved cash flow from operations by 30% in 2010, and positive EBITDA performance during 2011." Sphere: Related Content

CWT Nearing $445 Million Sale Leaseback of Two Logistics Facilities in Singapore

The Business Times - February 2, 2010

Logistics group CWT Limited has proposed the sale and leaseback of two of its logistics facilities in a deal worth $445 million (US $313 million.)

CWT will sell CWT Commodity Hub and CWT Cold Hub to Cache Logistics Trust, for the purposes of Cache's eventual public listing as Asia's first logistics-focused real estate investment trust.

Cache, whose setting up is subject to regulatory approval, will be managed by ARA-CWT Trust Management (Cache) Limited. CWT will have a 40 per cent stake in the manager. The remaining stake will be held by ARA Asset Management Limited - a real estate fund manager tied to Hong Kong tycoon Li Ka-shing's Cheung Kong group.

The trust's property manager will be Cache Property Management Pte Ltd. CWT will have a 60 per cent stake in the property manager and the remaining 40 per cent stake will be held by ARA.

CWT said it will book a one-off gain of $157.7 million from the sale of the two logistics facilities, which are valued at $443 million. They are part of CWT's primary assets, located close to PSA Terminals, major ports and Singapore's central business district.

Cache will pay $445 million for the two facilities, of which $65 million will be settled in the form of Cache units. The rest will be paid for in cash.

CWT will use the sale proceeds to expand its logistics business and to settle its outstanding borrowings early, which it says will result in a significant boost to the group's financial muscle and competitiveness in the region.

In its statement yesterday, CWT also explained that Cache will be the first of its kind in Asia to capitalise on the positive outlook of the global logistics sector and the synergistic business models of CWT and Cache.

Cache holds an investment mandate that targets logistics properties in the Asia-Pacific region, with an initial portfolio of six logistics properties in Singapore, including CWT Commodity Hub and CWT Cold Hub.

CWT said Cache is expected to leverage on the rights of first refusal granted by CWT and the strengths of CWT to 'pursue yield-accretive acquisitions to achieve long term, regular and predictable distributable income for unitholders'.

Loi Pok Yen, group CEO of CWT, said: 'The creation of CLT (Cache) to invest in yield-accretive logistics properties in Asia is a historic milestone and enables CWT to own a capital-efficient asset-owning vehicle to complement our core logistics business operations as well as enhance the group's ability to expand its business regionally and globally.'

'In addition, the sale and leaseback will enable the group to participate in CLT through its holdings of Cache units and derive a stable income stream from CLT's distributions,' he said.

CWT is the largest listed logistics company in South-east Asia, offering integrated logistics solutions to the chemicals, commodities, automotive, marine, oil & gas, defence and industrial sectors. Sphere: Related Content

AIB Seeking €40m Sale Leaseback of 23 Bank Branches in Ireland

The Irish Times - February 3, 2010

With the serious scarcity of funds still hampering the banking system, AIB looks set to raise more than €40 million from the sale of 23 bank branches in Dublin and the provinces.

Sale and leaseback terms have been agreed on 11 of the buildings and contracts are due to be exchanged in the next three weeks on the remaining 12 branches.

Yields generally for the new owners will be between 7 per cent and 7.5 per cent.

Ever since AIB first started offloading branches in the autumn of 2006 it has used three different estate agents to sell them through high profile campaigns.

However, on this occasion it commissioned Davy, the stockbrokers, to market the 23 branches among its wealthy investor clients.

The decision to go for a low key campaign is thought to have been prompted by a desire to keep the sale out of the public realm at such a difficult time for the banking sector.

On Monday the bank refused to acknowledge that it was in the process of selling another tranche of its 182 branches.

“We have no comment to make,” a spokesman said.

The 11 branches about to be sold range in value from €580,000 for a building in Kenmare, Co Kerry, to one in Capel Street, Dublin 1, at €4.2 million. The yield in this case will be 7.25 per cent, marginally better than for the Kerry property.

Other branch sales being handled by Davy include buildings in Dalkey and Sutton in Dublin as well as Castlebar, Leixlip, Celbridge, Portlaoise, Cavan, Tullamore, Carlow and Enniscorthy.

A banking source said all the branches are to be bought by cash customers – “when the music stopped they happened to be on the right side of the trade”.

