PropertyEU - May 25, 2009
Mikeva has sold seven residential care properties to Ilmarinen Mutual Pension Insurance Company in a sale-and-leaseback transaction for an undisclosed amount. The care homes are located in Kaskinen, Kotka, Vaasa, Teuva, Oulu and Haukipudas.
Mikeva is one of the largest social care services providers in Finland with over 600 end-customers. All properties are under development and will be completed within the coming two years. The first of these properties will be completed in May 2009 in Kaskinen. Mikeva has signed long-term lease agreements with all the properties.
The total leasable area of the properties is approximately 13,500 m² accommodating approximately 300 customers when completed. The care homes offer residential services for mental health patients and the elderly.
Leimdörfer acted as financial adviser to Mikeva in the transaction.
Sphere: Related Content
Wednesday, May 27, 2009
Monday, May 18, 2009
Pfizer Completes Sale Leaseback of Industrial Facility in Germany
PropertyEU - May 14, 2009
German property investors Harder and Partners have bought pharmaceuticals firm Pfizer's premises in Karlsruhe for an undisclosed amount as part of a sale-and-leaseback deal which includes 200,000 m2 of industrial space and 90,000 m2 of derelict land. Pfizer will lease back the buildings and distribution space for an unspecified period.
The Pfizer site is located in the Hagsfeld industrial area of Karlsruhe. Sphere: Related Content
German property investors Harder and Partners have bought pharmaceuticals firm Pfizer's premises in Karlsruhe for an undisclosed amount as part of a sale-and-leaseback deal which includes 200,000 m2 of industrial space and 90,000 m2 of derelict land. Pfizer will lease back the buildings and distribution space for an unspecified period.
The Pfizer site is located in the Hagsfeld industrial area of Karlsruhe. Sphere: Related Content
NH Hotels Seeking EUR 300 Million Sale Leaseback of Hotel Portfolio
PropertyEU - May 15, 2009
Spanish hotel group NH Hoteles has unveiled plans to sell EUR 300 mln worth of hotel properties after its loss widened in the first quarter of 2009 to EUR 39.2 mln. The properties will continue to be operated through a sale-and-leaseback agreement or a management contract. The company also said it will seek to raise EUR 197 mln of fresh capital through the issue of 99 million of new shares with a value of EUR 2 per share.
The company currently owns 349 hotels across 22 countries worldwide and an additional 55 in its development pipeline. It has debt of around EUR 700 mln. Sphere: Related Content
Spanish hotel group NH Hoteles has unveiled plans to sell EUR 300 mln worth of hotel properties after its loss widened in the first quarter of 2009 to EUR 39.2 mln. The properties will continue to be operated through a sale-and-leaseback agreement or a management contract. The company also said it will seek to raise EUR 197 mln of fresh capital through the issue of 99 million of new shares with a value of EUR 2 per share.
The company currently owns 349 hotels across 22 countries worldwide and an additional 55 in its development pipeline. It has debt of around EUR 700 mln. Sphere: Related Content
Saturday, May 16, 2009
Caixa Catalunya Agrees to EUR 183 Million Sale Leaseback of 146 Bank Branches Across Spain
PropertyEU - May 14, 2009
Spanish bank Caixa Catalunya has sold 146 bank branches and office buildings across Spain to a number of investors including family-owned investment groups. The bank will lease the assets back for a rental term of 20 years, and retains an option to buy back the assets after this period. Caixa Catalunya said it is making a profit of some EUR 54 mln on the deal, which totals EUR 183 mln.
The crown jewel of the bank's portfolio, its Recoletos head office in Madrid, was sold to Spanish investor Via Celere for EUR 16 mln. The lender has a network of over 1,200 branches across Spain and hopes to sell off another 800 properties through a similar sale-and-leaseback deal in the coming months. Sphere: Related Content
Spanish bank Caixa Catalunya has sold 146 bank branches and office buildings across Spain to a number of investors including family-owned investment groups. The bank will lease the assets back for a rental term of 20 years, and retains an option to buy back the assets after this period. Caixa Catalunya said it is making a profit of some EUR 54 mln on the deal, which totals EUR 183 mln.
The crown jewel of the bank's portfolio, its Recoletos head office in Madrid, was sold to Spanish investor Via Celere for EUR 16 mln. The lender has a network of over 1,200 branches across Spain and hopes to sell off another 800 properties through a similar sale-and-leaseback deal in the coming months. Sphere: Related Content
Friday, May 15, 2009
Sale Leasebacks Brew Anew
Wall Street Journal - May 13, 2009
Corporate sale-and-lease-back deals came to a virtual halt in Europe in the first quarter as property investment dried up, but signs of life may be emerging as cash-strapped companies look for new sources of financing.
Renault SA, the French car maker, is exploring the potential sale of property it owns and which is reported to be valued at as much as €1 billion ($1.36 billion). Eroski, a cooperative retail chain with more than 1,000 stores across Spain, is exploring the sale of as many as 150 supermarkets that could generate proceeds of as much as €300 million, according to people familiar with the matter.
"We are considering selling offices and commercial property as a sale-and-lease-back," says Renault spokeswoman Gita Roux. "Interest rates are high and it's hard to get credit, so property sales are part of a broader plan to improve our cash flow."
Ms. Roux wouldn't comment on how much Renault expects to raise through property sales, saying it depended on the price the company could achieve in the market.
Eroski is being advised by Cushman & Wakefield; neither Cushman nor Eroski would comment.
In a sale-and-lease-back arrangement the owner of a property -- typically a corporation or a government agency -- sells the property it is occupying and leases it back, usually on a long lease of 20 years or more. The advantage for the company selling is that it gets cash that it can reinvest in its business or use to lower debt, can stay in the property, and doesn't have to pay the money back.
As the recession grinds on and debt remains expensive and hard to come by, companies are again considering using their property to raise cash. But deals have been hard to do because of the lack of debt financing and the gap between what sellers hope to gain from a sale and what buyers are willing to pay.
Now, that buyer-seller gap is narrowing and there is also a greater willingness on the part of some buyers to pay with cash now with the hope of raising debt later.
One such buyer is W.P. Carey & Co., a New York investment group that in April paid cash for the space that New York Times Co. owns in its headquarters in midtown Manhattan. W.P. Carey is prepared to do similar all-cash deals in Europe.
