NEW YORK--(Business Wire)--
International construction firm Structure Tone announced today that it has
formed a venture with Corporate Lease Properties (CLP) to provide facility
financing for clients seeking to finance real property assets off-balance sheet.
Transactions can be structured in conjunction with new construction or as part
of a sale-lease back on existing property where Structure Tone is providing
renovation or tenant improvement services.
"Structure Tone has never had an affiliation with a finance group enabling us to
offer our clients the additional service of capital access in conjunction with
our basic business of building high quality corporate real estate," said Brian
Donaghy, Vice Chairman and leader of the company`s Strategic Initiatives Group.
"Through this venture with CLP, we would like to offer our clients an
alternative to using their own capital and to provide 100% financing for
properties we build or purchase. If a company is credit-worthy, we can structure
a leasing transaction through which the cost is amortized over 15-20 years,
thereby matching our clients` long-term assets with long-term capital."
Structure Tone`s partner, Corporate Lease Properties, is an organization with
principals who have been providing capital to finance corporate real estate for
over 25 years. H. Cabot Lodge III is the managing partner in charge of the new
initiative. Mr. Lodge ran the Credit Tenant Leasing business at iStar Financial,
Inc. (NYSE: "SFI") for six years and before that was executive vice president
and managing director at W.P. Carey & Co., (NYSE: "WPC"), a large NY-based real
estate investment bank specializing in corporate net lease financing. "Companies
still need to build or acquire mission critical facilities to remain
competitive," commented Lodge, "and they would rather deploy capital in primary
products or services not in an asset outside of the core business. They are also
looking for ways to increase liquidity and build-to-suit or sale-lease back
financing provides corporations with the longest-term capital available - next
to equity - but without the dilutive effect of selling stock."
On the buy side, Mr. Lodge has spent his career working with investors in
credit-tenant leases - insurance companies, pension funds, public and private
investors - that have a focus on the nexus between corporate credit and real
estate, providing the cash-on-cash yields inherent in fixed income portfolios.
For corporations seeking to lease-finance their real property, "it is typically
off-balance sheet," Lodge continued, "where lease obligations are often not
capitalized and provide an attractive alternative to bonds, which typically
carry stringent covenant provisions. One hundred percent lease financing also
provides corporations with "optionality" at the end of the term, either to
re-amortize occupancy costs in renewals or purchase the property back with
then-available cash."
With one of the strongest balance sheets in the construction business and with
offices throughout the US, UK, Ireland and Asia, Structure Tone is uniquely
positioned to provide certainty of execution and hands-on expertise to ensure
its clients` needs are being met. Notes Robert Mullen, chief executive officer
at Structure Tone, "We view this association with CLP to be of strategic
importance in meeting the challenging needs of our clients. Our basic business
is building but we also recognize that offering financing alternatives can make
a difference for our customers."
Structure Tone Inc.
Over almost four decades, the Structure Tone organization has become a
preeminent full-service construction services provider in the US, UK, Ireland
and Asia. Structure Tone offers a complete scope of services ranging from site
selection analysis to design constructability review, from corporate interior
fit-out to new out-of-the-ground construction, and from aesthetic enhancements
to major building infrastructure upgrades and modernizations.
As a start-to-finish single source for all corporate construction requirements,
Structure Tone streamlines client team`s efforts and maximizes efficiencies.
Utilizing comprehensive in-house capabilities of over 1,200 construction
professionals and state-of-the-art systems, Structure Tone provides a broad
range of preconstruction and construction services to assist corporations,
governments, educational institutions and not-for-profit organizations from the
earliest project stages through close-out and commissioning.
The Structure Tone organization includes Constructors & Associates, Pavarini
Construction Co., Inc., Pavarini McGovern and S&techs.
Corporate Lease Properties
Corporate Lease Properties (CLP) is a diversified real estate investment firm
focused on sourcing and managing corporate real estate and related debt and
equity investments on behalf of select institutional and private investors. CLP
provides customized capital solutions to industry-leading companies and
institutions that occupy high quality real estate properties that are
mission-critical to their operations.
Corporate Lease Properties provides long-term capital for new sale-lease backs
on existing property, build-to-suit and retrofit projects. CLP also acquires the
real property or debt on real estate already held under existing net leases. CLP
capitalizes on the history and reputation of its partners in the sale-lease back
and lease financing sector dating back over 25 years to deliver expertise,
creativity and certainty to its customers.
Media:
Structure Tone Equities, LLC
Brian M. Donaghy
Chairman & President
O:203-325-2829
F:212-991-0146
bdonaghy@stequities.com
Copyright Business Wire 2009
