Global Logistic Properties Press Release^{1, 2}

•   GLP continues to grow its fund management platform with the establishment of the joint venture with China Investment Corporation.

•   GLP and CIC will each hold a 50 per cent stake in the portfolio of 15 facilities acquired from LaSalle Investment Management.

•   GLP’s equity investment of JPY 21.22 billion (US$272.9 million³) will be immediately accretive. GLP’s equity investment will be funded by cash on hand.

•   The transaction would have lifted FY2011 PATMI by approximately US$38 million⁴.

Global Logistic Properties Limited (“GLP”), the market leader in modern logistics facilities in China and Japan, today announced that GLP and China Investment Corporation (“CIC”), through their respective wholly owned subsidiaries, have entered into a 50:50 joint venture to acquire 15 modern logistics facilities in Japan from LaSalle Investment Management (“LIM”) for JPY122.6 billion (US$1.6 billion).

A joint venture agreement and purchase and sale agreement were signed on 19 December 2011 by Light Year TMK. The initial equity injected by each party is JPY 21.22 billion (US$272.9 million). GLP will act as the asset manager of the acquired properties. This joint venture is the first collaboration between GLP and CIC.

The portfolio of 15 properties to be acquired will have a Gross Floor Area (“GFA”) of 770,989 sqm with more than 90 per cent of the GFA located within the Greater Tokyo and Osaka areas. The current occupancy of the properties is 98.3 per cent with a weighted average lease expiry of 5.6 years. The portfolio comprises modern facilities with a weighted average building age of only 6.9 years.

Transaction Creates Value for Shareholders

Jeffrey Schwartz, Deputy Chairman of GLP said, “The transaction will be accretive to GLP from day one. The equity portion of this transaction represents less than one year of our operating cash flow created by our current Japan operations.”

“We are very excited about this opportunity, which we believe will create strong value for our shareholders. GLP and CIC are only acquiring the assets that met our investment criteria.” added Mr. Schwartz.

The transaction would have lifted FY2011 PATMI by approximately US$38 million⁵ assuming the transaction had been completed 1 April 2010.

Opportunities for GLP as Japan Continues to Improve its Supply Chain

Ming Z Mei, CEO of GLP said, “Demand in Japan continues to come from companies working to become more competitive and are focused on ensuring they have more efficient warehouses. Companies are also rethinking how their supply chains are managed so they can minimize any risk of disruption in the future.

As a result, demand for quality modern warehouse space is on the rise, while there remains a lack of supply of modern warehouse. The properties we are acquiring come with a strong tenant profile – 67 per cent of the space is utilized by large third-party logistics service providers and 13 per cent is leased by e-commerce companies.”

Mr. Mei added, “After this acquisition, our Japan portfolio will grow approximately 30 per cent to 3.6 million sqm, making our footprint almost 40 per cent larger than our next largest competitor.”

Building GLP’s Fund Management Platform

The joint venture with CIC is a continuation of GLP’s strategy to establish its fund management platform. Earlier this year, GLP initiated its fund management platform with the Japan development joint venture with the Canadian Pension Plan Investment Board.

As GLP continues to grow its fund management platform in Japan, the company will look to expand its market presence and recycle capital within the market. GLP’s equity exposure to Japan will remain stable or go down over time.

Funding

The joint venture has entered into an agreement with a group of domestic Japanese banks for debt financing of JPY 81 billion (US$1.0 billion). GLP will fund its equity commitment of US$272.9 million from internal capital. No new equity needs to be issued to fund this transaction given GLP has US$1.7 billion of cash on its balance sheet as at September 30, 2011.

Completion of Transaction

The acquisition is expected to be completed in the first quarter 2012 when GLP will assume its role as the asset manager.

About GLP (www.glprop.com)

GLP is Asia’s largest provider of modern logistics facilities. It owns, manages and leases out 380 completed properties in 133 logistics parks spread across 28 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of Multi-tenant, Build-to-Suit and Sale-and-Leaseback, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and third-party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on 18 October 2010 (Stock code: MC0.SI).

M3 Capital Partners (HK) Limited served as exclusive financial advisor to Global Logistic Properties in connection with the transaction.

Footnotes:

1.     The initial public offering of the Company was sponsored by Citigroup Global Markets Singapore Pte. Ltd. and J.P. Morgan (S.E.A.) Limited (the “Joint Global Coordinators and Joint Issue Managers”). The Joint Global Coordinators and Joint Issue Managers assume no responsibility for the contents of this announcement.

2.     This news release serves as a summary of the key points of the announcement dated 19 December 2011 that was issued by GLP on the SGXnet and should be read and understood in conjunction with the announcement.

3.     Unless noted, all exchange rates are reported as 1 USD = 77.76 JPY, the closing exchange rate as of 16 December 2011.

4.     Assuming the transaction would have been completed 1 April 2010. Exchange rate 1 USD = 85.73 JPY actual average exchange rate in FY 2011 (1 April 2010 to 31 March 2011).

