Sale-Leasebacks provide opportunities for owner-occupiers to transform property equity into cold hard cash in exchange for shifting from owner-occupier to lessee or tenant. Fortune 500 & 100 companies have been using Sale-Leasebacks for decades to add cash to the balance sheets and reduce non-liquid assets. The Sales-Leaseback process allows companies to free up capital tied up in real estate assets. Institutional buyers engage in this process to expand their portfolio and stabilize cash yields as a part of overall investment and financing strategy.
Advantages to Sale-Leaseback:
- Ability to convert real estate assets into working capital for expansion, planning, ownership, and acquisitions. Monetizing real estate assets provides the opportunity to increase shareholder value by allowing leadership to focus on other core business needs without having to factor in laborious real estate management.
- Increasing cash flow without having to change business operations. Sale-Leasebacks provide predictable and replicable returns for both sellers and buyers. On the buyer side, they get a long-term lease. On the seller side, it keeps operations consistent and in place while increase much needed cash to allocate to necessary business initiatives.
- Receiving a more equitable market value versus financing debt. Most lenders and banks value properties as if they are vacant. Sale-Leaseback financing provides a greater value alternative by providing assurance of ongoing occupants with terms 15 to 20 years. These terms are much more attractive and provide more cash flow that debt financing.
- Shareholder Value Increase. Eliminating real estate debt can dramatically improve overall balance sheet. Sale-Leaseback provides the opportunity to acquire quick operational cash, but also improving the portfolio of the company. Additionally, the agreement is structure as an operating least rather than capital lease which results in a more equitable balance sheet ratio.
- Available to ALL types of businesses. Sale-Leaseback is offered to corporate office, industrial, warehouse, manufacturing, commercial development, retail, or either individual for portfolio format.