Wall Street Journal - November 12, 2009
Property developer Tishman Speyer Properties is expected to announce Wednesday that one of its investment funds had acquired the Paris office building that houses the headquarters of AXA Corporate Services for roughly $95 million.
Tishman has acquired the building from SCI Vendome in a sale-and-lease-back arrangement. Located near the Gare Saint-Lazare train station in central Paris, the building has served as corporate headquarters for various units of French insurer and asset manager AXA SA since it was built in 1910. AXA Corporate Services, which is the only tenant, will remain in the building and has agreed to a nine-year lease, Tishman said.
The sale is a sign that Tishman is able to do deals despite the problems it has had with some of its investments in the U.S., such as the CarrAmerica office-building portfolio in Washington, D.C., and the Stuyvesant Town and Peter Cooper Village apartment complex in Manhattan. The developer, which owns such landmarks as Rockefeller Center, does many of its deals through investment funds that it has raised.
The 140,000-square-foot office building is being purchased by Tishman Speyer's European Core Fund, which owns office buildings throughout Europe.
The deal, one of the larger office transactions in the French capital this year, is typical of the kind of commercial-office property sought in Paris. The building is in the Haussmannian style, named for the 19th-century city planner who created the characteristic appearance of the buildings in central Paris.
"Financing is hard to come by so it's all about equity players, and everyone is looking for this kind of building," said Vincent Bollaert, partner in the capital-markets unit of property services group Cushman Wakefield in Paris. "This is quite a big deal for Paris."
Sphere: Related Content
Thursday, November 12, 2009
US Theatre Chain Negotiating $135 Million Sale Leaseback of 19 Movie Theatres
GlobeSt.com - November 12, 2009
Entertainment Properties Trust is negotiating a letter of intent with what it describes as “a prominent theatre operator” for a $135-million sale-leaseback, according to a filing with the Securities and Exchange Commission this week. In addition, the locally-based REIT, which trades under the ticker EPR, is in discussions with a tenant regarding the purchase of several more charter school properties and is raising new equity for what its C suite has termed “growth transactions.”
The contemplated theatre deal involves 19 properties with 291 screens, 67,000 seats and 1.56 million square feet of space combined, according to the Nov. 10 filing. If the transaction is closed, EPR expects the properties to be leased to the theatre operator under one master lease, structured as a triple-net lease with an initial 20-year term and an initial base rent equal to the purchase price multiplied by 12%, plus rent escalators every five years. “The theatre operator is currently negotiating with a third party for the purchase of the theatres,” the filing states. “It is anticipated that [EPR] would acquire the theatre properties directly from the third party and lease them to the theatre operator.”
Meanwhile, the same filing discloses that EPR is discussing an option to buy as many as five charter schools from Imagine Schools Inc. The purchases as well as plans to invest in the expansion of a charter school the REIT already owns, is estimated to total $50 million.
During the company’s third quarter earnings conference call last week, EPR executives alluded to possible transactions in the theatre and charter school property markets, saying they have been spending a lot of time looking at deals in the 11% to 12% cap rate range. The deals are generally coming from “distressed sellers, not necessarily distressed properties, but distressed sellers,” president and chief executive officer David Brain said during the call. Sphere: Related Content
Entertainment Properties Trust is negotiating a letter of intent with what it describes as “a prominent theatre operator” for a $135-million sale-leaseback, according to a filing with the Securities and Exchange Commission this week. In addition, the locally-based REIT, which trades under the ticker EPR, is in discussions with a tenant regarding the purchase of several more charter school properties and is raising new equity for what its C suite has termed “growth transactions.”
The contemplated theatre deal involves 19 properties with 291 screens, 67,000 seats and 1.56 million square feet of space combined, according to the Nov. 10 filing. If the transaction is closed, EPR expects the properties to be leased to the theatre operator under one master lease, structured as a triple-net lease with an initial 20-year term and an initial base rent equal to the purchase price multiplied by 12%, plus rent escalators every five years. “The theatre operator is currently negotiating with a third party for the purchase of the theatres,” the filing states. “It is anticipated that [EPR] would acquire the theatre properties directly from the third party and lease them to the theatre operator.”
Meanwhile, the same filing discloses that EPR is discussing an option to buy as many as five charter schools from Imagine Schools Inc. The purchases as well as plans to invest in the expansion of a charter school the REIT already owns, is estimated to total $50 million.
During the company’s third quarter earnings conference call last week, EPR executives alluded to possible transactions in the theatre and charter school property markets, saying they have been spending a lot of time looking at deals in the 11% to 12% cap rate range. The deals are generally coming from “distressed sellers, not necessarily distressed properties, but distressed sellers,” president and chief executive officer David Brain said during the call. Sphere: Related Content
Sunday, November 08, 2009
MTD Capital Agrees to $52 Million Sale Leaseback of Two Office Towers in Malaysia
Business Times - November 6, 2009
MTD Capital Bhd said it will sell both its MTD Building and Bangunan Shell Malaysia to its major shareholder for RM175 million to fund its highway project in Phillipines.
MTD’s wholly owned unit, MTD Properties Sdn Bhd, has agreed to sell MTD Building, a 14-storey office tower for RM70 million to Haluan Gigih Sdn Bhd (HSGB), a unit of Alloy Consolidated Sdn Bhd, which in turn is MTD’s major shareholder.
It will also sell the 12 storey Bangunan Shell to HGSB for RM105 million.
MTD Properties will lease back the MTD Building as it is the group’s headquarters. Sphere: Related Content
MTD Capital Bhd said it will sell both its MTD Building and Bangunan Shell Malaysia to its major shareholder for RM175 million to fund its highway project in Phillipines.
MTD’s wholly owned unit, MTD Properties Sdn Bhd, has agreed to sell MTD Building, a 14-storey office tower for RM70 million to Haluan Gigih Sdn Bhd (HSGB), a unit of Alloy Consolidated Sdn Bhd, which in turn is MTD’s major shareholder.
It will also sell the 12 storey Bangunan Shell to HGSB for RM105 million.
MTD Properties will lease back the MTD Building as it is the group’s headquarters. Sphere: Related Content
Downer EDI Works Seeks Sale Leaseback of 22 Sites in New Zealand
NZ Herald News - November 6, 2009
Downer EDI Works, the listed national infrastructure business, is advertising 22 properties in a big sale-and-leaseback deal. Cos Bruyn, Manukau-based chief executive, said Downer wanted to free up capital and get out of real estate so it could expand the business into new areas.
The diversified engineering and services group is offering to lease back its big works depots and provincial bases for 10 to 20 years, paying new owners so it can continue to operate from the same sites. Downer will pay an annual rent on each property of from $12,000 to $1.17 million. It operates here as a subsidiary of the Australian business but is listed on NZX.
Six large regional depots are being advertised for sale by private treaty closing on November 26, to be leased for 20 years. The other 16 properties will be leased on decade-long terms with four rights of renewal for five years. Those will be offered at two auctions.
Charles Cooper, Colliers International's Queen St-based national industrial director, said the agency had been involved in sale-and-leaseback deals this year for NZ Post, Fisher & Paykel Appliances and Farmlands. Sphere: Related Content
Downer EDI Works, the listed national infrastructure business, is advertising 22 properties in a big sale-and-leaseback deal. Cos Bruyn, Manukau-based chief executive, said Downer wanted to free up capital and get out of real estate so it could expand the business into new areas.
