The Star - June 22, 2007
SEG International Bhd (SEGi) plans to sell by year's end the new SEGi College campus in Kota Damansara to AmanahRaya Real Estate Investment Trust (REIT) and lease it back for 15 years.
Chief executive officer Datuk Clement Hii said that AmanahRaya REIT had made a tentative offer of RM145mil but the two parties were still working out the value. The move was aimed at unlocking the value of the land and to fund the construction of the new building, he said after the company's AGM yesterday.
Early this year, SEGi sold its Subang Jaya campus to AmanahRaya REIT for RM48mil. Hii said proceeds from the sale were being used to settle bank borrowings and fund future expansion in overseas markets.
“We want to be present in countries such as Indonesia, China, India, Britain, the United States and in some African nations through twinning programmes or stake acquisitions. The group was confident that the opening of the sixth campus would attract more foreign students, who now comprise 15% to 18% of the total enrolment, he added.
Sphere: Related Content
Monday, June 25, 2007
Friday, June 22, 2007
Bank of Ireland Completes €94 Million Sale Leaseback of 29 Bank Branches
Independent - June 20 2007:
The Layden Group has acquired a Bank of Ireland retail property portfolio in a sale and leaseback deal comprising a total of 30 properties around the country.
The 30 properties — which were guiding €89.5m — achieved a price of €94m, reflecting an initial yield of 3.9pc. The portfolio, made up of 29 retail branches and one call centre, was sold through CBRE property consultants.
The price attained underlines the continuing appetite for properties with “blue-chip” covenants in prominent locations. The branches are spread throughout Ireland with eight situated in Dublin, three in Ulster, seven in Munster, four in Connaught and 8 in Leinster (minus Dublin).
Each property contained an option on behalf of the purchaser to elect for either a fixed 15pc uplift at the first review or an open market rent review. The agents were quoting guide prices ranging from €5.42m for a branch in Mallow to €1.22m for one in Edenderry, Co Offaly. The entire portfolio will produce rents of just over €4m.
Commenting on the sale, Robert Murphy of CBRE noted that the demand for the individual branches was high. However, he added that there were a number of single bids for the portfolio “at yields that recognised the potential for strong retail growth and long term development opportunity.”
The Layden Group is a privately owned family business founded by Joe Layden some 30 years ago. It is a highly successful company with substantial property interests in the commercial and retail markets in Dublin, in the provinces and in Germany.
This is the second tranche of sale and leaseback properties recently disposed of on a sale and leaseback basis by BofI. Its initial sale of 36 branches last autumn attracted the interest of institutions and managers of private equity funds as well as prominent investors.
About half of the branches were sold with full 25-year leases as against 15-year leases in the present isntance. These properties realied around €240m in total. Sphere: Related Content
The Layden Group has acquired a Bank of Ireland retail property portfolio in a sale and leaseback deal comprising a total of 30 properties around the country.
The 30 properties — which were guiding €89.5m — achieved a price of €94m, reflecting an initial yield of 3.9pc. The portfolio, made up of 29 retail branches and one call centre, was sold through CBRE property consultants.
The price attained underlines the continuing appetite for properties with “blue-chip” covenants in prominent locations. The branches are spread throughout Ireland with eight situated in Dublin, three in Ulster, seven in Munster, four in Connaught and 8 in Leinster (minus Dublin).
Each property contained an option on behalf of the purchaser to elect for either a fixed 15pc uplift at the first review or an open market rent review. The agents were quoting guide prices ranging from €5.42m for a branch in Mallow to €1.22m for one in Edenderry, Co Offaly. The entire portfolio will produce rents of just over €4m.
Commenting on the sale, Robert Murphy of CBRE noted that the demand for the individual branches was high. However, he added that there were a number of single bids for the portfolio “at yields that recognised the potential for strong retail growth and long term development opportunity.”
The Layden Group is a privately owned family business founded by Joe Layden some 30 years ago. It is a highly successful company with substantial property interests in the commercial and retail markets in Dublin, in the provinces and in Germany.
This is the second tranche of sale and leaseback properties recently disposed of on a sale and leaseback basis by BofI. Its initial sale of 36 branches last autumn attracted the interest of institutions and managers of private equity funds as well as prominent investors.
About half of the branches were sold with full 25-year leases as against 15-year leases in the present isntance. These properties realied around €240m in total. Sphere: Related Content
Eircom Seeking €40 Million Sale Leaseback in Dublin
The Irish Times - June 20, 2007
Eircom is to embark on a sale and leaseback of another of its principal buildings in Dublin. The company's network management centre at Citywest is expected to make around €40 million when it is offered for sale shortly by Sean O'Neill of DTZ Sherry FitzGerald.
Last December Quinlan Private bought Eircom's new headquarters near Heuston Station for over €190 million in a similar sale and leaseback deal. Although details of the latest sale have not been confirmed, Eircom is expected to pay a rent of about €2 million for the three-storey block of 6,875sq m (74,000sq ft) fronting onto the N7 Naas Road.
This would show a net yield of 4.5 per cent. Purchasers will be offered the opportunity to make offers based on the inclusion or exclusion of a tenant-operable break option in year 15 of a 25-year lease. There are 280 surface car-parking spaces but a small exchange on the site will be excluded from the sale. Sphere: Related Content
Eircom is to embark on a sale and leaseback of another of its principal buildings in Dublin. The company's network management centre at Citywest is expected to make around €40 million when it is offered for sale shortly by Sean O'Neill of DTZ Sherry FitzGerald.
