Marriott International Web Site - December 30, 2005
Marriott International, Inc. (NYSE:MAR) announced today that it has completed the sale of a portfolio of land underlying 75 Courtyard by Marriott hotels for approximately $246 million in cash to CBM Land Joint Venture limited partnership (CBM Land JV). CBM Land JV is a joint venture majority- owned by Sarofim Realty Advisors (Sarofim), on behalf of an institutional investor. In addition, Marriott announced that it has contributed land underlying an additional 9 Courtyard hotels, worth approximately $40 million, to CBM Land JV, thereby retaining an approximately 23 percent equity stake in CBM Land JV.
Arne M. Sorenson, Marriott's executive vice president and chief financial officer, and president of continental European lodging, said, "We are pleased to conclude a transaction that both meaningfully benefits our return on invested capital moving forward and aligns well with our strategy of creating value through managing hotels rather than owning real estate."
The 84 parcels of land continue to be leased to the Courtyard by Marriott Joint Venture, which was substantially acquired by Sarofim Realty Advisors for the same institutional client on March 29, 2005. That acquisition recapitalized that joint venture and accelerated the reinvention of its 120 Courtyard hotels. Similar to today’s announcement, in that transaction Marriott agreed to maintain a minority ownership stake in that joint venture for at least three years.
Sphere: Related Content
Saturday, December 31, 2005
Tuesday, December 27, 2005
MAS May Sell & Leaseback HQ in Kuala Lumpur
The Star - December 24, 2005
Malaysian Airlines System Bhd (MAS) may sell and leaseback it's 35 story headquarters building, Bangunan MAS, in Kuala Lumpur and other properties to address its financial needs as it tries to make a turnaround, a company spokesman said. The Government, through various state entities, owns about 92% of MAS, which includes a 69.3% stake held indirectly by state investment agency Khazanah Nasional Bhd. This option was considered during its widespread asset unbundling or WAU exercise in 2002, in which the building was to be sold and leased back to Assets Global Network Sdn Bhd, a subsidiary of Ministry of Finance Inc. Sphere: Related Content
Malaysian Airlines System Bhd (MAS) may sell and leaseback it's 35 story headquarters building, Bangunan MAS, in Kuala Lumpur and other properties to address its financial needs as it tries to make a turnaround, a company spokesman said. The Government, through various state entities, owns about 92% of MAS, which includes a 69.3% stake held indirectly by state investment agency Khazanah Nasional Bhd. This option was considered during its widespread asset unbundling or WAU exercise in 2002, in which the building was to be sold and leased back to Assets Global Network Sdn Bhd, a subsidiary of Ministry of Finance Inc. Sphere: Related Content
Monday, December 26, 2005
Farmers Insurance to Sell & Leaseback Headquarters in Washington
Businesswire - December 22, 2005
Farmers New World Life Insurance Company, the nation's third-largest personal lines property & casualty insurance group, announced today the sale of its headquarters property at 3003 77th Avenue S.E. on Mercer Island, Washington. Farmers has committed to a lease back of the property for 15 years. The decision to sell the building is part of Farmers' continued efforts to enhance operating efficiency and follows similar real estate transactions at other locations. For example, Farmers recently sold its Home Office headquarters complex in Los Angeles but leased the complex back on a long-term basis.
Farmers, which has a long history in the Seattle area, remains committed to the Mercer Island area for its life insurance company operations. The life company currently serves life insurance customers in 41 states. Farmers Life employs 550 people at its Mercer Island headquarters. Sphere: Related Content
Farmers New World Life Insurance Company, the nation's third-largest personal lines property & casualty insurance group, announced today the sale of its headquarters property at 3003 77th Avenue S.E. on Mercer Island, Washington. Farmers has committed to a lease back of the property for 15 years. The decision to sell the building is part of Farmers' continued efforts to enhance operating efficiency and follows similar real estate transactions at other locations. For example, Farmers recently sold its Home Office headquarters complex in Los Angeles but leased the complex back on a long-term basis.
Farmers, which has a long history in the Seattle area, remains committed to the Mercer Island area for its life insurance company operations. The life company currently serves life insurance customers in 41 states. Farmers Life employs 550 people at its Mercer Island headquarters. Sphere: Related Content
Valtur Enters Euro 103 Million Sale Leaseback of Four Tourist Vllages
Pirelli Real Estate Web Site - December 23 2005
Pirelli RE has signed a binding agreement with Valtur for the acquisition of four tourist villages for an overall value of Euro 103 million, located in Marilleva, Pila, Nicotera and Ostuni. The transaction will take place through a real estate fund reserved for institutional investors; Pirelli RE will hold a share of 35%, in line with its business model (which envisages investments through qualified minority shareholdings), and will provide all the property services for the assets purchased.