"We're doing deals, but there is a premium to that because we're taking on the risk, hoping that we will later be able to get mortgage financing," says Edward LaPuma, head of W.P. Carey's international business.
In Europe, advisers on sale-and-lease-back transactions say chief financial officers from London to Lisbon have been comparing the costs of raising finance through issuing new shares, bonds or by turning their own property into cash.
With stock prices down, share issuance is expensive because investors, fearing stocks could keep falling, are demanding hefty discounts.
Bonds are costly because yield premiums over government paper have widened over the past year, and investors are shying away from corporate debt from all but the highest investment-grade issuers. Banks that used to issue mortgages with just 20% equity are now demanding as much 45%.
"If you're considering a sale-and-lease-back, it's not about where we are in the real-estate cycle," says Matthew Stone, head of occupier strategies for Europe, Middle East and Africa for Cushman & Wakefield. "It's about the need to raise capital and finding the least expensive way to do it."
A number of large deals were done last year. Caixa Galicia sold a portfolio valued at €250 million, said property consultants CB Richard Ellis. Banco Popular sold buildings in Madrid and Barcelona, raising €127 million. Banco Santander raised €4.4 billion with the sale of its Madrid headquarters, 1,152 branches and 10 individual buildings, and French bank BNP Paribas sold its Paris headquarters for €250 million.
With property investment down sharply, sale-and-lease-back deals screeched to a halt this year. But advisers are saying momentum could resume in the next few months.
CB Richard Ellis has deals in the works valued at more than €4.1 billion with clients in financial services, manufacturing, pharmaceuticals, research and development and technology, and retail, says John Wilson, executive director of corporate services. That compares to about €3 billion during the same period last year, he says.
There is a flip side to the sale-and-lease-back scenario. Low property prices create an opportunity for companies or public administrations that have enough cash on hand to buy the buildings they occupy from cash-strapped landlords.
In December, London's Metropolitan Police bought New Scotland Yard from the British REIT Land Securities PLC. And in April, British Land Co. sold an office building on 2-3 Triton Square in London to the building's main tenant, Abbey National PLC.
"We are talking to a number of large corporations seeking to buy their buildings," says Matthew Richards, director of corporate capital markets at Jones Lang LaSalle in London. Sphere: Related Content
Corporate sale-and-lease-back deals came to a virtual halt in Europe in the first quarter as property investment dried up, but signs of life may be emerging as cash-strapped companies look for new sources of financing.
Renault SA, the French car maker, is exploring the potential sale of property it owns and which is reported to be valued at as much as €1 billion ($1.36 billion). Eroski, a cooperative retail chain with more than 1,000 stores across Spain, is exploring the sale of as many as 150 supermarkets that could generate proceeds of as much as €300 million, according to people familiar with the matter.
"We are considering selling offices and commercial property as a sale-and-lease-back," says Renault spokeswoman Gita Roux. "Interest rates are high and it's hard to get credit, so property sales are part of a broader plan to improve our cash flow."
Ms. Roux wouldn't comment on how much Renault expects to raise through property sales, saying it depended on the price the company could achieve in the market.
Eroski is being advised by Cushman & Wakefield; neither Cushman nor Eroski would comment.
In a sale-and-lease-back arrangement the owner of a property -- typically a corporation or a government agency -- sells the property it is occupying and leases it back, usually on a long lease of 20 years or more. The advantage for the company selling is that it gets cash that it can reinvest in its business or use to lower debt, can stay in the property, and doesn't have to pay the money back.
As the recession grinds on and debt remains expensive and hard to come by, companies are again considering using their property to raise cash. But deals have been hard to do because of the lack of debt financing and the gap between what sellers hope to gain from a sale and what buyers are willing to pay.
Now, that buyer-seller gap is narrowing and there is also a greater willingness on the part of some buyers to pay with cash now with the hope of raising debt later.
One such buyer is W.P. Carey & Co., a New York investment group that in April paid cash for the space that New York Times Co. owns in its headquarters in midtown Manhattan. W.P. Carey is prepared to do similar all-cash deals in Europe.
"We're doing deals, but there is a premium to that because we're taking on the risk, hoping that we will later be able to get mortgage financing," says Edward LaPuma, head of W.P. Carey's international business.
In Europe, advisers on sale-and-lease-back transactions say chief financial officers from London to Lisbon have been comparing the costs of raising finance through issuing new shares, bonds or by turning their own property into cash.
With stock prices down, share issuance is expensive because investors, fearing stocks could keep falling, are demanding hefty discounts.
Bonds are costly because yield premiums over government paper have widened over the past year, and investors are shying away from corporate debt from all but the highest investment-grade issuers. Banks that used to issue mortgages with just 20% equity are now demanding as much 45%.
"If you're considering a sale-and-lease-back, it's not about where we are in the real-estate cycle," says Matthew Stone, head of occupier strategies for Europe, Middle East and Africa for Cushman & Wakefield. "It's about the need to raise capital and finding the least expensive way to do it."
A number of large deals were done last year. Caixa Galicia sold a portfolio valued at €250 million, said property consultants CB Richard Ellis. Banco Popular sold buildings in Madrid and Barcelona, raising €127 million. Banco Santander raised €4.4 billion with the sale of its Madrid headquarters, 1,152 branches and 10 individual buildings, and French bank BNP Paribas sold its Paris headquarters for €250 million.
With property investment down sharply, sale-and-lease-back deals screeched to a halt this year. But advisers are saying momentum could resume in the next few months.
CB Richard Ellis has deals in the works valued at more than €4.1 billion with clients in financial services, manufacturing, pharmaceuticals, research and development and technology, and retail, says John Wilson, executive director of corporate services. That compares to about €3 billion during the same period last year, he says.
There is a flip side to the sale-and-lease-back scenario. Low property prices create an opportunity for companies or public administrations that have enough cash on hand to buy the buildings they occupy from cash-strapped landlords.
In December, London's Metropolitan Police bought New Scotland Yard from the British REIT Land Securities PLC. And in April, British Land Co. sold an office building on 2-3 Triton Square in London to the building's main tenant, Abbey National PLC.
