PropertyEU - December 18, 2008
The employee pension fund of Spain's savings bank Caja de Ahorros del Mediterraneo (CAM) has acquired three office buildings from the bank for EUR 63 mln. The assets are located in Alicante, Valencia and Barcelona, and have been leased back to CAM for a period of 20 years with an option to extend for a further 10 years.
The fund said this sale-and-leaseback transaction is expected to 'give more stability to its real estate portfolio, as it provides a stable income stream which is less subject to market volatility.
Sphere: Related Content
Monday, December 22, 2008
Tuesday, December 16, 2008
Caixa Catalunya Seeking EUR 500 Million Sale Leaseback of 824 Bank Branches Across Spain
Reuters - December 14, 2008
Spanish savings bank Caixa Catalunya is seeking to sell 824 of its 1,200 buildings in Spain in a bid to raise 500 million euros ($663.4 million), La Vanguardia reported on Sunday, citing sources at the bank.The bank wants to strike a deal with potential buyers to continue to rent the branches, with a buy-back option for 10, 15 and 20 years, and wants to sell them in lots of 5 million euros, which would include 10 to 15 premises, the paper said.
The bank is in particular targeting its private banking clients as potential buyers, it added.
Its head office in Barcelona is not up for sale, added the report. No one was immediately available at the bank on Sunday to comment.
Other Spanish banks have also closed leaseback deals on their property, notably Spain's largest bank Santander (SAN.MC), which has sold more than 1,150 of its branches and other buildings and its headquarters complex at Boadilla del Monte on the outskirts of Madrid. Sphere: Related Content
Spanish savings bank Caixa Catalunya is seeking to sell 824 of its 1,200 buildings in Spain in a bid to raise 500 million euros ($663.4 million), La Vanguardia reported on Sunday, citing sources at the bank.The bank wants to strike a deal with potential buyers to continue to rent the branches, with a buy-back option for 10, 15 and 20 years, and wants to sell them in lots of 5 million euros, which would include 10 to 15 premises, the paper said.
The bank is in particular targeting its private banking clients as potential buyers, it added.
Its head office in Barcelona is not up for sale, added the report. No one was immediately available at the bank on Sunday to comment.
Other Spanish banks have also closed leaseback deals on their property, notably Spain's largest bank Santander (SAN.MC), which has sold more than 1,150 of its branches and other buildings and its headquarters complex at Boadilla del Monte on the outskirts of Madrid. Sphere: Related Content
Sunday, December 14, 2008
Tesco Pursuing €212 Million Sale Leaseback of Six Properties in Ireland
Property Week - December 12, 2008
Tesco plans to sell properties in the Republic of Ireland worth €212m (£184m), including shopping centres Golden Island in Athlone and Artane Castle, Artane, north Dublin.
It is looking for €60m (£52m) for Golden Island, which would reflect a net initial yield of 6.15%, and €35m (£30m) for Artane Castle – a yield of more than 6%.
DTZ Sherry FitzGerald is quoting €116.9m (£101m) for a sale and leaseback of four other stores. Sphere: Related Content
Tesco plans to sell properties in the Republic of Ireland worth €212m (£184m), including shopping centres Golden Island in Athlone and Artane Castle, Artane, north Dublin.
It is looking for €60m (£52m) for Golden Island, which would reflect a net initial yield of 6.15%, and €35m (£30m) for Artane Castle – a yield of more than 6%.
DTZ Sherry FitzGerald is quoting €116.9m (£101m) for a sale and leaseback of four other stores. Sphere: Related Content
Sunday, December 07, 2008
European Banks Look to Sale Leasebacks for Liquidity Amid Tight Capital Markets
Property Week - December 5, 2008
European banks have embarked on a slew of sale and leasebacks in an attempt to raise cash amid the global economic turmoil.
Collapsed Belgian bank Fortis, BBVA and Banco Sabadell have all put portfolios on the market.
Almost every other top European bank, from Italy’s UniCredito to Royal Bank of Scotland in the UK, is also scrutinising its property holdings to see where money can be made.
A report by Merrill Lynch found that Europe’s leading banks need to raise a further €73bn (£61bn) to keep their finances steady.
Cushman & Wakefield found that the top 43 European banks have €63bn (£52bn) of property assets on their balance sheets (see table).
Matthew Stone, head of occupier strategy at Cushman & Wakefield, said: ‘One increasingly popular method for banks to raise capital is through sale and leasebacks. The Spanish banks, BBVA and Banco Sabadell, and Fortis of Belgium, have all recently announced plans for billions of euros of sale and leaseback transactions, and many other European banks are actively considering them as a cost-efficient method of raising finance.
‘Leading European banks have over €63bn of land and buildings on their balance sheets which, if fully monetised, would meet almost all the €73bn of additional capital needs estimated by Merrill Lynch.’
There are investors willing to buy this kind of property. The fact that some banks have been bailed out by governments provides reassurance that they are safe from insolvency and are good covenants. Sphere: Related Content
European banks have embarked on a slew of sale and leasebacks in an attempt to raise cash amid the global economic turmoil.
Collapsed Belgian bank Fortis, BBVA and Banco Sabadell have all put portfolios on the market.
