Cushman & Wakefield Web Site - May 21, 2008
Drago Real Estate Partners has today announced the signing of an agreement with Prisa to purchase a portfolio of office blocks comprising 3 buildings, two of these located in Madrid and one in Barcelona, belonging to the communications group. The operation will take the form of sale & leaseback and the amount agreed is 315 million Euros.
In late 2007, the Grupo Prisa announced the running of a competition to sell this property portfolio, comprising two buildings in Madrid: one located at Gran Vía 32 (the head office of the Grupo Prisa) and the other on Calle Miguel Yuste (the head office of the daily newspaper El País and other publications) and one building in Barcelona, located at Calle Caspe, 6 – 20 (the head office of Radio Barcelona). The portfolio includes a total of 71,873 m2 and 344 parking spaces, as well as various commercial premises in the building on Gran Vía, with prestigious tenants such as Zara, Mango, H&M and Sfera.
The purchase is to take place through a consortium led by Drago Real Estate Partners. The financing has been provided to Drago by the Banco Santander and the Bayerische Landesbank. The organisation Gómez-Acebo & Pombo has advised Drago Real Estate Partners, Uría y Menéndez has advised Prisa and Clifford Chance has advised the Banco Santander and the Bayerische Landesbank. CB Richard Ellis has advised Prisa in the sales process and Cushman & Wakefield has advised the buyer.
Drago Real Estate Partners is a property investment company which is managed by Mare Nostrum Capital Managers.
Sphere: Related Content
Friday, May 23, 2008
Saturday, May 17, 2008
JC Penney Warehouse Near LA Trades for $36.1 Million
Cityfeet.com / GlobeSt.com - May 15, 2008
A 440,538-sf single-tenant distribution center here has changed hands for $36.1 million, according to industry sources. An undisclosed client of UBS Global Real Estate acquired the 10-year-old development from FR/CAL Beta Northwest, LLC, a joint venture between First Industrial and CalSTRS.
Located near Interstate 5 within Crossroads Commerce Center, the warehouse was built in 1998 and substantially renovated for JC Penney in 2007. The building, 700 D’Arcy Parkway, has 32-foot clear heights and approximately 9,000 sf built out for office use. The 28-acre property includes eight acres of yard area for trailer parking.
JC Penney is currently paying a net rent on the warehouse of $4.23 per sf per year and another $1.19 per sf per year for the trailer parking lot, according to an industry source. The non-cancelable lease runs through 2023 and includes 6% compounding escalations every three years. JC Penney also is paying a 2% annual management fee.
The current net income from the property is $2.27 million. Given the $36.1-million purchase price, the initial cap rate on the transaction is approximately 6.3%.
“We started marketing the property in the September-October timeframe, right after the market had changed, when there was still a tremendous amount of uncertainty,” listing broker Andrew Sandquist of CB Richard Ellis tells GlobeSt.com. “But this is an institutional quality asset in an institutional market that is net leased long term, and investors are still looking for high-quality product and are willing to pay for it. We’re very pleased with the result.”
Sandquist heads up CBRE’s national sale-leaseback group from his office in Chicago. Joining him on the listing were Robert Brennan and Jonathan Wolfe, also from Chicago, and Dave Haggerty of CBRE’s Stockton, CA office, in the disposition of 700 D’Arcy Parkway, Lathrop, CA. Sphere: Related Content
A 440,538-sf single-tenant distribution center here has changed hands for $36.1 million, according to industry sources. An undisclosed client of UBS Global Real Estate acquired the 10-year-old development from FR/CAL Beta Northwest, LLC, a joint venture between First Industrial and CalSTRS.
Located near Interstate 5 within Crossroads Commerce Center, the warehouse was built in 1998 and substantially renovated for JC Penney in 2007. The building, 700 D’Arcy Parkway, has 32-foot clear heights and approximately 9,000 sf built out for office use. The 28-acre property includes eight acres of yard area for trailer parking.
JC Penney is currently paying a net rent on the warehouse of $4.23 per sf per year and another $1.19 per sf per year for the trailer parking lot, according to an industry source. The non-cancelable lease runs through 2023 and includes 6% compounding escalations every three years. JC Penney also is paying a 2% annual management fee.
The current net income from the property is $2.27 million. Given the $36.1-million purchase price, the initial cap rate on the transaction is approximately 6.3%.
“We started marketing the property in the September-October timeframe, right after the market had changed, when there was still a tremendous amount of uncertainty,” listing broker Andrew Sandquist of CB Richard Ellis tells GlobeSt.com. “But this is an institutional quality asset in an institutional market that is net leased long term, and investors are still looking for high-quality product and are willing to pay for it. We’re very pleased with the result.”
Sandquist heads up CBRE’s national sale-leaseback group from his office in Chicago. Joining him on the listing were Robert Brennan and Jonathan Wolfe, also from Chicago, and Dave Haggerty of CBRE’s Stockton, CA office, in the disposition of 700 D’Arcy Parkway, Lathrop, CA. Sphere: Related Content
Friday, May 16, 2008
Vedici Group Enters EUR 73 Million Sale Leaseback of Two Health Care Facilities in France
PropertyEU - May 14, 2008
French property developer Icade has acquired two healthcare assets in Nantes for EUR 73 million from nursing home operator Vedici. The company bought the Polyclinique de l'Atlantique in Saint Herblain, France's leading maternity clinic with total capacity of 269 beds, and the Centre de Soins de Suite de Roz Arvor in Nantes with a capacity of 80 beds. The Vedici Group is leasing back the properties under a 12-year lease. Icade has a development portfolio of public and healthcare assets of about 205,000 m2. Other 158,000 m2 of space have already been brought to the market.
The French builder, which is chaired by Serge Grzybowski, added that it has been hired by Crédit Lyonnais’ bank LCL to construct its headquarters in Villejuif. LCL will rent back the Metropolitan office complex, which consists of 60,000 m2 of space across four buildings. The first asset is scheduled to be delivered in early 2009, while completion for the three others is expected for 2012.
In the beginning of May, Icade and its business partner ING Real Estate signed contracts with IVG to develop three buildings within the new Claude Bernard business park in the 19th arrondissement of Paris. The contracts are for the construction of 40,000 m2 of office space across three properties. Construction work is scheduled to begin in the first quarter of 2009, with completion in 2011. The company posted turnover of EUR 1.5bn in 2007. Sphere: Related Content
French property developer Icade has acquired two healthcare assets in Nantes for EUR 73 million from nursing home operator Vedici. The company bought the Polyclinique de l'Atlantique in Saint Herblain, France's leading maternity clinic with total capacity of 269 beds, and the Centre de Soins de Suite de Roz Arvor in Nantes with a capacity of 80 beds. The Vedici Group is leasing back the properties under a 12-year lease. Icade has a development portfolio of public and healthcare assets of about 205,000 m2. Other 158,000 m2 of space have already been brought to the market.
