Transport & Logistics News - September 28, 2010
The Charter Hall Group has agreed to purchase and lease back a new Woolworths regional distribution centre in Tasmania for $75 million.
Construction is due to commence in October 2010 and the centre will comprise approximately 46,000 square metres of state-of-the-art logistics space. The facility will be developed by Woolworths Limited who will lease the premises for 25 years from completion, anticipated to be late 2011.
The 19.8 hectare site is located adjacent to the Launceston Airport on freehold land and provides for significant expansion, with development approval to build an additional 25,000 square metres. The facility will be operated by Statewide Independent Wholesalers Limited and will service 28 Woolworths supermarkets, 19 BWS stores and 208 independent retailers throughout Tasmania.
The property was purchased on an initial yield of 8.6%, with guaranteed fixed annual rental increases of 2.8%.
Sphere: Related Content
Tuesday, September 28, 2010
Sunday, September 26, 2010
Cumberland Farms Offering 61 Net Leased Convenience Stores Along East Coast
Convenience Store News - September 21, 2010
Cumberland Farms Inc. will sell 61 convenience store properties through a structured sale process to be managed by Matrix Capital Markets Group Inc.
Cumberland Farms owns the real estate at these sites, and leases them to third party tenants through triple net lease agreements, under which the tenants operate independent convenience stores and other retail businesses, according to a release by Matrix.
Bids can be submitted for individual stores or for multiple stores, and offers are due Oct. 29, 2010, but Cumberland will consider accepting offers prior to the deadline.
While the stores are a steady source of income for Cumberland, owning the real estate at the 61 independently operated locations no longer fits with Cumberland's strategic growth plans, according to the release. Cumberland will use the capital from the sale to redeploy in other areas of their business.
The stores are located along the East Coast, and includes three stores in Connecticut; five in Delaware; 10 in Florida; 12 in Massachusetts, three 3 in New Hampshire; eight in New Jersey; 14 in New York, two in Pennsylvania; and four in Rhode Island.
Of the stores, 34 currently sell motor fuels, which are primarily unbranded. Cumberland currently supplies fuels to most of these locations, excluding stores in Florida. Going forward, buyers of the Cumberland-supplied sites are not required to purchase fuels from the company, and can choose their own fuel supplier after closing, according to Matrix.
In addition, 19 of the properties have additional retail space leased to other tenants such as restaurant franchisees, beauty care salons, and other businesses, under triple net lease agreements. The average building size is approximately 3,100 square feet, with the average convenience store size being approximately 2,200 square feet.
Matrix also noted the remaining lease durations for current tenants are short term, while others leases are expired or may be terminated if the property is sold. The average remaining tenant lease duration for the stores is approximately 2.7 years including option periods. There are currently seven stores that can be operated by the buyer by the end of 2010, while an additional 17 stores can be operated by the purchaser in 2011.
Stores included in the sale provide income averaging approximately $3.21 million per year, and existing tenants are motivated to renew leases, according to the release. Cumberland has not pursued lease extensions with existing operators, as the assets are not long term strategic assets for the company, according to Matrix.
Matrix assembled an online data room containing site information, sales procedures and other relevant information. To gain access to the online area, a confidentiality agreement must be completed and returned by Matrix via fax at (804) 780-0191, or completed online at http://www.matrixenergyandretail.com/sale_details.php?sale=52. Sphere: Related Content
Cumberland Farms Inc. will sell 61 convenience store properties through a structured sale process to be managed by Matrix Capital Markets Group Inc.
Cumberland Farms owns the real estate at these sites, and leases them to third party tenants through triple net lease agreements, under which the tenants operate independent convenience stores and other retail businesses, according to a release by Matrix.
Bids can be submitted for individual stores or for multiple stores, and offers are due Oct. 29, 2010, but Cumberland will consider accepting offers prior to the deadline.
While the stores are a steady source of income for Cumberland, owning the real estate at the 61 independently operated locations no longer fits with Cumberland's strategic growth plans, according to the release. Cumberland will use the capital from the sale to redeploy in other areas of their business.
The stores are located along the East Coast, and includes three stores in Connecticut; five in Delaware; 10 in Florida; 12 in Massachusetts, three 3 in New Hampshire; eight in New Jersey; 14 in New York, two in Pennsylvania; and four in Rhode Island.
Of the stores, 34 currently sell motor fuels, which are primarily unbranded. Cumberland currently supplies fuels to most of these locations, excluding stores in Florida. Going forward, buyers of the Cumberland-supplied sites are not required to purchase fuels from the company, and can choose their own fuel supplier after closing, according to Matrix.
In addition, 19 of the properties have additional retail space leased to other tenants such as restaurant franchisees, beauty care salons, and other businesses, under triple net lease agreements. The average building size is approximately 3,100 square feet, with the average convenience store size being approximately 2,200 square feet.
Matrix also noted the remaining lease durations for current tenants are short term, while others leases are expired or may be terminated if the property is sold. The average remaining tenant lease duration for the stores is approximately 2.7 years including option periods. There are currently seven stores that can be operated by the buyer by the end of 2010, while an additional 17 stores can be operated by the purchaser in 2011.
Stores included in the sale provide income averaging approximately $3.21 million per year, and existing tenants are motivated to renew leases, according to the release. Cumberland has not pursued lease extensions with existing operators, as the assets are not long term strategic assets for the company, according to Matrix.
Matrix assembled an online data room containing site information, sales procedures and other relevant information. To gain access to the online area, a confidentiality agreement must be completed and returned by Matrix via fax at (804) 780-0191, or completed online at http://www.matrixenergyandretail.com/sale_details.php?sale=52. Sphere: Related Content
VeriSign Agrees to 15-Year Lease for Former Sallie Mae HQ in Reston, VA
Citybizlist Washington DC - September 24, 2010
VeriSign, Inc. has signed its long-rumored lease with landlord 12061 Bluemont Owner, LLC to lease 221,326 square feet and related parking facilities and other amenities located at 12061 Bluemont Way in Reston, the current Sallie Mae headquarters. During the fifteen year term of the Lease, the Company is to make aggregate payments of fixed rent in the approximate amount of $105,834,000.
The deal was signed on September 15.
The Company has the right to occupy the Premises from and after the commencement date of the Lease, which is expected to occur no earlier than February 1, 2011. The Commencement Date shall occur after the expiration of the current tenant's lease for the Premises and such current existing tenant's vacancy of the Premises, which shall occur no later than August 31, 2011.
In the event the Commencement Date does not occur by November 30, 2011, VeriSign has the right to terminate the Lease.
The initial term of the Lease is for a period of fifteen years and five months following the Commencement Date. The Company has the right to renew the term of the Lease for up to two consecutive five-year periods. In the event the Landlord desires to sell the Premises during the term of the Lease, the Landlord must first offer the Premises to VeriSign, subject to certain exceptions, including the sale of the Premises to affiliates of the Landlord or in connection with the sale of a portfolio of properties of which the Premises is a part.
Payments of fixed rent are to be made monthly pursuant to a schedule set forth in the Lease, which monthly payments shall begin on the 151st day following the Commencement Date. Fixed rent for any renewal term would be the then fair market rental rate for the Premises. In addition to fixed rent, the Tenant is required to pay all real estate and similar taxes imposed on the Premises.
