Hemscott - March 15, 2007
William Morrison Supermarkets PLC is considering options for capitalising on its vast property portfolio but is not yet considering a full-scale sale-and-leaseback, chairman Sir Ken Morrison told reporters on a conference call.
William Morrison Supermarkets PLC is considering options for capitalising on its vast property portfolio but is not yet considering a full-scale sale-and-leaseback, chairman Sir Ken Morrison told reporters on a conference call.
As a 'first step' towards extracting value from the estate, which analysts reckon is worth between 7-7.8 bln stg, Morrison has confirmed it is in talks that may lead to it entering into a property partnership for some of its investment properties. Morrison explained that the 25 properties, which could be involved in the partnership, currently being examined are adjoining premises to Morrison's stores that the retailer generates rental income from.
Sir Ken ruled out the prospect of a major property disposal programme in the immediate future.
Sphere: Related Content
Saturday, March 17, 2007
Friday, March 16, 2007
AT&T Enters $29 Million Sale leaseback of Office Building Near Milwaukee
GlobeSt.com - March 14, 2007
Inland has confirmed that a subsidiary it has purchased the AT&T Pewaukee office building for $29 million, in the company’s third sale-leaseback transaction with the telecom provider. Joe Cosenza, president of Inland Real Estate Acquisitions Inc., negotiated the Pewaukee transaction, as well as the $205 million purchase of One AT&T Center in St. Louis at the end of December.
At the Pewaukee building, AT&T Services Inc. will continue to be the sole occupant of the 117,000-sf facility, which is on more than 11 acres. The building houses a call center, a training facility, a sales and marketing center and a real estate department. Cosenza tells GlobeSt.com that the company signed a 25-year lease, but has the option to leave the building after 10 years. The company is paying $12 per sf for rent, he says.
Inland also owns the 1.7 million-sf AT&T Center property in Hoffman Estates, IL, purchased in November 2005 for $338 million. Cosenza also brokered that deal.
AT&T has been closing many sale-leaseback deals as of late, including the sale-leaseback of its headquarters property in Bedminster, NJ to MetLife Inc. for $270 million in December 2006. The telecom company also completed the sale and partial leaseback of Sterling Commerce Plaza, a 308,554-sf office building in Irving, TX with Wells Real Estate Funds.
An AT&T spokesperson describes the sale-leasebacks as part of the company’s ongoing real estate strategy. Sphere: Related Content
Inland has confirmed that a subsidiary it has purchased the AT&T Pewaukee office building for $29 million, in the company’s third sale-leaseback transaction with the telecom provider. Joe Cosenza, president of Inland Real Estate Acquisitions Inc., negotiated the Pewaukee transaction, as well as the $205 million purchase of One AT&T Center in St. Louis at the end of December.
At the Pewaukee building, AT&T Services Inc. will continue to be the sole occupant of the 117,000-sf facility, which is on more than 11 acres. The building houses a call center, a training facility, a sales and marketing center and a real estate department. Cosenza tells GlobeSt.com that the company signed a 25-year lease, but has the option to leave the building after 10 years. The company is paying $12 per sf for rent, he says.
Inland also owns the 1.7 million-sf AT&T Center property in Hoffman Estates, IL, purchased in November 2005 for $338 million. Cosenza also brokered that deal.
AT&T has been closing many sale-leaseback deals as of late, including the sale-leaseback of its headquarters property in Bedminster, NJ to MetLife Inc. for $270 million in December 2006. The telecom company also completed the sale and partial leaseback of Sterling Commerce Plaza, a 308,554-sf office building in Irving, TX with Wells Real Estate Funds.
An AT&T spokesperson describes the sale-leasebacks as part of the company’s ongoing real estate strategy. Sphere: Related Content
Thursday, March 15, 2007
Academy Sports Completes $102 Million Sale Leaseback of HQ in TX
CoStar Group - March 13, 2007
In a sale/leaseback, Academy Sports and Outdoors sold its 1.5 million-square-foot headquarters and distribution center at 1800 N Mason Rd in Katy, Texas to an affiliate of The Cole Cos. for $102 million or approximately $67 per square foot.
Academy leased back the 93-acre property under a 20-year triple-net lease reportedly worth $102 million. Cole funded the acquisition, which was made on the part of its Cole Credit Property Trust II investment fund, using proceeds from its ongoing public offering and $68.3 million loan from Bear Stearns Commercial Mortgage, Inc.
Under its lease, Academy will pay an initial annual base rent of $7,038,000 which increases each year, including during renewal terms, by 1.5% of the then current annual base rent. The initial term of the lease expires January 31, 2027. Academy has eight options to renew the lease, each for an additional five-year term beginning on February 1, 2027.
The Stan Johnson Company of Tulsa, OK represented Academy Sports in the sale/leaseback transaction. Academy is a sporting goods retailer, operating over 80 stores across the southeastern United States. Sphere: Related Content
In a sale/leaseback, Academy Sports and Outdoors sold its 1.5 million-square-foot headquarters and distribution center at 1800 N Mason Rd in Katy, Texas to an affiliate of The Cole Cos. for $102 million or approximately $67 per square foot.
