Reuters - June 29, 2010
Supermarket group Tesco Plc (TSCO.L) plans to sell a 30-year benchmark sterling bond backed by rents generated by a portfolio of its supermarkets, an official at one of the banks managing the deal said on Tuesday.
HSBC and Goldman Sachs are managing the (30-year) sale and leaseback deal, which will be issued via Tesco Property Finance 3, the official said.
News of the proposed deal comes less than a year after the blue chip retailer tapped 565 million pounds from the sale of a similar batch of property-backed bonds in September.
That sale followed a similar deal in June 2009, which raised 431 million pounds.
Moody's Investors Service assigned a provisional A3 rating to the bonds, which it expects to total 950.15 million pounds, although the official said the final size had yet to be determined.
The bonds are due to mature in April 2040 and would be supported by a portfolio of 41 supermarkets across the UK, Moody's said.
The proposed issue would have a slightly lower total leverage based on the expected issuance amount compared with its previous deals, it added.
"In addition, in this transaction, the tenant has an option to terminate the occupational leases in September 2020 subject to certain conditions in the lease agreements being fulfilled," said Moody's.
Standard & Poor's and Fitch are expected to rate the bond at A-, the official said.
Moody's has estimated the market value of the portfolio at 853.1 million pounds, taking into account the break option of the leases in September 2020.
(NOTE: Sources indicate the 10-year lease break clause is all or none, the initial unlevered yield on the sale leaseback is 5.0%, and the 30-year fully-amortizing bonds sold for around 170 basis points over 30-year gilts (+/- 4.20% + 1.70% = 5.90%.)
Sphere: Related Content
Wednesday, June 30, 2010
Saturday, June 26, 2010
Diagio Completes $269 Million Sale Leaseback of Napa Valley Wineries
The Press Democrat - June 24, 2010
One of the largest California wine deals in years was announced Thursday, not that wine drinkers will ever taste the difference.
Diageo, the London-based alcohol conglomerate, revealed that it is selling most of its Napa Valley wineries and vineyards to an investment firm for $269 million, and then turning around and leasing them back for 20 years.
The sale-leaseback arrangement between Diageo and Realty Income Corp., an Escondido-based real estate investment trust, is the largest such transaction in the U.S. wine business, one that will help Diageo raise cash without impacting its wine operations, said industry analyst Robert Nicholson.
“It's a very meaningful development and it's a very smart move by Diageo,” said Nicholson, a principal at International Wine Associates, a Healdsburg consulting firm
The deal involves two of the best known Napa wineries. The historic Beaulieu Vineyards was founded in 1900 in Rutherford and, under the guidance of the famed viticulturalist André Tchelistcheff, helped spawn the valley's fine-wine renaissance.
Sterling Vineyards, the white stucco winery on a bluff south of Calistoga, was founded in 1964 by British international paper broker Peter Newton and has become one of Napa Valley's most popular tourist destinations.
Diageo Chateau & Estate Wines will continue to manage and operate the properties and will retain ownership and marketing of the wine brands. In return, it will enter into 20-leases for the buildings and 2,000 acres of vineyards. When completed, Diageo will become Realty Income's second-biggest tenant.
The transaction allows Diageo, which has struggled during the recession, to raise cash and increase returns for shareholders.
“We know that to remain competitive in this environment we need to rethink our whole wine business to be more nimble and entrepreneurial,” said Zsoka McDonald, a company spokeswoman. “This is about ensuring the long-term strength of our North America wine business and the health of our core wine brands.”
Diageo's wine and spirits portfolios tend toward the high-end, and it has been hit hard as the alcohol business has proven to be less recession-proof than many thought. It owns such powerhouse brands as Johnnie Walker whiskey, Smirnoff vodka and Guinness stout.
Its wine sales fell 7 percent in 2009. The company announced in May it was restructuring U.S. wine operations, laying off about 14 percent of its workforce and would focus on core wine brands, including Beaulieu Vineyard, Sterling Vineyards, Chalone, Acacia, Rosenblum Cellars and Provenance.
The chief benefit for Diageo is that is can raise cash while paying reasonable leases on the properties, said Joe Ciatti, of Zepponi & Company of Santa Rosa.
“Diageo's saying ‘We've got these wine assets that really don't produce a lot of return for us, and it's better for us to sell those off,' ” Ciatti said.
He said he understood the leases would generate a 6 percent return for Realty Income Corp., a conservative return, he said.
Ciatti ran his own wine industry focused REIT, Vintage Wine Trust, from 2005 to 2008, when he was forced to liquidate it because the returns weren't what investors had hoped.
VinREIT in St. Helena is facing challenges, as well, with several of its properties facing foreclosure.
Nicholson, however, said this deal should work well for Realty Income Corp because it got great properties with a tenant that isn't going anywhere.
“This REIT is smart. They know what they are doing and got some blue-chip assets,” he said.
And wine consumers, whether visiting the Napa tasting rooms or buying the wines in supermarkets, won't notice a difference, Nicholson said.
“This is the same as the way Marriott doesn't own their hotels,” Nicholson said. Sphere: Related Content
One of the largest California wine deals in years was announced Thursday, not that wine drinkers will ever taste the difference.
Diageo, the London-based alcohol conglomerate, revealed that it is selling most of its Napa Valley wineries and vineyards to an investment firm for $269 million, and then turning around and leasing them back for 20 years.
The sale-leaseback arrangement between Diageo and Realty Income Corp., an Escondido-based real estate investment trust, is the largest such transaction in the U.S. wine business, one that will help Diageo raise cash without impacting its wine operations, said industry analyst Robert Nicholson.
“It's a very meaningful development and it's a very smart move by Diageo,” said Nicholson, a principal at International Wine Associates, a Healdsburg consulting firm
The deal involves two of the best known Napa wineries. The historic Beaulieu Vineyards was founded in 1900 in Rutherford and, under the guidance of the famed viticulturalist André Tchelistcheff, helped spawn the valley's fine-wine renaissance.
Sterling Vineyards, the white stucco winery on a bluff south of Calistoga, was founded in 1964 by British international paper broker Peter Newton and has become one of Napa Valley's most popular tourist destinations.
Diageo Chateau & Estate Wines will continue to manage and operate the properties and will retain ownership and marketing of the wine brands. In return, it will enter into 20-leases for the buildings and 2,000 acres of vineyards. When completed, Diageo will become Realty Income's second-biggest tenant.
The transaction allows Diageo, which has struggled during the recession, to raise cash and increase returns for shareholders.
“We know that to remain competitive in this environment we need to rethink our whole wine business to be more nimble and entrepreneurial,” said Zsoka McDonald, a company spokeswoman. “This is about ensuring the long-term strength of our North America wine business and the health of our core wine brands.”
Diageo's wine and spirits portfolios tend toward the high-end, and it has been hit hard as the alcohol business has proven to be less recession-proof than many thought. It owns such powerhouse brands as Johnnie Walker whiskey, Smirnoff vodka and Guinness stout.
Its wine sales fell 7 percent in 2009. The company announced in May it was restructuring U.S. wine operations, laying off about 14 percent of its workforce and would focus on core wine brands, including Beaulieu Vineyard, Sterling Vineyards, Chalone, Acacia, Rosenblum Cellars and Provenance.
The chief benefit for Diageo is that is can raise cash while paying reasonable leases on the properties, said Joe Ciatti, of Zepponi & Company of Santa Rosa.
“Diageo's saying ‘We've got these wine assets that really don't produce a lot of return for us, and it's better for us to sell those off,' ” Ciatti said.
He said he understood the leases would generate a 6 percent return for Realty Income Corp., a conservative return, he said.
Ciatti ran his own wine industry focused REIT, Vintage Wine Trust, from 2005 to 2008, when he was forced to liquidate it because the returns weren't what investors had hoped.
VinREIT in St. Helena is facing challenges, as well, with several of its properties facing foreclosure.
Nicholson, however, said this deal should work well for Realty Income Corp because it got great properties with a tenant that isn't going anywhere.
“This REIT is smart. They know what they are doing and got some blue-chip assets,” he said.