5.     Exchange rate 1 USD = 85.73 JPY actual average exchange rate in FY 2011 (1 April 2010 to 31 March 2011).

This press release is not an offer of securities for sale or a solicitation of an offer to purchase securities. This release may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements include statements regarding the intent, belief and current expectations of GLP or its officers with respect to various matters. When used in this press release, the words “expects”, “believes”, “anticipates”, “plans”, “may”, “will”, “should” and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale / distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes, and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events and speak only as of the date of this press release. GLP does not undertake to revise forward-looking statements to reflect future events or circumstances. No assurance can be given that future events will occur, that projections will be achieved, or that GLP’s assumptions are correct.

Longbow Real Estate Capital Press Release

Longbow Real Estate Capital (“Longbow”), the specialist UK commercial property debt provider, has appointed David Hunter as Chairman. With over 25 years’ experience as a creative and high-performing fund manager, David Hunter was the Managing Director of Aberdeen Asset Management’s property fund business until 2004, and is now a consultant with non-executive roles in the UK, the Nordic region, South Africa and India.

Longbow recently completed the final closing of its debt fund, Longbow UK Real Estate Debt Investments II (“Fund” II), with £242 million of commitments from a range of blue-chip institutional investors. The Fund has already completed a number of mezzanine and high-yield senior-debt investments, and benefits from a significant pipeline of further opportunities.

Longbow is 51% owned by Intermediate Capital Group (“ICG”), the FTSE 250 specialist investment firm and asset manager providing mezzanine finance, leveraged credit and minority equity with €11.3 billion under management. ICG acquired the majority stake in Longbow in December 2010 to position itself for expansion in the UK real estate debt market.

David Hunter commented: “I am delighted to be joining the Longbow team. The current market presents a perfect opportunity for successful debt investment, both for refinancing and for new acquisitions. Longbow has already proven itself as a leading player in the real estate sector and I look forward to helping to deliver attractive returns for our investors and supporting the growth of the business.”

Martin Wheeler, Longbow’s Joint Managing Partner, said: “We are very pleased that David has joined the team as his depth of experience and contacts in the property fund management world will be of great benefit to Longbow and its investors. Following the successful closing of Fund II, we are looking forward to assisting our borrowers in accessing the undoubted opportunities which exist in the UK property market.”

ICG CEO Christophe Evain added: “Longbow is our first step into the real estate sector and we are confident that the business has great growth prospects due to the significant shortfall in debt provision from the banks. We believe that David’s appointment as Chairman will help realise Longbow’s growth potential.”

About Longbow
Longbow is a commercial property debt specialist, managing third-party institutional equity commitments for real estate mezzanine and senior debt investments in the UK.

Longbow applies a property-up approach to investing, with a hold-to-maturity philosophy, and aligns its interests with investors through co-investment in its funds. Longbow’s fully resourced real estate debt platform provides in-house origination, property underwriting, risk management and asset management.

Longbow’s partners each have in excess of 20 years’ experience in property, capital markets, banking and finance, and the founding partners have worked together since 1998. Throughout this time, Longbow’s management team has accumulated extensive relationships and market intelligence within the UK commercial real estate borrower, banking and advisor communities.

About ICG
ICG specializes in structuring and providing mezzanine finance, leveraged credit and minority equity, with approximately €11.3 billion under management in proprietary capital and third party funds. A FTSE 250 investment firm and fund manager listed on the London Stock Exchange, ICG is one of the largest independent mezzanine providers in the world with investment portfolios in Europe, Asia Pacific and the U.S.

Founded in 1989, ICG also has one of the longest track records of any institutional investor in European senior loans and high yield bonds. ICG’s experienced global investment team operate locally from its head office in London and offices in Paris, Madrid, Stockholm, Frankfurt, Amsterdam, Hong Kong, Sydney and New York.

Further information is available at: www.icgplc.com

About David Hunter
David Hunter is an International Property Consultant, specializing in supporting the creation, operation and liquidation of property funds and companies. He is chairman of two public companies and director of another, overseeing investments in India, the Nordic region, Russia and South Africa. He also has corporate advisory roles in the UK and France.

Hunter’s background is as a leading fund manager, most significantly from 2001 until 2004 as Managing Director of Aberdeen Asset Management’s £6.5 billion UK and international property fund business.

He was President of the British Property Federation in 2004 and actively involved in the introduction of REITs to the UK. He was also inaugural Chairman of the Scottish Property Federation.

M3 Capital Partners acted as exclusive financial advisor to Longbow.

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Property EU

Global Logistic Properties and Canada Pension Plan Investment Board Joint Press Release

Global Logistic Properties Limited (“GLP”) and the Canada Pension Plan Investment Board (“CPPIB”) today announced that they have formed a joint venture (“Japan Development Fund” or the “Fund”) to develop and hold institutional quality, modern logistics facilities. Each partner will invest US$250 million of equity over a projected three-year investment horizon. The targeted leverage is 50% loan-to-value (after stabilization) and the Fund is open-ended with a long-term investment horizon. The Japan Development Fund will focus on building multi-tenant and build-to-suit facilities mainly in the greater Tokyo and Osaka areas in Japan. An attractive site in Tokyo has been identified as the first potential development for the Fund.

