Sale/Leaseback Transaction Services

FUNCTION
A sale of the corporation's property to an investor and the simultaneous leasing of the property by the corporation is often a valuable option for companies. Such a sale/leaseback will often show increased productivity by allowing the corporation to reduce the assets shown on the balance sheet, thereby increasing their return on assets. In addition, the sale will provide the opportunity to raise cash, while maintaining operating control of the property as if it were still owned by the corporation. The availability of this financing technique depends on the credit strength of the corporation, the market strength of the property, and the risk policy of an investor.
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PROCEDURE
Preliminary Analysis
  • Investigate and analyze the feasibility of the sale and leaseback of selected existing corporate properties.

Pollina Corporate will conduct a preliminary analysis of the facilities to determine the ideal candidates for possible sale/leaseback transactions. This analysis will include, a preliminary estimate of the sale price and leaseback rental rate and lease structure for each identified property.

Sale and Lease

  • Prepare documents to present to potential investors and negotiate sales contract and lease document on behalf of client.

If the preliminary analysis is positive, Pollina Corporate will prepare with the client's approval, a marketing package and present it to investors best suited for the property. Pollina Corporate will then present all offers to the client, assist in evaluating the best offers, and then negotiate the sales contract and lease document on behalf of the client.

Build-to-Suit Options

  • Investigate and analyze the feasibility of using the sale/leaseback concept relative to build-to-suit projects.

Pollina Corporate can examine the feasibility of several alternative methods, which allow the corporation to capitalize on credit by pulling out of a property, the increase in its value, resulting from a long-term lease from the corporation. Selection of the alternative methods will be based on who bears the construction risk, the difference in potential profit of the alternatives, and the availability of state and local incentives under each scenario.