Last December Quinlan Private bought Eircom's new headquarters near Heuston Station for over €190 million in a similar sale and leaseback deal. Although details of the latest sale have not been confirmed, Eircom is expected to pay a rent of about €2 million for the three-storey block of 6,875sq m (74,000sq ft) fronting onto the N7 Naas Road.
This would show a net yield of 4.5 per cent. Purchasers will be offered the opportunity to make offers based on the inclusion or exclusion of a tenant-operable break option in year 15 of a 25-year lease. There are 280 surface car-parking spaces but a small exchange on the site will be excluded from the sale. Sphere: Related Content
Merrill Lynch Completes £480 Million Sale Leaseback of London HQ Office Campus
Easier Property News - June 20, 2007
Merrill Lynch today announced the sale of its flagship City of London office campus in a transaction worth approximately £480 million.
An affiliate of GIC Real Estate, the property investment arm of the Government of Singapore Investment Corporation, has agreed to purchase Chapterhouse Holdings Limited whose primary asset is the Merrill Lynch Financial Centre (MLFC) at 2 King Edward Street. MLFC is leased by Merrill Lynch for a term of 15 years with renewal rights extending significantly beyond the initial term.
The MLFC was recently created by Merrill Lynch to fit the company’s specific needs. The office building has been constructed to a very high standard and features two of the largest trading floors in Europe, a 150-seat auditorium, a dedicated client centre as well as many amenities for the over 4,000 employees who work in MLFC and other nearby Merrill Lynch offices.
The building has won a number of significant awards, including the 2002 BCO Best Corporate Workplace Award, the 2002 Stone Award for Interiors and the AIA London Chapter Design Award. MLFC has a net lettable area of approximately 550,000 square feet and is located in the City of London, close to St.Paul’s Cathedral, on land previously occupied by the Post Office covering the north side of Newgate Street from King Edward Street to Giltspur Street.
Merrill Lynch was advised by its Real Estate Investment Banking team and Linklaters LLP, while GIC Real Estate was advised by DTZ and Herbert Smith LLP. Sphere: Related Content
Merrill Lynch today announced the sale of its flagship City of London office campus in a transaction worth approximately £480 million.
An affiliate of GIC Real Estate, the property investment arm of the Government of Singapore Investment Corporation, has agreed to purchase Chapterhouse Holdings Limited whose primary asset is the Merrill Lynch Financial Centre (MLFC) at 2 King Edward Street. MLFC is leased by Merrill Lynch for a term of 15 years with renewal rights extending significantly beyond the initial term.
The MLFC was recently created by Merrill Lynch to fit the company’s specific needs. The office building has been constructed to a very high standard and features two of the largest trading floors in Europe, a 150-seat auditorium, a dedicated client centre as well as many amenities for the over 4,000 employees who work in MLFC and other nearby Merrill Lynch offices.
The building has won a number of significant awards, including the 2002 BCO Best Corporate Workplace Award, the 2002 Stone Award for Interiors and the AIA London Chapter Design Award. MLFC has a net lettable area of approximately 550,000 square feet and is located in the City of London, close to St.Paul’s Cathedral, on land previously occupied by the Post Office covering the north side of Newgate Street from King Edward Street to Giltspur Street.
Merrill Lynch was advised by its Real Estate Investment Banking team and Linklaters LLP, while GIC Real Estate was advised by DTZ and Herbert Smith LLP. Sphere: Related Content
Amcor Completes $57 Million Sale Leaseback of HQ in Australia
Colliers International Web Site - June 19, 2007
Leading Western Australian development company Primewest Management has paid $57 million for Amcor’s Bibra Lake headquarters in one of the biggest industrial property deals ever completed in WA.
The 38.14 hectare site is ideally positioned within the high profile Bibra Lake/Cockburn industrial precinct and has extensive frontage to Phoenix Road. Packaging giant Amcor will lease back its existing factory and offices on a long term basis, while Primewest will develop a high quality industrial estate and possibly an office park on the surplus land.
Primewest is already in discussions with a number of national tenants for design and construct projects on the land and expects work to commence on the site before year end.
Amcor will lease back its 14,000 square metre factory and 730 square metre office complex, but the balance of the land will be redevelopment into industrial lots and possibly an office park.
Primewest Management is one of the most successful wholesale property syndicators and developers in Western Australia and over the last 10 years the company and its directors have built a national portfolio valued in excess of $1 billion. It also owns a number of bulky goods properties and shopping centres throughout WA and NSW. Sphere: Related Content
Leading Western Australian development company Primewest Management has paid $57 million for Amcor’s Bibra Lake headquarters in one of the biggest industrial property deals ever completed in WA.
The 38.14 hectare site is ideally positioned within the high profile Bibra Lake/Cockburn industrial precinct and has extensive frontage to Phoenix Road. Packaging giant Amcor will lease back its existing factory and offices on a long term basis, while Primewest will develop a high quality industrial estate and possibly an office park on the surplus land.
Primewest is already in discussions with a number of national tenants for design and construct projects on the land and expects work to commence on the site before year end.
Amcor will lease back its 14,000 square metre factory and 730 square metre office complex, but the balance of the land will be redevelopment into industrial lots and possibly an office park.
Primewest Management is one of the most successful wholesale property syndicators and developers in Western Australia and over the last 10 years the company and its directors have built a national portfolio valued in excess of $1 billion. It also owns a number of bulky goods properties and shopping centres throughout WA and NSW. Sphere: Related Content
Monday, June 18, 2007
British Car Auctions Pursuing £317 Million Sale Leaseback of 17 UK Properties
Estates Gazette reports that British Car Auctions, Europe's largest car auctioneer, has brought a £317m sale-and-leaseback portfolio to market through CB Richard Ellis seeking a 5.4% yield.
