PropertyEU - August 20, 2009
Property broker Newsec has advised Finnair Group's facilities division in the sale-and-leaseback of four properties in the vicinity of Helsinki-Vantaa Airport for EUR 77 mln.
The assets were sold to NV Property Fund I Ky.
The properties comprise Aircraft Hangar 7, the Ground Handling Fleet Centre, the Ground Equipment Maintenance Unit and the Training Centre. The properties will be leased by Finnair Facilities Management Oy and the users of the facilities are various business units of Finnair. The leased area totals around 60,000 m2.
The transaction was part of a financing programme announced earlier by Finnair. 'We see NV Property Fund I Ky as a reliable and desired long-term partner. We are very pleased with the cooperation within all parties in the arrangement,' said Mika Stirkkinen, Group treasurer of Finnair.
Newsec said the acquisition was also a significant step for the fund of NV Kiinteistösijoitus, as the volume of its investments increase to over EUR 300 mln. 'We are privileged to have such a remarkable actor, as Finnair is, as a tenant. The properties with long net lease agreements represent the general focus of our fund,' said Kari Louhenkilpi, the managing director of NV Kiinteistösijoitus
The fund is owned by Nordea Life Assurance Finland Ltd (45%), Varma Mutual Pension Insurance Co (45%) and the State Pension Fund (10%).
Sphere: Related Content
Saturday, August 22, 2009
Tuesday, August 18, 2009
Syngenta Seeds HQ Near Minneapolis Sold for $28.4 Million
Minneapolis / St. Paul Business Journal - August 17, 2009
Opus Northwest on Monday sold a newly built Minnetonka office building for about $30 million to CB Richard Ellis Realty Trust, a firm based in Princeton, N.J., according to a Securities and Exchange Commission filing.
The 116,300-square-foot building, called Crest Ridge Corporate Center I, is leased to Syngenta Seeds Inc., a division of Basel, Switzerland-based Syngenta International. Syngenta's lease runs through June 2019.
CB Richard Ellis Realty Trust said in the filing that it bought the building, at 11055 Wayzata Blvd., for $28.4 million plus closing costs.
The building and its attached 430-stall parking ramp is at the southeast quadrant of Hopkins Crossroad and Interstate 394. Work was finished on the building in June.
Syngenta is moving about 250 workers into the building from various sites around the Twin Cities, including its former headquarters on Highway 55 in Golden Valley. It has about 500 workers in the state, according to a spokesman for Syngenta.
Opus Northwest is marketing Phase II of the corporate center on an as-yet undeveloped, similar-sized adjacent site.
Opus Northwest is a division of Opus Corp., also based in Minnetonka, which has had some of its other regional divisions around the country file for bankruptcy amid a national downturn in the market for commercial real estate.
The property was marketed for sale by Tom Holtz and Steven Buss from the Bloomington office of CB Richard Ellis.
This is the second notable purchase in the Twin Cities by CB Richard Ellis Realty Trust this summer. In July, it bought an industrial building in Rogers that is leased to Deerfield, Ill.-based Walgreen Co. for $15.34 million.
(Note: SEC Edgar prospectus supplement dated August 17, 2009 filed by CB Richard Ellis Realty Trust estimates that the acquisition cap rate for the Crest Ridge property was 8.7%.) Sphere: Related Content
Opus Northwest on Monday sold a newly built Minnetonka office building for about $30 million to CB Richard Ellis Realty Trust, a firm based in Princeton, N.J., according to a Securities and Exchange Commission filing.
The 116,300-square-foot building, called Crest Ridge Corporate Center I, is leased to Syngenta Seeds Inc., a division of Basel, Switzerland-based Syngenta International. Syngenta's lease runs through June 2019.
CB Richard Ellis Realty Trust said in the filing that it bought the building, at 11055 Wayzata Blvd., for $28.4 million plus closing costs.
The building and its attached 430-stall parking ramp is at the southeast quadrant of Hopkins Crossroad and Interstate 394. Work was finished on the building in June.
Syngenta is moving about 250 workers into the building from various sites around the Twin Cities, including its former headquarters on Highway 55 in Golden Valley. It has about 500 workers in the state, according to a spokesman for Syngenta.
Opus Northwest is marketing Phase II of the corporate center on an as-yet undeveloped, similar-sized adjacent site.
Opus Northwest is a division of Opus Corp., also based in Minnetonka, which has had some of its other regional divisions around the country file for bankruptcy amid a national downturn in the market for commercial real estate.
The property was marketed for sale by Tom Holtz and Steven Buss from the Bloomington office of CB Richard Ellis.
This is the second notable purchase in the Twin Cities by CB Richard Ellis Realty Trust this summer. In July, it bought an industrial building in Rogers that is leased to Deerfield, Ill.-based Walgreen Co. for $15.34 million.
(Note: SEC Edgar prospectus supplement dated August 17, 2009 filed by CB Richard Ellis Realty Trust estimates that the acquisition cap rate for the Crest Ridge property was 8.7%.) Sphere: Related Content
Sunday, August 09, 2009
Credit Suisse Nearing £150 Million Sale Leaseback of Canary Wharf HQ
Property Week - August 7, 2009
An investment company backed by the former prime minister of Lebanon is in pole position to carry out a purchase and leaseback of one of Credit Suisse’s buildings in London’s Docklands.
M1 Real Estate is leading a consortium of Lebanese investors that is thought to have placed the 258,314 sq ft 20 Columbus Courtyard under offer for more than £150m – a yield of less than 6%. Credit Suisse will lease back the property for 25 years.
M1 Real Estate is a Monaco-based property company and an affiliate of parent company M1 Group, which was founded by the former Lebanese prime minister, Najib Mikati, and his brother.
The deal is another example of overseas investors believing the UK offers good value. This week an Australian fund has placed under offer a stake in the Bullring, Birmingham, and a German fund has bought Centrium in London’s Midtown.
M1 Real Estate has made other investments in central London. In March, it bought the Times Place building at 45 Pall Mall in London’s West End from Legal & General. It paid £56.5m, entirely in equity, for the 60,000 sq ft property at a net initial yield of 7.5%.
