27 March 2006 – Sony Europe and Macquarie Global Property Advisors (MGPA) have completed an agreement for the sale and leaseback of eight office and logistics properties currently owned by Sony for €121.1 million.

The portfolio spans six European countries - the United Kingdom, Italy, the Netherlands, Belgium, Switzerland and Germany – and includes some of Sony’s significant buildings in each of these markets.  Sony will remain the major tenant of the portfolio, leasing back 65% of the property from MGPA.  The properties have been acquired on behalf of MGPA’s European property fund, MGP Europe Fund II.

Derry Newman, Senior Vice President, Sony Europe Operations, explained: “The aim of this initiative is to make the best use of our facilities in Europe.  Sony Europe has achieved significant improvements in its European supply chain, logistics and service operations and no longer needs the total capacity of the buildings currently in its portfolio.  As a direct result of our business improvement projects, we identified the sites where we had low occupancy and proposed sale and leaseback options for those sites.  This deal with Macquarie will allow us to retain our strong representation in the local markets whilst utilising the optimum space within each building, allowing the balance to be marketed commercially.”

MGPA Managing Director Alex Jeffrey said the company was delighted that Sony has chosen MGPA as its real estate partner for the portfolio. 

“We see this as the beginning of a long term relationship between Sony and Macquarie.  We are confident that our real estate expertise and service delivery will fit Sony’s needs now and into the future.”

Sony’s move to outsource its regional property needs is a developing trend among European companies.

“Companies are increasingly looking for specialist real estate partners to enable them to concentrate on their core business activities,” said Mr Jeffrey.  “MGPA’s experience and flexible approach means we are a natural fit for firms looking to partner with a real estate specialist and take up this option.”

This acquisition is the first acquisition for MGP Europe Fund II which closed late last year. 

“This is an excellent first investment for the Fund, providing it with a solid foothold in the European market and exposure to the office, industrial and distribution sectors in markets we believe have good potential and are well positioned to improve throughout the life of this investment,” said Mr Jeffrey. 

Cushman & Wakefield and Lovells advised Sony in this transaction.

Individual property details

Property 1
Location: Milan, Italy
Consists of four interconnected buildings
Gross floor area: 30,340 sqm
Sector: Office and warehouse

Property 2
Location: Amsterdam, the Netherlands
Consists of two buildings
Gross floor area: 21,777 sqm
Sector: Office and warehouse

Property 3
Location: Pencoed, Wales
Consists of two buildings
Gross floor area: 79,366 sqm
Sector: Manufacturing, warehouse and office

Property 4
Location: Zurich, Switzerland
Consists of a single office building with associated warehouse space
Gross floor area: 11,379 sqm
Sector: Office and warehouse

Property 5
Location: Cologne, Germany
Consists of two office buildings, a training centre and two interconnected warehouse buildings
Gross floor area: 28,235 sqm
Sector: Office

Property 6
Location: Cologne, Germany
Consists of a distribution complex with high-bay warehouse, a distribution building and four storey office building
Gross floor area: 24,500 sqm
Sector: Distribution and warehouse

Property 7
Location: Sobel, Belgium
Consists of one office building
Gross floor area: 5,121 sqm
Sector: Office

Property 8
Location: Londerzeel, Belgium
Consists of one two storey office building and a linked ground floor warehouse building
Gross floor area: 9,686 sqm
Sector: Office and warehouse

Total gross floor area: 188,627 sqm