Global Communications Firm Makes $129M Sale-Leaseback Move

Kansas City, MO-based DST Customer Communication, a subsidiary of DST Systems, has divested of its four real estate assets in a sale-leaseback dealvalued at $129M.

Bisnowcaught up with Colliers International executive managing director Bret Hardy(snapped at a USC football game with son Blake and daughter Samantha), who led the Collier’s team that repped the seller in these transactions, to get the details.

Other Colliers team leaders were managing directors Rick Putnamand Tom Abbott, Western Region, and Bryan Johnson, Kansas City, MO.

Bret tells us the move was truly a financial restructuring play to redeploy capital for expansion and the launch of new products. "DST executed on its long-term strategic vision to monetize four of its most core facilities and utilize the proceeds to expand its global operations,” he says.

“In structuring the leaseback arrangements, not only did DST achieve its objectives, but the new owners achieved immediate net-leased investment scale and a long-term tenant.” (Pictured is the DST production center in El Dorado, CA.)

The DST portfolio consisted of 1.4M SF of light manufacturing, office and distribution facilities, including US properties in El Dorado Hills; South Windsor, CT; and Kansas City, in addition to one in Ontario, Canada.

DST signed 14-year leases with Chicago-based Oak Street Capital, a private equity real estate firm that purchased the US facilities, and a 12-year lease with the investment division of Canada’s Scotiabank, which purchased the Ontario facility (pictured). DST deploys print, digital and archive documents for clients and customers for some of the world's largest companies.