Credit Suisse has been assessing its sale-and-leaseback options on all of its buildings in London’s Docklands for more than three years.
In May this year it instructed CB Richard Ellis to market 20 Columbus Courtyard in a process dubbed ‘Project Hunter’. The guide price was around £147m, reflecting an initial yield of 6.25%. It offered the building on a freehold or long-leasehold basis with a guaranteed 25-year lease to Credit Suisse Securities.
The tenant has two options to extend the lease for five years. The rent will be reviewed annually on a Retail Prices Index-linked increase with a ‘cap and collar’ maximum and minimum increase of 4% and 1.5%, respectively. The current rent is £37.50/sq ft.
Credit Suisse received 20 formal bids from parties attracted by the size of the property and the guaranteed rent rises.
The purchase and leaseback is thought to be part of M1’s long-term strategy to build a global portfolio of prime assets in large cities.
Moustapha El-Solh, chief executive of M1 Real Estate, said after the purchase of Times Place that, ‘although the London real estate market, like many cities around the world, is currently seeing one of its worst downturns, we believe that making investments in prime assets with strong fundamentals is a sound long-term strategy.’
M1’s portfolio includes investments in the US, Europe and the Middle East.
Credit Suisse is also considering the sale and leaseback of other buildings it owns in London’s Docklands. Sphere: Related Content
An investment company backed by the former prime minister of Lebanon is in pole position to carry out a purchase and leaseback of one of Credit Suisse’s buildings in London’s Docklands.
M1 Real Estate is leading a consortium of Lebanese investors that is thought to have placed the 258,314 sq ft 20 Columbus Courtyard under offer for more than £150m – a yield of less than 6%. Credit Suisse will lease back the property for 25 years.
M1 Real Estate is a Monaco-based property company and an affiliate of parent company M1 Group, which was founded by the former Lebanese prime minister, Najib Mikati, and his brother.
The deal is another example of overseas investors believing the UK offers good value. This week an Australian fund has placed under offer a stake in the Bullring, Birmingham, and a German fund has bought Centrium in London’s Midtown.
M1 Real Estate has made other investments in central London. In March, it bought the Times Place building at 45 Pall Mall in London’s West End from Legal & General. It paid £56.5m, entirely in equity, for the 60,000 sq ft property at a net initial yield of 7.5%.
Credit Suisse has been assessing its sale-and-leaseback options on all of its buildings in London’s Docklands for more than three years.
In May this year it instructed CB Richard Ellis to market 20 Columbus Courtyard in a process dubbed ‘Project Hunter’. The guide price was around £147m, reflecting an initial yield of 6.25%. It offered the building on a freehold or long-leasehold basis with a guaranteed 25-year lease to Credit Suisse Securities.
The tenant has two options to extend the lease for five years. The rent will be reviewed annually on a Retail Prices Index-linked increase with a ‘cap and collar’ maximum and minimum increase of 4% and 1.5%, respectively. The current rent is £37.50/sq ft.
Credit Suisse received 20 formal bids from parties attracted by the size of the property and the guaranteed rent rises.
The purchase and leaseback is thought to be part of M1’s long-term strategy to build a global portfolio of prime assets in large cities.
Moustapha El-Solh, chief executive of M1 Real Estate, said after the purchase of Times Place that, ‘although the London real estate market, like many cities around the world, is currently seeing one of its worst downturns, we believe that making investments in prime assets with strong fundamentals is a sound long-term strategy.’
M1’s portfolio includes investments in the US, Europe and the Middle East.
Credit Suisse is also considering the sale and leaseback of other buildings it owns in London’s Docklands. Sphere: Related Content
Thursday, July 30, 2009
State of Arizona May Pursue Property Sale Leaseback in Bid to Raise up to $1 Billion
Arizona Republic - July 29, 2009
Call it a sign of desperate times: Legislators are considering selling the House and Senate buildings where they've conducted state business for more than 50 years.
Dozens of other state properties also may be sold as the state government faces its worst financial crisis in a generation, if not ever. The plan isn't to liquidate state assets, though.
Instead, officials hope to sell the properties and then lease them back over several years before assuming ownership again. The complex financial transaction would allow government services to continue without interruption while giving the state a fast infusion of as much as $735 million, according to Capitol projections.
For investors, the arrangement means long-term lease payments from a stable source.
Earlier this month, Republican Gov. Jan Brewer vetoed such sale/leaseback provisions along with most of the rest of a fiscal 2010 state budget plan sent to her by the Legislature.
But the provisions are expected to return as part of a GOP-led legislative budget proposal surfacing this week. Although Brewer spokesman Paul Senseman called sale/leaseback deals "one of the governor's least favorite options," he conceded the likelihood that they'll play a key role in any plan to close a state shortfall estimated at $3.4 billion.
State properties now being considered for sale and leaseback include the House and Senate buildings, the Phoenix and Tucson headquarters of the Arizona Department of Public Safety, the State Hospital and the state fairgrounds, according to a document obtained by The Arizona Republic. Some prison facilities also are under consideration.
In total, the list comprises 32 properties that, if built from the ground up, come with a combined replacement value in excess of $1 billion.
The properties were chosen based on attractiveness to investors, buildings the state would be unlikely to walk away from, such as prisons or other facilities that provide essential government services.
Only one state property thus far is targeted for outright sale: the state Agricultural Laboratory in Phoenix.
The state has conducted sale/leaseback deals in the past, though rarely.
This is different. Manos believes it would be the first time the state has sold and leased back state buildings with the intent of using the revenue to fund general operations rather than particular projects.
Under the most recent legislative proposal, the state would seek a series of lease arrangements spanning as much as 20 years. Deals that would generate the targeted $735 million in revenue would mean state lease payments totaling $60 million to $70 million a year, according to budget analysts. Sphere: Related Content
Call it a sign of desperate times: Legislators are considering selling the House and Senate buildings where they've conducted state business for more than 50 years.
Dozens of other state properties also may be sold as the state government faces its worst financial crisis in a generation, if not ever. The plan isn't to liquidate state assets, though.