The firm's 17 freehold auction rooms include a total 170 acres of land with development potential. The company plans to take 30- to 35-year leases on the properties at rents based on current operating profits and subject to fixed, inflation-linked uplifts. Sphere: Related Content
The firm's 17 freehold auction rooms include a total 170 acres of land with development potential. The company plans to take 30- to 35-year leases on the properties at rents based on current operating profits and subject to fixed, inflation-linked uplifts. Sphere: Related Content
Sunday, June 17, 2007
Santander Plans €4 Billion Sale Leaseback of Property Portfolio in Spain
The Guardian - June 14, 2007
The Spanish bank Santander, a member of the Royal Bank of Scotland-led consortium bidding for ABN Amro, is preparing to sell property to raise €4bn (£2.7bn) to help fund the record-breaking £48bn takeover attempt of the Dutch bank.
As the Spanish bank lined up its property assets for the market, Barclays was searching for ways to add a cash sweetener to its agreed, but lower, bid for ABN Amro. Barclays, whose offer has the recommendation of the Dutch bank's board, is funding its deal entirely in shares but is expected to have to increase its bid to be able to see off the RBS consortium.
The RBS consortium has structured its hostile offer as 79% cash and the rest in RBS shares. Santander and the Dutch-Belgian financial group Fortis are providing much of the cash. By selling off 44 buildings throughout Spain, 1,200 offices and its new headquarters in Boadilla on the outskirts of Madrid, Santander is beginning the process of raising the €20bn of cash needed to fulfil its part of the deal.
The Spanish bank is thought to have been considering a sale of the property assets before the ABN Amro bid. Spanish property prices have been booming and selling the property would unleash gains for Santander, which intends to lease back the properties it sells. The one property excluded from the deal is the official headquarters in Paseo de Pereda where Santander was founded 150 years ago.
It is not certain that Santander will actually need the cash to fund a bid for ABN Amro as the circumstances surrounding the offer are very complicated. Sphere: Related Content
The Spanish bank Santander, a member of the Royal Bank of Scotland-led consortium bidding for ABN Amro, is preparing to sell property to raise €4bn (£2.7bn) to help fund the record-breaking £48bn takeover attempt of the Dutch bank.
As the Spanish bank lined up its property assets for the market, Barclays was searching for ways to add a cash sweetener to its agreed, but lower, bid for ABN Amro. Barclays, whose offer has the recommendation of the Dutch bank's board, is funding its deal entirely in shares but is expected to have to increase its bid to be able to see off the RBS consortium.
The RBS consortium has structured its hostile offer as 79% cash and the rest in RBS shares. Santander and the Dutch-Belgian financial group Fortis are providing much of the cash. By selling off 44 buildings throughout Spain, 1,200 offices and its new headquarters in Boadilla on the outskirts of Madrid, Santander is beginning the process of raising the €20bn of cash needed to fulfil its part of the deal.
The Spanish bank is thought to have been considering a sale of the property assets before the ABN Amro bid. Spanish property prices have been booming and selling the property would unleash gains for Santander, which intends to lease back the properties it sells. The one property excluded from the deal is the official headquarters in Paseo de Pereda where Santander was founded 150 years ago.
It is not certain that Santander will actually need the cash to fund a bid for ABN Amro as the circumstances surrounding the offer are very complicated. Sphere: Related Content
Thursday, June 14, 2007
deCODE Genetics Completes $25 Million Sale Leaseback of Chicago Facility
deCODE Web Site - June 12, 2007
deCODE genetics (Nasdaq:DCGN) today announced that it has completed a sale and leaseback of its Woodridge, Illinois medicinal chemistry facility. The company sold the facility for $25 million and has entered into a lease with an initial term of 17 years. After costs associated with the outstanding mortgage on the facility, taxes and expenses, deCODE netted $18.4 million, resources the company can now apply to its drug and diagnostic development programs.
(deCODEs 8-K filing of June 12 states that the initial rent under the absolute net lease was $163,083.33 per month (7.83% cap rate) subject to annual rent increases of 2.5%, and two 5 year renewal options with rent at the then prevailing market rate.) Sphere: Related Content
deCODE genetics (Nasdaq:DCGN) today announced that it has completed a sale and leaseback of its Woodridge, Illinois medicinal chemistry facility. The company sold the facility for $25 million and has entered into a lease with an initial term of 17 years. After costs associated with the outstanding mortgage on the facility, taxes and expenses, deCODE netted $18.4 million, resources the company can now apply to its drug and diagnostic development programs.
(deCODEs 8-K filing of June 12 states that the initial rent under the absolute net lease was $163,083.33 per month (7.83% cap rate) subject to annual rent increases of 2.5%, and two 5 year renewal options with rent at the then prevailing market rate.) Sphere: Related Content
Sunday, June 10, 2007
85 Somerfield Petrol Stations in UK Offered for £200 Million
Rapleys / Financial Times - June 8, 2007
Palmer Capital Partners, the venture capital-style property group run by Ray Palmer, has hired agents to sell 85 petrol stations let to Somerfield, the supermarket group. The portfolio is being marketed through agents CB Richard Ellis and Rapleys at a price of £200m, a yield of about 5.5 per cent. If achieved, it would mark a big profit on the £70m paid for an initial 140 properties two years ago.
In April 2005, PCP joined forces with Somerfield and partner RREEF, the property investment wing of Deutsche Bank, to buy the assets from oil group Chevron. Somerfield agreed to remain on the sites for 20 years under a reverse sale-and-leaseback deal. Since then, property values have soared.