The diversified engineering and services group is offering to lease back its big works depots and provincial bases for 10 to 20 years, paying new owners so it can continue to operate from the same sites. Downer will pay an annual rent on each property of from $12,000 to $1.17 million. It operates here as a subsidiary of the Australian business but is listed on NZX.
Six large regional depots are being advertised for sale by private treaty closing on November 26, to be leased for 20 years. The other 16 properties will be leased on decade-long terms with four rights of renewal for five years. Those will be offered at two auctions.
Charles Cooper, Colliers International's Queen St-based national industrial director, said the agency had been involved in sale-and-leaseback deals this year for NZ Post, Fisher & Paykel Appliances and Farmlands. Sphere: Related Content
Saturday, November 07, 2009
Banesto Seeking EUR 100 Million Sale Leaseback of 24 Bank Branches Across Spain
Reuters (as translated by Google)- November 3, 2009
Banesto (BTO.MC) has 24 sales offices in operation 'sale & leaseback' with which they hoped to raise 150 million euros, a source said Tuesday the operation concedora .
A spokesman for Banesto confirmed that the agency had given a mandate to Aguirre Newman sales, but declined comment on the amount of the transaction.
A spokesman for Aguirre Newman also commented on the transaction. "Banesto has put up for sale 'sale & leaseback' office a package of 150 million euros," the source said.
The financial institution follows in the footsteps of its parent Santander (SAN.MC) two years ago sold for subsequent lease its headquarters in Boadilla del Monte and several bundles of branches. Sphere: Related Content
Banesto (BTO.MC) has 24 sales offices in operation 'sale & leaseback' with which they hoped to raise 150 million euros, a source said Tuesday the operation concedora .
A spokesman for Banesto confirmed that the agency had given a mandate to Aguirre Newman sales, but declined comment on the amount of the transaction.
A spokesman for Aguirre Newman also commented on the transaction. "Banesto has put up for sale 'sale & leaseback' office a package of 150 million euros," the source said.
The financial institution follows in the footsteps of its parent Santander (SAN.MC) two years ago sold for subsequent lease its headquarters in Boadilla del Monte and several bundles of branches. Sphere: Related Content
Friday, November 06, 2009
EnergyAustralia Seeking $100 Million Sale Leaseback of Downtown Sydney HQ
The Sydney Morning Herald - November 3, 2009
The EnergyAustralia headquarters at George Street, opposite Sydney’s Town Hall, where a $100 million sale and leaseback is planned, is on the market as the NSW Government prepares to sell the electricity retailer. Sphere: Related Content
The EnergyAustralia headquarters at George Street, opposite Sydney’s Town Hall, where a $100 million sale and leaseback is planned, is on the market as the NSW Government prepares to sell the electricity retailer. Sphere: Related Content
Thursday, November 05, 2009
Collapse of Bond Insurers Slams Municipal Transit Agencies
The New York Times - November 1, 2009
(Note: While these transit authority deals did not involve real estate, they clearly demonstrate that fact that credit risk can never be completely eliminated. And transit authorities are not alone in their misery.)
Like a tsunami that follows an undersea earthquake, collateral damage from the collapse of credit markets is about to strike the millions of daily transit riders in America’s biggest cities. Public transit agencies in cities including New York, Atlanta, San Francisco and Washington are under pressure to surrender $2 billion from their budgets because financial institutions have spotted a chance to gain a windfall from complicated tax-shelter deals known as “leasebacks.”
In the heady 1990s, the federal government encouraged these leaseback deals as a quick fix for budget problems. Transit agencies like New York’s Metropolitan Transportation Authority would sell their railcars and other equipment to banks, which would then lease them back to the agencies.
Leasebacks appeared to promise that everyone would emerge a winner. Banks — including many that later took federal bailout money like Bank of America and Wells Fargo — were able to cash in on substantial tax deductions through the transactions. The transit companies, which were paid with a portion of those tax savings, could use the cash to modernize their systems and make safety improvements.
Alas, as with any quick fix, the deals have set off a cascade of problems.
First, while the Internal Revenue Service declared the deals illegal in 2004, it allowed previously completed deals to remain on the books. And the situation exploded last fall when financial markets crashed and the third-party insurers chosen by the transit agencies as guarantors of the transactions lost their triple-A credit ratings (in many cases, the insurer was A.I.G.). This placed the transit agencies in “technical default” on the leases, even though they hadn’t missed any payments.
In turn, many of the banks have decided to take advantage of these “technical defaults” to reap a windfall in early-termination payments. By rights, they can immediately demand from transit authorities an amount equal to all their anticipated tax savings. These can run to hundreds of millions of dollars — New Jersey Transit alone is on the hook for $150 million.
Virtually all major city and state public transit systems in the country have at least one of these deals still on the books. If they have to make these payments, commuters will bear the brunt, in terms of higher fares and deferred maintenance.
A solution exists, however. Senator Robert Menendez, a Democrat from New Jersey, and Representative John Lewis, a Georgia Democrat, have proposed a bill that would levy a 100 percent excise tax on any lump-sum payments demanded by the banks. This would effectively force the financial industry to stop demanding default penalties and go back to the old lease payment schedule — at no cost to taxpayers.
As the nation climbs out of one of its toughest economic crises ever, we cannot be lulled into thinking the problems caused by imprudent financing techniques have vanished. Yes, the transit groups were unwise to get involved in the leasebacks, but that’s no reason to let banks continue to exploit loopholes in them at the expense of transit riders. Congress must act to protect commuters and taxpayers from this insidious legacy of a careless period in American finance. Sphere: Related Content
(Note: While these transit authority deals did not involve real estate, they clearly demonstrate that fact that credit risk can never be completely eliminated. And transit authorities are not alone in their misery.)
Like a tsunami that follows an undersea earthquake, collateral damage from the collapse of credit markets is about to strike the millions of daily transit riders in America’s biggest cities. Public transit agencies in cities including New York, Atlanta, San Francisco and Washington are under pressure to surrender $2 billion from their budgets because financial institutions have spotted a chance to gain a windfall from complicated tax-shelter deals known as “leasebacks.”
In the heady 1990s, the federal government encouraged these leaseback deals as a quick fix for budget problems. Transit agencies like New York’s Metropolitan Transportation Authority would sell their railcars and other equipment to banks, which would then lease them back to the agencies.
Leasebacks appeared to promise that everyone would emerge a winner. Banks — including many that later took federal bailout money like Bank of America and Wells Fargo — were able to cash in on substantial tax deductions through the transactions. The transit companies, which were paid with a portion of those tax savings, could use the cash to modernize their systems and make safety improvements.
Alas, as with any quick fix, the deals have set off a cascade of problems.
First, while the Internal Revenue Service declared the deals illegal in 2004, it allowed previously completed deals to remain on the books. And the situation exploded last fall when financial markets crashed and the third-party insurers chosen by the transit agencies as guarantors of the transactions lost their triple-A credit ratings (in many cases, the insurer was A.I.G.). This placed the transit agencies in “technical default” on the leases, even though they hadn’t missed any payments.
In turn, many of the banks have decided to take advantage of these “technical defaults” to reap a windfall in early-termination payments. By rights, they can immediately demand from transit authorities an amount equal to all their anticipated tax savings. These can run to hundreds of millions of dollars — New Jersey Transit alone is on the hook for $150 million.
Virtually all major city and state public transit systems in the country have at least one of these deals still on the books. If they have to make these payments, commuters will bear the brunt, in terms of higher fares and deferred maintenance.