Instead, officials hope to sell the properties and then lease them back over several years before assuming ownership again. The complex financial transaction would allow government services to continue without interruption while giving the state a fast infusion of as much as $735 million, according to Capitol projections.
For investors, the arrangement means long-term lease payments from a stable source.
Earlier this month, Republican Gov. Jan Brewer vetoed such sale/leaseback provisions along with most of the rest of a fiscal 2010 state budget plan sent to her by the Legislature.
But the provisions are expected to return as part of a GOP-led legislative budget proposal surfacing this week. Although Brewer spokesman Paul Senseman called sale/leaseback deals "one of the governor's least favorite options," he conceded the likelihood that they'll play a key role in any plan to close a state shortfall estimated at $3.4 billion.
State properties now being considered for sale and leaseback include the House and Senate buildings, the Phoenix and Tucson headquarters of the Arizona Department of Public Safety, the State Hospital and the state fairgrounds, according to a document obtained by The Arizona Republic. Some prison facilities also are under consideration.
In total, the list comprises 32 properties that, if built from the ground up, come with a combined replacement value in excess of $1 billion.
The properties were chosen based on attractiveness to investors, buildings the state would be unlikely to walk away from, such as prisons or other facilities that provide essential government services.
Only one state property thus far is targeted for outright sale: the state Agricultural Laboratory in Phoenix.
The state has conducted sale/leaseback deals in the past, though rarely.
This is different. Manos believes it would be the first time the state has sold and leased back state buildings with the intent of using the revenue to fund general operations rather than particular projects.
Under the most recent legislative proposal, the state would seek a series of lease arrangements spanning as much as 20 years. Deals that would generate the targeted $735 million in revenue would mean state lease payments totaling $60 million to $70 million a year, according to budget analysts. Sphere: Related Content
Wednesday, July 29, 2009
Tesco Completes EUR 63 Million Sale Leaseback of Logistics Portfolio in Hungary
Property Week - July 28, 2009
Investment firm WP Carey has provided €63m ($90m) in alternative long-term finance through the sale and leaseback of Tesco’s logistics portfolio in Hungary. The finance was provided by two publicly held non-traded REITs, CPA:16-Global and CPA:17-Global, owned by WP Carey. The transaction is a part of the supermarket chains' ongoing program to release value from its property portfolio. It is WP Carey’s first investment deal in Hungary. Tesco was represented by Cushman & Wakefield. WP Carey was advised by King Sturge. Sphere: Related Content
Investment firm WP Carey has provided €63m ($90m) in alternative long-term finance through the sale and leaseback of Tesco’s logistics portfolio in Hungary. The finance was provided by two publicly held non-traded REITs, CPA:16-Global and CPA:17-Global, owned by WP Carey. The transaction is a part of the supermarket chains' ongoing program to release value from its property portfolio. It is WP Carey’s first investment deal in Hungary. Tesco was represented by Cushman & Wakefield. WP Carey was advised by King Sturge. Sphere: Related Content
Sunday, July 19, 2009
J.P. Morgan Seeking Sale Leaseback of 23 Building Portfolio in U.S.
Real Estate Finance & Investment - July 17, 2009
Houlihan Lokey has launched the sale of a 23 office buildings totaling 7.1 million square feet on behalf of J.P. Morgan. The portfolio, the largest single offering of office buildings so far this year, includes the 2.2 million-square-foot One Chase Manhattan Plaza and the 1.1 million-square-foot 4 New York Plaza in Manhattan. Also offered is a 865,000-square-foot condominium interest in 45-story Chase Center Seattle and 712 Main St., a 35-story 794,000-square-foot art deco tower in Houston. The bank will consider offers for the whole portfolio, regional pools or single assets.
J.P. Morgan plans to lease back about 60% of the space, including seven buildings that are fully leased to the bank. An investor familiar with the offering speculated the sale may be a move to reorganize the bank's investments following its acquisitions of Bear Stearns and Washington Mutual.
Market players said it would be difficult to assess the portfolio's value like 'throwing darts,' as one put it given uncertainty about the rent rolls, the seller's motivation, whether J.P. Morgan will offer seller financing and a lack of recent comparable sales. Sphere: Related Content
Houlihan Lokey has launched the sale of a 23 office buildings totaling 7.1 million square feet on behalf of J.P. Morgan. The portfolio, the largest single offering of office buildings so far this year, includes the 2.2 million-square-foot One Chase Manhattan Plaza and the 1.1 million-square-foot 4 New York Plaza in Manhattan. Also offered is a 865,000-square-foot condominium interest in 45-story Chase Center Seattle and 712 Main St., a 35-story 794,000-square-foot art deco tower in Houston. The bank will consider offers for the whole portfolio, regional pools or single assets.
J.P. Morgan plans to lease back about 60% of the space, including seven buildings that are fully leased to the bank. An investor familiar with the offering speculated the sale may be a move to reorganize the bank's investments following its acquisitions of Bear Stearns and Washington Mutual.
Market players said it would be difficult to assess the portfolio's value like 'throwing darts,' as one put it given uncertainty about the rent rolls, the seller's motivation, whether J.P. Morgan will offer seller financing and a lack of recent comparable sales. Sphere: Related Content
RaceTrac Seeking Sale Leaseback of 16 Gas & Convenience Stores in Six States
CSP Daily News - July 17, 2009
RaceTrac Petroleum Inc. said it is continuing "aggressive" growth plans by launching a sale-leaseback program on a select portion of its retail fueling station/convenience store portfolio. RaceTrac has engaged CB Richard Ellis Group Inc. (CBRE) as its exclusive capital markets advisor for this initiative. As reported in a CSP Daily News Flash, the initial offering of 16 gas station/convenience stores in Arkansas, Florida, Georgia, Mississippi, Tennessee and Texas is expected to generate in excess of $42 million.
