ADVFN News / Thomson Financial - August 8, 2008
Bayerische Hypo-und-Vereinsbank (HVB), the German unit of UniCredit Spa, is looking for buyers of its estimated 200 branch building under a sale and leaseback deal arrangement, according to Financial Times Deutschland, citing a spokesman for HVB.
It said HVB wants to sell its building properties, including those housing the main administration offices in Munich and Hamburg, to some real estate investors.
It said HVB wants to generate a mid-range three-digit million euros proceeds and is aiming to complete the deal by the end of the year.
Sphere: Related Content
Sunday, August 10, 2008
Friday, August 08, 2008
Northrup Grumman Signs Long Term Lease For Office Tower in El Sugundo, CA
Cityfeet / GlobeSt.com - August 6, 2008
Northrop Grumman Corp. has signed a 10-year, $120 million lease for all 333,000 sf at the 16-story, 101 Continental Blvd. office tower in one of the largest office leases in El Segundo in years. Although others involved in the deal declined to comment, citing confidentiality agreements, Northrop spokesman Brooks McKinney confirms that the aerospace giant will be expanding into the 101 Continental building, which is owned by Los Angeles-based Barker Pacific Group and Prudential Real Estate Investors.
Northrop Grumman is expected to begin moving into the building in phases, beginning in early December, and should fully occupy the building by July of next year. Xerox Corp. has leased space in the building since 1983 and still occupies a portion of the 16-story tower, which was built in 1972 and formerly was known as Xerox Centre. Xerox is slated to move out of its remaining space before the move-in by Northrop Grumman.
According to a report last year on GlobeSt.com, the owners of the 101 Continental building were marketing it as a multi-tenant property, rather than the single-tenant facility that it will be when Northrop Grumman moves in. Barker Pacific Group at the time said that it planned a $30 million renovation of the office tower to transform it to class A multi-tenant space, but how much of the $30 million in renovations will be necessary remains in question now that the office tower will be a single-tenant facility as opposed to multi-tenant.
McKinney tells GlobeSt.com that Northrop Grumman needs the 333,000 sf at 101 Continental for expansion of its Integrated Systems and Information Technology sectors, plus some space for corporate office administrative and engineering support functions. The aerospace giant has been growing of late, reporting a year-over-year earnings increase to $483 million from $472 million and a revenue boost of 10% to $8.6 billion for the second quarter ended June 30. Sphere: Related Content
Northrop Grumman Corp. has signed a 10-year, $120 million lease for all 333,000 sf at the 16-story, 101 Continental Blvd. office tower in one of the largest office leases in El Segundo in years. Although others involved in the deal declined to comment, citing confidentiality agreements, Northrop spokesman Brooks McKinney confirms that the aerospace giant will be expanding into the 101 Continental building, which is owned by Los Angeles-based Barker Pacific Group and Prudential Real Estate Investors.
Northrop Grumman is expected to begin moving into the building in phases, beginning in early December, and should fully occupy the building by July of next year. Xerox Corp. has leased space in the building since 1983 and still occupies a portion of the 16-story tower, which was built in 1972 and formerly was known as Xerox Centre. Xerox is slated to move out of its remaining space before the move-in by Northrop Grumman.
According to a report last year on GlobeSt.com, the owners of the 101 Continental building were marketing it as a multi-tenant property, rather than the single-tenant facility that it will be when Northrop Grumman moves in. Barker Pacific Group at the time said that it planned a $30 million renovation of the office tower to transform it to class A multi-tenant space, but how much of the $30 million in renovations will be necessary remains in question now that the office tower will be a single-tenant facility as opposed to multi-tenant.
McKinney tells GlobeSt.com that Northrop Grumman needs the 333,000 sf at 101 Continental for expansion of its Integrated Systems and Information Technology sectors, plus some space for corporate office administrative and engineering support functions. The aerospace giant has been growing of late, reporting a year-over-year earnings increase to $483 million from $472 million and a revenue boost of 10% to $8.6 billion for the second quarter ended June 30. Sphere: Related Content
Sunday, July 20, 2008
C&S Wholesale Grocers Completes $49 Million Sale leaseback of Distribution Center Near Birmingham
Birmingham Business Journal - July 18, 2008
Bruno's Supermarkets' food distributor C&S Wholesale Grocers recently sold its distribution facility in Oxmoor Valley to a real estate investment trust for nearly $49 million in a sale leaseback transaction.
Illinois-based Inland American Real Estate Trust Inc. purchased the 1.3 million-square-foot distribution facility and leased the facility back to New Hampshire-based C&S for 15 years.
Ogden Deaton with Birmingham's Graham & Co. Inc. brokered the deal along with CB Richard Ellis out of New Hampshire. Sphere: Related Content
Bruno's Supermarkets' food distributor C&S Wholesale Grocers recently sold its distribution facility in Oxmoor Valley to a real estate investment trust for nearly $49 million in a sale leaseback transaction.
Illinois-based Inland American Real Estate Trust Inc. purchased the 1.3 million-square-foot distribution facility and leased the facility back to New Hampshire-based C&S for 15 years.
Ogden Deaton with Birmingham's Graham & Co. Inc. brokered the deal along with CB Richard Ellis out of New Hampshire. Sphere: Related Content
Sunday, July 13, 2008
Indonesia Planning $2.01 Billion Sale Leaseback of Finance Ministry Land and Property
Reuters - July 11, 2008
An Indonesian parliamentary working committee approved the government's plan to issue Islamic bonds, also known as sukuk, late on Thursday, clearing the way for issuance in the domestic and global market this year. Here are some details about the sukuk.
* currency: rupiah-denominated sukuk to be sold in the domestic market and dollar-denominated sukuk abroad.
* timetable: August for the domestic issue and October for the international sukuk.
* underlying assets: 18.371 trillion rupiah ($2.01 billion) of finance ministry land and property assets will back the bonds.
* proceeds: will be used to finance the state budget.
* structure of contract: Ijarah sale-and-leaseback, where the sukuk is backed by the purchase, sale or lease of physical properties.
