The advantages of Sale-and-Lease-Back

Financing of investments

In addition to their day-to-day business, companies are repeatedly faced with challenges that cannot be realized from their regular cash flow. These include succession planning, research and development or restructuring of the business. Sale-and-Lease-Back helps to realize exactly such projects and can also be a solution in the course of company transactions - for example, if a buyer has acquired a company but does not want to be the owner of the associated real estate.

Size and industry independent

The model covers a financing volume between one million and 50 million euros. If several buildings are sold at the same time, the sum can be even higher. This makes Sale-and-Lease-Back suitable for SMEs of all sizes - from small craft businesses to industrial enterprises. Our purchase and leaseback of light industrial real estate benefits a wide range of industries. For example:

  • Transport and logistics
  • Metalworking
  • Online trade
  • Pharmaceutical industry
  • Mechanical and plant engineering
  • Automotive supplier

Independence from outside creditors

Since the liquidity in the case of Sale-and-Lease-Back is generated from the company's own fixed assets, no borrowing is required. It therefore does not require complex ratings, additional collateral and permanent reconciliations as is the case with most bank loans. Furthermore, there are no constraints on the use of the proceeds of the sale. The only liabilities are the accrued building rents. They are negotiated at market conditions and linked to the consumer price index. They are therefore easy to calculate. The day-to-day business is not affected by Sale-and-Lease-Back at any time. And even after that, everything remains the same thanks to our triple net rental agreements on site: Operations, taxes, levies and the like are still regulated by the company. We naturally take this into account in the rental price.

Flexibility

The desired rental period can be agreed individually and is usually between 10 and 15 years. There is no automatic return of the property to the previous owner at the end of the contract period. Instead, there are various options:

  • The contract can be extended according to the negotiated conditions
  • A follow-up contract can be agreed
  • The property can be repurchased by the company if we sell to third parties - a right of first refusal is possible
  • The real estate is sold or rented by us to third parties

Fast and reliable
If the necessary evidence and information is available in full and in a timely manner, the financing process will proceed swiftly. From the first enquiry from an interested party to the signing of the contracts usually takes only four to six weeks. The respective properties are generally acquired by us with equity. This supports efficient processing and gives companies transaction security. Thus, the purchase is not dependent on the commitment and speed of a lender.

Synergies

In the context of Sale-and-Lease-Back, objects from company ownership are sold. This means that the liquidity received also comes from the company's own fixed assets. Since no borrowing is required, the company's equity ratio increases. If this ratio increases, the prospects of obtaining a bank loan usually improve as well. From a tax point of view, Sale-and-Lease-Back also offers advantages. This is because the rent incurred for the business property is partly tax deductible as a business expense. If, in addition, the proceeds from the sale of the asset are reinvested by the company - for example in research and development - it can strengthen its position and develop further.