GLP is the market leader in modern logistics facilities in China and Japan. CPPIB is a global investment management organization that invests the assets of the Canada Pension Plan and manages a fund that totals C$153.2 billion.

Mr. Jeffrey H. Schwartz, Deputy Chairman and Chairman of the Executive Committee of GLP said: “Developing logistics facilities in Japan is an attractive use of capital and we are extremely pleased to launch our Japan development program. The Fund will be GLP’s exclusive vehicle for logistics development in Japan. We are seeing solid demand for logistics development in Japan driven by our strong customer relationships, solid track record and deep experience. We are delighted to have formed a long-term strategic partnership with CPPIB, a leading global investment manager, which will enable GLP to earn solid returns on its capital while managing risk.”

Graeme Eadie, Senior Vice-President, Real Estate Investments, CPPIB, said: “The Japan Development Fund provides CPPIB an entry into Japan’s logistics facilities market and represents our first direct real estate investment in this country. The growing demand in Japan for modern third-party logistics facilities provides an attractive investment opportunity for us. We look forward to partnering alongside GLP who has a proven track record and is aligned with our strategy to develop and hold these assets over the long term.”

About GLP (www.glprop.com)
GLP is Asia’s largest provider of modern logistics facilities. It owns, manages and leases out 337 completed properties in 127 logistics parks spread across 27 major cities in China and Japan, forming an efficient logistics network with properties strategically located in key logistics hubs, industrial zones and urban distribution centres. By providing flexible solutions of multi-tenant, build-to-suit and sale-and-leasebacks, GLP is dedicated to improving the supply chain efficiency for strategic expansion goals of the most dynamic manufacturers, retailers and third-party logistics companies in the world. The Group was listed on the Mainboard of Singapore Exchange Securities Trading Limited on October 18, 2010 (Stock code: MC0.SI).

About CPPIB (www.cppib.ca)
CPPIB is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2011, the CPP Fund totaled C$153.2 billion.

M3 Capital Partners (HK) Limited served as exclusive financial advisor to Global Logistic Properties in connection with the formation of the Japan Development Fund.

Archstone Press Release

Archstone, a leader in apartment investment and operations, announced today that it has entered into a joint-venture agreement with Allianz Real Estate and Canada Pension Plan Investment Board (“CPPIB”).

As part of the agreement, Allianz and CPPIB have invested approximately $108 million each into the recapitalization of two Archstone communities, Archstone North Point in Boston and Archstone Woodland Park in the Washington D.C. metro area. Archstone will retain a 20 percent stake in both communities, with CPPIB and Allianz owning the remaining 80 percent in equal proportion.  Archstone and CPPIB have also formed a three-year development joint venture program.

“We are very excited to be able to partner with Allianz and CPPIB, two world-class organizations,” said R. Scot Sellers, Archstone’s Chief Executive Officer. “Our entire organization is committed to providing outstanding results to our new partners and we look forward to establishing a long-term relationship that increases in size as we move forward together.”

Archstone was represented by M3 Capital Partners and Kirkland & Ellis LLP. Allianz was represented by Goulston & Storrs and CPPIB by Torys.

About Archstone
Archstone is a recognized leader in apartment investment and operations. The company’s portfolio is concentrated in many of the most desirable neighborhoods in and around Washington, D.C., Los Angeles, San Diego, San Francisco, New York, Seattle and Boston. Archstone strives to provide great apartment rentals and great service to its customers – backed by service guarantees. As of March 31, 2011, the company owned or had an ownership position in 428 communities located in the United States and Europe, representing 79,891 units including units under construction. Utilizing this tremendous amount of expertise and institutional knowledge, Archstone now also offers comprehensive advisory services to owners and lenders who want to maximize the value of their assets through Archstone Real Estate Advisory Services.

About Allianz
Allianz Real Estate is the strategic center of expertise in real estate within the Allianz Group and a leading international real estate investment and asset manager. Allianz Real Estate develops and executes worldwide tailored portfolio and investment strategies on behalf of the Allianz companies, considering direct as well as indirect investments. The operation management of investments and assets is currently performed in five international subsidiaries and hubs in Germany, France, Italy, the United States and Asia / Pacific. The headquarters of Allianz Real Estate are located in Munich and Paris. Allianz Real Estate has about €18.8 billion of assets under management.

About CPPIB
CPPIB is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (“CPP”) to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of CPP and at arm’s length from governments. At March 31, 2011, the CPP Fund totaled $148.2 billion. For more information about CPPIB please visit www.cppib.ca.

In addition to historical information, this press release contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone operates, and beliefs and assumptions made by management. While Archstone management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release.

Multi-Housing News

Laguna Niguel, California-based Raintree Partners has completed the acquisition of 1200 Riverside Apartments. The 270-unit property located in Burbank, California, was purchased for $43.15 million, or $159,814 per unit.