* maturity: the government can set the debt maturity and has previously said it is looking to borrow for seven to 10 years.
* return: fixed coupon rate
* the parliamentary working commission also approved the government's plans to issue the following instruments: long-term sukuk Al Ijarah, retail sukuk, Islamic treasury bills, sukuk for project financing, and exchangeable sukuk. ($1=9,154 rupiah) Sphere: Related Content
An Indonesian parliamentary working committee approved the government's plan to issue Islamic bonds, also known as sukuk, late on Thursday, clearing the way for issuance in the domestic and global market this year. Here are some details about the sukuk.
* currency: rupiah-denominated sukuk to be sold in the domestic market and dollar-denominated sukuk abroad.
* timetable: August for the domestic issue and October for the international sukuk.
* underlying assets: 18.371 trillion rupiah ($2.01 billion) of finance ministry land and property assets will back the bonds.
* proceeds: will be used to finance the state budget.
* structure of contract: Ijarah sale-and-leaseback, where the sukuk is backed by the purchase, sale or lease of physical properties.
* maturity: the government can set the debt maturity and has previously said it is looking to borrow for seven to 10 years.
* return: fixed coupon rate
* the parliamentary working commission also approved the government's plans to issue the following instruments: long-term sukuk Al Ijarah, retail sukuk, Islamic treasury bills, sukuk for project financing, and exchangeable sukuk. ($1=9,154 rupiah) Sphere: Related Content
Thursday, July 10, 2008
Deutsche Post Completes €1 Billion Sale Leaseback of 1,267 Postal Properties Across Germany
Property Week - July 8, 2008
Lone Star has raised more than €700m (£556m) of bank finance for its €1bn (£795m) purchase of a Deutsche Post property portfolio in Germany.
Lone Star sealed the financing for the sale & leaseback with banks Eurohypo, Natixis, DekaBank and Societe Generale, yesterday. It provided the remaining €300m (£238m) itself.
The fundraising comes after the global private equity investor and fund manager agreed a deal to buy the 1,267 strong portfolio in April in the biggest commercial property deal seen in Germany this year. The deal was struck on behalf of its Lone Star Real Estate Fund.
The portfolio is split 70% mixed-use properties and 30% logistics properties and development sites. The mixed-use properties typically comprise ground floor retail with offices and residential space on top and are 16,000 sq ft in size on average.
The portfolio is spread across Germany with many of the properties in small town centres although some are in the suburbs of major cities such as Munich and Hamburg. The unexpired lease lengths in the portfolio vary from two to ten years.
Knight Frank advised Lone Star and Morgan Stanley advised Deutsche Post. Sphere: Related Content
Lone Star has raised more than €700m (£556m) of bank finance for its €1bn (£795m) purchase of a Deutsche Post property portfolio in Germany.
Lone Star sealed the financing for the sale & leaseback with banks Eurohypo, Natixis, DekaBank and Societe Generale, yesterday. It provided the remaining €300m (£238m) itself.
The fundraising comes after the global private equity investor and fund manager agreed a deal to buy the 1,267 strong portfolio in April in the biggest commercial property deal seen in Germany this year. The deal was struck on behalf of its Lone Star Real Estate Fund.
The portfolio is split 70% mixed-use properties and 30% logistics properties and development sites. The mixed-use properties typically comprise ground floor retail with offices and residential space on top and are 16,000 sq ft in size on average.
The portfolio is spread across Germany with many of the properties in small town centres although some are in the suburbs of major cities such as Munich and Hamburg. The unexpired lease lengths in the portfolio vary from two to ten years.
Knight Frank advised Lone Star and Morgan Stanley advised Deutsche Post. Sphere: Related Content
Tuesday, July 08, 2008
Gilat Satellite Networks Seeking $70 Million Sale Leaseback of Two Office Building in Israel
Globes - July 6, 2008
Sources inform "Globes" that Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) wants to sell its two office buildings for $70-80 million in sell and lease-back deals. The two properties are located in Kiryat Arie in Petah Tikva. The sources added that it has contacted Israel's top insurance companies -- Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) -- about a deal.
The VSAT satellite communications equipment maker and services provider owns two of the four building in the Daniv Park in Kiryat Arie, which were built by Denisra International Ltd. in the late 1990s. Gilat purchased two of the buildings for its own use. Gilat is about to be sold to a consortia led by Gores Group LLC and Mivtach Shamir Holdings Ltd. (TASE:MISH). Sphere: Related Content
Sources inform "Globes" that Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) wants to sell its two office buildings for $70-80 million in sell and lease-back deals. The two properties are located in Kiryat Arie in Petah Tikva. The sources added that it has contacted Israel's top insurance companies -- Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL), and Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) -- about a deal.
The VSAT satellite communications equipment maker and services provider owns two of the four building in the Daniv Park in Kiryat Arie, which were built by Denisra International Ltd. in the late 1990s. Gilat purchased two of the buildings for its own use. Gilat is about to be sold to a consortia led by Gores Group LLC and Mivtach Shamir Holdings Ltd. (TASE:MISH). Sphere: Related Content
Friday, July 04, 2008
Barclays Completes EUR 65 Million Sale Leaseback of 24 Properties in Spain
Property Week - July 2, 2008
Redevco, the Dutch property company, has bought 24 Barclays banks for €65m (£51.5m).
The 24 banks and commercial buildings have been bought on a purchase and leaseback basis with Barclays on long term leases. The properties are located in prime retail high streets in nine Spanish cities including Madrid, Barcelona, Seville, Málaga, Vigo and Alicante.
Jones Lang LaSalle acted as intermediary in the deal. Redevco is part of a stable of companies owned by the family that founded retailer C&A. Sphere: Related Content
Redevco, the Dutch property company, has bought 24 Barclays banks for €65m (£51.5m).
The 24 banks and commercial buildings have been bought on a purchase and leaseback basis with Barclays on long term leases. The properties are located in prime retail high streets in nine Spanish cities including Madrid, Barcelona, Seville, Málaga, Vigo and Alicante.