The owners have spent £50m expanding and revamping many of the sites - at an average of £750,000 each. The estate has grown from 65,000 sq ft to about 110,000 sq ft with a target of 143,000 sq ft by the end of the year. Sphere: Related Content
Palmer Capital Partners, the venture capital-style property group run by Ray Palmer, has hired agents to sell 85 petrol stations let to Somerfield, the supermarket group. The portfolio is being marketed through agents CB Richard Ellis and Rapleys at a price of £200m, a yield of about 5.5 per cent. If achieved, it would mark a big profit on the £70m paid for an initial 140 properties two years ago.
In April 2005, PCP joined forces with Somerfield and partner RREEF, the property investment wing of Deutsche Bank, to buy the assets from oil group Chevron. Somerfield agreed to remain on the sites for 20 years under a reverse sale-and-leaseback deal. Since then, property values have soared.
The owners have spent £50m expanding and revamping many of the sites - at an average of £750,000 each. The estate has grown from 65,000 sq ft to about 110,000 sq ft with a target of 143,000 sq ft by the end of the year. Sphere: Related Content
Friday, June 08, 2007
Quick Restaurants Agrees to $428 Million Sale Leaseback of 102 Outlets Across France
Bloomberg - June 6, 2007
Fonciere des Murs SCA, which buys buildings and leases them back to their previous owners, agreed to purchase 102 outlets across France from the Quick Restaurants fast food chain for 316 million euros ($428 million).
Quick Restaurants, acquired earlier this year by France's state-owned Caisse des Depots et Consignations, will lease back the restaurants for 12 years, paying an initial annual rent of 18 million euros, Paris-based Fonciere des Murs said in an e- mailed statement today. Sphere: Related Content
Fonciere des Murs SCA, which buys buildings and leases them back to their previous owners, agreed to purchase 102 outlets across France from the Quick Restaurants fast food chain for 316 million euros ($428 million).
Quick Restaurants, acquired earlier this year by France's state-owned Caisse des Depots et Consignations, will lease back the restaurants for 12 years, paying an initial annual rent of 18 million euros, Paris-based Fonciere des Murs said in an e- mailed statement today. Sphere: Related Content
Tuesday, June 05, 2007
Pep Boys Ponders $1 Billion Sale Leaseback of Store Portfolio
Automotive Week/The Greensheet - June 1, 2007
Pep Boys management is asking for patience from the financial community as it is working on a long-term strategic plan to grow the business. During a recent conference call to discuss its first-quarter financial results, Jeff Rachor — the new president and CEO of Philadelphia-based Pep Boys — said he is working with the company’s senior leadership team and board of directors to define the company’s purpose and develop a plan.
“One reason our company’s return on invested capital has struggled is the relatively-heavy asset base that we carry,” Rachor said. “Since last year, the company has been developing a program to address this opportunity.”
He said Pep Boys is now in a position to move forward. “In my early assessment of Pep Boys, I always questioned the need to have such a large portfolio of owned properties and even secondary assets, such as our distribution centers, office buildings and company-owned life insurance,” Rachor explained. Pep Boys owns 323 of its 593 stores. According to a Pep Boys appraisal conducted at the close of 2004, those owned properties had a value of around $900 million. Harry Yanowitz, senior vice president and CFO, estimates that the properties are currently worth more than $1 billion. The company has an additional 200 ground-link stores, meaning that Pep Boys owns the building on top of the land and controls the property. Many of these leases were struck 15-20 years ago.
“We are very fortunate that many of these assets have appreciated materially from their original purchase values. There are several options available to the company to monetize these assets, including sale-leaseback transactions, outright sales and taking advantage of below-margin long-term leases,” Rachor said. “We are completing a process — supported by external real estate advisory specialists — to analyze each of our owned and leased locations to determine how to most efficiently evaluate our properties in a manner that will allow us to maximize shareholder value.” Sphere: Related Content
Pep Boys management is asking for patience from the financial community as it is working on a long-term strategic plan to grow the business. During a recent conference call to discuss its first-quarter financial results, Jeff Rachor — the new president and CEO of Philadelphia-based Pep Boys — said he is working with the company’s senior leadership team and board of directors to define the company’s purpose and develop a plan.
“One reason our company’s return on invested capital has struggled is the relatively-heavy asset base that we carry,” Rachor said. “Since last year, the company has been developing a program to address this opportunity.”
He said Pep Boys is now in a position to move forward. “In my early assessment of Pep Boys, I always questioned the need to have such a large portfolio of owned properties and even secondary assets, such as our distribution centers, office buildings and company-owned life insurance,” Rachor explained. Pep Boys owns 323 of its 593 stores. According to a Pep Boys appraisal conducted at the close of 2004, those owned properties had a value of around $900 million. Harry Yanowitz, senior vice president and CFO, estimates that the properties are currently worth more than $1 billion. The company has an additional 200 ground-link stores, meaning that Pep Boys owns the building on top of the land and controls the property. Many of these leases were struck 15-20 years ago.
“We are very fortunate that many of these assets have appreciated materially from their original purchase values. There are several options available to the company to monetize these assets, including sale-leaseback transactions, outright sales and taking advantage of below-margin long-term leases,” Rachor said. “We are completing a process — supported by external real estate advisory specialists — to analyze each of our owned and leased locations to determine how to most efficiently evaluate our properties in a manner that will allow us to maximize shareholder value.” Sphere: Related Content
Sunday, June 03, 2007
Sunny Delight Completes $58 Million Sale Leaseback of Three Bottling Facilities
Commercial Property News - May 30, 2007
Angelo, Gordon & Co., acting through its dedicated Net Lease Group, AG Net Lease, has wrapped up the purchase of three industrial properties through a $58 million sale-leaseback transaction with Sunny Delight Beverages Co. The properties, located in three different states, account for an aggregate 732,000 square feet.