No broker was involved in the sale and the purchase was financed with a new $30 million Fannie Mae loan originated through Greg Reed and Kristen Croxton of Deutsche Bank Berkshire Mortgage.

“1200 Riverside recently went through an $8.4 million renovation of the interior and exterior of the property,” says Jeff Allen, CEO of Raintree Partners. “Although the project was originally constructed in the mid-1960s, the renovation, which included an updated façade, replacement of all major building systems and substantial upgrades to the common areas, makes the property look and feel new.”

The community, which is currently 98.5 percent occupied, is comprised of six buildings on 4.17 acres. Amenities include a roof deck lounge, clubhouse, swimming pool and spa, fitness center, covered parking, and four laundry centers. There are also 70 horse stables and easy access to the adjacent Los Angeles Equestrian Center.

Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. Raintree Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

Read More About Raintree Partners >

News-Press

Southwest Florida’s rebounding real estate market reached another milestone on Monday when Kitson & Partners closed on the purchase of Naples’ highly prized Tuscany Reserve, a 450(+/-) acre high-end golf course community located on Livingston Road. The Palm Beach Gardens-based company announced plans to quickly resume development of world class club facilities and luxury homes to complement the acclaimed Tuscany Reserve golf course.

Best known to Southwest Florida residents for the sustainable new city being created at Babcock Ranch, over the past 18 years Kitson & Partners has successfully developed and managed several large-scale master planned communities both in Florida and the Northeast United States. Kitson & Partners has an investment strategy that focuses on high-quality development projects located in high-growth submarkets throughout the state of Florida. Last December, after 14 years of ownership, the company completed the successful turnover of Ibis Golf & Country Club in West Palm Beach when club operations were handed over to the members.

Nearly 80 percent of the infrastructure for Tuscany Reserve has been completed. WCI, the original developer, sold the property to Bahrain-based Addax Bank in 2008. While the development has largely been placed on hold since its sale in 2008, Addax has invested significant capital into the maintenance and operations of the project over the past two years. “We decided early on that it was important to maintain and enhance the world class characteristics of Tuscany Reserve in order to preserve the value,” said Wael Aburida, acting Chief Executive Officer of Addax Bank. “We are confident in the ability of the Kitson team to achieve the full potential of this exceptional community.”

According to Kitson & Partners, the turnkey condition of the property makes it the crown jewel of residential real estate development opportunities in one of the nation’s most premier markets.

“As the economy rebounds we believe Southwest Florida’s housing market will lead the way,” said Syd Kitson, Chairman and CEO of Kitson & Partners. “Real estate always comes down to location – and Southwest Florida remains one of the best places to live in the country.”

The Tuscany Reserve golf course, a rare collaborative effort of renowned golf course architects Pete Dye and Greg Norman, already ranks among the top courses in Florida. The community is approved for up to 799 residential units, but according to Kitson & Partners, the final number and mix of single family and coach homes will be driven by the market.

“We are fortunate to be buying this project at the right time, in one of the most attractive markets in the State of Florida,” said Tom Hoban, Managing Partner and an Owner of Kitson & Partners. “The Naples market is largely built-out. There are very few projects that can offer new home construction opportunities to homebuyers in this market over the next three to five years. With entitlements for up to 799 new homes, a world class golf course and significant infrastructure already in place, Tuscany Reserve is extremely well-positioned to meet the growing demand in the marketplace and emerge from the downturn as one of premier communities in Naples.”

In addition to determining the proper product mix and price points, Hoban said lifestyle amenities are a priority. “The golf course is exceptional, and the landscaping exquisite. Once we add a world class clubhouse facility, Tuscany Reserve will deliver a lifestyle experience that is unparalleled in the marketplace.”

In addition to the Tuscany acquisition announced today, Kitson & Partners recently closed on the purchase of a 60-acre redevelopment tract in Florida’s most densely populated county. The Bay Pines property in Pinellas County presents a unique opportunity for the company to pursue large-scale mixed-use development in an infill location. In all of its real estate activities, Kitson & Partners is focused on creating phenomenal places that offer a unique lifestyle to meet the diverse needs of families, neighbors, businesses, surrounding communities, and the natural environment.

This article first appeared in News-Press. For more articles from News-Press, please click here.

Kitson & Partners was established in 1992 and specializes in master-planned community developments, including residential and commercial uses (typically retail) in Florida. Kitson & Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners. 

Additional Press Coverage:
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Read More About Kitson & Partners >

Multi-Housing News

Raintree Partners, a Laguna Niguel, California-based real estate investment and development company, has completed the acquisition of Meadowbrook Apartments, a 125-unit multifamily property in Livermore, California.

The purchase price was $16.7 million, according to Jeff Allen, CEO of Raintree Partners. This is Raintree’s eighth multifamily property acquisition in 2010, bringing the firm’s holdings in the California market to 10 multifamily communities.

“Medowbrook Apartments is located in a very desirable, supply-constrained community within the job-rich Tri-Valley Region of the Bay area,” says Allen. “These factors have enabled the property to maintain a high occupancy rate and consistent rental income despite the current economy, making it an attractive long-term investment for Raintree.”