Jones Lang LaSalle acted as intermediary in the deal. Redevco is part of a stable of companies owned by the family that founded retailer C&A. Sphere: Related Content
Thursday, July 03, 2008
AT&T Completes $285 Million Sale Leaseback of Lindbergh Center in Atlanta
Atlanta Business Chronicle - July 1, 2008
Wells Real Estate Investment Trust II has acquired Lindbergh Center in Atlanta's Buckhead submarket in a sale-leaseback from AT&T Inc.
Financial terms were not released.
Lindbergh Center has twin 14-story, class-A office buildings connected by a four-story atrium, totaling 955,000 square feet. It is at Piedmont Road and Lindbergh Drive, next to MARTA's Lindbergh station. The development is part of Lindbergh City Center, a 47-acre live/work/play development.
AT&T Services Inc. will continue to occupy 100 percent of the property under a new lease from Wells through 2020.
The deal marks Norcross, Ga.-based Wells REIT II's second recent acquisition from AT&T (NYSE: T) in Buckhead. In May, it bought a five-building, 1-million-square-foot office campus in Buckhead through a sale-leaseback.
"We said a month ago it was rare to acquire a million square feet of prime office property, fully leased to a world-class tenant, in the top submarket of a top-10 city," said Don Henry, chief real estate officer of Wells Real Estate Funds. "A month later, we've done it again."
(Note: SEC filing dated August 21, 2008 indicates a purchase price of $285 million and an initial annual rent of $19.9 million for an initial cap rate of approximately 7.0%.) Sphere: Related Content
Wells Real Estate Investment Trust II has acquired Lindbergh Center in Atlanta's Buckhead submarket in a sale-leaseback from AT&T Inc.
Financial terms were not released.
Lindbergh Center has twin 14-story, class-A office buildings connected by a four-story atrium, totaling 955,000 square feet. It is at Piedmont Road and Lindbergh Drive, next to MARTA's Lindbergh station. The development is part of Lindbergh City Center, a 47-acre live/work/play development.
AT&T Services Inc. will continue to occupy 100 percent of the property under a new lease from Wells through 2020.
The deal marks Norcross, Ga.-based Wells REIT II's second recent acquisition from AT&T (NYSE: T) in Buckhead. In May, it bought a five-building, 1-million-square-foot office campus in Buckhead through a sale-leaseback.
"We said a month ago it was rare to acquire a million square feet of prime office property, fully leased to a world-class tenant, in the top submarket of a top-10 city," said Don Henry, chief real estate officer of Wells Real Estate Funds. "A month later, we've done it again."
(Note: SEC filing dated August 21, 2008 indicates a purchase price of $285 million and an initial annual rent of $19.9 million for an initial cap rate of approximately 7.0%.) Sphere: Related Content
Wednesday, July 02, 2008
HSBC May Unwind £1.1 Billion Sale Leaseback of Canary Wharf HQ
This is Money - June 29, 2008
HSBC is believed to have approached potential buyers for its skyscraper head office in London's Canary Wharf amid fears it might have to repossess the building from the Spanish property group that paid a record £1.1bn for it last year.
Metrovacesa, Spain's largest property company, is trying to refinance the £810m of short-term debt it took out with HSBC to buy 8 Canada Square, in what was Britain's biggest single building sale. Although the loan runs until November, Metrovacesa and the banking giant are thought to have wanted to thrash out a refinancing by the end of this month.
However, with lenders having shut up shop in the credit crunch, borrowings are hard to find.
If Metrovacesa, controlled by the Sanahuja family, cannot refinance, HSBC may take back possession of the 42-storey tower - its global headquarters since 2002. In recent weeks it has made approaches to possible buyers, including sovereign wealth funds.
If HSBC, which has been under attack from investment company Knight Vinke over its troubled US business, repossesses the building, it will be keen to sell it on quickly.
However, the appetite for major property deals has dried up and the bank's advances have been snubbed by at least one potential buyer. A spokesman for HSBC declined to comment. Under the terms of the deal with Metrovacesa, HSBC agreed to lease back the building for 20 years at an annual rent of £43.5m with an option to extend for a further five years.
In Metrovacesa's accounts for last year it had written down the value of the building to £1bn. The Sanahujas, who started their property empire in the Seventies in Barcelona, fought a tough battle for control of Metrovacesa in 2006. Sphere: Related Content
HSBC is believed to have approached potential buyers for its skyscraper head office in London's Canary Wharf amid fears it might have to repossess the building from the Spanish property group that paid a record £1.1bn for it last year.
Metrovacesa, Spain's largest property company, is trying to refinance the £810m of short-term debt it took out with HSBC to buy 8 Canada Square, in what was Britain's biggest single building sale. Although the loan runs until November, Metrovacesa and the banking giant are thought to have wanted to thrash out a refinancing by the end of this month.
However, with lenders having shut up shop in the credit crunch, borrowings are hard to find.
If Metrovacesa, controlled by the Sanahuja family, cannot refinance, HSBC may take back possession of the 42-storey tower - its global headquarters since 2002. In recent weeks it has made approaches to possible buyers, including sovereign wealth funds.
If HSBC, which has been under attack from investment company Knight Vinke over its troubled US business, repossesses the building, it will be keen to sell it on quickly.
However, the appetite for major property deals has dried up and the bank's advances have been snubbed by at least one potential buyer. A spokesman for HSBC declined to comment. Under the terms of the deal with Metrovacesa, HSBC agreed to lease back the building for 20 years at an annual rent of £43.5m with an option to extend for a further five years.
In Metrovacesa's accounts for last year it had written down the value of the building to £1bn. The Sanahujas, who started their property empire in the Seventies in Barcelona, fought a tough battle for control of Metrovacesa in 2006. Sphere: Related Content
Fortis Enters EUR 94 Million Sale Leaseback of Two Office Buildings in Belgium
PropertyEU - June 30, 2008
Belgian property group Befimmo said it has acquired two buildings in Belgium from Fortis Bank for an overall purchase price of EUR 94mln.
