European Sale & Leasebacks: trends and market outlook

We were delighted to participate in a joint webinar with CBRE this summer looking at the hot trend of European sale and leasebacks. We looked at the crucial transactional considerations from the buyer’s and the seller’s perspective and the key features of the lease, and how transactions differ across the European S&LB market.

Click here for a mini bite-sized taster of the event from Emilio Gomez discussing the key features of the lease on European S&LB deals.

S&LB transactions are seeing a resurgence as they offer a range of benefits on both sides of the investment equation. As the cost of raising debt finance remains challenging, corporate real estate owners can raise cash (against full asset value) to deploy on business strategy and avoid refinancing horizons, meanwhile investors benefit from less volatile income driven returns over the medium to long term.

Why this matters:

The European S&LB market is a large yet relatively untapped market. It has the potential to offer an appealing set of deal dynamics to corporate owners and investors alike. S&LBs were once the preserve of distressed companies in need of emergency or “last resort” capital. They are now being adopted as a strategic financial and tax-efficient instrument for many types of business across many sectors. As the European market repositions itself, investors ready to deploy capital can take advantage of being an attractive alternative to traditional sources of funding and offset occupational cap ex on to the tenant during the life of the net leasing structure. For advice in this area or to discuss your requirements do get in touch with any of the Contacts listed here and we’d be delighted to help. If you were unable to make the event and would like to learn more about latest market developments and how to identify opportunities do get in touch and we will share the full recording.

 

 

Authored by Stella Bliss, Ingrid Stables.

 

 

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