Academy leased back the 93-acre property under a 20-year triple-net lease reportedly worth $102 million. Cole funded the acquisition, which was made on the part of its Cole Credit Property Trust II investment fund, using proceeds from its ongoing public offering and $68.3 million loan from Bear Stearns Commercial Mortgage, Inc.
Under its lease, Academy will pay an initial annual base rent of $7,038,000 which increases each year, including during renewal terms, by 1.5% of the then current annual base rent. The initial term of the lease expires January 31, 2027. Academy has eight options to renew the lease, each for an additional five-year term beginning on February 1, 2027.
The Stan Johnson Company of Tulsa, OK represented Academy Sports in the sale/leaseback transaction. Academy is a sporting goods retailer, operating over 80 stores across the southeastern United States. Sphere: Related Content
JPMorgan Enters Sale and Partial Leaseback of Detroit Tower
CoStar Group - March 14, 2007
Saying it "makes more sense" to be a tenant rather than a building owner, JPMorgan Chase has sent another of its big-city namesake towers into the hands of investors.
The financial services firm announced a deal Tuesday to sell and lease back the Chase Tower in downtown Detroit, continuing a string of recent sale-leasebacks throughout the Midwest.
Locally based Sterling Group is buying the 14-story, nearly 600,000-square-foot building for an undisclosed sum. JPMorgan signed a 10-year lease with renewal options for eight floors totaling almost 215,000 square feet.
"It makes more sense to be a long-term tenant rather than owning the building," said Dick Wade, president of Chase in Michigan.
Sterling Group will lease the remainder of the building. The firm owns and manages several other downtown Detroit buildings, including the 43-story, castle-like Guardian Building, one of the city's most recognizable high-rises.
Chase Tower was constructed in 1959 as headquarters for the National Bank of Detroit, Chase's predecessor. The buidling occupies a prominent location at 611 Woodward Ave. in the city's business district.
Last October, JPMorgan closed a deal that sent 33 properties to a fund managed by Toronto-based Brookfield Asset Management for about $460 million. The 5.3 million-square-foot portfolio spanned 10 cities, mostly in the Midwest, and featured several trophy-class building, including 300 S. Riverside Plaza in Chicago and namesake high-rises in downtown Phoenix and Milwaukee. JPMorgan leased back significant portions of space as part of that deal.
Last month, Brookfield flipped two former JPMorgan assets -- the 750,000-square-foot Chase Tower in Phoenix and the 412,500-square-foot North American Technology Center in Houston -- to Crystal River Capital, a specialty finance company externally managed and advised by a wholly owned subsidiary of Brookfield Asset Management, for about $234 million.
JPMorgan anchors both those buildings under 15-year, triple net leases originally signed with Brookfield. Sphere: Related Content
Saying it "makes more sense" to be a tenant rather than a building owner, JPMorgan Chase has sent another of its big-city namesake towers into the hands of investors.
The financial services firm announced a deal Tuesday to sell and lease back the Chase Tower in downtown Detroit, continuing a string of recent sale-leasebacks throughout the Midwest.
Locally based Sterling Group is buying the 14-story, nearly 600,000-square-foot building for an undisclosed sum. JPMorgan signed a 10-year lease with renewal options for eight floors totaling almost 215,000 square feet.
"It makes more sense to be a long-term tenant rather than owning the building," said Dick Wade, president of Chase in Michigan.
Sterling Group will lease the remainder of the building. The firm owns and manages several other downtown Detroit buildings, including the 43-story, castle-like Guardian Building, one of the city's most recognizable high-rises.
Chase Tower was constructed in 1959 as headquarters for the National Bank of Detroit, Chase's predecessor. The buidling occupies a prominent location at 611 Woodward Ave. in the city's business district.
Last October, JPMorgan closed a deal that sent 33 properties to a fund managed by Toronto-based Brookfield Asset Management for about $460 million. The 5.3 million-square-foot portfolio spanned 10 cities, mostly in the Midwest, and featured several trophy-class building, including 300 S. Riverside Plaza in Chicago and namesake high-rises in downtown Phoenix and Milwaukee. JPMorgan leased back significant portions of space as part of that deal.
Last month, Brookfield flipped two former JPMorgan assets -- the 750,000-square-foot Chase Tower in Phoenix and the 412,500-square-foot North American Technology Center in Houston -- to Crystal River Capital, a specialty finance company externally managed and advised by a wholly owned subsidiary of Brookfield Asset Management, for about $234 million.
JPMorgan anchors both those buildings under 15-year, triple net leases originally signed with Brookfield. Sphere: Related Content
Spirit Finance Corporation Enters $3.5 Billion Merger Agreement
Spirit Finance Corp Web Site - March 13, 2007
Spirit Finance Corporation (NYSE: SFC), a real estate investment trust focused on single tenant, operationally essential real estate, today announced that it has entered into a definitive merger agreement under which a consortium including Macquarie Bank Limited, Kaupthing Bank hf. and other independent equity participants (collectively, 'the Consortium') will acquire Spirit Finance in a transaction valued at approximately $3.5 billion, including approximately $1.9 billion of assumed debt.