The French builder, which is chaired by Serge Grzybowski, added that it has been hired by Crédit Lyonnais’ bank LCL to construct its headquarters in Villejuif. LCL will rent back the Metropolitan office complex, which consists of 60,000 m2 of space across four buildings. The first asset is scheduled to be delivered in early 2009, while completion for the three others is expected for 2012.
In the beginning of May, Icade and its business partner ING Real Estate signed contracts with IVG to develop three buildings within the new Claude Bernard business park in the 19th arrondissement of Paris. The contracts are for the construction of 40,000 m2 of office space across three properties. Construction work is scheduled to begin in the first quarter of 2009, with completion in 2011. The company posted turnover of EUR 1.5bn in 2007. Sphere: Related Content
Sunday, May 11, 2008
AT&T Completes $275.2 Million Sale Leaseback of Atlanta Office Campus
Commercial Property News - May 9, 2008
Wells REIT II has acquired a five-building, 1 million-square-foot office campus in the Buckhead submarket of Atlanta, through a long-term sale-leaseback with AT&T. The campus will headquarter AT&T Wireless' operations in the city. The transaction's terms were not disclosed.
The property is located in the Lenox Park office park (pictured) on Lenox Park Boulevard, between Peachtree Road and Interstate 85. AT&T Services Inc. and its subsidiaries will occupy all five of the buildings under new leases running from 10 to 15 years. The buildings were constructed between 1992 and 2002 and range from four to 12 floors.
Jay Koster, senior managing director of Staubach Capital Markets, represented AT&T in the deal. Sphere: Related Content
Wells REIT II has acquired a five-building, 1 million-square-foot office campus in the Buckhead submarket of Atlanta, through a long-term sale-leaseback with AT&T. The campus will headquarter AT&T Wireless' operations in the city. The transaction's terms were not disclosed.
The property is located in the Lenox Park office park (pictured) on Lenox Park Boulevard, between Peachtree Road and Interstate 85. AT&T Services Inc. and its subsidiaries will occupy all five of the buildings under new leases running from 10 to 15 years. The buildings were constructed between 1992 and 2002 and range from four to 12 floors.
Jay Koster, senior managing director of Staubach Capital Markets, represented AT&T in the deal. Sphere: Related Content
Friday, May 09, 2008
Indian Overseas Bank Seeking Sale Leaseback of Bank Portfolio
Business Standard - May 7, 2008
High property prices have opened up new avenues for state-run banks to shore up their precious tier-I capital.
Chennai-based Indian Overseas Bank is planning to sell its properties to self-promoted special purpose vehicle, thus realising the entire profit and then ploughing it back to its Tier-I capital. IOB will do a leaseback deal of properties that it had sold to the SPV.
According to the bank's estimates, the prices of its property has appreciated nearly 200 per cent over the last couple of years.
IOB has sought the approval of the finance ministry for implementing the idea, according to a top bank executive. If approved by the ministry, the government-owned bank's profit will soar by Rs 6 billion ($140 million) and the amount will be ploughed back to its Tier-I capital.
Banks are allowed to use 40 per cent of the rise in assets valuation to accrue to their Tier-II capital. In the current case, however, the bank will show the transaction as a sale and not revaluation. Hence the entire value of the property is accruable to its Tier-I capital.
The move followed a substantial depletion in the bank's capital adequacy ratio in the previous financial year as it had to comply with Basel-II norms. The capital adequacy ratio of the bank was 11.13 per cent as on March 31 compared with 13.27 per cent in the same period a year ago. The Tier-I capital stood at 7.31 per cent.
Since the government owns 61.23 per cent in the bank, it can dilute its stake to 51 per cent to raise equity capital. However, the bank is not considering a stake dilution at this point of time, the executive said.
Indian laws allow the state-owned banks to dilute up to 49 per cent governmental stake to retail and institutional investors. Sphere: Related Content
High property prices have opened up new avenues for state-run banks to shore up their precious tier-I capital.
Chennai-based Indian Overseas Bank is planning to sell its properties to self-promoted special purpose vehicle, thus realising the entire profit and then ploughing it back to its Tier-I capital. IOB will do a leaseback deal of properties that it had sold to the SPV.
According to the bank's estimates, the prices of its property has appreciated nearly 200 per cent over the last couple of years.
IOB has sought the approval of the finance ministry for implementing the idea, according to a top bank executive. If approved by the ministry, the government-owned bank's profit will soar by Rs 6 billion ($140 million) and the amount will be ploughed back to its Tier-I capital.
Banks are allowed to use 40 per cent of the rise in assets valuation to accrue to their Tier-II capital. In the current case, however, the bank will show the transaction as a sale and not revaluation. Hence the entire value of the property is accruable to its Tier-I capital.
The move followed a substantial depletion in the bank's capital adequacy ratio in the previous financial year as it had to comply with Basel-II norms. The capital adequacy ratio of the bank was 11.13 per cent as on March 31 compared with 13.27 per cent in the same period a year ago. The Tier-I capital stood at 7.31 per cent.
Since the government owns 61.23 per cent in the bank, it can dilute its stake to 51 per cent to raise equity capital. However, the bank is not considering a stake dilution at this point of time, the executive said.
Indian laws allow the state-owned banks to dilute up to 49 per cent governmental stake to retail and institutional investors. Sphere: Related Content
Wednesday, May 07, 2008
Orpea Ponders Sale Leaseback on Part of EUR 1.2 Billion French Care Home Portfolio
PropertyEU - May 5, 2008
French nursing home group Orpea said it plans to outsource part of its real estate portfolio in the second half of 2008. The company said it is considering different options, including the sale-and-leaseback of some of its development assets to one or more investors, and the direct sale of a number of properties. A third option would be to transfer part of the portfolio to a new OPCI property investment fund in which Orpea would retain a minimum of 60%.
The company added that it has already been approached by a number of French and foreign investors regarding the assets, but would not disclose the name of the interested parties.
Orpea, which made the announcement during the presentation of its results for the 2007 year, said that its property portfolio has a market value of EUR 1.2bn, of which development assets make up for EUR 350mln. The portfolio comprises of 103 buildings, of which 41 are partially owned, located in or near large towns in France.
'This real estate strategy aims to maintain robust margins while controlling the impact of rents on operating performance, in order to pursue the group's value creation policy,' the company said in a statement.
Orpea expects to open 13 new facilities totalling about 1,200 beds in 2008. The company is currently renovating or developing nearly 7,000 beds which are expected to increase its activities by 50% over the next three years. Sphere: Related Content
French nursing home group Orpea said it plans to outsource part of its real estate portfolio in the second half of 2008. The company said it is considering different options, including the sale-and-leaseback of some of its development assets to one or more investors, and the direct sale of a number of properties. A third option would be to transfer part of the portfolio to a new OPCI property investment fund in which Orpea would retain a minimum of 60%.