Almost every other top European bank, from Italy’s UniCredito to Royal Bank of Scotland in the UK, is also scrutinising its property holdings to see where money can be made.
A report by Merrill Lynch found that Europe’s leading banks need to raise a further €73bn (£61bn) to keep their finances steady.
Cushman & Wakefield found that the top 43 European banks have €63bn (£52bn) of property assets on their balance sheets (see table).
Matthew Stone, head of occupier strategy at Cushman & Wakefield, said: ‘One increasingly popular method for banks to raise capital is through sale and leasebacks. The Spanish banks, BBVA and Banco Sabadell, and Fortis of Belgium, have all recently announced plans for billions of euros of sale and leaseback transactions, and many other European banks are actively considering them as a cost-efficient method of raising finance.
‘Leading European banks have over €63bn of land and buildings on their balance sheets which, if fully monetised, would meet almost all the €73bn of additional capital needs estimated by Merrill Lynch.’
There are investors willing to buy this kind of property. The fact that some banks have been bailed out by governments provides reassurance that they are safe from insolvency and are good covenants. Sphere: Related Content
Wednesday, December 03, 2008
Renown Agrees to $89.3 Million Sale Leaseback of Two Properties in Japan
Trading Markets.com - December 1, 2008
Japan's Renown Inc. (TSE:3606) said Friday that it will sell its headquarters building in Tokyo and an office building in Osaka for a total of 8.5 billion yen (US$89.3 million). The apparel company, which is undergoing rehabilitation, plans to use the proceeds to reduce interest-bearing debt and renovate stores.
Renown will sell the Tokyo property to building-leasing firm TOC CO. (8841) for 6 billion yen and the Osaka property to condominium builder Haseko Corp. (TSE:1808) for 2.5 billion yen.
It will sign lease contracts with the buyers and continue using the buildings. Sphere: Related Content
Japan's Renown Inc. (TSE:3606) said Friday that it will sell its headquarters building in Tokyo and an office building in Osaka for a total of 8.5 billion yen (US$89.3 million). The apparel company, which is undergoing rehabilitation, plans to use the proceeds to reduce interest-bearing debt and renovate stores.
Renown will sell the Tokyo property to building-leasing firm TOC CO. (8841) for 6 billion yen and the Osaka property to condominium builder Haseko Corp. (TSE:1808) for 2.5 billion yen.
It will sign lease contracts with the buyers and continue using the buildings. Sphere: Related Content
Tuesday, December 02, 2008
Dearth of Financing Slows Sale Leasebacks
Financial Week - November 30, 2008
The credit crunch is killing the trend of using sale-leasebacks to raise capital, because frozen conditions have made it nearly impossible to get deals done.
Through Nov. 1, sale-leasebacks totaled $6.2 billion, less than half of the $14.2 billion in such transactions seen during 2007, according to Real Capital Analytics. Most of the deals that do close are one-off, single-tenant transactions amounting to less than $100 million each, experts say, a change from the large portfolio deals that dominated the market in years past.
From 2002 through 2007, sale-leasebacks gained popularity with private equity firms, which sold real estate assets from acquisitions to pay off the loans used to bankroll their leveraged buyouts. Having less invested capital increased PE firms’ net returns on assets and equity.
But few other corporations saw the need for them because the liberal lending atmosphere made capital promptly and cheaply obtainable. As that lending has dried up, sale-leasebacks, like most other forms of financing, have become both more desirable and less available.
Sale-leasebacks have slowed dramatically,” said Dan Fasulo, managing director of Real Capital Analytics. “It’s counterintuitive, because you’d think that they would be thriving in this type of environment. But it doesn’t matter how good the tenants are, the lenders just are not there.”
One reason is that lenders can no longer package loans for sale-leasebacks into securities as they did during the real estate boom.
“If the debt is available, it’s available in smaller denominations, because you are working directly with a lender, not from a securitization anymore,” said Mindy Berman, the managing director of corporate capital markets at Jones Lang LaSalle.
In addition to providing another source of capital, sale-leasebacks offer a way to reap gains on property that has been on the balance sheet. Companies have been depreciating their real estate assets for years, so the book value of those assets is low and companies should realize hefty profits on sales. But commercial real estate prices have come down considerably from their 2007 highs, and some executives harbor unrealistic expectations regarding the value of their properties, experts said.
“There is still a real spread between sellers’ expectations and what buyers are willing to pay,” said Arthur Greenberg, an executive vice president in the Washington office of real estate broker Studley. “There is a lot of money sitting on the sidelines, but it is primarily private equity money, and [private equity] has higher yield expectations than the current market is offering.”
Potential investors will only consider deals for top-notch properties whose tenants have stellar credit, and they’re looking for long-term leases that stretch to 15 years instead of 10. Medical office building sale-leasebacks represent a bright spot in the industry, while deals have dried up in sectors that have suffered more from the financial slowdown, such as retail or automotive.
“Underwriting has changed significantly in the sale-leaseback realm,” said Ms. Berman of Jones Lang LaSalle. “We’re back to basics. You need to underwrite the credit of the tenant and the property fundamentals.”
Still, Ms. Berman said her office fields calls every day from companies interested in determining the value of their property and the feasibility of a sale-leaseback.