Under the terms of the agreement, the Consortium will acquire all of the outstanding shares of Spirit Finance common stock for $14.50 per share in cash. This represents a premium of approximately 15% over Spirit Finance's 90 day average closing share price and an 11% premium over Spirit Finance's closing price on March 12, 2007.
The transaction is expected to close promptly following the satisfaction of all closing conditions, which is anticipated to occur by the end of the third quarter of 2007. Under the merger agreement, Spirit Finance may solicit superior proposals from third parties through April 9, 2007. The Board of Directors of Spirit Finance, with the assistance of its financial advisors, intends to solicit superior proposals during this period.
The Consortium's debt financing in relation to the transaction is being provided by Credit Suisse. Sphere: Related Content
Spirit Finance Corporation (NYSE: SFC), a real estate investment trust focused on single tenant, operationally essential real estate, today announced that it has entered into a definitive merger agreement under which a consortium including Macquarie Bank Limited, Kaupthing Bank hf. and other independent equity participants (collectively, 'the Consortium') will acquire Spirit Finance in a transaction valued at approximately $3.5 billion, including approximately $1.9 billion of assumed debt.
Under the terms of the agreement, the Consortium will acquire all of the outstanding shares of Spirit Finance common stock for $14.50 per share in cash. This represents a premium of approximately 15% over Spirit Finance's 90 day average closing share price and an 11% premium over Spirit Finance's closing price on March 12, 2007.
The transaction is expected to close promptly following the satisfaction of all closing conditions, which is anticipated to occur by the end of the third quarter of 2007. Under the merger agreement, Spirit Finance may solicit superior proposals from third parties through April 9, 2007. The Board of Directors of Spirit Finance, with the assistance of its financial advisors, intends to solicit superior proposals during this period.
The Consortium's debt financing in relation to the transaction is being provided by Credit Suisse. Sphere: Related Content
US Govt Enters $270 Million Build-to-Suit of Military Housing in Germany
Stars & Stripes - March 13, 2007
German officials have given the go-ahead for a 300-unit, build-to-lease off-post housing area for U.S. soldiers in Grafenwöhr, Germany. Grafenwöhr mayor Helmuth Wächter said this month that government officials recently gave the green light to the project in Hütten, a small farming village a few miles south of Grafenwöhr Training Area.
Officials estimate about 1,600 off-post homes must be built to accommodate thousands of soldiers and family members due to arrive here over the next few years. The houses will be constructed under a build-to-lease program that will see the Army lease back the completed homes. The total cost of leasing all 1,600 homes to be built around Grafenwöhr will be $20 million annually, officials have said.
Officials have selected a private investor who work with the city in the Hütten on the Lake venture, Wächter said. He said it is too early to identify the investor. Wächter added that the housing project involves building new streets and utilities on bare farmland.
Hütten on the Lake will cost an estimated 200 million euros – about $270 million — to build, he said. Sphere: Related Content
German officials have given the go-ahead for a 300-unit, build-to-lease off-post housing area for U.S. soldiers in Grafenwöhr, Germany. Grafenwöhr mayor Helmuth Wächter said this month that government officials recently gave the green light to the project in Hütten, a small farming village a few miles south of Grafenwöhr Training Area.
Officials estimate about 1,600 off-post homes must be built to accommodate thousands of soldiers and family members due to arrive here over the next few years. The houses will be constructed under a build-to-lease program that will see the Army lease back the completed homes. The total cost of leasing all 1,600 homes to be built around Grafenwöhr will be $20 million annually, officials have said.
Officials have selected a private investor who work with the city in the Hütten on the Lake venture, Wächter said. He said it is too early to identify the investor. Wächter added that the housing project involves building new streets and utilities on bare farmland.
Hütten on the Lake will cost an estimated 200 million euros – about $270 million — to build, he said. Sphere: Related Content
Wednesday, March 14, 2007
Vue Entertainment Completes £71.1 Million Sale Leaseback of Six UK Cinemas
LawFuel - March 12, 2007
Anita Weightman, Vanessa Rickard, Claire Quinn, Stephen Jones and Susan Fink of DLA Piper have acted for Vue Entertainment on the £71.1 million sale and leaseback of a portfolio of six cinemas to Cheval Properties.
The portfolio composes five prime investment properties located in Cambridge, Doncaster, York, Accrington and the flagship Leicester Square cinema in London. The properties include a mix of freehold and leasehold interests.
There is also a redevelopment opportunity located in Bury adjacent to an ASDA Superstore. Vue has entered into a new 15-year lease on four of the investment properties, a 29-year lease on Leicester Square and a 3-year lease in Bury.
Vue is the largest operator of modern, stadia seated multiplex cinemas in the UK. It has 55 multiplex cinemas with 544 state-of-the-art auditoria. Sphere: Related Content
Anita Weightman, Vanessa Rickard, Claire Quinn, Stephen Jones and Susan Fink of DLA Piper have acted for Vue Entertainment on the £71.1 million sale and leaseback of a portfolio of six cinemas to Cheval Properties.