Funds on deposit with banks in Ireland currently exceed €280 billion, according to the latest quarterly report from the Central Bank.

AIB does not help finance the purchase of any part of its network of branches as a matter of policy. Most of the 50 branches sold over the past three-and-a-half years were bought by local investors, some of whom cherish the kudos of owning their local branch.

The most valuable of the bank buildings sold in 2006 showed an initial yield of 2.8 per cent. The returns to investors have rapidly increased with each subsequent sale in line with the stronger yields available in the investment market generally.

Like the previous branches sold, the 23 buildings being handled by Davy will be secured by long term leases for a period of 20 years with a break option in year 15.

The leases will also be subject to five yearly rent reviews. Sphere: Related Content

Hanesbrands Enters $23.5 Million Sale Leaseback of Distribution Center in NC

The Business Journal of the Greater Triad Area - January 29, 2010

A Pennsylvania investment firm has bought a Hanesbrands Inc. distribution center for $23.5 million and will lease it back to the apparel maker.

Winston-Salem-based Hanesbrands recently sold its 930,451-square-foot distribution center in the Northridge Business Park off of U.S. 52 in Rural Hall, to Winston-Salem NC Associates LP, according to Forsyth County real estate records.

Winston-Salem NC Associates is owned by Blue Bell, Penn.-based Capital Solutions Inc. Fran Donato, principal at Capital Solutions, declined to discuss the details of the deal, but said the purchase is being financed by a combination of company funds and bank loans.

Matt Hall, Hanesbrands spokesman, said that the deal allows Hanesbrands to lease the building for the next 12 years while continuing to operate the distribution center. He declined to provide the lease terms. Sphere: Related Content

RBS Considering £500 Million Sale Leaseback of HQ Near Edinburgh

Telegraph - February 1, 2010

Royal Bank of Scotland is considering a sale and leaseback of Gogarburn, its flagship Scottish headquarters, as part of a strategic review of its £4bn property portfolio.

A sale of the 1 million square foot office complex on the outskirts of Edinburgh would be the clearest example yet of the new management's break with the past.

Gogarburn was Sir Fred Goodwin's pet project as chief executive of the bank, which is now 84pc-owned by the state after being bailed out with £53.5bn of taxpayer money. The executive wing became known as "Fred's folly" and his involvement is said to have stretched right down to choosing the wallpaper.

The site, set in 100 acres of woodland on the site of a former psychiatric institution, cost £350m to build and was opened in 2005.

Although a strategic review of the group's £4bn own-premises portfolio has begun, Stephen Hester, the new chief executive, has stressed there is no question of moving the 3,200 staff.

However, insiders said a sale and leaseback could be a more efficient use of the bank's resources. One said: "Stephen Hester and the new finance director have every area of cost under challenge and review. There are lots of feasibility studies on every aspect of the operation. This sounds like one of them. Like all these things, some will fly, some won't."

RBS has a further £4bn of investment properties, currently rented out, that could also be put up for disposal. Should it be sold, Gogarburn alone would be expected to raise more than £500m.

Property experts said Gogarburn would make an attractive acquisition for a large property group, such as British Land or Land Securities, due to its unique attributes. Mr Hester is a former chief executive of British Land.

"Goodwin may have made some bad decisions, but Gogarburn was not one of them," a source said. "If RBS ever did decide to leave, a developer could easily arrange the premises for a number of different companies."

The complex is famous for the "street", a glass-ceilinged concourse lined with shops and restaurants. There is also an on-site nursery and a shuttle bus service direct to Edinburgh centre.
Gogarburn is the jewel in RBS's property crown but the bank is also reviewing its London properties. Some 20,000 staff are spread across 18 sites in London and teams are assessing whether they should be consolidated.

RBS is not averse to sale and leasebacks. Two years ago it raised £800m in property sales, including its landmark Coutts building. HSBC recently sold its Canary Wharf headquarters in a £773m sale and leaseback transaction.

A decision is not thought to be imminent as the strategic review is in its early stages.

The bank is in the process of selling off assets, including its RBS Sempra commodity trading joint venture. An outline £2.5bn deal had been agreed with JP Morgan but it has been jeopardised by US plans to ban banks from conducting proprietary trading.