A solution exists, however. Senator Robert Menendez, a Democrat from New Jersey, and Representative John Lewis, a Georgia Democrat, have proposed a bill that would levy a 100 percent excise tax on any lump-sum payments demanded by the banks. This would effectively force the financial industry to stop demanding default penalties and go back to the old lease payment schedule — at no cost to taxpayers.
As the nation climbs out of one of its toughest economic crises ever, we cannot be lulled into thinking the problems caused by imprudent financing techniques have vanished. Yes, the transit groups were unwise to get involved in the leasebacks, but that’s no reason to let banks continue to exploit loopholes in them at the expense of transit riders. Congress must act to protect commuters and taxpayers from this insidious legacy of a careless period in American finance. Sphere: Related Content
Aurora Health Care Completes $169 Million Sale Leaseback of 10 Medical Buildings in Wisconsin
JSOnline - October 2, 2009
Aurora Health Care Inc. has sold 10 eastern Wisconsin buildings to a Massachusetts-based real estate investment trust for $169 million, a company spokesman said Friday.
Aurora sold the medical office buildings and outpatient surgery centers to SNH Medical Office Properties Trust Inc., a real estate investment trust based in the Boston area, said Aurora spokesman Ron Irwin. The buildings total 640,000 square feet, according to SNH Medical.
The buildings will be leased back to Aurora, which has done other sale-leasebacks. Those transactions provide cash for Aurora to invest into its medical operations and reduce its debt.
The facilities sold are in Wauwatosa, at 3289 N. Mayfair Road; Glendale, at 3003 W. Good Hope Road, and 7000 N. Range Line Road; Pewaukee, at W231-N1440 Corporate Court; Grafton, at 215 W. Washington Ave.; Mount Pleasant, at 8348 Washington Ave. and 8400 Washington Ave., and Sheboygan, at 1221 N. 26th St., 2414 Kohler Memorial Drive, and 1222 N. 23rd St.
SNH Medical is a subsidiary of Senior Housing Properties Trust, based in Newton, Mass. Senior Housing Properties primarily owns nursing homes, assisted living centers and other residential properties, but has been diversifying by buying medical office buildings and other medical facilities, said Timothy Bonang, vice president of investor relations.
Aurora, in two separate sales earlier this year, sold six medical office buildings to Santa Ana, Calif.-based Grubb & Ellis Healthcare REIT Inc. for around $75 million.
(NOTE: A quarterly earnings release from the buyer indicates that the transaction was a 15 year sale leaseback at an initial rent of approximately $15 million annually - an initial yield of approximately 8.9%.) Sphere: Related Content
Aurora Health Care Inc. has sold 10 eastern Wisconsin buildings to a Massachusetts-based real estate investment trust for $169 million, a company spokesman said Friday.
Aurora sold the medical office buildings and outpatient surgery centers to SNH Medical Office Properties Trust Inc., a real estate investment trust based in the Boston area, said Aurora spokesman Ron Irwin. The buildings total 640,000 square feet, according to SNH Medical.
The buildings will be leased back to Aurora, which has done other sale-leasebacks. Those transactions provide cash for Aurora to invest into its medical operations and reduce its debt.
The facilities sold are in Wauwatosa, at 3289 N. Mayfair Road; Glendale, at 3003 W. Good Hope Road, and 7000 N. Range Line Road; Pewaukee, at W231-N1440 Corporate Court; Grafton, at 215 W. Washington Ave.; Mount Pleasant, at 8348 Washington Ave. and 8400 Washington Ave., and Sheboygan, at 1221 N. 26th St., 2414 Kohler Memorial Drive, and 1222 N. 23rd St.
SNH Medical is a subsidiary of Senior Housing Properties Trust, based in Newton, Mass. Senior Housing Properties primarily owns nursing homes, assisted living centers and other residential properties, but has been diversifying by buying medical office buildings and other medical facilities, said Timothy Bonang, vice president of investor relations.
Aurora, in two separate sales earlier this year, sold six medical office buildings to Santa Ana, Calif.-based Grubb & Ellis Healthcare REIT Inc. for around $75 million.
(NOTE: A quarterly earnings release from the buyer indicates that the transaction was a 15 year sale leaseback at an initial rent of approximately $15 million annually - an initial yield of approximately 8.9%.) Sphere: Related Content
Wednesday, October 28, 2009
Solyndra Signs Largest Bay Area Industrial Lease in 20 Years
Reuters - October 28, 2009
Overton Moore Properties (OMP), announced today that it has signed the largest warehouse/manufacturing lease that has been executed over the past 20 years in the San Francisco Bay Area with Solyndra, Inc. Headquartered in Fremont, CA, Solyndra designs and manufactures photovoltaic systems, comprised of panels and mounting hardware, for the commercial rooftop market and has a contractual backlog of over $ 2 billion. OMP and Solyndra signed a 12 year lease for the 506,490 square foot Page Technology Park, in Fremont, CA. “This is a great way to finish up 2009 with the leasing of Page Technology Park. This is terrific news for the market and we successfully executed our business plan for this asset,” noted Timur Tecimer, President & COO of Overton Moore Properties.
Although the specific terms of the lease were not disclosed, it is reported that the total value of the lease is in excess of 45 million dollars. Solyndra also has an option to acquire the property during part of the lease term. “OMP believed, as did we, that the heavy infrastructure and clear height along with the building’s size were very desirable attributes for the emerging cleantech segment of the market. Solyndra was always on the radar given their pipeline of business, but we had very detailed discussions with a number of other larger tenants as well. We still see opportunity in this sector,” notes Rob Shannon, CBRE.
Page Technology Park will be a back-end facility for Solyndra that will support the recently announced construction of its second solar panel manufacturing plant. Solyndra is the first company to receive a loan guaranteed by the U.S. Department of Energy under Title XVII of the Energy Policy Act of 2005.
OMP recently acquired the property in December 2008 from Hewlett- Packard (HP). The property was acquired when the capital markets were in a tailspin and when the commercial real state market had stalled. OMP was one of the few buyers in the marketplace that could actually close deals during the fourth quarter of 2008. OMP acquired the property in an all cash transaction with a six month lease back from HP. “We were very conservative in our underwriting and had a margin of safety with our downtime, free rent and rental rates,” noted Tecimer. OMP acquired the asset due to the acquisition price, unique features of the building infrastructure, lack of direct competition, freeway access and submarket location.
The property, built in 1982, consists of manufacturing, warehouse, labs, and office/work area representing 506,490 square feet on nearly 30 acres. OMP strongly believes in acquiring assets below replacement in exceptional infill locations. The property has substantial infrastructure in place including 21 kVA utility service, 100% air-conditioned facilities, epoxy-coated ESD concrete slab floors, overhead power distribution bars in the manufacturing area, emergency power, 25-28’ clear heights, fully calculated and ESFR sprinkler systems.
The acquisition by OMP in December 2008 was their first industrial acquisition in Northern California. OMP will continue to strategically acquire assets in Northern California as well as in other markets in Southern California, Arizona and Nevada. Assets that will be targeted include: vacant buildings, buildings with roll-over risk within the first two years, asset repositioning and re-development. OMP through its investment fund OMP Industrial III acquires industrial assets on an all cash basis.