The portfolio composes five prime investment properties located in Cambridge, Doncaster, York, Accrington and the flagship Leicester Square cinema in London. The properties include a mix of freehold and leasehold interests.
There is also a redevelopment opportunity located in Bury adjacent to an ASDA Superstore. Vue has entered into a new 15-year lease on four of the investment properties, a 29-year lease on Leicester Square and a 3-year lease in Bury.
Vue is the largest operator of modern, stadia seated multiplex cinemas in the UK. It has 55 multiplex cinemas with 544 state-of-the-art auditoria. Sphere: Related Content
Fireman's Fund HQ in Novato, CA Sold for $310 Million
CoStar Group - March 12, 2007
American Financial Realty Trust (NYSE: AFR) is selling the Fireman's Fund Insurance Co. headquarters in Novato, CA to an undisclosed buyer for more than $310 million, or $436 a square foot.
The sale of the 710,330-square-foot, three-building property in the Marin County city north of San Francisco is expected to close in the second quarter. Jenkintown, PA-based AFR would only describe the buyer as a California-based private real estate investment group partnering with an institutional real estate investor.
First State Investors LLC, an AFR subsidiary, bought the 65-acre office complex from San Marin Assurance Co. in August 2005 for $283.5 million, or just under $400 a square foot. The building sold at a cap rate of 7.82% based on projected lease income from Fireman's Fund, which agreed to continue to lease the property on a net lease basis through November 2018. Susan Murdy, director of media relations for the national insurer, told CoStar that said the company’s headquarters would remain in Novato.
Fireman's Fund is one of the largest tenants in Marin County's modest office market, which amounts to about 7.5 million square feet.
Eastdil Secured is representing American Financial in the sale. Sphere: Related Content
American Financial Realty Trust (NYSE: AFR) is selling the Fireman's Fund Insurance Co. headquarters in Novato, CA to an undisclosed buyer for more than $310 million, or $436 a square foot.
The sale of the 710,330-square-foot, three-building property in the Marin County city north of San Francisco is expected to close in the second quarter. Jenkintown, PA-based AFR would only describe the buyer as a California-based private real estate investment group partnering with an institutional real estate investor.
First State Investors LLC, an AFR subsidiary, bought the 65-acre office complex from San Marin Assurance Co. in August 2005 for $283.5 million, or just under $400 a square foot. The building sold at a cap rate of 7.82% based on projected lease income from Fireman's Fund, which agreed to continue to lease the property on a net lease basis through November 2018. Susan Murdy, director of media relations for the national insurer, told CoStar that said the company’s headquarters would remain in Novato.
Fireman's Fund is one of the largest tenants in Marin County's modest office market, which amounts to about 7.5 million square feet.
Eastdil Secured is representing American Financial in the sale. Sphere: Related Content
Sunday, March 11, 2007
Sun Weighs $150 Million Sale Leaseback of Burlington MA Office Campus
Boston Herald - March 10, 2007
Sun Microsystems is exploring a sale of its116-acre Burlington campus, a move that comes as the once-hot tech giant slashes jobs and scales back its local ambitions, real estate executives said.
Santa Clara, Calif.-based Sun is weighing plans to sell the campus - a key research center which includes 700,000 square feet of office buildings - to an investor. It would then lease it back, enabling the company to cash in on a lucrative asset while relinquishing control over the real estate itself.
Sun could reap as much as $150 million from the so-called sale-leaseback, according to one real estate executive examining the deal. The site also includes untapped development sites that Sun is now not likely to use, executives said.
Sun’s real estate move comes as the company retrenches. It announced plans to cut 5,000 jobs last year. Sun made a big splash along tech-heavy Route 128 in the late 1990s, rolling out plans for a major corporate campus off Route 128 in Burlington with talk of someday employing 4,000 there. But today the number of Sun employees at its Burlington campus is roughly half that, with plans for new buildings mothballed. Sphere: Related Content
Sun Microsystems is exploring a sale of its116-acre Burlington campus, a move that comes as the once-hot tech giant slashes jobs and scales back its local ambitions, real estate executives said.
Santa Clara, Calif.-based Sun is weighing plans to sell the campus - a key research center which includes 700,000 square feet of office buildings - to an investor. It would then lease it back, enabling the company to cash in on a lucrative asset while relinquishing control over the real estate itself.
Sun could reap as much as $150 million from the so-called sale-leaseback, according to one real estate executive examining the deal. The site also includes untapped development sites that Sun is now not likely to use, executives said.
Sun’s real estate move comes as the company retrenches. It announced plans to cut 5,000 jobs last year. Sun made a big splash along tech-heavy Route 128 in the late 1990s, rolling out plans for a major corporate campus off Route 128 in Burlington with talk of someday employing 4,000 there. But today the number of Sun employees at its Burlington campus is roughly half that, with plans for new buildings mothballed. Sphere: Related Content
Bouygues Telecom Enters EUR 260 Million Build-to-Suit for Paris HQ
Property Magazine International - March 9, 2007
Having signed the deed for the Technôpole Bouygues Telecom project development just days ago, Commerz Grundbesitz (CGG) will invest more than 260 million euros in the property.