The transaction allows Sunny Delight, which was acquired by private equity firm J.W. Childs Associates L.P. three years ago, to continue utilizing the space for its domestic bottling activities while pocketing--after paying down senior debt--a substantial amount of capital to invest in business growth. The assets involved include a 295,000-square-foot facility in Dayton, N.J.; a 265,000-square-foot property in Atlanta, Ga.; and a 172,000-square-foot property in Anaheim, Calif. Calif. (pictured). Constructed in the late 1970s and early 1980s, all three facilities have undergone recent upgrades. Sphere: Related Content
Angelo, Gordon & Co., acting through its dedicated Net Lease Group, AG Net Lease, has wrapped up the purchase of three industrial properties through a $58 million sale-leaseback transaction with Sunny Delight Beverages Co. The properties, located in three different states, account for an aggregate 732,000 square feet.
The transaction allows Sunny Delight, which was acquired by private equity firm J.W. Childs Associates L.P. three years ago, to continue utilizing the space for its domestic bottling activities while pocketing--after paying down senior debt--a substantial amount of capital to invest in business growth. The assets involved include a 295,000-square-foot facility in Dayton, N.J.; a 265,000-square-foot property in Atlanta, Ga.; and a 172,000-square-foot property in Anaheim, Calif. Calif. (pictured). Constructed in the late 1970s and early 1980s, all three facilities have undergone recent upgrades. Sphere: Related Content
Sunday, May 27, 2007
Telekom Malaysia Berhad Proposes $320 Million Islamic Sale Leaseback Transaction of Four Office Buildings
Bursa Malaysia Web Site - May 25, 2007
Telekom Malaysia Berhad wishes to announce a proposed Islamic Sale and Leaseback ransaction involving the issuance of up to RM1,100 million ($320 Million) Islamic Trust Certificates ('Sukuk'), details of which are set out below.
The Proposed Transaction involves the sale of four (4) of its property assets at a total value of up to RM1,100 million to Menara ABS Berhad, a special purpose vehicle. The Properties identified are known as Menara TM, Menara Celcom, Cyberjaya Complex and Wisma TM Taman Desa. Subsequent to the sale, the Properties will then be leased back to TM on a portfolio basis, under the Ijarah principle, for a lease term of up to fifteen (15) years.
The Proposed Transaction will involve a true sale transaction with respect to the Properties and an operating lease treatment with respect to the lease arrangement while allowing TM and its group of companies ("TM Group") uninterrupted occupation of its existing premises.
The Proposed Transaction, which will be implemented under the Securities Commission's Guidelines on the Offering of Asset-Backed Securities read together with the Guidelines on the Offering of Islamic Securities, will facilitate the issuance of three (3) different classes of Sukuk in tranches by Menara ABS Berhad. The funds to be raised from the issuance of such Sukuk shall be utilized by Menara ABS Berhad to pay TM for the purchase of the Properties.
The Proposed Transaction will facilitate TM's implementation of its strategy to monetize its non-core assets with a view to further improving operating financial ratios while focusing on its core business of providing telecommunication services.
TM will have the right of first refusal to either re-purchase the Properties or continue with the lease on new terms to be negotiated. Citibank Berhad has been appointed as the Principal Adviser/Lead Arranger for the Proposed Transaction.
An application has been submitted to the Securities Commission for approval of the Proposed Transaction. The Proposal is expected to be completed within six (6) months from the date of the Securities Commission's approval for the Proposed Transaction. Sphere: Related Content
Telekom Malaysia Berhad wishes to announce a proposed Islamic Sale and Leaseback ransaction involving the issuance of up to RM1,100 million ($320 Million) Islamic Trust Certificates ('Sukuk'), details of which are set out below.
The Proposed Transaction involves the sale of four (4) of its property assets at a total value of up to RM1,100 million to Menara ABS Berhad, a special purpose vehicle. The Properties identified are known as Menara TM, Menara Celcom, Cyberjaya Complex and Wisma TM Taman Desa. Subsequent to the sale, the Properties will then be leased back to TM on a portfolio basis, under the Ijarah principle, for a lease term of up to fifteen (15) years.
The Proposed Transaction will involve a true sale transaction with respect to the Properties and an operating lease treatment with respect to the lease arrangement while allowing TM and its group of companies ("TM Group") uninterrupted occupation of its existing premises.
The Proposed Transaction, which will be implemented under the Securities Commission's Guidelines on the Offering of Asset-Backed Securities read together with the Guidelines on the Offering of Islamic Securities, will facilitate the issuance of three (3) different classes of Sukuk in tranches by Menara ABS Berhad. The funds to be raised from the issuance of such Sukuk shall be utilized by Menara ABS Berhad to pay TM for the purchase of the Properties.
The Proposed Transaction will facilitate TM's implementation of its strategy to monetize its non-core assets with a view to further improving operating financial ratios while focusing on its core business of providing telecommunication services.
TM will have the right of first refusal to either re-purchase the Properties or continue with the lease on new terms to be negotiated. Citibank Berhad has been appointed as the Principal Adviser/Lead Arranger for the Proposed Transaction.