The company added that it has already been approached by a number of French and foreign investors regarding the assets, but would not disclose the name of the interested parties.
Orpea, which made the announcement during the presentation of its results for the 2007 year, said that its property portfolio has a market value of EUR 1.2bn, of which development assets make up for EUR 350mln. The portfolio comprises of 103 buildings, of which 41 are partially owned, located in or near large towns in France.
'This real estate strategy aims to maintain robust margins while controlling the impact of rents on operating performance, in order to pursue the group's value creation policy,' the company said in a statement.
Orpea expects to open 13 new facilities totalling about 1,200 beds in 2008. The company is currently renovating or developing nearly 7,000 beds which are expected to increase its activities by 50% over the next three years. Sphere: Related Content
Saturday, May 03, 2008
Citibank Completes $100 Million Sale Leaseback of 47 Bank Branches in New York City
Property Week - May 2, 2008
Dublin-based Markland holdings, jointly owned by Irish property entrepreneurs Sean Mulryan and Paddy Kelly, has made a $100m (£51m) New York purchase.
The investment and development group has bought 47 Citibank properties, which comprise bank branches and offices, across New York and the wider state that will be leased back to the bank. The price reflects a yield of around 6%.
Citibank will lease back the buildings for 15 years but has the right to occupy the properties for the next 30 years.
Markland Holdings is owned by Mulryan, founder of Ballymore, and Kelly, a fellow entrepreneur. It is run by managing director Aidan Scully. Mulryan first invested with Kelly in the late 1980s in Markland House Properties, before making his fortune with Ballymore in the 1990s.
Last year Ballymore International began equity raising through Irish stockbroker and investment bank Davy to raise more than €1bn (£785m) for overseas development and investments.
New York’s investment market is suffering from a seizure in debt markets and a stand-off between buyers and sellers that has resulted in a dramatic drop in sales – from $28.3bn (£14.3bn) during the first quarter of 2007 to just $5.1bn (£2.6bn) in 2008, according to Cushman and wakefield.
Markland could be trying to take advantage of this buyers’ market where UK and European investors can take advantage of the favourable exchange rate.
Savills Granite acted for Markland. Sphere: Related Content
Dublin-based Markland holdings, jointly owned by Irish property entrepreneurs Sean Mulryan and Paddy Kelly, has made a $100m (£51m) New York purchase.
The investment and development group has bought 47 Citibank properties, which comprise bank branches and offices, across New York and the wider state that will be leased back to the bank. The price reflects a yield of around 6%.
Citibank will lease back the buildings for 15 years but has the right to occupy the properties for the next 30 years.
Markland Holdings is owned by Mulryan, founder of Ballymore, and Kelly, a fellow entrepreneur. It is run by managing director Aidan Scully. Mulryan first invested with Kelly in the late 1980s in Markland House Properties, before making his fortune with Ballymore in the 1990s.
Last year Ballymore International began equity raising through Irish stockbroker and investment bank Davy to raise more than €1bn (£785m) for overseas development and investments.
New York’s investment market is suffering from a seizure in debt markets and a stand-off between buyers and sellers that has resulted in a dramatic drop in sales – from $28.3bn (£14.3bn) during the first quarter of 2007 to just $5.1bn (£2.6bn) in 2008, according to Cushman and wakefield.
Markland could be trying to take advantage of this buyers’ market where UK and European investors can take advantage of the favourable exchange rate.
Savills Granite acted for Markland. Sphere: Related Content
Saturday, April 26, 2008
Empire Completes $428 Million Sale Leaseback of 61 Sobeys Grocery Stores Across Canada
Empire Company Web Site - April 22, 2008
Empire Company Limited (TSX: EMP.A) today announced that it and certain of its wholly-owned subsidiaries, including Sobey Leased Properties Limited (“SLP”), have closed the sale of 61 retail properties to Crombie Real Estate Investment Trust (“Crombie”). The properties represent approximately 3.3 million square feet of gross leasable area and consist of 40 freestanding grocery stores carrying various Sobeys banners and 21 strip plazas all of which are also anchored by Sobeys bannered grocery stores. The sale was previously announced by Empire on February 25, 2008.
The selling price in respect of the 61 properties was $428.5 million representing an effective capitalization rate of 8.12 percent before transaction costs. Empire received net cash proceeds on closing of approximately $271 million. The difference between the $428.5 million sale price and the net cash proceeds received on closing is related to funds used for the retirement of debt and for additional equity investment in Crombie, in addition to closing and transaction costs.
Empire has realized a pre-tax gain of approximately $165 million on closing of this transaction. The net cash proceeds from the transaction will be utilized by both Empire and its wholly-owned subsidiary, Sobeys Inc., to repay bank indebtedness. Immediately following this transaction, Empire indirectly has a 47.8 percent ownership interest in Crombie.
Empire is a Canadian company headquartered in Stellarton, Nova Scotia with approximately $13.8 billion in annual revenue and $5.9 billion in assets. Empire’s key businesses include food retailing and related real estate. Sphere: Related Content
Empire Company Limited (TSX: EMP.A) today announced that it and certain of its wholly-owned subsidiaries, including Sobey Leased Properties Limited (“SLP”), have closed the sale of 61 retail properties to Crombie Real Estate Investment Trust (“Crombie”). The properties represent approximately 3.3 million square feet of gross leasable area and consist of 40 freestanding grocery stores carrying various Sobeys banners and 21 strip plazas all of which are also anchored by Sobeys bannered grocery stores. The sale was previously announced by Empire on February 25, 2008.
The selling price in respect of the 61 properties was $428.5 million representing an effective capitalization rate of 8.12 percent before transaction costs. Empire received net cash proceeds on closing of approximately $271 million. The difference between the $428.5 million sale price and the net cash proceeds received on closing is related to funds used for the retirement of debt and for additional equity investment in Crombie, in addition to closing and transaction costs.
Empire has realized a pre-tax gain of approximately $165 million on closing of this transaction. The net cash proceeds from the transaction will be utilized by both Empire and its wholly-owned subsidiary, Sobeys Inc., to repay bank indebtedness. Immediately following this transaction, Empire indirectly has a 47.8 percent ownership interest in Crombie.
Empire is a Canadian company headquartered in Stellarton, Nova Scotia with approximately $13.8 billion in annual revenue and $5.9 billion in assets. Empire’s key businesses include food retailing and related real estate. Sphere: Related Content
Wednesday, April 23, 2008
Cramo Group Closes Sale Leaseback of Nine Properties in Finland
Aberdeen Property Fund - April 21, 2008
Cramo has signed an agreement on the sale of its real estate properties in Finland
Cramo Plc has signed an agreement on the sale of nine of its real estate properties in Finland to Aberdeen Property Fund Finland K Ky and one or several companies owned by Aberdeen Property Fund Finland I Ky, and on the simultaneous leaseback of the properties with an initial fixed term of 10 years.