And wine consumers, whether visiting the Napa tasting rooms or buying the wines in supermarkets, won't notice a difference, Nicholson said.
“This is the same as the way Marriott doesn't own their hotels,” Nicholson said. Sphere: Related Content
US Dept of Justice HQ Sold for $305 Million
Washington Business Journal - June 24, 2010
The Northwestern Mutual Life Insurance Co. has closed on a deal to buy StonebridgeCarras LLC and Walton Street Capital LLC's Two Constitution Square for $305 million.
The 589,000-square-foot project, 145 N St. NE in the NoMa neighborhood behind Union Station, rises to 12 stories and is fully leased to the Department of Justice.
The Department of Justice will fill the building under a 15-year lease and complete its transition into the project in the fourth quarter of the year.
The development team decided to put the project on the market in January because of its long-term lease to the federal government, arguably the most stable tenant in the market.
“It was perfect for what people were looking for in the market. We wanted to find a buyer for a long-term flat deal and in today's world, it became a valuable asset,” said Doug Firstenberg, principal of StonebridgeCarras. “The market is not that deep for someone who can buy a single asset for $300 million.”
Bethesda-based StonebridgeCarras and Chicago-based Walton Street Capital have delivered four of eight floors of Two Constitution Square, part of a larger 2.5-million-square-foot project.
Firstenberg said the price the team netted — about $518 per square foot — was close to what he imagined for the project at its conception, but said he did not expect to sell the project before it delivered.
“This was not in the business plan,” Firstenberg said, laughing.
The first phase of the entire Constitution Square project will deliver a 440-unit apartment building that will open in September, as well as a 50,000-square-foot Harris Teeter that will open in December.
TD Bank, Potbellys Sandwich Works, Georgetown Valet dry cleaner, Constitution Cafe and Tynan Coffee & Tea will fill part of the project's 30,000 square feet of retail and a 204-room Hilton Garden Inn will deliver in the first quarter of 2011.
One Constitution Square, the project's sister building, includes 329,251 square feet and is entirely leased to the U.S. General Services Administration for its headquarters. The development team will sell that project eventually, but opted to put Two Constitution Square on the market first because it had a longer lease than the GSA's, Firstenberg said. The GSA lease is for seven years and gives the federal government the ability to cancel it after five years.
StonebridgeCarras Management will continue to manage the Two Constitution Square building, which is shooting for Leadership in Energy and Environmental Design Platinum certification.
Bill Collins of Cassidy Turley represented the seller in the deal. Cambridge Property Group represented Northwestern Mutual. Sphere: Related Content
The Northwestern Mutual Life Insurance Co. has closed on a deal to buy StonebridgeCarras LLC and Walton Street Capital LLC's Two Constitution Square for $305 million.
The 589,000-square-foot project, 145 N St. NE in the NoMa neighborhood behind Union Station, rises to 12 stories and is fully leased to the Department of Justice.
The Department of Justice will fill the building under a 15-year lease and complete its transition into the project in the fourth quarter of the year.
The development team decided to put the project on the market in January because of its long-term lease to the federal government, arguably the most stable tenant in the market.
“It was perfect for what people were looking for in the market. We wanted to find a buyer for a long-term flat deal and in today's world, it became a valuable asset,” said Doug Firstenberg, principal of StonebridgeCarras. “The market is not that deep for someone who can buy a single asset for $300 million.”
Bethesda-based StonebridgeCarras and Chicago-based Walton Street Capital have delivered four of eight floors of Two Constitution Square, part of a larger 2.5-million-square-foot project.
Firstenberg said the price the team netted — about $518 per square foot — was close to what he imagined for the project at its conception, but said he did not expect to sell the project before it delivered.
“This was not in the business plan,” Firstenberg said, laughing.
The first phase of the entire Constitution Square project will deliver a 440-unit apartment building that will open in September, as well as a 50,000-square-foot Harris Teeter that will open in December.
TD Bank, Potbellys Sandwich Works, Georgetown Valet dry cleaner, Constitution Cafe and Tynan Coffee & Tea will fill part of the project's 30,000 square feet of retail and a 204-room Hilton Garden Inn will deliver in the first quarter of 2011.
One Constitution Square, the project's sister building, includes 329,251 square feet and is entirely leased to the U.S. General Services Administration for its headquarters. The development team will sell that project eventually, but opted to put Two Constitution Square on the market first because it had a longer lease than the GSA's, Firstenberg said. The GSA lease is for seven years and gives the federal government the ability to cancel it after five years.
StonebridgeCarras Management will continue to manage the Two Constitution Square building, which is shooting for Leadership in Energy and Environmental Design Platinum certification.
Bill Collins of Cassidy Turley represented the seller in the deal. Cambridge Property Group represented Northwestern Mutual. Sphere: Related Content
Friday, June 18, 2010
Los Angeles Agency Considers $300 Million Sale Leaseback of HQ
Los Angeles Times - June 14, 2010
The top executive at the Los Angeles Department of Water and Power, the nation's largest municipal utility, is laying the groundwork for a sale of some of the agency's biggest assets — including the utility's iconic downtown Los Angeles headquarters — as it seeks to cover rising costs without raising electricity rates.
DWP Interim General Manager Austin Beutner said Monday that he would not pursue any additional power rate increases for the remainder of the calendar year. But that decision would come with a series of tradeoffs, he said.
Beutner, a former investment banker, is hoping to generate $150 million by selling city-owned natural gas reserves in Wyoming. He is looking at unloading the city's stake in an Arizona coal-fired power plant years ahead of schedule. And he said he is "serious" about trying to sell the utility's 17-story office building on Hope Street to a private buyer, who would lease offices back to the agency on a long-term basis.
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"It's real simple. If you can't raise rates, what are you going to do?" Beutner said.
"Do you want to own a building, or do you want to have renewable energy?" he said. "You pick. I don't care. If you like the building better, that's fine. You can't have both. So policy is about making an informed choice."
The various proposals are part of Beutner's new strategic plan for the nation's largest municipal utility, which will be presented to Mayor Antonio Villaraigosa's five-member DWP board Tuesday. Beutner said the proceeds of the cost-cutting efforts would help pay for upgrading the DWP's aging infrastructure, comply with new government regulations and push ahead with Villaraigosa's directive to get more energy from wind, solar and geothermal sources.
The DWP headquarters, across from the Music Center in downtown, opened in 1965 and was designed by A.C. Martin and Associates. Beutner said the sale of the headquarters could generate $300 million.
Councilman Tom LaBonge voiced strong doubts about selling off critical assets, particularly the DWP headquarters, which is named after former City Council President John Ferraro — LaBonge's boss for 16 years.
"Mr. Beutner is obviously a much better businessman than I," said LaBonge, who voted against electricity rate increases earlier this year. "But as a public official, I wouldn't want to see us sell assets that we might have to buy back again."
Villaraigosa got into a major standoff with the City Council in March over a series of proposed increases that would have boosted residential rates from 9% to 28%, depending on the household. So far, the council has approved a 4.8% increase effective July 1.
In the wake of that dispute, Beutner decided to hold the line on future increases for at least nine months, partly by cutting expenses and partly by tapping DWP assets. Beutner hopes to cancel plans for a new billing office in Van Nuys — a move that could save $20 million — and is weighing a possible sale of 100 acres of property that the DWP owns in Malibu.
The DWP is already scheduled to divest itself of a 21% stake in the Navajo Generating Station, a coal-fired power facility in Arizona, by 2019. But Beutner said he would act far more swiftly to sell that stake, a move that could generate up to $500 million.
One possibility would be to sell the stake within two years while gradually scaling back the city's use of coal from that facility, he said.
That strategy drew strong praise from Rhonda Mills, Southern California program director of the Clean Power Campaign, an environmental advocacy group. Mills said the Navajo plant would lose value as new environmental regulations are put into effect across the nation.
"It will cost us more in the future than if we get out of it now," she said.
Beutner's long-term strategic plan represents the latest shift in direction for a utility that has had five general managers in three years. During much of that time, Villaraigosa has promised to ensure that the DWP gets 20% of its power from renewable energy by Dec. 31 and 40% of its power from those sources by 2020.