The building, which has a lettable area of 53,000 m² and 2,000 parking spaces, was sold by Bouygues Immobilier. The future tenant, Bouygues Telecom, is also part of the Bouygues Group and the third largest telco company in France.
The company signed a fixed lease over 9 years and will set up its corporate seat here as the building’s single tenant. On the seller side, the transaction was masterminded by Jones Lang LaSalle Paris.
Following its completion in late 2009, the office building will be added to the hausInvest europa portfolio. Sphere: Related Content
Having signed the deed for the Technôpole Bouygues Telecom project development just days ago, Commerz Grundbesitz (CGG) will invest more than 260 million euros in the property.
The building, which has a lettable area of 53,000 m² and 2,000 parking spaces, was sold by Bouygues Immobilier. The future tenant, Bouygues Telecom, is also part of the Bouygues Group and the third largest telco company in France.
The company signed a fixed lease over 9 years and will set up its corporate seat here as the building’s single tenant. On the seller side, the transaction was masterminded by Jones Lang LaSalle Paris.
Following its completion in late 2009, the office building will be added to the hausInvest europa portfolio. Sphere: Related Content
Saturday, March 10, 2007
Royal Mail Completes £70 Million Sale Leaseback of 285 UK Properties
Land Securities Group Web Site - March 8, 2007
Land Securities Group PLC announces that its property partnership business Land Securities Trillium (‘LST’) has completed the acquisition of a portfolio of 285 properties from the Royal Mail, for around £70 million.
Of the portfolio, a total of 108 leasehold properties are vacant and surplus to Royal Mail’s operations, the responsibility for which will now pass to Land Securities Trillium. These vacant properties will be refurbished by LST with a view to securing new occupiers. The remaining 177 freehold properties, where only part of the space is being used by Royal Mail for operational purposes, will be leased back by LST to Royal Mail for 15 years. Royal Mail will occupy just the space it needs within these buildings. It is expected that the contract will become earnings enhancing for LST from the second year of ownership onwards.
This transaction reportedly represents just 3% of the total operating space for Royal Mail. Sphere: Related Content
Land Securities Group PLC announces that its property partnership business Land Securities Trillium (‘LST’) has completed the acquisition of a portfolio of 285 properties from the Royal Mail, for around £70 million.
Of the portfolio, a total of 108 leasehold properties are vacant and surplus to Royal Mail’s operations, the responsibility for which will now pass to Land Securities Trillium. These vacant properties will be refurbished by LST with a view to securing new occupiers. The remaining 177 freehold properties, where only part of the space is being used by Royal Mail for operational purposes, will be leased back by LST to Royal Mail for 15 years. Royal Mail will occupy just the space it needs within these buildings. It is expected that the contract will become earnings enhancing for LST from the second year of ownership onwards.
This transaction reportedly represents just 3% of the total operating space for Royal Mail. Sphere: Related Content
Cable & Wireless Pursuing £86 Million Sale Leaseback of Eight UK Properties
Property Week reports that Cable & Wireless has retained Doherty Baines to carry out an £86 million sale and leaseback of eight office and technical properties totaling 350,000 sq ft (32,515 sq m) in the UK.
Sphere: Related Content
ShopKo Agrees to $75.5 Million Sale Leaseback Seven Stores in Western US
The Business Journal of Milwaukee - March 8, 2007
The operator of ShopKo discount department stores has agreed to sell and lease back seven store properties in the western United States under a transaction that will provide cash for new stores and remodeling of existing locations.
ShopKo Stores Operating Co. L.L.C. sold its ownership interest in the properties to Princeton, N.J., private equity investor Sovereign Investment Co. and its partner Atlas Investments for $75.5 million, the buyers said late Wednesday. The stores are in Salem, Bend and Eugene, Ore.; Boise, Idaho; Sandy City and Orem, Utah; and Lacey, Wash. ShopKo will lease the stores back for 20 years.
Proceeds from the transaction are expected to help strengthen ShopKo's financial position and allow management to focus on remodeling stores and growing the store base, Sovereign said.
In mid-2006, ShopKo sold 112 ShopKo store properties, 66 Pamida store properties, three distribution centers, ShopKo's corporate headquarters in Ashwaubenon and the Pamida headquarters in Omaha, Neb., to Spirit Finance Corp., a real estate investment trust based in Scottsdale, Ariz., for $815.3 million. Proceeds of that deal were to be used to retire a $700 million real estate debt and pay down a portion of a revolving credit facility.
ShopKo Stores Operating Co. is a company formed from the reorganization of SKO Group Holding Corp., a company created by private equity firm Sun Capital Partners Inc., of Boca Raton, Fla., in association with Sun's acquisition of the formerly publicly traded ShopKo Stores Inc. in December 2005. Sphere: Related Content
The operator of ShopKo discount department stores has agreed to sell and lease back seven store properties in the western United States under a transaction that will provide cash for new stores and remodeling of existing locations.