Under the Lease, the Company is generally responsible, at its cost, for the operation, management, repair and, if necessary, replacement of the Premises during the term of the Lease, provided that the Landlord pays some of the costs incurred in connection with capital improvements. Sphere: Related Content
VeriSign, Inc. has signed its long-rumored lease with landlord 12061 Bluemont Owner, LLC to lease 221,326 square feet and related parking facilities and other amenities located at 12061 Bluemont Way in Reston, the current Sallie Mae headquarters. During the fifteen year term of the Lease, the Company is to make aggregate payments of fixed rent in the approximate amount of $105,834,000.
The deal was signed on September 15.
The Company has the right to occupy the Premises from and after the commencement date of the Lease, which is expected to occur no earlier than February 1, 2011. The Commencement Date shall occur after the expiration of the current tenant's lease for the Premises and such current existing tenant's vacancy of the Premises, which shall occur no later than August 31, 2011.
In the event the Commencement Date does not occur by November 30, 2011, VeriSign has the right to terminate the Lease.
The initial term of the Lease is for a period of fifteen years and five months following the Commencement Date. The Company has the right to renew the term of the Lease for up to two consecutive five-year periods. In the event the Landlord desires to sell the Premises during the term of the Lease, the Landlord must first offer the Premises to VeriSign, subject to certain exceptions, including the sale of the Premises to affiliates of the Landlord or in connection with the sale of a portfolio of properties of which the Premises is a part.
Payments of fixed rent are to be made monthly pursuant to a schedule set forth in the Lease, which monthly payments shall begin on the 151st day following the Commencement Date. Fixed rent for any renewal term would be the then fair market rental rate for the Premises. In addition to fixed rent, the Tenant is required to pay all real estate and similar taxes imposed on the Premises.
Under the Lease, the Company is generally responsible, at its cost, for the operation, management, repair and, if necessary, replacement of the Premises during the term of the Lease, provided that the Landlord pays some of the costs incurred in connection with capital improvements. Sphere: Related Content
Providence Health Plan Signs to Long Term Lease Renewal of HQ in Beaverton, OR
REBusinessOnline - September 24, 2010
Grandbridge Real Estate Capital has originated and closed a more than $63.2 million fixed-rate loan secured by Murray Business Center, a 332,000-square-foot suburban office building located in Beaverton. Funding for the transaction was provided by TIAA-CREF. The loan was made at 98 percent of appraised value with an interest rate of 5.61 percent fixed for the entire 21.3-year loan term. The transaction features an initial 39-month interest-only component with negative amortization, which converts to an 18-year amortization. Rob Meister of Charlotte, N.C.-based Grandbridge, a subsidiary of BB&T Corp., arranged the financing on behalf of a long-time client. The main tenant at Murray Business Center currently occupies 72 percent of the property with an unrelated, non-credit tenant occupying the remaining portion of the property until September 30, 2013, at which time the main tenant takes over the entire building. Sphere: Related Content
Grandbridge Real Estate Capital has originated and closed a more than $63.2 million fixed-rate loan secured by Murray Business Center, a 332,000-square-foot suburban office building located in Beaverton. Funding for the transaction was provided by TIAA-CREF. The loan was made at 98 percent of appraised value with an interest rate of 5.61 percent fixed for the entire 21.3-year loan term. The transaction features an initial 39-month interest-only component with negative amortization, which converts to an 18-year amortization. Rob Meister of Charlotte, N.C.-based Grandbridge, a subsidiary of BB&T Corp., arranged the financing on behalf of a long-time client. The main tenant at Murray Business Center currently occupies 72 percent of the property with an unrelated, non-credit tenant occupying the remaining portion of the property until September 30, 2013, at which time the main tenant takes over the entire building. Sphere: Related Content
Cole Real Estate Investments to Raise $3.5 Billion in Each of Two IPOs of Single Tenant REITs
Business Wire - September 23, 2010
Cole Real Estate Investments, a sponsor of non-traded REITs, announced today the filing of two registration statements with the Securities and Exchange Commission: one for Cole Advisor Retail Income REIT, Inc. and the other for Cole Advisor Corporate Income REIT, Inc. The announcement was made by Marc Nemer, President of Cole Real Estate Investments.
Cole Advisor Retail Income REIT and Cole Advisor Corporate Income REIT are newly organized corporations formed to invest primarily in single-tenant, income producing commercial properties, which are leased to creditworthy tenants under long-term net leases. Cole Advisor Retail Income REIT will focus primarily on necessity retail tenants, while Cole Advisor Corporate Income REIT will focus on mission critical office and industrial properties.
Each of the companies intends to distribute shares principally through registered investment advisors and broker/dealers that charge their clients a fee for their services. These accounts are typically referred to as wrap accounts or fee-based accounts.
The common shares of each company is expected to be offered on a continuous basis and for an indefinite period of time, subject to regulatory approvals, with an initial offering for each company of up to $3,500,000,000. After an initial escrow period, the purchase price for each company’s stock will vary from day to day and, on any given day, will be equal to that company’s net asset value, or NAV, divided by the number of common shares outstanding for that company, as of the end of business on each day (NAV per share). The calculation of each company’s NAV will be based principally on the market value of the company’s real estate portfolio, as determined by an independent valuation expert. Each of the companies also expects to offer their shareholders the opportunity to redeem all or any portion of their shares, on a daily basis, at the company’s NAV per share, determined as of the end of the day of the request. The offerings are not contingent on each other. Sphere: Related Content
Cole Real Estate Investments, a sponsor of non-traded REITs, announced today the filing of two registration statements with the Securities and Exchange Commission: one for Cole Advisor Retail Income REIT, Inc. and the other for Cole Advisor Corporate Income REIT, Inc. The announcement was made by Marc Nemer, President of Cole Real Estate Investments.
Cole Advisor Retail Income REIT and Cole Advisor Corporate Income REIT are newly organized corporations formed to invest primarily in single-tenant, income producing commercial properties, which are leased to creditworthy tenants under long-term net leases. Cole Advisor Retail Income REIT will focus primarily on necessity retail tenants, while Cole Advisor Corporate Income REIT will focus on mission critical office and industrial properties.
Each of the companies intends to distribute shares principally through registered investment advisors and broker/dealers that charge their clients a fee for their services. These accounts are typically referred to as wrap accounts or fee-based accounts.
The common shares of each company is expected to be offered on a continuous basis and for an indefinite period of time, subject to regulatory approvals, with an initial offering for each company of up to $3,500,000,000. After an initial escrow period, the purchase price for each company’s stock will vary from day to day and, on any given day, will be equal to that company’s net asset value, or NAV, divided by the number of common shares outstanding for that company, as of the end of business on each day (NAV per share). The calculation of each company’s NAV will be based principally on the market value of the company’s real estate portfolio, as determined by an independent valuation expert. Each of the companies also expects to offer their shareholders the opportunity to redeem all or any portion of their shares, on a daily basis, at the company’s NAV per share, determined as of the end of the day of the request. The offerings are not contingent on each other. Sphere: Related Content
US Federal Properties Trust to Raise $350 Million in IPO of Single Tenant REIT
The Wall Street Journal - September 22, 2010
US Federal Properties Trust Inc. unveiled estimated terms of its planned initial public offering, as the real-estate company raises funds to repay debt and for other purposes.
The company--which acquires, develops and manages properties leased to the U.S. government--is seen selling at least 13.8 million shares at an estimated price of $19 to $20 a share, according to a filing with the Securities and Exchange Commission. This is essentially all of the stock to be outstanding after the IPO.