In 2008, RaceTrac generated in excess of $7.5 billion in annual revenues through the operation of more than 530 retail gas/c-stores in 12 southeastern states. RaceTrac has been steadily growing since its inception 75 years ago and is currently ranked as the 56th largest privately held U.S. company by Forbes based on annual revenues
Atlanta-based RaceTrac said that it intends to reinvest the sale-leaseback proceeds in its retail development pipeline and to take advantage of current buying opportunities. Ownership of a RaceTrac store is an opportunity that has never been made available to the public in the company's operating history, it said.
James Mitchell and Sean McConnell of CBRE's Global Corporate Services unit will be lead points of contact for the portfolio offering. Commenting on the new relationship, Mitchell said, "CBRE's national platform matched well with RaceTrac's desire for global reach and strong capital market relationships; we are excited to be taking a package of such well-located assets to market."
McConnell added, "The RaceTrac sale-leaseback investment couples newly constructed retail product and single tenant net leases secured by a high credit regional fuel marketing brand. Given the current turbulent climate, we are very bullish on the opportunity to steward such a stable retail investment opportunity to market."
The assets will be available in bulk or on an individual basis.
Prospective investors are invited to contact CBRE at 407-404-5000 or http:/www.cbre.com/racetracportfolio/ Sphere: Related Content
RaceTrac Petroleum Inc. said it is continuing "aggressive" growth plans by launching a sale-leaseback program on a select portion of its retail fueling station/convenience store portfolio. RaceTrac has engaged CB Richard Ellis Group Inc. (CBRE) as its exclusive capital markets advisor for this initiative. As reported in a CSP Daily News Flash, the initial offering of 16 gas station/convenience stores in Arkansas, Florida, Georgia, Mississippi, Tennessee and Texas is expected to generate in excess of $42 million.
In 2008, RaceTrac generated in excess of $7.5 billion in annual revenues through the operation of more than 530 retail gas/c-stores in 12 southeastern states. RaceTrac has been steadily growing since its inception 75 years ago and is currently ranked as the 56th largest privately held U.S. company by Forbes based on annual revenues
Atlanta-based RaceTrac said that it intends to reinvest the sale-leaseback proceeds in its retail development pipeline and to take advantage of current buying opportunities. Ownership of a RaceTrac store is an opportunity that has never been made available to the public in the company's operating history, it said.
James Mitchell and Sean McConnell of CBRE's Global Corporate Services unit will be lead points of contact for the portfolio offering. Commenting on the new relationship, Mitchell said, "CBRE's national platform matched well with RaceTrac's desire for global reach and strong capital market relationships; we are excited to be taking a package of such well-located assets to market."
McConnell added, "The RaceTrac sale-leaseback investment couples newly constructed retail product and single tenant net leases secured by a high credit regional fuel marketing brand. Given the current turbulent climate, we are very bullish on the opportunity to steward such a stable retail investment opportunity to market."
The assets will be available in bulk or on an individual basis.
Prospective investors are invited to contact CBRE at 407-404-5000 or http:/www.cbre.com/racetracportfolio/ Sphere: Related Content
First Hotels Completes EUR 41 Million Sale Leaseback of Hotel in Gothenburg
PropertyEU - July 17, 2009
German open-ended fund manager Deka Immobilien has bought a hotel in the Swedish city of Gothenburg for the equivalent of around EUR 41 mln. Located above Gothenburg's central station, one of the main railway junctions in Scandinavia, First Hotel G was acquired for Deka's WestInvest ImmoValue open-ended mutual property fund for institutional investors.
The property comprises total lettable space of around 13,600 m2 and is fully let to First Hotels for a term of 25 years. The 300-room First Hotel G is among the largest and most modern hotels in Gothenburg.
The purchase was implemented as part of a sale-and-lease-back agreement. The vendor was the Norwegian company Host Hoteleiendom, which owns 21 other hotel properties in Scandinavia all let to First Hotels. Sphere: Related Content
German open-ended fund manager Deka Immobilien has bought a hotel in the Swedish city of Gothenburg for the equivalent of around EUR 41 mln. Located above Gothenburg's central station, one of the main railway junctions in Scandinavia, First Hotel G was acquired for Deka's WestInvest ImmoValue open-ended mutual property fund for institutional investors.
The property comprises total lettable space of around 13,600 m2 and is fully let to First Hotels for a term of 25 years. The 300-room First Hotel G is among the largest and most modern hotels in Gothenburg.
The purchase was implemented as part of a sale-and-lease-back agreement. The vendor was the Norwegian company Host Hoteleiendom, which owns 21 other hotel properties in Scandinavia all let to First Hotels. Sphere: Related Content
Credit Suisse Nearing £147 Million Sale Leaseback of Canary Wharf HQ
Property Week - July 17, 2009
More than 15 bidders are vying to carry out a purchase and leaseback of Credit Suisse Bank’s 20 Columbus Courtyard in London’s Canary Wharf.
CB Richard Ellis is marketing the 258,314 sq ft property for around £147m at an initial yield of 6.25%, on a freehold or long-leasehold basis with a guaranteed 25-year lease to Credit Suisse Securities. There is a ‘cap and collar’ maximum and minimum rental increase of 4% and 1.5%. A shortlist of around five bidders will be drawn up this week. Sphere: Related Content
More than 15 bidders are vying to carry out a purchase and leaseback of Credit Suisse Bank’s 20 Columbus Courtyard in London’s Canary Wharf.
CB Richard Ellis is marketing the 258,314 sq ft property for around £147m at an initial yield of 6.25%, on a freehold or long-leasehold basis with a guaranteed 25-year lease to Credit Suisse Securities. There is a ‘cap and collar’ maximum and minimum rental increase of 4% and 1.5%. A shortlist of around five bidders will be drawn up this week. Sphere: Related Content
Co-operative Group Nears £40 Million Sale Leaseback of 20 UK Grocery Stores
Property Week - July 17, 2009
Threadneedle and LaSalle Investment Management are the final two bidders for a purchase and leaseback of 20 Co-operative Group stores. The pair are awaiting a decision that was expected at the end of this week. The transaction would comprise the sale of 20 Somerfield and Co-Op branded stores for £35m-£40m.