ShopKo Stores Operating Co. L.L.C. sold its ownership interest in the properties to Princeton, N.J., private equity investor Sovereign Investment Co. and its partner Atlas Investments for $75.5 million, the buyers said late Wednesday. The stores are in Salem, Bend and Eugene, Ore.; Boise, Idaho; Sandy City and Orem, Utah; and Lacey, Wash. ShopKo will lease the stores back for 20 years.
Proceeds from the transaction are expected to help strengthen ShopKo's financial position and allow management to focus on remodeling stores and growing the store base, Sovereign said.
In mid-2006, ShopKo sold 112 ShopKo store properties, 66 Pamida store properties, three distribution centers, ShopKo's corporate headquarters in Ashwaubenon and the Pamida headquarters in Omaha, Neb., to Spirit Finance Corp., a real estate investment trust based in Scottsdale, Ariz., for $815.3 million. Proceeds of that deal were to be used to retire a $700 million real estate debt and pay down a portion of a revolving credit facility.
ShopKo Stores Operating Co. is a company formed from the reorganization of SKO Group Holding Corp., a company created by private equity firm Sun Capital Partners Inc., of Boca Raton, Fla., in association with Sun's acquisition of the formerly publicly traded ShopKo Stores Inc. in December 2005. Sphere: Related Content
Thursday, March 08, 2007
Accor Enters EUR 863 Million Sale Leaseback of 91 Hotels in Germany & Netherlands
Hotel & Motel Management - March 5, 2007
As part of its real estate management strategy, Accor said today that it has signed a memorandum of understanding to sell 72 hotels in Germany and 19 in the Netherlands to Moor Park Real Estate for 863 million euros, including a 43-million-euro renovation program to be paid for by the owner. The Novotel, Mercure, Ibis and Etap Hotel properties involved in the transaction represent a total of 12,000 rooms.
Accor will continue to operate the hotels under 12-year variable-rent leases, whose rents are based on an average 18% of annual revenues with no guaranteed minimum. The leases are renewable six times, for a total of 84 years. Based on 2006 revenues, variable rent would have amounted to 49.5 million euros (5.74% cap rate.) Insurance costs, property taxes and structural maintenance capex (1.8 million euros in 2006) will be at the owner’s expense.
Accor is now pursuing its innovative real estate management strategy designed to reduce earnings volatility and can focus on its core business, hotels operations. Germany and the Netherlands now follow France, Belgium and the United Kingdom. The transaction enables Accor to join forces with a company that is already established in the German real estate market, owner of more than 70 Praktiker shops and with asset management teams.
As part of the agreement signed today, a long-term development partnership will be launched, enabling Accor to step up its expansion program in Germany and the Netherlands. Financially, the transaction will enable Accor to reduce its adjusted net debt by 612 million euros, of which 215 million euros will be added to the Group's cash reserves. It will have no impact on EBITDA, will add 5 million euros to 2007 profit before tax and 10 million euros on a full year base.
Accor's financial advisors on the transaction were BNP Paribas, with legal and tax advice by CMS Hasche Sigle and Stibbe. Sphere: Related Content
As part of its real estate management strategy, Accor said today that it has signed a memorandum of understanding to sell 72 hotels in Germany and 19 in the Netherlands to Moor Park Real Estate for 863 million euros, including a 43-million-euro renovation program to be paid for by the owner. The Novotel, Mercure, Ibis and Etap Hotel properties involved in the transaction represent a total of 12,000 rooms.
Accor will continue to operate the hotels under 12-year variable-rent leases, whose rents are based on an average 18% of annual revenues with no guaranteed minimum. The leases are renewable six times, for a total of 84 years. Based on 2006 revenues, variable rent would have amounted to 49.5 million euros (5.74% cap rate.) Insurance costs, property taxes and structural maintenance capex (1.8 million euros in 2006) will be at the owner’s expense.
Accor is now pursuing its innovative real estate management strategy designed to reduce earnings volatility and can focus on its core business, hotels operations. Germany and the Netherlands now follow France, Belgium and the United Kingdom. The transaction enables Accor to join forces with a company that is already established in the German real estate market, owner of more than 70 Praktiker shops and with asset management teams.
As part of the agreement signed today, a long-term development partnership will be launched, enabling Accor to step up its expansion program in Germany and the Netherlands. Financially, the transaction will enable Accor to reduce its adjusted net debt by 612 million euros, of which 215 million euros will be added to the Group's cash reserves. It will have no impact on EBITDA, will add 5 million euros to 2007 profit before tax and 10 million euros on a full year base.
Accor's financial advisors on the transaction were BNP Paribas, with legal and tax advice by CMS Hasche Sigle and Stibbe. Sphere: Related Content
Nordic Cold Storage Completes $83.3 Million Sale Leaseback of Three Warehouses in Atlanta
CoStar Group - March 6, 2007
W.P. Carey & Co., a New York-based investment firm, acquired three cold storage facilities in Georgia from Nordic Cold Storage LLC for $83.3 million, or about $65 per square foot. Nordic Cold Storage is leasing back each facility under long-term, triple net agreements.