Over the next two years investments of around Euro 12 million are planned for the development of the structures: 50% by the fund and 50% by Valtur. The latter will continue to manage the villages under an 18 years leasing contract, renewable for a further nine years. The closing of the transaction is expected by March 2006.
The Marilleva and Pila facilities, in Trentino and Valle d’Aosta respectively, each have an accommodation capacity of around 260 apartments and offer direct access to the ski lifts. The first covers an area of 10,000 sq m and the second an area of 13,000 sq m. The other two villages purchased, located near the sea at Ostuni, in Apulia, and Nicotera, in Calabria, have an accommodation capacity of 470 and 290 apartments respectively. The Ostuni village, the biggest in Valtur’s Italian chain, covers an area of 500,000 sq m, together with an additional 600,000 sq m for the property’s green spaces. Nicotera covers an area of 143,000 sq m.
The transaction, financed by Banca Intesa, is Pirelli RE’s first significantly large purchase in the tourism sector after several small investments, and follows the investment in a 25% share of Turismo & Immobiliare, a company which holds 49% of the share capital of Italia Turismo. Sphere: Related Content
Pirelli RE has signed a binding agreement with Valtur for the acquisition of four tourist villages for an overall value of Euro 103 million, located in Marilleva, Pila, Nicotera and Ostuni. The transaction will take place through a real estate fund reserved for institutional investors; Pirelli RE will hold a share of 35%, in line with its business model (which envisages investments through qualified minority shareholdings), and will provide all the property services for the assets purchased.
Over the next two years investments of around Euro 12 million are planned for the development of the structures: 50% by the fund and 50% by Valtur. The latter will continue to manage the villages under an 18 years leasing contract, renewable for a further nine years. The closing of the transaction is expected by March 2006.
The Marilleva and Pila facilities, in Trentino and Valle d’Aosta respectively, each have an accommodation capacity of around 260 apartments and offer direct access to the ski lifts. The first covers an area of 10,000 sq m and the second an area of 13,000 sq m. The other two villages purchased, located near the sea at Ostuni, in Apulia, and Nicotera, in Calabria, have an accommodation capacity of 470 and 290 apartments respectively. The Ostuni village, the biggest in Valtur’s Italian chain, covers an area of 500,000 sq m, together with an additional 600,000 sq m for the property’s green spaces. Nicotera covers an area of 143,000 sq m.
The transaction, financed by Banca Intesa, is Pirelli RE’s first significantly large purchase in the tourism sector after several small investments, and follows the investment in a 25% share of Turismo & Immobiliare, a company which holds 49% of the share capital of Italia Turismo. Sphere: Related Content
Thursday, December 22, 2005
UNITE Enters £64 Million Sale Leaseback of Student Housing Properties
Freeman News / AFX - December 19, 2005
UNITE Group plc has completed the sale of a property unit trust which owns three student accommodation buildings operated by UNITE, to Savills plc, for £64.1m in cash. The amount is equivalent to a 5.22% net initial yield. Under the terms of the deal, UNITE will retain full responsibility for the management of the buildings, as well as a share in the net income after management costs. UNITE will retain approximately 23% of the gross rents after paying rent of £3.4m per year to the fund under three long-term leases.
The properties, all purpose-built in the past three years, are located in Bournemouth, Bath and Portsmouth and provide 1,561 bed spaces, representing about 5% of UNITE's portfolio. UNITE said it will use most of the proceeds to repay borrowings, with the remaining capital of approximately £17m to be reinvested into the group's development activities. Sphere: Related Content
UNITE Group plc has completed the sale of a property unit trust which owns three student accommodation buildings operated by UNITE, to Savills plc, for £64.1m in cash. The amount is equivalent to a 5.22% net initial yield. Under the terms of the deal, UNITE will retain full responsibility for the management of the buildings, as well as a share in the net income after management costs. UNITE will retain approximately 23% of the gross rents after paying rent of £3.4m per year to the fund under three long-term leases.