The Co-op would lease the stores back for 25 years on inflation-linked rents.
Threadneedle and LaSalle are thought to have made the final shortlist from the eight initial bids. The sale follows the Co-op’s £1.6bn acquisition of the Somerfield supermarket chain in March this year.
Jones Lang Lasalle advises Co-operative. All parties declined to comment. Sphere: Related Content
Threadneedle and LaSalle Investment Management are the final two bidders for a purchase and leaseback of 20 Co-operative Group stores. The pair are awaiting a decision that was expected at the end of this week. The transaction would comprise the sale of 20 Somerfield and Co-Op branded stores for £35m-£40m.
The Co-op would lease the stores back for 25 years on inflation-linked rents.
Threadneedle and LaSalle are thought to have made the final shortlist from the eight initial bids. The sale follows the Co-op’s £1.6bn acquisition of the Somerfield supermarket chain in March this year.
Jones Lang Lasalle advises Co-operative. All parties declined to comment. Sphere: Related Content
Friday, July 17, 2009
Sale-Leaseback Sticker Shock
Wall Street Journal - July 15, 2009
Demand for corporate sale-leaseback real-estate transactions is picking up across the U.S. as companies seek a fast way to raise cash to ride out the recession. But a scarcity of buyers and low bids mean fewer deals are actually getting done.
Sale-leaseback transactions -- where a company sells its office building, plant or other property and then leases it back from the new owner -- is an alternative form of financing that some companies turn to when traditional financing, such as bank loans, are harder to obtain. During the first five months of this year, the value of U.S. sale-leaseback transactions declined to $853 million, compared with nearly $3 billion in the year-earlier period, according to Real Capital Analytics, which tracks deals greater than $5 million.
Part of the drop in transaction value reflects lower real-estate values, but the biggest issue is that buyers and sellers are so far apart on price that many transactions fizzle when sellers walk away. Just 63 deals were completed between January and May, compared with 174 in the first five months of 2008, according to Real Capital Analytics. Sphere: Related Content
Demand for corporate sale-leaseback real-estate transactions is picking up across the U.S. as companies seek a fast way to raise cash to ride out the recession. But a scarcity of buyers and low bids mean fewer deals are actually getting done.
Sale-leaseback transactions -- where a company sells its office building, plant or other property and then leases it back from the new owner -- is an alternative form of financing that some companies turn to when traditional financing, such as bank loans, are harder to obtain. During the first five months of this year, the value of U.S. sale-leaseback transactions declined to $853 million, compared with nearly $3 billion in the year-earlier period, according to Real Capital Analytics, which tracks deals greater than $5 million.
Part of the drop in transaction value reflects lower real-estate values, but the biggest issue is that buyers and sellers are so far apart on price that many transactions fizzle when sellers walk away. Just 63 deals were completed between January and May, compared with 174 in the first five months of 2008, according to Real Capital Analytics. Sphere: Related Content
Thursday, July 16, 2009
PIC Seeking Sale Leaseback of Five Hypermarkets in Romania
Ziarul Financiar - July 14, 2009
Ilie Penescu, co-owner of the Pic hypermarket chain, wants to secure liquidity by selling the fixed assets of the retailer under a sell and lease back contract, which allows the company to continue its retail operations as a lessee in the current locations. 'We want to sell the assets of the Pic chain to investors and then lease them back.
We have sent letters of intent to investment funds, banks and real estate developers,' said Ilie Penescu. He resorted to financial consultants from the BCR and from investment bank BAC Investment for this project. The chain has five hypermarkets which last year posted 100-120 million euros in sales. In 2007, the Pic stores in Craiova and Braila were appraised at 140 million RON (42 million euros) when they were brought as a contribution to the share capital of the group controlled by the Penescu brothers. Sphere: Related Content
Ilie Penescu, co-owner of the Pic hypermarket chain, wants to secure liquidity by selling the fixed assets of the retailer under a sell and lease back contract, which allows the company to continue its retail operations as a lessee in the current locations. 'We want to sell the assets of the Pic chain to investors and then lease them back.
We have sent letters of intent to investment funds, banks and real estate developers,' said Ilie Penescu. He resorted to financial consultants from the BCR and from investment bank BAC Investment for this project. The chain has five hypermarkets which last year posted 100-120 million euros in sales. In 2007, the Pic stores in Craiova and Braila were appraised at 140 million RON (42 million euros) when they were brought as a contribution to the share capital of the group controlled by the Penescu brothers. Sphere: Related Content
Novant Health Completes Sale Leaseback of 12 North Carolina Health Care Facilities
Winston Salem Journal - July 14, 2009
Novant Health said yesterday that it has sold 12 office buildings in Forsyth County, which it will lease back from the new owners.
CGRE Holdings, a private investment group, acquired the buildings; CGRE and Novant agreed not to disclose the purchase price.
'The transition will be seamless and the people who work or visit these locations will not notice any changes,' said Dean Swindle, the chief financial officer and president of ambulatory services with Novant.
'The proceeds from the sale will be used to help finance capital projects important to our communities such as the construction of community hospitals already under way, renovations, new outpatient facilities, medical technology and equipment.'
Novant Health is a not-for-profit organization and, as a result, the sold properties or a portion of the properties had been tax-exempt.
Under new ownership, these properties will return to the property tax base, where Novant estimated they would provide about $300,000 in annual tax revenues. Sphere: Related Content
Novant Health said yesterday that it has sold 12 office buildings in Forsyth County, which it will lease back from the new owners.
CGRE Holdings, a private investment group, acquired the buildings; CGRE and Novant agreed not to disclose the purchase price.
'The transition will be seamless and the people who work or visit these locations will not notice any changes,' said Dean Swindle, the chief financial officer and president of ambulatory services with Novant.
'The proceeds from the sale will be used to help finance capital projects important to our communities such as the construction of community hospitals already under way, renovations, new outpatient facilities, medical technology and equipment.'
Novant Health is a not-for-profit organization and, as a result, the sold properties or a portion of the properties had been tax-exempt.