The first building is located in Antwerp and comprises two technically independent wings over a total 21,253 m2. The Meir wing is a classic-style building let entirely to Fortis Bank for a term of 27 years while the Wapper wing is a contemporary building used as offices and a bank branch, whichis also let entirely to Fortis Bank for a term of 18 years. The other building is situated at Vital Decosterstraat 42-44 in Leuven and is three-quarters let to Fortis Bank on leases of 12 and 15 years. The rest of the second building is let to other tenants.
For Belgian-Dutch financial services group Fortis, the transaction came as it raised EUR 1.5bn through the issue of new shares and announced a number of other measures to shore up its finances. Fortis said these would also include a total of EUR 1.5bn in sale-and-leaseback transactions of real estate like the deal that was announced with Befimmo. Sphere: Related Content
Belgian property group Befimmo said it has acquired two buildings in Belgium from Fortis Bank for an overall purchase price of EUR 94mln.
The first building is located in Antwerp and comprises two technically independent wings over a total 21,253 m2. The Meir wing is a classic-style building let entirely to Fortis Bank for a term of 27 years while the Wapper wing is a contemporary building used as offices and a bank branch, whichis also let entirely to Fortis Bank for a term of 18 years. The other building is situated at Vital Decosterstraat 42-44 in Leuven and is three-quarters let to Fortis Bank on leases of 12 and 15 years. The rest of the second building is let to other tenants.
For Belgian-Dutch financial services group Fortis, the transaction came as it raised EUR 1.5bn through the issue of new shares and announced a number of other measures to shore up its finances. Fortis said these would also include a total of EUR 1.5bn in sale-and-leaseback transactions of real estate like the deal that was announced with Befimmo. Sphere: Related Content
Wednesday, June 25, 2008
Citigroup Seeking $500 Million Sale Leaseback of HQ & Property Portfolio in India
mydigtalfc.com - June 23, 2008
Reeling under the US bad loans crisis, Citigroup will raise around $500 million by selling some real estate properties in India, including its headquarters in Bandra Kurla Complex, Mumbai.
The company has appointed Jones Lang LaSalle Meghraj to do a valuation of the headquarters. It is also selling some corporate offices and prime residential properties in Mumbai, Delhi and Chennai. In Mumbai, it has already liquidated about 8 residential properties in the last one year. Recently, it sold a property here to a Bollywood actor for a whopping Rs 30 crore.
Industry officials said the company plans to sell the BKC headquarters and lease it back. When contacted by Financial Chronicle, chairman and country head of Jones Lang LaSalle Meghraj, Anuj Puri, refused to comment.
While Citibank plans to layoff around 2,000 people globally, its India operations are unlikely to face job cuts. Its investment banking division is growing here, with the firm having appointed Nalin Nayyar, formerly with Lehman Brothers, as a managing director in April.
Citigroup India's headcount has risen to over 22,000 from 21,000 a year earlier. It also hired a new head of mergers and acquisitions, Sameer Nath, who was shifted from Citigroup's US operations.
The company has stopped renting flats to employees. “Since the company plans to sell and lease it back, builders or developers may not be interested. People like high net worth individuals or private equity investors may buy this property,” said an official with IL&FS Property Manage-ment Services, the facilities management arm of IL&FS. Sphere: Related Content
Reeling under the US bad loans crisis, Citigroup will raise around $500 million by selling some real estate properties in India, including its headquarters in Bandra Kurla Complex, Mumbai.
The company has appointed Jones Lang LaSalle Meghraj to do a valuation of the headquarters. It is also selling some corporate offices and prime residential properties in Mumbai, Delhi and Chennai. In Mumbai, it has already liquidated about 8 residential properties in the last one year. Recently, it sold a property here to a Bollywood actor for a whopping Rs 30 crore.
Industry officials said the company plans to sell the BKC headquarters and lease it back. When contacted by Financial Chronicle, chairman and country head of Jones Lang LaSalle Meghraj, Anuj Puri, refused to comment.
While Citibank plans to layoff around 2,000 people globally, its India operations are unlikely to face job cuts. Its investment banking division is growing here, with the firm having appointed Nalin Nayyar, formerly with Lehman Brothers, as a managing director in April.
Citigroup India's headcount has risen to over 22,000 from 21,000 a year earlier. It also hired a new head of mergers and acquisitions, Sameer Nath, who was shifted from Citigroup's US operations.
The company has stopped renting flats to employees. “Since the company plans to sell and lease it back, builders or developers may not be interested. People like high net worth individuals or private equity investors may buy this property,” said an official with IL&FS Property Manage-ment Services, the facilities management arm of IL&FS. Sphere: Related Content
Bank of America Nears $190 Million Sale Leaseback of Chicago Office Tower
Crain's Chicago - June 25, 2008
Bank of America Corp. is close to a deal to sell the former LaSalle Bank Building for roughly $190 million and lease back as much as two-thirds of the 1.2-million-square-foot landmark tower.
The Charlotte, N.C.-based banking giant is in final negotiations to sell the 44-story skyscraper at 135 S. LaSalle St. to New York-based AmTrust Realty Corp., according to sources familiar with the transaction. B of A inherited the Art Deco classic as part of last year’s acquisition of LaSalle Bank’s parent company.
A B of A spokesman confirmed the negotiations with AmTrust but declined to comment on the price. He also declined to comment on how much space the bank would lease, except to say that no jobs would be affected by the deal.
The bank currently occupies about 800,000 square feet in the building, according to real estate research firm CoStar Group Inc.
As a result of the deal, B of A will reduce its occupancy expenses and cut costs by getting out of the property management business for outside tenants, the spokesman said in an e-mail. “This transaction also would free up capital and allow us to continue to reinvest in our businesses,” he said in the e-mail.
B of A has offered to provide a loan to the winning bidder, sources say, a key boost to the deal at a time when many potential transactions are not moving ahead because of the difficulty of obtaining financing.
