Net Lease
We advise our own Net Lease funds whose single strategy is focused
on investments in operationally mission-critical corporate real estate
across selected industry sectors and commercial property types.
Most companies today are not in the business of owning real estate but need the use of land and buildings as an essential business asset.
A Sale & Leaseback transaction allows a company to reduce the capital tied up in non-core business assets and frees the cash in return for a lease and quarterly rent payments.
The full value of the real estate is extracted and there is no operational disruption.
The seller continues to conduct business in the facility as if they still owned it.
As corporate boards focus more closely on optimizing the efficiency of capital, sale leaseback financing provides an alternative source of long-term credit to traditional secured, unsecured and equity-focused financing.
This monetization of on-balance sheet real estate provides corporations with continued operational control, enhanced financial metrics and potential tax benefits:
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Flexible Lease Terms
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Potential tax advantages
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Ongoing control of real estate
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Release growth capital
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Capital restructuring pre-exit
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Investment Criteria
GEOGRAPHY
European Union & U.K.
TRANSACTION SIZE
€10 million - €250 million
ASSET TYPE
Commercial real estate:
primarily industrial, logistics
and office assets
LEASE TYPE
Double or triple-net
inflation linked
LEASE LENGTH
10
20 years preferred.
10 years minimum
TENANT
Credit worthy
(does not need to be rated)
Transactions
DURA AUTOMOTIVE SYSTEMS
Einbeck (Germany), Daun (Germany) & Koprivnice (Czech Republic)
Sale & Leaseback of three strategic European production facilities (total of 70,875 sqm of lettable area)
Tenants are leading suppliers of industrial vehicle and passenger car parts.
SHILOH INDUSTRIES / ALUDYNE
Oss, the Netherlands
Sale & Leaseback of its main European production facility (20,535 sqm of net lettable area)
Tenant is a leading global supplier of lightweighting, noise and vibration solutions to the automotive industry.
IMA HQ
Bologna, Italy
Off-market Sale & Leaseback of world-leading machine production company (26,982 sqm of lettable area)
Parent company is a world leader in the design and manufacture of packaging machines for a number of industries and was established in 1961.
AVECO
Frankfurt, Germany
Sale & Leaseback of Wisag HQ (18,800 sqm office building)
Tenant is No 3 largest facility management service provider in Germany. This asset was bought for €36.5m in April 2015 and sold for €47m in June 2017.
UPONOR
Hassfurt, Germany
Build-to-suit warehouse (16,500 sqm), completed in September 2014
Tenant is No 3 globally in plumbing solutions.
K-FLEX 1 + 2
Lodz, Poland
Build-to-suit manufacturing and distribution center, acquired in
March 2014 (34,200 sqm).
Tenant is No 3 globally in insulation
and tubing.