The properties, all purpose-built in the past three years, are located in Bournemouth, Bath and Portsmouth and provide 1,561 bed spaces, representing about 5% of UNITE's portfolio. UNITE said it will use most of the proceeds to repay borrowings, with the remaining capital of approximately £17m to be reinvested into the group's development activities. Sphere: Related Content
Apple Signs 20 Year Net Lease in Manhattan
iPodNN - December 19, 2005
Apple has found yet another retail store location in Manhattan, after it was unable to obtain approval for a location in Flatiron district earlier this year. Apple has reportedly "net-leased the entire, 30,000-foot five-story building from Jeff Sutton of Wharton Realty and his partner, SL Green Realty Trust," according to a report in the New York Post.
The upcoming retail location on West 34th street will be the third retail location in the lucrative Manhattan market, as the company finalized a second location earlier this year. Apple next spring will open a second 20,000-square-foot retail store in the underground concourse of the General Motors building near Midtown. That lease was finally signed after Jobs negotiated to keep the giant $9 million 32-foot hollow glass cube that he designed, following the expiration of the 20-year store lease. Sphere: Related Content
Apple has found yet another retail store location in Manhattan, after it was unable to obtain approval for a location in Flatiron district earlier this year. Apple has reportedly "net-leased the entire, 30,000-foot five-story building from Jeff Sutton of Wharton Realty and his partner, SL Green Realty Trust," according to a report in the New York Post.
The upcoming retail location on West 34th street will be the third retail location in the lucrative Manhattan market, as the company finalized a second location earlier this year. Apple next spring will open a second 20,000-square-foot retail store in the underground concourse of the General Motors building near Midtown. That lease was finally signed after Jobs negotiated to keep the giant $9 million 32-foot hollow glass cube that he designed, following the expiration of the 20-year store lease. Sphere: Related Content
Wednesday, December 21, 2005
Net Leased Nestle Warehouse Portfolio Sold for $141.5 Million
CoStar Web Site - December 19, 2005
H&R REIT of Ontario, Canada purchased three industrial buildings in Atlanta, GA, Chicago, IL, and Fort Worth, TX from The Cardinal Co. and its affiliates for approximately $141.5 million, or about $64 per square foot. All three industrial buildings are leased to Nestlé USA Inc. at an average of 12 years.
The buildings acquired in the sale are at 1 Nestlé Court in McDonough, GA (782,565 square feet), 800 Nestlé Court in DeKalb, IL (860,939 square feet) and 13600 Independence Parkway in Fort Worth (524,252 square feet).
Terry Reitz, Kevin Shannon, Bruce Granger, Gary Lindsey and Dave Watson of Grubb & Ellis, along with Asher Hyman of Corvest Realty Group, represented the seller. The buyer had in-house representation. Sphere: Related Content
H&R REIT of Ontario, Canada purchased three industrial buildings in Atlanta, GA, Chicago, IL, and Fort Worth, TX from The Cardinal Co. and its affiliates for approximately $141.5 million, or about $64 per square foot. All three industrial buildings are leased to Nestlé USA Inc. at an average of 12 years.
The buildings acquired in the sale are at 1 Nestlé Court in McDonough, GA (782,565 square feet), 800 Nestlé Court in DeKalb, IL (860,939 square feet) and 13600 Independence Parkway in Fort Worth (524,252 square feet).
Terry Reitz, Kevin Shannon, Bruce Granger, Gary Lindsey and Dave Watson of Grubb & Ellis, along with Asher Hyman of Corvest Realty Group, represented the seller. The buyer had in-house representation. Sphere: Related Content
Alstom Power Enters 24.5 Million Euro Sale Leaseback of HQ
Slough Estate Web Site - December 21, 2005
Slough Estates International has entered into a sale and leaseback transaction to acquire the headquarters of Alstom Power (part of the French industrial group Alstom) in La Courneuve, Ile de France, immediately to the north of Paris for €24.5M, net of acquisition costs.
The 10.9ha property provides 53,000m² of office and light industrial accommodation which Alstom have leased back for a 9 year fixed term at an annual rent of €1.4M. Included in the sale is a 4.4ha prime industrial site with substantial frontage onto the A86 motorway (the second Paris ring road) - this represents a development opportunity for the provision of new light industrial accommodation.