US Federal Properties, which plans to become a real-estate investment trust this year, had estimated raising up to an estimated $350 million when it filed its initial IPO plans in May.
Upon the completion of the IPO, the company expects to own 19 single-tenant properties in 11 states. It has developed eight federal government-leased properties since 2001 with another one under way. Tenants include agencies such as the Federal Bureau of Investigation and federal courts.
The company expects government leasing of buildings will continue to grow owing to the large capital expenditures associated with constructing and maintaining such buildings themselves.
For the six months ended June 30, U.S. Federal Properties' earnings rose 23% to $901,000 as revenue nearly doubled to $3.6 million.
The company has been approved to list on the New York Stock Exchange under the symbol USFP. Sphere: Related Content
US Federal Properties Trust Inc. unveiled estimated terms of its planned initial public offering, as the real-estate company raises funds to repay debt and for other purposes.
The company--which acquires, develops and manages properties leased to the U.S. government--is seen selling at least 13.8 million shares at an estimated price of $19 to $20 a share, according to a filing with the Securities and Exchange Commission. This is essentially all of the stock to be outstanding after the IPO.
US Federal Properties, which plans to become a real-estate investment trust this year, had estimated raising up to an estimated $350 million when it filed its initial IPO plans in May.
Upon the completion of the IPO, the company expects to own 19 single-tenant properties in 11 states. It has developed eight federal government-leased properties since 2001 with another one under way. Tenants include agencies such as the Federal Bureau of Investigation and federal courts.
The company expects government leasing of buildings will continue to grow owing to the large capital expenditures associated with constructing and maintaining such buildings themselves.
For the six months ended June 30, U.S. Federal Properties' earnings rose 23% to $901,000 as revenue nearly doubled to $3.6 million.
The company has been approved to list on the New York Stock Exchange under the symbol USFP. Sphere: Related Content
Friday, September 24, 2010
Orbis Hospitality Seeking Sale Leaseback of Over 30 Hotels in Poland and Lithuania
WSEInfoSpace - September 23, 2010
Listed hotel operator Orbis wants to carry out sale-leaseback deals on over half of its hotels within the next 4-5 years, CFO Marcin Szewczykowski told reporters.
"In the period of up to 4-5 years over half of the buildings in which we have hotels will stop being our property," Szewczykowski said. "We want to carry out sale-leaseback deals on those properties."
At end-H1 the value of Orbis fixed assets stood at PLN 2 bln ($681 million) but this sum does not reflect the market value, Szewczykowski added.
Currently Orbis has 62 hotels in Poland and Lithuania. Sphere: Related Content
Listed hotel operator Orbis wants to carry out sale-leaseback deals on over half of its hotels within the next 4-5 years, CFO Marcin Szewczykowski told reporters.
"In the period of up to 4-5 years over half of the buildings in which we have hotels will stop being our property," Szewczykowski said. "We want to carry out sale-leaseback deals on those properties."
At end-H1 the value of Orbis fixed assets stood at PLN 2 bln ($681 million) but this sum does not reflect the market value, Szewczykowski added.
Currently Orbis has 62 hotels in Poland and Lithuania. Sphere: Related Content
Albertson's Agrees to $276 Million Sale Leaseback of 33 Grocery Stores
CoStar Group - September 22, 2010
Cole Credit Property Trust III Inc. agreed to purchase 100% of Albertson's interest in 33 retail properties comprising 1,916,854 million square feet throughout the U.S. for $276 million.
The Albertson's portfolio consists of 33 single-tenant commercial properties in Texas, Arizona, New Mexico, Louisiana and Colorado. The properties are 100% occupied by Albertson's, which will also lease back each property.
The leases will be identical for each property and run for 20 years with six 5-year lease renewal options. The initial annual base rent for the properties will be $19.77 million (for an initial yield of approximately 7.2%) for a base rent of $10.31/square foot. The annual base rent under the lease increases every five years by 10% of the then-current annual base rent.
Cole put down a $10 million deposit and has a 30-day due diligence period, during which it may terminate the agreement for any reason.
Cole officials would not comment on the agreement until after and if it went to closing. The acquisition of the properties is expected to be completed by Oct. 19, 2010. Sphere: Related Content
Cole Credit Property Trust III Inc. agreed to purchase 100% of Albertson's interest in 33 retail properties comprising 1,916,854 million square feet throughout the U.S. for $276 million.
The Albertson's portfolio consists of 33 single-tenant commercial properties in Texas, Arizona, New Mexico, Louisiana and Colorado. The properties are 100% occupied by Albertson's, which will also lease back each property.
The leases will be identical for each property and run for 20 years with six 5-year lease renewal options. The initial annual base rent for the properties will be $19.77 million (for an initial yield of approximately 7.2%) for a base rent of $10.31/square foot. The annual base rent under the lease increases every five years by 10% of the then-current annual base rent.
Cole put down a $10 million deposit and has a 30-day due diligence period, during which it may terminate the agreement for any reason.
Cole officials would not comment on the agreement until after and if it went to closing. The acquisition of the properties is expected to be completed by Oct. 19, 2010. Sphere: Related Content
Friday, September 17, 2010
Accor Completes EUR 39 Million Sale Leaseback of Hotel in Munich
Property Magazine International - September 14, 2010
Invesco Real Estate (IRE) announces that it has concluded the acquisition of the Novotel City Centre hotel in Munich, Germany for an investment of €39m in an off-market deal, with financing provided by Bayern LB. This is the fifth hotel the firm has bought this year for its dedicated pan-European hotel fund , with purchases in France, Italy and Stockholm concluded earlier this year. This brings to 14 the total number of hotels the fund now has under management and represents over €600m of investment into this specialised real estate sector.
The latest acquisition was purchased as part of a sale and lease back portfolio of five hotels from Accor and operates under the Novotel brand. IRE currently has a further two hotels under contract, which are expected to conclude later in 2010.
The Novotel City Centre is a modern 4* business hotel, opened in 2004, with 307 rooms, restaurant, bar, meeting rooms, pool and fitness centre. It is located in the heart of the Bavarian state capital, just minutes from the Deutsches Museum, the Gasteig cultural centre and the old town. Accor is one of the leading global hotel operators with strong branding and covenant. The acquisition is in line with IRE’s hotel fund’s investment strategy of building a diversified pan-European portfolio of leased mid-market hotels. Sphere: Related Content
Invesco Real Estate (IRE) announces that it has concluded the acquisition of the Novotel City Centre hotel in Munich, Germany for an investment of €39m in an off-market deal, with financing provided by Bayern LB. This is the fifth hotel the firm has bought this year for its dedicated pan-European hotel fund , with purchases in France, Italy and Stockholm concluded earlier this year. This brings to 14 the total number of hotels the fund now has under management and represents over €600m of investment into this specialised real estate sector.
The latest acquisition was purchased as part of a sale and lease back portfolio of five hotels from Accor and operates under the Novotel brand. IRE currently has a further two hotels under contract, which are expected to conclude later in 2010.