By contrast, Beutner said he would focus less on Villaraigosa's numerical target for renewable energy and more on an overall goal: cutting the utility's carbon emissions in half.
Former DWP General Manager H. David Nahai said he retained Goldman Sachs to study the possibility of selling the city's stake in Navajo and purchasing back its power. Still, he voiced dismay at the notion of a lease-back of DWP headquarters.
"We're going to sell a gem of a piece of real estate, an iconic building, in the lowest real estate market since the Great Depression? That does not make sense," he said.
As part of his DWP strategic plan, Beutner said he wants a "ratepayer advocate" to serve as a watchdog on behalf of the utility's customers. That advocate should be housed in the office of City Administrative Officer Miguel Santana, the budget advisor to Villaraigosa and the council, Beutner said.
That marked a change from two weeks ago, when Beutner said he wanted the ratepayer advocate to serve in the office of City Controller Wendy Greuel. Asked about that earlier statement, Beutner said he "may have misspoken."
A June 7 DWP news release also said the utility was working with Greuel to create the ratepayer watchdog. Days later, Greuel released a report sharply criticizing the DWP for threatening to withhold $73 million from the city's budget unless it received its planned rate increase.
Beutner said that having a ratepayer advocate in the controller's office would "politicize" the position. Greuel, in turn, said Beutner's statement on the ratepayer advocate is "the exact opposite" of what he told her two weeks ago.
"It's really obvious that his position changed after I released a critical review of the Department of Water and Power," Greuel said. "That's why this position needs to be independent." Sphere: Related Content
The top executive at the Los Angeles Department of Water and Power, the nation's largest municipal utility, is laying the groundwork for a sale of some of the agency's biggest assets — including the utility's iconic downtown Los Angeles headquarters — as it seeks to cover rising costs without raising electricity rates.
DWP Interim General Manager Austin Beutner said Monday that he would not pursue any additional power rate increases for the remainder of the calendar year. But that decision would come with a series of tradeoffs, he said.
Beutner, a former investment banker, is hoping to generate $150 million by selling city-owned natural gas reserves in Wyoming. He is looking at unloading the city's stake in an Arizona coal-fired power plant years ahead of schedule. And he said he is "serious" about trying to sell the utility's 17-story office building on Hope Street to a private buyer, who would lease offices back to the agency on a long-term basis.
» Don't miss a thing. Get breaking news alerts delivered to your inbox.
"It's real simple. If you can't raise rates, what are you going to do?" Beutner said.
"Do you want to own a building, or do you want to have renewable energy?" he said. "You pick. I don't care. If you like the building better, that's fine. You can't have both. So policy is about making an informed choice."
The various proposals are part of Beutner's new strategic plan for the nation's largest municipal utility, which will be presented to Mayor Antonio Villaraigosa's five-member DWP board Tuesday. Beutner said the proceeds of the cost-cutting efforts would help pay for upgrading the DWP's aging infrastructure, comply with new government regulations and push ahead with Villaraigosa's directive to get more energy from wind, solar and geothermal sources.
The DWP headquarters, across from the Music Center in downtown, opened in 1965 and was designed by A.C. Martin and Associates. Beutner said the sale of the headquarters could generate $300 million.
Councilman Tom LaBonge voiced strong doubts about selling off critical assets, particularly the DWP headquarters, which is named after former City Council President John Ferraro — LaBonge's boss for 16 years.
"Mr. Beutner is obviously a much better businessman than I," said LaBonge, who voted against electricity rate increases earlier this year. "But as a public official, I wouldn't want to see us sell assets that we might have to buy back again."
Villaraigosa got into a major standoff with the City Council in March over a series of proposed increases that would have boosted residential rates from 9% to 28%, depending on the household. So far, the council has approved a 4.8% increase effective July 1.
In the wake of that dispute, Beutner decided to hold the line on future increases for at least nine months, partly by cutting expenses and partly by tapping DWP assets. Beutner hopes to cancel plans for a new billing office in Van Nuys — a move that could save $20 million — and is weighing a possible sale of 100 acres of property that the DWP owns in Malibu.
The DWP is already scheduled to divest itself of a 21% stake in the Navajo Generating Station, a coal-fired power facility in Arizona, by 2019. But Beutner said he would act far more swiftly to sell that stake, a move that could generate up to $500 million.
One possibility would be to sell the stake within two years while gradually scaling back the city's use of coal from that facility, he said.
That strategy drew strong praise from Rhonda Mills, Southern California program director of the Clean Power Campaign, an environmental advocacy group. Mills said the Navajo plant would lose value as new environmental regulations are put into effect across the nation.
"It will cost us more in the future than if we get out of it now," she said.
Beutner's long-term strategic plan represents the latest shift in direction for a utility that has had five general managers in three years. During much of that time, Villaraigosa has promised to ensure that the DWP gets 20% of its power from renewable energy by Dec. 31 and 40% of its power from those sources by 2020.
By contrast, Beutner said he would focus less on Villaraigosa's numerical target for renewable energy and more on an overall goal: cutting the utility's carbon emissions in half.
Former DWP General Manager H. David Nahai said he retained Goldman Sachs to study the possibility of selling the city's stake in Navajo and purchasing back its power. Still, he voiced dismay at the notion of a lease-back of DWP headquarters.
"We're going to sell a gem of a piece of real estate, an iconic building, in the lowest real estate market since the Great Depression? That does not make sense," he said.
As part of his DWP strategic plan, Beutner said he wants a "ratepayer advocate" to serve as a watchdog on behalf of the utility's customers. That advocate should be housed in the office of City Administrative Officer Miguel Santana, the budget advisor to Villaraigosa and the council, Beutner said.
That marked a change from two weeks ago, when Beutner said he wanted the ratepayer advocate to serve in the office of City Controller Wendy Greuel. Asked about that earlier statement, Beutner said he "may have misspoken."
A June 7 DWP news release also said the utility was working with Greuel to create the ratepayer watchdog. Days later, Greuel released a report sharply criticizing the DWP for threatening to withhold $73 million from the city's budget unless it received its planned rate increase.
Beutner said that having a ratepayer advocate in the controller's office would "politicize" the position. Greuel, in turn, said Beutner's statement on the ratepayer advocate is "the exact opposite" of what he told her two weeks ago.
"It's really obvious that his position changed after I released a critical review of the Department of Water and Power," Greuel said. "That's why this position needs to be independent." Sphere: Related Content
Thursday, June 03, 2010
7-Eleven Seeking $40 Million Sale Leaseback of 24 U.S. Convenience Stores
CSP Information Group - June 3, 2010
7-Eleven Inc. has retained Mehran Foroughi, senior vice president for Colliers International, the third-largest real-estate services organization globally, to sell 24 retail properties anchored by 7-Eleven. The portfolio, valued at approximately $40 million, is owned and operated by 7-Eleven.
The 7-Eleven anchored properties, primarily located in California and throughout the United States, all include at least one co-tenant, with AutoZone as a co-tenant in some locations. All of the 7-Eleven convenience store leases are triple net lease (NNN) and guaranteed by 7-Eleven.
"Colliers International was retained by 7-Eleven as the listing broker because of our aggressive, targeted marketing platform," said Foroughi, the exclusive listing agent for the portfolio. "We are marketing the properties as a portfolio, although offers on individual sites are also welcome."
Based in Dallas, 7-Eleven is the world's largest operator, franchisor and licensor of convenience stores with more than 37,600 units worldwide of which more than 8,100 are in North America.
The announcement follows the early March sale of a portfolio of a dozen 7-Eleven stores to several buyers for a combined value of more than $20 million. The stores retained the 7-Eleven brand in what were essentially sale-leaseback arrangements. "Their intention is not to leave, their intention was just to unload this property as a landlord," Colliers representative Mehran Foroughi told CSP Daily News about the Dallas-based retail giant at the time.
The 12 locations in Nevada, Texas and Virginia were acquired from 7-Eleven through all-cash deals.
