THE International Accounting Standards Board (IASB) is presently seeking comments on its discussion paper issued earlier this year that recommended putting all leases on-balance sheet, rather than just leases currently classified as finance leases For analysts and investors the proposals are likely to be welcomed, but for occupiers of property leases, particularly those with large leasehold estates
and with long average lease lengths the proposals are not so welcome.
Significant Representations include: IXIS Mortgage Capital in the origination of a $286,300,000 mezzanine loan secured by equity interests in the holders of mortgage loans encumbering the fee and leasehold estates
in and to the Hyatt Waikiki Hotel, and the simultaneous investment by an affiliate of lender in the borrowing entity (a joint venture controlled by Apollo Real Estate Advisors and Trinity Investments); and representation of Gramercy Capital Corporation in the origination of a $150,000,000 revolving credit facility to Forest City Ratner to finance the acquisition of the various real estate interests required for the development of Atlantic Yards.
On the death of George Jones in 1872 the leasehold estates
were sold and 'The Rosherville Gardens Company Limited' took ownership for the remainder of the nineteenth century.
Certain sectors will be harder hit than others and, while retailers and industrialists who have held onto or occupy freeholds will be least affected, those with substantial leasehold estates
are likely to be most affected.
Thus, real property interests include equity and debt interests in fee simple, leased fee, and leasehold estates (see Figure 1).
The proposed definition applies equally to the fee simple estate of an industrial building in Topeka, to the leasehold estate of a service station in Cincinnati, and to the leased fee estate of strip stores in Little Rock.
The freehold and leasehold estates
were split off in 1961 when a Helmsley group was the owner.
However, a mechanic's lien may be unenforceable against a property owner if the materials are supplied on contract with a leaseholder making improvements to a leasehold estate.
Payment issues may arise when materials are supplied to a project involving improvements to a leasehold estate.