The Novotel City Centre is a modern 4* business hotel, opened in 2004, with 307 rooms, restaurant, bar, meeting rooms, pool and fitness centre. It is located in the heart of the Bavarian state capital, just minutes from the Deutsches Museum, the Gasteig cultural centre and the old town. Accor is one of the leading global hotel operators with strong branding and covenant. The acquisition is in line with IRE’s hotel fund’s investment strategy of building a diversified pan-European portfolio of leased mid-market hotels. Sphere: Related Content
Sunday, September 12, 2010
Goodyear Distribution Portfolio Sold for $172.5 Million
Citybizlist Dallas - September 9, 2010
Six Goodyear Tire and Rubber Company industrial distribution facilities totaling 4.7 million square feet, including two in Atlanta, and one each in Chicago, Central Pennsylvania, Dallas and Columbus, OH, have been sold by Dividend Capital Total Realty Trust to Cardinal Industrial Real Estate Services for $172.5 million.
With the acquisition, Sherman Oaks, CA-based Cardinal Industrial increased its portfolio of single tenant industrial assets located throughout the United States to approximately 13.4 million square feet.
The Portland office of HFF (Holliday Fenoglio Fowler, L.P.) arranged $114 million in financing for the industrial distribution facility acquisition, with HFF senior managing director Lloyd Minten working on behalf of Cardinal Industrial Real Estate Services to secure the loan. It will be included in an upcoming CMBS securitization and serviced by HFF.
Loan proceeds were used to acquire the portfolio from Dividend Capital Trust, which acquired these assets as part of the iStar portfolio sale. On June 25, 2010, Dividend Capital Total Realty Trust Inc. completed the acquisition of a portfolio of 32 office and industrial properties, aggregating approximately 11.3 million net rentable square feet known as the National Office and Industrial Portfolio, or NOIP, from iStar Financial Inc.
Dividend Capital will used the proceeds from the sale of the Goodyear Tire Distribution Facilities to repay approximately $169.1 million of outstanding borrowings that had been used to partially finance its acquisition of NOIP. The Goodyear Portfolio included all of its properties that were leased to Goodyear Tire & Rubber Company. Sphere: Related Content
Six Goodyear Tire and Rubber Company industrial distribution facilities totaling 4.7 million square feet, including two in Atlanta, and one each in Chicago, Central Pennsylvania, Dallas and Columbus, OH, have been sold by Dividend Capital Total Realty Trust to Cardinal Industrial Real Estate Services for $172.5 million.
With the acquisition, Sherman Oaks, CA-based Cardinal Industrial increased its portfolio of single tenant industrial assets located throughout the United States to approximately 13.4 million square feet.
The Portland office of HFF (Holliday Fenoglio Fowler, L.P.) arranged $114 million in financing for the industrial distribution facility acquisition, with HFF senior managing director Lloyd Minten working on behalf of Cardinal Industrial Real Estate Services to secure the loan. It will be included in an upcoming CMBS securitization and serviced by HFF.
Loan proceeds were used to acquire the portfolio from Dividend Capital Trust, which acquired these assets as part of the iStar portfolio sale. On June 25, 2010, Dividend Capital Total Realty Trust Inc. completed the acquisition of a portfolio of 32 office and industrial properties, aggregating approximately 11.3 million net rentable square feet known as the National Office and Industrial Portfolio, or NOIP, from iStar Financial Inc.
Dividend Capital will used the proceeds from the sale of the Goodyear Tire Distribution Facilities to repay approximately $169.1 million of outstanding borrowings that had been used to partially finance its acquisition of NOIP. The Goodyear Portfolio included all of its properties that were leased to Goodyear Tire & Rubber Company. Sphere: Related Content
Saturday, September 11, 2010
Gladstone Commercial Registers $300M in Securities
Washington Business Journal - September 9, 2010
McLean-based investment company Gladstone Commercial Corp. registered $300 million in securities Thursday.
The registration allows Gladstone Commercial, part of David Gladstone’s family of companies, to issue from time to time common stock, senior common stock, preferred stock, debt securities, depositary shares and subscription rights. Any proceeds from the sales would be used for general corporate purposes, the company said in a securities filing.
Gladstone Commercial (NASDAQ: GOOD) primarily invests in net-leased industrial and commercial real estate property and long-term industrial and commercial mortgages. It has $411.2 million in assets and posted a $17,361 net loss available to common shareholders in the second quarter. Sphere: Related Content
McLean-based investment company Gladstone Commercial Corp. registered $300 million in securities Thursday.
The registration allows Gladstone Commercial, part of David Gladstone’s family of companies, to issue from time to time common stock, senior common stock, preferred stock, debt securities, depositary shares and subscription rights. Any proceeds from the sales would be used for general corporate purposes, the company said in a securities filing.
Gladstone Commercial (NASDAQ: GOOD) primarily invests in net-leased industrial and commercial real estate property and long-term industrial and commercial mortgages. It has $411.2 million in assets and posted a $17,361 net loss available to common shareholders in the second quarter. Sphere: Related Content
Thursday, September 09, 2010
Christie's Signs 30 Year Lease for Brooklyn Warehouse
Brooklyn Daily Eagle - September 7, 2010
In the past few weeks, Brooklyn has gotten a little wealthier—at least in theory. And its culture quotient has popped a couple notches, too. But the assets responsible for these surges are locked behind state of the art security on Red Hook’s waterfront.
In early August, Christie’s Fine Art Storage Services (CFASS) opened its largest facility to date in one of two sister buildings owned by a local Brooklyn real estate developer.
A subsidiary of the Auction House, CFASS, which has locations in London and Singapore, does not actually have an auction element, but instead provides top of the line storage — and display services to facilitate sales, if needed — for valuable pieces.
A perfect fit might have brought more jobs for locals and working artists, but that’s not going to be the case. “You don’t need a lot of people to move art,” said Joel Weinberg, CFASS’s New York general manager, with a hint of disappointment. He leads a staff of five, two of whom have ties to the Red Hook art scene, plus a security team.
Weinberg hasn’t ruled out other opportunities for contributing to the local economy, as CFASS has finished only two of its six floors. Those two floors feature more than 100 private rooms, units of managed storage (larger space shared by smaller collections) and several viewing galleries, which offer clients a museum-quality venue in which to show their art.
The four unfinished floors have all their mechanicals in, but Weinberg said the company wants to stay nimble to unanticipated client needs. And he said local industry could play a role in the buildout.
But interested contractors should probably come with impeccable reputations. Weinberg said that one insurance representative described the facility as “art storage on steroids.” A beeping soundtrack of high-tech security accompanied a tour of the gleaming corridors. Purified, dehumidified air, kept at a constant 70 degrees, wafted overhead. The original gray, pebbled floors were buffed to a smooth finish. A multimillion-dollar elevator system, capable of carrying a classic Rolls Royce, bookends halls bathed in brilliant white and shimmering chrome, a kind of wainscoting that adds protection to the steel-enforced walls.
Hundreds of motion-sensor video cameras sprout from the ceilings and walls, inside and out. It’s no wonder that CFASS had a line of clients waiting to stow their Picassos and Pollocks.
But CFASS doesn’t intend to wall itself off from the community. “We’re going to try to develop a relationship with Brooklyn,” said Weinberg. He said CFASS might hire another five or six people as inventory grows. And the company already has formed a catering relationship with Kevin Moore of Kevin’s restaurant on Van Brunt Street.
In some ways, CFASS does seem to be the perfect tenant for Red Hook. With a 30-year lease, the wholly owned subsidiary of Christie’s international art business offers some protection from disruptive development that might raise rents aggressively. Sphere: Related Content
In the past few weeks, Brooklyn has gotten a little wealthier—at least in theory. And its culture quotient has popped a couple notches, too. But the assets responsible for these surges are locked behind state of the art security on Red Hook’s waterfront.