“In today’s market, everyone is desperate,” said Bill Pollert, president of CapLease, a real estate investment trust that specializes in single-tenant properties. “They’re looking for every possible way to generate capital. It’s hard for companies that are not in real estate to justify owning property.”
Experts expect the sector to lead the rebound in commercial real estate once credit conditions relax.
“Fundamentally, the economics that justify sale-leasebacks are strong and viable,” Mr. Pollert said. “It’s a segment that will come back and will be strong once the debt markets come back. There is a lot of pent-up demand out there.” Sphere: Related Content
The credit crunch is killing the trend of using sale-leasebacks to raise capital, because frozen conditions have made it nearly impossible to get deals done.
Through Nov. 1, sale-leasebacks totaled $6.2 billion, less than half of the $14.2 billion in such transactions seen during 2007, according to Real Capital Analytics. Most of the deals that do close are one-off, single-tenant transactions amounting to less than $100 million each, experts say, a change from the large portfolio deals that dominated the market in years past.
From 2002 through 2007, sale-leasebacks gained popularity with private equity firms, which sold real estate assets from acquisitions to pay off the loans used to bankroll their leveraged buyouts. Having less invested capital increased PE firms’ net returns on assets and equity.
But few other corporations saw the need for them because the liberal lending atmosphere made capital promptly and cheaply obtainable. As that lending has dried up, sale-leasebacks, like most other forms of financing, have become both more desirable and less available.
Sale-leasebacks have slowed dramatically,” said Dan Fasulo, managing director of Real Capital Analytics. “It’s counterintuitive, because you’d think that they would be thriving in this type of environment. But it doesn’t matter how good the tenants are, the lenders just are not there.”
One reason is that lenders can no longer package loans for sale-leasebacks into securities as they did during the real estate boom.
“If the debt is available, it’s available in smaller denominations, because you are working directly with a lender, not from a securitization anymore,” said Mindy Berman, the managing director of corporate capital markets at Jones Lang LaSalle.
In addition to providing another source of capital, sale-leasebacks offer a way to reap gains on property that has been on the balance sheet. Companies have been depreciating their real estate assets for years, so the book value of those assets is low and companies should realize hefty profits on sales. But commercial real estate prices have come down considerably from their 2007 highs, and some executives harbor unrealistic expectations regarding the value of their properties, experts said.
“There is still a real spread between sellers’ expectations and what buyers are willing to pay,” said Arthur Greenberg, an executive vice president in the Washington office of real estate broker Studley. “There is a lot of money sitting on the sidelines, but it is primarily private equity money, and [private equity] has higher yield expectations than the current market is offering.”
Potential investors will only consider deals for top-notch properties whose tenants have stellar credit, and they’re looking for long-term leases that stretch to 15 years instead of 10. Medical office building sale-leasebacks represent a bright spot in the industry, while deals have dried up in sectors that have suffered more from the financial slowdown, such as retail or automotive.
“Underwriting has changed significantly in the sale-leaseback realm,” said Ms. Berman of Jones Lang LaSalle. “We’re back to basics. You need to underwrite the credit of the tenant and the property fundamentals.”
Still, Ms. Berman said her office fields calls every day from companies interested in determining the value of their property and the feasibility of a sale-leaseback.
“In today’s market, everyone is desperate,” said Bill Pollert, president of CapLease, a real estate investment trust that specializes in single-tenant properties. “They’re looking for every possible way to generate capital. It’s hard for companies that are not in real estate to justify owning property.”
Experts expect the sector to lead the rebound in commercial real estate once credit conditions relax.
“Fundamentally, the economics that justify sale-leasebacks are strong and viable,” Mr. Pollert said. “It’s a segment that will come back and will be strong once the debt markets come back. There is a lot of pent-up demand out there.” Sphere: Related Content
Tuesday, November 18, 2008
Trent Ltd Considers Sale Leaseback of Retail Portfolio in India to Fund Expansion
mydigitalfc.com - November 16, 2008
Trent Ltd, the fashion retailer headed by Noel Naval Tata, is considering sale of some of its prime properties to raise cash for expansion. Because the retail business needs physical space, Trent will take the properties back on lease.
Senior Trent officials told Financial Chronicle that, at current realty prices, up to Rs 700 crore ($9 Billion) could be raised by selling its properties across India, the combined space of which is almost 300,000 sq ft.
The properties include an office building in Mumbai’s suburban business district of Bandra Kurla complex, Spencer’s Plaza in Chennai and a property each in Delhi and Ahmedabad.
“We could enter into a sale and leaseback agreement, thus freeing up a considerable amount of cash for our expansion without having to raise fresh equity through a rights issue,” a top Trent official said.
The money along with internal accruals is expected to help Trent fund its Rs 2,000 crore investment in the Star India Bazaar hypermarket chain and Westside retail stores. The company also needs money to expand its Landmark book and music stores and for its new value-retail format and investments in setting up or expanding its upmarket Sisley, Topman and Topshop retail stores.
Among listed retailers in India, Trent has the highest gross margins in terms of percentages of sales and per sq ft of space used, according to a recent study by the brokerage, CLSA. Sphere: Related Content
Trent Ltd, the fashion retailer headed by Noel Naval Tata, is considering sale of some of its prime properties to raise cash for expansion. Because the retail business needs physical space, Trent will take the properties back on lease.
