A Different Approach

RELEASE UP TO 100% OF A BUILDINGS VALUE

Bank finance against the bricks and mortar could release equity of 60%-75% of the building’s value however, selling a property through a sale and leaseback transaction could generate proceeds of 100% of a building’s value.

DISTRIBUTION OF CAPITAL:

Businesses can invest in growth and pay down existing debt to improve cashflow. Tied up capital in the property can then be allocated to more productive use by reinvesting it in the trading business. 

REDUCE RISK:

Avoid the risks associated with owning Commercial Property as Sale and Leaseback allows your business to operate from the same premises on a long-term basis whilst retaining the maximum capital liquidity.

TAX BENEFITS:

Sale and Leaseback of Commercial Property carries potential tax benefits as the leasing costs are offset as an operating expense.

FIXED COST FINIANCING:

Rental payments fixed upfront under a sale and leaseback agreement make cash flow management a simpler task.

BALANCE SHEET STRENGTHEN:

The company’s balance sheet can be strengthened by removing any debt associated with the property from the balance sheet.

MANAGEMENT BUYOUT (MBO): 

Increases the ability of a management buyout as the bricks and mortar asset can be removed from the sale, to maximise value to the vendors.

DIRECTOR/PARTNER 'BUY IN':

Improve the availability of a new Director/Partner to ‘buy in’ to a company, as the cost of the ‘buy in’ can exclude the cost of the business premises.