In early August, Christie’s Fine Art Storage Services (CFASS) opened its largest facility to date in one of two sister buildings owned by a local Brooklyn real estate developer.
A subsidiary of the Auction House, CFASS, which has locations in London and Singapore, does not actually have an auction element, but instead provides top of the line storage — and display services to facilitate sales, if needed — for valuable pieces.
A perfect fit might have brought more jobs for locals and working artists, but that’s not going to be the case. “You don’t need a lot of people to move art,” said Joel Weinberg, CFASS’s New York general manager, with a hint of disappointment. He leads a staff of five, two of whom have ties to the Red Hook art scene, plus a security team.
Weinberg hasn’t ruled out other opportunities for contributing to the local economy, as CFASS has finished only two of its six floors. Those two floors feature more than 100 private rooms, units of managed storage (larger space shared by smaller collections) and several viewing galleries, which offer clients a museum-quality venue in which to show their art.
The four unfinished floors have all their mechanicals in, but Weinberg said the company wants to stay nimble to unanticipated client needs. And he said local industry could play a role in the buildout.
But interested contractors should probably come with impeccable reputations. Weinberg said that one insurance representative described the facility as “art storage on steroids.” A beeping soundtrack of high-tech security accompanied a tour of the gleaming corridors. Purified, dehumidified air, kept at a constant 70 degrees, wafted overhead. The original gray, pebbled floors were buffed to a smooth finish. A multimillion-dollar elevator system, capable of carrying a classic Rolls Royce, bookends halls bathed in brilliant white and shimmering chrome, a kind of wainscoting that adds protection to the steel-enforced walls.
Hundreds of motion-sensor video cameras sprout from the ceilings and walls, inside and out. It’s no wonder that CFASS had a line of clients waiting to stow their Picassos and Pollocks.
But CFASS doesn’t intend to wall itself off from the community. “We’re going to try to develop a relationship with Brooklyn,” said Weinberg. He said CFASS might hire another five or six people as inventory grows. And the company already has formed a catering relationship with Kevin Moore of Kevin’s restaurant on Van Brunt Street.
In some ways, CFASS does seem to be the perfect tenant for Red Hook. With a 30-year lease, the wholly owned subsidiary of Christie’s international art business offers some protection from disruptive development that might raise rents aggressively. Sphere: Related Content
Monday, September 06, 2010
Woolworths Seeking AU$900 Million Sale Leaseback of Over 30 Shopping Centers in Australia
The Australian - September 7, 2010
Woolworths is offloading a $900 million-plus portfolio of shopping centres.
After unsuccessfully sounding out potential investors in the portfolio, the retailer is seeking tenders, in its largest sale of property assets.
The last time Woolies sold a chunk of its assets was in June 2006 when it sold 11 distribution centres to a consortium led by Lend Lease for $846m.
The properties, which will be leased back by Woolies, include Ashgrove Marketplace in Queensland, Carnes Hill Marketplace in NSW and Pakington Strand in Geelong West, Victoria.
Woolworths property director Ralph Kemmler said it was not unusual for the retailer to develop and sell assets.
It had been developing shopping centres since the early 1990s, Mr Kemmler said. It stepped up development during the global crisis, when developers and listed property trusts drew back.
"We had to step in to fill the hole to keep up with our new store openings," he said.
Last year, it completed between 10 and 12 new centres, he said, and it would continue in-house development.
"This is a unique bundle of assets consisting of supermarkets, some with a cluster of shops around them, and sub-regional centres."
Mr Kemmler said local and offshore investors were interested in a sizeable portfolio, ranging from $300m to $1 billion.
There was "money available on the world market that would be interested in investing in quality assets".
Woolworths hopes to conclude a transaction in the next six months. "There is no urgency to offload this portfolio," Mr Kemmler said.
The retailer owns more than 1000 properties nationally and last year sold about $100m of centres and service stations.
Woolworths and its US joint-venture partner Lowes are planning 150 hardware stores, and have secured half of the sites. However, Mr Kemmler said, the sale was not an exercise in recycling to build the hardware stores.
"They went around to a lot of people asking for a proposal for the assets earlier this year," a leading funds management group's property head said.
"It is an awkward time for them to be offering the assets. They will be competing, for instance, with the Centro portfolio," he said.
The main issue would be the leases, which favoured the retailer. "It is hard to do a deal with Woolworths."
Another source said the Future Fund and the Canadian pension funds were unlikely to be interested. Sphere: Related Content
Woolworths is offloading a $900 million-plus portfolio of shopping centres.
After unsuccessfully sounding out potential investors in the portfolio, the retailer is seeking tenders, in its largest sale of property assets.
The last time Woolies sold a chunk of its assets was in June 2006 when it sold 11 distribution centres to a consortium led by Lend Lease for $846m.
The properties, which will be leased back by Woolies, include Ashgrove Marketplace in Queensland, Carnes Hill Marketplace in NSW and Pakington Strand in Geelong West, Victoria.
Woolworths property director Ralph Kemmler said it was not unusual for the retailer to develop and sell assets.
It had been developing shopping centres since the early 1990s, Mr Kemmler said. It stepped up development during the global crisis, when developers and listed property trusts drew back.
"We had to step in to fill the hole to keep up with our new store openings," he said.
Last year, it completed between 10 and 12 new centres, he said, and it would continue in-house development.
"This is a unique bundle of assets consisting of supermarkets, some with a cluster of shops around them, and sub-regional centres."
Mr Kemmler said local and offshore investors were interested in a sizeable portfolio, ranging from $300m to $1 billion.
There was "money available on the world market that would be interested in investing in quality assets".
Woolworths hopes to conclude a transaction in the next six months. "There is no urgency to offload this portfolio," Mr Kemmler said.
The retailer owns more than 1000 properties nationally and last year sold about $100m of centres and service stations.
Woolworths and its US joint-venture partner Lowes are planning 150 hardware stores, and have secured half of the sites. However, Mr Kemmler said, the sale was not an exercise in recycling to build the hardware stores.
"They went around to a lot of people asking for a proposal for the assets earlier this year," a leading funds management group's property head said.
"It is an awkward time for them to be offering the assets. They will be competing, for instance, with the Centro portfolio," he said.
The main issue would be the leases, which favoured the retailer. "It is hard to do a deal with Woolworths."
Another source said the Future Fund and the Canadian pension funds were unlikely to be interested. Sphere: Related Content
Wednesday, September 01, 2010
ECM Realty Trust Plans $380M IPO of Net Lease REIT
The Wall Street Journal - August 26, 2010
ECM Realty Trust Inc. plans to sell up to an estimated $380 million in shares through an initial public offering of its stock to repay debt and make acquisitions.
The commercial real-estate company will own 39 net leased properties when the IPO is completed and aims to become a real-estate investment trust, according to a filing with the Securities and Exchange Commission.
The number of IPOs in the pipeline continues to rise, though the number being completed is lower, with a series of companies cutting prices or pricing below their expected ranges. Meanwhile a number of real-estate concerns have been raising capital while hoping to acquire properties while the market is weak.
Potential acquisitions in ECM's pipeline have an estimated total purchase price of more than $400 million.
The company's initial properties were 100% leased as of June 30, with no lease expirations until 2015. Most of its office properties are corporate or regional headquarters, while its industrial properties are "significant regional or critical hub distribution facilities" and the "substantial majority" of the retail properties are in "high-performing locations."