Senior Trent officials told Financial Chronicle that, at current realty prices, up to Rs 700 crore ($9 Billion) could be raised by selling its properties across India, the combined space of which is almost 300,000 sq ft.
The properties include an office building in Mumbai’s suburban business district of Bandra Kurla complex, Spencer’s Plaza in Chennai and a property each in Delhi and Ahmedabad.
“We could enter into a sale and leaseback agreement, thus freeing up a considerable amount of cash for our expansion without having to raise fresh equity through a rights issue,” a top Trent official said.
The money along with internal accruals is expected to help Trent fund its Rs 2,000 crore investment in the Star India Bazaar hypermarket chain and Westside retail stores. The company also needs money to expand its Landmark book and music stores and for its new value-retail format and investments in setting up or expanding its upmarket Sisley, Topman and Topshop retail stores.
Among listed retailers in India, Trent has the highest gross margins in terms of percentages of sales and per sq ft of space used, according to a recent study by the brokerage, CLSA. Sphere: Related Content
Sunday, November 16, 2008
Banco Sabadell Considering EUR 500 Million Sale Leaseback of 600 Bank Branches Across Spain
Monereo Meyer Marinel Web Site - November 14, 2008
Banco Sabadell is considering selling approximately 50% of their branch offices. The entity is planning to sell 600 offices in its network under the sale and leaseback model, a transaction that provides investors with great security and a potential payoff of between 500 and 600 million Euros.
According to data from the Spanish newspaper Expansión, Banco Sabadell has confirmed that the transaction of the sale of up to 600 branches currently owned by the bank is in its initial phase, and would not take place until 2009. The transaction would involve the sale of blocks or parts of these assets, under the sale and leaseback model, with Sabadell remaining as a tenant for a period of between 25 and 30 years, with a final option of buying the property back, thus guaranteeing safe and steady income for the buyer. This type of transaction offers great security to investors since it is backed by an entity with a good rating. Market experts have said that the entity could earn between 500 and 600 million Euros.
According to preliminary plans, the corporate offices would not be included in the transaction although sources close to the entity note that they have also been appraised. Banco Sabadell began appraising their real estate assets a year ago and confirms that they are in no hurry to sell and intend to wait for an interesting opportunity to present itself. In fact, the bank has strengthened its balance sheet this year by selling half of its bank insurance business to Zurich, with a capital gain of 512 million Euros.
Banco Sabadell will thus join Spanish financial institutions that have decided to sell off part of their real estate holdings, a trend Banco Santander started with BBVA, Banco Popular and Caixa Galicia following suit. Sphere: Related Content
Banco Sabadell is considering selling approximately 50% of their branch offices. The entity is planning to sell 600 offices in its network under the sale and leaseback model, a transaction that provides investors with great security and a potential payoff of between 500 and 600 million Euros.
According to data from the Spanish newspaper Expansión, Banco Sabadell has confirmed that the transaction of the sale of up to 600 branches currently owned by the bank is in its initial phase, and would not take place until 2009. The transaction would involve the sale of blocks or parts of these assets, under the sale and leaseback model, with Sabadell remaining as a tenant for a period of between 25 and 30 years, with a final option of buying the property back, thus guaranteeing safe and steady income for the buyer. This type of transaction offers great security to investors since it is backed by an entity with a good rating. Market experts have said that the entity could earn between 500 and 600 million Euros.
According to preliminary plans, the corporate offices would not be included in the transaction although sources close to the entity note that they have also been appraised. Banco Sabadell began appraising their real estate assets a year ago and confirms that they are in no hurry to sell and intend to wait for an interesting opportunity to present itself. In fact, the bank has strengthened its balance sheet this year by selling half of its bank insurance business to Zurich, with a capital gain of 512 million Euros.
Banco Sabadell will thus join Spanish financial institutions that have decided to sell off part of their real estate holdings, a trend Banco Santander started with BBVA, Banco Popular and Caixa Galicia following suit. Sphere: Related Content
Friday, November 14, 2008
Taylor Wimpey Pursuing £100m Sale Leaseback of 350 UK Show Homes
Property Week - November 14, 2008
Taylor Wimpey is to carry out a sale and leaseback of around 350 of its show homes in a bid to reduce debt and improve cashflow. The listed housebuilder plans to sell the UK-wide show home portfolio for between £70m and £100m and pay rental income to the buyer for up to three years. It is thought to have instructed King Sturge and last Wednesday sent details to selected institutional-type investors.
Taylor Wimpey needs working capital and access to the show homes, which have an average value of around £200,000, to market its developments. The buyer would gain a sizeable portfolio and a guaranteed three-year income stream without voids, and eventual ownership of 350 homes at a time when the housing market could be in recovery. It could provide investors with an initial yield of between 6% and 7%.
Packaging the homes up as a portfolio is thought to be an innovative way for Taylor Wimpey, led by chief executive Peter Redfearn, to reduce its £1.9bn debt burden. In an interim management statement on Tuesday, Taylor Wimpey said it was unlikely to agree a new debt package by January, when its covenants may be tested. Redfearn said Taylor Wimpey was ready to sell parts of its UK land banks or non-core parts of the business if necessary. The sale-and-leaseback plan would be one such option.
