Borek media

We have supported a family business through Sale-and-Lease-Back financing

Borek media GmbH looks back on a history of more than 200 years. Originally the company comes from the book printing, later it specialized in forms and freight papers. Today the family business with a total of 150 employees supports its business customers with solutions in dialogue marketing. "We create individual products for customers, from flyers to voucher cards to bank reports, support logistics and shipping in the background for web shops, for example, or develop IT solutions and complete processes," says Manuel Endres, Managing Director of Borek media.

Challenges require flexibility

As a family business in its seventh generation, Borek media has a lot of experience in adapting to changing markets and new needs, adapting to new circumstances. "As for most companies, COVID-19 is of course a challenge for us: Many customers look at the market with concern and wonder if a second wave is coming, some have postponed their orders", says Manuel Endres. Another major topic for the company, which is based in Osterwieck in Saxony-Anhalt, is digital change. "The demand for print and card solutions is stagnating due to digitalization, but there are also many new opportunities: We can further expand our range of process and IT solutions and online marketing or help our customers to use their data more effectively," explains the Managing Director.

Sale- and-Lease-Back strengthens liquidity

If a company constantly adapts to the market and its clients, it must also remain flexible in terms of financing. When short-term liquidity requirements arose at the beginning of 2020, a consultant proposed the Sale-and-Lease-Back model to the family business and established contact with Deutsche Industrie REIT-AG. "In my opinion the idea behind Sale-and-Lease-Back is quite clever: You sell your property, but you don't have to move out, you can rent it and continue to use it," says Endres.

The object fulfilled all criteria

In order to check the suitability of a company property for financing, Deutsche Industrie REIT-AG requires a whole range of documents such as fire protection reports, land register extracts, insurance policies and more. Borek media quickly provided the necessary documents so that Deutsche Industrie REIT-AG was able to get a comprehensive picture. The property in Osterwieck appeared to be in good condition, was practically designed and equipped with good transport connections - this was also confirmed by the subsequent inspection. The building was therefore an ideal candidate for Sale-and-Lease-Back.

Solution within a short time

For Borek media, the financing process went quickly: From the first inquiry in January 2020 to the conclusion of the contract and the notarization by a Berlin notary, it only took about two and a half months. After the sale, the marketing service provider rented the property back directly. "One of the reasons why we opted for Sale-and-Lease-Back", says Endres, "is that our ten-year lease term plus extension clause allows us to plan reliably over a long period of time". For the company, practically everything remains the same at the Osterwieck location. This is ensured by the special triple net rental agreement, which leaves operation, taxes, maintenance and other matters with the company on site and takes this into account in the price.

 

For further information please contact:

Frau Sonja Petersen
Chief Investment Officer
+49 331 74 00 76 - 513
sp@deutsche-industrie-reit.de