The Wharf - December 15, 2005
State Street Bank has agreed to heads of terms with Canary Wharf Group (CWG) on a new 300,000 sq ft headquarters to be built at Churchill Place. Construction is to begin on the 12-storey building opposite Barclays HQ, in the new year. The Wharf has previously reported on speculation that the firm, which occupies eight floors in the tower, would be moving. Neither State Street nor CWG would comment on the possible move, but a source close to the deal told The Wharf: "They're taking the building." State Street moved into One Canada Square in August 1991 and has seen staff numbers growing from around 100 to nearly 1,000 in the past 14 years.
Sphere: Related Content
Friday, December 16, 2005
Lietuvos Telekomas' Group Agrees to Sale Leaseback of Lithuanian Property Portfolio
Lietuvos Telekomas Web Site - December 8, 2005
On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.
According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.
AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content
On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.
According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.
AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content
Deutsche Telekom Completes $33 Million Sale Leaseback of Three Office Buildings in Frankfurt
Globes Online - December 11,2005
A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.
Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content
A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.
Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content
Tuesday, December 13, 2005
Kesko Group Weighing Sale Leaseback of 100 Properties in Finland
Kesko Web Site - December 5, 2005
Kesko Group has started negotiations concerning the sale and leaseback of about one hundred properties located in Finland. The properties are currently used by Kesko's division parent companies and their total area is approximately 200,000 m2. The sale is aimed at enhancing the use of the Group's capital. The deal is intended for conclusion during 2006.
With nearly 3,000 stores totalling almost 2.9 million sq meters, Kesko is the leading retailer in Finland and among the largest companies on the Helsinki Stock Exchange. Established in 1940, it operates throughout the Baltic States and Scandinavian countries. The Group’s sales amounted to EUR 7.6bn in 2004. Sphere: Related Content
Kesko Group has started negotiations concerning the sale and leaseback of about one hundred properties located in Finland. The properties are currently used by Kesko's division parent companies and their total area is approximately 200,000 m2. The sale is aimed at enhancing the use of the Group's capital. The deal is intended for conclusion during 2006.
With nearly 3,000 stores totalling almost 2.9 million sq meters, Kesko is the leading retailer in Finland and among the largest companies on the Helsinki Stock Exchange. Established in 1940, it operates throughout the Baltic States and Scandinavian countries. The Group’s sales amounted to EUR 7.6bn in 2004. Sphere: Related Content
Hornbach Enters 175 Million Euro Sale Leaseback on Eight Stores in Europe
Irish Times - December 7, 2005
Anglo Irish Bank has made a major property acquisition in Germany with the purchase of eight DIY stores for in Germany for Euro 175 million. The deal ranks as one of the largest international transactions this year by Irish investors and is Anglo Irish Bank's first foray into the German market. The bank bought the portfolio of eight retail warehousing outlets from the DIY chain Hornbach in a privately negotiated sale and leaseback deal.
Anglo Irish Bank says it intends to recoup the money by raising three-quarters of the equity from its private client base. Anglo Irish Bank's partner in this venture, Taurus Investment Holdings, will fund the remaining quarter. The portfolio will return a net yield of just under 7 percent with rent adjustments linked to inflation. Leveraged returns are expected to be between 10 and 12 percent per annum. Yields in the German property market are significantly higher than the UK or Ireland.
Hornbach is Germany's third largest DIY chain and is part-owned by B & Q's parent company, Kingfisher. The retailer, which is listed on the Frankfurt stock exchange, has 88 stores in Germany and a further 29 across Europe. It has occupied the eight properties involved for the past 15 years but decided to sell and lease them back in order to fund an expansion drive on the Continent.
The retail warehousing outlets range in size from 14,864sq m to 18,581sq m (160,000sq ft to 200,000sq ft). Six of the outlets are located outside major German cities while two are in Sweden and Holland. Together, the properties generate an annual rent roll of €13.1 million or just under €108 per sq m (€10 per sq ft). Sphere: Related Content
Anglo Irish Bank has made a major property acquisition in Germany with the purchase of eight DIY stores for in Germany for Euro 175 million. The deal ranks as one of the largest international transactions this year by Irish investors and is Anglo Irish Bank's first foray into the German market. The bank bought the portfolio of eight retail warehousing outlets from the DIY chain Hornbach in a privately negotiated sale and leaseback deal.
