How Corporations Can Use Real Estate To Access Untapped Capital

Most corporations of any size and scale have large investments in the land and facilities necessary for the successful operation of their business. While making corporate investments into real estate assets may seem to be a reasonable strategy at first glance, they are rarely investment or capital driven decisions, but rather operating decisions that in retrospect usually fail to maximize the leverage and value of their land and facilities beyond what is typically provided for within traditional ownership and financing structures.

When an operating business finds itself in need of low cost capital their corporate real estate assets should be evaluated as a source of readily accessible quality capital. While a number of financially engineered solutions are available to maximize corporate real estate assets the most commonly used structures center around Sale Leaseback transactions. Sale Leaseback transactions are popular solutions for the following reasons:

Improved Financial Statements: By moving corporate real estate assets