Sale Leasebacks - Missed Opportunity

professional profile

March 11, 2024

by a professional in Los Angeles, CA, USA

For businesses that manufacture products, provide services, or administer care, monetizing the land & buildings in the sale leaseback capital markets (unlike a mortgage or traditional debt) provides 100%-financing without personal recourse, restrictive covenants, or dilution that outside equity comes with. This provides funding for investments in operations that are tied to profit-generation in your offering vs sitting idle in land & buildings. This can be especially additive for companies in (rural) geographies where property appreciation is growing at a lesser rate that demand for your product is offering. If your facility is in a geography where property appreciation is growing at 4% and the demand for your product is growing at 10%, owning your facility could be costing you 6% and missed opportunity to further market share in the industry you serve.

Please reach out if you currently own a business with real estate and would like to get a better understanding of what the SLB capital markets can accomplish for you.

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from North Carolina A&T State University in Raleigh, NC, USA
Great info, Joel. Following!
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