The deal could close as soon as next month. An executive with Chicago-based real estate firm Jones Lang LaSalle Inc., which is advising B of A in the sale, declined to comment.
The transaction is believed to be the second Chicago acquisition for AmTrust Realty, a low-profile real estate investment firm owned by brothers Michael and George Karfunkel.
In April 2004, Amtrust acquired 33 W. Monroe St., which once housed the headquarters of defunct accounting firm Arthur Andersen LLP. Since then, Amtrust has leased up the 879,000-square-foot building. The vacancy rate has dropped to 10.1%, compared to 67.1% when purchase was made, according to CoStar. Sphere: Related Content
Bank of America Corp. is close to a deal to sell the former LaSalle Bank Building for roughly $190 million and lease back as much as two-thirds of the 1.2-million-square-foot landmark tower.
The Charlotte, N.C.-based banking giant is in final negotiations to sell the 44-story skyscraper at 135 S. LaSalle St. to New York-based AmTrust Realty Corp., according to sources familiar with the transaction. B of A inherited the Art Deco classic as part of last year’s acquisition of LaSalle Bank’s parent company.
A B of A spokesman confirmed the negotiations with AmTrust but declined to comment on the price. He also declined to comment on how much space the bank would lease, except to say that no jobs would be affected by the deal.
The bank currently occupies about 800,000 square feet in the building, according to real estate research firm CoStar Group Inc.
As a result of the deal, B of A will reduce its occupancy expenses and cut costs by getting out of the property management business for outside tenants, the spokesman said in an e-mail. “This transaction also would free up capital and allow us to continue to reinvest in our businesses,” he said in the e-mail.
B of A has offered to provide a loan to the winning bidder, sources say, a key boost to the deal at a time when many potential transactions are not moving ahead because of the difficulty of obtaining financing.
The deal could close as soon as next month. An executive with Chicago-based real estate firm Jones Lang LaSalle Inc., which is advising B of A in the sale, declined to comment.
The transaction is believed to be the second Chicago acquisition for AmTrust Realty, a low-profile real estate investment firm owned by brothers Michael and George Karfunkel.
In April 2004, Amtrust acquired 33 W. Monroe St., which once housed the headquarters of defunct accounting firm Arthur Andersen LLP. Since then, Amtrust has leased up the 879,000-square-foot building. The vacancy rate has dropped to 10.1%, compared to 67.1% when purchase was made, according to CoStar. Sphere: Related Content
Friday, June 20, 2008
MAXIMA Completes EUR 46.6 Million Sale Leaseback of Supermarket Portfolio in Lithuania
PR Inside - June 18, 2008
Re&Solution has acted as a sole advisor of the largest retail chain of food products and manufactured goods in the Baltic States MAXIMA in EUR 46.6 million supermarket portfolio sale and leaseback transaction
The Norwegian investment banking company VERDISPAR, representing its investors through the company VERDISPAR Retail Properties II, has acquired a 26,500 sq. m (285,300 sq. ft.) real estate portfolio from MAXIMA. Verdispar paid LTL 161 million (EUR 46.6 million) for nine supermarkets (MAXIMA X and MAXIMA XX) situated in the largest cities of Lithuania: Vilnius, Kaunas, Klaipeda, Alytus and Siauliai, as well as in Ukmerge and Plunge. MAXIMA will continue to do business in these supermarkets as the chain has signed long-term leaseback contracts with VERDISPAR. The transaction will be formally completed after it is approved by the Competition Council of the Republic of Lithuania.
Mr. Ricardas Cepas, Re&Solution partner said: 'time to buy commercial property in our countries is particularly attractive now. Increased costs of borrowing and significantly tightened credit policy have induced developers to start considering alternative financing opportunities, for example, forward funding or disposing of currently possessed assets. Moreover, quality of investment products has improved substantially compared to for example 2006/2007. The largest shopping centre developers and retail chains have started sales of their assets. The biggest shopping centre, one of the largest logistic hubs is on sale presently; the strongest retail chains consider JV and sale and lease back opportunities; the strongest developers search for development and financial partners. MAXIMA sale and leaseback transaction is an obvious proof of quality of available opportunities, thus we expect that the deal will encourage institutional investors to explore the region and investigate the best investment possibilities ever'.
The transaction was partly financed by SEB and Nordea banks. Sphere: Related Content
Re&Solution has acted as a sole advisor of the largest retail chain of food products and manufactured goods in the Baltic States MAXIMA in EUR 46.6 million supermarket portfolio sale and leaseback transaction
The Norwegian investment banking company VERDISPAR, representing its investors through the company VERDISPAR Retail Properties II, has acquired a 26,500 sq. m (285,300 sq. ft.) real estate portfolio from MAXIMA. Verdispar paid LTL 161 million (EUR 46.6 million) for nine supermarkets (MAXIMA X and MAXIMA XX) situated in the largest cities of Lithuania: Vilnius, Kaunas, Klaipeda, Alytus and Siauliai, as well as in Ukmerge and Plunge. MAXIMA will continue to do business in these supermarkets as the chain has signed long-term leaseback contracts with VERDISPAR. The transaction will be formally completed after it is approved by the Competition Council of the Republic of Lithuania.
Mr. Ricardas Cepas, Re&Solution partner said: 'time to buy commercial property in our countries is particularly attractive now. Increased costs of borrowing and significantly tightened credit policy have induced developers to start considering alternative financing opportunities, for example, forward funding or disposing of currently possessed assets. Moreover, quality of investment products has improved substantially compared to for example 2006/2007. The largest shopping centre developers and retail chains have started sales of their assets. The biggest shopping centre, one of the largest logistic hubs is on sale presently; the strongest retail chains consider JV and sale and lease back opportunities; the strongest developers search for development and financial partners. MAXIMA sale and leaseback transaction is an obvious proof of quality of available opportunities, thus we expect that the deal will encourage institutional investors to explore the region and investigate the best investment possibilities ever'.