Taylor Wimpey is valued at around £142m, down from a high of £4.3bn last year. It has significantly reduced costs with 1,900 job cuts, land sales and a construction slowdown. Neil Batty, Knight Frank’s new homes investment head, said all housebuilders were looking at ways to extract value. Sphere: Related Content
Taylor Wimpey is to carry out a sale and leaseback of around 350 of its show homes in a bid to reduce debt and improve cashflow. The listed housebuilder plans to sell the UK-wide show home portfolio for between £70m and £100m and pay rental income to the buyer for up to three years. It is thought to have instructed King Sturge and last Wednesday sent details to selected institutional-type investors.
Taylor Wimpey needs working capital and access to the show homes, which have an average value of around £200,000, to market its developments. The buyer would gain a sizeable portfolio and a guaranteed three-year income stream without voids, and eventual ownership of 350 homes at a time when the housing market could be in recovery. It could provide investors with an initial yield of between 6% and 7%.
Packaging the homes up as a portfolio is thought to be an innovative way for Taylor Wimpey, led by chief executive Peter Redfearn, to reduce its £1.9bn debt burden. In an interim management statement on Tuesday, Taylor Wimpey said it was unlikely to agree a new debt package by January, when its covenants may be tested. Redfearn said Taylor Wimpey was ready to sell parts of its UK land banks or non-core parts of the business if necessary. The sale-and-leaseback plan would be one such option.
Taylor Wimpey is valued at around £142m, down from a high of £4.3bn last year. It has significantly reduced costs with 1,900 job cuts, land sales and a construction slowdown. Neil Batty, Knight Frank’s new homes investment head, said all housebuilders were looking at ways to extract value. Sphere: Related Content
Tuesday, November 11, 2008
Eroski Agrees to EUR 361 Million Sale Leaseback of 15 Hypermarkets in Spain
Property Week - November 5, 2009
Topland has agreed the purchase of a 15-strong retail portfolio with Spanish retailer Eroski in Spain’s biggest hypermarket sale and leaseback deal.
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year. Sphere: Related Content
Topland has agreed the purchase of a 15-strong retail portfolio with Spanish retailer Eroski in Spain’s biggest hypermarket sale and leaseback deal.
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year. Sphere: Related Content
Friday, November 07, 2008
Eroski Completes €361 Million Sale Leaseback of 15 Hypermarkets in Spain
Property Week - November 5, 2008
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year.
Cushman & Wakefield advised both parties. Sphere: Related Content
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year.
Cushman & Wakefield advised both parties. Sphere: Related Content
Sunday, November 02, 2008
British Land Selling Debenhams Flagship Store in London for £150 Million
Property Week - October 31, 2008
A Ukrainian investor is under offer to buy the British Land-owned Debenhams block in London’s West End for £150m.
It is thought the investor is the same Ukrainian company which recently purchased 1 Old Bond STreet for around £14m from Scottish Widows Investment Partnership in a deal reflecting a net initial yield of 3.9%.
The company approached British Land to buy the 366,700 sq ft building which occupies a prime position on London’s main shopping street and is the department store operator’s flagship store. It has been known for some time that British Land is seeking to reduce its in-town retail exposure.
British Land, the UK’s second-largest REIT, is an investor in 36 department stores, 24 owned directly and 12 owned within the British Land Fraser joint venture.
Of those owned directly, 22 are subject to leaseback to Debenhams for a minimum of 26 years unexpired. In total these comprise 3.3m sq ft in locations including the flagship London store, a 466,000 sq ft store on Market Street in Manchester, and a 140,000 sq ft store in St Davids, Cardiff.
The total gross annual rent passing is £30.3m. The leases provide for minimum 2.5% per annum rental increases and five-yearly open market reviews from 2019 onwards.
British Land declined to comment. Sphere: Related Content
A Ukrainian investor is under offer to buy the British Land-owned Debenhams block in London’s West End for £150m.
It is thought the investor is the same Ukrainian company which recently purchased 1 Old Bond STreet for around £14m from Scottish Widows Investment Partnership in a deal reflecting a net initial yield of 3.9%.
The company approached British Land to buy the 366,700 sq ft building which occupies a prime position on London’s main shopping street and is the department store operator’s flagship store. It has been known for some time that British Land is seeking to reduce its in-town retail exposure.
British Land, the UK’s second-largest REIT, is an investor in 36 department stores, 24 owned directly and 12 owned within the British Land Fraser joint venture.
Of those owned directly, 22 are subject to leaseback to Debenhams for a minimum of 26 years unexpired. In total these comprise 3.3m sq ft in locations including the flagship London store, a 466,000 sq ft store on Market Street in Manchester, and a 140,000 sq ft store in St Davids, Cardiff.
The total gross annual rent passing is £30.3m. The leases provide for minimum 2.5% per annum rental increases and five-yearly open market reviews from 2019 onwards.
British Land declined to comment. Sphere: Related Content
Saturday, October 18, 2008
Meavita Nederland Enters Sale Leaseback of 27 Health Care Properties in the Netherlands
PropertyEU - October 16, 2008
Dutch firm Green Real Estate has acquired 27 properties from healthcare organisation Meavita Nederland in a sale-and-leaseback transaction. The financial details were not disclosed.