Anglo Irish Bank says it intends to recoup the money by raising three-quarters of the equity from its private client base. Anglo Irish Bank's partner in this venture, Taurus Investment Holdings, will fund the remaining quarter. The portfolio will return a net yield of just under 7 percent with rent adjustments linked to inflation. Leveraged returns are expected to be between 10 and 12 percent per annum. Yields in the German property market are significantly higher than the UK or Ireland.
Hornbach is Germany's third largest DIY chain and is part-owned by B & Q's parent company, Kingfisher. The retailer, which is listed on the Frankfurt stock exchange, has 88 stores in Germany and a further 29 across Europe. It has occupied the eight properties involved for the past 15 years but decided to sell and lease them back in order to fund an expansion drive on the Continent.
The retail warehousing outlets range in size from 14,864sq m to 18,581sq m (160,000sq ft to 200,000sq ft). Six of the outlets are located outside major German cities while two are in Sweden and Holland. Together, the properties generate an annual rent roll of €13.1 million or just under €108 per sq m (€10 per sq ft). Sphere: Related Content
Advance Synergy Bhd to Sell & Leaseback Three Hotels for $28 Million
The Edge Daily - December 13, 2005
Amanah Raya Bhd is acquiring Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi from Advance Synergy Bhd (ASB) for a total of up to RM105 ($27.8 million) cash in a proposed sale and leaseback.
Announcing the deal on Dec 13, ASB said it had each accepted an offer from Amanah Raya to acquire Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi for up to RM30 million, RM23 million and RM52 million respectively. ASB will have the option to buy back the hotels from Amanah Raya for a total of up to RM105 million upon the expiry of the leaseback period.
Under the deal, Amanah Raya will lease back each of the hotels to the ASB subsidiaries separately for 10 years with an option of another five years. The leaseback is guaranteed by Alangka-Suka Hotels & Resorts Bhd, a subsidiary of Advance Synergy. The net rental of the leaseback for the 10-year period was structured as 7% per annum for the first three years, 7.5% for the next three years and 8% for the remaining period. For the extended five-year period, the net rental of the leaseback will be at a rate mutually agreed by both parties. Sphere: Related Content
Amanah Raya Bhd is acquiring Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi from Advance Synergy Bhd (ASB) for a total of up to RM105 ($27.8 million) cash in a proposed sale and leaseback.
Announcing the deal on Dec 13, ASB said it had each accepted an offer from Amanah Raya to acquire Holiday Villa Alor Setar, Holiday Villa Cherating and Holiday Villa Langkawi for up to RM30 million, RM23 million and RM52 million respectively. ASB will have the option to buy back the hotels from Amanah Raya for a total of up to RM105 million upon the expiry of the leaseback period.
Under the deal, Amanah Raya will lease back each of the hotels to the ASB subsidiaries separately for 10 years with an option of another five years. The leaseback is guaranteed by Alangka-Suka Hotels & Resorts Bhd, a subsidiary of Advance Synergy. The net rental of the leaseback for the 10-year period was structured as 7% per annum for the first three years, 7.5% for the next three years and 8% for the remaining period. For the extended five-year period, the net rental of the leaseback will be at a rate mutually agreed by both parties. Sphere: Related Content
Friday, December 09, 2005
KarstadtQuelle Agrees to 163 Million Euro Sale Leaseback of Property Portfolio
Bloomberg - December 8, 2005
KarstadtQuelle AG, Germany's biggest department-store chain, may sell all of its real estate next year to eliminate debt of about 2.8 billion euros ($3.3 billion) that brought the company to the brink of collapse. The shares had their biggest gain in more than a year.