Under new ownership, these properties will return to the property tax base, where Novant estimated they would provide about $300,000 in annual tax revenues. Sphere: Related Content
Wednesday, July 15, 2009
Wolseley Seeking £150m Sale Leaseback of Several UK Trade Centres?
Estates Gazette reports that Wolseley, the FTSE 100 building supplier, is investigating a £150m sale-and-leaseback of several of its UK trade centres.
Sphere: Related Content
Saturday, July 04, 2009
Cracker Barrel Closes $58 Million Sale Leaseback of Retail Distribution Center and 14 Restaurants
Trading Markets - July 1, 2009
Cracker Barrel Old Country Store, Inc. (CBRL) announced the closing of the sale-leaseback of its retail distribution center and fourteen of its store locations, with a fifteenth expected to close on or before July 31st. The transactions are expected to produce aggregate gross proceeds of approximately $57.6 million, consisting of $12.4 million relating to the distribution center and slightly more than $3 million for each of the 15 store locations. Sphere: Related Content
Cracker Barrel Old Country Store, Inc. (CBRL) announced the closing of the sale-leaseback of its retail distribution center and fourteen of its store locations, with a fifteenth expected to close on or before July 31st. The transactions are expected to produce aggregate gross proceeds of approximately $57.6 million, consisting of $12.4 million relating to the distribution center and slightly more than $3 million for each of the 15 store locations. Sphere: Related Content
Legend Healthcare Announces $55.5 Million Sale Leaseback of Four Skilled Nursing Facilities in TX
SEC Edgar Web Site - June 30,2009
National Health Investors, Inc. (NYSE:NHI) announced today a $55.5 million purchase/leaseback transaction involving four Texas skilled nursing facilities with 595 beds owned by affiliates of Legend Healthcare, LLC, a privately-owned company (“Legend”). The average age of the facilities is 5 years. Legend is currently a lease customer of NHI and specializes in the operation of transitional care and skilled nursing facilities. Three of the four facilities were purchased by NHI on June 30, 2009, for a total of $39.7 million, with the fourth facility expected to be purchased by NHI for $15.8 million no later than August 1, 2009. The purchases are funded from NHI’s accumulated cash liquidity. The four facilities are being leased to Legend over 15 years at an initial lease rate of 10% plus annual increases. Legend has the option after 7 years to purchase the facilities. Sphere: Related Content
National Health Investors, Inc. (NYSE:NHI) announced today a $55.5 million purchase/leaseback transaction involving four Texas skilled nursing facilities with 595 beds owned by affiliates of Legend Healthcare, LLC, a privately-owned company (“Legend”). The average age of the facilities is 5 years. Legend is currently a lease customer of NHI and specializes in the operation of transitional care and skilled nursing facilities. Three of the four facilities were purchased by NHI on June 30, 2009, for a total of $39.7 million, with the fourth facility expected to be purchased by NHI for $15.8 million no later than August 1, 2009. The purchases are funded from NHI’s accumulated cash liquidity. The four facilities are being leased to Legend over 15 years at an initial lease rate of 10% plus annual increases. Legend has the option after 7 years to purchase the facilities. Sphere: Related Content
Monday, June 29, 2009
CVS Caremark Completes $480 Million Sale Leaseback of 122 Drug Stores Across US
Standard & Poor's - June 26, 2009
Standard & Poor's Ratings Services today assigned its BBB+ rating to CVS Caremark’s $478.8 million 8.353% pass-through certificates due 2031. The certificates are secured by mortgage loans totaling approximately $478.8 million, encompassing 122 drug stores leased to subsidiaries of CVS Caremark Corp. (BBB+).
The rating reflects the credit quality of CVS Caremark Corp., which unconditionally guarantees the tenant's lease obligations. The transaction was evaluated as a credit-tenant loan and is dependent on the credit rating on CVS Caremark Corp. Any change in the rating on CVS Caremark Corp. will result in a change in the rating on the pass-through certificates. Sphere: Related Content
Standard & Poor's Ratings Services today assigned its BBB+ rating to CVS Caremark’s $478.8 million 8.353% pass-through certificates due 2031. The certificates are secured by mortgage loans totaling approximately $478.8 million, encompassing 122 drug stores leased to subsidiaries of CVS Caremark Corp. (BBB+).
The rating reflects the credit quality of CVS Caremark Corp., which unconditionally guarantees the tenant's lease obligations. The transaction was evaluated as a credit-tenant loan and is dependent on the credit rating on CVS Caremark Corp. Any change in the rating on CVS Caremark Corp. will result in a change in the rating on the pass-through certificates. Sphere: Related Content
Friday, June 26, 2009
WP Carey Mulls Sharia Compliant Sale Leaseback Fund
Reuters - June 23, 2009
U.S. real estate financing company W.P. Carey (WPC.N: Quote, Profile, Research, Stock Buzz) is mulling a plan to launch an Islamic compliant fund, a plan first spawned in 1997, as part of its global fundraising efforts, its president said on Tuesday.
Edward LaPuma told the Reuters Global Real Estate Summit the company had set up an Islamic-compliant fund in the late 1990s, which had attracted interest in the Middle East. The company eventually abandoned the launch because the amount of money committed outweighed the opportunities available in the market at that time, LaPuma said. However, as the volume of exciting deals carved out of the deep property market correction continues to grow, LaPuma said a new fund launch was now a much more appealing prospect.
"I think there is a possibility (to launch the fund), and the possibility is better than 50-50," he said. The firm, which has about $600 million in cash, is looking to raise $1 billion to fully exploit a wealth of new market opportunities. Inflows from U.S. investors remain healthy, but the firm is keen to broaden its capital base, LaPuma said, and bolster the $2 million to $3 million generated each day from wealth management companies.
Islamic finance avoids sectors such as alcohol, pornography and weapons, which it regards as forbidden. It also rules out unnecessary risk-taking and demands low leverage. W.P. Carey's business model, which specializes in sale and lease-back activities, potentially conforms to the Islamic principle that demands business transactions be backed or based by tangible assets, such as real estate.
