Private Equity Gets Creative

Gino Sabatini - The Deal 2013

Gino Sabatini discusses the advantages of sale-leaseback financing in the PE realm


Sale-Leaseback Financing

Sale-leaseback financing is a form of financing in which a company sells its real estate for cash and simultaneously signs a long-term lease with the buyer. Sale-leaseback transactions provide the lessee company with a source of capital that is an alternative to other financing sources such as corporate borrowing, mortgaging real property or selling shares of common stock.

Sale-Leaseback Diagram

A company is able to convert the value of real estate assets into working capital it can use to:

  • Pay-down debt
  • Fund acquisitions
  • Reinvest in the core competencies of its business

W. P. Carey has long been a leading provider of sale-leaseback financing and has more than four decades of experience helping companies and PE firms access the capital tied up in their real estate assets. We've worked with many companies and private equity firms.

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