M2 EQUITYBITES-March 20, 2015-M and A Navigator: Deal pipeline -20 March
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The following is a list of deals covered in detail by M and A Navigator this week:
-ARES MANAGEMENT ACQUIRES GERMAN RESIDENTIAL PROPERTY PORTFOLIO
US-based alternative investment manager Ares Management L.P. (NYSE: ARES) has added to its existing residential portfolio in Germany through the acquisition by funds it manages of an additional 303 residential and 28 commercial units, totaling 22,000 square meters of lettable space, the company said on Friday. The properties are located in North Rhine-Westphalia and were acquired from a fund managed by Norway-based Obligo Investment Management. Ares now owns more than 2,000 units across Germany.
-COPT ACQUIRES BALTIMORE, USA BUILDING FOR USD 63.5M
US-based office REIT Corporate Office Properties Trust (NYSE: OFC) has acquired a 368,200 square foot building for USD 63.5m, the company said on Friday. The 24-story building is 95% leased and is located at 250 West Pratt Street, a premium office address in Baltimore, Maryland's Pratt Street Corridor near the Inner Harbor.
-ALTOR FUNDS BUY 24.5% OF SWEDISH CALL CENTRE FIRM TRANSCOM
Funds advised by Swedish private equity group Altor Fund Manager AB have acquired 6.4m shares in Swedish customer contact centre company Transcom Worldwide (STO: TWW) from Investment AB Kinnevik, Transcom said on Friday. This amounts to 24.5% of the company's ordinary shares. Following this transaction, Investment AB Kinnevik will retain 1.9m shares in Transcom, corresponding to 7.4% of the ordinary shares.
-ENGLISH ROSE EXTENDS OFFER FOR UK RETAILER BEALES
UK-based investment firm English Rose has extended its offer for the entire issued and to be issued share capital of UK retailer Beales until until 1.00 pm GMT on 2 April 2015, the company said on Friday. The offer, which was accepted on 19 January 2015, values Beales at around GBP 1.2bn (USD 1.78bn). It contained an acceptance condition of not less than 75%.
-CUSTODIAN REIT BUYS TWO LEEDS, UK INDUSTRIAL PROPERTIES FOR GBP 2.36M
UK property investment company Custodian REIT Plc (LSE: CREI) has acquired two industrial units in Leeds, UK occupying 41,077 sq ft, with links to UK motorways the M1 and M621, the company said on Friday. The units are let to Nationwide Crash Repair Centres Ltd. and Sovereign Air Movement Ltd. on leases expiring on 24 December 2020 and 15 April 2021 respectively, with total passing rent of GBP 187,500 per annum, reflecting a net initial yield of 7.51%. Custodian said that the agreed purchase price of GBP 2.36m (USD 3.50m) was funded from the company's cash resources, with net borrowings following the acquisition of 7.1% loan to value.
-BRITISH LAND, TESCO CLOSE GBP 733M JV PROPERTY SWAP
UK-based real estate company British Land has completed a GBP 733m (USD 1.08bn) property exchange transaction with UK supermarket chain Tesco, the company said on Friday. Under the terms of the transaction, British Land has sold its 50% interest in a joint venture portfolio of 21 stand-alone foodstores to Tesco and acquired Tesco's 50% interest in two joint venture portfolios predominately comprising Tesco-anchored shopping centres and retail parks.
-BETTER CAPITAL FUND ACQUIRES CAV AEROSPACE
Guernsey-based closed ended investment company Better Capital PCC Ltd. has acquired the entire issued share capital of UK-based specialist aerospace manufacturing business CAV Aerospace Ltd. through its BECAP12 Fund LP for an initial investment of GBP 40m (USD 59.24m), the company said on Friday. The purchase was made from an overseas holding company. (CAV Aerospace has been operating as a subsidiary of Japan's Shin Nippon Koki Co. Ltd.). The BECAP12 Fund LP is one of two protected cells, (the 2009 and 2012 funds), operated by Better Capital. The 2012 cell was set up to invest in struggling companies.
-SHELL'S NIGERIA JV SELLS OIL MINING LEASE STAKE FOR USD 737M
Anglo-Dutch oil and gas company Royal Dutch Shell's The Shell Petroleum Development Co. of Nigeria Ltd. joint venture operator has completed the assignment of its 30% interest in oil mining lease 18 and related facilities in the Eastern Niger Delta, the company said on Friday. Its interests in OML18 were assigned to Eroton Exploration and Production Co. Ltd. Total cash proceeds for Shell amount to USD 737m. This divestment is part of the strategic review of SPDC's onshore portfolio and is in line with the Federal government of Nigeria's aim of developing Nigerian companies in the country's upstream oil and gas business.
-SPAIN'S BANCO DE SABADELL TO BUY TSB BANKING FOR GBP 1.7BN
Spanish banking group Banco de Sabadell S.A. and UK-based TSB Banking Group plc have agreed a deal under which Sabadell will acquire the entire issued and to be issued share capital of TSB, Sabadell said on Friday. Sabadell has agreed to acquire a 9.99%. interest in TSB from Lloyds Bank plc (Lloyds), and Lloyds has entered into an irrevocable undertaking to accept the offer in respect of its entire remaining 40.01% shareholding in TSB. Under the terms of the offer, TSB Shareholders will receive 340 pence per share in cash for each TSB Share, which...