RBS is now negotiating to sell JP Morgan just the international operation, which accounts for roughly half the business. Its partner, Sempra Energy, may attempt a buy-out of the rest. As a trading firm, Sempra Energy is exempt from the planned US rule. Sphere: Related Content

Piggly Wiggly Enters $28 Million Sale Leaseback of Distribution Center in SC

The Post and Courier - January 23, 2010

Piggly Wiggly Carolina Co., which operates 110 grocery stores throughout the Southeast, has sold its main, 615,650-square-foot storage warehouse near Summerville to a Charleston real estate investment company, which is leasing the space back to the supermarket chain.

The $28 million sale and lease-back deal will allow the company to focus on its core business of selling groceries and tap valuable cash to invest, said David Schools, Piggly Wiggly Carolina's chief executive officer.

"It'll help us manage our debt better and put more money into our current locations," he said, noting that a handful of stores are due for remodeling.

In 2008 the grocer made a similar deal with its truck fleet by selling it to Miami-based Ryder Systems and leasing the vehicles back to minimize risk and cut costs.

Piggly Wiggly Carolina sold its main distribution center to Charleston-based J.L. Woode, which already manages two other facilities for the supermarket operator -- its corporate headquarters building on Croghan Spur Road in West Ashley and a 428,887-square-foot warehouse in North Charleston.

While one reason for the sale was to generate cash, Schools said the deal isn't a sign of financial hardship.

"It's just a sign of us taking an asset and positioning it to best help us in the future," he said.

The move won't affect payroll at the company, Schools added. He said Piggly Wiggly employees will continue to maintain the facility under the long-term lease agreement.

The company built the distribution center in the Jedburg area along Interstate 26 in 1999. Sphere: Related Content

Spanish Real Estate Lawyers Benefit From Flood of Sale Leaseback Deals

Iberian Lawyer

While the majority of international real estate investors continue to reject the Spanish property market after its dramatic implosion, some at least have been attracted by a steady stream of sale-andleaseback offerings – work that many RE lawyers admit to being grateful for in an otherwise dead market.

One of the biggest European real estate deals this year involved Spain’s number two bank, BBVA, which sold a portfolio of 948 bank branches and landmark buildings throughout Spain to a consortium formed by Banco March and international private equity funds RREEF Alternative Investments, Area Property Partners and Europa Capital, for €1.2bn. BBVA was advised by Clifford Chance, the buyers by Freshfields and the banks syndicating the buyers’ loan by Linklaters and Uría Menéndez. BBVA is expected to release the remaining 20% of its property assets shortly.

On a smaller scale, Uría Menéndez advised Caixa Galicia on the sale and lease-back of 41 properties. The purchasers were advised by Baker & McKenzie.

Encouraged by this and other deals, Spain’s secondranked savings bank, Caja Madrid, issued a 25-year sale-and-leaseback prospectus for an initial lot of 58 branches. If the operation reaches its target price of €70m Caja Madrid will release more of its 2,183- branch network. Banco Sabadell and Banesto, which had originally planned to release their entire portfolios in one operation, will also now drip feed the market.

These deals, and last year’s equally epic €4bn sale of virtually all of Santander’s property portfolio, have persuaded Spanish corporates that they too can realise locked-up value by following the same process. A Jones Lang Lasalle study reveals that 32% by volume of real estate investment deals made in Barcelona this year have been related to sale-andleaseback deals.

Uría Menéndez advised travel specialist Grupo Marsans in the sale and lease of its Campo de las Naciones (Madrid) headquarters. The purchaser, German investment fund URE, was advised by Gómez-Acebo & Pombo. Utilities, transport and infrastructures company Acciona has now put up for sale-and-leaseback two of its Alcobendas, Madrid headquarter buildings, hoping to book €60m to its accounts. Swiss insurance giant Zurich has put its Barcelona headquarters on the block with the expectation of receiving at least €50m. Construction and infrastructure powerhouse Ferrovial is looking for a similar deal for its Madrid headquarters. It may earn €40m for the only building it owns, the rest that it uses are leased.

This move by the corporates will please the smaller law firms, which do not have big teams capable of handling hundreds of property deals simultaneously. In addition, there is less financial risk if the operation does not prosper with success fees now the order of the day.

RE lawyers are also however expecting a boost from the enactment of the new legal framework for investment companies to set up Real Estate Investment Trusts (REITs – SOCIMIs in Spanish), which details the compliance requirements to benefit from the beneficial corporate tax regime (18% instead of 30%) as well as exemption from taxation on dividend distributions.

