MOTOROLA GLOBAL

The Situation:

• 3 properties, 1.0 million SF in U.S., Mexico, and Japan  
• Structure transaction to meet needs of a broad range of interest groups within Motorola Solutions, including Operations, Treasury, Tax, Financial Planning and Risk Management
• Leverage Motorola’s financial strength and investor demand for leased properties
• Dictate business terms at each facility, including length of lease terms, renewal rights at fixed rental rates, termination options and operational control including contraction rights, partial leasebacks and a short term leaseback
• Dictate transaction timing

The Challenges:

• Position operating facilities to meet changing operational needs
• Provide both long term control of, and operating flexibility for, strategic facilities
• Implement proactive exit strategy to transfer ownership risk to a third party and reduce operating costs through reduced footprint
• Create liquidity to fund higher returning investments

The Results:

• Strategy involved selling individually rather than as a portfolio due to geographic dispersion, partial leasebacks, and varying lease terms
• Tokyo sold to a residential redeveloper with a 6-month leaseback
• Remaining properties sold to office and industrial investors with partial leasebacks
• Contraction rights in the U.S. and partial leasebacks in both U.S. and Mexico