Private Equity

A competitive tool for private equity

In a sale-leaseback, a portfolio company sells its real estate to an investor for cash and simultaneously enters into a long-term lease. In doing so, the private equity firm and its portfolio company extract 100% of the property’s value and convert an otherwise illiquid asset into working capital to grow the business, while maintaining full operational control

Benefits of sale-leasebacks for private equity

 

 

lock_open
Unlock immediate, attractively priced capital to maximize portfolio company value and overall returns, which is especially advantageous compared to bank financing today
attach_money
Replace short-term debt with tax-efficient, permanent capital with no refinancing risk
reorder
Take advantage of cheaper acquisition targets or emerging opportunities by adding sale-leaseback financing as part of the capital stack
auto_graph
Provide portfolio companies with balance sheet flexibility by paying down existing debt and boosting cash flow
account_balance
Return capital to investors through dividends
business
Maintain operational control of portfolio company real estate

Private equity sale-leaseback successes

The interior of a warehouse

Metra

$86 million follow-on sale-leaseback of with existing tenant backed by strong private equity sponsorship
The exterior of an environmentally-friendly building leased to Upfield and owned by W. P. Carey.

Upfield

$25 million in build-to-suit financing for portfolio company's state-of-the-art, BREEAM Outstanding R&D facility.
Interior of industrial warehouse

Turkey Hill

$84 million in sale-leaseback capital provided to PE-sponsored ice cream and beverages brand.
Explore More Case Studies arrow_right_alt

Contact Us

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.