The property was brokered by John McCulloch, Curtis Gardner and Kenneth Meislin of ARA Pacific and financing was provided by Fannie Mae and arranged by Richard Olrich of Centerline Capital Group.

“The acquisition of Meadowbrook Apartments is consistent with Raintree’s strategy of buying well-located 15- to 30-year old properties in strong markets and with the potential to add value through rehabilitation and repositioning”, says Aaron Hancock, director of acquisitions for Raintree.

Hancock added that Meadowbrook Apartments is comprised of nine, two-story buildings located at 156 North Murrieta Blvd. in Livermore. The property was built in 1981 and offers one-, two- and three-bedroom floor plans. Select units feature wood-burning fireplaces, while each unit contains a private patio or balcony, and air conditioning. The apartment community offers a swimming pool, covered parking, basketball court, children’s play area and two laundry centers.

According to Jason Check, Raintree’s development director, “Raintree plans a full re-positioning of the asset. This re-positioning will include upgrades to the signage, exterior upgrades including paint, and landscape improvements, as well as upgrades to the community’s amenities. Raintree will also conduct full renovation of the individual unit interiors including upgraded cabinets, countertops, appliances, flooring and fixtures.”

“With the acquisition of Meadowbrook, we have acquired eight, class A and B properties in very desirable markets in California this year,” says Hancock. “Raintree plans to continue seeking out appropriate opportunities in 2011. As a ‘buy and hold’ multifamily investment company, we see these value-add type of properties as attractive long-term investments,” adds Hancock.

Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. Raintree Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

Additional Press Coverage:
OC METRO 

Read More About Raintree Partners >

Longbow Real Estate Capital Press Release

Intermediate Capital Group (“ICG”), the FTSE 250-listed investment firm and fund manager, and Longbow Real Estate Capital, UK real estate debt specialist, today announced a partnership in which ICG will acquire a 51% stake in Longbow. Through this transaction, ICG will support the future growth of Longbow’s business, allowing ICG, exclusively through its investment in Longbow, to expand into the UK real estate debt market.

Commenting on the transaction, Christophe Evain, CEO of Intermediate Capital Group, “We see very attractive long-term opportunities in the UK commercial real estate debt market. Partnering with Longbow will enable ICG and its shareholders to benefit from Longbow’s deep knowledge, and origination and execution expertise to capitalise on the significant undersupply of real estate mezzanine finance in the UK. Given Longbow’s long-term specialist focus in the UK real estate debt market, this partnership is highly complementary to ICG’s existing business.”

Kevin Cooper, co-founding Partner of Longbow, commented “ICG has a market-leading track record on the provision of mezzanine finance to the corporate market. We share common values and we are delighted to be working closely with them. Longbow’s borrowers can look forward to increased access to capital and our limited partners will benefit from ICG’s mezzanine experience, rigorous investment culture and its institutional fund management infrastructure.

About ICG
Intermediate Capital Group specialises in structuring and providing mezzanine finance, leveraged credit and minority equity, with approximately €12 billion under management in proprietary capital and third party funds.

A FTSE 250 investment firm and fund manager listed on the London Stock Exchange, ICG is one of the largest independent mezzanine providers in the world with investment portfolios in Europe, Asia Pacific and the U.S. Founded in 1989, ICG also has one of the longest track records of any institutional investor in European senior loans and high yield bonds. ICG’s experienced global investment team operates locally from its head office in London and offices in Paris, Madrid, Stockholm, Frankfurt, Amsterdam, Hong Kong, Sydney and New York.

About Longbow
Longbow Real Estate Capital is a commercial property debt specialist, managing £150 million of third-party institutional equity commitments for real estate mezzanine and senior debt investments in the UK.

Longbow applies a property-up approach to investing, with a hold-to-maturity philosophy, and aligns its interests with investors through co-investment in its funds. Longbow’s fully resourced real estate debt platform provides in-house origination, property underwriting, risk management and asset management.

Longbow’s partners each have in excess of 20 years experience in property, capital markets, banking and finance and the founding partners have worked together since 1998. Throughout this time, Longbow’s management team has accumulated extensive relationships and market intelligence within the UK commercial real estate borrower, banking and advisor communities.

M3 Capital Partners is acting as exclusive financial advisor to Longbow.
 

Signature Senior Lifestyle Press Release

Signature Senior Lifestyle (“Signature”), which seeks to offer a modern alternative to traditional UK nursing care homes through its “Wellbeing Home” design and resident service offerings, is pleased to announce that it has formed a development partnership (the “Partnership”) with UK institutional investors to develop and operate residential senior care communities in London and the south east of England. Institutional investors, including clients of CBRE Investors, are committing equity to the Partnership alongside Signature.

At closing, the Partnership acquired from Signature the “Moorlands Lodge” property currently under development in Hindhead, Surrey which is expected to be completed in 2011 and will provide 97 purpose-built apartments offering high-quality accommodation and care to seniors.