The sale and leaseback element of the transaction reflects a net initial yield of 7.5% excluding the development site as at market value. Sphere: Related Content
Slough Estates International has entered into a sale and leaseback transaction to acquire the headquarters of Alstom Power (part of the French industrial group Alstom) in La Courneuve, Ile de France, immediately to the north of Paris for €24.5M, net of acquisition costs.
The 10.9ha property provides 53,000m² of office and light industrial accommodation which Alstom have leased back for a 9 year fixed term at an annual rent of €1.4M. Included in the sale is a 4.4ha prime industrial site with substantial frontage onto the A86 motorway (the second Paris ring road) - this represents a development opportunity for the provision of new light industrial accommodation.
The sale and leaseback element of the transaction reflects a net initial yield of 7.5% excluding the development site as at market value. Sphere: Related Content
Dresdner Bank Agrees to $2.4 Billion Sale Leaseback of Property Portfolio
Eurocastle Web Site - December 22, 2005
Eurocastle Investment Limited (Euronext Amsterdam: ECT),which is managed by Fortress Investment Group LLC, today announced that it has signed a definitive agreement with Dresdner Bank AG to acquire 100% of an open-end fund which owns a portfolio of 303 commercial properties for approximately €2 billion. The properties consist primarily of office buildings and are largely occupied by Dresdner. The bank will continue to occupy their current space which represents approximately 80% of rental income on the portfolio. Dresdner’s average remaining lease term is 9 years, while the average
remaining lease term of the entire portfolio is approximately 8 years. Approximately 15% of the portfolio is currently vacant.
The properties, totaling approximately 9 million square feet (845,516 square meters) of leasable space, are located throughout Germany, with concentrations in Frankfurt, Hamburg, Munich, Düsseldorf and Berlin. The assets are generally in major metropolitan areas and Eurocastle believes that the properties are among the best-located and highest quality assets in their respective markets. The purchase reflects an unleveraged initial yield of approximately 5%.
(Seperate media sources reported that Australia's Babcock and Brown and investment bank Morgan Stanley with its German partner DIC were also shortlisted in the bidding for the 300 property portfolio.) Sphere: Related Content
Eurocastle Investment Limited (Euronext Amsterdam: ECT),which is managed by Fortress Investment Group LLC, today announced that it has signed a definitive agreement with Dresdner Bank AG to acquire 100% of an open-end fund which owns a portfolio of 303 commercial properties for approximately €2 billion. The properties consist primarily of office buildings and are largely occupied by Dresdner. The bank will continue to occupy their current space which represents approximately 80% of rental income on the portfolio. Dresdner’s average remaining lease term is 9 years, while the average
remaining lease term of the entire portfolio is approximately 8 years. Approximately 15% of the portfolio is currently vacant.
The properties, totaling approximately 9 million square feet (845,516 square meters) of leasable space, are located throughout Germany, with concentrations in Frankfurt, Hamburg, Munich, Düsseldorf and Berlin. The assets are generally in major metropolitan areas and Eurocastle believes that the properties are among the best-located and highest quality assets in their respective markets. The purchase reflects an unleveraged initial yield of approximately 5%.
(Seperate media sources reported that Australia's Babcock and Brown and investment bank Morgan Stanley with its German partner DIC were also shortlisted in the bidding for the 300 property portfolio.) Sphere: Related Content
Israeli Government Housing Administration Planning Sale Leaseback Deals
Globes Online - December 18, 2005
The Government Housing Administration plans to exercise its option to buy the Beersheva government complex from Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) for $60 million, and assume ownership of the property in November 2007.
The deal involves 28,000 sq.m. in four buildings: 22,000 sq.m. leases to the state at $11 per sq.m. per month, and 6,000 sq.m. in commercial space. Ashtrom Properties Ltd. (TASE:ASPR) and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE:HUCN) subsidiary Secom (Israel) Ltd. built the Beersheva government complex in the late 1990s. Migdal bought the office buildings from Ashtrom in 2003 for $43 million. Ashtrom and Secom still own the commercial space.
The state intends to exploit the difference between interest rates and returns to buy the government complex at a return of 9%, and sell it immediately afterwards, thereby making an additional profit. Under the terms of the contract between the state and Migdal, the state has the right to exercise the option only in November 2007.
The Government Housing Administration is now publishing tenders to sell the four buildings. If it receives no worthwhile offers, it will forego the option, and continue to rent the properties from Migdal. If a new buyer is found, the government will rent the properties in a 20-year lease with a three-year option.