OMP was represented by Rob Shannon, Joe Kelley and Ben Knight of CBRE and Greig Lagomarsino of Colliers International and Solyndra was represented by John Olenchalk of GVA Kidder Mathews. Sphere: Related Content
Overton Moore Properties (OMP), announced today that it has signed the largest warehouse/manufacturing lease that has been executed over the past 20 years in the San Francisco Bay Area with Solyndra, Inc. Headquartered in Fremont, CA, Solyndra designs and manufactures photovoltaic systems, comprised of panels and mounting hardware, for the commercial rooftop market and has a contractual backlog of over $ 2 billion. OMP and Solyndra signed a 12 year lease for the 506,490 square foot Page Technology Park, in Fremont, CA. “This is a great way to finish up 2009 with the leasing of Page Technology Park. This is terrific news for the market and we successfully executed our business plan for this asset,” noted Timur Tecimer, President & COO of Overton Moore Properties.
Although the specific terms of the lease were not disclosed, it is reported that the total value of the lease is in excess of 45 million dollars. Solyndra also has an option to acquire the property during part of the lease term. “OMP believed, as did we, that the heavy infrastructure and clear height along with the building’s size were very desirable attributes for the emerging cleantech segment of the market. Solyndra was always on the radar given their pipeline of business, but we had very detailed discussions with a number of other larger tenants as well. We still see opportunity in this sector,” notes Rob Shannon, CBRE.
Page Technology Park will be a back-end facility for Solyndra that will support the recently announced construction of its second solar panel manufacturing plant. Solyndra is the first company to receive a loan guaranteed by the U.S. Department of Energy under Title XVII of the Energy Policy Act of 2005.
OMP recently acquired the property in December 2008 from Hewlett- Packard (HP). The property was acquired when the capital markets were in a tailspin and when the commercial real state market had stalled. OMP was one of the few buyers in the marketplace that could actually close deals during the fourth quarter of 2008. OMP acquired the property in an all cash transaction with a six month lease back from HP. “We were very conservative in our underwriting and had a margin of safety with our downtime, free rent and rental rates,” noted Tecimer. OMP acquired the asset due to the acquisition price, unique features of the building infrastructure, lack of direct competition, freeway access and submarket location.
The property, built in 1982, consists of manufacturing, warehouse, labs, and office/work area representing 506,490 square feet on nearly 30 acres. OMP strongly believes in acquiring assets below replacement in exceptional infill locations. The property has substantial infrastructure in place including 21 kVA utility service, 100% air-conditioned facilities, epoxy-coated ESD concrete slab floors, overhead power distribution bars in the manufacturing area, emergency power, 25-28’ clear heights, fully calculated and ESFR sprinkler systems.
The acquisition by OMP in December 2008 was their first industrial acquisition in Northern California. OMP will continue to strategically acquire assets in Northern California as well as in other markets in Southern California, Arizona and Nevada. Assets that will be targeted include: vacant buildings, buildings with roll-over risk within the first two years, asset repositioning and re-development. OMP through its investment fund OMP Industrial III acquires industrial assets on an all cash basis.
OMP was represented by Rob Shannon, Joe Kelley and Ben Knight of CBRE and Greig Lagomarsino of Colliers International and Solyndra was represented by John Olenchalk of GVA Kidder Mathews. Sphere: Related Content
Tuesday, October 20, 2009
Arizona Planning $735 Milion Sale Leaseback of State Buildings
New York Times - October 20, 2009
A tentative plan to implement a budget-balancing maneuver by raising $735 million from investors calls for allowing individuals and institutions to buy securities that would be backed by collateral consisting of a bulk package of prisons and other state buildings, officials said Monday.
The Department of Administration said it intends to implement the sale-leaseback strategy by assembling all the properties in a package that would be "nominally sold" to investors as part of securities sales in January.
The securities -- certificates of participation -- would entitle investors to proportional shares of annual lease payments by the state for up to 20 years.
Under the budget legislation signed into law by Gov. Brewer on Sept. 4, ownership of the properties would revert to the state at the end of the lease.
The financing arrangement is a key element of a range of strategies which Brewer and legislators used to close a projected $3 billion shortfall. However, the state still faces a projected $1.5 billion midyear gap because Brewer vetoed part of the budget and because of still-slumping revenue and a deficit carried forward from the last fiscal year.
Though state officials have tentatively settled on an approach to use to implement the budget strategy through the sale of certificates of participation, they also are open to any suggested alternatives, said department Comptroller Clark Partridge said. "We're looking for the best deal for Arizona."
The properties included on a tentative list for use in the budget plan range from a park visitor center to the House and Senate buildings and various prisons.
The nature of the assets -- they generally are properties the state could not or would not give up -- would provide some peace of mind to investors that the state intends to stick with the deal, department spokesman Alan Ecker.
Ecker said the state has received "hundreds of phone calls" from real estate brokers and others concerning the investment opportunity.
He declined to release a list of the callers, saying it was being treated as a confidential procurement matter. Sphere: Related Content
A tentative plan to implement a budget-balancing maneuver by raising $735 million from investors calls for allowing individuals and institutions to buy securities that would be backed by collateral consisting of a bulk package of prisons and other state buildings, officials said Monday.
The Department of Administration said it intends to implement the sale-leaseback strategy by assembling all the properties in a package that would be "nominally sold" to investors as part of securities sales in January.
The securities -- certificates of participation -- would entitle investors to proportional shares of annual lease payments by the state for up to 20 years.
Under the budget legislation signed into law by Gov. Brewer on Sept. 4, ownership of the properties would revert to the state at the end of the lease.
The financing arrangement is a key element of a range of strategies which Brewer and legislators used to close a projected $3 billion shortfall. However, the state still faces a projected $1.5 billion midyear gap because Brewer vetoed part of the budget and because of still-slumping revenue and a deficit carried forward from the last fiscal year.
Though state officials have tentatively settled on an approach to use to implement the budget strategy through the sale of certificates of participation, they also are open to any suggested alternatives, said department Comptroller Clark Partridge said. "We're looking for the best deal for Arizona."
The properties included on a tentative list for use in the budget plan range from a park visitor center to the House and Senate buildings and various prisons.
The nature of the assets -- they generally are properties the state could not or would not give up -- would provide some peace of mind to investors that the state intends to stick with the deal, department spokesman Alan Ecker.
Ecker said the state has received "hundreds of phone calls" from real estate brokers and others concerning the investment opportunity.
He declined to release a list of the callers, saying it was being treated as a confidential procurement matter. Sphere: Related Content
Monday, October 19, 2009
Eurohold Completes EUR 27 Million Sale Leaseback of HQ in Sofia
PropertyEU - October 16, 2009
Bulgarian industrial and financial group Eurohold has sold the Avto Union Centre office building in Sofia in a sale-and-leaseback transaction to private equity firm Bluehouse Capital Partners. The transaction price amounts to some EUR 27 mln.
Located on Christopher Columbus Boulevard, the scheme is currently 95%-let to Eurohold which will continue to use the property as its main headquarters. The scheme also houses the first car mall in Bulgaria with nine car brands and 47 different car models on display.
Eurohold said that it will use EUR 16.8 mln of proceeds from the sale to repay a construction loan to Piraeus Bank Bulgaria, while the remaining EUR 10.5 mln will be invested in its core business.
'The deal is part of the continuing efforts of Eurohold to divest non-core assets,' the company said. The accounting gain from the sale is EUR 7 mln, it added.
Focused on the South Eastern European markets, Bluehouse manages around EUR 320 mln of assets through three opportunity funds. Sphere: Related Content
Bulgarian industrial and financial group Eurohold has sold the Avto Union Centre office building in Sofia in a sale-and-leaseback transaction to private equity firm Bluehouse Capital Partners. The transaction price amounts to some EUR 27 mln.
Located on Christopher Columbus Boulevard, the scheme is currently 95%-let to Eurohold which will continue to use the property as its main headquarters. The scheme also houses the first car mall in Bulgaria with nine car brands and 47 different car models on display.