The properties include the headquarters of Cramo Plc located at Kalliosolantie 2, Vantaa. the transaction is expected to be closed in the end of April 2008. The resulting capital gain is estimated at roughly EUR 3.9 million, to be booked in other operating income of the Cramo Group during Q2 2008.
"The sale of the real estate properties in Finland follows Cramo's strategy on focusing on its core businesses. The transaction will release capital for the Group's growth strategy in equipment rental and modular space, while at the same time release Cramo's balance sheet from non-core assets. Sphere: Related Content
Cramo has signed an agreement on the sale of its real estate properties in Finland
Cramo Plc has signed an agreement on the sale of nine of its real estate properties in Finland to Aberdeen Property Fund Finland K Ky and one or several companies owned by Aberdeen Property Fund Finland I Ky, and on the simultaneous leaseback of the properties with an initial fixed term of 10 years.
The properties include the headquarters of Cramo Plc located at Kalliosolantie 2, Vantaa. the transaction is expected to be closed in the end of April 2008. The resulting capital gain is estimated at roughly EUR 3.9 million, to be booked in other operating income of the Cramo Group during Q2 2008.
"The sale of the real estate properties in Finland follows Cramo's strategy on focusing on its core businesses. The transaction will release capital for the Group's growth strategy in equipment rental and modular space, while at the same time release Cramo's balance sheet from non-core assets. Sphere: Related Content
Thursday, April 17, 2008
Tesco Enters $407 Million Sale Leaseback of Six UK Supermarkets
Property Week - April 15, 2008
Tesco, in its results for the year to 23 February 2008, revealed it had completed a £207m sale and leaseback deal with PruPIM at a 4.8% yield. (Tesco reportedly agreed to lease back the properties for 20 years with annual rent reviews linked to the Retail Prices Index and capped at 3.5 percent per annum.)
The deal is the third since Tesco revealed a new £5bn property plan last year which took the total earmarked for property sale and leasebacks and joint ventures to close to £9bn. It completed two transactions in 2007 which raised £1.2bn for the supermarket giant.
The first of these deals, with the British Airways Pension Fund, was a £445m deal completed at the end of the 2006/7 financial year. The second, a £650m deal with British Land, completed in March 2007.
Tesco said in a statement: ‘Whilst yields have increased modestly in recent months, appetite for Tesco's property and covenant remains strong, and if market conditions remain conducive, we expect to be able to complete further transactions on attractive terms in the months ahead. It added: ‘We are currently in discussion with potential counterparties.’
The proceeds from the property deals will be used to fund expansion and its share buy-back programme - which has so far re-purchased Tesco shares worth over £1.1bn.
The net book value of Tesco’s fixed assets is £19.8bn, up from around £17bn estimated last year. Most of this value is in its freehold store portfolio. It estimates the current market value to be £31bn, representing a 57% premium to book value. Sphere: Related Content
Tesco, in its results for the year to 23 February 2008, revealed it had completed a £207m sale and leaseback deal with PruPIM at a 4.8% yield. (Tesco reportedly agreed to lease back the properties for 20 years with annual rent reviews linked to the Retail Prices Index and capped at 3.5 percent per annum.)
The deal is the third since Tesco revealed a new £5bn property plan last year which took the total earmarked for property sale and leasebacks and joint ventures to close to £9bn. It completed two transactions in 2007 which raised £1.2bn for the supermarket giant.
The first of these deals, with the British Airways Pension Fund, was a £445m deal completed at the end of the 2006/7 financial year. The second, a £650m deal with British Land, completed in March 2007.
Tesco said in a statement: ‘Whilst yields have increased modestly in recent months, appetite for Tesco's property and covenant remains strong, and if market conditions remain conducive, we expect to be able to complete further transactions on attractive terms in the months ahead. It added: ‘We are currently in discussion with potential counterparties.’
The proceeds from the property deals will be used to fund expansion and its share buy-back programme - which has so far re-purchased Tesco shares worth over £1.1bn.
The net book value of Tesco’s fixed assets is £19.8bn, up from around £17bn estimated last year. Most of this value is in its freehold store portfolio. It estimates the current market value to be £31bn, representing a 57% premium to book value. Sphere: Related Content
Friday, April 11, 2008
Australian Defence Housing Authority Defers Sale Leaseback Program
The Australian - April 10, 2008
The Defence Housing Authority plans to sell $200-300 million worth of housing to pension funds and institutional investors in the next six months. DHA managing director Michael Del Gigante said: "We are holding off because of the current credit crunch and the decline in the listed property sector. "We are watching the market and getting ready to hold another tender, probably in the next six months," he said. Mr Del Gigante expects liquidity to improve in time, allowing for DHA to go back to the market to raise capital.
The Authority made its first sale to an institution in 2006, when Westpac won the tender to buy 441 houses in two tranches for a total of $220 million, which seeded Westpac's first unlisted residential trust.
Some institutions were looking for up to a billion dollars worth of assets to set up residential funds, but Mr Del Gigante said DHA would not have enough stock in its inventory to meet their requirement. The authority produces 1500 new houses a year for sale and lease-back.
"In order to meet DHA's growing capital program, I expect the volume of sale and lease-back to grow to between $400 and $500 million a year in the next three to five years." Mr Del Gigante said DHA, set up two decades ago to develop and provide housing to defence personnel, had been raising between $300 and $400 million a year from the program.
However, sales dropped to $270-300 million this financial year because of the weakness in the market, so the DHA held off making a bulk sale. Between 60 and 70 per cent of its capital program is channelled into refurbishment and maintenance of its pool of 17,000 houses across Australia, which are worth about $6 billion.
DHA leases back properties for up to 15 years. The standard lease terms are nine or 12 years, with an option for a three-year extension. At the end of 15 years, the houses are usually redeveloped. Investors are able to resell the houses while they are still leased to DHA, but the lease has to be attached to the sale. Independent valuers set market-based rents for the properties. Currently, the rents range from $370 to under $700 a week, depending on the location and the state or territory. Sphere: Related Content
The Defence Housing Authority plans to sell $200-300 million worth of housing to pension funds and institutional investors in the next six months. DHA managing director Michael Del Gigante said: "We are holding off because of the current credit crunch and the decline in the listed property sector. "We are watching the market and getting ready to hold another tender, probably in the next six months," he said. Mr Del Gigante expects liquidity to improve in time, allowing for DHA to go back to the market to raise capital.
The Authority made its first sale to an institution in 2006, when Westpac won the tender to buy 441 houses in two tranches for a total of $220 million, which seeded Westpac's first unlisted residential trust.
Some institutions were looking for up to a billion dollars worth of assets to set up residential funds, but Mr Del Gigante said DHA would not have enough stock in its inventory to meet their requirement. The authority produces 1500 new houses a year for sale and lease-back.