The investment companies must have a minimum share capital of €15m, follow specific criteria on profit distribution and have an asset portfolio made up of at least 80% of real estate investments that can be rented or acquired with full legal title or through participation in companies. SOCIMIs, the Government hopes, will help stabilise the real estate market, bring new investment, and encourage housing rentals over the coming years. Sphere: Related Content

Whitbread Mulls More Hotel Sale Leasebacks

Property Week - January 15, 2010

The success of Whitbread’s first sale and leaseback last month could give the leisure operator the appetite to sell off a second portfolio.

The owner of Premier Inn, Beefeater and Costa Coffee achieved a yield of 5.5.% when it sold five hotels to M&G Investments for £36.7m.

Whitbread property director Mark Anderson says: “The sale price and yield achieved in the last batch was significantly ahead of our expectations. We were aiming for between 6% and 6.5%.”

“The consensus seems to be that capital values will remain strong for the next six months, so it would be a good time to exercise this strategy again. Discussions are ongoing with the board. We are not ruling it out.”

Anderson says the transaction was a “tester” to see what the group could raise for its hotel expansion programme. Whitbread already has a bank loan to fund its hotel development pipeline, but Anderson says sale and leasebacks could be “an alternative source of funding to back up the debt we already have in place with the bank.”

The leisure group chose hotels in Newcastle upon Tyne, Chester, Thurrock, Leicester and Plymouth from its portfolio of 520 freeholds. The sale of the hotels is due to complete this month. Whitbread has agreed to pay a total annual rent roll of £2m.

Anderson says that although the budget market is still growing, the decline in the wider hotel sector means the group is concentrating on building up a land bank of sites, rather than developing new properties.

This slump was reflected in Whitbread’s half-year results, released last November. Although revenues had risen by 3.1%, pretax profits were down by 10% on same period in 2008. Sphere: Related Content

La Caixa Studies Large Sale Leaseback of Spanish Bank Branch Portfolio

Cincodias.com (English Translation by Google) - January 12, 2010

La Caixa is studying to join the trend of reducing the property risk by selling part of its branch network. The box, which has the largest number of branches in the country, in 5,339 total, Deloitte commissioned the project's viability.

Santander and BBVA led the way, who later joined Banco Pastor and Caixa Catalunya, among others. It tries to sell funds and private banking customers packages with most central offices located in major capitals.

The selling entity obtains resources and liquidity to dispose of property assets, currently penalized in the balance, following into the room rented by the formula called sale & lease back. Normally, reserve an option to repurchase at the end of the lease.

For its part, the buyer may get annual returns of up to 6%. So, La Caixa has commissioned Deloitte financial and accounting report on the possibility to dispose of ownership of parts of its network, the largest in the industry, formed last September by closure of 5339 branches.

A spokesman for the Spanish first box noted that "Deloitte conducted the study in the same way that many others who care not performed at the end." The same sources added that there was no firm decision about it, nor on the number of offices to be included in the packages for sale. The president of La Caixa, Isidro Fainé, rejected this formula from asset sales during the presentation of results for the year 2008 almost a year ago.

Closures
In any event, industry sources said that the sale of branches depend on the restructuring of the sector itself, which had closed offices until September 1345, according to the Bank of Spain. International Financial Analyst (AFI), the excess capacity will lead to the elimination of 5,000 offices in over four years.

La Caixa has closed a total of 191 stores in the first nine months of 2009, with the reduction of roughly the same number of ATMs, which stood at a total of 7,923. Sphere: Related Content

ARA and CWT Discussing $1 Billion Sale Leaseback to Form New REIT in Singapore

Lushhomemedia.com - January 15, 2010

Shares of ARA Asset Management and CWT rose yesterday, when both companies confirmed plans to launch a regional logistics real estate investment trust (Reit) together.

ARA, a real estate fund manager tied to Hong Kong tycoon Li Ka-shing’s Cheung Kong group, saw its shares hit a year high. They gained seven cents or 7.8 per cent to close at 97 cents.

Shares of logistics firm CWT put on two cents or 2.4 per cent to close at 84.5 cents. The counter has hovered above the 80-cent mark since late December.