Eurohold said that it will use EUR 16.8 mln of proceeds from the sale to repay a construction loan to Piraeus Bank Bulgaria, while the remaining EUR 10.5 mln will be invested in its core business.
'The deal is part of the continuing efforts of Eurohold to divest non-core assets,' the company said. The accounting gain from the sale is EUR 7 mln, it added.
Focused on the South Eastern European markets, Bluehouse manages around EUR 320 mln of assets through three opportunity funds. Sphere: Related Content
Sunday, October 18, 2009
Virgin Blue Seeks Sale Leaseback of Brisbane HQ
Jones Lang LaSalle Web Site - October 16, 2009
Jones Lang LaSalle has been appointed to provide tenant representation and transaction management services for the Virgin Blue property portfolio in Australia, New Zealand and the South Pacific Islands.
The three-year contract appoints Jones Lang LaSalle, Corporate Solutions, to handle all real estate transactions for the entire Virgin Blue property portfolio in the Asia Pacific region, which is made up of 144 individual leases, licences and owned assets.
This includes 131 in Australia, eight in New Zealand, and one each in Fiji, Vanuatu, Solomon Islands, Rarotonga and Papua New Guinea.
The first project for Jones Lang LaSalle will be to manage the sale of ‘Virgin Village’, Virgin Blue’s Brisbane Headquarters located at 56 Edmonstone Road, on a sale and leaseback arrangement.
The one-year-old campus style headquarters is made up of three buildings totalling 13,220 sqm net lettable area. ‘Virgin Village’ currently houses approximately 1,000 Virgin Blue employees. Virgin Blue will continue to occupy the entire campus.
Tony Wyllie, National Head, Corporate Solutions for Jones Lang LaSalle, said, “This important contract further strengthens Jones Lang LaSalle’s position in the Asia Pacific market as the only service provider that combines transactional expertise, facilities management with national, regional and global capabilities for clients.
“As part of a tailored corporate real estate solution for Virgin Blue, our specialist property services will support Virgin Blue’s core business and allow them to continue to focus on what they do best for their customers, as we use our expertise to make maximum use of their property portfolio,” he said. Sphere: Related Content
Jones Lang LaSalle has been appointed to provide tenant representation and transaction management services for the Virgin Blue property portfolio in Australia, New Zealand and the South Pacific Islands.
The three-year contract appoints Jones Lang LaSalle, Corporate Solutions, to handle all real estate transactions for the entire Virgin Blue property portfolio in the Asia Pacific region, which is made up of 144 individual leases, licences and owned assets.
This includes 131 in Australia, eight in New Zealand, and one each in Fiji, Vanuatu, Solomon Islands, Rarotonga and Papua New Guinea.
The first project for Jones Lang LaSalle will be to manage the sale of ‘Virgin Village’, Virgin Blue’s Brisbane Headquarters located at 56 Edmonstone Road, on a sale and leaseback arrangement.
The one-year-old campus style headquarters is made up of three buildings totalling 13,220 sqm net lettable area. ‘Virgin Village’ currently houses approximately 1,000 Virgin Blue employees. Virgin Blue will continue to occupy the entire campus.
Tony Wyllie, National Head, Corporate Solutions for Jones Lang LaSalle, said, “This important contract further strengthens Jones Lang LaSalle’s position in the Asia Pacific market as the only service provider that combines transactional expertise, facilities management with national, regional and global capabilities for clients.
“As part of a tailored corporate real estate solution for Virgin Blue, our specialist property services will support Virgin Blue’s core business and allow them to continue to focus on what they do best for their customers, as we use our expertise to make maximum use of their property portfolio,” he said. Sphere: Related Content
Monday, October 12, 2009
B&Q Agrees to "Blend and Extend" Deal on UK Store Portfolio to Reduce Costs
Property Week - October 9, 2009
B&Q and British Land have agreed a landmark lease transaction that will enable the retailer to reduce its costs and the landlord to improve property values. B&Q has reduced its rent by 10% at seven of its warehouse-format stores, in return for extending the lease length. The new arrangement allows B&Q to reduce its rent by 10% in exchange for taking on new 20-year leases with no breaks and rents linked to the Retail Prices Index (RPI).
After the 10% reduction the average rent is £14.85/sq ft. The transaction also includes a new lease at a mini-warehouse at Cwmbran in Wales. British Land bought the seven B&Q stores in a £198m purchase and leaseback in 2005. The seven stores total around 700,000 sq ft. B&Q has 330 stores in the UK and Ireland.
Iain Small, B&Q’s director of property acquisition and management, said: “This regear is in line with our company-wide policy to reduce costs across the business. We have achieved an immediate 10% rent reduction across seven key trading stores.” John Madison, director at British Land, said: “This meets our strategy to drive values and shape the portfolio into well-let, long-term investments.”
Martin Supple, joint head of out-of-town retail at Cushman & Wakefield, said: “This regear is a win-win solution for both parties. It shows opportunities exist in the current market for landlords to sit down with key tenants and find ways to help them reduce costs, while still enhancing their own capital asset value.”
B&Q hopes to enter into similar arrangements with other landlords. It believes that, by offering something in return, landlords will agree to a rent reduction. Parent company Kingfisher last month reported that B&Q’s UK and Ireland sales were up 1.2% and profit was up 66% for the 26-week period to 1 August, compared with the previous year.
David Childs, director of B&Q Properties, is to leave the business after 17 years. His responsibilities will be divided among the existing team. Sphere: Related Content
B&Q and British Land have agreed a landmark lease transaction that will enable the retailer to reduce its costs and the landlord to improve property values. B&Q has reduced its rent by 10% at seven of its warehouse-format stores, in return for extending the lease length. The new arrangement allows B&Q to reduce its rent by 10% in exchange for taking on new 20-year leases with no breaks and rents linked to the Retail Prices Index (RPI).
After the 10% reduction the average rent is £14.85/sq ft. The transaction also includes a new lease at a mini-warehouse at Cwmbran in Wales. British Land bought the seven B&Q stores in a £198m purchase and leaseback in 2005. The seven stores total around 700,000 sq ft. B&Q has 330 stores in the UK and Ireland.
Iain Small, B&Q’s director of property acquisition and management, said: “This regear is in line with our company-wide policy to reduce costs across the business. We have achieved an immediate 10% rent reduction across seven key trading stores.” John Madison, director at British Land, said: “This meets our strategy to drive values and shape the portfolio into well-let, long-term investments.”
Martin Supple, joint head of out-of-town retail at Cushman & Wakefield, said: “This regear is a win-win solution for both parties. It shows opportunities exist in the current market for landlords to sit down with key tenants and find ways to help them reduce costs, while still enhancing their own capital asset value.”
B&Q hopes to enter into similar arrangements with other landlords. It believes that, by offering something in return, landlords will agree to a rent reduction. Parent company Kingfisher last month reported that B&Q’s UK and Ireland sales were up 1.2% and profit was up 66% for the 26-week period to 1 August, compared with the previous year.
David Childs, director of B&Q Properties, is to leave the business after 17 years. His responsibilities will be divided among the existing team. Sphere: Related Content
Wednesday, October 07, 2009
Unicredit Completes EUR 1.1 Billion Sale Leaseback of Banking Properties in Italy
PropertyEU - October 5, 2009
Italian bank Unicredit has sold EUR 1.1 bn of property assets in two separate transactions in a bid to boost liquidity. The Milan-based lender is 'looking to reduce its property holdings from EUR 8.8 bn at present to around EUR 6 bn in the next two to three years,' Unicredit's Deputy CEO Paolo Fiorentino told Italian media during a press conference held to present the operation.
