Sale & leaseback
Sale & leaseback is an established financial engineering practice (mainly abroad) where a business entity (company, municipality, etc.) sells a property to a buyer and immediately takes the same property back from the buyer on a long-term lease. At the time of the transaction, the seller of the property becomes the tenant and the buyer becomes the landlord.
The purpose of this type of transaction is for the seller of the property to instantly increase their working capital, allowing them to make additional investments into their core business or new investments.
In addition to greater financial strength, other advantages of selling a property and then renting it include:
- The total value of the property is converted into liquid cash assets (taking into account the debt, if any, that may be repaid by the seller of the property or assumed by the buyer).
- Pre-agreed terms for renting the building for a longer period.
- The possibility of repaying debts and consequently reducing financial liabilities (if any).
- Potential improvement of the balance sheet.
- Tax benefits (rent as an expense, etc.).
We buy and lease back mid-sized properties (EUR 1–5 million). The purpose of the property can vary: office, retail, warehouse, etc.
If you have a property that you would like to sell and lease back, please contact us at our email address info@prvahisa.si.