"We are talking to a number of large corporations seeking to buy their buildings," says Matthew Richards, director of corporate capital markets at Jones Lang LaSalle in London. Sphere: Related Content
Monday, May 11, 2009
Eroski Seeking EUR 300 Million Sale Leaseback of Supermarkets Across Spain
Property Week - May 8, 2009
Spanish retailer prepares sale and leaseback of up to 150 supermarkets.
Eroski is preparing to sell and lease back between 100 and 150 supermarkets, which could net the Spanish retailer more than €300m.
The supermarket operator is approaching a range of investors about the portfolio, which consists of ‘urban supermarkets’ in Spanish city centres.
It is thought that the portfolio, which does not include any hypermarkets, could be broken up into smaller lot sizes, which would be easier to finance and could attract a variety of buyers such as institutional and private investors.
The final lease terms that Eroski will offer to investors are likely to be long institutionally-friendly leases of between 20 and 25 years.
Large sale and leasebacks are becoming increasingly common in Spain as occupiers try to release equity from their property portfolio to create cash pools to carry out corporate acquisitions.
Eroski in particular is thought to be keen to raise cash to reduce its debt levels after the purchase of the Caprabo supermarket chain in 2007.
It also wants to raise funds in readiness of future acquisitions as it seeks to increase its market share in Spain. It is already one of the top three hypermarket operators in the country and the number one supermarket operator in the Catalunya region.
Any potential transaction with Eroski would be structured as a straight sale and leaseback rather than a joint venture partnership.
It already has one joint venture partnership with Sol Zakay’s Topland, which in November last year bought a 15-strong retail portfolio from Eroski in Spain’s biggest hypermarket sale-and-leaseback transaction. Eroski signed 25-year leases with fixed rental increases.
Topland paid €361m – a yield of around 6% – for the portfolio, comprising 13 hypermarkets and two shopping centres in the Basque area of Spain. It provided equity for 30% of the first purchase and the remaining 70% comes from a consortium of banks: La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
The transaction with Topland was structured as the first phase of a potential three-part sale-and-leaseback agreement between the two parties, in which Topland would buy more than 50 Eroski properties.
Spain’s property market, which has been badly hit by the global financial crisis, has experienced a rapid repricing similar to that in the UK and is attracting investors who want to buy at the bottom of the market.
Cushman & Wakefield advised Eroski on its transaction with Topland and it is thought that Cushman has now been instructed to act for Eroski on an exclusive mandate.
All parties declined to comment. Sphere: Related Content
Spanish retailer prepares sale and leaseback of up to 150 supermarkets.
Eroski is preparing to sell and lease back between 100 and 150 supermarkets, which could net the Spanish retailer more than €300m.
The supermarket operator is approaching a range of investors about the portfolio, which consists of ‘urban supermarkets’ in Spanish city centres.
It is thought that the portfolio, which does not include any hypermarkets, could be broken up into smaller lot sizes, which would be easier to finance and could attract a variety of buyers such as institutional and private investors.
The final lease terms that Eroski will offer to investors are likely to be long institutionally-friendly leases of between 20 and 25 years.
Large sale and leasebacks are becoming increasingly common in Spain as occupiers try to release equity from their property portfolio to create cash pools to carry out corporate acquisitions.
Eroski in particular is thought to be keen to raise cash to reduce its debt levels after the purchase of the Caprabo supermarket chain in 2007.
It also wants to raise funds in readiness of future acquisitions as it seeks to increase its market share in Spain. It is already one of the top three hypermarket operators in the country and the number one supermarket operator in the Catalunya region.
Any potential transaction with Eroski would be structured as a straight sale and leaseback rather than a joint venture partnership.
It already has one joint venture partnership with Sol Zakay’s Topland, which in November last year bought a 15-strong retail portfolio from Eroski in Spain’s biggest hypermarket sale-and-leaseback transaction. Eroski signed 25-year leases with fixed rental increases.
Topland paid €361m – a yield of around 6% – for the portfolio, comprising 13 hypermarkets and two shopping centres in the Basque area of Spain. It provided equity for 30% of the first purchase and the remaining 70% comes from a consortium of banks: La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
The transaction with Topland was structured as the first phase of a potential three-part sale-and-leaseback agreement between the two parties, in which Topland would buy more than 50 Eroski properties.
Spain’s property market, which has been badly hit by the global financial crisis, has experienced a rapid repricing similar to that in the UK and is attracting investors who want to buy at the bottom of the market.
Cushman & Wakefield advised Eroski on its transaction with Topland and it is thought that Cushman has now been instructed to act for Eroski on an exclusive mandate.
All parties declined to comment. Sphere: Related Content
Sunday, May 10, 2009
Carrefour Seeking £1 Billion in Several Retail Store Sale Leaseback Transactions
Property Week - May 8, 2009
French supermarket giant Carrefour is preparing to sell a significant part of its property portfolio as it goes into expansion mode.
Carrefour Property, which controls nearly two-thirds of the retailer’s €14bn property portfolio, is preparing to sell properties in €200m and €500m lot sizes. The retailer said it would aim to sell the properties to investors in a long-term sale-and-leaseback transaction.
Carrefour has historically raised equity from its property portfolio and in 2008 planned to list its property arm on the stock exchange as a separate entity but plans were abandoned because of the downturn.
Sources said Carrefour is looking to raise at least €1bn from the strategy.
It is thought that Carrefour investors Colony Capital and Groupe Arnault are supportive of the plans. Sphere: Related Content
French supermarket giant Carrefour is preparing to sell a significant part of its property portfolio as it goes into expansion mode.
Carrefour Property, which controls nearly two-thirds of the retailer’s €14bn property portfolio, is preparing to sell properties in €200m and €500m lot sizes. The retailer said it would aim to sell the properties to investors in a long-term sale-and-leaseback transaction.
Carrefour has historically raised equity from its property portfolio and in 2008 planned to list its property arm on the stock exchange as a separate entity but plans were abandoned because of the downturn.
Sources said Carrefour is looking to raise at least €1bn from the strategy.