Unicredit has disposed of 13 properties for a total of EUR 574 mln, consisting of EUR 230 mln of equity and EUR 344 mln of bank financing. The assets, which have been sold to an investment vehicle managed by Italian fund manager Ream SGR, include trophy buildings such as the Milan headquarter of Banca di Roma in Piazza Edison and the head office of the former Credito Italiano in Genoa's Via Dante. The majority of the buildings will be leased back to Unicredit with rental contracts of six and 18 years. The bank realises a capital gain of EUR 110 mln through the transaction, it said.
The fund, with a life of 15 years, is targeting annual returns of 11%. It is 35%-controlled by several institutional investors including Fondazione Crt while Unicredit holds a further 35%, which it committed to sell by the first half of 2010.
The Milan-base lender is selling a further 179 properties in a EUR 530 mln sale and leaseback with fund manager Fimit. The properties will be transferred to Fimit's Omicron Plus fund, which was launched at the end of 2008 in tandem with the purchase of a first tranche of Unicredit properties for EUR 800 mln. The properties are fully let to the Italian bank with rental contracts of 18 years, with an option for a further six years. The operation results in capital gains of EUR 163 mln for Unicredit.
Finally, Unicredit has announced the sale of 3,200 units in the Omicron fund to Singapore's sovereign wealth fund GIC Real Estate for a total of EUR 78 mln. After the disposal, the Italian bank will have completed the sale of all its units in Omicron Plus. Sphere: Related Content
Italian bank Unicredit has sold EUR 1.1 bn of property assets in two separate transactions in a bid to boost liquidity. The Milan-based lender is 'looking to reduce its property holdings from EUR 8.8 bn at present to around EUR 6 bn in the next two to three years,' Unicredit's Deputy CEO Paolo Fiorentino told Italian media during a press conference held to present the operation.
Unicredit has disposed of 13 properties for a total of EUR 574 mln, consisting of EUR 230 mln of equity and EUR 344 mln of bank financing. The assets, which have been sold to an investment vehicle managed by Italian fund manager Ream SGR, include trophy buildings such as the Milan headquarter of Banca di Roma in Piazza Edison and the head office of the former Credito Italiano in Genoa's Via Dante. The majority of the buildings will be leased back to Unicredit with rental contracts of six and 18 years. The bank realises a capital gain of EUR 110 mln through the transaction, it said.
The fund, with a life of 15 years, is targeting annual returns of 11%. It is 35%-controlled by several institutional investors including Fondazione Crt while Unicredit holds a further 35%, which it committed to sell by the first half of 2010.
The Milan-base lender is selling a further 179 properties in a EUR 530 mln sale and leaseback with fund manager Fimit. The properties will be transferred to Fimit's Omicron Plus fund, which was launched at the end of 2008 in tandem with the purchase of a first tranche of Unicredit properties for EUR 800 mln. The properties are fully let to the Italian bank with rental contracts of 18 years, with an option for a further six years. The operation results in capital gains of EUR 163 mln for Unicredit.
Finally, Unicredit has announced the sale of 3,200 units in the Omicron fund to Singapore's sovereign wealth fund GIC Real Estate for a total of EUR 78 mln. After the disposal, the Italian bank will have completed the sale of all its units in Omicron Plus. Sphere: Related Content
Acciona Seeking EUR 60 Million Sale Leaseback of Two Buildings in Madrid
PropertyEU - October 5, 2009
Spanish construction group Ferrovial has received a number of bids for its Madrid headquarters which would see the building taken over under a sale-and-leaseback structure. The firm is now considering the offers for the headquarters located at Principe de Vergara in the Spanish capital, a spokesperson for the company told news agency Reuters. Ferrovial is said to be targeting a price of EUR 43 mln for the building.
Separately, Spanish infrastructure and renewable energy company Acciona is said to have put on the market two of its buldings in the La Moraleja de Alcobendas business park in Madrid. According to an article in Spanish newspaper Cinco Dias, the building could fetch up to EUR 60 mln. The operation, which is being managed by CBRE, is planned as a sale-and-leaseback deal.
A number of Spanish companies have been trying to sell their properties over the past months in an effort to generate cash. Last week, Spain's second-largest bank BBVA unveiled the EUR 1.1 bn sale of its bank branch portfolio consisting of 948 assets. Spanish manufacturer Gallina Blanca Star also sold its head office in Barcelona this week to real estate firm Iberfindim, owned by the Fossati family, for around EUR 15 mln. Aguirre Newman advised the company in the sale process. Sphere: Related Content
Spanish construction group Ferrovial has received a number of bids for its Madrid headquarters which would see the building taken over under a sale-and-leaseback structure. The firm is now considering the offers for the headquarters located at Principe de Vergara in the Spanish capital, a spokesperson for the company told news agency Reuters. Ferrovial is said to be targeting a price of EUR 43 mln for the building.
Separately, Spanish infrastructure and renewable energy company Acciona is said to have put on the market two of its buldings in the La Moraleja de Alcobendas business park in Madrid. According to an article in Spanish newspaper Cinco Dias, the building could fetch up to EUR 60 mln. The operation, which is being managed by CBRE, is planned as a sale-and-leaseback deal.
A number of Spanish companies have been trying to sell their properties over the past months in an effort to generate cash. Last week, Spain's second-largest bank BBVA unveiled the EUR 1.1 bn sale of its bank branch portfolio consisting of 948 assets. Spanish manufacturer Gallina Blanca Star also sold its head office in Barcelona this week to real estate firm Iberfindim, owned by the Fossati family, for around EUR 15 mln. Aguirre Newman advised the company in the sale process. Sphere: Related Content
Wednesday, September 30, 2009
UK Ministry of Defense Planning £50 Million Sale Leaseback of Offices in Glasgow
Herald Scotland - September 27, 2009
The Ministry of Defence is planning a major UK-wide property disposal programme as part of efforts to shore up its embattled budget, according to trade union sources.
Following last week’s report that the MoD plans a £50 million sale and leaseback of Kentigern House, the 1700-strong personnel office in the Broomielaw area of Glasgow, the move is said to be an early salvo in a much bigger programme that could involve selling-off everything from army careers offices to fuel depots to barracks and bases.
Ian Fraser, West of Scotland branch secretary for the Public and Commercial Services Union, said that a team had been assembled at the Defence Estates offices in Rosyth to co-ordinate so-called “Project Sale”, which will see many more properties sold and then leased back by their new owners to the MoD where appropriate.
The former top secret RAF airbase at Machrihanish on the Kintyre peninsula was sold earlier this year, while union bosses have been told that the Navy Buildings at Greenock, which houses marines, amphibious police and coastguards, will close in March 2011 and also be sold. There had also been plans to close a missile testing range spread across the Uists, but they were recently abandoned in the face of local protests, saving 125 jobs.
Fraser said: “We have been told by management that Kentigern is just the first. The MoD is one of the biggest landowners in Europe – they are waiting to see how it goes and will then start going for other sites. “They will sell anything they can sell.” Such a project would certainly make sense given the MoD budget is already thought to be running at a £1.5 billion deficit and is widely tipped to bear the brunt of public spending cuts regardless of which party wins the next general election.
Fraser said that the unions were opposed to both the Kentigern House sale and any further sale and leaseback deals on the grounds that they will squeeze MoD budgets in the long-run. With Kentigern House, for instance, the cost to the ministry over the first 20 years of any deal is set to be at least £70m.