KarstadtQuelle hired Goldman Sachs Group Inc. to explore the sale and leaseback or spinoff of property such as department stores in city centers from Cologne to Berlin, Chief Executive Thomas Middelhoff told reporters today in Dusseldorf, Germany.
KarstadtQuelle, based in Essen, had property with a book value of 3.8 billion euros as of Dec. 31. The company has sold or transferred off the balance sheet department stores and 40 logistics properties to cut debt by 1 billion euros by the end of this year.
(Bloomberg reports that Slough Estates PLC has just agreed to buy a property portfolio and major development land bank from KarstadtQuelle AG in a sale and leaseback deal for 163.2 mln euro. The portfolio totals 260,000 square metres of let warehouse accommodation, 63,000 square metres of let office accommodation and 53 hectares of development land, producing a total rent income of 13.1 mln eur a year. KarstadtQuelle AG reportedly entered into long-term leases on the assets.) Sphere: Related Content
KarstadtQuelle AG, Germany's biggest department-store chain, may sell all of its real estate next year to eliminate debt of about 2.8 billion euros ($3.3 billion) that brought the company to the brink of collapse. The shares had their biggest gain in more than a year.
KarstadtQuelle hired Goldman Sachs Group Inc. to explore the sale and leaseback or spinoff of property such as department stores in city centers from Cologne to Berlin, Chief Executive Thomas Middelhoff told reporters today in Dusseldorf, Germany.
KarstadtQuelle, based in Essen, had property with a book value of 3.8 billion euros as of Dec. 31. The company has sold or transferred off the balance sheet department stores and 40 logistics properties to cut debt by 1 billion euros by the end of this year.
(Bloomberg reports that Slough Estates PLC has just agreed to buy a property portfolio and major development land bank from KarstadtQuelle AG in a sale and leaseback deal for 163.2 mln euro. The portfolio totals 260,000 square metres of let warehouse accommodation, 63,000 square metres of let office accommodation and 53 hectares of development land, producing a total rent income of 13.1 mln eur a year. KarstadtQuelle AG reportedly entered into long-term leases on the assets.) Sphere: Related Content
Metro Sells 53 Praktiker Stores in 480 Million Euro Sale Leaseback
Freeman European News / AFX - December 07, 2005
Metro AG said it has sold 53 properties of its Praktiker home improvement chain to a real estate fund managed by IXIS AEW Europe. It divested 35 stand-alone locations in Germany, including the Praktiker headquarters in Kirkel, eight stores in Greece and 10 in Hungary. It said the sale as well as last month's Praktiker initial public offering resulted in total cash proceeds of around 840 mln eur. Industry sources said the properties were sold for around 480 mln eur. The deal is subject to antitrust approval Sphere: Related Content
Metro AG said it has sold 53 properties of its Praktiker home improvement chain to a real estate fund managed by IXIS AEW Europe. It divested 35 stand-alone locations in Germany, including the Praktiker headquarters in Kirkel, eight stores in Greece and 10 in Hungary. It said the sale as well as last month's Praktiker initial public offering resulted in total cash proceeds of around 840 mln eur. Industry sources said the properties were sold for around 480 mln eur. The deal is subject to antitrust approval Sphere: Related Content
Marseille-Kliniken Enters Sale Leaseback of Care Facilities for 117 Million Euro
Freeman European News / AFX - December 06, 2005
Marseille-Kliniken AG said it has sold eight care sector properties and two rehabilitation clinics to the UK investor CIT Group Europe. Under the deal, Marseille-Kliniken will lease back the clinics long term. Marseille-Kliniken said the sale enables it to pay off long-term financial debts, improves the capital ratio and creates further financial scope for the implementation of its growth strategy. The clinics comprise a total of 1,550 beds.
Marseille said the transaction is part of its strategy to concentrate primarily on the health facilities business in future, and expanding its overall bed capacity to 12,000 beds by 2008. Once the strategy has been successfully implemented, the company's property portfolio will be distributed 30 pct between facilities owned by the company and 70 pct rented properties. Sphere: Related Content
Marseille-Kliniken AG said it has sold eight care sector properties and two rehabilitation clinics to the UK investor CIT Group Europe. Under the deal, Marseille-Kliniken will lease back the clinics long term. Marseille-Kliniken said the sale enables it to pay off long-term financial debts, improves the capital ratio and creates further financial scope for the implementation of its growth strategy. The clinics comprise a total of 1,550 beds.