The 1.3 million-square-foot portfolio includes 3485 Empire Blvd. in Atlanta, 4300 Pleasantdale Road in Doraville and 1802 Rome Highway in Rockmart. The Empire Blvd. facility is about 152,500 square feet and the Pleasantdale facility is about 301,800 square feet, while the Rome Highway property totals 850,000 square feet.
"We are attracted to the growth trends in this sector," said Jason Fox, a director with W.P. Carey. "There is increasing demand for well-located cold storage sites with easy access to highways and truck routes, sites that are currently at a premium. Nordic’s three metro-Atlanta locations are benefiting from this demand and operating at capacity."
Both the buyer and seller were self-represented. Nordic said it will reinvest proceeds from the sale to improve operations. Sphere: Related Content
W.P. Carey & Co., a New York-based investment firm, acquired three cold storage facilities in Georgia from Nordic Cold Storage LLC for $83.3 million, or about $65 per square foot. Nordic Cold Storage is leasing back each facility under long-term, triple net agreements.
The 1.3 million-square-foot portfolio includes 3485 Empire Blvd. in Atlanta, 4300 Pleasantdale Road in Doraville and 1802 Rome Highway in Rockmart. The Empire Blvd. facility is about 152,500 square feet and the Pleasantdale facility is about 301,800 square feet, while the Rome Highway property totals 850,000 square feet.
"We are attracted to the growth trends in this sector," said Jason Fox, a director with W.P. Carey. "There is increasing demand for well-located cold storage sites with easy access to highways and truck routes, sites that are currently at a premium. Nordic’s three metro-Atlanta locations are benefiting from this demand and operating at capacity."
Both the buyer and seller were self-represented. Nordic said it will reinvest proceeds from the sale to improve operations. Sphere: Related Content
Sunday, March 04, 2007
YIT Agrees to EUR 69 Million Sale Leaseback of Helsinki HQ
YIT Web Site - March 2, 2007
Finnish construction group YIT has decided to expand its head office in Käpylä, Helsinki, and agreed on the sale of the extension to RBS Nordisk Renting for EUR 69 million. Furthermore, Ilmarinen Mutual Pension Insurance Company will sell the office premises used by YIT in Käpylä to RBS Nordisk Renting.
YIT will develop and build the extension. Upon the completion of the project, YIT will move into the premises under a 15-year lease. The extension will measure about 15,000 m2. Construction will begin in March 2007 and the new office building is slated for completion by the end of 2008. The extension will have workspace for a total of about 600 people.
At the same time, the existing commercial premises on the property will be extended and modernized, and a four-storey parking lot will be built mainly underground for the property. Sphere: Related Content
Finnish construction group YIT has decided to expand its head office in Käpylä, Helsinki, and agreed on the sale of the extension to RBS Nordisk Renting for EUR 69 million. Furthermore, Ilmarinen Mutual Pension Insurance Company will sell the office premises used by YIT in Käpylä to RBS Nordisk Renting.
YIT will develop and build the extension. Upon the completion of the project, YIT will move into the premises under a 15-year lease. The extension will measure about 15,000 m2. Construction will begin in March 2007 and the new office building is slated for completion by the end of 2008. The extension will have workspace for a total of about 600 people.
At the same time, the existing commercial premises on the property will be extended and modernized, and a four-storey parking lot will be built mainly underground for the property. Sphere: Related Content
Saturday, March 03, 2007
Shell Oil HQ in in Helsinki Sold
Europe Real Estate - March 1, 2007
Aareal Nordic Fund, managed by Aareal Immobilien Kapitalanlagegesellschaft mbH, which is a 100% subsidiary of Aareal Asset Management GmbH, announces that it has purchased its fifth property in Finland, bringing its portfolio in the country close to the €100 million. The 10,000 m² office building is leased to Shell Oil and serves as their headquarters in Finland. Sphere: Related Content
Aareal Nordic Fund, managed by Aareal Immobilien Kapitalanlagegesellschaft mbH, which is a 100% subsidiary of Aareal Asset Management GmbH, announces that it has purchased its fifth property in Finland, bringing its portfolio in the country close to the €100 million. The 10,000 m² office building is leased to Shell Oil and serves as their headquarters in Finland. Sphere: Related Content
Thursday, March 01, 2007
Health Net Enters $90 Million Sale Leaseback of Northeastern HQ in CT
CoStar Group - February 26, 2007
Following a trend of pricey sale-leasebacks among corporate real estate owners, Health Net Inc. is selling its 68-acre Northeastern headquarters campus to The Dacourt Group in a $90 million deal.
The Woodland Hills, CA-based healthcare coverage provider signed a 10-year leaseback for its three-building, 327,000-square-foot office complex, located at 1 Far Mill Crossing in Shelton, CT. The deal is expected to close by the end of the first quarter.
"Freeing up this capital provides us with even greater financial flexibility going forward," said Jay Gellert, president and CEO of Health Net.