The transaction was partly financed by SEB and Nordea banks. Sphere: Related Content
Tuesday, June 17, 2008
Imo Planning £60 million Sale Leaseback of Car Wash Properties Across Europe
Telegraph - June 15, 2008
Carlyle Group is heading for a showdown with debt investors of Imo, the world's biggest car wash company, as the private equity house revealed plans to dipose of the group's property assets to raise more money.
Carlyle, which is nick-named the ex-presidents' club for employing political heavyweights such as James Baker and John Major, has in recent weeks asked the debt investors of Imo to approve of a sale and lease back of car wash sites that would raise £60m. The debt investors are concerned about the proposals since the property is the main collateral for their investment.
One investor said: "This seems to be an effort on the part of Carlyle to use our security rather than put in more equity themselves. It is not satisfactory." Debt holders have been asked to approve the scheme in the next few weeks.
Carlyle wants to raise the additional money to fund an expansion plan of new car wash sites across Europe. The car wash company had a tough year last year after poor weather affected trading. Experts say that people are more likely to get their cars washed when the weather changes. Last year there were long periods of constant rain or sun.
This year the group says business has been strong so far. Even so Carlyle wants to build more sites to ensure a wider catchment area but needs additional funding.
Imo currently owns 900 car wash sites in 14 countries, that wash over 34 million vehicles each year. In the UK, Imo has 300 sites trading as Arc Clean Car Centres. The next biggest presence is in Germany where is has 335, with the remaining sites spread across 12 other countries.
Carlyle bought the group in 1996 from JP Morgan Partners. Previously it was owned by Bridgepoint Capital, which had led a management buy-in in 1998. The company was originally founded in Germany in 1965 and expanded to include sites in the UK, and throughout Europe. Sphere: Related Content
Carlyle Group is heading for a showdown with debt investors of Imo, the world's biggest car wash company, as the private equity house revealed plans to dipose of the group's property assets to raise more money.
Carlyle, which is nick-named the ex-presidents' club for employing political heavyweights such as James Baker and John Major, has in recent weeks asked the debt investors of Imo to approve of a sale and lease back of car wash sites that would raise £60m. The debt investors are concerned about the proposals since the property is the main collateral for their investment.
One investor said: "This seems to be an effort on the part of Carlyle to use our security rather than put in more equity themselves. It is not satisfactory." Debt holders have been asked to approve the scheme in the next few weeks.
Carlyle wants to raise the additional money to fund an expansion plan of new car wash sites across Europe. The car wash company had a tough year last year after poor weather affected trading. Experts say that people are more likely to get their cars washed when the weather changes. Last year there were long periods of constant rain or sun.
This year the group says business has been strong so far. Even so Carlyle wants to build more sites to ensure a wider catchment area but needs additional funding.
Imo currently owns 900 car wash sites in 14 countries, that wash over 34 million vehicles each year. In the UK, Imo has 300 sites trading as Arc Clean Car Centres. The next biggest presence is in Germany where is has 335, with the remaining sites spread across 12 other countries.
Carlyle bought the group in 1996 from JP Morgan Partners. Previously it was owned by Bridgepoint Capital, which had led a management buy-in in 1998. The company was originally founded in Germany in 1965 and expanded to include sites in the UK, and throughout Europe. Sphere: Related Content
Saturday, June 14, 2008
Rexel Completes EUR 62 Million Sale Leaseback of Six Warehouse Distribution Properties in France
Rexel Web Site - June 12, 2008
Rexel France has concluded a sale-and-leaseback agreement with Gecina Group for seven logistics platforms located in specialized logistics hubs on major trunk roads. The transaction is part of the Rexel Group’s strategy of leasing its commercial and logistics sites so as to be able to continuously adapt its real estate portfolio to market evolutions.
This transaction reduces Rexel's debt by 62 million euros, of which 38 million euros were already reflected in the Q1 2008 consolidated balance sheet. The remaining 24 million euros will be accounted for in the Q2 2008 consolidated balance sheet.
These seven logistics platforms, which represent a constructed area of nearly 125,000 m², are located in Nancy (Champigneulles), Lyon (Saint-Vulbas), Marseille (Miramas), Toulouse (Tournefeuille), Nantes (Saint-Herblain), Rouen (Grand-Quevilly) and Orléans (Meung-sur-Loire).
Six of these platforms were leased back by Rexel France under a commercial lease, whilethe Saint-Vulbas platform will be transferred to a new, larger building in the same Plaine del’Ain logistics hub.
Rexel France was advised in this transaction by the property expert Schneider
International and the Field Fisher Waterhouse law firm. Sphere: Related Content
Rexel France has concluded a sale-and-leaseback agreement with Gecina Group for seven logistics platforms located in specialized logistics hubs on major trunk roads. The transaction is part of the Rexel Group’s strategy of leasing its commercial and logistics sites so as to be able to continuously adapt its real estate portfolio to market evolutions.
This transaction reduces Rexel's debt by 62 million euros, of which 38 million euros were already reflected in the Q1 2008 consolidated balance sheet. The remaining 24 million euros will be accounted for in the Q2 2008 consolidated balance sheet.
These seven logistics platforms, which represent a constructed area of nearly 125,000 m², are located in Nancy (Champigneulles), Lyon (Saint-Vulbas), Marseille (Miramas), Toulouse (Tournefeuille), Nantes (Saint-Herblain), Rouen (Grand-Quevilly) and Orléans (Meung-sur-Loire).
Six of these platforms were leased back by Rexel France under a commercial lease, whilethe Saint-Vulbas platform will be transferred to a new, larger building in the same Plaine del’Ain logistics hub.
Rexel France was advised in this transaction by the property expert Schneider
International and the Field Fisher Waterhouse law firm. Sphere: Related Content
Friday, June 13, 2008
Nomura Agrees to £235 Million Sale Leaseback of London HQ
Property Week - June 13, 2008
Fund managers IVG Asticus and AAIM are under offer to buy Nomura House at 1 St Martin’s Le Grand in the City of London. The two parties have a two-week timetable in which to complete on the 275,000 sq ft building and lease it back to Japanese bank Nomura for around £235m at a yield of around 5%. Drivers Jonas advises Nomura.