Investors were probably cheered by news of the Reit venture between ARA and CWT. In a joint release, the firms said that they are ‘in advanced confidential discussions’ and have made a ‘confidential submission’ to the Singapore Exchange (SGX) to set up and list a logistics Reit here. They have also made submissions to other relevant regulatory authorities.

‘It should be noted that no definitive agreements whatsoever have been executed,’ they highlighted. They added that they have not obtained approvals from regulators, including SGX and the Monetary Authority of Singapore.

ARA and CWT were responding to a Reuters article, which said that the two plan to launch a Reit holding properties worth some $1 billion, and DBS would manage the listing. The information came from ‘a source involved in the transactions’.

While both companies confirmed that they were working together on a Reit, they did not verify the other details mentioned in the Reuters report.

In mid-December, CWT gave the market some clues on its plans. It received a query from SGX on an increase in its share price, and revealed that it was in talks to sell and lease back its logistics facilities for the potential creation of a logistics Reit. Sphere: Related Content

Natural Cool Completes $40.3 Million Sale Leaseback of Building in Singapore

InSing.com / ChannelNewsAsia.com - January 13, 2010:

Mainboard-listed Natural Cool Holdings said its unit has told its property at 29 Tai Seng Avenue to Emirates Tarian Capital for S$53 million.

After the deal is done, Natural Cool Investments will leaseback the property for 10 years at an annual average rent of S$4.74 million (an initial yield of 8.95%.)

Natural Cool's CEO, Joseph Ang, said the sale is in line with the firm's efforts to adopt an asset-light strategy.

He added that the firm has not decided what to do with the proceeds of the sale, but may use it to repay bank borrowings, to distribute to shareholders as dividends, or to use as working capital to fund future growth and expansion.

The proposed sale and leaseback deal is subject to shareholder approval, as well as legal and binding due diligence on the property. Sphere: Related Content

State of Arizona Sale Leaseback Raises $735 Million

The Arizona Republic - January 15, 2010

The sale of state buildings to investors was so successful that Arizona lawmakers say they hope to do another round to raise up to an additional $300 million.

The two-day sale that ended Wednesday drew $735.4 million from investors.

"We'll have the money in state coffers by January 26," said Alan Ecker, a spokesman for the state Department of Administration.

The state went to the public bond market to sell certificates of participation in a variety of state buildings, including the recently completed archives building, the tower that houses the Governor's Office and six prison buildings in Florence. The state's death row is not part of the sale.

The investments carry a 4.57 percent interest rate, and maturity dates on the certificates vary from three years to 20 years. Interest is expected to cost the state about $400 million, for a total payback of $1.1 billion.

The state retains control of the 14 buildings, which it will continue to occupy and lease back from investors.

Repayments to the certificate holders will come from semiannual lease payments made from the state's general fund, according to the prospectus the state issued on the sale. If the state were to default on the lease payments, the trustees for the investors would take ownership of the buildings.

House Speaker Kirk Adams, R-Mesa, was buoyed by the results, which matched legislators' projections of how much quick cash they believed the sale could net.

"We have more capacity," Adams said. He is aiming for another sale, this time to bring in $200 million to $300 million. Lawmakers must approve a bill to authorize a further sale.

Rep. John Kavanagh, R-Fountain Hills, said the $735 million arriving in the Treasury later this month will help, but not erase, the state's deficit.

"I don't think that gets us home," he said. Lawmakers had already factored the sale proceeds into their budget calculations, leaving a $1.4 billion deficit.

The sale, akin to a bond sale, allowed investors to pay as little as $5,000 for a certificate of participation.

Retail investors, such as individuals, bought $113.8 million in certificates, or 15.5 percent of the total. Institutional investors accounted for the remaining 84.5 percent, or $621.6 million, according to the Department of Administration.

Other buildings that are now technically owned by investors include the state hospital, state legislative offices and the Veterans Memorial Coliseum.

For a full list of the buildings, go to politics.azcentral.com. Sphere: Related Content

Tesco Enters EUR 36 Million Sale Leaseback of Distribution Center Near Prague

Property Magazine International - January 14, 2010

Deka Immobilien GmbH has acquired the Tesco Distribution Centre in the Prague metropolitan area in the Czech Republic. The logistics property is part of the portfolio held by the open-ended property fund Deka-ImmobilienEuropa. The vendor is Tesco Group PLC, the world’s third largest grocery retailer. The purchase has been implemented as part of a sale and lease-back agreement. Cushman & Wakefield acted on behalf of Tesco Group PLC.