Meavita Nederland disposed of the properties as it no longer views real estate ownership as a core activity. The portfolio comprises 14,000 m2 of lettable area and includes consultancy offices and medical centres in the north, centre and east of the Netherlands.
The healthcare division of property broker DTZ Zadelhoff acted for Green Real Estate. Ans de Wijn Bedrijfshuisvesting advised Meavita Nederland. Sphere: Related Content
Dutch firm Green Real Estate has acquired 27 properties from healthcare organisation Meavita Nederland in a sale-and-leaseback transaction. The financial details were not disclosed.
Meavita Nederland disposed of the properties as it no longer views real estate ownership as a core activity. The portfolio comprises 14,000 m2 of lettable area and includes consultancy offices and medical centres in the north, centre and east of the Netherlands.
The healthcare division of property broker DTZ Zadelhoff acted for Green Real Estate. Ans de Wijn Bedrijfshuisvesting advised Meavita Nederland. Sphere: Related Content
Wednesday, October 15, 2008
GM Seeking $500 Million Sale Leaseback of Detroit HQ
Commercial Property News - October 14, 2008
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund.
But GM may have trouble getting the first pension board to invest. Several pension board trustees told news groups that they considered it too big of a risk.
GM moved into the Renaissance Center, a seven-building complex in downtown Detroit in 1996. The automaker bought the complex for $75 million, and then borrowed $500 million against it for remodeling, according to a Detroit News story by Robert Snell. As reported May 9 by CPN, GM paid $626 million to take full control of the building.
John Blanchard, GM’s executive director of worldwide real estate, could not be reached by press time, but has stated this week that if the deal with the pension funds could not worked out, the auto giant would consider selling the Renaissance Center and leasing back space. He said the company is committed to staying in Detroit. The proposed refinancing comes as GM is trying to raise $15 billion to provide cash flow through 2010, according to published reports. Sphere: Related Content
Less than six months after it paid off its debt on its Detroit headquarters, struggling automaker General Motors is trying to refinance the Renaissance Center or arrange a sale-leaseback to raise about $500 billion.
GM officials recently appeared before the Detroit Police & Fire Retirement System Pension Fund board in an effort to get the board to agree to a $250 million collateralized revenue bond investment, according to a Detroit Free Press report. If that pension board agrees, GM would seek another $250 million from another city pension fund.
But GM may have trouble getting the first pension board to invest. Several pension board trustees told news groups that they considered it too big of a risk.
GM moved into the Renaissance Center, a seven-building complex in downtown Detroit in 1996. The automaker bought the complex for $75 million, and then borrowed $500 million against it for remodeling, according to a Detroit News story by Robert Snell. As reported May 9 by CPN, GM paid $626 million to take full control of the building.
John Blanchard, GM’s executive director of worldwide real estate, could not be reached by press time, but has stated this week that if the deal with the pension funds could not worked out, the auto giant would consider selling the Renaissance Center and leasing back space. He said the company is committed to staying in Detroit. The proposed refinancing comes as GM is trying to raise $15 billion to provide cash flow through 2010, according to published reports. Sphere: Related Content
Tuesday, September 30, 2008
Kesko Completes EUR 44 Million Sale Leaseback of 23 Stores in Finland
Kesko Web Site - September 30, 2008
The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros (a 6.2% initial yield) and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007. Sphere: Related Content
The Kesko Group, the Kesko Pension Fund and Valluga-Sijoitus Oy have today sold 23 of their store properties in different parts of Finland to Aberdeen Property Fund Finland 1 Ky. The selling price is about 56 million euros, of which the Kesko Group's share is about 44 million euros. The Kesko Group's gain on the sale is about 16 million euros, which will be treated as a non-recurring item in Kesko's third quarter operating profit.
All of the above premises have been leased back for use by Kesko's division parent companies mainly under 5 or 10-year leases with extension options. The total lease liability for the properties sold by the Kesko Group is approximately 27 million euros (a 6.2% initial yield) and is not classified as a finance lease.
Of all the 23 properties included in the sale 20 are used by K-food store chains, and two by the K-rauta and Rautia chains. The sale also includes Kesko's Northern Finland district centre property in Oulu. The sale will not change the stores' operations. The total area of the properties sold is about 50,000 m2, of which the Kesko Group's share is about 35,000 m2
The aim of the property disposal is to enhance the use of the Kesko Group capital. The proceeds from the sale will be used to strengthen the store network in Finland and abroad,
At 31 December 2007, Kesko owned 1.0 million m2 of properties and had 2.6 million m2 of properties on leasehold in Finland and other Nordic countries, the Baltic countries and Russia. Kesko's store site investments were 189 million euros in 2007. Sphere: Related Content
Monday, September 29, 2008
Pep Boys Completes $77.5 Million Sale Leaseback of 22 Auto Parts Stores
CoStar Group - September 24, 2008
Corporate Partners Capital Group Inc., a Los Angeles-based company that specializes in structuring purchase-leaseback transactions with corporations, acquired 22 properties in various locations across the United States from The Pep Boys Manny Moe & Jack of California and Wachovia Development Corp. The aggregate purchase price was $77.5 million, or approximately $177.50 per square foot, and had an estimated cap rate of 7.5%.