It is thought that Carrefour investors Colony Capital and Groupe Arnault are supportive of the plans. Sphere: Related Content
Friday, May 08, 2009
Credit Suisse Seeking £147 Million Sale Leaseback of Canary Wharf Tower
Property Week - May 6, 2009
Credit Suisse has instructed CB Richard Ellis to market the sale and leaseback of 20 Columbus Courtyard in Canary Wharf with a price tag of around £147m.
This equates to a yield of 6.25%, or around £37.50/sq ft. It will rent the building back for 25 years with an annual Retail Prices Index-linked rent, set with a ‘cap and collar’ of 4% and 1.5%. Sphere: Related Content
Credit Suisse has instructed CB Richard Ellis to market the sale and leaseback of 20 Columbus Courtyard in Canary Wharf with a price tag of around £147m.
This equates to a yield of 6.25%, or around £37.50/sq ft. It will rent the building back for 25 years with an annual Retail Prices Index-linked rent, set with a ‘cap and collar’ of 4% and 1.5%. Sphere: Related Content
Saturday, May 02, 2009
YRC Negotiates $351 Million Sale Leaseback of Trucking Facilities Across US
CoStar Group - April 29, 2009
YRC Inc. and USF Reddaway Inc., subsidiaries of YRC Worldwide Inc., continue to shed their ownership in trucking facilities across the country.
The two trucking transportation groups entered into another real estate sales contract with Estes Express Lines to sell and simultaneously lease back more trucking facilities throughout the United States.
The aggregate purchase price for the subject facilities is $32 million and initial annual lease payments would be $2.9 million in total.
The new Estes contracts are in addition to similar deals struck earlier this year for $122 million.
Separately, YRC, USF Holland Inc. and New Penn Motor Express Inc., also each YRC Worldwide subsidiaries agreed to sell and leaseback additional facilities to unidentified investors. The aggregate purchase price is $70 million and initial annual lease payments to be $6.1 million in total.
Both deals include a few facilities that were originally a part of another transaction with a different buyer.
Previously YRC and USF Reddaway also struck a deal to sell and leaseback facilities with NATMI Truck Terminals LLC. That deal was amended so that deals could be struck with the latest buyers. Originally to total $150.4 million, the amended deal will total $127 million, of which $111 million in deals closed in the first quarter of 2009.
The company expects to close on all of the new and remaining deals this quarter. Sphere: Related Content
YRC Inc. and USF Reddaway Inc., subsidiaries of YRC Worldwide Inc., continue to shed their ownership in trucking facilities across the country.
The two trucking transportation groups entered into another real estate sales contract with Estes Express Lines to sell and simultaneously lease back more trucking facilities throughout the United States.
The aggregate purchase price for the subject facilities is $32 million and initial annual lease payments would be $2.9 million in total.
The new Estes contracts are in addition to similar deals struck earlier this year for $122 million.
Separately, YRC, USF Holland Inc. and New Penn Motor Express Inc., also each YRC Worldwide subsidiaries agreed to sell and leaseback additional facilities to unidentified investors. The aggregate purchase price is $70 million and initial annual lease payments to be $6.1 million in total.
Both deals include a few facilities that were originally a part of another transaction with a different buyer.
Previously YRC and USF Reddaway also struck a deal to sell and leaseback facilities with NATMI Truck Terminals LLC. That deal was amended so that deals could be struck with the latest buyers. Originally to total $150.4 million, the amended deal will total $127 million, of which $111 million in deals closed in the first quarter of 2009.
The company expects to close on all of the new and remaining deals this quarter. Sphere: Related Content
Experian Agrees to $27 Million Sale Leaseback Office Building Near Chicago
Crain's Chicago Real Estate Daily - April 29, 2009
A New York investment firm has a contract to buy a northwest suburban office building from Experian PLC in a roughly $27-million sale/leaseback deal, in a bid by the credit reporting agency to raise cash and cut costs.
Credit reporting agency Experian has a contract to sell and lease back this building in Schaumburg.
The transaction could be one of the few deals to close this year in the suburban office market, which has come to nearly a standstill because of banks' tighter lending standards, sellers' reluctance to cut prices and buyers' concern about rising vacancy rates.
Experian owns a two-building complex totaling 296,000 square feet at 955 American Lane in Schaumburg. The company, which is advised by real estate firm Jones Lang LaSalle Inc., has agreed to sell the larger of the two structures, an 189,000-square-foot building called the East Building, to U.S. Realty Advisors LLC, according to sources familiar with the transaction.
U.S. Realty last month formed a company called XP Property LLC, to hold title to the building, Illinois corporate records show. The price is about $27 million or $28 million, sources say. Experian has agreed to sign a long-term lease for the building, which was built in 1999, sources say.
Experian’s strong financial performance may have made the transaction attractive to U.S. Realty, a low-profile firm that specializes in single-tenant properties. Dublin, Ireland-based Experian’s revenue rose 18.6% to $4.1 billion during the fiscal year ending March 31, 2008, compared to the previous year. North America accounted for about half of the company’s revenue.
Jack Genende, U.S. Realty’s chief financial officer, and Grant Freeman, managing director in Jones Lang’s corporate capital markets group who is based in Southern California, declined to comment. A Schaumburg-based spokesman for Experian also declined to comment.
Meanwhile, the company is looking for tenants to lease space in its West Building, a 107,000-square-foot structure built in 1985, according to real estate data provider CoStar Group Inc. Experian plans to vacate that building. Sphere: Related Content
A New York investment firm has a contract to buy a northwest suburban office building from Experian PLC in a roughly $27-million sale/leaseback deal, in a bid by the credit reporting agency to raise cash and cut costs.
Credit reporting agency Experian has a contract to sell and lease back this building in Schaumburg.
The transaction could be one of the few deals to close this year in the suburban office market, which has come to nearly a standstill because of banks' tighter lending standards, sellers' reluctance to cut prices and buyers' concern about rising vacancy rates.
Experian owns a two-building complex totaling 296,000 square feet at 955 American Lane in Schaumburg. The company, which is advised by real estate firm Jones Lang LaSalle Inc., has agreed to sell the larger of the two structures, an 189,000-square-foot building called the East Building, to U.S. Realty Advisors LLC, according to sources familiar with the transaction.
U.S. Realty last month formed a company called XP Property LLC, to hold title to the building, Illinois corporate records show. The price is about $27 million or $28 million, sources say. Experian has agreed to sign a long-term lease for the building, which was built in 1999, sources say.