Foroughi, said that five stores in the Dallas metropolitan area were sold to a California buyer. The six stores in Virginia were claimed by three individual buyers and the lone store in Las Vegas ended up in the portfolio of a Dallas-based company. Sphere: Related Content
7-Eleven Inc. has retained Mehran Foroughi, senior vice president for Colliers International, the third-largest real-estate services organization globally, to sell 24 retail properties anchored by 7-Eleven. The portfolio, valued at approximately $40 million, is owned and operated by 7-Eleven.
The 7-Eleven anchored properties, primarily located in California and throughout the United States, all include at least one co-tenant, with AutoZone as a co-tenant in some locations. All of the 7-Eleven convenience store leases are triple net lease (NNN) and guaranteed by 7-Eleven.
"Colliers International was retained by 7-Eleven as the listing broker because of our aggressive, targeted marketing platform," said Foroughi, the exclusive listing agent for the portfolio. "We are marketing the properties as a portfolio, although offers on individual sites are also welcome."
Based in Dallas, 7-Eleven is the world's largest operator, franchisor and licensor of convenience stores with more than 37,600 units worldwide of which more than 8,100 are in North America.
The announcement follows the early March sale of a portfolio of a dozen 7-Eleven stores to several buyers for a combined value of more than $20 million. The stores retained the 7-Eleven brand in what were essentially sale-leaseback arrangements. "Their intention is not to leave, their intention was just to unload this property as a landlord," Colliers representative Mehran Foroughi told CSP Daily News about the Dallas-based retail giant at the time.
The 12 locations in Nevada, Texas and Virginia were acquired from 7-Eleven through all-cash deals.
Foroughi, said that five stores in the Dallas metropolitan area were sold to a California buyer. The six stores in Virginia were claimed by three individual buyers and the lone store in Las Vegas ended up in the portfolio of a Dallas-based company. Sphere: Related Content
Tuesday, June 01, 2010
Abba Enters EUR 33 Million Sale Leaseback of Hotel in Madrid
PropertyEU - June 1, 2010
Hotel chain Abba has sold the Abba Castilla Plaza de Madrid in a EUR 33 mln sale-and-leaseback transaction. The deal reflects a yield of over 7%. The buyers are a consortium of private investors led by Grupo Milenium.
The four-star hotel offers 228 rooms and is located in the northern part of the city. As part of the agreement, Abba has signed an option to buy the hotel back after 10 years.
Aguirre Newman advised Abba, CB Richard Ellis acted for the buyers. Sphere: Related Content
Hotel chain Abba has sold the Abba Castilla Plaza de Madrid in a EUR 33 mln sale-and-leaseback transaction. The deal reflects a yield of over 7%. The buyers are a consortium of private investors led by Grupo Milenium.
The four-star hotel offers 228 rooms and is located in the northern part of the city. As part of the agreement, Abba has signed an option to buy the hotel back after 10 years.
Aguirre Newman advised Abba, CB Richard Ellis acted for the buyers. Sphere: Related Content
State of Arizona Seeking $300 Million Sale Leaseback of State Owned Properties to Ease Budget Deficit
The Arizona Republic - June 1, 2010
More state buildings go up for sale next week, as officials hope to raise $300 million by selling and then leasing back the schools for deaf and blind children, more state prisons and other structures in an attempt to raise $300 million.
It's the second time this year that the state has sold off buildings to help close the state budget deficit. A sale-leaseback in January raised $735.4 million for the state. The healthy response prompted lawmakers to authorize a second sale.
The sale will be conducted June 8, and investors will be required to make purchases in $5,000 installments, according to information on the Arizona Department of Administration's Web site.
Investors must work through a list of underwriters provided by the state.
The sale-leaseback comes on the heels of last week's action in which the state borrowed $450 million against the proceeds of future state Lottery revenues. Those bonds carried an interest rate of 4.27 percent.
Next week's sale-leaseback is expected to carry a similar interest rate, said Michael Smarik, deputy state comptroller, although the rate won't be set until next week. Sphere: Related Content
More state buildings go up for sale next week, as officials hope to raise $300 million by selling and then leasing back the schools for deaf and blind children, more state prisons and other structures in an attempt to raise $300 million.
It's the second time this year that the state has sold off buildings to help close the state budget deficit. A sale-leaseback in January raised $735.4 million for the state. The healthy response prompted lawmakers to authorize a second sale.
The sale will be conducted June 8, and investors will be required to make purchases in $5,000 installments, according to information on the Arizona Department of Administration's Web site.
Investors must work through a list of underwriters provided by the state.
The sale-leaseback comes on the heels of last week's action in which the state borrowed $450 million against the proceeds of future state Lottery revenues. Those bonds carried an interest rate of 4.27 percent.
Next week's sale-leaseback is expected to carry a similar interest rate, said Michael Smarik, deputy state comptroller, although the rate won't be set until next week. Sphere: Related Content
Greek Government Seeking Sale Leaseback of up to EUR 1 Billion in State Owned Property
Greek Reporter - May 31, 2010
From what is seems, the green light has given in order for the new privatization program of state owned enterprises. Over 1 billion euros in revenue is expected if the program is put into action.
In an pushed meeting, which took place last Saturday under the chairmanship of the Minister for Finance, Mr. G. Papakonstantinou with the participation of the Minister’s of Infrastructure, Energy and Tourism, plus twelve general secretaries of different ministries, accepted the plan will present it to the members of the MP’s Board.
According to each enterprise there will be, a percentage sale or the total of the company, or the quest of “strategic investors”, or the opportunity to let public property a specified period of time.
The new privatization program states the following:
Percentage sale to citizens, without, rulling out the possibility of also passing the management along also.
Percentage sale of the company. In the time being, the scenario of further equity is removed form the table of discussion, as the economic team believes that this move is not appropriate during this period, whereas the stock market values are low.
DEPA: Will give away a percentage, as also, the management to private individuals.
Casinos: Shall be privatized
Airports – Ports – Highways: Property: Are decided to proceed with the waiver holding to individuals for 30 or 40 years (sale & lease back). Sphere: Related Content
From what is seems, the green light has given in order for the new privatization program of state owned enterprises. Over 1 billion euros in revenue is expected if the program is put into action.
In an pushed meeting, which took place last Saturday under the chairmanship of the Minister for Finance, Mr. G. Papakonstantinou with the participation of the Minister’s of Infrastructure, Energy and Tourism, plus twelve general secretaries of different ministries, accepted the plan will present it to the members of the MP’s Board.
According to each enterprise there will be, a percentage sale or the total of the company, or the quest of “strategic investors”, or the opportunity to let public property a specified period of time.
The new privatization program states the following:
Percentage sale to citizens, without, rulling out the possibility of also passing the management along also.
Percentage sale of the company. In the time being, the scenario of further equity is removed form the table of discussion, as the economic team believes that this move is not appropriate during this period, whereas the stock market values are low.
DEPA: Will give away a percentage, as also, the management to private individuals.
Casinos: Shall be privatized
Airports – Ports – Highways: Property: Are decided to proceed with the waiver holding to individuals for 30 or 40 years (sale & lease back). Sphere: Related Content
Sunday, May 30, 2010
JV Proposes Tax Exempt Financing to Fund $2.2 Billion Sale Leaseback of State of CA Office Buildings
NASDAQ.com - May 21, 1010
AEW Capital Management and the California Municipal Finance Authority have submitted a unique bid to acquire an 11-property portfolio of office buildings from the state of California. The partnership, which is one of seventeen potential buyers that submitted second-round bids, gave the only proposal that aims to keep the properties in the public domain. The portfolio is valued at about $2.2 billion.
In the proposal, CMFA would acquire the portfolio via tax-exempt lease revenue bonds that would pay about 5%. AEW, which would not put any capital into the transaction, would act as the asset manager while a trustee would be appointed to receive the lease payments on behalf of the bond holders. A brokerage firm would be hired to manage the properties.
This structure would allow the proceeds from any future sale to stay in the public domain. At the time of a sale, roughly 50% of proceeds would be given back to the CMFA's constituent local authorities and the rest would go to various affiliated non-profit organizations.
The rest of the offers were for more standard sale-lease backs.
