What is it?
A business that occupies its own property to an investor and simultaneously signs a long-term lease to rent it back. It helps the company free up capital currently tied up in the property.
Requirements
The lease should have a minimum term of ten years, preferably with a triple net structure (occupier continues to be responsible for all maintenance and repairs). The business should be viable taking into account future rent payments.
ESTAma
ESTAma has a track record of sale and leasebacks and holds an extensive network to international and local investors who can complete transactions even in difficult circumstances where the future of a business might be unclear.
Advantages over Bank Finance
- Quick decision process and cash flow
- Tailor made and flexible solution (lease terms freely negotiable)
- Full release of capital from sale (vs. equity to remain in property for bank finance)
- Improved balance sheet
- Asset based with limited or no other securities to be provided
- No banking covenants