The fund idea proposed in 1997 would have deployed the investors' cash in the U.S., although a new fund would deploy cash in other countries, LaPuma said.
"The Middle East is an area we would like to be, governments are solvent and companies there are very financially stable companies. So for our business are a lot of opportunities," he said. W.P. Carey, however, would be selective in its acquisitions. "The Middle East seems to be getting lumped together as a group, which does a disservice to the region because there certainly are areas that would be much more interesting than ours.
"One thing I have on my agenda is to spend more time trying to understand those various markets and being able to drill down to country level," LaPuma said. Sphere: Related Content
U.S. real estate financing company W.P. Carey (WPC.N: Quote, Profile, Research, Stock Buzz) is mulling a plan to launch an Islamic compliant fund, a plan first spawned in 1997, as part of its global fundraising efforts, its president said on Tuesday.
Edward LaPuma told the Reuters Global Real Estate Summit the company had set up an Islamic-compliant fund in the late 1990s, which had attracted interest in the Middle East. The company eventually abandoned the launch because the amount of money committed outweighed the opportunities available in the market at that time, LaPuma said. However, as the volume of exciting deals carved out of the deep property market correction continues to grow, LaPuma said a new fund launch was now a much more appealing prospect.
"I think there is a possibility (to launch the fund), and the possibility is better than 50-50," he said. The firm, which has about $600 million in cash, is looking to raise $1 billion to fully exploit a wealth of new market opportunities. Inflows from U.S. investors remain healthy, but the firm is keen to broaden its capital base, LaPuma said, and bolster the $2 million to $3 million generated each day from wealth management companies.
Islamic finance avoids sectors such as alcohol, pornography and weapons, which it regards as forbidden. It also rules out unnecessary risk-taking and demands low leverage. W.P. Carey's business model, which specializes in sale and lease-back activities, potentially conforms to the Islamic principle that demands business transactions be backed or based by tangible assets, such as real estate.
The fund idea proposed in 1997 would have deployed the investors' cash in the U.S., although a new fund would deploy cash in other countries, LaPuma said.
"The Middle East is an area we would like to be, governments are solvent and companies there are very financially stable companies. So for our business are a lot of opportunities," he said. W.P. Carey, however, would be selective in its acquisitions. "The Middle East seems to be getting lumped together as a group, which does a disservice to the region because there certainly are areas that would be much more interesting than ours.
"One thing I have on my agenda is to spend more time trying to understand those various markets and being able to drill down to country level," LaPuma said. Sphere: Related Content
WP Carey Seeks to Raise $1 Billion to Pursue Sale Leaseback Deals in Europe and Emerging Markets Worldwide
Reuters - June 23, 2009
U.S. real estate financing firm W.P. Carey (WPC.N: Quote, Profile, Research, Stock Buzz) is looking to raise $1 billion of capital to fund its expansion into European and emerging property markets, its president and international transactions head told Reuters.
"We have many more opportunities outside the U.S. ... I would like to see us do $500 million of deals in Europe in 2009 and that is very realistic," Edward LaPuma told the Reuters Global Real Estate Summit on Tuesday.
"I'd like to do $1 billion but we're doing a lot of all-equity deals at the moment and that really puts a ceiling on things," he said, adding the firm has about $600 million of cash on deposit.
The fundraising plans represent the firm's first active cash call since 2006-2007, when it stopped seeing investment opportunities that were worth splashing out on.
LaPuma said the plans were devised to fully exploit an impending $10 billion to $12 billion wave of real estate disposals from European corporate occupiers, who were considering cashing out of their property as traditional sources of capital dried up.
"I don't know how many large principals shut down fundraising in those years, but if you didn't you had to put the money to work and a lot of deals were done in that period that didn't make a lot of sense," LaPuma said.
"But in today's market, we are seeing more deals than I have seen in the last 15 years. Companies are really being forced to consider financing alternatives," he said. The "sale-and-leaseback" specialist, which in March sealed a $225 million deal to buy and lease back part of the Manhattan headquarters of the New York Times newspaper (NYT.N: Quote, Profile, Research, Stock Buzz), is also scouting opportunities in Brazil, the Middle East, India and China, where LaPuma hoped to conclude the firm's debut deal soon.
"We have been trying to do a deal there (in China) for some time but it is complicated. More people who go there lose money than make money," he said.
"Before the end of the year we will target a few other places we want to be in," LaPuma added, citing Southeast Asia as another particular region of interest.
WP Carey, which has offices in New York, Amsterdam, London and Shanghai, recently closed a $25 million deal in Malaysia, will finalize a $30 million deal in London and a $100 million deal in Hungary in the next week, LaPuma said.
PORTFOLIO SHIFT
The firm, which holds 70 percent of its $10 billion to $11 billion portfolio in the United States, expects its exposure to Europe and emerging markets to rise to 50 percent from 30 percent in the future.
In the meantime, LaPuma said the team was striving to deflect losses inflicted by the biggest banking and property sector meltdowns seen for generations in its core U.S. market.
"We take on corporate credit risk, and as companies are having a more difficult time, we have seen our corporate default risk increase by probably around 400 percent since the beginning of last year," LaPuma said.
"But we have done a good job to manage this, we still have a vacancy rate of around 1 percent across all our funds," he said.
LaPuma said he expected a slow recovery for the U.S. commercial real estate market, largely because of the colossal burden of real estate mortgages weighing on bank balance sheets.
"The last real estate bubble was really developer driven and then they didn't have users for the property. This time there are users for the property, but people paid too much," he said.
"I think you're probably less than halfway through (the U.S. slump) but I don't think it will get a lot worse, I just don't think the recovery will come that quickly." Sphere: Related Content
U.S. real estate financing firm W.P. Carey (WPC.N: Quote, Profile, Research, Stock Buzz) is looking to raise $1 billion of capital to fund its expansion into European and emerging property markets, its president and international transactions head told Reuters.
"We have many more opportunities outside the U.S. ... I would like to see us do $500 million of deals in Europe in 2009 and that is very realistic," Edward LaPuma told the Reuters Global Real Estate Summit on Tuesday.
