Sale and Leaseback to raise Capital
A sale-and-leaseback is typically a commercial real estate transaction in which one party, often a corporation, sells its corporate real estate assets to another party, such as an institutional investor, a real estate investment trust (REIT) or private investor and then leases the property back at a rental rate and lease term that is acceptable to the new investor/landlord. The lease term and rental rate are based on the new investor/landlord's financing costs, the lessee's credit rating, and a market rate of return, based on the initial cash investment by the new investor/landlord.
The reasons and advantages for a seller/lessee are varied, but the most common are:
The advantages for an investor/landlord are:
Marder properties has a database of investors which could be a match for your property and needs. To discuss Contact Graham Marder +27 11 4531220, +27 826522236 graham@marder.co.za.