Experian’s strong financial performance may have made the transaction attractive to U.S. Realty, a low-profile firm that specializes in single-tenant properties. Dublin, Ireland-based Experian’s revenue rose 18.6% to $4.1 billion during the fiscal year ending March 31, 2008, compared to the previous year. North America accounted for about half of the company’s revenue.
Jack Genende, U.S. Realty’s chief financial officer, and Grant Freeman, managing director in Jones Lang’s corporate capital markets group who is based in Southern California, declined to comment. A Schaumburg-based spokesman for Experian also declined to comment.
Meanwhile, the company is looking for tenants to lease space in its West Building, a 107,000-square-foot structure built in 1985, according to real estate data provider CoStar Group Inc. Experian plans to vacate that building. Sphere: Related Content
Friday, May 01, 2009
Burlington Coat Factory Seeking Sale Leaseback of Nine Stores Across US
Jones Lang LaSalle Web Site - April 28, 2009
Jones Lang LaSalle is currently marketing a 715,000-square-foot portfolio of retail assets for sale and leaseback by Burlington Coat Factory. Burlington Coat Factory will leaseback the nine properties, located in some of the strongest retail markets in the United States, for a minimum of 15 years. The properties are available for purchase either individually or as a portfolio.
Leading the Jones Lang LaSalle team on this assignment is Managing Director Bruce Westwood-Booth and Vice President Ben Herrig.
“These assets are strategically located in the strongest retail real estate markets in the country, and should appeal to a wide scope of national and international investors seeking to purchase well-established, high-quality retail locations providing long-term cash flow,” said Mr. Westwood-Booth.
This portfolio of nine retail assets includes a mix of regional mall anchor locations, power center/neighborhood anchor sites and stand alone stores. They are located in Chicago, Los Angeles, Houston, Broward County, Northern New Jersey, Boston, Orlando and two locations in and around Phoenix. Burlington Coat Factory plans to enter into 15-year, absolute triple-net leases with two percent annual escalations at each location. All of the stores have been updated or renovated within the past few years and are strong performers for the company. Sphere: Related Content
Jones Lang LaSalle is currently marketing a 715,000-square-foot portfolio of retail assets for sale and leaseback by Burlington Coat Factory. Burlington Coat Factory will leaseback the nine properties, located in some of the strongest retail markets in the United States, for a minimum of 15 years. The properties are available for purchase either individually or as a portfolio.
Leading the Jones Lang LaSalle team on this assignment is Managing Director Bruce Westwood-Booth and Vice President Ben Herrig.
“These assets are strategically located in the strongest retail real estate markets in the country, and should appeal to a wide scope of national and international investors seeking to purchase well-established, high-quality retail locations providing long-term cash flow,” said Mr. Westwood-Booth.
This portfolio of nine retail assets includes a mix of regional mall anchor locations, power center/neighborhood anchor sites and stand alone stores. They are located in Chicago, Los Angeles, Houston, Broward County, Northern New Jersey, Boston, Orlando and two locations in and around Phoenix. Burlington Coat Factory plans to enter into 15-year, absolute triple-net leases with two percent annual escalations at each location. All of the stores have been updated or renovated within the past few years and are strong performers for the company. Sphere: Related Content
Friday, April 17, 2009
Macaroni Grill Completes Sale Leaseback of 39 Restaurants
CoStar Group - April 15, 2009
In mid-December 2008, Dallas-based Cardinal Capital Partners, together with New York City-based Fortress Credit Corporation emerged as the buyer of a single-tenant portfolio of 39 Macaroni Grill restaurants, which are net leased for 20 years to Macaroni Grill's new private equity owner, Golden Gate Capital. The Cardinal-Fortress team specializes in corporate sale-leaseback transactions. In July 2008, the duo completed a sale-leaseback transaction with the new owner of Applebee's, acquiring 181 restaurants for $303 million. Sphere: Related Content
In mid-December 2008, Dallas-based Cardinal Capital Partners, together with New York City-based Fortress Credit Corporation emerged as the buyer of a single-tenant portfolio of 39 Macaroni Grill restaurants, which are net leased for 20 years to Macaroni Grill's new private equity owner, Golden Gate Capital. The Cardinal-Fortress team specializes in corporate sale-leaseback transactions. In July 2008, the duo completed a sale-leaseback transaction with the new owner of Applebee's, acquiring 181 restaurants for $303 million. Sphere: Related Content
Wednesday, April 15, 2009
HSBC Mulls $4 Billion Sale Leaseback of Properties in New York, London and Paris
Bloomberg - April 12, 2009
HSBC Holdings Plc, Europe’s biggest bank, may sell three of its landmark office buildings, including the Canary Wharf world headquarters in London, to raise cash as it tries to avoid a bailout from the British government.
HSBC is gauging interest in its 45-story tower at 8 Canada Square in London, its Fifth Avenue skyscraper in New York, and its Paris offices on the Avenue des Champs Elysees, said Ruth Lavelle, a London-based spokeswoman for HSBC. The Sunday Times of London reported the potential sales earlier today at a combined asking price of 2.7 billion pounds ($3.96 billion). The newspaper didn’t include the source of its information and Lavelle, in an e-mail, said she couldn’t confirm a price.
The London-based bank is seeking to sell at a time when financing for commercial real estate is difficult and values are falling. In New York, transactions dropped 40 percent in the first quarter compared with a year earlier, according to broker Cushman & Wakefield Inc., and U.K. values fell 29 percent in the 12 months through February, Investment Property Databank Ltd. said in a March 13 report.
“Despite the challenging environment, the properties can be moved if HSBC is willing to offer attractive lease-back and seller-financing terms to a prospective buyer,” Dan Fasulo, managing director of New York-based research firm Real Capital Analytics Inc., said in an e-mail message.
HSBC would probably lease the offices back from any buyer, the Times reported.
“The sale price will be predicated on the lease terms HSBC is willing to accept” to rent back the space, Fasulo said.
Share Sale
HSBC raised 12.5 billion pounds in the U.K.’s largest rights offer earlier this month. The bank needs cash to help counter the $15.5 billion pretax loss of its North American operation for 2008 and to add to the $53 billion it set aside during the past three years to cover bad loans. It has so far avoided taking U.K. government funding, unlike rivals Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.