Marseille said the transaction is part of its strategy to concentrate primarily on the health facilities business in future, and expanding its overall bed capacity to 12,000 beds by 2008. Once the strategy has been successfully implemented, the company's property portfolio will be distributed 30 pct between facilities owned by the company and 70 pct rented properties. Sphere: Related Content
Sunday, December 04, 2005
Hilton Hotels Completes GBP 400 Million Sale Manageback of 16 UK Hotels
The Jerusalem Post - November 27, 2005
Igal Ahouvi's Managed Hotels Unit Trust and Delek Real Estate have purchased 15 Hilton hotels in the United Kingdom and agreed to buy a 16th, for a total of roughly NIS 3.5 billion, a source close to the deal confirmed Thursday.
The source stated further that Ahouvi and Delek Real Estate CEO Ilik Rozanski were conducting negotiations toward bringing two or three more partners into the deal, and intend to divide it up evenly, with each party holding 20% or 25% of the value. They expect to recruit the partners within two weeks.
Hilton, which had announced Tuesday that it had completed the sale of the first 15 hotels to Managed Hotels, will keep its banner on the buildings, and continue to manage them as full Hilton hotels for at least the next 30 years, with two options for additional 10-year periods thereafter. Hilton also expects to earn around GBP5.4 million yearly from the management contracts on the original 15.
Funding for the initial purchase was provided by the Royal Bank of Scotland. The 16 hotels contain a total of 3,100 rooms. Hilton International intends to sell further hotels valued in excess of GBP400m., including the Hilton London Metropole and Hilton Birmingham Metropole. Sphere: Related Content
Igal Ahouvi's Managed Hotels Unit Trust and Delek Real Estate have purchased 15 Hilton hotels in the United Kingdom and agreed to buy a 16th, for a total of roughly NIS 3.5 billion, a source close to the deal confirmed Thursday.
The source stated further that Ahouvi and Delek Real Estate CEO Ilik Rozanski were conducting negotiations toward bringing two or three more partners into the deal, and intend to divide it up evenly, with each party holding 20% or 25% of the value. They expect to recruit the partners within two weeks.
Hilton, which had announced Tuesday that it had completed the sale of the first 15 hotels to Managed Hotels, will keep its banner on the buildings, and continue to manage them as full Hilton hotels for at least the next 30 years, with two options for additional 10-year periods thereafter. Hilton also expects to earn around GBP5.4 million yearly from the management contracts on the original 15.
Funding for the initial purchase was provided by the Royal Bank of Scotland. The 16 hotels contain a total of 3,100 rooms. Hilton International intends to sell further hotels valued in excess of GBP400m., including the Hilton London Metropole and Hilton Birmingham Metropole. Sphere: Related Content
Sale Near on £425 Million Portfolio of 180 Shell Service Stations in UK
RTÉ News - November 29, 2005
The Irish Times says that Dublin-based corporate finance house Ion Equity has entered the race to acquire the freehold interest in Shell's 180 filling stations in Britain.
The company that owns the portfolio, Octane, could cost as much as £425m. This includes debt of some £325m. The properties were put on the market last June by the owners of Octane, who acquired them from Shell in 2000. Octane is controlled by investors Robert and Vincent Tchenguiz and Ian and Richard Livingstone. The properties have an annual rent roll of about £26m under the terms of a leaseback arrangement with Shell that continues until 2017.
Selection of a preferred bidder is imminent and Ion Equity is said to be among the leading contenders for the portfolio. The others include the British property groups Miller Developments, Moorfield and REIT Asset Management, and the Isle of Man group Golfrate. Sphere: Related Content
The Irish Times says that Dublin-based corporate finance house Ion Equity has entered the race to acquire the freehold interest in Shell's 180 filling stations in Britain.
