Real Estate
- Sale Leasebacks
- Portfolio Optimization & Investment Sales
- Private Investment - Foundation Fund Management Company
For more information:
Andrew L. Sink Phone: 205.949.2043
Email: asink@foundersib.com
Sale leasebacks provide companies and shareholders the opportunity to sell corporately or related third party-owned real estate to an external investor while concurrently entering into a long-term lease that allows the company (which is the tenant) to have operating control over the property. As part of our real estate services, Founders advises on and structures sale leaseback transactions that create substantial value for the seller in several ways:
- The sale leaseback is often completed at a premium to the “bricks and mortar” appraised value, as a property is typically most valuable at the inception of a long-term operating lease that will provide income and cash flow to an investor;
- The transaction creates net proceeds that can be (i) used for personal liquidity and diversification, or (ii) reinvested into the core business to fund growth strategies that have significantly higher rates of return and subsequent value creation than would be realized by retaining ownership of the real estate asset;
- The sale leaseback often eliminates or retires debt, which decreases balance sheet leverage, eliminates personal guarantees and increases corporate and personal financial flexibility.