Although there is a 2004 California law that prohibits state-affiliated public entities from assuming additional long-term debt, CMFA is a Joint Powers of Authority that is focused on financing economic development and charitable initiatives for local authorities and therefore is exempt from the law.
A response is expected this week, with the state selecting three to five final bidders. If AEW's proposal were selected to go forward, the individual jurisdictions where the properties are located would have to approve the transaction. Sphere: Related Content
AEW Capital Management and the California Municipal Finance Authority have submitted a unique bid to acquire an 11-property portfolio of office buildings from the state of California. The partnership, which is one of seventeen potential buyers that submitted second-round bids, gave the only proposal that aims to keep the properties in the public domain. The portfolio is valued at about $2.2 billion.
In the proposal, CMFA would acquire the portfolio via tax-exempt lease revenue bonds that would pay about 5%. AEW, which would not put any capital into the transaction, would act as the asset manager while a trustee would be appointed to receive the lease payments on behalf of the bond holders. A brokerage firm would be hired to manage the properties.
This structure would allow the proceeds from any future sale to stay in the public domain. At the time of a sale, roughly 50% of proceeds would be given back to the CMFA's constituent local authorities and the rest would go to various affiliated non-profit organizations.
The rest of the offers were for more standard sale-lease backs.
Although there is a 2004 California law that prohibits state-affiliated public entities from assuming additional long-term debt, CMFA is a Joint Powers of Authority that is focused on financing economic development and charitable initiatives for local authorities and therefore is exempt from the law.
A response is expected this week, with the state selecting three to five final bidders. If AEW's proposal were selected to go forward, the individual jurisdictions where the properties are located would have to approve the transaction. Sphere: Related Content
Wednesday, May 19, 2010
Banca Monte dei Paschi di Siena Seeking EUR 1.8 Billion Sale Leaseback of Italian Property Portfolio
PropertyEU - May 19, 2010
French insurer AXA Real Estate is taking part in a consortium that is bidding for EUR 1.8 bn worth of property from Siena-based bank Banca Monte dei Paschi di Siena (MPS). Under the sale-and-leaseback plan, the Italian bank would retain a 30% stake in the portfolio with the rest split between Italian property company Sansedoni (40%), AXA Real Estate (20%) and investment bank Mediobanca (10%).
MPS expects to post a capital gain of EUR 443 mln from the sale which is aimed at boosting the bank's capital and liquidity ratios. During the presentation of the bank's first-quarter results, Chief Executive Alberto Vigni said he was 'confident' that the deal would be completed this year.
The lender is currently discussing the sale and leaseback of the property with the Bank of Italy. The operation will see MPS transfer the assets to a new company, Perimetro Gestione Proprietà Immobiliari, which will be seeking new investors in the coming months.
The sale of MPS' real estate was first announced in late 2008 but came to a halt last year due to a change in legislation introduced by the Bank of Italy.
MPS is also working on two other real estate asset disposals. In March, MPS put around 370 bank branches worth around EUR 700 mln on the market and said it was planning to sell around EUR 500 mln worth of properties consisting of 266 branches no longer strategic. Sphere: Related Content
French insurer AXA Real Estate is taking part in a consortium that is bidding for EUR 1.8 bn worth of property from Siena-based bank Banca Monte dei Paschi di Siena (MPS). Under the sale-and-leaseback plan, the Italian bank would retain a 30% stake in the portfolio with the rest split between Italian property company Sansedoni (40%), AXA Real Estate (20%) and investment bank Mediobanca (10%).
MPS expects to post a capital gain of EUR 443 mln from the sale which is aimed at boosting the bank's capital and liquidity ratios. During the presentation of the bank's first-quarter results, Chief Executive Alberto Vigni said he was 'confident' that the deal would be completed this year.
The lender is currently discussing the sale and leaseback of the property with the Bank of Italy. The operation will see MPS transfer the assets to a new company, Perimetro Gestione Proprietà Immobiliari, which will be seeking new investors in the coming months.
The sale of MPS' real estate was first announced in late 2008 but came to a halt last year due to a change in legislation introduced by the Bank of Italy.
MPS is also working on two other real estate asset disposals. In March, MPS put around 370 bank branches worth around EUR 700 mln on the market and said it was planning to sell around EUR 500 mln worth of properties consisting of 266 branches no longer strategic. Sphere: Related Content
Caja Madrid Agrees to EUR 108 Million Sale Leaseback of Office & Data Center in Madrid
europapress.es (as translated by Google) - May 18, 2010
Caja Madrid has reached an agreement on 'sale and leaseback' in Las Rozas (Madrid) with the German fund SEB ImmoPortfolio Target Return Fund, the manager of SEB Asset Management, by which the entity obtained a revenue of 108 million and a total capital gain of EUR 48 million, reported the state.
The commitment of the lease is 30 years. Caja Madrid use the income to strengthen its capital ratios and improve their creditworthiness, in line with the strategy followed during the first quarter of the year, which ran the sale and lease back 83 branches with total capital gains obtained from 55.2 million euros.
The transaction Caja Madrid reserve a right of first offer over the lease period and in case of transfer by the lessee.
The building, which houses the computer-based Caja Madrid, is in the Madrid suburb of Las Rozas, is National Architecture Award and has an area of 43,700 square meters with 537 parking spaces.
The property is part of a business park established in the mid-nineties with excellent access and communications in the northwest axis of the Community of Madrid. Sphere: Related Content
Caja Madrid has reached an agreement on 'sale and leaseback' in Las Rozas (Madrid) with the German fund SEB ImmoPortfolio Target Return Fund, the manager of SEB Asset Management, by which the entity obtained a revenue of 108 million and a total capital gain of EUR 48 million, reported the state.
The commitment of the lease is 30 years. Caja Madrid use the income to strengthen its capital ratios and improve their creditworthiness, in line with the strategy followed during the first quarter of the year, which ran the sale and lease back 83 branches with total capital gains obtained from 55.2 million euros.
The transaction Caja Madrid reserve a right of first offer over the lease period and in case of transfer by the lessee.
The building, which houses the computer-based Caja Madrid, is in the Madrid suburb of Las Rozas, is National Architecture Award and has an area of 43,700 square meters with 537 parking spaces.
The property is part of a business park established in the mid-nineties with excellent access and communications in the northwest axis of the Community of Madrid. Sphere: Related Content
Marks & Spencer Enters £300 Million Sale Leaseback of UK Store Portfolio to Help Fund Pension Deficit
MSN Money UK - May 13, 2010
High street chain Marks and Spencer has agreed a pension funding package worth £800 million in a bid to close the scheme's deficit, it has been announced.
The group's defined benefit scheme, which has 123,000 members, faced a £1.3 billion shortfall when its last valuation was carried out at the end of March last year.
In order to close this, M&S has agreed to pay in an additional £376 million between now and 2018.
It will contribute £35 million a year for the next three years, rising to £60 million for the remainder of the period, on top of the regular contributions it already makes.
The fund will also benefit from a further £300 million through an additional interest in property owned by M&S.
Under the partnership, an interest in property, including stores, is transferred to the pension scheme and then leased back by M&S, providing the pension with an annual income.
The partnership is already generating around £72 million a year for the scheme until 2022, while the latest transfer will contribute a further £36 million annually for 15 years from 2017.
The group will also transfer assets worth £124 million to the pension scheme from existing US dollar hedge contracts.
The £500 million difference between the current deficit and the additional contributions M&S plans to make should be made up by investment returns on the scheme's existing assets.
M&S said the funding plan should not have a "material impact" on the group's net assets or its income statement. Sphere: Related Content
High street chain Marks and Spencer has agreed a pension funding package worth £800 million in a bid to close the scheme's deficit, it has been announced.
The group's defined benefit scheme, which has 123,000 members, faced a £1.3 billion shortfall when its last valuation was carried out at the end of March last year.
In order to close this, M&S has agreed to pay in an additional £376 million between now and 2018.
It will contribute £35 million a year for the next three years, rising to £60 million for the remainder of the period, on top of the regular contributions it already makes.
The fund will also benefit from a further £300 million through an additional interest in property owned by M&S.
Under the partnership, an interest in property, including stores, is transferred to the pension scheme and then leased back by M&S, providing the pension with an annual income.