"I'd like to do $1 billion but we're doing a lot of all-equity deals at the moment and that really puts a ceiling on things," he said, adding the firm has about $600 million of cash on deposit.
The fundraising plans represent the firm's first active cash call since 2006-2007, when it stopped seeing investment opportunities that were worth splashing out on.
LaPuma said the plans were devised to fully exploit an impending $10 billion to $12 billion wave of real estate disposals from European corporate occupiers, who were considering cashing out of their property as traditional sources of capital dried up.
"I don't know how many large principals shut down fundraising in those years, but if you didn't you had to put the money to work and a lot of deals were done in that period that didn't make a lot of sense," LaPuma said.
"But in today's market, we are seeing more deals than I have seen in the last 15 years. Companies are really being forced to consider financing alternatives," he said. The "sale-and-leaseback" specialist, which in March sealed a $225 million deal to buy and lease back part of the Manhattan headquarters of the New York Times newspaper (NYT.N: Quote, Profile, Research, Stock Buzz), is also scouting opportunities in Brazil, the Middle East, India and China, where LaPuma hoped to conclude the firm's debut deal soon.
"We have been trying to do a deal there (in China) for some time but it is complicated. More people who go there lose money than make money," he said.
"Before the end of the year we will target a few other places we want to be in," LaPuma added, citing Southeast Asia as another particular region of interest.
WP Carey, which has offices in New York, Amsterdam, London and Shanghai, recently closed a $25 million deal in Malaysia, will finalize a $30 million deal in London and a $100 million deal in Hungary in the next week, LaPuma said.
PORTFOLIO SHIFT
The firm, which holds 70 percent of its $10 billion to $11 billion portfolio in the United States, expects its exposure to Europe and emerging markets to rise to 50 percent from 30 percent in the future.
In the meantime, LaPuma said the team was striving to deflect losses inflicted by the biggest banking and property sector meltdowns seen for generations in its core U.S. market.
"We take on corporate credit risk, and as companies are having a more difficult time, we have seen our corporate default risk increase by probably around 400 percent since the beginning of last year," LaPuma said.
"But we have done a good job to manage this, we still have a vacancy rate of around 1 percent across all our funds," he said.
LaPuma said he expected a slow recovery for the U.S. commercial real estate market, largely because of the colossal burden of real estate mortgages weighing on bank balance sheets.
"The last real estate bubble was really developer driven and then they didn't have users for the property. This time there are users for the property, but people paid too much," he said.
"I think you're probably less than halfway through (the U.S. slump) but I don't think it will get a lot worse, I just don't think the recovery will come that quickly." Sphere: Related Content
Monday, June 22, 2009
AIB Seeking EUR 20 Million Sale Leaseback of Seven Bank Branches in Ireland
Independent - June 17, 2009
AIB is seeking to raise a further €20m from its real estate portfolio through the sale and leaseback of seven prominent branches around the country.
The bank has instructed CB Richard Ellis to sell its branches in Swords, Navan, Dundalk, Monaghan, Kells, Castleblaney and Maynooth on a sale and leaseback basis.
AIB has unlocked over €1bn in shareholder equity for its core business activities since the sale of AIB Bankcentre in Ballsbridge in 2005/2006 and it has sold 40 branches.
The latest tranche follows on from the recent sale of three branches in Dublin, Naas and Mullingar. All the branches will have 20 year leases with AIB and a break option in year 15. The initial rents will be subject to upward only reviews at five year intervals.
"Since the programme started yields have moved out significantly," Colm Luddy of CBRE comments.
Demand
"However, demand in the investment market is for long leases to strong covenants and these investments will offer investors good value and very secure income."
The Navan AIB premises is expected to make €5m and off a rent of €335,000 will yield 6.5pc. The Dundalk branch will be rented at €239,000 and is valued at €3.4m again yielding 6.5pc.
Swords is expected to make €3.4m too and off a rent of €248,000 will provide in excess of 6.5pc. Maynooth will have a similar yield off a rent of €235,000 and a €3.33m. price.
The Monaghan branch will be leased at a rent of €200,000 and is expected to sell for in excess of €2.7m yielding in excess of 6.5pc as well.
Castleblaney will have an initial rent of €86,000 and is expected to achieve in excess of €1m, yielding over 7pc. The Kells property will offer a similar yield with a rent of €84,000 and a price in the order of €1m.
Another AIB branch in Cork City has been for sale for some months. Sphere: Related Content
AIB is seeking to raise a further €20m from its real estate portfolio through the sale and leaseback of seven prominent branches around the country.
The bank has instructed CB Richard Ellis to sell its branches in Swords, Navan, Dundalk, Monaghan, Kells, Castleblaney and Maynooth on a sale and leaseback basis.
AIB has unlocked over €1bn in shareholder equity for its core business activities since the sale of AIB Bankcentre in Ballsbridge in 2005/2006 and it has sold 40 branches.
The latest tranche follows on from the recent sale of three branches in Dublin, Naas and Mullingar. All the branches will have 20 year leases with AIB and a break option in year 15. The initial rents will be subject to upward only reviews at five year intervals.
"Since the programme started yields have moved out significantly," Colm Luddy of CBRE comments.
Demand
"However, demand in the investment market is for long leases to strong covenants and these investments will offer investors good value and very secure income."
The Navan AIB premises is expected to make €5m and off a rent of €335,000 will yield 6.5pc. The Dundalk branch will be rented at €239,000 and is valued at €3.4m again yielding 6.5pc.
Swords is expected to make €3.4m too and off a rent of €248,000 will provide in excess of 6.5pc. Maynooth will have a similar yield off a rent of €235,000 and a €3.33m. price.
The Monaghan branch will be leased at a rent of €200,000 and is expected to sell for in excess of €2.7m yielding in excess of 6.5pc as well.
Castleblaney will have an initial rent of €86,000 and is expected to achieve in excess of €1m, yielding over 7pc. The Kells property will offer a similar yield with a rent of €84,000 and a price in the order of €1m.
Another AIB branch in Cork City has been for sale for some months. Sphere: Related Content
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