Sale leasebacks

What is a sale-leaseback?

In a sale-leaseback, a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.

Benefits of a sale-leaseback

 

 

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Immediate Access to Capital to reinvest in your core business operations, including balance sheet recapitalization, new acquisitions and R&D
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Alternative Capital Source when conventional financing is limited
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100% Market Value Realization of otherwise illiquid assets compared to debt alternatives
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Maintain Operational Control of your facility
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Potential Tax Benefits by deducting 100% of rental payments rather than being subject to interest limitations for traditional debt as defined by tax law
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Gain a Long-Term Partner with the capital to fund future expansions, build-to-suits, building renovations, energy retrofits and more
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