Selling and renting back your own property could be the strategy your company is looking for to avoid bank loans, generally with abusive interest rates. Furthermore, it is possible to reinvest intelligently and safely in your own business.
Sale & Leaseback is the operation known in the real estate market for business clients who wish to sell the occupied property and rent it back, ceasing to be an owner and becoming a tenant, allowing the amount of the sale to be reapplied to the company without it necessarily need to move from the physical space.
This is a structured operation that aims to raise funds through the clients’ own fixed assets. The logic of this type of negotiation is to improve the current liquidity index.
This is because it strengthens the cash flow and the continuity of occupancy of the location based on rent that is now recorded as an operating expense, which in some cases can be deducted from the company’s income tax.
In periods of crisis and financial instability, the model can help pay off debts and even invest in new projects and contracts without compromising the advancement of business profitability.
Leaving real estate stability to become a tenant
Private property in the corporate world still carries its status. Own and grand headquarters have always conveyed robustness and tradition to companies over the years. However, the scenario has changed and savings and financial optimization plans require new directions.
In this scenario, Sale & Leaseback has gained more and more prominence.
But why should a company give up the real estate stability of its facilities to become a tenant? The answer is simple: more cash and greater possibility of business expansion.
It is a way to capitalize the company more economically without having to move to a cheaper location. This type of transaction leaves the entrepreneur free from real estate management to focus on investments that will bring greater profit to the business.
Exactly for this reason, Sale & Leaseback is an excellent mechanism for leveraging your own business without relying exclusively on financial loans.
Another advantage is the freedom in defining the terms of lease, between lessor and lessee. This could mean a reduction in charges charged for traditional financing.
Furthermore, there is greater security for the corporate client in long-term rental contracts signed with the investor, allowing the entrepreneur to further value the organization based on the stability of the negotiation.
The landlord’s interest in maintaining the lease to a reliable tenant, and the desire to remain in the same space for a long time, guarantees the business client its operation with even greater investment potential.
How can Ocupantes help with a Sale & Leaseback operation?
As we have already mentioned in other articles, the team of professionals at Ocupantes works to meet expectations through structured operations. With total focus on the needs of the corporate client, there is no concern about possible conflicts of interest arising from direct negotiations as specialized intermediaries are left aside.
The first measure adopted by our consultants is the accurate, detailed and transparent assessment of the client’s fixed assets. A thorough investigation of the project is carried out — already considering critical factors of the region’s real estate market — to accurately establish sales and subsequent rental values.
This fair definition of the property’s valuation is essential to proceed with the next stage, which is strategic partnerships with investors.
Ocupantes maintains contact with a wide network of investors in the corporate real estate market, which is why they are able to connect your property to great partners.
Using a more careful approach, the property will be presented to investors who are ideal for concluding good deals, which guarantees the client agility and efficiency in analyzing proposals.
Then, negotiations will be clear and precise, as it is Ocupantes’ responsibility to provide the client with a narrow definition of the details that will form part of the contract.
Whether through private bidding processes (Bid Process) or direct sales, our professionals are qualified to take the lead in negotiations and conduct each stage with excellence and balance.
Finally, upon closing and concluding the deal, Ocupantes guarantees the performance of its role in a decisive manner.
The client can count on the advice and support — when necessary — of lawyers in drafting the Protocol of Intent, Purchase and Sale Agreement and Lease Agreement.
The solid legal experience of our consultants contributes to the completion of the Sale & Leaseback without wear and tear or complications.
With Ocupantes, corporate clients have all the details necessary for the smooth running of their legal and commercial transactions. From the initial assessment of the project, through all the stages until the closing of the deal, we guarantee peace of mind and competence so that your only goal is to prosper in the next investments.