He said there were also concerns that the move would be the start of the MoD withdrawing from Kentigern, amid union consultations with management about several small departments moving to England, but other sources countered that a 20-year lease was a strong sign of its commitment to the site.
Fraser said: “If this is such good value for the public purse, why has it taken 28 years [since the Glasgow offices were completed] to think of it?
“We think that the best security for Kentigern House is to keep it in the MoD and continue to own the building.”
A spokeswoman for the MoD denied that there was a fully-developed project to sell swathes of the estate, but said: “We regularly look at some of our sites for sale and leaseback opportunities. At present we are only considering this for Kentigern House and Abbey Wood in Bristol [the ministry’s procurement headquarters].
“Any other similar moves will depend on whether they are commercially viable. I can’t give a percentage of the proportion of the estate that we want to sell because it doesn’t exist.”
She added: “The proposed sale and leaseback at Kentigern House is a normal commercial arrangement to realise capital from the estate. It’s an attractive investment opportunity, given the MoD’s covenant as a long-term tenant, and has generated significant interest from financial institutions.” Sphere: Related Content
The Ministry of Defence is planning a major UK-wide property disposal programme as part of efforts to shore up its embattled budget, according to trade union sources.
Following last week’s report that the MoD plans a £50 million sale and leaseback of Kentigern House, the 1700-strong personnel office in the Broomielaw area of Glasgow, the move is said to be an early salvo in a much bigger programme that could involve selling-off everything from army careers offices to fuel depots to barracks and bases.
Ian Fraser, West of Scotland branch secretary for the Public and Commercial Services Union, said that a team had been assembled at the Defence Estates offices in Rosyth to co-ordinate so-called “Project Sale”, which will see many more properties sold and then leased back by their new owners to the MoD where appropriate.
The former top secret RAF airbase at Machrihanish on the Kintyre peninsula was sold earlier this year, while union bosses have been told that the Navy Buildings at Greenock, which houses marines, amphibious police and coastguards, will close in March 2011 and also be sold. There had also been plans to close a missile testing range spread across the Uists, but they were recently abandoned in the face of local protests, saving 125 jobs.
Fraser said: “We have been told by management that Kentigern is just the first. The MoD is one of the biggest landowners in Europe – they are waiting to see how it goes and will then start going for other sites. “They will sell anything they can sell.” Such a project would certainly make sense given the MoD budget is already thought to be running at a £1.5 billion deficit and is widely tipped to bear the brunt of public spending cuts regardless of which party wins the next general election.
Fraser said that the unions were opposed to both the Kentigern House sale and any further sale and leaseback deals on the grounds that they will squeeze MoD budgets in the long-run. With Kentigern House, for instance, the cost to the ministry over the first 20 years of any deal is set to be at least £70m.
He said there were also concerns that the move would be the start of the MoD withdrawing from Kentigern, amid union consultations with management about several small departments moving to England, but other sources countered that a 20-year lease was a strong sign of its commitment to the site.
Fraser said: “If this is such good value for the public purse, why has it taken 28 years [since the Glasgow offices were completed] to think of it?
“We think that the best security for Kentigern House is to keep it in the MoD and continue to own the building.”
A spokeswoman for the MoD denied that there was a fully-developed project to sell swathes of the estate, but said: “We regularly look at some of our sites for sale and leaseback opportunities. At present we are only considering this for Kentigern House and Abbey Wood in Bristol [the ministry’s procurement headquarters].
“Any other similar moves will depend on whether they are commercially viable. I can’t give a percentage of the proportion of the estate that we want to sell because it doesn’t exist.”
She added: “The proposed sale and leaseback at Kentigern House is a normal commercial arrangement to realise capital from the estate. It’s an attractive investment opportunity, given the MoD’s covenant as a long-term tenant, and has generated significant interest from financial institutions.” Sphere: Related Content
Caja Madrid Seeking EUR 70 Million Sale Leaseback of 58 Bank Branches in Spain
Expansión (as translated via Google) - September 29, 2009
Caja Madrid has released 58 branches to its network, an operation that provided input at least 70 million euros ($102.4 million) according to BusinessWeek reported yesterday. The Executive Committee of the box was informed of the operation in its meeting yesterday.
In line with what we already have other banks and savings banks Caja Madrid wants to perform, through its private bank Altae a sale & leaseback transaction, ie sale and subsequent lease of the properties. It will target a gain of 40 million.
The lease is for 25 years plus four renewals of five years, after which the lender has an option to repurchase. It also has a preferential option if the tenant wishes to dispose of the investment.
The investor will receive an annual return of 6% plus CPI. The offices up for sale are distributed throughout the national territory and 70% of them are located in provincial capitals.
With this operation, the second box Spanish intends to strengthen its capital and improve its balance sheet, as they have done entities such as Santander, BBVA, Caixa Galicia and Banco Pastor. The sale of the property resulting from their low balance, which reversed a decline in risk-weighted assets, or, put another way, less need for capital.
Many of the Spanish financial institutions have already made, or are considering such operations. BBVA has just closed his for 1.154 million last week.
Others like Sabadell, which also will eventually be raised to sell their entire branch network, given the situation in the housing market have opted to sell in small lots, they're putting mainly private banking clients. In fact, the very Caja Madrid will assess the market response to its offer to decide whether to sell more offices. Its branch network with 2183 totals as of June, of which about half is in Madrid.
Fight with the Electoral Commission
Aguirre and Gallardon returned yesterday to fight in the Electoral Commission when the first box, backed by a large majority, demanded that the president of this body, Fernando Serrano-del Ayuntamiento-is inhibited in the court case initiated by the consistory against implementation of the new law on regional boxes to the electoral process of the entity.
Most claim that Serrano may not represent the Commission, whichever is called to testify at trial. Serrano declined to vote on the issue, not being included in the agenda. The Aguirre had asked to convene another meeting tomorrow. In addition, Esperanza Aguirre, said yesterday that Rodrigo Rato TVE and Ignacio Gonzalez could preside Caja Madrid.
Sell and rent
1. Runs the operation through its private bank and hopes to join Altae 70 million, with gains of 40 million.
2. It stays as a tenant for 25 years renewable for another 20 and secured an option to buy.
3. Many Spanish banks and savings banks have launched similar operations to improve its balance sheet. Sphere: Related Content
Caja Madrid has released 58 branches to its network, an operation that provided input at least 70 million euros ($102.4 million) according to BusinessWeek reported yesterday. The Executive Committee of the box was informed of the operation in its meeting yesterday.
In line with what we already have other banks and savings banks Caja Madrid wants to perform, through its private bank Altae a sale & leaseback transaction, ie sale and subsequent lease of the properties. It will target a gain of 40 million.
The lease is for 25 years plus four renewals of five years, after which the lender has an option to repurchase. It also has a preferential option if the tenant wishes to dispose of the investment.
The investor will receive an annual return of 6% plus CPI. The offices up for sale are distributed throughout the national territory and 70% of them are located in provincial capitals.
With this operation, the second box Spanish intends to strengthen its capital and improve its balance sheet, as they have done entities such as Santander, BBVA, Caixa Galicia and Banco Pastor. The sale of the property resulting from their low balance, which reversed a decline in risk-weighted assets, or, put another way, less need for capital.
Many of the Spanish financial institutions have already made, or are considering such operations. BBVA has just closed his for 1.154 million last week.
