If you’re a business owner that owns your real estate and are looking to expand your business, reduce debt or generate liquidity, a sale-leaseback may be an option for you.
A sale-leaseback occurs when a business that owns its own real estate, sells the real estate to an investor, who leases it back to the business. The operating business continues to operate from the location but no longer has the responsibility of ownership and benefits by converting real estate equity into cash.
The owner receives net proceeds from the sale of the Real Estate maximizing access to capital that can be used to reinvest in the business, expand product lines, purchase equipment, expand the number of units, renovate locations or, provide ownership with liquidity.
By executing a sale-leaseback, Ownership converts an illiquid asset into Cash. By turning equity into Cash, and paying off mortgage debt, the Company improves its Balance Sheet and enhances its credit profile, potentially providing the Company additional/improved access to borrowing or trade terms from Lenders/Suppliers.
AQRE’s Team of Experts will negotiate customized lease terms designed to meet the needs and objectives of your business.
Sale proceeds are used to pay off the mortgage debt and re-capitalize the Balance Sheet. In today’s environment, eliminating refinance and interest rate risk while creating maximum liquidity can be a game changer for any company.
The lease agreement is structured so that the tenant maintains full operating control over the space it occupies because it is designed to mirror ownership.