BALANCE SHEET POETRY: „THE ORDERLY POSITIONS HAVE DEVELOPED QUITE ORDERLY, THE EXTRAORDINARY EVEN EXTRAORDINARY.“ (HEARD AT SÜD-DT. BODENCREDITBANK AG)
SALE & LEASE BACK
Selling real estate from one’s own portfolio and subsequently leasing it back on a long-term basis (SALB) is becoming increasingly popular among German SMEs as a way of freeing up capital. Particularly in the current period, the sale & lease back model is often used to reposition a company and generate liquidity – even beyond times of crisis. For the seller, the reason for a sale & lease back transaction is the immediate release of tied-up equity. The liquidation proceeds thus increase the equity capital, which can be actively used as working capital in entrepreneurial processes.
ADVANTAGES SALE & LEASE BACK
Sale and lease back offers a number of advantages. These include an improved equity ratio, tax advantages, more liquidity, the elimination of liquidation risks, very simple fundraising and the possibility of becoming more independent of the house bank. Furthermore, balance sheet optimization takes place through liquidation of the property book value.
BETTER EQUITY RATIO | BETTER RATING | BETTER LOANS
Sale-and-lease-back can increase a company’s equity ratio. The equity ratio is a particularly important key figure in any credit assessment. With a higher equity ratio, loans can be realized more easily and at better conditions. Schwarzenberg Real Estate sees its role in the field of sale & lease back transactions as a link between the seller and the further user as well as the buyer. We support with our expertise in complex issues within the feasible scope of the transaction.
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