"In order to meet DHA's growing capital program, I expect the volume of sale and lease-back to grow to between $400 and $500 million a year in the next three to five years." Mr Del Gigante said DHA, set up two decades ago to develop and provide housing to defence personnel, had been raising between $300 and $400 million a year from the program.
However, sales dropped to $270-300 million this financial year because of the weakness in the market, so the DHA held off making a bulk sale. Between 60 and 70 per cent of its capital program is channelled into refurbishment and maintenance of its pool of 17,000 houses across Australia, which are worth about $6 billion.
DHA leases back properties for up to 15 years. The standard lease terms are nine or 12 years, with an option for a three-year extension. At the end of 15 years, the houses are usually redeveloped. Investors are able to resell the houses while they are still leased to DHA, but the lease has to be attached to the sale. Independent valuers set market-based rents for the properties. Currently, the rents range from $370 to under $700 a week, depending on the location and the state or territory. Sphere: Related Content
Sainsbury Completes £191 Million Sale Leaseback of Four UK Distribution Centers
Property Week - April 9, 2008
Sainsbury’s has completed a £191m sale and leaseback deal on four of its distribution depots.
The money raised by the deals will be invested back into the supermarket’s property portfolio.
The deals, tipped in Property Week (23.11.07), have now completed. The four sites are:
•Tamworth, 423,494 sq ft, sold to BAE Capital Pension Fund Trustees for £38.5m
•Stoke, 561,203 sq ft sold to Canada Life for £40m
•Haydock, 626,624 sq ft sold to clients of Mutual Finance for £42.7m
•Hams Hall, 783,344 sq ft sold to Christian Vision for £70.1m.
All four deals have been secured on 25 year leases to Sainsbury’s with an average yield of 5.74%.
The move forms part of Sainsbury’s plans to actively manage its estate to ensure it maximises the value of each property.
Peter Baguley, Sainsbury’s property director said: ‘These are great deals for us and demonstrate the attractiveness of the Sainsbury’s covenant as we have managed to secure competitive terms during a set of very difficult market conditions. ‘It also demonstrates our continued commitment to supporting our operating business through delivering the active property strategy we set out a year ago.’
He said that the supermarket was also looking at options for a number of its other sites, particularly at the potential for redevelopment.
He added: ‘Where we have done as much as we can with a site, we see no reason to hold it freehold – it’s a dry asset. We’ve found that there’s a hardcore of good demand for good assets – not as much as a year ago but it’s still there.’
Sainsbury’s were advised on the deal by Cushman & Wakefield. Kitchen LaFrenais Morgan advised BAE; Atisreal advised Canada Life; Morgan Williams advised Mutual Finance and CGBA advised Christian Vision. Sphere: Related Content
Sainsbury’s has completed a £191m sale and leaseback deal on four of its distribution depots.
The money raised by the deals will be invested back into the supermarket’s property portfolio.
The deals, tipped in Property Week (23.11.07), have now completed. The four sites are:
•Tamworth, 423,494 sq ft, sold to BAE Capital Pension Fund Trustees for £38.5m
•Stoke, 561,203 sq ft sold to Canada Life for £40m
•Haydock, 626,624 sq ft sold to clients of Mutual Finance for £42.7m
•Hams Hall, 783,344 sq ft sold to Christian Vision for £70.1m.
All four deals have been secured on 25 year leases to Sainsbury’s with an average yield of 5.74%.
The move forms part of Sainsbury’s plans to actively manage its estate to ensure it maximises the value of each property.
Peter Baguley, Sainsbury’s property director said: ‘These are great deals for us and demonstrate the attractiveness of the Sainsbury’s covenant as we have managed to secure competitive terms during a set of very difficult market conditions. ‘It also demonstrates our continued commitment to supporting our operating business through delivering the active property strategy we set out a year ago.’
He said that the supermarket was also looking at options for a number of its other sites, particularly at the potential for redevelopment.
He added: ‘Where we have done as much as we can with a site, we see no reason to hold it freehold – it’s a dry asset. We’ve found that there’s a hardcore of good demand for good assets – not as much as a year ago but it’s still there.’
Sainsbury’s were advised on the deal by Cushman & Wakefield. Kitchen LaFrenais Morgan advised BAE; Atisreal advised Canada Life; Morgan Williams advised Mutual Finance and CGBA advised Christian Vision. Sphere: Related Content
Thursday, April 10, 2008
Amcol Enters $34 Million Build-to-Suit for New HQ Near Chicago
Crain's Chicago Real Estate Daily - April 7, 2008
Arlington Heights-based Amcol International Corp. is moving its headquarters to a new building in the Prairie Stone Business Park in Hoffman Estates in a $33.57-million sale/leaseback deal.
Amcol, an industrial clay processor, has been headquartered since 1987 at 1500 W. Shure Drive in Arlington Heights, where it leases about 48,000 square feet, says Gary Castagna, Amcol's chief financial officer.
Adjacent to that building, the firm also leases 18,000 square feet of research and development space at 1350 W. Shure Drive, he says.
Amcol bought the land for its new headquarters, a 72,000-square-foot building at 2370 Forbs Ave. in Hoffman Estates. The company sold the site to Boston-based CRIC Capital LLC, a joint venture between Prudential Real Estate Investors and Corporate Realty Investment Co. The venture is constructing the building. Amcol hopes to move in by Nov.1, Mr. Castagna says.
As part of the deal, which closed March 12, Amcol agreed to lease back the completed two-story building for 20 years. Mr. Castagna says the move allows the company to consolidate its offices and research facility into one building.
"It just seemed like the right setup for us," he says.
CRIC Capital paid about $466 per square foot for Amcol's new building in Prairie Stone, the 780-acre mixed-use development near Interstate 90 and State Route 59 in Hoffman Estates. Marjorie Palace, a managing partner at CRIC Capital, couldn't be reached for comment.
CRIC financed the transaction with a $33.57-million loan from Greenwich Capital Financial Products Inc., a subsidiary of Edinburgh, Scotland-based Royal Bank of Scotland Group PLC. Sphere: Related Content
Arlington Heights-based Amcol International Corp. is moving its headquarters to a new building in the Prairie Stone Business Park in Hoffman Estates in a $33.57-million sale/leaseback deal.
Amcol, an industrial clay processor, has been headquartered since 1987 at 1500 W. Shure Drive in Arlington Heights, where it leases about 48,000 square feet, says Gary Castagna, Amcol's chief financial officer.
Adjacent to that building, the firm also leases 18,000 square feet of research and development space at 1350 W. Shure Drive, he says.
Amcol bought the land for its new headquarters, a 72,000-square-foot building at 2370 Forbs Ave. in Hoffman Estates. The company sold the site to Boston-based CRIC Capital LLC, a joint venture between Prudential Real Estate Investors and Corporate Realty Investment Co. The venture is constructing the building. Amcol hopes to move in by Nov.1, Mr. Castagna says.