“As part of managing a significant global real estate portfolio HSBC is testing the market with three of its landmark property assets,” HSBC said in a statement. “HSBC constantly monitors the commercial property market carefully, making decisions based on what is most appropriate for the business and our stakeholders.”
Two years ago HSBC sold the Canary Wharf headquarters to Spanish developer Metrovacesa SA for 1.09 billion pounds in the first sale of a U.K. office building to top 1 billion pounds.
Bought It Back
HSBC then rented offices there at an annual rate of 43.5 million pounds. In December, it bought the building back from Metrovacesa for 838 million pounds, a profit of 250 million pounds. The bank built the tower in 2002.
The New York Times Co. struck a similar deal last month, agreeing to sell the space it occupies in its Manhattan headquarters for $225 million to W.P. Carey & Co., a New York- based real estate investment bank. The newspaper company will rent the building for 15 years from the new owner with an option to buy back its stake in 2019 for $250 million.
Manhattan office vacancy rates in March rose to their highest in more than five years, according to Los Angeles-based real estate services firm CB Richard Ellis Group Inc.
In London’s financial district, empty office space is also at a five-year high, according to NB Real Estate.
HSBC’s London headquarters accommodates about 8,000 workers and was designed by Norman Foster. The 29-story New York property, built in 1985, is at 452 Fifth Ave. between 39th and 40th streets and has 500,000 square feet, according to the Web site MrOfficeSpace.com. Sphere: Related Content
HSBC Holdings Plc, Europe’s biggest bank, may sell three of its landmark office buildings, including the Canary Wharf world headquarters in London, to raise cash as it tries to avoid a bailout from the British government.
HSBC is gauging interest in its 45-story tower at 8 Canada Square in London, its Fifth Avenue skyscraper in New York, and its Paris offices on the Avenue des Champs Elysees, said Ruth Lavelle, a London-based spokeswoman for HSBC. The Sunday Times of London reported the potential sales earlier today at a combined asking price of 2.7 billion pounds ($3.96 billion). The newspaper didn’t include the source of its information and Lavelle, in an e-mail, said she couldn’t confirm a price.
The London-based bank is seeking to sell at a time when financing for commercial real estate is difficult and values are falling. In New York, transactions dropped 40 percent in the first quarter compared with a year earlier, according to broker Cushman & Wakefield Inc., and U.K. values fell 29 percent in the 12 months through February, Investment Property Databank Ltd. said in a March 13 report.
“Despite the challenging environment, the properties can be moved if HSBC is willing to offer attractive lease-back and seller-financing terms to a prospective buyer,” Dan Fasulo, managing director of New York-based research firm Real Capital Analytics Inc., said in an e-mail message.
HSBC would probably lease the offices back from any buyer, the Times reported.
“The sale price will be predicated on the lease terms HSBC is willing to accept” to rent back the space, Fasulo said.
Share Sale
HSBC raised 12.5 billion pounds in the U.K.’s largest rights offer earlier this month. The bank needs cash to help counter the $15.5 billion pretax loss of its North American operation for 2008 and to add to the $53 billion it set aside during the past three years to cover bad loans. It has so far avoided taking U.K. government funding, unlike rivals Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc.
“As part of managing a significant global real estate portfolio HSBC is testing the market with three of its landmark property assets,” HSBC said in a statement. “HSBC constantly monitors the commercial property market carefully, making decisions based on what is most appropriate for the business and our stakeholders.”
Two years ago HSBC sold the Canary Wharf headquarters to Spanish developer Metrovacesa SA for 1.09 billion pounds in the first sale of a U.K. office building to top 1 billion pounds.
Bought It Back
HSBC then rented offices there at an annual rate of 43.5 million pounds. In December, it bought the building back from Metrovacesa for 838 million pounds, a profit of 250 million pounds. The bank built the tower in 2002.
The New York Times Co. struck a similar deal last month, agreeing to sell the space it occupies in its Manhattan headquarters for $225 million to W.P. Carey & Co., a New York- based real estate investment bank. The newspaper company will rent the building for 15 years from the new owner with an option to buy back its stake in 2019 for $250 million.
Manhattan office vacancy rates in March rose to their highest in more than five years, according to Los Angeles-based real estate services firm CB Richard Ellis Group Inc.
In London’s financial district, empty office space is also at a five-year high, according to NB Real Estate.
HSBC’s London headquarters accommodates about 8,000 workers and was designed by Norman Foster. The 29-story New York property, built in 1985, is at 452 Fifth Ave. between 39th and 40th streets and has 500,000 square feet, according to the Web site MrOfficeSpace.com. Sphere: Related Content
Wednesday, April 08, 2009
MPS Bank Seeking EUR 2.2 Billion Sale Leaseback of Bank Offices Across Italy
PropertyEU - April 6, 2009
Italy's Caltagirone Group is said to be the frontrunner in a bid to acquire the real estate assets that Monte Paschi di Siena bank put on the market last year, news agency Radiocor reported. The properties, worth a total of EUR 2.2 bn, are being sold in a sale and leaseback operation managed by Mediobanca. According to media reports, Mediobanca is working on the creation of a consortium of investors including Credit Suisse which would buy the bulk of the properties. Sphere: Related Content
Italy's Caltagirone Group is said to be the frontrunner in a bid to acquire the real estate assets that Monte Paschi di Siena bank put on the market last year, news agency Radiocor reported. The properties, worth a total of EUR 2.2 bn, are being sold in a sale and leaseback operation managed by Mediobanca. According to media reports, Mediobanca is working on the creation of a consortium of investors including Credit Suisse which would buy the bulk of the properties. Sphere: Related Content
Tuesday, April 07, 2009
DHL Agrees to EUR 30 Million Sale Leaseback of Three Benelux Distribution Centers
Property Week - April 2, 2009
Shareholders of closed-end real-estate investment company WDP have approved a proposal for the company to acquire three logistics sites from international courier DHL. The sites located in the axis between Breda in the Netherlands and Brussels have a total construction potential of 85,000 m2.