The Government Housing Administration is planning similar deals for the government complexes in Haifa, Ramle and Tel Aviv. The states rents the Tel Aviv government complex from Half Jubilee Ltd., a subsidiary of Africa-Israel Investments Ltd. Sphere: Related Content
The Government Housing Administration plans to exercise its option to buy the Beersheva government complex from Migdal Insurance and Financial Holdings Ltd. (TASE:MGDL) for $60 million, and assume ownership of the property in November 2007.
The deal involves 28,000 sq.m. in four buildings: 22,000 sq.m. leases to the state at $11 per sq.m. per month, and 6,000 sq.m. in commercial space. Ashtrom Properties Ltd. (TASE:ASPR) and Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE:HUCN) subsidiary Secom (Israel) Ltd. built the Beersheva government complex in the late 1990s. Migdal bought the office buildings from Ashtrom in 2003 for $43 million. Ashtrom and Secom still own the commercial space.
The state intends to exploit the difference between interest rates and returns to buy the government complex at a return of 9%, and sell it immediately afterwards, thereby making an additional profit. Under the terms of the contract between the state and Migdal, the state has the right to exercise the option only in November 2007.
The Government Housing Administration is now publishing tenders to sell the four buildings. If it receives no worthwhile offers, it will forego the option, and continue to rent the properties from Migdal. If a new buyer is found, the government will rent the properties in a 20-year lease with a three-year option.
The Government Housing Administration is planning similar deals for the government complexes in Haifa, Ramle and Tel Aviv. The states rents the Tel Aviv government complex from Half Jubilee Ltd., a subsidiary of Africa-Israel Investments Ltd. Sphere: Related Content
Monday, December 19, 2005
Fitch Rates Securitization of $767 Million in Single Tenant Loans
Business Wire - December 15, 2005
Fitch Ratings has rated GE Business Loan Trust 2005-2, a securitization of 341 business loans made to 301 borrowers. The loans were originated by GE Commercial Finance Business Property Corporation (GECF) and the Small Business Finance (SBF) lending division of General Electric Capital Corporation (GECC).
The $767 million underlying collateral pool consists of approximately $500 million (65.2%) of conventional business loans originated by GECF and approximately $267 million (34.8%) of SBA 504 loans originated by SBF. The loans are secured by first liens on owner-occupied or single tenant retail, office, industrial, or other commercial real estate. The pool is diversified geographically, with loans from 41 states.
This transaction represents the sixth term securitization of loans originated by the GECF and SBF business units. Sphere: Related Content
Fitch Ratings has rated GE Business Loan Trust 2005-2, a securitization of 341 business loans made to 301 borrowers. The loans were originated by GE Commercial Finance Business Property Corporation (GECF) and the Small Business Finance (SBF) lending division of General Electric Capital Corporation (GECC).
The $767 million underlying collateral pool consists of approximately $500 million (65.2%) of conventional business loans originated by GECF and approximately $267 million (34.8%) of SBA 504 loans originated by SBF. The loans are secured by first liens on owner-occupied or single tenant retail, office, industrial, or other commercial real estate. The pool is diversified geographically, with loans from 41 states.
This transaction represents the sixth term securitization of loans originated by the GECF and SBF business units. Sphere: Related Content
Sunday, December 18, 2005
CVS Completes $386 Million Sale Leaseback of 110 Drug Stores
Moody's Investor Service - December 15, 2005
Based on information received through December 14, Moody's Investors Service assigns a provisional (P) A3 rating to approximately $386.1 million of Certificates to be issued by a trust that will acquire 110 first-priority lien commercial mortgage, credit-tenant lease loans. The loans will be secured by newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS Corporation. Each of the leases will be bondable and guaranteed by CVS Corporation, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2028. Fixed net rent under the leases, plus a pre-funded interest reserve, will be sufficient to pay in full all interest and principal of the loans. The 110 drugstores are located in 26 states.