The partnership is already generating around £72 million a year for the scheme until 2022, while the latest transfer will contribute a further £36 million annually for 15 years from 2017.
The group will also transfer assets worth £124 million to the pension scheme from existing US dollar hedge contracts.
The £500 million difference between the current deficit and the additional contributions M&S plans to make should be made up by investment returns on the scheme's existing assets.
M&S said the funding plan should not have a "material impact" on the group's net assets or its income statement. Sphere: Related Content
Thursday, May 13, 2010
Bellevue Office Tower Leased to Microsoft Trades for $310 Million
CoStar Group - May 12, 2010
What do you do in this market if you're raising money like crazy to invest in commercial real estate -- as much as $100 million a month? If you're Cole Credit Property Trust III Inc., a non-traded REIT in Phoenix, AZ, you spend like crazy, too.
The registered REIT sponsored by Cole Real Estate Investments is in the midst of a two-year public stock offering that has been ongoing since October 2008. As of May 1, Cole Credit III had raised $1.5 billion. So far, it has invested primarily in retail-related buildings net leased to investment-grade and other creditworthy tenants, typically necessity retailers such as drug stores, family restaurants and home improvement stores.
But now the REIT has an even bigger fish on the line. On April 30, one of its subsidiaries agreed to spend $310 million to purchase the 583,000-square-foot City Center at 555 110th St. in Bellevue, WA - a hefty $530 per square foot.
The property is 99.6% occupied, of which approximately 96.3% is subject to a net lease with Microsoft Corp. that expires in June 2024. Microsoft is currently paying an annual base rent of $18.8 million - an amount that increases annually by approximately 2.4% of the then-current annual base rent.
An affiliate of Beacon Capital in Boston, MA, currently owns the building and up until last month had reportedly been in discussions to the sell the building to a German investment fund for about $286 million.
Cole Credit III is expected to close on the deal by June 18, 2010.
This is not the typical deal for the Cole Credit III. As of May 5, it owned 205 properties in 37 states, comprising approximately 5.3 million gross rentable square feet of commercial space and approximately 6.3 million square feet of land subject to ground leases. The typical deal size has been in the $1 million to $6 million range. And that still makes up the bulk of its activity
Besides, the City Center, it is also under contract to make the following purchases this month.
LA Fitness - League City, TX, 45,000 SF, for $7,335,000.
Walgreens - Rocky Mount, NC, 14,820 SF, for $5,863,000.
O'Reilly Automotive - Central, LA, 6,800 SF, for $927,000.
Evans Exchange - Evans, GA, 194,960 SF, for $19,500,000.
Lowe's - South Lebanon, OH, ground lease, for $4,808,000.
Kohl's - South Lebanon, OH, ground lease, for $3,125,000.
White Castle - South Lebanon, OH, ground lease, for $467,000.
Northern Tool - Ocala, FL, 26,054 SF, for $3,518,000.
Walgreens - Lancaster (Palmdale), CA, 13,650 SF, for $5,537,000.
Walgreens - Beloit, WI, 14,820 SF, for $4,310,000. Sphere: Related Content
What do you do in this market if you're raising money like crazy to invest in commercial real estate -- as much as $100 million a month? If you're Cole Credit Property Trust III Inc., a non-traded REIT in Phoenix, AZ, you spend like crazy, too.
The registered REIT sponsored by Cole Real Estate Investments is in the midst of a two-year public stock offering that has been ongoing since October 2008. As of May 1, Cole Credit III had raised $1.5 billion. So far, it has invested primarily in retail-related buildings net leased to investment-grade and other creditworthy tenants, typically necessity retailers such as drug stores, family restaurants and home improvement stores.
But now the REIT has an even bigger fish on the line. On April 30, one of its subsidiaries agreed to spend $310 million to purchase the 583,000-square-foot City Center at 555 110th St. in Bellevue, WA - a hefty $530 per square foot.
The property is 99.6% occupied, of which approximately 96.3% is subject to a net lease with Microsoft Corp. that expires in June 2024. Microsoft is currently paying an annual base rent of $18.8 million - an amount that increases annually by approximately 2.4% of the then-current annual base rent.
An affiliate of Beacon Capital in Boston, MA, currently owns the building and up until last month had reportedly been in discussions to the sell the building to a German investment fund for about $286 million.
Cole Credit III is expected to close on the deal by June 18, 2010.
This is not the typical deal for the Cole Credit III. As of May 5, it owned 205 properties in 37 states, comprising approximately 5.3 million gross rentable square feet of commercial space and approximately 6.3 million square feet of land subject to ground leases. The typical deal size has been in the $1 million to $6 million range. And that still makes up the bulk of its activity
Besides, the City Center, it is also under contract to make the following purchases this month.
LA Fitness - League City, TX, 45,000 SF, for $7,335,000.
Walgreens - Rocky Mount, NC, 14,820 SF, for $5,863,000.
O'Reilly Automotive - Central, LA, 6,800 SF, for $927,000.
Evans Exchange - Evans, GA, 194,960 SF, for $19,500,000.
Lowe's - South Lebanon, OH, ground lease, for $4,808,000.
Kohl's - South Lebanon, OH, ground lease, for $3,125,000.
White Castle - South Lebanon, OH, ground lease, for $467,000.
Northern Tool - Ocala, FL, 26,054 SF, for $3,518,000.
Walgreens - Lancaster (Palmdale), CA, 13,650 SF, for $5,537,000.
Walgreens - Beloit, WI, 14,820 SF, for $4,310,000. Sphere: Related Content
Monday, May 10, 2010
Barclays Seeking Sale Leaseback of 34 Bank Branches in Spain
i-comparables.com - May 6, 2010
Barclays have put up another Spanish commercial property investment portfolio for sale and leaseback, this time of 34 bank branches.
The bank has a network of 586 branches throughout Spain and has been selling many of these over the last few years. In 2008 it sold 24 branches to Redevco in a transaction reported at €65m. The bank also sold a unit in Paseo de Gracia, Barcelona some 12 months ago for around €20m. Colliers International acted in one of the last portfolio sale and leaeback transactions for nine Barclays bank branches around Spain towards the end of 2009.
The largest transaction recorded by i-comparables.com for Barclays in the Spanish real estate investment market took place in 2006 for a price of around €115m. This was for the office investment building located at Calle Mateo Inurria, Madrid, Spain.
According to sources close to the transaction the current offering is the last Spanish property investment transaction which Barclays intend to undertake this year. Jones Lang LaSalle have been given the exclusive mandate. Sphere: Related Content
Barclays have put up another Spanish commercial property investment portfolio for sale and leaseback, this time of 34 bank branches.
The bank has a network of 586 branches throughout Spain and has been selling many of these over the last few years. In 2008 it sold 24 branches to Redevco in a transaction reported at €65m. The bank also sold a unit in Paseo de Gracia, Barcelona some 12 months ago for around €20m. Colliers International acted in one of the last portfolio sale and leaeback transactions for nine Barclays bank branches around Spain towards the end of 2009.
The largest transaction recorded by i-comparables.com for Barclays in the Spanish real estate investment market took place in 2006 for a price of around €115m. This was for the office investment building located at Calle Mateo Inurria, Madrid, Spain.
According to sources close to the transaction the current offering is the last Spanish property investment transaction which Barclays intend to undertake this year. Jones Lang LaSalle have been given the exclusive mandate. Sphere: Related Content
Saturday, May 08, 2010
Dividend Capital To Buy 33 Net Leased Properties from iStar Financial for $1.4 Billion
CoStar Group - May 5, 2010
Dividend Capital Total Realty Trust Inc. agreed to acquire a portfolio of office and industrial properties from iStar Financial Inc. for an aggregate purchase price of $1.4 billion, adjusted for closing costs and prorations of taxes, operating expenses, leasing costs and other items.
Although Dividend Capital did not identify the property assets it is acquiring, it did say that the portfolio consists of 33 office and industrial properties in 18 geographic markets within the United States aggregating approximately 11.8 million net rentable square feet. Included in this portfolio are 22 office properties in 12 markets aggregating approximately 5.1 million net rentable square feet and 11 industrial properties in 10 markets aggregating 6.7 million net rentable square feet.