The floor area of around 60,100 sqm is fully let on a long-term basis to Tesco Stores CR, a subsidiary of Tesco Group PLC. The property is situated in an established logistics location with good transport links only 14 km outside Prague. This is the second purchase of a Tesco logistics facility for Deka-ImmobilienEuropa in 2009. In summer, the fund invested some €34 million in a property in the Warsaw metropolitan area, Poland. Sphere: Related Content

Steinwedell Departs AIC Ventures

Austin Business Journal - January 11, 2010

AIC Ventures Managing Partner David Steinwedell, who closed more than $375 million during his tenure, resigned from the company Friday.

The company said the executive left to pursue real estate opportunities. He joined AIC as managing partner of acquisitions in January 2008 and helped grow assets to more than $750 million.

“Steinwedell helped AIC to further entrench AIC’s position as the preeminent provider of middle market sale leaseback capital by driving record acquisition volumes during a difficult economic environment and expanding our presence into new markets that were untapped prior to David’s tenure. We wish him the best in his new endeavors.” AIC President Peter Carlsen said.

AIC employs 40 and has completed transactions worth more than $1 billion in 28 states. Sphere: Related Content

LaPuma Departs WP Carey

Reuters - January 15, 2010

A spokesman for the company, which is preparing to invest a recently-raised $788 million in commercial property, said LaPuma left in late December by "mutual agreement."

LaPuma was not available for comment.

The spokesman said the international unit includes a 15-strong team, which the company was looking to beef up with real estate managers with international acquisition experience.

LaPuma told Reuters in June that W.P. Carey was looking to raise $1 billion to exploit market opportunities globally. He also said the firm was mulling an Islamic fund [ID:nLN065904], but the plan has now been shelved, the spokesman said.

The spokesman said W. P. Carey was looking at options for LaPuma's successor, but the company had not set a deadline for the appointment.

Last month the company completed its first Spanish sale-and-leaseback transaction, buying 13 retail facilities from Spanish supermarket operator Eroski Sociedad Cooperativa [EROSK.UL]." Sphere: Related Content

Net Lease Specialist Stan Johnson Company Planning Aggressive US Expansion

Stan Johnson Company Web Site - January 4, 2009

Stan Johnson Company, the nation’s premier net lease brokerage firm and Net Lease Authority™, is aggressively looking to expand into key markets across the United States. Following the successes of the company’s first regional office which launched in Houston, Texas in August 2008, Stan Johnson Company will continue to expand with plans of opening four to five more offices in targeted cities across the U.S., including Atlanta, San Francisco, Southern California, New York City & Chicago.

"In preparation for the next real estate cycle, we plan to continue leveraging our expertise while capitalizing on our past successes in order to drive new opportunities and growth for the future," said Stan Johnson, CEO of Stan Johnson Company. "We have talked to several top brokers who have expressed interest in joining our firm."

Leading the regional expansion effort is Daniel Herrold, who was promoted to Executive Managing Director of Business Development in November. Herrold will have responsibility for all business development and recruiting efforts leading the company’s growth plans. Since joining the company in 2003, Herrold has closed nearly 200 single tenant deals valued in excess of $1.6 billion, and as Regional Director, he spear-headed the launch of Stan Johnson Company’s Houston office.

The Houston office has proven to be a success, starting with two senior associates who have closed more than 20 deals totaling approximately $75 million in volume. Leveraging this success, the office has recently expanded the staff to include two additional senior associates and an analyst, with plans to continue to grow in 2010. In an effort to replicate the success of the Houston office, Herrold is now actively looking to hire multiple lead brokers in the targeted cities who have a strong track record of achievement in the single tenant net lease industry.

“We see today as an opportunity to hire more talented brokers, penetrate new markets, and grow our brokerage platform at a faster pace. We believe that our company’s value proposition of focusing exclusively in the net lease industry is stronger than it has ever been, particularly in this sluggish investment sales market,” said Herrold. Sphere: Related Content

Quiron Group Closes EUR 55 Million Sale Leaseback of Private Clinic in Spain

PropertyEU - November 30, 2009

Spanish lender Banco Sabadell has acquired the new Quiron Vizcaya private clinic in Bilbao, Northern Spain in a EUR 55 mln sale-and-leaseback agreement with Spanish healthcare operator Quiron Group. The financial institution said the property is earmarked for its Sabadell BS Inmobiliario FII real estate fund.

