If real estate is not strategically important to your operations, why own it? By utilizing a sale/leaseback or build-to-suit solution with HSI Properties, you can unlock valuable equity to provide cash-on-hand to be used as you see fit.
What is sale/leaseback financing?
A sale-leaseback is a form of financing in which a company sells its real estate and simultaneously signs a long-term lease with the buyer. In doing so the seller takes the capital asset of its books and in-turn creates an operating expense.
Why utilize a sale/leaseback?
• 100% market value realization of otherwise illiquid assets
• Immediate access to capital
• Potential to keep transactions off balance sheet
• Continued operational control of facilities
• Increased Return on Assets (ROA)
• Increased Return on Invested Capital (ROIC)
• Increased borrowing capacity through strengthened balance sheet
• Improves liquidity
• Allows you to focus your assets on core operations
• Potential tax advantages
Who utilizes sale/leasebacks?
• Owners thinking about retirement or estate planning
• Those seeking a buyout of an existing shareholder
• Companies looking to fund growth
• CFO’s planning to improve the companies balance sheet
• Growing corporations and companies looking to finance acquisition
• Individuals who want to free up the hidden equity for personal use
How does a sale/leaseback work?
Three easy steps:
1. HSI Properties reviews pertinent information in regard to the real estate and your company including: photos, financial statements, area and demographic analysis to determine if we are the right solution for you.
2. HSI Properties with forward a Letter of Intent outlining the critical business points that need to be mutually agreed to and will lead to a formal contractual document.
3. Upon mutual agreement to the Letter of Intent, HSI Properties will quickly draft a contract.
If real estate is not strategically important to your operations, why own it? By utilizing a sale/leaseback or build-to-suit solution with HSI Properties, you can unlock valuable equity to provide cash-on-hand to be used as you see fit.
What is sale/leaseback financing?
A sale-leaseback is a form of financing in which a company sells its real estate and simultaneously signs a long-term lease with the buyer. In doing so the seller takes the capital asset of its books and in-turn creates an operating expense.
Why utilize a sale/leaseback?
• 100% market value realization of otherwise illiquid assets
• Immediate access to capital
• Potential to keep transactions off balance sheet
• Continued operational control of facilities
• Increased Return on Assets (ROA)
• Increased Return on Invested Capital (ROIC)
• Increased borrowing capacity through strengthened balance sheet
• Improves liquidity
• Allows you to focus your assets on core operations
• Potential tax advantages
Who utilizes sale/leasebacks?
• Owners thinking about retirement or estate planning
• Those seeking a buyout of an existing shareholder
• Companies looking to fund growth
• CFO’s planning to improve the companies balance sheet
• Growing corporations and companies looking to finance acquisition
• Individuals who want to free up the hidden equity for personal use
How does a sale/leaseback work?
Three easy steps:
1. HSI Properties reviews pertinent information in regard to the real estate and your company including: photos, financial statements, area and demographic analysis to determine if we are the right solution for you.
2. HSI Properties with forward a Letter of Intent outlining the critical business points that need to be mutually agreed to and will lead to a formal contractual document.
3. Upon mutual agreement to the Letter of Intent, HSI Properties will quickly draft a contract.