The properties included in the portfolio are primarily leased to large corporate tenants subject to triple net leases.
Earlier this year, iStar Financial announced that it was pursuing a sale or other transaction involving a portfolio of corporate tenant lease assets representing an aggregate $1.1 billion of book value. The portfolio is encumbered by secured, non-recourse term debt with an aggregate principal balance of $947.9 million that matures in April 2011.
The transactions are expected to close in the second quarter of 2010 subject to finalization of due diligence and obtaining sufficient financing, as well as other customary closing conditions.
iStar has agreed to provide Dividend Capital with up to $125 million in mezzanine financing after the buyer has obtained a commitment for senior financing. Dividend Capital has made an initial earnest money deposit of $25 million in respect of the transactions. Sphere: Related Content
Dividend Capital Total Realty Trust Inc. agreed to acquire a portfolio of office and industrial properties from iStar Financial Inc. for an aggregate purchase price of $1.4 billion, adjusted for closing costs and prorations of taxes, operating expenses, leasing costs and other items.
Although Dividend Capital did not identify the property assets it is acquiring, it did say that the portfolio consists of 33 office and industrial properties in 18 geographic markets within the United States aggregating approximately 11.8 million net rentable square feet. Included in this portfolio are 22 office properties in 12 markets aggregating approximately 5.1 million net rentable square feet and 11 industrial properties in 10 markets aggregating 6.7 million net rentable square feet.
The properties included in the portfolio are primarily leased to large corporate tenants subject to triple net leases.
Earlier this year, iStar Financial announced that it was pursuing a sale or other transaction involving a portfolio of corporate tenant lease assets representing an aggregate $1.1 billion of book value. The portfolio is encumbered by secured, non-recourse term debt with an aggregate principal balance of $947.9 million that matures in April 2011.
The transactions are expected to close in the second quarter of 2010 subject to finalization of due diligence and obtaining sufficient financing, as well as other customary closing conditions.
iStar has agreed to provide Dividend Capital with up to $125 million in mezzanine financing after the buyer has obtained a commitment for senior financing. Dividend Capital has made an initial earnest money deposit of $25 million in respect of the transactions. Sphere: Related Content
Wednesday, May 05, 2010
Agrokor Completes EUR 77 Million Sale Leaseback of Two Office & Logistic Facilities in Zagreb, Croatia
W. P. Carey Website - May 5, 2010
W. P. Carey & Co. LLC (NYSE: WPC), a global investment management company that provides long term asset-based and build to suit financing for companies, announced today that CPA®:17 – Global one of its publicly held non-traded REIT affiliates, has acquired two office and logistics facilities in Zagreb, Croatia. The transaction is W. P. Carey’s first in Croatia and is for a total consideration of €77 million ($101 million), including acquisition fees. The two properties comprise the office headquarters and national distribution center of Konzum, the largest food retailer in Croatia and a subsidiary of Agrokor.
Founded in 1976, Agrokor is the largest private company in Croatia. Agrokor is the largest company in the Adria region and one of the largest among its peers in CEE. A vertically-integrated business with nearly 40,000 employees and almost €4 billion in revenues, it is Croatia’s largest food producer, largest food processor, largest food distributor, and largest food retailer.
Jeffrey Lefleur, Executive Director of W. P. Carey, said:
“As one of the largest real estate transactions in Eastern Europe in the last three years, the acquisition is further indication of W. P. Carey’s ability to provide long term capital to companies based in capital-constrained regions on the Continent.
“Given Agrokor’s dominance of the agribusiness industry and history of successful acquisitions and growth, this was an ideal situation for us to enter the Croatian market. Having its strategically critical operating assets on a long term lease is consistent with our investment strategy.”
Ivica Todoric, Founder and President of Agrokor, said:
“This transaction with W. P. Carey allowed us to structure a deal that meets our short term commitments while supporting our longer term goals.”
King Sturge was the real estate advisor to the transaction. Sphere: Related Content
W. P. Carey & Co. LLC (NYSE: WPC), a global investment management company that provides long term asset-based and build to suit financing for companies, announced today that CPA®:17 – Global one of its publicly held non-traded REIT affiliates, has acquired two office and logistics facilities in Zagreb, Croatia. The transaction is W. P. Carey’s first in Croatia and is for a total consideration of €77 million ($101 million), including acquisition fees. The two properties comprise the office headquarters and national distribution center of Konzum, the largest food retailer in Croatia and a subsidiary of Agrokor.
Founded in 1976, Agrokor is the largest private company in Croatia. Agrokor is the largest company in the Adria region and one of the largest among its peers in CEE. A vertically-integrated business with nearly 40,000 employees and almost €4 billion in revenues, it is Croatia’s largest food producer, largest food processor, largest food distributor, and largest food retailer.
Jeffrey Lefleur, Executive Director of W. P. Carey, said:
“As one of the largest real estate transactions in Eastern Europe in the last three years, the acquisition is further indication of W. P. Carey’s ability to provide long term capital to companies based in capital-constrained regions on the Continent.
“Given Agrokor’s dominance of the agribusiness industry and history of successful acquisitions and growth, this was an ideal situation for us to enter the Croatian market. Having its strategically critical operating assets on a long term lease is consistent with our investment strategy.”
Ivica Todoric, Founder and President of Agrokor, said:
“This transaction with W. P. Carey allowed us to structure a deal that meets our short term commitments while supporting our longer term goals.”
King Sturge was the real estate advisor to the transaction. Sphere: Related Content
TDG Ltd Announces £22 Million Sale Leaseback of Eight Cold Storage Facilities in the UK
W. P. Carey Website - May 4, 2010
W. P. Carey & Co. LLC (NYSE: WPC), a global investment management company that provides long term sale leaseback and build to suit financing for companies, announced today that CPA®:17 – Global, one of its publicly held non-traded REIT affiliates, has purchased eight cold storage facilities from UK logistics and supply chain management company TDG Limited for a total consideration of £22 million ($34 million), including acquisition fees, in an all-equity transaction. The purchase of a ninth cold storage facility is pending subject to final approvals and is expected to close in the next few weeks. The properties are leased back to TDG on a long term basis. The nine properties, which total over 46,000 square meters (500,000 square feet) of cold storage warehousing and office space, are located across England and Wales.
TDG Ltd operates throughout Europe, including the UK, Ireland, France, Spain, Germany, the Benelux, Poland and Hungary, and is 100% owned by private equity investment firm Douglas Bay Capital PLC.
Agents on the transaction were Celtic Asset Management and GVA Grimley for TDG and Knight Frank for W. P. Carey.
Jennifer Walsh, Director of W. P. Carey, said:
“We at W. P. Carey have recognised the growth potential that TDG offers, last year producing results well ahead of its competitors. In addition, the UK public cold storage industry has proved a defensive and stable one in recent months. We believe that the acquired portfolio includes some of TDG’s most sustainable sites, offering a diversified customer base and large geographical market shares.
“This transaction further demonstrates W. P. Carey’s ability to work with private equity firms in order to develop alternative financing structures that support their broader investment strategies as well as provide capital to their portfolio companies.”
Mike Brannigan, CEO of TDG, said:
“We are pleased about this new business relationship with W. P. Carey. The transaction is another key milestone in our property and business strategy to further strengthen our balance sheet in order to reinvest and accelerate the development of TDG. Over the past year TDG has substantially changed its business profile and is now best placed to capitalise on a more benign economic environment.
“We are delighted to work with long term partners such as W. P. Carey, who understands the sector and TDG's long term objectives.” Sphere: Related Content
W. P. Carey & Co. LLC (NYSE: WPC), a global investment management company that provides long term sale leaseback and build to suit financing for companies, announced today that CPA®:17 – Global, one of its publicly held non-traded REIT affiliates, has purchased eight cold storage facilities from UK logistics and supply chain management company TDG Limited for a total consideration of £22 million ($34 million), including acquisition fees, in an all-equity transaction. The purchase of a ninth cold storage facility is pending subject to final approvals and is expected to close in the next few weeks. The properties are leased back to TDG on a long term basis. The nine properties, which total over 46,000 square meters (500,000 square feet) of cold storage warehousing and office space, are located across England and Wales.