As part of the deal, which closed March 12, Amcol agreed to lease back the completed two-story building for 20 years. Mr. Castagna says the move allows the company to consolidate its offices and research facility into one building.
"It just seemed like the right setup for us," he says.
CRIC Capital paid about $466 per square foot for Amcol's new building in Prairie Stone, the 780-acre mixed-use development near Interstate 90 and State Route 59 in Hoffman Estates. Marjorie Palace, a managing partner at CRIC Capital, couldn't be reached for comment.
CRIC financed the transaction with a $33.57-million loan from Greenwich Capital Financial Products Inc., a subsidiary of Edinburgh, Scotland-based Royal Bank of Scotland Group PLC. Sphere: Related Content
Wednesday, April 09, 2008
SunTrust Completes $736 Million Sale Leaseback of 433 Bank Branch Portfolio
Cityfeet / GlobeSt.com - April 7, 2008
Two affiliates of Inland Real Estate Group of Cos. Inc., based here, have completed the third and final closing of two portfolios for a total of $736 million from SunTrust Bank, a subsidiary of SunTrust Banks Inc., headquartered in Atlanta. The two affiliates acquired a total of 433 triple-net lease properties with nearly 2.3 million sf. Inland Real Estate Acquisitions Inc. recently closed on the final portion of the two portfolios, which includes 143 single tenant, triple-net lease properties for $230 million.
The affiliates had previously closed on 218 properties on Dec. 10, 2007 and 72 properties 10 days later, says Joe Cosenza, president of Inland Real Estate Acquisitions. The cap rate for the acquisition of the two portfolios is approximately 7.25%, Cosenza tells GlobeSt.com.
There are 159 locations in Florida, 74 locations each in Georgia and North Carolina, 43 locations in Tennessee, and 12 locations in South Carolina with the rest in Alabama, Maryland, Virginia and Washington, DC, Cosenza tells GlobeSt.com. Inland paid $93.7 million in cash and received a $281.2 million loan from LaSalle Bank NA, according to a filing with the US Securities and Exchange Commission on the portfolio acquisition. The interest-only loan matures Dec. 10, 2008, according to the filing.
SunTrust was looking to sell the portfolios for the same reasons a lot of banks and corporations are doing the same, Cosenza says. SunTrust did not want to “hold or own all of this real estate when the only thing you can do on your books is depreciate it every year,” he says. SunTrust builds approximately 40 to 50 branches each year. “Some of this money was actually put into a tax deferred exchange so they can apply it to the new facilities they are going to be building,” he says.
The majority of the properties in the two portfolios are retail bank facilities that are between 2,000 sf and 6,000 sf, Cosenza says. There are eight bank locations that also have some office space that average between 10,000 sf and 13,000 sf, he says. Additionally, there is a 78,308-sf data center in Virginia.
SunTrust Bank will lease all of the retail bank facilities for 10 years, with a 10-year renewal option and then subsequent five-year renewal options. The average rent is $23.34 per sf net with an annual 1.5% base rent increase, Cosenza tells GlobeSt.com. Inland was interested in the portfolio because “I have smaller type properties, in almost every case, (that) I can re-lease to any number of tenants who would love this kind of drive-up facility, including other banks,” Cosenza says.
Inland considers SunTrust a quality tenant. “We have over $25 billion in deposits at these locations,” Cosenza says. “These are very healthy retail branch locations.” SunTrust is also a subsidiary of a company with an S&P credit rating of AA- and that has “more than $18 billion in stockholder equity and they had virtually no sub-prime loans,” he says. Sphere: Related Content
Two affiliates of Inland Real Estate Group of Cos. Inc., based here, have completed the third and final closing of two portfolios for a total of $736 million from SunTrust Bank, a subsidiary of SunTrust Banks Inc., headquartered in Atlanta. The two affiliates acquired a total of 433 triple-net lease properties with nearly 2.3 million sf. Inland Real Estate Acquisitions Inc. recently closed on the final portion of the two portfolios, which includes 143 single tenant, triple-net lease properties for $230 million.
The affiliates had previously closed on 218 properties on Dec. 10, 2007 and 72 properties 10 days later, says Joe Cosenza, president of Inland Real Estate Acquisitions. The cap rate for the acquisition of the two portfolios is approximately 7.25%, Cosenza tells GlobeSt.com.
There are 159 locations in Florida, 74 locations each in Georgia and North Carolina, 43 locations in Tennessee, and 12 locations in South Carolina with the rest in Alabama, Maryland, Virginia and Washington, DC, Cosenza tells GlobeSt.com. Inland paid $93.7 million in cash and received a $281.2 million loan from LaSalle Bank NA, according to a filing with the US Securities and Exchange Commission on the portfolio acquisition. The interest-only loan matures Dec. 10, 2008, according to the filing.
SunTrust was looking to sell the portfolios for the same reasons a lot of banks and corporations are doing the same, Cosenza says. SunTrust did not want to “hold or own all of this real estate when the only thing you can do on your books is depreciate it every year,” he says. SunTrust builds approximately 40 to 50 branches each year. “Some of this money was actually put into a tax deferred exchange so they can apply it to the new facilities they are going to be building,” he says.
The majority of the properties in the two portfolios are retail bank facilities that are between 2,000 sf and 6,000 sf, Cosenza says. There are eight bank locations that also have some office space that average between 10,000 sf and 13,000 sf, he says. Additionally, there is a 78,308-sf data center in Virginia.
SunTrust Bank will lease all of the retail bank facilities for 10 years, with a 10-year renewal option and then subsequent five-year renewal options. The average rent is $23.34 per sf net with an annual 1.5% base rent increase, Cosenza tells GlobeSt.com. Inland was interested in the portfolio because “I have smaller type properties, in almost every case, (that) I can re-lease to any number of tenants who would love this kind of drive-up facility, including other banks,” Cosenza says.
Inland considers SunTrust a quality tenant. “We have over $25 billion in deposits at these locations,” Cosenza says. “These are very healthy retail branch locations.” SunTrust is also a subsidiary of a company with an S&P credit rating of AA- and that has “more than $18 billion in stockholder equity and they had virtually no sub-prime loans,” he says. Sphere: Related Content
Saturday, April 05, 2008
Bank of America Seeking Sale Leaseback of Chicago Landmark
Commercial Property News - April 3, 2008
Bank of America Corp. is reportedly putting the 135 S. LaSalle St. building in Downtown Chicago on the block. If all goes according to plan, the bank will then lease back the space it occupies in the building--most of its total of 1.25 million square feet.
The building, one of the last built in Chicago before the Great Depression put a halt to commercial development in the city for many years, had previously been owned by ABN AMRO, former parent of Chicago-based LaSalle Bank. When the consortium of Fortis N.V., The Royal Bank of Scotland Group plc and Banco Santander Central Hispano, S.AU.K. bought the Dutch ABN AMRO last year, part of the deal was the sale of LaSalle Bank (along with the building) to San Francisco-based Bank of America.
