Sale & Lease-back

Through the creation of a ground lease structure and the subsequent sale of the ground lease contract the present investor benefits from a potential equity release and a significant repayment of the existing debt.

In light of the current market conditions the release of liquidity by the creation of a leasehold is a good alternative for investors which want to avoid the sale of the complete property and which still seek to generate income from the building.

The additional liquidity can either be re-invested in further acquisitions in order to increase the investor’s portfolio, thereby diversifying the risk profile, or simply repaid as a dividend, resulting in a higher return on equity. Alternatively the extra liquidity can also be applied to improve financial covenants such as the LTV, ICR and DSCR.