Sale-and-Lease-Back
Your company is growing dynamically and you need liquid funds for innovations, investments or strategic acquisitions? Do you have capital tied up in a valuable property with possibly high hidden reserves?
Sale-and-lease-back transactions provide a possible answer to these questions. Such a transaction is possible for property values of as little as 1 million euros. Contact us, we will be happy to advise you!
What is a sale-and-lease-back transaction
Sale-and-lease-back transaction (also known as lease-back) is a special form of leasing in which an organization sells a property to a financing company and simultaneously leases it back for further use.Process
- You sell your property at its current market value to a leasing property company, which lets your company use this property for further use by means of a leasing contract.
- To finance the purchase price, the financing company provides the property company with the necessary funds after consultation with you as the lessee. As security, land charges in the amount of the financing are created on the property. A long-term interest rate agreement enables a secure calculation basis for the leasing rates.
- The total term of the leasing contract can be agreed individually. At the end of the term, you can exercise the purchase right granted to you and buy back the property. You thus participate fully in the increase in value of the property.
- The remaining financing amount is repaid with the purchase price payment. If you do not exercise your purchase right or rent the property, it will be marketed.
- IRFS/US-GAAP compliant design is possible.
Advantages
- Creation of liquidity
- Long-term interest rate fixation
- Revealing hidden reserves
- Property acquisition and trade tax optimization