An application has been submitted to the Securities Commission for approval of the Proposed Transaction. The Proposal is expected to be completed within six (6) months from the date of the Securities Commission's approval for the Proposed Transaction. Sphere: Related Content
Wednesday, May 23, 2007
Athens Stock Exchange HQ Sold for EUR 47Million
PropertyEU - May 21, 2007
Babis Vovos International Construction (BVIC) has sold a 12,000 m2 office building development in downtown Athens to German real estate company KanAm Grund for just over EUR 47 mln. The property is part of a three-building office complex under construction on an 8,000 m2 plot.
BVIC, Greece's largest listed property company by market capitalisation, was awarded the development in September 2005, following an open bid process held by the Greek stock exchange operator Hellenic Exchanges. BVIC is developing an office building of 6,700 m2, where all of the stock exchange's departments will relocate. BVIC is the owner of the two other buildings, the 12,000 m2 building and a 5,000 m2 property that has already been sold to insurance company Allianz for EUR 17.5 mln. The sale agreement with KanAm Grund was signed on the 18 May 2007 and the building is to be delivered on the 31 October 2007. Sphere: Related Content
Babis Vovos International Construction (BVIC) has sold a 12,000 m2 office building development in downtown Athens to German real estate company KanAm Grund for just over EUR 47 mln. The property is part of a three-building office complex under construction on an 8,000 m2 plot.
BVIC, Greece's largest listed property company by market capitalisation, was awarded the development in September 2005, following an open bid process held by the Greek stock exchange operator Hellenic Exchanges. BVIC is developing an office building of 6,700 m2, where all of the stock exchange's departments will relocate. BVIC is the owner of the two other buildings, the 12,000 m2 building and a 5,000 m2 property that has already been sold to insurance company Allianz for EUR 17.5 mln. The sale agreement with KanAm Grund was signed on the 18 May 2007 and the building is to be delivered on the 31 October 2007. Sphere: Related Content
Sunday, May 20, 2007
Superquinn Completes €142 Million Sale Leaseback of Six Supermarkets in Ireland
Independent - May 18 2007
Superquinn, the grocer which was purchased by Select Retail Holdings in 2005, has raised €142.5m on a sale and leaseback deal on six stores that will fund further expansion. The company said yesterday that Friends First F&C has agreed an investment of €142.5m in the Superquinn property portfolio.
The cash investment, which is spread across several sites, has allowed a significant reduction in the debt incurred by Select Retail Holdings in the purchase of Superquinn. Select Retail Holdings said this is an important step in enabling the substantial expansion planned for the Superquinn business over the next three years. Superquinn plans to refurbish five more sites and to open three new stores, at a cost of €60m for the year ending April 2008.
Superquinn was founded in 1960 by Feargal Quinn and family. The company currently has 21 stores. In 2005, the company was purchased by Irish consortium Select Retail Holdings, for €420m. Sphere: Related Content
Superquinn, the grocer which was purchased by Select Retail Holdings in 2005, has raised €142.5m on a sale and leaseback deal on six stores that will fund further expansion. The company said yesterday that Friends First F&C has agreed an investment of €142.5m in the Superquinn property portfolio.
The cash investment, which is spread across several sites, has allowed a significant reduction in the debt incurred by Select Retail Holdings in the purchase of Superquinn. Select Retail Holdings said this is an important step in enabling the substantial expansion planned for the Superquinn business over the next three years. Superquinn plans to refurbish five more sites and to open three new stores, at a cost of €60m for the year ending April 2008.
Superquinn was founded in 1960 by Feargal Quinn and family. The company currently has 21 stores. In 2005, the company was purchased by Irish consortium Select Retail Holdings, for €420m. Sphere: Related Content
Thursday, May 17, 2007
Capio AB Completes £686 Million Sale Leaseback of 21 UK Hospitals
The Times - May 15, 2007
A consortium including HBOS and Sir Tom Hunter, the property tycoon, has paid £686 million for a portfolio of 21 private hospitals from the healthcare operator Capio AB.
The Prestbury consortium is backed by Sir Tom’s West Coast Capital, the Icelandic investor Baugur and Bank of Scotland. The group said that the hospitals would be leased back to Capio on 30-year leases, with an initial rent of £39.5 million a year (i.e. a 5.75% cap rate.)
Capio AB was purchased last year by a private equity consortium comprising Apax Partners, Nordic Capital and Apax France. They have placed a sale and leaseback of the group’s property portfolio at the heart of their future plans for the Sweden-based company, which also operates hospitals in France, Germany, Spain and across Scandinavia.
The deal represents the latest change in the rapidly evolving British hospitals market. BUPA, the UK healthcare giant, is selling its own portfolio of 26 private hospitals for what some observers have estimated could fetch as much as £1.4 billion.
Prestbury has completed a number of similar sale and leaseback deals recently. They include 220 pubs from Spirit Group, now Punch Taverns, for £500 million, as well as two portfolios of hotels from Travelodge for £527 million and the Bank of Scotland’s London HQ for £140 million.
HBOS has worked with Sir Tom on a number of deals, including bids for McCarthy & Stone, the retirement homes company, House of Fraser, the retailer, and Wyevale, the garden centre chain. Sphere: Related Content
A consortium including HBOS and Sir Tom Hunter, the property tycoon, has paid £686 million for a portfolio of 21 private hospitals from the healthcare operator Capio AB.
The Prestbury consortium is backed by Sir Tom’s West Coast Capital, the Icelandic investor Baugur and Bank of Scotland. The group said that the hospitals would be leased back to Capio on 30-year leases, with an initial rent of £39.5 million a year (i.e. a 5.75% cap rate.)
Capio AB was purchased last year by a private equity consortium comprising Apax Partners, Nordic Capital and Apax France. They have placed a sale and leaseback of the group’s property portfolio at the heart of their future plans for the Sweden-based company, which also operates hospitals in France, Germany, Spain and across Scandinavia.