Others like Sabadell, which also will eventually be raised to sell their entire branch network, given the situation in the housing market have opted to sell in small lots, they're putting mainly private banking clients. In fact, the very Caja Madrid will assess the market response to its offer to decide whether to sell more offices. Its branch network with 2183 totals as of June, of which about half is in Madrid.
Fight with the Electoral Commission
Aguirre and Gallardon returned yesterday to fight in the Electoral Commission when the first box, backed by a large majority, demanded that the president of this body, Fernando Serrano-del Ayuntamiento-is inhibited in the court case initiated by the consistory against implementation of the new law on regional boxes to the electoral process of the entity.
Most claim that Serrano may not represent the Commission, whichever is called to testify at trial. Serrano declined to vote on the issue, not being included in the agenda. The Aguirre had asked to convene another meeting tomorrow. In addition, Esperanza Aguirre, said yesterday that Rodrigo Rato TVE and Ignacio Gonzalez could preside Caja Madrid.
Sell and rent
1. Runs the operation through its private bank and hopes to join Altae 70 million, with gains of 40 million.
2. It stays as a tenant for 25 years renewable for another 20 and secured an option to buy.
3. Many Spanish banks and savings banks have launched similar operations to improve its balance sheet. Sphere: Related Content
Tesco Ponders Another £400 Million Sale Leaseback of UK Property Portfolio
Estates Gazette Blog - September 28, 2009
The FT fails to mention this morning that former City golden girl Robin Saunders is involved in a deal that will see Tesco insert £400m of its stores into a new fund called Index Linked Properties. Even so, the principle (as well as the principal) behind the fund sounds interesting.
Saunders is the photogenic American who used to make the headlines at WestLB bank before leaving after a tiff in 2003. In 2005 she set up a £1b property fund with dealmaker Paul Bloomfield. Not sure what happened to that. But Saunders runs Clearbrook Capital out of 25, Grosvenor Street. Last summer she announced the firm had a £1b to spend.
The FT says Clearbrook and DTZ are to manage Index Linked Properties: a name which betrays the cautious thinking behind the fund. It will be a closed-end Jersey investment company which will only add properties with index-linked leases to the £400m of stock that Tesco are contributing by way of sale and leaseback.
What can go wrong? Finding more of the same stock perhaps? There are now dozens of nascent property funds, many given to empty boasting of having £1b of "firepower". But here we have a fund that appears to have bagged £400m of safe and solid stock and only wants more of the same. Sounds like a buy. Sphere: Related Content
The FT fails to mention this morning that former City golden girl Robin Saunders is involved in a deal that will see Tesco insert £400m of its stores into a new fund called Index Linked Properties. Even so, the principle (as well as the principal) behind the fund sounds interesting.
Saunders is the photogenic American who used to make the headlines at WestLB bank before leaving after a tiff in 2003. In 2005 she set up a £1b property fund with dealmaker Paul Bloomfield. Not sure what happened to that. But Saunders runs Clearbrook Capital out of 25, Grosvenor Street. Last summer she announced the firm had a £1b to spend.
The FT says Clearbrook and DTZ are to manage Index Linked Properties: a name which betrays the cautious thinking behind the fund. It will be a closed-end Jersey investment company which will only add properties with index-linked leases to the £400m of stock that Tesco are contributing by way of sale and leaseback.
What can go wrong? Finding more of the same stock perhaps? There are now dozens of nascent property funds, many given to empty boasting of having £1b of "firepower". But here we have a fund that appears to have bagged £400m of safe and solid stock and only wants more of the same. Sounds like a buy. Sphere: Related Content
Getty Realty Completes $49 Million Sale Leaseback of 36 Exxon Gas Stations in Washington DC Metro Area
Getty Realty Web Site - September 28, 2009
Getty Realty Corp. (NYSE: GTY) announced today that on Friday September 25, 2009 it acquired 36 Exxon branded gasoline station and convenience store properties located primarily in Prince George’s County, Maryland, for $49.0 million in a sale/leaseback transaction with White Oak Petroleum LLC.
The 36 properties were acquired in a simultaneous transaction among ExxonMobil, White Oak Petroleum and Getty Realty Corp., whereby White Oak Petroleum acquired the properties from ExxonMobil and simultaneously completed a sale/leaseback of all 36 properties with Getty Realty Corp. The unitary triple net lease for the properties between White Oak Petroleum and Getty Realty Corp. has an initial term of 20 years plus renewal options. The properties will continue to be operated under the Exxon brand by the existing independent dealers. White Oak Petroleum is an affiliate of DAG Enterprises, Inc., led by Joe Mamo, one of the largest motor fuel distributors in the DC, Virginia and suburban Maryland area.
Getty Realty Corp. is the largest publicly-traded real estate investment trust in the United States specializing in ownership and leasing of convenience store/gas station properties and petroleum distribution terminals. The Company owns and leases approximately 1,100 properties nationwide. Sphere: Related Content
Getty Realty Corp. (NYSE: GTY) announced today that on Friday September 25, 2009 it acquired 36 Exxon branded gasoline station and convenience store properties located primarily in Prince George’s County, Maryland, for $49.0 million in a sale/leaseback transaction with White Oak Petroleum LLC.
The 36 properties were acquired in a simultaneous transaction among ExxonMobil, White Oak Petroleum and Getty Realty Corp., whereby White Oak Petroleum acquired the properties from ExxonMobil and simultaneously completed a sale/leaseback of all 36 properties with Getty Realty Corp. The unitary triple net lease for the properties between White Oak Petroleum and Getty Realty Corp. has an initial term of 20 years plus renewal options. The properties will continue to be operated under the Exxon brand by the existing independent dealers. White Oak Petroleum is an affiliate of DAG Enterprises, Inc., led by Joe Mamo, one of the largest motor fuel distributors in the DC, Virginia and suburban Maryland area.
Getty Realty Corp. is the largest publicly-traded real estate investment trust in the United States specializing in ownership and leasing of convenience store/gas station properties and petroleum distribution terminals. The Company owns and leases approximately 1,100 properties nationwide. Sphere: Related Content
Tuesday, September 29, 2009
Ferrovial Nearing EUR 43 Million Sale Leaseback of Madrid HQ
Reuters - September 29, 2009
Spanish construction-to-services group Ferrovial (FER.MC) said on Tuesday it had received various offers for its Madrid headquarters on a sale and leaseback arrangement.
The firm was considering the offers for the headquarters in Principe de Vergara, said a spokesman.
"Our core business is not property," he said. Ferrovial is an infrastructure company with operations in 48 countries in a range of sectors including construction, airport, toll road, and car park management and maintenance, and municipal services.
A source close to the deal said Ferrovial wanted about 43 million euros (USD 62.6m) for the building.
A number of Spanish companies, including banks Santander (SAN.MC), BBVA (BBVA.MC) and Pastor (PAS.MC), have sold buildings to raise liquidity, leasing them from the buyer. Sphere: Related Content
Spanish construction-to-services group Ferrovial (FER.MC) said on Tuesday it had received various offers for its Madrid headquarters on a sale and leaseback arrangement.
The firm was considering the offers for the headquarters in Principe de Vergara, said a spokesman.
"Our core business is not property," he said. Ferrovial is an infrastructure company with operations in 48 countries in a range of sectors including construction, airport, toll road, and car park management and maintenance, and municipal services.
A source close to the deal said Ferrovial wanted about 43 million euros (USD 62.6m) for the building.
A number of Spanish companies, including banks Santander (SAN.MC), BBVA (BBVA.MC) and Pastor (PAS.MC), have sold buildings to raise liquidity, leasing them from the buyer. Sphere: Related Content
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