The Partnership has an initial term of 10 years, and aims to build upon the Moorlands Lodge acquisition and develop a £100 million portfolio (at cost) of purpose-built modern care homes over the next three years. Signature will act as development manager, venture manager and operate the assets under long-term operating agreements.

Commenting on the transaction, Thomas B. Newell, Chief Executive Officer of Signature, said:

“We are delighted to have closed this new Partnership with a group of high-quality institutional investors who are backing our development growth plan for London and the Southeast. Signature Wellbeing Homes offer senior citizens a place to feel at home, in specially designed suites, where they can enjoy quality meals and a full range of activities. We offer personalised care as and when needed through bespoke care plans, all in a fully registered care home with nursing environment”. 

M3 Capital Partners acted as exclusive financial advisor to Signature.

Additional Press Coverage:
Real Estate Capital

OC METRO

Laguna Niguel-based Raintree Partners has acquired two multifamily properties in San Diego from a private individual for $65 million. The deal brings the real estate investment and development firm's stake in the market to $130 million.

The new portfolio includes the 132-unit Flower Fields Apartments in Carlsbad, which Raintree purchased for $31.5 million, and the Canyon Hills Apartments in Rancho Peñasquitos. The 128-unit project was sold for $33.5 million.

“Each property in this portfolio is located in a very desirable area of San Diego County,” said Jeff Allen, CEO of Raintree. “The properties, which combined consist of 260 units, are representative of our multifamily investment strategy. They ... have the potential for attractive long-term growth in the return on our investment as the economy improves.”

The 19-building Flower Fields Apartments is 99 percent occupied and is located three miles from downtown Carlsbad. Canyon Hills spans 17 buildings and is 95 percent occupied. It is located five miles north of Miramar Marine Corps Air Station and 20 miles north of downtown San Diego.

“We stayed on top of the opportunity when the seller acknowledged he planned to potentially list his property for sale early this year,” said Jason Check, the company's development director. “Ultimately we were at the right place, with the right offer, at the right time, and our involvement alleviated the seller of the effort to put the properties through a formal marketing process.”

Over the past 18 months, the company's apartment-community portfolio has grown to nine properties, according to the firm.

 “With the closing of these deals, in addition to the Trieste Apartments acquisition we closed about a month ago," added Aaron Hancock, Raintree’s director of acquisitions, "we are now positioned with $130 million of multifamily properties in some of San Diego’s strongest submarkets, including University Towne Center in La Jolla, Carlsbad and Rancho Peñasquitos.”

This article first appeared in OC METRO. For more articles from OC METRO, please click here.

Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. Raintree Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

Additional Press Coverage:
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M3 Press Release

M3 Capital Partners Ltd (“M3”) is pleased to announce that it has today completed the purchase of Extra MSA Holdings Limited (“Extra”) from Swayfields Extra MSA Holdings Limited (in administration) (the “Vendor”) for its investment affiliate Evergreen Real Estate Partners LLC (“Evergreen”). Extra (which will continue to operate under the “Extra” brand name) is a UK-based operator and developer of motorway service stations. Extra owns 8 operational sites as well as a development site at Cobham, Surrey. Former Swayfields / Extra Group Managing Director, Andrew Long, will return to serve as group Chief Executive Officer.

Ian Green, Rob Hunt and Edward Macnamara of PricewaterhouseCoopers LLP (“PwC”) were appointed as joint administrators (the “Administrators”) of Swayfields and certain other companies in March 2010.

A syndicate of three banks which include Royal Bank of Scotland, Barclays Corporate and Santander Corporate Banking have provided acquisition facilities to Evergreen Extra MSA Holdings Limited, the acquisition vehicle established by M3 for the purposes of this transaction. M3 were advised by Macquarie Capital Advisors, Clark Willmott, Ernst and Young and BTG Corporate Finance.

Craig Beevers, Partner at M3, said:
“We are delighted to have completed this acquisition which is very much in line with M3’s investment strategy of acquiring and operating best-in-class real estate assets. Extra is an excellent business that offers the motorist value for money pricing for well-known, branded products at strategically located sites on the motorway network. It has the most modern and well designed portfolio of facilities in the UK which seeks to offer customers the best experience on the motorway network. We are very much looking forward to working with Andrew Long and the existing staff to take the business forward and build on the established business platform. During the transaction, we have established sound working practices with the Administrators and Lloyds Banking Group and have consolidated relationships which we hope to further build on in future transactions.”

Ian Green, partner at PwC said:
“Whilst Swayfields had significantly expanded its operations over recent years, it struggled to service its increasing debt commitments. Consequently, in March 2010, with limited options available to it, the Group sought the protection of administration.

Since then we, along with the employees, have worked exceptionally hard to protect value in the Group and maximise realisations for creditors. We are now delighted to be able to announce the sale of Extra which represents the successful conclusion of a long and detailed sales process.

In addition to realising significant value for the creditors, we are pleased that this transaction will safeguard the jobs of the existing employees of Extra.”

Extra MSA was acquired by Evergreen in October 2010 and is focused on the development, ownership and operation of motorway service areas. Extra MSA is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners. 