The 22-retail properties total 474,434 square feet. The buyer entered into agreements to lease the properties back to be operated as Pep Boys stores.
Howard Sands of Corporate Partners Capital Group Inc. represented the buyer in-house. Harry Yanowitz, Alexander Spooner and Joe Cireli of Pep Boys and John Altmeyer of Wachovia represented the sellers in-house. Sphere: Related Content
Corporate Partners Capital Group Inc., a Los Angeles-based company that specializes in structuring purchase-leaseback transactions with corporations, acquired 22 properties in various locations across the United States from The Pep Boys Manny Moe & Jack of California and Wachovia Development Corp. The aggregate purchase price was $77.5 million, or approximately $177.50 per square foot, and had an estimated cap rate of 7.5%.
The 22-retail properties total 474,434 square feet. The buyer entered into agreements to lease the properties back to be operated as Pep Boys stores.
Howard Sands of Corporate Partners Capital Group Inc. represented the buyer in-house. Harry Yanowitz, Alexander Spooner and Joe Cireli of Pep Boys and John Altmeyer of Wachovia represented the sellers in-house. Sphere: Related Content
Friday, September 26, 2008
Del Taco Completes $24 Million Sale Leaseback of 15 Store Restaurant Portfolio
Cityfeet / GlobeSt - September 24, 2008
A locally based group of investors in a 1031 exchange have acquired a 15-store portfolio from Del Taco restaurants in a sale-leaseback, according to Faris Lee Investments, which brokered the deal. The restaurants are located in Arizona, California and Nevada and were built between 1998 and 2002.
The buyer was Innovative Property Partners LLC, a group of investors based in Orange County, who were represented by Richard Walter and Dennis Vaccaro of Faris Lee, which is based in Irvine. Del Taco Corp., which represented itself in the transaction, executed 20-year absolute NNN leases with the buyer and will continue to operate the properties.
Del Taco was founded in 1961 and operates or franchisees more than 510 restaurants in 16 states. The company is based in the Orange County city of Lake Forest.
According to Walter, who is president of Faris Lee Investments, “Del Taco Corp. was interested in a quick sale of the properties, and we were able to close the sale in just 45 days, which also met the needs of the 1031 buyer.” Walter notes that closing on 15 different sites in three different states “required a great deal of work during the due diligence process” in order to close by the deadline and to meet the expectations of both the seller and the buyer.
Walter adds that Faris Lee Capital, the financing arm for Faris Lee, coordinated and placed the financing for the buyer, who was attracted to the long-term leases and well located properties. He notes that Faris Lee is seeking other sale-leaseback opportunities to match buyer needs with niche opportunities like this one." Sphere: Related Content
A locally based group of investors in a 1031 exchange have acquired a 15-store portfolio from Del Taco restaurants in a sale-leaseback, according to Faris Lee Investments, which brokered the deal. The restaurants are located in Arizona, California and Nevada and were built between 1998 and 2002.
The buyer was Innovative Property Partners LLC, a group of investors based in Orange County, who were represented by Richard Walter and Dennis Vaccaro of Faris Lee, which is based in Irvine. Del Taco Corp., which represented itself in the transaction, executed 20-year absolute NNN leases with the buyer and will continue to operate the properties.
Del Taco was founded in 1961 and operates or franchisees more than 510 restaurants in 16 states. The company is based in the Orange County city of Lake Forest.
According to Walter, who is president of Faris Lee Investments, “Del Taco Corp. was interested in a quick sale of the properties, and we were able to close the sale in just 45 days, which also met the needs of the 1031 buyer.” Walter notes that closing on 15 different sites in three different states “required a great deal of work during the due diligence process” in order to close by the deadline and to meet the expectations of both the seller and the buyer.
Walter adds that Faris Lee Capital, the financing arm for Faris Lee, coordinated and placed the financing for the buyer, who was attracted to the long-term leases and well located properties. He notes that Faris Lee is seeking other sale-leaseback opportunities to match buyer needs with niche opportunities like this one." Sphere: Related Content
Wednesday, September 17, 2008
Citibank Seeking Sale Leaseback of 18 Bay Area Bank Branches
Silicon Valley / San Jose Business Journal - September 15, 2008
Citibank, the retail banking operation of financial services giant Citigroup Inc., has put 18 Bay Area branch locations on the market.
The locations for sale -- which include sites in Burlingame, San Mateo, Los Altos, Palo Alto, San Jose, Santa Clara and Sunnyvale -- are exceptional, said retail broker Don Tepman.
“Most, if not all, of these properties are very well located and I consider them to be among the Bay Area’s top real estate sites for retail,” Tepman said. “Rarely do we see product of this quality with such strong credit tenant backing.”
Citibank is offering to sell the locations and to sign 10-year leases plus options, according to an offering document. The company is promising annual 3 percent rent increases. The sites are for sale individually and en masse.
Citi has retained CB Richard Ellis to handle the offering. Sphere: Related Content
Citibank, the retail banking operation of financial services giant Citigroup Inc., has put 18 Bay Area branch locations on the market.