According to a report in the Chicago Tribune, Bank of America has a long-standing policy of selling off real estate it acquires during its frequent M&A activity, and then leasing the space back for continued operations. Bank of America Corp. has hired Jones Lang LaSalle Inc. to take the property to market.
The prospect of such a major Central Loop office property on the market comes at a time of a lull in investment sales in Chicago that's attributed to the credit squeeze. Still, office space absorption and occupancy rates have been up in Downtown Chicago recently, which may bode well for attracting buyers for a building such as 135 S. LaSalle.
According to Grubb & Ellis Co., some 2.3 million square feet of Downtown Chicago office space was absorbed in 2007, the most since 2001. Vacancies stand at 13.3 percent in the Central Loop--the lowest of any Downtown submarket, and tied with North Michigan Ave.--and at 13.9 percent in the Loop as a whole. Sphere: Related Content
Bank of America Corp. is reportedly putting the 135 S. LaSalle St. building in Downtown Chicago on the block. If all goes according to plan, the bank will then lease back the space it occupies in the building--most of its total of 1.25 million square feet.
The building, one of the last built in Chicago before the Great Depression put a halt to commercial development in the city for many years, had previously been owned by ABN AMRO, former parent of Chicago-based LaSalle Bank. When the consortium of Fortis N.V., The Royal Bank of Scotland Group plc and Banco Santander Central Hispano, S.AU.K. bought the Dutch ABN AMRO last year, part of the deal was the sale of LaSalle Bank (along with the building) to San Francisco-based Bank of America.
According to a report in the Chicago Tribune, Bank of America has a long-standing policy of selling off real estate it acquires during its frequent M&A activity, and then leasing the space back for continued operations. Bank of America Corp. has hired Jones Lang LaSalle Inc. to take the property to market.
The prospect of such a major Central Loop office property on the market comes at a time of a lull in investment sales in Chicago that's attributed to the credit squeeze. Still, office space absorption and occupancy rates have been up in Downtown Chicago recently, which may bode well for attracting buyers for a building such as 135 S. LaSalle.
According to Grubb & Ellis Co., some 2.3 million square feet of Downtown Chicago office space was absorbed in 2007, the most since 2001. Vacancies stand at 13.3 percent in the Central Loop--the lowest of any Downtown submarket, and tied with North Michigan Ave.--and at 13.9 percent in the Loop as a whole. Sphere: Related Content
Rexel Enters Sale Leaseback of Warehouse Portfolio in France
Gecina Web Site - April 3, 2008
GECINA is acquiring four logistics platforms in France from REXEL, representing a total surface area of nearly 76,000 sq.m.
This acquisition is part of a sale and leaseback operation with REXEL FRANCE, a subsidiary of the REXEL group, the world's leading distributor of electrical equipment, and is combined with the signature of commercial leases.
The four logistics platforms, located in Nancy-Champigneulles (East), Rouen-Grand-Quevilly (Normandy), Orl€ans-Meung-sur-Loire (Center) and Marseille-Miramas (South) offer surface areas from 15,800 sq.m up to around 26,000 sq.m. These assets are all located in key logistics centers and on major transport hubs.
GECINA has also signed a firm agreement with a view to acquiring a further three platforms from REXEL FRANCE shortly, with a total surface area of approximately 48,000 sq.m. Sphere: Related Content
GECINA is acquiring four logistics platforms in France from REXEL, representing a total surface area of nearly 76,000 sq.m.
This acquisition is part of a sale and leaseback operation with REXEL FRANCE, a subsidiary of the REXEL group, the world's leading distributor of electrical equipment, and is combined with the signature of commercial leases.
The four logistics platforms, located in Nancy-Champigneulles (East), Rouen-Grand-Quevilly (Normandy), Orl€ans-Meung-sur-Loire (Center) and Marseille-Miramas (South) offer surface areas from 15,800 sq.m up to around 26,000 sq.m. These assets are all located in key logistics centers and on major transport hubs.
GECINA has also signed a firm agreement with a view to acquiring a further three platforms from REXEL FRANCE shortly, with a total surface area of approximately 48,000 sq.m. Sphere: Related Content
NHS Ponders Multi-Billion Pound Sale Leaseback of London Hospitals
Times Online - April 5, 2008
Ministers have begun a review of London NHS property in a move that could lead to the sale of some or all of the capital’s biggest hospitals to raise billions of pounds for new projects.
The Times has learnt that the London strategic health authority, which includes the 31 primary healthcare trusts in the city, has hired investment bankers to advise it on the options. The NHS has one of the largest property estates in Europe, valued at more than £23 billion.
In London the huge and ageing property portfolio comprises nearly 100 hospitals and hundreds of smaller sites, which together cost £700 million a year to maintain. The review follows Gordon Brown’s plan to reap billions from selling off a swath of the Government’s £337 billion of assets.
The capital has 32 large acute hospitals, and 206,000 doctors, nurses and other NHS staff are deployed in the city. If the London NHS review proved successful, the model could be replicated across other NHS healthcare trusts around the country. “They are sitting on all this property and it is all such a waste,” one source said.
The most likely London options would include the Government selling off some of the prime hospital real estate in a process known as “sale and leaseback”, which would leave the NHS trust paying rent to the new owners for the continued lease of the building. Another option being considered is “securitisation”, where the Government would bundle together packages of buildings and use them as collateral to raise money in the markets, although that would leave the Government with a huge pile of debt.
But it is not just hospitals that are attractive for potential investors. The Times was told that the NHS was also sitting on vast plots of unused land and outbuildings that could be handed over to developers. Sphere: Related Content
Ministers have begun a review of London NHS property in a move that could lead to the sale of some or all of the capital’s biggest hospitals to raise billions of pounds for new projects.
The Times has learnt that the London strategic health authority, which includes the 31 primary healthcare trusts in the city, has hired investment bankers to advise it on the options. The NHS has one of the largest property estates in Europe, valued at more than £23 billion.
In London the huge and ageing property portfolio comprises nearly 100 hospitals and hundreds of smaller sites, which together cost £700 million a year to maintain. The review follows Gordon Brown’s plan to reap billions from selling off a swath of the Government’s £337 billion of assets.
The capital has 32 large acute hospitals, and 206,000 doctors, nurses and other NHS staff are deployed in the city. If the London NHS review proved successful, the model could be replicated across other NHS healthcare trusts around the country. “They are sitting on all this property and it is all such a waste,” one source said.
The most likely London options would include the Government selling off some of the prime hospital real estate in a process known as “sale and leaseback”, which would leave the NHS trust paying rent to the new owners for the continued lease of the building. Another option being considered is “securitisation”, where the Government would bundle together packages of buildings and use them as collateral to raise money in the markets, although that would leave the Government with a huge pile of debt.
