Private consortium to build and operate $1.2 billion facility at JFK In what reportedly is the largest public/private partnership ever created at an airport, the Port Authority of New York & New Jersey has signed a deal installing private-sector management at one of Kennedy Airport's busiest terminals -- The International Arrivals Building. The move clears the way for construction of a new $1.2 billion terminal that will be one of the region's principal gateways for travelers from abroad. The consortium, known as JFK International Air Terminal LLC, combines the resources of New York-area developer LCOR Inc.; Schiphol USA, the American affiliate of the firm that operates the Schiphol Airport in Amsterdam; and Lehman Brothers JFK, an affiliate of New York-based Lehman Brothers Inc.
According to Port Authority Chairman Lewis M. Eisenberg, the project is financed entirely by the private sector, through $1 billion worth of special project bonds. All construction work at the terminal, recently renamed Terminal Four, is expected to be completed by fall 2001.
Insignia/Oncor part company in 'amicable separation' Due to anticipated conflicts in expansion strategy, three companies owned by Insignia Commercial Group Inc. will end their participation in Oncor International. Insignia and Oncor report that they reached a mutual agreement for what is being called an "amicable separation" between the Houston-based network and Insignia/Edward S. Gordon Co., Rostenberg-Doern/ESG and Insignia/Frain, Camins & Swartchild, which all were acquired recently by the wholly owned subsidiary of Greenville, S.C.-based Insignia Financial Group.
HFS, CUC to merge forming worldwide services provider Parsippany, N.J.-based franchisor HFS Inc. and Stamford, Conn.-based member services and direct marketing organization CUC International Inc. have agreed to merge the two companies in a tax-free exchange of shares. The new company would have had combined revenues of approximately $4.3 billion in 1996. Following the merger, which is expected to close this fall, HFS Chairman and CEO Henry Silverman will serve as president and CEO, and CUC Chairman and CEO Walter Forbes will serve as chairman. The two will swap positions on Jan. 1, 2000.
CNL board OKs plan to become self-administered, -managed In a move to become a vertically integrated operating company, the board of directors of Commercial Net Lease Realty Inc., an Orlando, Fla.-based equity REIT, has unanimously approved an agreement and plan of merger with CNL Realty Advisors Inc. This would result in the company becoming a self-administered and self-managed REIT. The transaction is subject to stockholder approval, receipt of favorable tax opinions and customary closing conditions.
Divaris opens Atlanta office, acquires Intersouth brokerage The Divaris Group, Virginia Beach, Va., has formed Divaris South LLC, a new Atlanta-based commercial real estate brokerage and property management company that acquired the commercial brokerage business of Intersouth Properties Inc., Atlanta. The new group will be managed by Intersouth President William Bauman and plans to expand into Alabama.
Koll enters three SE markets with Property Resources acquisition Newport Beach, Calif.-based real estate services firm Koll has acquired Property Resources, a Raleigh, N.C.-based full-service commercial real estate firm with offices in Raleigh and Greensboro, N.C., and Richmond, Va. With a current management portfolio of 5 million sq. ft., Property Resources will assume the Koll name and operate as part of the company's Southeast region.
Mexico's VVA begins sale of bank loan portfolio In a role reminiscent of the Resolution Trust Corp., Valuacion y Venta de Activos S.A. (VVA), a wholly owned subsidiary of Mexico's Central Bank's Fondo Bancario de Proteccion al Ahorro (FOBAPROA), has begun marketing its first portfolio of bank loans. The total portfolio under FOBAPROA's control exceeds US $40 billion in loans and real estate assets. About 98% of the portfolio is in the form of loans, many of which are secured by real estate.
With respect to this sale, Bankers Trust Co., through its Mexico City and New York offices, and GBM-Banco del Atlantico S.A. in Mexico City are acting as co-lead advisers to the VVA on an initial transaction, which involves 36 loans with principal balances of approximately US $20 million. The deadline for all bid submissions is July 9. For more information, call Bankers Trust at 212-454-2150 or Banco del Atlantico at 011-525-626-1000.
C&W establishes advisory services group Cushman & Wakefield Inc., New York, has established an Advisory Services Group to provide best-of-class strategic assessment, financial structuring and consultation expertise to complement and expand the firm's expertise. Stevan A. Sandberg, previously general counsel of the firm, has been named executive managing director to lead the new group.