The Quiron Vizcaya clinic opened its doors last week and is the largest private hospital in the Vizcaya region of Spain. It offers around 19,000 m2 of total space distributed across 155 rooms. The Quiron Group has agreed to continue to occupy and operate the property for the next 20 years.

The Spanish healthcare operator has opened a number of new centres in recent months including new clinics in Madrid and Barcelona while a new centre planned for Valencia is due to open in 2011.

Sabadell's real estate fund has so far invested in a total of 44 properties totalling some 500,000 m2 of commercial space. Clinics and nursing homes represent nearly 20% of the assets in the fund, which delivered annual returns of 3.84% over the past 36 months. Sphere: Related Content

Telereal Trillium To Sell £475 Million Net Leased Property Portfolio

Property Week - January 5, 2010

Telereal Trillium has put a £475m portfolio of assets mainly let to Royal Bank of Scotland up for sale.

It has appointed CB Richard Ellis to sell the Oak portfolio, which comprises 55 assets including the Coutts headquarters on the Strand, Drummonds’ headquarters on Trafalgar Square and Child and Co headquarters on Fleet Street.

More than 45% of the income on the portfolio comes from the London assets. The properties are mainly let to Royal Bank of Scotland until 2037 with annual RPI-rental uplifts.

Graeme Hunter, group property director, Telereal Trillium said “Following the purchase of this portfolio two years ago we have had regular enquiries from many parties interested in acquiring single assets. Since the summer however, the level of interest in a larger portfolio transaction has increased dramatically and as such we see the time as being right to test the market’s appetite for this excellent product.”

Telereal Trillium bought the properties at the end of 2007 in a sale-and-leaseback deal from RBS. Sphere: Related Content

Savola Enters $80 Million Sale Leaseback of Central Warehouse in Riyadh

Maktoob Business - January 3, 2009

Savola Group Co, Saudi Arabia's largest food company, said Sunday it entered in a sale and leaseback deal with Al Rajhi Capital worth 299 million Saudi riyals ($79.73 million) covering its supermarket chain's main warehouse in Riyadh.

The deal will generate SAR55 million in capital gains for Savola and will be used to cover the lease payments and will not boost its net profit in 2009, the company said in a statement on the Saudi bourse Web site.

The contract, inked Saturday between Savola's subsidiary Al Matoun International for Real Estate Investment Holding Co and Al Rajhi Bank's corporate finance unit, for the sale of supermarket chain Al Azizia Panda United Co's central warehouse in Riyadh, is part of a wider strategy to sell real estate assets to free up cash to invest in core businesses, the company said.

Savola has the right to lease the property for 18 years with a 7 year extension option, the company added.

In July, Savola paid SAR440 million to buy Fawaz Alhokair Group's Geant hypermarket chain. The company said the acquisition will boost its share in Saudi's retail market-estimated at SAR96 billion-from 7% to 8% as part of its strategic target to have a 10% market share within the coming five years.
The expansion was expected to increase sales by 13%. Sphere: Related Content

CIMB Agrees to $88 Million Sale Leaseback of 65 Bank Branches Across Malaysia

Business Times - December 31, 2009

CIMB Group is selling up to 65 properties that house its banking operations to the Employees Provident Fund (EPF) for RM302.4 million in a related-party sale and leaseback deal.

The group, in an announcement yesterday, said the sale will raise cash for CIMB Bank's working capital, reduce its risk-weighted assets by the book value of the properties and reduce its property risks.

The group is expected to make a gain of RM171 million from the sale.

The properties are currently used to house CIMB Group's banking business operations such as branches and offices.
The sale and leaseback deal will be not be its first.

It sold and leased back its current head office, Bangunan CIMB, and Menara Bumiputra-Commerce.

In late 2007, CIMB group managing director and chief executive officer Datuk Seri Nazir Razak said it was mulling over a third sale and leaseback exercise on some buildings as part of its plan to manage capital more efficiently.

The EPF is a major shareholder in CIMB Group, while Nazir is a member of the pension fund's investment panel. He abstained from voting on the deal. Sphere: Related Content