GE and LaSalle participate in two car service center deals

GE Real Estate UK and LaSalle Investment Management have entered into separate sale and leaseback deals with car service repair group Kwik-Fit.

GE has teamed up with Paradigm Real Estate Managers to acquire 148 Kwik-Fit specialist fitting centers in the UK for £103.7 million (€152 million; $203 million).

The UK portfolio has been leased back to the car repair company on 25-year leases with fixed rental increases in years five and ten.

At the same time, LaSalle Investment Management has snapped up 141 properties owned by Kwik-Fit’s French subsidiary, Speedy Car Service Centres, for €61.6 million ($82 million). The acquisition was made on behalf of LaSalle French Fund II, a €1.3 billion vehicle.

The investors are leasing the 141 service centers back on 10-year leases. A deal was struck today on the first 110 centers. The second tranche will be sold by July.

In the case of GE’s purchase, the deal includes an agreement to pursue joint venture redevelopment schemes of unwanted Kwik-Fit properties in the UK.

Mike Rowan, managing director of GE Real Estate UK, said in a statement: “This is a highly innovative transaction. It will enable us to create value from the portfolio together, over time. Furthermore, this deal dramatically extends our regional presence throughout the UK.”