Moody's determined that, among other factors, the dark value of the collateral is sufficient, assuming a bankruptcy of CVS and rejection of the leases, to support the expected loss consistent with the Certificates' rating. The rating
of the Certificates is primarily based on the senior unsecured debt rating of CVS Corporation, which is currently A3, stable outlook; therefore, the Certificates' rating will change as the senior unsecured debt rating of CVS Corporation may change. The rating of the Certificates was also based on the overall structure and legal integrity of the transaction. Sphere: Related Content
Based on information received through December 14, Moody's Investors Service assigns a provisional (P) A3 rating to approximately $386.1 million of Certificates to be issued by a trust that will acquire 110 first-priority lien commercial mortgage, credit-tenant lease loans. The loans will be secured by newly constructed drug stores and related realty that will be triple-net leased to subsidiaries of CVS Corporation. Each of the leases will be bondable and guaranteed by CVS Corporation, and bankruptcy-remote, special purpose borrowers will own each of the fee or ground-leased properties. The loans mature in January 2028. Fixed net rent under the leases, plus a pre-funded interest reserve, will be sufficient to pay in full all interest and principal of the loans. The 110 drugstores are located in 26 states.
Moody's determined that, among other factors, the dark value of the collateral is sufficient, assuming a bankruptcy of CVS and rejection of the leases, to support the expected loss consistent with the Certificates' rating. The rating
of the Certificates is primarily based on the senior unsecured debt rating of CVS Corporation, which is currently A3, stable outlook; therefore, the Certificates' rating will change as the senior unsecured debt rating of CVS Corporation may change. The rating of the Certificates was also based on the overall structure and legal integrity of the transaction. Sphere: Related Content
Friday, December 16, 2005
Boulder Net Lease Funds Publishes 4th Quarter Net Lease Market Research Report
Boulder Net Lease Funds Web Site - December 06, 2005
Boulder Net Lease Funds, LLC has released a new research report providing comprehensive numbers and analysis of the 4th Quarter activity in the Net Lease Market. As of mid November 2005, Boulder Net Lease Funds is currently tracking 7,348 available net lease properties nationwide which have a combined value in excess of $24.6 Billion. The report covers the office, industrial and retail sectors of the Net Leased Market and breaks down the Net Lease Market by Sector, State, CAP Rate, Pricing and Price Per Foot. Sphere: Related Content
Boulder Net Lease Funds, LLC has released a new research report providing comprehensive numbers and analysis of the 4th Quarter activity in the Net Lease Market. As of mid November 2005, Boulder Net Lease Funds is currently tracking 7,348 available net lease properties nationwide which have a combined value in excess of $24.6 Billion. The report covers the office, industrial and retail sectors of the Net Leased Market and breaks down the Net Lease Market by Sector, State, CAP Rate, Pricing and Price Per Foot. Sphere: Related Content
British Govt. Seeking $346 Million Sale Leasebback of Northern Ireland Property Portfolio
Offshore Outsourcing World Blog / Outsource 360 - December 9, 2005
The British government has launched the phased sale of its run-down 3.8-million-sf estate in Northern Ireland. Northern Ireland Civil Service has published an invitation for expressions of interest in the euro 2.2-billion ($2.6-billion) outsourcing contract in the Official Journal of the European Union.
The single contract will involve the private sector buying and leasing back operational property, disposing of redundant buildings, refurbishing retained property and managing the facilities on those properties leased back to the government. Effectively, the government is outsourcing estate, building and facilities management to the private sector. The advertisement states that the Department of Finance and Personnel will brief interested parties in Belfast on Dec. 8. They will then have until January 23 to submit preliminary proposals. Officials will then select three or four prospective partners to draw up more detailed proposals. The aim is to award the contract by the end of next year.
UK-based Land Securities Trillium and Mapeley are expected to prepare joint bids with Irish investors and developers. The portfolio comprises 56 freeholds totalling 2.2 million sf and valued at euro 295 million ($346 million). Lease liabilities on 24 properties totalling 830,000 sf will also be transferred. A further 122 buildings could be transferred in phase two. The properties include 28 core offices in Belfast and the regions; 35 Jobs and Benefits Offices; and 17 Belfast offices that the civil service wants to vacate. But the estate needs extensive refurbishment and will cost the partner an estimated euro 155 million ($133 million) in annual running costs. The successful bidder will also be required to develop a new 50,000-sf office on the Stormont Estate as well as take responsibility for the facilities management of the entire 3.8 million sf estate. Sphere: Related Content
The British government has launched the phased sale of its run-down 3.8-million-sf estate in Northern Ireland. Northern Ireland Civil Service has published an invitation for expressions of interest in the euro 2.2-billion ($2.6-billion) outsourcing contract in the Official Journal of the European Union.
