The Basics
Sale/Leaseback Benefits
Criteria
Custom Structuring
Financial Statement Impact
Case Study: Tire America
Case Study: Kenco Group
Next Steps
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Sale/Leaseback - The Basics
Q: What is a sale/leaseback?
A: A sale/leaseback is a financing technique that provides
an opportunity to raise cash for your business. A sale/leaseback
takes place when a business sells real estate it already
owns to a third party for its fair market value ('the
sale') and then immediately enters into a long-term net
lease and continues to occupy the property (the 'leaseback').
Alternatively, the business identifies an existing building
that it desires to use. It then allows a third party to
purchase that property and immediately enters into a long-term
lease to occupy the property.
Q: Why should you consider a sale/leaseback with Century
Equities?
A: If real estate is not strategically important to your
operations, why own it? By completing a sale/leaseback
with Century Equities, you can unlock the value in your
real estate, increasing your cash on hand that can be
used to grow your primary business. You will be paid full
market value for your property which will provide cash
to expand operations or pay down existing debt. There
is no fee to your company.
Q: What if you own land but have not started construction
on your new building?
A: Century Equities can be involved at the outset, assisting
in design, budgeting and structuring of the transaction.
We are experienced in all aspects of real estate development
and we can become an integral part of the project team.
Q: What is a triple net lease?
A: A triple net lease is a contract between the landlord (buyer) and the tenant (seller) where the tenant remains in control of the building operations and continues to be responsible for building insurance, real estate taxes and maintenance.
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