The company that owns the portfolio, Octane, could cost as much as £425m. This includes debt of some £325m. The properties were put on the market last June by the owners of Octane, who acquired them from Shell in 2000. Octane is controlled by investors Robert and Vincent Tchenguiz and Ian and Richard Livingstone. The properties have an annual rent roll of about £26m under the terms of a leaseback arrangement with Shell that continues until 2017.
Selection of a preferred bidder is imminent and Ion Equity is said to be among the leading contenders for the portfolio. The others include the British property groups Miller Developments, Moorfield and REIT Asset Management, and the Isle of Man group Golfrate. Sphere: Related Content
$170 Million Sale Leaseback Agreement Reached on 84 Circle K Stores
SEC Edgar Web Site - December 2, 2005
Commercial Net Lease Realty, Inc. has entered into an agreement with SSP Partners to acquire approximately 74 convenience store properties currently owned by Susser for approximately $170 million. The properties are primarily located in Texas and operated under the Circle K brand. Pursuant to the terms of the agreements, Susser will lease back the properties for a twenty-year initial term under triple-net leases.
Susser operates over 300 retail convenience stores in Texas and Oklahoma and distributes motor fuel to over 340 branded dealer units and 25 unattended units through its wholesale fuel division. Founded in 1938 by the Susser family, Susser has experienced dynamic growth over the last decade and is one of the largest convenience store operators in the United States.
The parties expect to complete the acquisitions by January 31, 2006, subject to customary closing conditions. The Company anticipates that some of these properties will be held as inventory properties and subsequently sold. Sphere: Related Content
Commercial Net Lease Realty, Inc. has entered into an agreement with SSP Partners to acquire approximately 74 convenience store properties currently owned by Susser for approximately $170 million. The properties are primarily located in Texas and operated under the Circle K brand. Pursuant to the terms of the agreements, Susser will lease back the properties for a twenty-year initial term under triple-net leases.
Susser operates over 300 retail convenience stores in Texas and Oklahoma and distributes motor fuel to over 340 branded dealer units and 25 unattended units through its wholesale fuel division. Founded in 1938 by the Susser family, Susser has experienced dynamic growth over the last decade and is one of the largest convenience store operators in the United States.
The parties expect to complete the acquisitions by January 31, 2006, subject to customary closing conditions. The Company anticipates that some of these properties will be held as inventory properties and subsequently sold. Sphere: Related Content
WE Vastgoed Completes EUR 28 Million Sale Leaseback of 19 Stores in the Netherlands
ING Real Estate Web Site - December 2, 2005
ING Real Estate acquired nineteen retail properties in prime locations in the Netherlands from WE Vastgoed for an amount of EUR 28 million. The total portfolio has a gross lettable area of 7.000 m2. Eight properties are leased long term to WE Netherlands as part of a sale and lease back transaction. Nine properties will be added to the ING Dutch Retail Fund. Ten properties have been acquired by the ING Real Estate Woning-Winkel Fonds III CV, which is expected to close on December 28, 2005. Sphere: Related Content
ING Real Estate acquired nineteen retail properties in prime locations in the Netherlands from WE Vastgoed for an amount of EUR 28 million. The total portfolio has a gross lettable area of 7.000 m2. Eight properties are leased long term to WE Netherlands as part of a sale and lease back transaction. Nine properties will be added to the ING Dutch Retail Fund. Ten properties have been acquired by the ING Real Estate Woning-Winkel Fonds III CV, which is expected to close on December 28, 2005. Sphere: Related Content
Speedy International Pursuing Sale Leaseback of Auto Service Center Portfolio
CCNMatthews - December 1, 2005
SMK Speedy International Inc. ("Speedy") announced the release of five million dollars of collateral held by its bank to the noteholders of its Senior Secured Subordinated Notes. These funds will be repaid to noteholders in early December.
Speedy has engaged a company to market the sale and leaseback of substantially all of its properties to commence earlier payment of the notes than required and, if successful, the company anticipates a transaction in the first quarter of 2006.
