Finance Net Leasing
IHOP Flips Applebee's Assets for $347M
May 21, 2008
By: Barbra Murray, Contributing Editor

Restaurant firm IHOP Corp., through its Applebee's division, has entered into a sale-leaseback deal in which it will dispose of 187 Applebee's restaurant real estate parcels for an estimated $347 million.

The buyer is a newly formed partnership involving Drawbridge Special Opportunities Fund L.P., Drawbridge Real Assets Fund L.P., and various affiliates. As per the terms of the agreement, the price tag on the transaction may change based upon adjustment of restaurant sales for the 12-month period concluding on April 30. Additionally, the Drawbridge team will have the option to forego the purchase of as much as 15 percent of the total restaurant sites should the properties be found defective in terms of property condition, title issues, zoning issues or other material shortcomings. The total purchase price is expected to be solidified by June 1 for an estimated closing date no later than June 16.

The disposition of the Applebee's properties is part of IHOP's plan to generate resources to pay down its funded debt. In its first quarter earnings report, the company noted that it would sell a total of 191 company-owned Applebee's real estate parcels via sale-leaseback arrangements. IHOP came into possession of the assets when it acquired Applebee's International Inc. for approximately $2.1 billion in late 2007. Beyond the Applebee's dispositions, last month, the restaurant company signed on to sell its support center in Lenexa, Kans., in a sale-leaseback deal valued at $40 million.

The Drawbridge funds involved in the transaction are affiliates of New York City-based alternative asset manager Fortress Investment Group. Fortress stock opened at $15.19 today.

Headquartered in Glendale, Calif., IHOP Corp. is a franchiser and operator of International House of Pancakes and Applebee's Neighborhood Grill & Bar brand restaurants. The company's portfolio encompasses 3,300 restaurant properties, making it the largest full-service restaurant company in the world. IHOP stock opened today at $51.20.

 
Recent Net Leasing Headlines
ProLogis Takes 300,000 SF near Tokyo
Oct. 13, 2008
ProLogis Japan Properties Fund II has acquired a $65 million portfolio near Tokyo, it has reported. The deal includes three buildings totaling 300,000 square feet, all fully leased to three separate Japanese companies, located in Akishima City, a logistics hub approximately 50 kilometers from Tokyo's central business district.
ProLogis Takes Distribution Centers in Italy, France, U.K.
Oct. 09, 2008
ProLogis European Properties Fund II has acquired four, fully leased distribution centers comprising more than 1.1 million square feet at locations in France, Italy and the United Kingdom for approximately $106 million, it has reported.
New Industrial Facility to be Developed for Rip Curl in Southwest France
Oct. 08, 2008
ProLogis will build a new, 137,000-square-foot industrial warehouse in southwest France for Rip Curl, a global provider of equipment and apparel for the surfing and mountain communities, the developer has reported.
ProLogis Leases 460,000 SF in Shanghai
Oct. 07, 2008
ProLogis has announced it has leased a total of approximately 460,000 square feet to two customers in Shanghai, China In the Pudong submarket of Shanghai, at ProLogis Park Jinqiao,
mmarsden ProLogis Lands on Two New Dow Jones Green Indices
Oct. 03, 2008
ProLogis announced October 2nd that it has been included on the Dow Jones Sustainability Indices. These indices are the first to track the financial performance and viability of leading businesses worldwide known for their green initiatives. The indices provide asset managers with objective benchmarks to manage sustainability portfolios, which are increasing in number to meet a growing demand among investors.
 

 

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