The locations for sale -- which include sites in Burlingame, San Mateo, Los Altos, Palo Alto, San Jose, Santa Clara and Sunnyvale -- are exceptional, said retail broker Don Tepman.
“Most, if not all, of these properties are very well located and I consider them to be among the Bay Area’s top real estate sites for retail,” Tepman said. “Rarely do we see product of this quality with such strong credit tenant backing.”
Citibank is offering to sell the locations and to sign 10-year leases plus options, according to an offering document. The company is promising annual 3 percent rent increases. The sites are for sale individually and en masse.
Citi has retained CB Richard Ellis to handle the offering. Sphere: Related Content
Sunday, September 14, 2008
State of California Enters 20 Year Lease for Highway Patrol HQ in Sacramento
GlobeSt.com - September 12, 2008
The state has inked a 20-year lease for a 285,000-sf, three-building low-rise campus here on behalf of the California Highway Patrol. Known as Continental Plaza, the buildings will be used to consolidate CHP’s administrative functions, which are now spread among several buildings in the Sacramento area. The law enforcement agency is slated to fill its new headquarters with 1,000 employees next September.
The state’s lease rate starts at $2.44 per sf per month, fully serviced with the exception of utilities, an information office with the state Department of General Services tells GlobeSt.com. The lease agreement includes a $41-million ($144 per-sf) tenant improvement allowance, annual rental rate bumps (approximately 1.5%) and a purchase option that may be exercised at the end of either year 10 or year 20. If exercised at year 10, the purchase price would be based on a 7% cap rate on the property’s NOI for year 11, according to DGS. If exercised at the end of the lease term, the purchase price would be based on a 7% cap rate on the NOI rent from year 19. If the state pays rent for 20 years, it would pay the property owner $193 million, according to DGS.
“The fact that Continental Plaza was an existing facility offered many benefits, including cost savings to the agency, an accelerated occupancy schedule and the reuse of an existing structure, [which is] part of the state’s ‘green’ strategy,” Newland says. Per state requirements, all three buildings will be renovated with the goal of receiving a LEED-NC-Silver certification from the US Green Building Council.
The property owner is Grove Investment Co. of Newport Beach, CA. Grubb & Ellis brokers Bill Newland, Clyde Rawlings and Toss Vallentine represented the building owner in the transaction. Cornish & Carey represented the state. Sphere: Related Content
The state has inked a 20-year lease for a 285,000-sf, three-building low-rise campus here on behalf of the California Highway Patrol. Known as Continental Plaza, the buildings will be used to consolidate CHP’s administrative functions, which are now spread among several buildings in the Sacramento area. The law enforcement agency is slated to fill its new headquarters with 1,000 employees next September.
The state’s lease rate starts at $2.44 per sf per month, fully serviced with the exception of utilities, an information office with the state Department of General Services tells GlobeSt.com. The lease agreement includes a $41-million ($144 per-sf) tenant improvement allowance, annual rental rate bumps (approximately 1.5%) and a purchase option that may be exercised at the end of either year 10 or year 20. If exercised at year 10, the purchase price would be based on a 7% cap rate on the property’s NOI for year 11, according to DGS. If exercised at the end of the lease term, the purchase price would be based on a 7% cap rate on the NOI rent from year 19. If the state pays rent for 20 years, it would pay the property owner $193 million, according to DGS.
“The fact that Continental Plaza was an existing facility offered many benefits, including cost savings to the agency, an accelerated occupancy schedule and the reuse of an existing structure, [which is] part of the state’s ‘green’ strategy,” Newland says. Per state requirements, all three buildings will be renovated with the goal of receiving a LEED-NC-Silver certification from the US Green Building Council.
The property owner is Grove Investment Co. of Newport Beach, CA. Grubb & Ellis brokers Bill Newland, Clyde Rawlings and Toss Vallentine represented the building owner in the transaction. Cornish & Carey represented the state. Sphere: Related Content
Thursday, September 11, 2008
Norske Skog Completes $75 Million Sale Leaseback of HQ in Norway
Reuters - September 9, 2008
Norwegian papermaker Norske Skog (NSG.OL) has sold its headquarters for 429.5 million Norwegian crowns ($75.76 million) and will book a gain of 230 million in the fourth quarter from the property sale, it said on Tuesday.
'The sale of the property is part of the work efforts to reduce Norske Skog's debts,' the company said in a statement.
Norske Skog simultaneously signed a lease agreement on the Oxenoen property in Lysaker with the new owners, Aspelin Ramm and Oslo housing and savings society OBOS, enabling it to stay in the building for some time, the company said. Sphere: Related Content
Norwegian papermaker Norske Skog (NSG.OL) has sold its headquarters for 429.5 million Norwegian crowns ($75.76 million) and will book a gain of 230 million in the fourth quarter from the property sale, it said on Tuesday.
'The sale of the property is part of the work efforts to reduce Norske Skog's debts,' the company said in a statement.
Norske Skog simultaneously signed a lease agreement on the Oxenoen property in Lysaker with the new owners, Aspelin Ramm and Oslo housing and savings society OBOS, enabling it to stay in the building for some time, the company said. Sphere: Related Content
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