Speedy is a leading automobile service specialist with 90 company operated and 30 franchise stores under contracts with SMK Speedy International Inc. Sphere: Related Content
SMK Speedy International Inc. ("Speedy") announced the release of five million dollars of collateral held by its bank to the noteholders of its Senior Secured Subordinated Notes. These funds will be repaid to noteholders in early December.
Speedy has engaged a company to market the sale and leaseback of substantially all of its properties to commence earlier payment of the notes than required and, if successful, the company anticipates a transaction in the first quarter of 2006.
Speedy is a leading automobile service specialist with 90 company operated and 30 franchise stores under contracts with SMK Speedy International Inc. Sphere: Related Content
Microsoft Offices in Reading Sell for £104 Million
Freeman News / AFX - December 2, 2005
Mapeley Ltd, the property investment and outsourcing company, has bought three buildings on the Microsoft Campus in Reading for £104m. The sites were bought from a joint venture between British Land plc and Teachers Insurance and Annuity Association of America.
Jamie Hopkins, Chief Executive of , said: "This is an extremely exciting acquisition for us and one which combines great real estate with an ongoing relationship with a major occupier. This purchase brings the total invested by Mapeley this year to £478m." Sphere: Related Content
Mapeley Ltd, the property investment and outsourcing company, has bought three buildings on the Microsoft Campus in Reading for £104m. The sites were bought from a joint venture between British Land plc and Teachers Insurance and Annuity Association of America.
Jamie Hopkins, Chief Executive of , said: "This is an extremely exciting acquisition for us and one which combines great real estate with an ongoing relationship with a major occupier. This purchase brings the total invested by Mapeley this year to £478m." Sphere: Related Content
Friday, December 02, 2005
Japanese Govt May Embark Upon Massive Sale Leaseback Effort
The Times - November 29, 2005
A powerful committee of ministers, senior academics and business leaders is expected to tell the Japanese Government today to embark on a colossal 120 trillion yen (GBP 600 billion) sale of assets over the next ten years. As well as triggering an unprecedented bonanza sale of state financial assets, today's report by the Council for Economic and Fiscal Policy (CEFP) is tipped to include a recommendation that the Government extend the classes of assets up for grabs and also begin selling property.
Some of those assets would be strips of unused land dotted around the country, but more aggressive members of the committee are understood to be pushing for the sale of government buildings in the heart of the capital. One source close to the committee told The Times that the CEFP was even considering the idea of selling the major ministry buildings in the Kasumigaseki district. The prime sites would be sold to developers and leased back to the bureaucracy.
If the full range of the CEFP’s proposals were adopted and rolled into a new law on state-held assets, next year could see the start of a process that investors have been dreaming of for years, with desirable tracts of land in Central Tokyo suddenly becoming available to the private sector. Leading Japanese property developers, such as Mori Building and Mitsubishi Estate, almost certainly would be enthusiastic buyers, but, analysts say, the sale would also be likely to attract foreign capital of the sort wielded by the likes of Morgan Stanley and the Carlyle Group. Sphere: Related Content
A powerful committee of ministers, senior academics and business leaders is expected to tell the Japanese Government today to embark on a colossal 120 trillion yen (GBP 600 billion) sale of assets over the next ten years. As well as triggering an unprecedented bonanza sale of state financial assets, today's report by the Council for Economic and Fiscal Policy (CEFP) is tipped to include a recommendation that the Government extend the classes of assets up for grabs and also begin selling property.
Some of those assets would be strips of unused land dotted around the country, but more aggressive members of the committee are understood to be pushing for the sale of government buildings in the heart of the capital. One source close to the committee told The Times that the CEFP was even considering the idea of selling the major ministry buildings in the Kasumigaseki district. The prime sites would be sold to developers and leased back to the bureaucracy.
