A sales & leaseback transaction occurs when the seller transfers a real estate property to the purchaser, and it then the seller leases it back from the purchaser, who maintains the property possession, that is, a lease agreement is signed as a condition to make the sale.

This transaction type offers benefits to both parties, because one of them gets liquidity and the other the possession of a property in the form of lease, achieving in this way immediate flow generation through the rent amount.

This agreement generally occurs when the seller needs the funds related to the real estate property sold, but still needs to occupy that space. It is a way to capitalize a company and an opportunity for the companies who need to raise capital to reinvest or to pay debt in their business, thus ensuring their continuity or expansion.

There are also companies that are divesting their real estate assets to allocate those resources to their core business.
The sales & leaseback transactions have acquired significant strength in recent years in various sectors, because the different business models consider the sale and lease of their real estate assets, ensuring long-term lease (10 and 20 to 30 years). The banking and hospitality system, as well as schools and universities, have become very active in this instrument type, as well as the Mexican small and medium-sized family and institutional companies. It is clearly an impacting strategy, because many companies retain the ownership of their own industrial and office properties.

Benefits of this plan type:

• Immediate liquidity.
• Tax benefit, deductible expense.
• Resource allocation to the business activity.

Acierto Capital is an option that can advise you about this type of transactions,based on your needs.

Date
 05/05/2018