The single contract will involve the private sector buying and leasing back operational property, disposing of redundant buildings, refurbishing retained property and managing the facilities on those properties leased back to the government. Effectively, the government is outsourcing estate, building and facilities management to the private sector. The advertisement states that the Department of Finance and Personnel will brief interested parties in Belfast on Dec. 8. They will then have until January 23 to submit preliminary proposals. Officials will then select three or four prospective partners to draw up more detailed proposals. The aim is to award the contract by the end of next year.
UK-based Land Securities Trillium and Mapeley are expected to prepare joint bids with Irish investors and developers. The portfolio comprises 56 freeholds totalling 2.2 million sf and valued at euro 295 million ($346 million). Lease liabilities on 24 properties totalling 830,000 sf will also be transferred. A further 122 buildings could be transferred in phase two. The properties include 28 core offices in Belfast and the regions; 35 Jobs and Benefits Offices; and 17 Belfast offices that the civil service wants to vacate. But the estate needs extensive refurbishment and will cost the partner an estimated euro 155 million ($133 million) in annual running costs. The successful bidder will also be required to develop a new 50,000-sf office on the Stormont Estate as well as take responsibility for the facilities management of the entire 3.8 million sf estate. Sphere: Related Content
RadioShack Enters $220 Sale Leaseback of HQ
SEC Edgar Database - December 16, 2005
RadioShack Corporation has entered into a purchase and sale agreement with Kan Am Grund Kapitalanlagegesellschaft mbH to sell and lease back its corporate headquarters in Fort Worth, Texas. RadioShack currently expects that its net proceeds, after transaction and other related costs, will be approximately $220 million. RadioShack currently expects that the purchase and sale agreement will close on or about December 21, 2005.
RadioShack will enter into a 20-year triple-net lease agreement with the Purchaser. RadioShack has four five-year options to renew the lease agreement. Base annual rent for the primary term of the lease will initially be approximately $14.1 million and will increase by 1.25% per year. RadioShack will be required to post a $5 million letter of credit at the closing of the lease and to maintain the letter of credit during the term of the lease. RadioShack will be required pay all of the costs associated with the operation of the facilities, including costs such as insurance, taxes and maintenance.
Sphere: Related Content
RadioShack Corporation has entered into a purchase and sale agreement with Kan Am Grund Kapitalanlagegesellschaft mbH to sell and lease back its corporate headquarters in Fort Worth, Texas. RadioShack currently expects that its net proceeds, after transaction and other related costs, will be approximately $220 million. RadioShack currently expects that the purchase and sale agreement will close on or about December 21, 2005.
RadioShack will enter into a 20-year triple-net lease agreement with the Purchaser. RadioShack has four five-year options to renew the lease agreement. Base annual rent for the primary term of the lease will initially be approximately $14.1 million and will increase by 1.25% per year. RadioShack will be required to post a $5 million letter of credit at the closing of the lease and to maintain the letter of credit during the term of the lease. RadioShack will be required pay all of the costs associated with the operation of the facilities, including costs such as insurance, taxes and maintenance.
Sphere: Related Content
IBM Completes Sale Leaseback of £120 Million UK Office Portfolio
Propertymall.com - December 7, 2005
The Highcross Fund has completed the purchase of IBM's sale and leaseback portfolio marketed earlier this year with offers being sought in excess of £120 million. The portfolio comprises three purpose-built business parks in Portsmouth, Warwick and Greenock and a two-storey data centre in Greenford. The sites total approximately 1,645,490 sq ft (152,866 sq m). IBM has taken the space for fifteen years, with break clauses in the tenth year and options to extend. Atisreal acted for IBM and Morgan & Co advised The Highcross Fund. Sphere: Related Content
The Highcross Fund has completed the purchase of IBM's sale and leaseback portfolio marketed earlier this year with offers being sought in excess of £120 million. The portfolio comprises three purpose-built business parks in Portsmouth, Warwick and Greenock and a two-storey data centre in Greenford. The sites total approximately 1,645,490 sq ft (152,866 sq m). IBM has taken the space for fifteen years, with break clauses in the tenth year and options to extend. Atisreal acted for IBM and Morgan & Co advised The Highcross Fund. Sphere: Related Content
Financial Services Authority HQ in London Sold for £191 Million
Freeman News / AFX - December 06, 2005