If the full range of the CEFP’s proposals were adopted and rolled into a new law on state-held assets, next year could see the start of a process that investors have been dreaming of for years, with desirable tracts of land in Central Tokyo suddenly becoming available to the private sector. Leading Japanese property developers, such as Mori Building and Mitsubishi Estate, almost certainly would be enthusiastic buyers, but, analysts say, the sale would also be likely to attract foreign capital of the sort wielded by the likes of Morgan Stanley and the Carlyle Group. Sphere: Related Content
Canadian Tire Enters $196 Million Sale Leaseback on Two Distribution Centers
Excite / Dow Jones - November 29, 2005
Canadian Tire Corp. (CTR.T) has reached agreement for the sale and leaseback of two distribution centers, one in Brampton, Ont. and the other in Calgary, to H&R Real Estate Investment Trust (CA:HR.UN) (HR.UN.T), for total proceeds of C$229 million (US$196 million).
In a news release, Canadian Tire said it will use the proceeds to fund the strategic initiatives outlined in its 2005-2009 Strategic Plan. In a separate release, H&R said Canadian Tire will lease back the properties for 21 years, with options to renew. The facilities comprise a total of 2.1 million square feet on 249 acres of land. H&R noted that the acquisition will be "accretive" to its unitholders. The acquisition increases the size of its portfolio by almost 6%.
Canadian Tire said Tuesday the agreement of purchase and sale is conditional on the completion of due diligence by H&R and approval of the purchase by competition authorities. The transaction is expected to close in January.
Canadian Tire added that it expects to realize a pretax gain of about C$50 million, which will be amortized over the initial 21-year term of the negotiated lease agreements. Sphere: Related Content
Canadian Tire Corp. (CTR.T) has reached agreement for the sale and leaseback of two distribution centers, one in Brampton, Ont. and the other in Calgary, to H&R Real Estate Investment Trust (CA:HR.UN) (HR.UN.T), for total proceeds of C$229 million (US$196 million).
In a news release, Canadian Tire said it will use the proceeds to fund the strategic initiatives outlined in its 2005-2009 Strategic Plan. In a separate release, H&R said Canadian Tire will lease back the properties for 21 years, with options to renew. The facilities comprise a total of 2.1 million square feet on 249 acres of land. H&R noted that the acquisition will be "accretive" to its unitholders. The acquisition increases the size of its portfolio by almost 6%.
Canadian Tire said Tuesday the agreement of purchase and sale is conditional on the completion of due diligence by H&R and approval of the purchase by competition authorities. The transaction is expected to close in January.
Canadian Tire added that it expects to realize a pretax gain of about C$50 million, which will be amortized over the initial 21-year term of the negotiated lease agreements. Sphere: Related Content
Thursday, December 01, 2005
Santa Clara R&D Building Net Leased to General Dynamics Sells for $72 Million
CoStar Group - October 14, 2005
Invesco Realty Advisors acquired a research and development building at 2305 Mission College Blvd. in Santa Clara, CA for $72 million, or about $200.50 per square foot. The seller was a joint venture of Pacific Coast Capital Partners and South Bay Construction & Development. The two-story building measures 359,000 square feet and is on a 15.78-acre campus. Nortel Networks Ltd. previously occupied the property until General Dynamics Corp., one of the largest defense contractors in the nation, recently signed an 11-year lease. Bill Palmer, John Sedar and Russ Arnold of The Palmer Group Inc. in Sacramento represented the seller. Sphere: Related Content
Invesco Realty Advisors acquired a research and development building at 2305 Mission College Blvd. in Santa Clara, CA for $72 million, or about $200.50 per square foot. The seller was a joint venture of Pacific Coast Capital Partners and South Bay Construction & Development. The two-story building measures 359,000 square feet and is on a 15.78-acre campus. Nortel Networks Ltd. previously occupied the property until General Dynamics Corp., one of the largest defense contractors in the nation, recently signed an 11-year lease. Bill Palmer, John Sedar and Russ Arnold of The Palmer Group Inc. in Sacramento represented the seller. Sphere: Related Content
Bail Investissement & GE to Acquire $1.9 Billion France Telecom Portfolio
PRNewswire-FirstCall - November 28, 2005
Bail Investissement, a Fonciere des Regions subsidiary, has approved the acquisition from the CGW consortium (Ixis, Whitehall and GE Real Estate) of Technical SAS, owner of a large portfolio of mixed use offices and light industrial properties leased to France Telecom.