For the first half of this year, ECM's loss widened to $1.5 million from $138,000 amid acquisition costs while revenue rose 1.6% to $14.3 million.
The company intends to apply for listing on the New York Stock Exchange under the symbol ECMR. Sphere: Related Content
ECM Realty Trust Inc. plans to sell up to an estimated $380 million in shares through an initial public offering of its stock to repay debt and make acquisitions.
The commercial real-estate company will own 39 net leased properties when the IPO is completed and aims to become a real-estate investment trust, according to a filing with the Securities and Exchange Commission.
The number of IPOs in the pipeline continues to rise, though the number being completed is lower, with a series of companies cutting prices or pricing below their expected ranges. Meanwhile a number of real-estate concerns have been raising capital while hoping to acquire properties while the market is weak.
Potential acquisitions in ECM's pipeline have an estimated total purchase price of more than $400 million.
The company's initial properties were 100% leased as of June 30, with no lease expirations until 2015. Most of its office properties are corporate or regional headquarters, while its industrial properties are "significant regional or critical hub distribution facilities" and the "substantial majority" of the retail properties are in "high-performing locations."
For the first half of this year, ECM's loss widened to $1.5 million from $138,000 amid acquisition costs while revenue rose 1.6% to $14.3 million.
The company intends to apply for listing on the New York Stock Exchange under the symbol ECMR. Sphere: Related Content
Wednesday, August 25, 2010
Newark NJ Mulls $50 Million Sale Leaseback of City Properties
NJ.com - August 25, 2010
Desperate to close an $83 million deficit, Newark plans to sell one of the last assets it has remaining. Itself, one municipal building at a time.
Police precincts, fire houses and office buildings are being eyed for a sale the city council hopes will generate $50 million for the 2010 budget.
The financial gambit calls for the Essex County Improvement Authority to sell bonds to buy the buildings and then lease them back to Newark over a period of years, according to a plan laid out Tuesday by city and county officials.
It’s a costly and risky solution. With capital improvements, fees and services, the deal is expected to cost the city about $60 million in the long term.
Before any of that happens, the city will have to run through a gauntlet of bureaucracy at warp speed. The plan has to be approved by the authority, the Newark City Council, the Essex County Freeholders, and the state Local Finance Board.
But city leaders say they are running out of time and options to forestall a crippling financial meltdown. Without a solution soon the city will be forced to levy a 30 percent tax increase. Even with the "lease-back" revenue, Newark is facing a possible 20 percent property tax hike and more than 600 layoffs.
The city must have the $50 million in its accounts by mid-November in order to guarantee a balanced budget for this year — and avoid a potential takeover by the state. City officials Tuesday said there was no room for error or delay.
"We’ve built a calendar around a Nov. 12 to a Nov. 18 window, and we’ve worked backward," said Henry Amoroso, a paid city budget consultant. "This is unprecedentedly tight."
City leaders and budget experts disagree on how the city found itself in a budget crisis. Some say the mayor should have attacked the city’s bloated spending years ago. Others say the recession has choked off revenues at the worst possible time for Newark.
Though selling your police precincts seems a bizarre way to raise money, some urban experts say it's a solution that’s catching on.
"The variety of places that are exploring a variety of measures is really quite striking," said Mark Muro, senior fellow at the Brookings Institution. Newark is "really quite in the mainstream," he said.
Mayor Cory Booker’s office would not provide the list of properties being considered, but Amoroso said the buildings had to be in reasonably good condition and the city had to be the tenant. The finance building on Broad Street, one of Newark’s main drags, was mentioned as a good example, along with the city welfare building and the child and family well-being building. The only building not on the table is City Hall, officials said.
"We’re going to follow the council’s leadership on which buildings" to sell, said Booker, who stressed that the idea is being pushed by city council members. "At the end of the day, they’re the deciders. They and the Essex County Improvement Authority."
Essex County Executive Joseph DiVincenzo said as long as bond buyers and not taxpayers were the only ones liable in the transaction, he would support it, but he warned that it is far from a done deal.
"It’s just in the beginning stages," DiVincenzo said. "There’s a lot of work that has to be done. Every building has to be appraised."
Newark will pay the county between $50,000 and $100,000 to appraise the properties as well as hire their own evaluators.
The plan was first floated by West Ward Councilman Ronald Rice as one of several alternatives to the creation of a municipal utilities authority to manage the city’s water. When the council tabled the MUA, it was left with a $70 million hole in the 2010 budget. That number has grown to $83 million, Amoroso said Tuesday.
Rice said he is glad the administration is working more closely with the council after the failure of the MUA.
"I have to give my colleagues credit. They’re the ones who were emphatic that the administration drill down on these ideas," Rice said. "We were told put up or shut up, so we started putting up." Sphere: Related Content
Desperate to close an $83 million deficit, Newark plans to sell one of the last assets it has remaining. Itself, one municipal building at a time.
Police precincts, fire houses and office buildings are being eyed for a sale the city council hopes will generate $50 million for the 2010 budget.
The financial gambit calls for the Essex County Improvement Authority to sell bonds to buy the buildings and then lease them back to Newark over a period of years, according to a plan laid out Tuesday by city and county officials.
It’s a costly and risky solution. With capital improvements, fees and services, the deal is expected to cost the city about $60 million in the long term.
Before any of that happens, the city will have to run through a gauntlet of bureaucracy at warp speed. The plan has to be approved by the authority, the Newark City Council, the Essex County Freeholders, and the state Local Finance Board.
But city leaders say they are running out of time and options to forestall a crippling financial meltdown. Without a solution soon the city will be forced to levy a 30 percent tax increase. Even with the "lease-back" revenue, Newark is facing a possible 20 percent property tax hike and more than 600 layoffs.
The city must have the $50 million in its accounts by mid-November in order to guarantee a balanced budget for this year — and avoid a potential takeover by the state. City officials Tuesday said there was no room for error or delay.
"We’ve built a calendar around a Nov. 12 to a Nov. 18 window, and we’ve worked backward," said Henry Amoroso, a paid city budget consultant. "This is unprecedentedly tight."
City leaders and budget experts disagree on how the city found itself in a budget crisis. Some say the mayor should have attacked the city’s bloated spending years ago. Others say the recession has choked off revenues at the worst possible time for Newark.
Though selling your police precincts seems a bizarre way to raise money, some urban experts say it's a solution that’s catching on.
"The variety of places that are exploring a variety of measures is really quite striking," said Mark Muro, senior fellow at the Brookings Institution. Newark is "really quite in the mainstream," he said.
Mayor Cory Booker’s office would not provide the list of properties being considered, but Amoroso said the buildings had to be in reasonably good condition and the city had to be the tenant. The finance building on Broad Street, one of Newark’s main drags, was mentioned as a good example, along with the city welfare building and the child and family well-being building. The only building not on the table is City Hall, officials said.
"We’re going to follow the council’s leadership on which buildings" to sell, said Booker, who stressed that the idea is being pushed by city council members. "At the end of the day, they’re the deciders. They and the Essex County Improvement Authority."
Essex County Executive Joseph DiVincenzo said as long as bond buyers and not taxpayers were the only ones liable in the transaction, he would support it, but he warned that it is far from a done deal.
"It’s just in the beginning stages," DiVincenzo said. "There’s a lot of work that has to be done. Every building has to be appraised."