Additional Press Coverage:
EGi
Property Week
Real Estate Capital

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Multi-Housing News

Raintree Partners completed the acquisition of Trieste Apartment Villas, a 302-unit multifamily community in the La Jolla area of San Diego County, California. The purchase price was $68.2 million, according to Jeff Allen, CEO of Raintree Partners.

“Trieste Apartment Villas is a perfect match for Raintree Partners’ long-term investment strategy,” Allen explains. “The property is located in the very desirable rental market of University Towne Center, the county’s largest employment corridor and in close proximity to the University of California at San Diego. Trieste is within walking distance to attractive retail, dining and entertainment amenities. The property has maintained a strong occupancy rate and offers a compelling value-add scenario given that more than half of the units remain un-renovated.”

According to Aaron Hancock, Raintree’s director of acquisitions, the property was financed with a 10-year fixed rate loan from Fannie Mae. Hancock indicated that the $44.5 million loan carried an interest rate of 4.18 percent, with 2.5 years of interest-only payments and then a 30-year amortization. The loan was arranged by Greg Reed and Kristen Croxton of Deutsche Bank Berkshire Mortgage.

Kevin Mulhern, Dixie Hall and Rachel Hemingway of CB Richard Ellis represented the seller, Trieste Apartments LLC. Raintree Partners represented itself.

According to Jason Check, Raintree’s development director, Raintree has planned several upgrades in addition to the unit interiors to improve the multifamily property. Upgrades include renovation of the existing clubhouse and relocation of the leasing office. In addition, improvements will be made to the property’s fitness center, along with improved landscaping and signage for the property.

The Trieste Apartments, located at 3950 Mahaila Avenue include one- and two-bedroom units configured as flats, lofts, and a single unit with a townhouse plan. The property consists of 11 buildings on 6.9 acres and is currently more than 95 percent occupied. The property is gated and includes two swimming pools, washer / dryers in the unit interiors, a clubhouse, a fitness room and a business center. The renovation of the units began in 2007. The units have upgrades such as granite counters, upgraded cabinets, stainless steel appliances, new plumbing fixtures in both the kitchen and bathroom, and new flooring throughout.

Over the past 15 months, Raintree has acquired six multifamily properties in California.

Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. Raintree Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

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OC METRO

Raintree Partners, a real estate investment and development company based in Laguna Niguel, has completed the purchase of a 264-unit multifamily community.

The property, Boulder Creek Apartments in Riverside, is set against the Box Springs Mountains near the 9, 215 and 60 freeways and includes studio, one- and two-bedroom units with balconies and bay windows.

“While the Inland Empire real estate market has been hit hard by the downturn in the economy, this particular apartment community has held the strongest occupancy rate among its competitive set,” said Raintree Partners CEO Jeff Allen. “The property is currently 96 percent occupied. Its location near the University of California at Riverside provides a steady stream of prospective residents.”

Despite the property’s relative age – 25 years – the $24.6 million purchase price was reasonable, considering the location, physical condition of the units and documented financial performance of the premises, said Raintree’s Director of Acquisitions Aaron Hancock.

The company plans to begin interior and exterior renovations on the property in the next 18 to 24 months.

“Raintree Partners is a buy-and-hold investment and development company,” said Hancock. “We make our investments with long-term goals in mind and believe in this type of property, which has great current fundamentals and terrific future value-add potential. A nice benefit was the fact that the asset became available for acquisition during this period of very low debt rates.”

This article first appeared in OC METRO. For more articles from OC METRO, please click here.

Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. Raintree Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

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EGi

The King’s Cross Central Limited Partnership (“KCCLP”) has signed an agreement with student housing specialist Urbanest UK to develop a 657-bed student accommodation block at its £2 billion King’s Cross Central development. Plans for the Glenn Howells Architects-designed scheme have been submitted to Camden council.
 
Subject to consent, KCCLP and Urbanest hope to have the building ready for occupation by the 2013/14 academic year. Urbanest will develop and own the 27-storey building under a long lease from KCCLP.

Urbanest was founded in January 2008 and is focused on the development, ownership and operation of branded student accommodation in Australia and the UK. Urbanest is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

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Kitson & Partners Press Release

Palm Beach Gardens – Palm Beach Gardens based developer Kitson & Partners today announced its purchase of a 60-acre tract at the core of Florida’s most densely populated county. The Pinellas County site, located within the city of Seminole, presents a unique opportunity for the company to pursue large-scale mixed-use development in an urban environment.

The previous owner of the property known as Bay Pines was planning for strictly residential use, but was unable to move forward with development of the 1,119 condo, apartment and townhome units approved for the site. Kitson & Partners has a different vision for the property – a mixed-use development to create a more livable, sustainable lifestyle for future residents as well as those living and working in surrounding neighborhoods.

“Kitson & Partners is looking forward to working with the city of Seminole and Pinellas County on a land use plan that will make Bay Pines a point of pride for the entire community,” said Steve Messing, president of the commercial division for Kitson & Partners. “It is rare to find property so well suited for a vibrant mix of services – from hotel and retail space to apartments, townhomes and assisted living components.”