The deal represents the latest change in the rapidly evolving British hospitals market. BUPA, the UK healthcare giant, is selling its own portfolio of 26 private hospitals for what some observers have estimated could fetch as much as £1.4 billion.
Prestbury has completed a number of similar sale and leaseback deals recently. They include 220 pubs from Spirit Group, now Punch Taverns, for £500 million, as well as two portfolios of hotels from Travelodge for £527 million and the Bank of Scotland’s London HQ for £140 million.
HBOS has worked with Sir Tom on a number of deals, including bids for McCarthy & Stone, the retirement homes company, House of Fraser, the retailer, and Wyevale, the garden centre chain. Sphere: Related Content
Thursday, May 10, 2007
Nomura Seeking $466 Million For Sale Leaseback of London HQ
Bloomberg - May 8, 2007
Nomura Holdings Inc., Japan's largest securities firm, put its London headquarters building on sale for at least 234 million pounds ($466 million).
Real estate consultant Drivers Jonas said in an e-mailed statement today that it has been hired to sell No.1 St. Martin's Le Grand, an office tower containing 275,000 square feet of space near St. Paul's Cathedral, which Nomura intends to lease back.
Nomura is the latest firm to plan a sale and leaseback of its headquarters to take advantage of escalating prices for office buildings in central London. Spanish real estate company Metrovacesa SA set a record for a single building in the U.K. last month, when it bought HSBC Holdings Plc's Docklands headquarters for 1.09 billion pounds.
Details of Nomura's initial investment in the building weren't immediately available. Annual rental income would represent about 4.75 percent of the initial asking price and will grow 3 percent annually, Drivers Jonas said.
Central London offices were the best-performing sector of the U.K. commercial real estate market in the first quarter, as a shortage of available space lifted rents by almost 5 percent for new or freshly refurbished properties, CB Richard Ellis said. In the City of London district, the main financial district, rents have climbed 19 percent to 59 pounds a square foot by the end of March from a year earlier. Sphere: Related Content
Nomura Holdings Inc., Japan's largest securities firm, put its London headquarters building on sale for at least 234 million pounds ($466 million).
Real estate consultant Drivers Jonas said in an e-mailed statement today that it has been hired to sell No.1 St. Martin's Le Grand, an office tower containing 275,000 square feet of space near St. Paul's Cathedral, which Nomura intends to lease back.
Nomura is the latest firm to plan a sale and leaseback of its headquarters to take advantage of escalating prices for office buildings in central London. Spanish real estate company Metrovacesa SA set a record for a single building in the U.K. last month, when it bought HSBC Holdings Plc's Docklands headquarters for 1.09 billion pounds.
Details of Nomura's initial investment in the building weren't immediately available. Annual rental income would represent about 4.75 percent of the initial asking price and will grow 3 percent annually, Drivers Jonas said.
Central London offices were the best-performing sector of the U.K. commercial real estate market in the first quarter, as a shortage of available space lifted rents by almost 5 percent for new or freshly refurbished properties, CB Richard Ellis said. In the City of London district, the main financial district, rents have climbed 19 percent to 59 pounds a square foot by the end of March from a year earlier. Sphere: Related Content
Monday, May 07, 2007
Deutsche Bank Enters $1.18 Billion Sale Leaseback of Manhattan HQ
Commercial Property News - May 4, 2007
The Paramount Group has purchased 60 Wall Street from Deutsche Bank for $1.18 billion in a 15 year sale leaseback agreement. The 47-story, 1.6-million-square-foot building sold for $750 per square foot, a record for lower Manhattan. The sale price is nearly double the $610 million Deutsche Bank paid for the building in 2001. Deutsche Bank will keep its North American headquarters in the 19-year-old building as part of the agreement.
"The sale enables us to redeploy our capital to our operating businesses while realizing an attractive return for our shareholders," a Deutsche Bank spokesperson told CPN today.
The sale of the property is expected to produce a pretax gain of approximately $435 million in 2007. Deutsche Bank's Commercial Real Estate Group is providing financing to Paramount for the transaction. Deutsche Bank Securities Inc. acted as advisor to the bank and CB Richard Ellis Inc. provided real estate consulting services.
Built in 1988 by JP Morgan, it served as that company's headquarters until its merger with Chase. Sphere: Related Content
The Paramount Group has purchased 60 Wall Street from Deutsche Bank for $1.18 billion in a 15 year sale leaseback agreement. The 47-story, 1.6-million-square-foot building sold for $750 per square foot, a record for lower Manhattan. The sale price is nearly double the $610 million Deutsche Bank paid for the building in 2001. Deutsche Bank will keep its North American headquarters in the 19-year-old building as part of the agreement.
"The sale enables us to redeploy our capital to our operating businesses while realizing an attractive return for our shareholders," a Deutsche Bank spokesperson told CPN today.
The sale of the property is expected to produce a pretax gain of approximately $435 million in 2007. Deutsche Bank's Commercial Real Estate Group is providing financing to Paramount for the transaction. Deutsche Bank Securities Inc. acted as advisor to the bank and CB Richard Ellis Inc. provided real estate consulting services.
Built in 1988 by JP Morgan, it served as that company's headquarters until its merger with Chase. Sphere: Related Content
Saturday, May 05, 2007
84 Lumber Completes $200 million Sale Leaseback of 53 Wholesale/Retail Sites
84 Lumber Web Site - May 2, 2007
Spirit Finance Corporation, a real estate investment trust focused on single tenant real estate, today announced that it completed a $200 million sale/leaseback transaction with affiliates of 84 Lumber Company, the nation’s leading privately held materials and services supplier to professional builders.