Songbird Estates plc's main operating unit, Canary Wharf Group plc, is selling long leasehold interests in 25 North Colonnade to Evans Randall, a privately held investment bank, for £191m. The selling price provides a net yield of 5.2%. The property is let to the Financial Services Authority until 2018 and current rent passing is £9.99m per annum. Canary Wharf is providing rental support of £0.46m until November 2006 and then £0.26m until November 2007, when the rental support will end. The property has been valued at £180m as at end June, the company statement added." Sphere: Related Content
Songbird Estates plc's main operating unit, Canary Wharf Group plc, is selling long leasehold interests in 25 North Colonnade to Evans Randall, a privately held investment bank, for £191m. The selling price provides a net yield of 5.2%. The property is let to the Financial Services Authority until 2018 and current rent passing is £9.99m per annum. Canary Wharf is providing rental support of £0.46m until November 2006 and then £0.26m until November 2007, when the rental support will end. The property has been valued at £180m as at end June, the company statement added." Sphere: Related Content
State Street Bank to Lease New UK HQ at Canary Wharf
The Wharf - December 15, 2005
State Street Bank has agreed to heads of terms with Canary Wharf Group (CWG) on a new 300,000 sq ft headquarters to be built at Churchill Place. Construction is to begin on the 12-storey building opposite Barclays HQ, in the new year. The Wharf has previously reported on speculation that the firm, which occupies eight floors in the tower, would be moving. Neither State Street nor CWG would comment on the possible move, but a source close to the deal told The Wharf: "They're taking the building." State Street moved into One Canada Square in August 1991 and has seen staff numbers growing from around 100 to nearly 1,000 in the past 14 years. Sphere: Related Content
State Street Bank has agreed to heads of terms with Canary Wharf Group (CWG) on a new 300,000 sq ft headquarters to be built at Churchill Place. Construction is to begin on the 12-storey building opposite Barclays HQ, in the new year. The Wharf has previously reported on speculation that the firm, which occupies eight floors in the tower, would be moving. Neither State Street nor CWG would comment on the possible move, but a source close to the deal told The Wharf: "They're taking the building." State Street moved into One Canada Square in August 1991 and has seen staff numbers growing from around 100 to nearly 1,000 in the past 14 years. Sphere: Related Content
Lietuvos Telekomas' Group Agrees to Sale Leaseback of Lithuanian Property Portfolio
Lietuvos Telekomas Web Site - December 8, 2005
On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.
According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.
AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content
On 8 December 2005 Lietuvos Telekomas' Group companies (AB Lietuvos Telekomas and UAB Lintel) and Invalda Real Estate fund signed the agreements, under which Invalda Real Estate fund acquired eight buildings of Lietuvos Telekomas' Group located in Vilnius for 70.2 million litas (VAT exclusive - $24 million). Lietuvos Telekomas' Group will take a lease of necessary premises in seven buildings from Invalda Real Estate fund.
According to the agreement, the ownership right to 5 buildings will be transferred from Lietuvos Telekomas' Group to Invalda Real Estate fund on 30 December 2005, and that of the remaining ones on 30 June 2006. Total area of the eight buildings is about 40 thousand square meters. This is one of the biggest transactions on the real estate market of the city of Vilnius.
AB Lietuvos Telekomas is the company, having the largest experience in the telecommunications business in Lithuania and the leading provider of the Internet, public fixed telephone communication, networks, leased lines and network interconnection services in the country. The company is indirectly owned by TeliaSonera, one of the largest telecommunications corporations in the Nordic and Baltic countries, which holds 60 per cent of the shares of the company through its subsidiary Amber Teleholding A/S. Sphere: Related Content
Deutsche Telekom Completes $33 Million Sale Leaseback of Three Office Buildings in Frankfurt
Globes Online - December 11,2005
A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.
Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content
A subsidiary of Direct Capital Investments Ltd. (TASE:DCI) and partners last week bought three office buildings in Frankfurt from Deutsche Telekom (NYSE: DT; XETRA: DTEG) in a sale leaseback deal for NIS 155 million ($33.9 million). Deutsche Telekom will lease back the properties in a ten-year lease, with three five-year options. The return on the deal is 8% a year.
Direct Capital will finance 90% of the purchase, excluding expenses, with a loan from Lehman Brothers (NYSE:LEH). Under the terms of the loan, Direct Capital will borrow Euro 24 million for five years at 4.35% interest a year. The interest will be repaid in quarterly installments. Direct Capital will also repay 2% of the principle a year in quarterly installments. This is Direct Capital's first deal in Western Europe. Sphere: Related Content
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