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Sale and lease back arrangements

T

totallyproperty

Administrator
Staff member
If you are a corporate entity there will come a time when you will need funding for your business and you may well have an array of owned property assets. Over the last few years we have seen many companies moving towards sale and lease back arrangements were effectively they sell their property, which may be an office or warehouse, to a third party and then arrange a long-term lease back agreement.

The main drawback with this particular situation is the fact that you no longer own the property and your asset backing is reduced. However, in the short term it does release potentially important capital while also securing your long-term business premises. Do you have any opinions on this matter?
 
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