Procedure for financing trough Sale-and-Lease-Back

With the financing form of Sale-and-Lease-Back, we support companies nationwide and across industries in increasing their liquidity. The model enables companies to sell their own commercial properties and continue to use them as tenants without interruption. This is how the process looks like:

Step 1 – Initial discussion: If a company enquires, our contact person will get back to you shortly. In the first meeting, basic questions are clarified:

  • How large is the building to be sold and the rentable area?
  • What is the idea of the purchase price?
  • How long does he want to rent the property after the sale?
  • How much would be a rent at market conditions?

Step 2 – Preliminary offer: If a common line is found in the first discussion, we ask the interested party for meaningful documents and evidence about the company and the respective property. These include the balance sheet for the last three years, annual reports and, under certain circumstances, restructuring plans.

In order to evaluate the property, we require, for example, extracts from the land register, fire protection reports, redevelopment documents and documents on payloads and contaminated sites. On this basis, the company and the building are examined and a non-binding offer is prepared.

Step 3 – On-site inspection: If the preliminary offer meets with interest, a joint on-site appointment is arranged. It should give us a realistic impression of the condition of the building and its suitability for potential use by third parties. Normally, one viewing appointment is sufficient. If, for example, an additional expert opinion is required, a second appointment can be arranged.

Step 4 – Final agreement and conclusion of contract: After the on-site inspection, the previous offer is confirmed or finally adjusted. Once we have reached an agreement with the interested party and agreed on the necessary details, we will draw up the purchase and rental contracts. These are signed by both parties and notarized.

If the necessary documents are available promptly and completely, the entire process up to the signing of the contract usually takes just under four to six weeks.

Once the leases have been started, ongoing coordination is usually not necessary - but Deutsche Industrie REIT-AG is always available to its tenants to answer any questions they may have.

 

For further information please contact: 

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