The acquisition was partially funded with a $150 million long-term fixed-rate mortgage note financed through Barclays Capital Real Estate Inc. and secured by the real estate assets acquired. Spirit purchased 53 wholesale/retail lumber sales and supply centers and one truss manufacturing plant. A subsidiary of 84 Lumber Company has agreed to lease the properties for an initial period of 20 years, subject to a master lease with a multi-windowed purchase option and multiple renewal options. Sphere: Related Content
Spirit Finance Corporation, a real estate investment trust focused on single tenant real estate, today announced that it completed a $200 million sale/leaseback transaction with affiliates of 84 Lumber Company, the nation’s leading privately held materials and services supplier to professional builders.
The acquisition was partially funded with a $150 million long-term fixed-rate mortgage note financed through Barclays Capital Real Estate Inc. and secured by the real estate assets acquired. Spirit purchased 53 wholesale/retail lumber sales and supply centers and one truss manufacturing plant. A subsidiary of 84 Lumber Company has agreed to lease the properties for an initial period of 20 years, subject to a master lease with a multi-windowed purchase option and multiple renewal options. Sphere: Related Content
Thursday, May 03, 2007
HSBC Completes $2.2 Billion Sale Leaseback of London HQ
Bloomberg - April 30, 2007
The London headquarters of HSBC Holdings Plc, Europe's largest bank by market value, was bought by Spanish real estate company Metrovacesa SA for 1.09 billion pounds ($2.2 billion), a record for a U.K. building.
HSBC will remain in the 45-story tower at 8 Canada Square, in the Canary Wharf business district, according to a statement today. About 8,000 people work in the building, which was designed by Norman Foster and has 1.1 million square feet of space.
"People are prepared to pay a premium to get into the London market, even when some are calling the top of the market," said Sarah Bate, head of central London research at Knight Frank LLP.
Central London is now the world's most expensive city in which to lease an office and, according to an estimate by Bate, investors bought a record 15.3 billion pounds of properties in the area last year. A shortage of space is pushing up rents as financial-services firms hire more people.
The previous record for the acquisition of a U.K. office building was the 690 million pounds paid in 2003 by Royal Bank of Scotland Plc for Citigroup Inc.'s London headquarters. That property is on the opposite side of the same square at Canary Wharf development as the HSBC Tower.
HSBC agreed to sell and lease back the building from Madrid-based Metrovacesa for the next 20 years, paying an initial annual rent of 43.5 million pounds, or 3.99 percent of the purchase price. HSBC's long-term debt is rated Aa2 by Moody's Investors Service and AA- by Standard & Poor's.
Rents for new or freshly renovated offices in the City of London district, London's main financial services center, last year rose by more than 18 percent to 55 pounds a square foot, according to Knight Frank.
Merrill Lynch & Co. Inc., the world's biggest brokerage, is considering a sale and leaseback of its London headquarters building to take advantage of record property prices in the city. GIC Real Estate Private Ltd., the real estate investment arm of the Government of Singapore, may buy the building for about 600 million pounds, the Financial Times reported earlier this month. Neither Merrill Lynch nor GIC would comment on the report.
In February, the London office tower dubbed ``the Gherkin'' was bought by IVG Immobilien AG and Evans Randall Investment Management Ltd. for 600 million pounds. The Gherkin was also designed by Foster.
CB Richard Ellis Inc. and Freshfields LLC advised HSBC on the sale of the property. Sphere: Related Content
The London headquarters of HSBC Holdings Plc, Europe's largest bank by market value, was bought by Spanish real estate company Metrovacesa SA for 1.09 billion pounds ($2.2 billion), a record for a U.K. building.
HSBC will remain in the 45-story tower at 8 Canada Square, in the Canary Wharf business district, according to a statement today. About 8,000 people work in the building, which was designed by Norman Foster and has 1.1 million square feet of space.
"People are prepared to pay a premium to get into the London market, even when some are calling the top of the market," said Sarah Bate, head of central London research at Knight Frank LLP.
Central London is now the world's most expensive city in which to lease an office and, according to an estimate by Bate, investors bought a record 15.3 billion pounds of properties in the area last year. A shortage of space is pushing up rents as financial-services firms hire more people.
The previous record for the acquisition of a U.K. office building was the 690 million pounds paid in 2003 by Royal Bank of Scotland Plc for Citigroup Inc.'s London headquarters. That property is on the opposite side of the same square at Canary Wharf development as the HSBC Tower.
HSBC agreed to sell and lease back the building from Madrid-based Metrovacesa for the next 20 years, paying an initial annual rent of 43.5 million pounds, or 3.99 percent of the purchase price. HSBC's long-term debt is rated Aa2 by Moody's Investors Service and AA- by Standard & Poor's.
Rents for new or freshly renovated offices in the City of London district, London's main financial services center, last year rose by more than 18 percent to 55 pounds a square foot, according to Knight Frank.
Merrill Lynch & Co. Inc., the world's biggest brokerage, is considering a sale and leaseback of its London headquarters building to take advantage of record property prices in the city. GIC Real Estate Private Ltd., the real estate investment arm of the Government of Singapore, may buy the building for about 600 million pounds, the Financial Times reported earlier this month. Neither Merrill Lynch nor GIC would comment on the report.
In February, the London office tower dubbed ``the Gherkin'' was bought by IVG Immobilien AG and Evans Randall Investment Management Ltd. for 600 million pounds. The Gherkin was also designed by Foster.
CB Richard Ellis Inc. and Freshfields LLC advised HSBC on the sale of the property. Sphere: Related Content
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