The vast majority of Pinellas County was developed between 1930 and 1960 and has been largely built-out for several decades. Kitson & Partners sees strong potential in a market that is supply-constrained with aging residential and commercial stock, and very limited future supply.

The location of Bay Pines is one of the project’s most important assets. The property is just 10 miles from downtown St. Petersburg, 12 miles from Downtown Clearwater, 25 miles from MacDill Air Force Base and 26 miles from Downtown Tampa. Located at the intersection of three high capacity roadways, Bay Pines can offer residents high-quality access to employment centers throughout the region – and homes that are just 1.5 miles from Madeira Beach.

“As the only large-scale redevelopment opportunity in southern Pinellas County, Bay Pines is a very attractive site for new residential development,” said Andrew Carmody, senior vice president for Kitson & Partners. “You’re not going to find another large-scale development property to rival Bay Pines’ proximity to existing jobs as well as sought-after amenities like the Pinellas Trail and Madeira Beach.”

Surrounded by mature communities and a dense population base, the property is also attractive for a variety of retail, residential, medical and hotel uses. Commercial and retail competition within the trade area is currently limited. In addition to serving existing and future residents, businesses locating in Bay Pines will benefit from their close proximity to the Bay Pines VA Medical Center. The 297-acre medical complex, located across the street from the development property, serves 100,000 patients who make more than a million visits to the center each year.

Kitson & Partners was founded in 1992 and has an established track record of conscientious master planning and development. The company currently owns approximately 20,000 entitled residential units, 6.2 million square feet of commercial entitlements and 1.6 million square feet of existing retail shopping centers in Florida. With substantial institutional backing, Kitson & Partners is focused on growing its asset base through the acquisition of high-quality residential and mixed-use development projects throughout Florida.

Kitson & Partners was established in 1992 and specializes in master-planned community developments, including residential and commercial uses (typically retail) in Florida. Kitson & Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

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Multi-Housing News

Investor and developer Raintree Partners has acquired a portfolio of three multifamily properties located in Claremont and Pomona for $30.6 million from Pacific Property Co.

“Our ability to perform was evidenced by the fact that we were able to complete our due diligence and close three separate loans totaling $23.1 million within approximately one month’s time,” notes Jeffrey B. Allen, CEO of Raintree Partners.

“Pricing on Class A multifamily properties is generally too aggressive for us, so instead we have been seeking out Class B opportunities in good submarkets and found these three properties located in close proximity to one another,” explains Allen. “We were the only buyer who considered them a portfolio and bid on all three as a single acquisition.”

According to Aaron Hancock, Raintree’s director of acquisitions, Raintree Partners plans to invest significant capital into the three properties addressing both interior and exterior upgrades. All three properties are located within two miles of one another, in close proximity to Cable Airport and several universities, representing approximately 11,000 students. Jason Check, development director at Raintree, will be responsible for managing the capital improvement plan for the portfolio.

The first of the three multifamily properties is Southridge Apartments located in Pomona, California. This 80-unit property is a two-story walk up with both one- and two-bedroom units and is partially renovated with central air conditioning.

The second property is Springhill Townhomes in Claremont, California. This property has 64 two-, three- and four-bedroom townhomes and is lightly renovated with central air conditioning, washer / dryer hook ups and detached garages.

The third property is The Village at Claremont, in Claremont, California. This unique property consists of 84 single and two-story units ranging from two to three bedrooms each. The property is also lightly renovated, with central air conditioning, and detached garages.

Over the past 15 months, Raintree has acquired five multifamily properties in California.

Raintree Partners was established in 2007 and is focused on value-add acquisitions, ground-up development or redevelopment, and ownership of multifamily properties in California. Raintree Partners is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

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Capital Southwest Corporation Press Release, as summarized on Reuters.com on June 10, 2010

Capital Southwest Corp. announced that it has completed its transaction with NorthStar Memorial Group, LLC. NorthStar has acquired 100% of the outstanding common stock of Capital Southwest’s wholly owned portfolio company, Lifemark Group, for $84.7 million in cash. Pursuant to the terms of the Stock Purchase Agreement signed April 29, 2010, the $84.7 million purchase price will be reduced by the amount of Lifemark’s outstanding indebtedness on the closing date, along with costs and expenses associated with the distribution of certain assets. Additionally, the purchase price is subject to customary adjustments based on the amount of Lifemark’s net assets at the time the sale is completed. As a result, Capital Southwest estimates that $46.2 million of the proceeds will remain and be retained by the company for future investment and $24.4 million will be paid in long-term capital gains tax credit on behalf of its shareholders.

NorthStar Memorial Group was established in 2004 and is focused on the acquisition and ownership of cemeteries and funeral homes in select markets within the U.S. NorthStar Memorial Group is majority-owned by Evergreen Real Estate Partners, a fund managed by Evergreen Investment Advisors, which is a wholly owned subsidiary of M3 Capital Partners.

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