A slew of corporations have recently jumped onto the sale-leaseback wagon, including Sun Microsystems, IBM, JPMorgan Chase, Volkswagen and Merrill Lynch, which is currently in negotiations to sell and leaseback its Princeton, NJ-area campus. Corporate owners are increasingly looking to cash out their real estate assets in a hot market, and reinvest capital into other core operations. Sphere: Related Content
Following a trend of pricey sale-leasebacks among corporate real estate owners, Health Net Inc. is selling its 68-acre Northeastern headquarters campus to The Dacourt Group in a $90 million deal.
The Woodland Hills, CA-based healthcare coverage provider signed a 10-year leaseback for its three-building, 327,000-square-foot office complex, located at 1 Far Mill Crossing in Shelton, CT. The deal is expected to close by the end of the first quarter.
"Freeing up this capital provides us with even greater financial flexibility going forward," said Jay Gellert, president and CEO of Health Net.
A slew of corporations have recently jumped onto the sale-leaseback wagon, including Sun Microsystems, IBM, JPMorgan Chase, Volkswagen and Merrill Lynch, which is currently in negotiations to sell and leaseback its Princeton, NJ-area campus. Corporate owners are increasingly looking to cash out their real estate assets in a hot market, and reinvest capital into other core operations. Sphere: Related Content
National Grid Completes $61 Million Sale Leaseback of UK HQ
Property Executive - February 26, 2007
PRUPIM has purchased the freehold interest in National Grid House, Warwick Technology Park, Warwick for £61 million on behalf of one of its client funds.
The property comprises 244,192 sq ft of office accommodation, conference and meeting facilities, a health and fitness centre and a restaurant in six interlinked buildings. The net initial yield was 5.45%. The property was purchased on a sale and leaseback agreement, let to National Grid Electricity Transmission plc on a 20-year lease with a tenant's option to break at year 15.
Steffan Francis, PRUPIM's Head of Institutional Funds commented: 'We are very pleased to have secured a flagship headquarters office building with a long, well secured income. We expect to invest substantial sums this year in similar well let investments across the sectors.'
Savills acted for PRUPIM and GVA Grimley acted for National Grid. Sphere: Related Content
PRUPIM has purchased the freehold interest in National Grid House, Warwick Technology Park, Warwick for £61 million on behalf of one of its client funds.
The property comprises 244,192 sq ft of office accommodation, conference and meeting facilities, a health and fitness centre and a restaurant in six interlinked buildings. The net initial yield was 5.45%. The property was purchased on a sale and leaseback agreement, let to National Grid Electricity Transmission plc on a 20-year lease with a tenant's option to break at year 15.
Steffan Francis, PRUPIM's Head of Institutional Funds commented: 'We are very pleased to have secured a flagship headquarters office building with a long, well secured income. We expect to invest substantial sums this year in similar well let investments across the sectors.'
Savills acted for PRUPIM and GVA Grimley acted for National Grid. Sphere: Related Content
JP Morgan Chase Offices in Houston & Phoenix Sold for 234 Million
CoStar Group - February 28, 2007
Brookfield Asset Management (NYSE: BAM) is selling two fully leased office buildings in Houston and Phoenix to Crystal River Capital (NYSE:CRZ) in a deal valued at about $234 million. Crystal River is a specialty finance company externally managed and advised by a wholly-owned subsidiary of Brookfield Asset Management.
The 1.2 million-square-foot transaction includes the 750,000-square-foot Chase Tower -- Arizona's tallest building -- at 201 N. Central Ave. in downtown Phoenix, and the 412,500-square-foot North American Technology Center at 1111 Fannin St. in downtown Houston. JP Morgan Chase anchors both buildings under 15-year, triple net leases.
Toronto-based Brookfield, which teamed with The Blackstone Group to acquire Trizec Properties and Trizec Canada last year for $8.9 billion, acquired the two buildings last fall on behalf of Brookfield Real Estate Opportunity Fund in a 33-property, $460 million portfolio acquisition from JPMorgan Chase. That deal also included Chicago's landmark 300 S. Riverside Plaza office building and Milwaukee's 472,500-square-foot Chase Tower. Sphere: Related Content
Brookfield Asset Management (NYSE: BAM) is selling two fully leased office buildings in Houston and Phoenix to Crystal River Capital (NYSE:CRZ) in a deal valued at about $234 million. Crystal River is a specialty finance company externally managed and advised by a wholly-owned subsidiary of Brookfield Asset Management.
The 1.2 million-square-foot transaction includes the 750,000-square-foot Chase Tower -- Arizona's tallest building -- at 201 N. Central Ave. in downtown Phoenix, and the 412,500-square-foot North American Technology Center at 1111 Fannin St. in downtown Houston. JP Morgan Chase anchors both buildings under 15-year, triple net leases.
Toronto-based Brookfield, which teamed with The Blackstone Group to acquire Trizec Properties and Trizec Canada last year for $8.9 billion, acquired the two buildings last fall on behalf of Brookfield Real Estate Opportunity Fund in a 33-property, $460 million portfolio acquisition from JPMorgan Chase. That deal also included Chicago's landmark 300 S. Riverside Plaza office building and Milwaukee's 472,500-square-foot Chase Tower. Sphere: Related Content
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