All parties declined to comment. Sphere: Related Content
Fund managers IVG Asticus and AAIM are under offer to buy Nomura House at 1 St Martin’s Le Grand in the City of London. The two parties have a two-week timetable in which to complete on the 275,000 sq ft building and lease it back to Japanese bank Nomura for around £235m at a yield of around 5%. Drivers Jonas advises Nomura.
All parties declined to comment. Sphere: Related Content
Thursday, June 12, 2008
Dine Equity Completes $337 Million Sale Leaseback of 181 Appleby's Restaurants
SEC Edgar Web Site - June 19, 2008
On June 13, 2008, Applebee’s Restaurants Kansas LLC, Applebee’s Restaurants Mid-Atlantic LLC, Applebee’s Restaurants North LLC, Applebee’s Restaurants Texas LLC, and Applebee’s Restaurants West LLC (collectively the “Tenant”) entered into a Master Land and Building Lease (the “Master Lease”) with DBAPPLEF, LLC (the “Landlord”) relating to 181 parcels of real property, each of which is improved with a restaurant operating as an Applebee’s Neighborhood Grill and Bar (the “Properties”).
The Master Lease calls for an initial term of twenty years and four five-year options to extend the term which are exercisable by the Tenant or its successors. The initial monthly base rent under the Master Lease will be $2,612,916.66. The initial monthly base rent is subject to a 2% increase on each of the following dates: January 1, 2009; July 1, 2010; July 1, 2011; July 1, 2012; and July 1, 2013. Thereafter, the monthly base rent shall increase by ten percent (10%) of the monthly base rent preceding such increase in base rent on each of July 1, 2018 and July 1, 2023. The Master Lease provides for rent adjustments during each of the option periods as well. Additionally, the tenant under the Master Lease is responsible for additional rent equal to any and all fees, expenses, taxes and other charges of every kind and nature arising in connection with or relating to the Properties.
The Tenant may sublease all or a portion of the Properties, without the Landlord’s consent, provided that certain conditions are met. In addition, the Tenant may assign its interest in the Master Lease with respect to some or all of the Properties, without Landlord’s consent, provided that certain conditions are met and the assignee agrees to enter into a direct lease with the Landlord on a pre-approved form attached to the Master Lease (“Assigned Leases”). Further, if such assignment is to a qualified franchisee meeting certain parameters set forth in the Master Lease, the Tenant shall be released by the Landlord from all obligations with respect to any Assigned Lease.
(Note: Transaction reflects an initial cap rate of approximately 9.3%.) Sphere: Related Content
On June 13, 2008, Applebee’s Restaurants Kansas LLC, Applebee’s Restaurants Mid-Atlantic LLC, Applebee’s Restaurants North LLC, Applebee’s Restaurants Texas LLC, and Applebee’s Restaurants West LLC (collectively the “Tenant”) entered into a Master Land and Building Lease (the “Master Lease”) with DBAPPLEF, LLC (the “Landlord”) relating to 181 parcels of real property, each of which is improved with a restaurant operating as an Applebee’s Neighborhood Grill and Bar (the “Properties”).
The Master Lease calls for an initial term of twenty years and four five-year options to extend the term which are exercisable by the Tenant or its successors. The initial monthly base rent under the Master Lease will be $2,612,916.66. The initial monthly base rent is subject to a 2% increase on each of the following dates: January 1, 2009; July 1, 2010; July 1, 2011; July 1, 2012; and July 1, 2013. Thereafter, the monthly base rent shall increase by ten percent (10%) of the monthly base rent preceding such increase in base rent on each of July 1, 2018 and July 1, 2023. The Master Lease provides for rent adjustments during each of the option periods as well. Additionally, the tenant under the Master Lease is responsible for additional rent equal to any and all fees, expenses, taxes and other charges of every kind and nature arising in connection with or relating to the Properties.
The Tenant may sublease all or a portion of the Properties, without the Landlord’s consent, provided that certain conditions are met. In addition, the Tenant may assign its interest in the Master Lease with respect to some or all of the Properties, without Landlord’s consent, provided that certain conditions are met and the assignee agrees to enter into a direct lease with the Landlord on a pre-approved form attached to the Master Lease (“Assigned Leases”). Further, if such assignment is to a qualified franchisee meeting certain parameters set forth in the Master Lease, the Tenant shall be released by the Landlord from all obligations with respect to any Assigned Lease.
(Note: Transaction reflects an initial cap rate of approximately 9.3%.) Sphere: Related Content
Sunday, June 08, 2008
Volkswagen of America HQ Near Washington, DC Sold
Washington Business Journal - June 6, 2008
A German investment firm has purchased the local headquarters of Volkswagen of America Inc.
Union Investment Real Estate AG, a Hamburg-based investment management company, bought the Tishman Speyer-owned property, known as Woodland Pointe, for an undisclosed amount.
The 184,787-square-foot Class A property has been valued at $100 million. Last fall, Volkswagen signed a 15-year net lease to move its headquarters from Michigan this year. New York-based Tishman Speyer delivered the six-story building in January.
It is expected to be fully occupied by the end of the year, also housing the U.S. headquarters for Audi of America Inc., Audi Financial Services, Volkswagen Credit and other affiliated operations.
Union Investment Real Estate made the purchase due to the property's tenants, the proximity to Dulles International Airport and its visibility along the Dulles Toll Road, said Zeb Bradford, managing director of Metzler, Union Investment's real estate adviser in the U.S. The buyer made the acquisition for UniImmo, its global open-ended real estate fund.
Union Investment Real Estate is planning several other strategic acquisitions in the D.C. area this year, according to Bradford.
Tishman Speyer will continue to manage Woodland Pointe, which is located among 1.7 million square feet of office space in Woodland Park. Roy Bajtel, head of Union Investment's New York City office, represented the company in the negotiations. Drew Flood and Bill Collins of Cassidy Pinkard and Colliers brokered the deal. Sphere: Related Content
A German investment firm has purchased the local headquarters of Volkswagen of America Inc.