Newark will pay the county between $50,000 and $100,000 to appraise the properties as well as hire their own evaluators.
The plan was first floated by West Ward Councilman Ronald Rice as one of several alternatives to the creation of a municipal utilities authority to manage the city’s water. When the council tabled the MUA, it was left with a $70 million hole in the 2010 budget. That number has grown to $83 million, Amoroso said Tuesday.
Rice said he is glad the administration is working more closely with the council after the failure of the MUA.
"I have to give my colleagues credit. They’re the ones who were emphatic that the administration drill down on these ideas," Rice said. "We were told put up or shut up, so we started putting up." Sphere: Related Content
Monday, August 23, 2010
Accor Agrees to $467 Million Sale Leaseback of 48 Hotels in Europe
Reuters - August 23, 2010
French hotel company Accor (ACCP.PA) agreed to sell 48 hotels in Europe for 367 million euros ($466.7 million) as part of its mission to cut debt and secure growth over the next few years.
The deal, which is due to be completed before the end of this year, will give Accor a cash boost of 282 million euros and will add around 3 million euros to its annual pretax profit from 2010, the hotel group said in a statement on Monday.
The hotels include a Novotel at Munich Airport and a 772-room Ibis at Charles de Gaulle Airport in Paris. The two buyers are insurer Predica, part of Credit Agricole (CAGR.PA), and property group Fonciere des Murs (FERP.PA), a subsidiary of Fonciere des Regions (FDR.PA).
Taken together with previous announcements, the deal means Accor has secured a year-to-date positive cash impact of just over 500 million euros from asset sales, above its current full-year target of 450 million. [ID:nLDE64D0LI]
An Accor spokesman was unavailable for comment. The firm said it would continue to manage the 48 hotels under a 12-year variable lease, renewable six times. Average annual rent will be 19 percent of the hotels' revenue, with a minimum guarantee for 2011 and 2012 of 23 million euros (an initial annual yield of approximately 6.25%).
Accor is eyeing asset sales through 2013 of around 2 billion euros to help fund growth after spinning off its cash-rich services unit Edenred (EDEN.PA) earlier this year.
It is aiming for the world No. 3 spot by 2015 and wants to be Europe's largest franchisor. It is currently world No. 4 after InterContinental (IHG.L), Marriott (MAR.N) and the Hilton and Starwood (HOT.N) chains. Sphere: Related Content
French hotel company Accor (ACCP.PA) agreed to sell 48 hotels in Europe for 367 million euros ($466.7 million) as part of its mission to cut debt and secure growth over the next few years.
The deal, which is due to be completed before the end of this year, will give Accor a cash boost of 282 million euros and will add around 3 million euros to its annual pretax profit from 2010, the hotel group said in a statement on Monday.
The hotels include a Novotel at Munich Airport and a 772-room Ibis at Charles de Gaulle Airport in Paris. The two buyers are insurer Predica, part of Credit Agricole (CAGR.PA), and property group Fonciere des Murs (FERP.PA), a subsidiary of Fonciere des Regions (FDR.PA).
Taken together with previous announcements, the deal means Accor has secured a year-to-date positive cash impact of just over 500 million euros from asset sales, above its current full-year target of 450 million. [ID:nLDE64D0LI]
An Accor spokesman was unavailable for comment. The firm said it would continue to manage the 48 hotels under a 12-year variable lease, renewable six times. Average annual rent will be 19 percent of the hotels' revenue, with a minimum guarantee for 2011 and 2012 of 23 million euros (an initial annual yield of approximately 6.25%).
Accor is eyeing asset sales through 2013 of around 2 billion euros to help fund growth after spinning off its cash-rich services unit Edenred (EDEN.PA) earlier this year.
It is aiming for the world No. 3 spot by 2015 and wants to be Europe's largest franchisor. It is currently world No. 4 after InterContinental (IHG.L), Marriott (MAR.N) and the Hilton and Starwood (HOT.N) chains. Sphere: Related Content
Saturday, August 21, 2010
Aldi Agrees to Sale Leaseback of 80 Retail Outlets in Southern Germany
The Wall Street Journal - August 20, 2010
Insurer Allianz SE (ALV.XE) paid a 'clear three-digit million euros amount' for the 80 retail outlets in southern Germany owned by Aldi Immobilien KG, a person familiar with the matter told Dow Jones Newswires Friday.
Earlier Friday, Allianz, Europe's largest insurer by premium income, said its German real-estate unit is buying 80 retail outlets in southern Germany from Aldi Sued in a leaseback deal aimed at diversifying its investment portfolio.
Aldi, which is one of Germany's largest discount grocery retail chains, will continue to operate the outlets. Aldi Sued is the main long-term lessee of the outlets, which have an average sales area of 900 square meters, Allianz said.
Spokespeople for Allianz Real Estate Germany GmbH and Aldi Sued declined to comment on the transaction value, saying both parties agreed not to disclose the investment details of the deal.
Frank Neumann, a real-estate stock analyst for Bankhaus Lampe, had said he estimates the value of the deal at around EUR80 million.
Aldi Sued operates more than 1,780 retail branches in western and southern Germany. Aldi Nord operates more than 2,500 retail outlets in northern and eastern Germany. Sphere: Related Content
Insurer Allianz SE (ALV.XE) paid a 'clear three-digit million euros amount' for the 80 retail outlets in southern Germany owned by Aldi Immobilien KG, a person familiar with the matter told Dow Jones Newswires Friday.
Earlier Friday, Allianz, Europe's largest insurer by premium income, said its German real-estate unit is buying 80 retail outlets in southern Germany from Aldi Sued in a leaseback deal aimed at diversifying its investment portfolio.
Aldi, which is one of Germany's largest discount grocery retail chains, will continue to operate the outlets. Aldi Sued is the main long-term lessee of the outlets, which have an average sales area of 900 square meters, Allianz said.
Spokespeople for Allianz Real Estate Germany GmbH and Aldi Sued declined to comment on the transaction value, saying both parties agreed not to disclose the investment details of the deal.
Frank Neumann, a real-estate stock analyst for Bankhaus Lampe, had said he estimates the value of the deal at around EUR80 million.
Aldi Sued operates more than 1,780 retail branches in western and southern Germany. Aldi Nord operates more than 2,500 retail outlets in northern and eastern Germany. Sphere: Related Content
Friday, August 20, 2010
Eroski Enters EUR45 Million Sale Leaseback of 21 Grocery Stores in Spain
Property Week - August 18, 2010
Rockspring Property Investment Managers has bought a portfolio of 21 Spanish food stores for €45m.
The fund manager has bought the properties, all in the Basque country and Majorca, in a sale-and leaseback-deal with Spanish food retailer Eroski.
Eroski has signed a 20-year lease on the entire 320,000 sq ft portfolio, which was bought on behalf of the single-client account of a UK pension fund.
The UK pension fund account is targeting un-leveraged core and core plus returns across central and western European retail, office and industrial properties – with a toal spending power of €300m.
James Preston, Rockspring Iberia’s managingdirector, said: “Food retail has proven to be a well performing, defensive sector across Spain both before and during the economic downturn; we are therefore pleased to have secured exposure to this successful asset type.
“These properties appealed to us due to the combination of their prime location, strong local economic fundamentals, sustainable rental levels and the quality of Eroski as a tenant.
“As such, the investment provides a high degree of insulation from any further effects of the downturn, as well as being well positioned for any recovery.”