TDG Ltd operates throughout Europe, including the UK, Ireland, France, Spain, Germany, the Benelux, Poland and Hungary, and is 100% owned by private equity investment firm Douglas Bay Capital PLC.
Agents on the transaction were Celtic Asset Management and GVA Grimley for TDG and Knight Frank for W. P. Carey.
Jennifer Walsh, Director of W. P. Carey, said:
“We at W. P. Carey have recognised the growth potential that TDG offers, last year producing results well ahead of its competitors. In addition, the UK public cold storage industry has proved a defensive and stable one in recent months. We believe that the acquired portfolio includes some of TDG’s most sustainable sites, offering a diversified customer base and large geographical market shares.
“This transaction further demonstrates W. P. Carey’s ability to work with private equity firms in order to develop alternative financing structures that support their broader investment strategies as well as provide capital to their portfolio companies.”
Mike Brannigan, CEO of TDG, said:
“We are pleased about this new business relationship with W. P. Carey. The transaction is another key milestone in our property and business strategy to further strengthen our balance sheet in order to reinvest and accelerate the development of TDG. Over the past year TDG has substantially changed its business profile and is now best placed to capitalise on a more benign economic environment.
“We are delighted to work with long term partners such as W. P. Carey, who understands the sector and TDG's long term objectives.” Sphere: Related Content
Tuesday, May 04, 2010
Venter Institute Completes $53 Million Sale Leaseback of Rockville R&D Campus
GenomeWeb - May 4, 2010
The J. Craig Venter Institute has sold its Rockville, Md., headquarters campus to BioMed Realty Trust for $53 million, but will continue to carry out research there under a 10-year renewable sale-leaseback agreement with the buyer, JCVI said today.
JCVI fully leases the campus, which consists of five buildings totaling 218,000 square feet, located at 9704-9714 Medical Center Drive. Some 300 scientists and support staffers are based at the campus, while another 100 scientists and support staffers are employed at JCVI's San Diego campus.
J. Craig Venter, JCVI's founder and president, said in a statement that the sale-leaseback "will enable us to remain financially sound for the foreseeable future, and ensure that we can continue our groundbreaking genomic science."
JCVI was formed in October 2006 through the merger of three affiliated organizations — the Institute for Genomic Research, the J. Craig Venter Institute, and the J. Craig Venter Science Foundation.
The deal with Venter is BioMed Realty's second acquisition of life-science property along the I-270 corridor in Maryland's Montgomery County this year. On March 1, the REIT announced it had acquired two fully-leased life science buildings totaling about 82,400 square feet in Gaithersburg, Md., for $14.4 million. The buildings are leased to MedImmune and GenVec.
The JCVI campus acquisition expands BioMed Realty's Maryland portfolio to six properties, consisting of 15 buildings and 1.4 million rentable square feet of life-science space. BioMed Realty is headquartered in San Diego. Sphere: Related Content
The J. Craig Venter Institute has sold its Rockville, Md., headquarters campus to BioMed Realty Trust for $53 million, but will continue to carry out research there under a 10-year renewable sale-leaseback agreement with the buyer, JCVI said today.
JCVI fully leases the campus, which consists of five buildings totaling 218,000 square feet, located at 9704-9714 Medical Center Drive. Some 300 scientists and support staffers are based at the campus, while another 100 scientists and support staffers are employed at JCVI's San Diego campus.
J. Craig Venter, JCVI's founder and president, said in a statement that the sale-leaseback "will enable us to remain financially sound for the foreseeable future, and ensure that we can continue our groundbreaking genomic science."
JCVI was formed in October 2006 through the merger of three affiliated organizations — the Institute for Genomic Research, the J. Craig Venter Institute, and the J. Craig Venter Science Foundation.
The deal with Venter is BioMed Realty's second acquisition of life-science property along the I-270 corridor in Maryland's Montgomery County this year. On March 1, the REIT announced it had acquired two fully-leased life science buildings totaling about 82,400 square feet in Gaithersburg, Md., for $14.4 million. The buildings are leased to MedImmune and GenVec.
The JCVI campus acquisition expands BioMed Realty's Maryland portfolio to six properties, consisting of 15 buildings and 1.4 million rentable square feet of life-science space. BioMed Realty is headquartered in San Diego. Sphere: Related Content
Saturday, May 01, 2010
CVS Portfolio Trades for $63 Million
GlobeSt.com - April 29, 2010
A private investor has acquired a net lease portfolio of 20 CVS/pharmacies for $62.7 million. The seller was also a Texas-based private investor.
Encompassing more than 248,000 square feet, the retail properties are located in primary and secondary markets in Alabama, California, Connecticut, Florida, Georgia, Illinois, Massachusetts, Michigan, New Hampshire, Pennsylvania, Texas and Virginia. The properties, which average 12,400 square feet, are 100% leased to CVS/pharmacies, according to Jeff Hughes, a senior director of investment sales for Stan Johnson Co., a Tulsa, OK-based net lease brokerage firm.
Hughes represented both the buyer and the seller, along with Brandon Duff, also of Stan Johnson Co. He says the buyer was attracted to this deal because the properties were highly leveraged and well-suited to meet its unique needs for this transaction.
"These properties have long-term, bond-style leases with investment grade tenants, providing highly leveraged assumable loans in place," Hughes says. "This transaction type is perfectly suited for owners needing to replace debt from 1031 or 1033 exchanges." Sphere: Related Content
A private investor has acquired a net lease portfolio of 20 CVS/pharmacies for $62.7 million. The seller was also a Texas-based private investor.
Encompassing more than 248,000 square feet, the retail properties are located in primary and secondary markets in Alabama, California, Connecticut, Florida, Georgia, Illinois, Massachusetts, Michigan, New Hampshire, Pennsylvania, Texas and Virginia. The properties, which average 12,400 square feet, are 100% leased to CVS/pharmacies, according to Jeff Hughes, a senior director of investment sales for Stan Johnson Co., a Tulsa, OK-based net lease brokerage firm.
Hughes represented both the buyer and the seller, along with Brandon Duff, also of Stan Johnson Co. He says the buyer was attracted to this deal because the properties were highly leveraged and well-suited to meet its unique needs for this transaction.
"These properties have long-term, bond-style leases with investment grade tenants, providing highly leveraged assumable loans in place," Hughes says. "This transaction type is perfectly suited for owners needing to replace debt from 1031 or 1033 exchanges." Sphere: Related Content
W.P. Carey Appoints H. Cabot Lodge, III President of W. P. Carey & Co. Ltd. and Head of European Investments
W. P. Carey Website - April 29, 2010
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that H. Cabot Lodge, III has been appointed President of its UK subsidiary, W. P. Carey & Co. Ltd. Mr. Lodge will serve as head of European Investments and is based out of W. P. Carey’s London office.
Gordon DuGan, President and Chief Executive Officer of W. P. Carey, commented “Cabot’s appointment to head our European investment team underlines our commitment to further strengthen the firm’s international platform. Having a senior executive with Cabot’s capabilities and credentials will enhance our ability to capitalize on recent successes and pursue opportunities in the current market. Cabot has more than 25 years of deal experience, including 15 years previously with W. P. Carey, and his knowledge will be a significant asset in accelerating the development of our European franchise.” Sphere: Related Content
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) announced today that H. Cabot Lodge, III has been appointed President of its UK subsidiary, W. P. Carey & Co. Ltd. Mr. Lodge will serve as head of European Investments and is based out of W. P. Carey’s London office.
Gordon DuGan, President and Chief Executive Officer of W. P. Carey, commented “Cabot’s appointment to head our European investment team underlines our commitment to further strengthen the firm’s international platform. Having a senior executive with Cabot’s capabilities and credentials will enhance our ability to capitalize on recent successes and pursue opportunities in the current market. Cabot has more than 25 years of deal experience, including 15 years previously with W. P. Carey, and his knowledge will be a significant asset in accelerating the development of our European franchise.” Sphere: Related Content
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