Armin Hohenadler

We gather your complete due diligence package, including an asset presentation and a number of recommendations. Our commercial real estate specialists can monitor the due diligence for your contract and the preparation provided for in Article 32 (through the seller`s preferred lawyer). In addition, we can recommend and engage external specialists with regard to: a lease agreement is a contract by which the entity selling an asset can repay that asset to the buyer. In the case of a leaseback – also known as a „sale-leaseback“, the details of the agreement, such as lease payments and the duration of the lease, take place immediately after the sale of the asset. In the case of a sale-sale transaction, the seller of the asset becomes a lessee and the buyer a lessor. There are many examples of bankruptcies in corporate finance. However, a classic example, easy to understand, is found in the vaults that assist us commercial banks to keep our valuables. At first, a bank has all the physical safes in its cellars. The bank sells the safes to a leasing company at the market price, which is significantly higher than the book value.

The leasing company will then offer these safes to the same banks for long-term rental purposes. The banks, on the other hand, rent us these safes, their customers. Our commercial real estate team monitors your sale and rental transaction throughout the billing period. We also check, calculate and report all agency fees incurred and make a comparison of marketing costs and refunds. We ensure that all transfer documents are executed by both parties as required and participate in the counting and confirmation of the conclusion. Our commercial real estate team will conduct a comprehensive review of the proposed rental terms to ensure they match client properties and maximize price potential. We will then conduct a rent analysis, supported by solid evidence, and a review of similar agreements in the commercial real estate market. The most common users of sale-leasebacks are project owners or companies that have expensive capital goods – such as real estate, land or expensive large equipment. This is why leasebacks are common in the construction and transportation sectors as well as in the real estate and aerospace sectors. Finally, an entity considering a sale balance should also perform a sensitivity analysis using after-tax cash flows on the lease relative to the property.

Residual value (the value of the property at the end of the lease period) should be considered a residual value and the entity should use its weighted average cost of capital (also known as the weighted required return) as the discount rate. A sale-and-leaseback is usually a commercial real estate transaction in which one party, often a business, sells its corporate real estate to another party, for example. B an institutional investor or a Real Estate Investment Trust (REIT), then re-leases the property at a rental price and a rental term acceptable to the new investor/lessor. The lease term and lease price are based on the financing costs of the new investor/lessor, the credit quality of the lessee and the market return, based on the initial cash investment of the new investor/lessor. Our team of commercial real estate experts will work closely with our client to understand: In order to continue to protect the interests of the owner/resident (now tenant), sale-lease agreements may include a lease renewal option or, on occasion, the contract contains a buy-back option for the owner/resident (now the tenant) to redeem the property. We conduct an objective price assessment based on current conditions in the commercial real estate market. The concept of „leaseback“ has also extended to industry, mainly for industrial facilities. A company sells some of its equipment to a lessor, for example. B a bank or other financial institution that re-leases the equipment to the enterprise.

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