José Miguel Fernández Astobiza, Eroski’s development manager, said “This portfolio disposal shows further progress in our strategy as we seek to dispose of the freehold interest in our properties in order to release capital to develop our commercial retail activities.”
Cushman & Wakefield advised Eroski and Nicea Abogodas advised Rockspring. Sphere: Related Content
Rockspring Property Investment Managers has bought a portfolio of 21 Spanish food stores for €45m.
The fund manager has bought the properties, all in the Basque country and Majorca, in a sale-and leaseback-deal with Spanish food retailer Eroski.
Eroski has signed a 20-year lease on the entire 320,000 sq ft portfolio, which was bought on behalf of the single-client account of a UK pension fund.
The UK pension fund account is targeting un-leveraged core and core plus returns across central and western European retail, office and industrial properties – with a toal spending power of €300m.
James Preston, Rockspring Iberia’s managingdirector, said: “Food retail has proven to be a well performing, defensive sector across Spain both before and during the economic downturn; we are therefore pleased to have secured exposure to this successful asset type.
“These properties appealed to us due to the combination of their prime location, strong local economic fundamentals, sustainable rental levels and the quality of Eroski as a tenant.
“As such, the investment provides a high degree of insulation from any further effects of the downturn, as well as being well positioned for any recovery.”
José Miguel Fernández Astobiza, Eroski’s development manager, said “This portfolio disposal shows further progress in our strategy as we seek to dispose of the freehold interest in our properties in order to release capital to develop our commercial retail activities.”
Cushman & Wakefield advised Eroski and Nicea Abogodas advised Rockspring. Sphere: Related Content
WP Carey Funds Build to Suit of Logistics Facility for Neuca SA in Poland
The Wall Street Journal - August 17, 2010
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that its publicly-held, non-traded REIT affiliate, CPA(R):17 - Global, has provided build to suit financing that will fund 100% of the construction and related development costs for a logistics facility in Poznan, Poland being developed by Panattoni Europe. Upon completion, the facility will be owned by CPA(R):17 and will be fully occupied under a long term triple net lease with Neuca SA (formerly known as Torfarm SA), the largest wholesale pharmaceutical distributor in Poland.
The to-be-built facility will comprise approximately 123,000 square feet and will serve as one of Neuca's three strategic logistics sites for pharmaceutical distribution across Poland. The facility is located in Poznan, the 4th largest logistics hub in Poland. Linking seven national and international roads and located midway between Berlin and Warsaw, Poznan forms an important trade-route junction. Construction is anticipated to be completed in January 2011.
Jeff Lefleur, Executive Director of W. P. Carey, said: "Our large capital base and long term investment approach gives us the ability to finance 100% of construction and related development costs in markets where such capital remains challenging for developers to access. We hope to continue being a reliable funding source to experienced developers such as Panattoni for their long term, single-tenant projects. We are also pleased that our financing will help Neuca meet its new facility needs."
Robert Dobrzycki, Managing Partner of Panattoni Europe, noted: "Choosing W. P. Carey as our funding source enabled us to focus on the needs and timing of the project, avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part." Sphere: Related Content
Investment firm W. P. Carey & Co. LLC (NYSE: WPC) today announced that its publicly-held, non-traded REIT affiliate, CPA(R):17 - Global, has provided build to suit financing that will fund 100% of the construction and related development costs for a logistics facility in Poznan, Poland being developed by Panattoni Europe. Upon completion, the facility will be owned by CPA(R):17 and will be fully occupied under a long term triple net lease with Neuca SA (formerly known as Torfarm SA), the largest wholesale pharmaceutical distributor in Poland.
The to-be-built facility will comprise approximately 123,000 square feet and will serve as one of Neuca's three strategic logistics sites for pharmaceutical distribution across Poland. The facility is located in Poznan, the 4th largest logistics hub in Poland. Linking seven national and international roads and located midway between Berlin and Warsaw, Poznan forms an important trade-route junction. Construction is anticipated to be completed in January 2011.
Jeff Lefleur, Executive Director of W. P. Carey, said: "Our large capital base and long term investment approach gives us the ability to finance 100% of construction and related development costs in markets where such capital remains challenging for developers to access. We hope to continue being a reliable funding source to experienced developers such as Panattoni for their long term, single-tenant projects. We are also pleased that our financing will help Neuca meet its new facility needs."
Robert Dobrzycki, Managing Partner of Panattoni Europe, noted: "Choosing W. P. Carey as our funding source enabled us to focus on the needs and timing of the project, avoid the risks of relying on short-term borrowing and the process of securing a forward-purchaser, all while eliminating any equity outlay on our part." Sphere: Related Content
Tuesday, August 17, 2010
AMF Bowling Completes £15.2 Million Sale Leaseback of Nine Family Entertainment Centers in UK
Property Magazine International - August 16, 2010
Columbus UK Real Estate Fund, advised by Columbus Capital Management, has completed a purchase and leaseback of nine family entertainment centres from AMF Bowling. This combined with an equity investment from Close Brothers Private Equity (CBPE Capital), has financed AMF’s simultaneous acquisition of its main rival, Hollywood Bowl, from Mitchells and Butler plc.
AMF has acquired the 24 Hollywood Bowl centres for £27 million which, together with the existing 18 AMF centres makes the combined AMF Hollywood business the UK market leader with 42 prime sites across the UK. The AMF management team is highly regarded in the sector and is backed by the shareholders of Bourne Leisure, the owner of Butlins and Haven Holidays.
The nine centres acquired by Columbus range in size from 20,000 sq ft to 30,000 sq ft and are all situated on retail parks or major arterial roads. They are located in Ashford, Maidstone, Torquay, Peterborough, Wellingborough, Shrewsbury, Wigan, Carlisle and Stirling. The units have all been leased back to the combined AMF Hollywood Bowl business for 25 years at an average rent of approximately £6 per sq ft with rent reviews geared to the RPI Index.
The price of approximately £15.2 million reflects an initial yield of 9.3%.
Douglas Stevens & Co and Chester Properties advised Columbus Capital whilst Montague Evans acted for AMF Bowling. Sphere: Related Content
Columbus UK Real Estate Fund, advised by Columbus Capital Management, has completed a purchase and leaseback of nine family entertainment centres from AMF Bowling. This combined with an equity investment from Close Brothers Private Equity (CBPE Capital), has financed AMF’s simultaneous acquisition of its main rival, Hollywood Bowl, from Mitchells and Butler plc.
AMF has acquired the 24 Hollywood Bowl centres for £27 million which, together with the existing 18 AMF centres makes the combined AMF Hollywood business the UK market leader with 42 prime sites across the UK. The AMF management team is highly regarded in the sector and is backed by the shareholders of Bourne Leisure, the owner of Butlins and Haven Holidays.
The nine centres acquired by Columbus range in size from 20,000 sq ft to 30,000 sq ft and are all situated on retail parks or major arterial roads. They are located in Ashford, Maidstone, Torquay, Peterborough, Wellingborough, Shrewsbury, Wigan, Carlisle and Stirling. The units have all been leased back to the combined AMF Hollywood Bowl business for 25 years at an average rent of approximately £6 per sq ft with rent reviews geared to the RPI Index.
The price of approximately £15.2 million reflects an initial yield of 9.3%.
Douglas Stevens & Co and Chester Properties advised Columbus Capital whilst Montague Evans acted for AMF Bowling. Sphere: Related Content
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