DHL will lease back the properties, making WDP the largest provider of real estate space to the firm in Belgium. WDP's shareholders also approved the issuance of 807,733 new shares at EUR 27.15 each to pay for the non-cash transaction.
The transaction will take the form of a merger and three partial de-mergers involving the new shares and the transfer of debt. This will result in a total investment value of EUR 29.7 mln for a gross initial return of 8.7%. Sphere: Related Content
Shareholders of closed-end real-estate investment company WDP have approved a proposal for the company to acquire three logistics sites from international courier DHL. The sites located in the axis between Breda in the Netherlands and Brussels have a total construction potential of 85,000 m2.
DHL will lease back the properties, making WDP the largest provider of real estate space to the firm in Belgium. WDP's shareholders also approved the issuance of 807,733 new shares at EUR 27.15 each to pay for the non-cash transaction.
The transaction will take the form of a merger and three partial de-mergers involving the new shares and the transfer of debt. This will result in a total investment value of EUR 29.7 mln for a gross initial return of 8.7%. Sphere: Related Content
Monday, April 06, 2009
Kesko Completes EUR 50 Million Sale Leaseback of Retail Stores in Finland
IPE - April 3, 2009
The Kesko Pension Fund has bought four retail properties for €50m in a sale and leaseback deal with Finnish trading company Kesko Group.
The €400m Finnish pension fund has purchased a total of 26,000 square metres of store space in Finland, including the K-citimarket in Helsinki, K-rauta Lielahti in Tampere, interests in the K-supermarket Nekala and K-citymarket properties in Tampere.
The pension fund currently allocates 40% to real estate and invests mainly in Finnish trading centres.
Velko Savela, the pension fund’s executive vice president, said the real estate portfolio returned around 8% last year but saw very few transactions.
Savela said the fund held off from making new investments in 2008 and sold very few properties, but is currently considering increasing its allocation to real estate slightly.
The latest deal does not involve any changes in the stores’ operations and all properties have been leased back to Kesko’s parent company for a further 10-15 years.
Kesko Group said it gained around €19m from the transaction, once debt had been added, and said the sale was designed to boost the firm’s liquidity and improve its use.
At 31 December 2008, Kesko owned one million square metres of properties and had 2.9 million square metres of properties leased in Finland and neighbouring Nordic countries. Sphere: Related Content
The Kesko Pension Fund has bought four retail properties for €50m in a sale and leaseback deal with Finnish trading company Kesko Group.
The €400m Finnish pension fund has purchased a total of 26,000 square metres of store space in Finland, including the K-citimarket in Helsinki, K-rauta Lielahti in Tampere, interests in the K-supermarket Nekala and K-citymarket properties in Tampere.
The pension fund currently allocates 40% to real estate and invests mainly in Finnish trading centres.
Velko Savela, the pension fund’s executive vice president, said the real estate portfolio returned around 8% last year but saw very few transactions.
Savela said the fund held off from making new investments in 2008 and sold very few properties, but is currently considering increasing its allocation to real estate slightly.
The latest deal does not involve any changes in the stores’ operations and all properties have been leased back to Kesko’s parent company for a further 10-15 years.
Kesko Group said it gained around €19m from the transaction, once debt had been added, and said the sale was designed to boost the firm’s liquidity and improve its use.
At 31 December 2008, Kesko owned one million square metres of properties and had 2.9 million square metres of properties leased in Finland and neighbouring Nordic countries. Sphere: Related Content
Thursday, April 02, 2009
Ford Mulls £100 Million Sale Leaseback of Over 100 Auto Showrooms Across Europe
Property Week - March 30, 2009
Ford, the car giant led by chief executive Alan Mulally, is looking to sell off 100 to 120 showrooms across Europe.
Agents have been invited to pitch to run a sale-and-leaseback of properties in the UK, France and Germany. It is understood that Ford's management hopes to raise around £100m by selling the properties to landlords, which would then rent them back to the car maker. (Independent On Sunday) Sphere: Related Content
Ford, the car giant led by chief executive Alan Mulally, is looking to sell off 100 to 120 showrooms across Europe.
Agents have been invited to pitch to run a sale-and-leaseback of properties in the UK, France and Germany. It is understood that Ford's management hopes to raise around £100m by selling the properties to landlords, which would then rent them back to the car maker. (Independent On Sunday) Sphere: Related Content
Saturday, March 28, 2009
Banco Sabadell Completes EUR 35.7 Million Sale Leaseback of Madrid HQ
Cushman & Wakefield Web Site - March 26, 2009
Banco Sabadell, one of Spain’s main financial institutions, has today announced the sale of its head office in Madrid in a deal brokered by Cushman & Wakefield (C&W), real estate consultants for comprehensive services. The total value of the deal came to €35.7 million.
The deal has been made on a sale and leaseback basis, which comprises the sale of the asset and its subsequent leasing by the seller. This type of deal is extremely common for institutions that wish to gain liquidity from their real estate assets. Cushman & Wakefield has recently been involved in several transactions of this nature, such as the sale of Danone’s head office in Barcelona (more than €50 million) and the sale of 12 hypermarkets owned by the distribution chain Eroski (€361 million), both in 2008.
Oriol Barrachina, Managing Partner of Cushman & Wakefield in Barcelona, commented “This deal demonstrates that although there has been a significant decrease in activity in the investment market, there is still a strong interest in deals that involve a good location, a good tenant and a good contractual term”.
The Sabadell building is located at number 71 Calle Serrano in Madrid’s Barrio de Salamanca, one of the city’s most elite districts, which not only acts as a residential area but also houses the headquarters of various financial institutions and numerous high end fashion boutiques.
With nine floors above ground, two below ground and 76 car parking spaces, the building has a constructed area of 6,800m2 and a GLA (gross leasable area) of 4,616m2. The property, which has excellent public transport links, is in an optimum condition after having undergone comprehensive renovations in 2008.
The purchaser is Metroinvest (Metrópolis and La Caixa-Banca Privada.) Sphere: Related Content
Banco Sabadell, one of Spain’s main financial institutions, has today announced the sale of its head office in Madrid in a deal brokered by Cushman & Wakefield (C&W), real estate consultants for comprehensive services. The total value of the deal came to €35.7 million.