But it is not just hospitals that are attractive for potential investors. The Times was told that the NHS was also sitting on vast plots of unused land and outbuildings that could be handed over to developers. Sphere: Related Content
Saturday, March 29, 2008
Sainsbury Agrees to £1.2 Billion Sale Leaseback of 38 UK Supermarkets
Telegraph - March 27, 2008
Supermarket chain J Sainsbury has struck a £1.2bn property deal with developer British Land by placing 38 of its stores into a joint venture.
The purpose of the deal is to improve those stores, which were owned by British Land and leased back to Sainbury's on 20-year agreements, through extensions and developments. Sainsbury's chief executive, Justin King, has been under pressure to extract more value from its property portfolio.
Twenty-five of the 38 stores, which are valued at £1.2bn, have already been earmarked for expansion, increasing net selling area by about 500,000 sq ft. The joint venture also owns one Waitrose store.
Sainbury's is investing £273m into the 10-year partnership, and said that the deal was in line with its strategy of increasing control of those supermarkets which have development potential, while selling off its fully developed stores.
Last year the retailer came under pressure from 5pc shareholder Robert Tchenguiz, the property entrepreneur, to sell off its freehold property and return cash to shareholders.
Referring to the joint venture, Sainsbury's chief executive Justin King, said: "This venture is an excellent opportunity for Sainsbury's to increase our interest in the future extension and development of many of our most important stores. "This will enable us to enhance the customer offer, increasing both the trading and property value of these assets."
British Land is the biggest owner of supermarkets, after retailers themselves, in the UK. Its total supermarket portfolio includes 97 stores, valued at £1.96bn. Sphere: Related Content
Supermarket chain J Sainsbury has struck a £1.2bn property deal with developer British Land by placing 38 of its stores into a joint venture.
The purpose of the deal is to improve those stores, which were owned by British Land and leased back to Sainbury's on 20-year agreements, through extensions and developments. Sainsbury's chief executive, Justin King, has been under pressure to extract more value from its property portfolio.
Twenty-five of the 38 stores, which are valued at £1.2bn, have already been earmarked for expansion, increasing net selling area by about 500,000 sq ft. The joint venture also owns one Waitrose store.
Sainbury's is investing £273m into the 10-year partnership, and said that the deal was in line with its strategy of increasing control of those supermarkets which have development potential, while selling off its fully developed stores.
Last year the retailer came under pressure from 5pc shareholder Robert Tchenguiz, the property entrepreneur, to sell off its freehold property and return cash to shareholders.
Referring to the joint venture, Sainsbury's chief executive Justin King, said: "This venture is an excellent opportunity for Sainsbury's to increase our interest in the future extension and development of many of our most important stores. "This will enable us to enhance the customer offer, increasing both the trading and property value of these assets."
British Land is the biggest owner of supermarkets, after retailers themselves, in the UK. Its total supermarket portfolio includes 97 stores, valued at £1.96bn. Sphere: Related Content
Tuesday, March 25, 2008
Creative Technology Enters $250 Million Sale Leaseback of Singapore Office Building
The Business Times - March 25, 2008
Creative Technology said yesterday it has entered into an agreement with a buyer to sell and lease back its 11-year-old Singapore office building at International Business Park.
The sale price for the proposed transaction is $250 million. Creative will lease back the whole building for five years with an option for additional periods of three and two years, the company said in a statement, without disclosing the identity of the buyer.
Creative said it expects to make a gain of about $200 million from the transaction. It said that in accordance with US accounting standards, this amount will be treated as a deferred gain and will be amortised and recognised in the company's income statements over the lease term of five years.
The deal, which is subject to regulatory and shareholder approval, is expected to be completed by end-June.
Creative has owned its flagship Singapore building - called Creative Resource - since it was completed in 1997. The MP3 player and PC sound card specialist moved into the building from its Ayer Rajah Industrial Estate premises that year.
Creative Resource houses the company's headquarters operations and subsidiaries in Singapore. Sphere: Related Content
Creative Technology said yesterday it has entered into an agreement with a buyer to sell and lease back its 11-year-old Singapore office building at International Business Park.
The sale price for the proposed transaction is $250 million. Creative will lease back the whole building for five years with an option for additional periods of three and two years, the company said in a statement, without disclosing the identity of the buyer.
Creative said it expects to make a gain of about $200 million from the transaction. It said that in accordance with US accounting standards, this amount will be treated as a deferred gain and will be amortised and recognised in the company's income statements over the lease term of five years.
The deal, which is subject to regulatory and shareholder approval, is expected to be completed by end-June.
Creative has owned its flagship Singapore building - called Creative Resource - since it was completed in 1997. The MP3 player and PC sound card specialist moved into the building from its Ayer Rajah Industrial Estate premises that year.
Creative Resource houses the company's headquarters operations and subsidiaries in Singapore. Sphere: Related Content
Kia Union to Strike Over $250 Million Sale Leaseback of Korean Auto Plant
Tradingmarkets.com - March 23, 2008
The labor union of Kia Motors said Monday that it will strike to protest the management's decision to generate liquidity through a sales and lease-back arrangement of manufacturing assets at one of its plants, which may affect workers' job stability.
The strike protesting the sale and lease-back of Kia's Sohari plant is expected to affect production in Sohari, Hwaseong and Gwangju, and will go into effect on Tuesday.
The labor leader said the strike will be maintained indefinitely, unless the management reconsiders the Sohari deal, which the company claims generated 250 billion won (US$250.7 million) in liquidity.
The labor activist claimed that the management broke a standing pact with the union by generating funds in a manner that can affect production and hurt job stability.
Labor experts, meanwhile, said the decision by Kia labor leaders to strike may be controversial because there was no union-wide vote. The motion was passed by a gathering of union representatives of Kia.
Kia Motors Corp. is South Korea's second-largest carmaker, and is an affiliate of the giant Hyundai Motor Co. Sphere: Related Content
The labor union of Kia Motors said Monday that it will strike to protest the management's decision to generate liquidity through a sales and lease-back arrangement of manufacturing assets at one of its plants, which may affect workers' job stability.
The strike protesting the sale and lease-back of Kia's Sohari plant is expected to affect production in Sohari, Hwaseong and Gwangju, and will go into effect on Tuesday.
The labor leader said the strike will be maintained indefinitely, unless the management reconsiders the Sohari deal, which the company claims generated 250 billion won (US$250.7 million) in liquidity.
The labor activist claimed that the management broke a standing pact with the union by generating funds in a manner that can affect production and hurt job stability.
Labor experts, meanwhile, said the decision by Kia labor leaders to strike may be controversial because there was no union-wide vote. The motion was passed by a gathering of union representatives of Kia.
Kia Motors Corp. is South Korea's second-largest carmaker, and is an affiliate of the giant Hyundai Motor Co. Sphere: Related Content
Subscribe to:
Posts (Atom)