A memorandum of understanding has been signed with CGW for the acquisition of Technical's entire capital. The properties in the portfolio represent a total of 1,034,000 square metres and are valued at EUR1.6 billion ($1.9 billion). They are leased to France Telecom under a lease expiring in 2011 at an annual rent of EUR124 million as of 31 December 2005, nearly half of which coming from Paris. The transaction is part of an investment policy that gives priority to teaming up with other investors to acquire property portfolios leased to first class covenants.
Bail Investissement and GE will sign a memorandum of understanding to enable GE to retain an interest in the portfolio. To this end, GE Real Estate France will purchase mandatory convertible bonds issued by Technical, which will eventually give it a direct stake of 32.5%. Technical's debt will be refinanced through a new EUR950 million bank loan. Sphere: Related Content
Bail Investissement, a Fonciere des Regions subsidiary, has approved the acquisition from the CGW consortium (Ixis, Whitehall and GE Real Estate) of Technical SAS, owner of a large portfolio of mixed use offices and light industrial properties leased to France Telecom.
A memorandum of understanding has been signed with CGW for the acquisition of Technical's entire capital. The properties in the portfolio represent a total of 1,034,000 square metres and are valued at EUR1.6 billion ($1.9 billion). They are leased to France Telecom under a lease expiring in 2011 at an annual rent of EUR124 million as of 31 December 2005, nearly half of which coming from Paris. The transaction is part of an investment policy that gives priority to teaming up with other investors to acquire property portfolios leased to first class covenants.
Bail Investissement and GE will sign a memorandum of understanding to enable GE to retain an interest in the portfolio. To this end, GE Real Estate France will purchase mandatory convertible bonds issued by Technical, which will eventually give it a direct stake of 32.5%. Technical's debt will be refinanced through a new EUR950 million bank loan. Sphere: Related Content
Giant TMC Completes $101 Million Sale Leaseback of Store Portfolio
Business Times (Malaysia) - December 2, 2005
The Employees Provident Fund (EPF) has bought all properties owned by hypermarket operator Giant TMC Bhd for RM382 million ($101 million). Giant, which has yearly retail sales of RM3 billion ($795 million), is a wholly-owned subsidiary of Hong Kong's Dairy Farm International Holdings Ltd. Under the agreement, EPF will buy all of Giant’s shares in its property subsidiary, Hartanah Progresif Sdn Bhd.
Hartanah Progresif holds all of Giant-owned properties comprising four hypermarkets, four supermarkets, 42 small shoplots and hostels and three vacant pieces of land. The properties will then be leased back to Giant for the next 10-15 years to ensure recurring income for the EPF. “The property investment gives a yield of 7.5 percent, which is more than the real estate investment trusts (REITs) return,” said Dairy Farm Giant Retail Sdn Bhd CEO John Coyle. REITs currently give a return of between 6 and 7 percent. Sphere: Related Content
The Employees Provident Fund (EPF) has bought all properties owned by hypermarket operator Giant TMC Bhd for RM382 million ($101 million). Giant, which has yearly retail sales of RM3 billion ($795 million), is a wholly-owned subsidiary of Hong Kong's Dairy Farm International Holdings Ltd. Under the agreement, EPF will buy all of Giant’s shares in its property subsidiary, Hartanah Progresif Sdn Bhd.
Hartanah Progresif holds all of Giant-owned properties comprising four hypermarkets, four supermarkets, 42 small shoplots and hostels and three vacant pieces of land. The properties will then be leased back to Giant for the next 10-15 years to ensure recurring income for the EPF. “The property investment gives a yield of 7.5 percent, which is more than the real estate investment trusts (REITs) return,” said Dairy Farm Giant Retail Sdn Bhd CEO John Coyle. REITs currently give a return of between 6 and 7 percent. Sphere: Related Content
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