These are challenging times for all businesses but there may be scope to utilise the value locked in your freehold property. A sale and leaseback agreement is a straightforward transaction where an investor buys the freehold of your property and leases it back to you as the occupier. The lease would be agreed on market values with normal clauses covering tenants obligations such as repair and depending on the term of the lease, the provision for the rent to be reviewed at 5 yearly intervals. The capital previously tied up in your property can be re-invested in your company’s core business.
This process can be applied to individual properties or portfolios and whilst there may be potential to sell a portfolio as a package to a single entity there may be scope to realise additional value through a number of separate transactions.
With the pandemic causing cash flow issues for all businesses, Sale & Leaseback is a relatively fast and efficient way to release capital value tied up in buildings without needing to move property, disrupting production or unsettling staff or customers.
We’re here to simplify, match sellers with appropriate buyers and ensure that value is maximised without unduly saddling businesses with onerous long term obligations or inflated rents.
Call or e-mail us for an informal and confidential discussion.
07917 647 213