Union Investment Real Estate AG, a Hamburg-based investment management company, bought the Tishman Speyer-owned property, known as Woodland Pointe, for an undisclosed amount.
The 184,787-square-foot Class A property has been valued at $100 million. Last fall, Volkswagen signed a 15-year net lease to move its headquarters from Michigan this year. New York-based Tishman Speyer delivered the six-story building in January.
It is expected to be fully occupied by the end of the year, also housing the U.S. headquarters for Audi of America Inc., Audi Financial Services, Volkswagen Credit and other affiliated operations.
Union Investment Real Estate made the purchase due to the property's tenants, the proximity to Dulles International Airport and its visibility along the Dulles Toll Road, said Zeb Bradford, managing director of Metzler, Union Investment's real estate adviser in the U.S. The buyer made the acquisition for UniImmo, its global open-ended real estate fund.
Union Investment Real Estate is planning several other strategic acquisitions in the D.C. area this year, according to Bradford.
Tishman Speyer will continue to manage Woodland Pointe, which is located among 1.7 million square feet of office space in Woodland Park. Roy Bajtel, head of Union Investment's New York City office, represented the company in the negotiations. Drew Flood and Bill Collins of Cassidy Pinkard and Colliers brokered the deal. Sphere: Related Content
Monday, June 02, 2008
Kesko Completes EUR 31 Million Sale Leaseback of HQ & Logistics Property in Finland
Kesko Web Site - May 30, 2008
Kesko Corporation and the Kesko Pension Fund have sold the office and logistics property located at Tikkurilantie 10, Hakkila, Vantaa, to Aberdeen Real Estate Fund Finland in a transaction closed today. The price paid by the fund to Kesko and the Kesko Pension Fund totals about €31 million, of which Kesko´s share is about €10 million. The Kesko Group recognises a gain of about €4 million on the disposal, which will be reported as a non-recurring item in Rautakesko´s profit for the second quarter.
Rautakesko will continue as the principal user of the premises under a long-term lease. Approximately half of the premises have been leased to logistics companies outside Kesko. Premises not used by Kesko are not included in the leaseback system and the buyer will be responsible for them in the future. The total lease area of the property is about 26,000 m².
'The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds will be used to strengthen the store network in Finland and abroad,' says Kesko´s Arja Talma, Senior Vice President, CFO. Sphere: Related Content
Kesko Corporation and the Kesko Pension Fund have sold the office and logistics property located at Tikkurilantie 10, Hakkila, Vantaa, to Aberdeen Real Estate Fund Finland in a transaction closed today. The price paid by the fund to Kesko and the Kesko Pension Fund totals about €31 million, of which Kesko´s share is about €10 million. The Kesko Group recognises a gain of about €4 million on the disposal, which will be reported as a non-recurring item in Rautakesko´s profit for the second quarter.
Rautakesko will continue as the principal user of the premises under a long-term lease. Approximately half of the premises have been leased to logistics companies outside Kesko. Premises not used by Kesko are not included in the leaseback system and the buyer will be responsible for them in the future. The total lease area of the property is about 26,000 m².
'The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds will be used to strengthen the store network in Finland and abroad,' says Kesko´s Arja Talma, Senior Vice President, CFO. Sphere: Related Content
Brocade Communications Considering Sale Leaseback of $223 Million HQ in San Jose
Cityfeet.com / GlobeSt.com - May 29, 2008
Brocade Communications is spending approximately $223 million on a new headquarters office complex on North First Street. The locally based public company currently keeps its headquarters at 1745 Technology Dr. on a lease that runs out in the middle of 2010.
In an SEC filing this week the provider of datacenter networking solutions says it purchased three unimproved building parcels from MFP/Hunter@First Office Partners LLC for $50.9 million. It retained an affiliate of the seller to develop three office buildings totaling 562,000 sf for an additional $173 million that will be paid in installments over the next 27 months.
The new campus will consist of two seven-story buildings and one four-story building and will have a capacity of approximately 2,200 people, allowing the company to consolidate not only its headquarters at 1745 Technology Dr. but also a building it owns several blocks away at Skyport Plaza. Brocade’s two existing local buildings total about 400,000 sf, a company source tells GlobeSt.com.
With regard to the decision to buy or lease, a company source tells GlobeSt.com that the company evaluated both kinds of transactions and “found that this was very fiscally responsible and met our needs.”
Depending on the market or other circumstances, Brocade may evaluate entering into a sale-leaseback transaction with respect to the property and buildings at a future date, according to SEC documents. As part of the deal the company also obtained a four-year option to take down a fourth parcel totaling four acres for $26 million. Sphere: Related Content
Brocade Communications is spending approximately $223 million on a new headquarters office complex on North First Street. The locally based public company currently keeps its headquarters at 1745 Technology Dr. on a lease that runs out in the middle of 2010.
In an SEC filing this week the provider of datacenter networking solutions says it purchased three unimproved building parcels from MFP/Hunter@First Office Partners LLC for $50.9 million. It retained an affiliate of the seller to develop three office buildings totaling 562,000 sf for an additional $173 million that will be paid in installments over the next 27 months.
The new campus will consist of two seven-story buildings and one four-story building and will have a capacity of approximately 2,200 people, allowing the company to consolidate not only its headquarters at 1745 Technology Dr. but also a building it owns several blocks away at Skyport Plaza. Brocade’s two existing local buildings total about 400,000 sf, a company source tells GlobeSt.com.
With regard to the decision to buy or lease, a company source tells GlobeSt.com that the company evaluated both kinds of transactions and “found that this was very fiscally responsible and met our needs.”
Depending on the market or other circumstances, Brocade may evaluate entering into a sale-leaseback transaction with respect to the property and buildings at a future date, according to SEC documents. As part of the deal the company also obtained a four-year option to take down a fourth parcel totaling four acres for $26 million. Sphere: Related Content
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