The deal has been made on a sale and leaseback basis, which comprises the sale of the asset and its subsequent leasing by the seller. This type of deal is extremely common for institutions that wish to gain liquidity from their real estate assets. Cushman & Wakefield has recently been involved in several transactions of this nature, such as the sale of Danone’s head office in Barcelona (more than €50 million) and the sale of 12 hypermarkets owned by the distribution chain Eroski (€361 million), both in 2008.
Oriol Barrachina, Managing Partner of Cushman & Wakefield in Barcelona, commented “This deal demonstrates that although there has been a significant decrease in activity in the investment market, there is still a strong interest in deals that involve a good location, a good tenant and a good contractual term”.
The Sabadell building is located at number 71 Calle Serrano in Madrid’s Barrio de Salamanca, one of the city’s most elite districts, which not only acts as a residential area but also houses the headquarters of various financial institutions and numerous high end fashion boutiques.
With nine floors above ground, two below ground and 76 car parking spaces, the building has a constructed area of 6,800m2 and a GLA (gross leasable area) of 4,616m2. The property, which has excellent public transport links, is in an optimum condition after having undergone comprehensive renovations in 2008.
The purchaser is Metroinvest (Metrópolis and La Caixa-Banca Privada.) Sphere: Related Content
Tuesday, March 24, 2009
Standard Chartered Offices in London Offered for £200 Million
Property Week - March 21, 2009
Vincent Tchenguiz is under offer to buy the Standard Chartered building on Basinghall Avenue in the City of London for £200m in his first UK commercial property deal since the middle of last year.
Tchenguiz’s Consensus Group is thought to have agreed to buy the 200,000 sq ft building at 1 Basinghall Avenue from a Middle Eastern consortium. The building is let to Standard Chartered on a 20 year lease that began in 2007 and which pays an annual rent of around £10m a year.
Standard Chartered originally bought the site from The City of London Unit Trust (CLOUT), the unit trust managed by Schroders and advised by Pillar Property, at the end of 2005 for around £120m.
It then soon after carried out a £170m sale and leaseback with Irish group Sloane Capital, the property investment vehicle for horse racing tycoons John Magnier and JP McManus and Limerick property investor Aidan Brooks.
Sloan Capital sold it to the Middle Eastern consortium for £207m. HSH Nordbank provided debt finance to the Middle Eastern consortium. It is thought HSH Nordbank, which has a change of control clause in its debt agreement, could potentially transfer the debt to Tchenguiz under revised terms.
A spokesman for Consensus Business Group declined to comment.
The last UK commercial purchase by Tchenguiz was in May last year when Rainlodge, ultimately owned by the Tchenguiz family trust and advised by Consensus Business Group, bought a student hall in Leeds for £10.6m from Unite, reflecting a net initial yield of 5.7%.
Consensus has also sold a number of major assets in the UK in the past two years, notably selling Shell-Mex House in the West End for £490m to American private equity firm Westbrook. Sphere: Related Content
Vincent Tchenguiz is under offer to buy the Standard Chartered building on Basinghall Avenue in the City of London for £200m in his first UK commercial property deal since the middle of last year.
Tchenguiz’s Consensus Group is thought to have agreed to buy the 200,000 sq ft building at 1 Basinghall Avenue from a Middle Eastern consortium. The building is let to Standard Chartered on a 20 year lease that began in 2007 and which pays an annual rent of around £10m a year.
Standard Chartered originally bought the site from The City of London Unit Trust (CLOUT), the unit trust managed by Schroders and advised by Pillar Property, at the end of 2005 for around £120m.
It then soon after carried out a £170m sale and leaseback with Irish group Sloane Capital, the property investment vehicle for horse racing tycoons John Magnier and JP McManus and Limerick property investor Aidan Brooks.
Sloan Capital sold it to the Middle Eastern consortium for £207m. HSH Nordbank provided debt finance to the Middle Eastern consortium. It is thought HSH Nordbank, which has a change of control clause in its debt agreement, could potentially transfer the debt to Tchenguiz under revised terms.
A spokesman for Consensus Business Group declined to comment.
The last UK commercial purchase by Tchenguiz was in May last year when Rainlodge, ultimately owned by the Tchenguiz family trust and advised by Consensus Business Group, bought a student hall in Leeds for £10.6m from Unite, reflecting a net initial yield of 5.7%.
Consensus has also sold a number of major assets in the UK in the past two years, notably selling Shell-Mex House in the West End for £490m to American private equity firm Westbrook. Sphere: Related Content
Sunday, March 22, 2009
Caixa Catalunya Completes EUR 110 Million Sale Leaseback of 120 Bank Branches in Spain
Spanish News - March 18, 2009
In December, Caixa Catalunya announced that it would sell 824 branches of its 1200 commercial premises in Spain in an effort to raise cash.
On Tuesday, the Spanish savings bank has confirmed that it has sold 120 of the branches through a sale and leaseback agreement raising 110 million euros. The sale has been carried out solely through its private banking customers in an effort to offer them a valuable investment with low risk and guaranteed retrun.
Caixa Catalunya says it is offering a 6 – 6.5 per cent return on investment by paying a rent for the sold premises. The global return is estimated to be at 8.5% if the future increase of rents is considered.
The formula sale and leasback is something that is currently being highly used by Spanish banks. Banco Pastor another Spanish bank announced last week it hopes to raise 230 million euros for the sale and leaseback of 160 of its 650 branches in Spain. Sphere: Related Content
In December, Caixa Catalunya announced that it would sell 824 branches of its 1200 commercial premises in Spain in an effort to raise cash.
On Tuesday, the Spanish savings bank has confirmed that it has sold 120 of the branches through a sale and leaseback agreement raising 110 million euros. The sale has been carried out solely through its private banking customers in an effort to offer them a valuable investment with low risk and guaranteed retrun.
Caixa Catalunya says it is offering a 6 – 6.5 per cent return on investment by paying a rent for the sold premises. The global return is estimated to be at 8.5% if the future increase of rents is considered.
The formula sale and leasback is something that is currently being highly used by Spanish banks. Banco Pastor another Spanish bank announced last week it hopes to raise 230 million euros for the sale and leaseback of 160 of its 650 branches in Spain. Sphere: Related Content
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