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For many years, low interest rates allowed companies with strong
credit ratings to obtain access to cheap capital through traditional
financing methods meaning there was little enthusiasm for saleleaseback transactions.
But the recent spike in real estate values is once again shining
the spotlight on another useful financing tool: the sale-leaseback.
Corporate and institutional clients are especially finding saleleaseback transactions useful when they seek to cash in on the
equity from their real estate assets in order to grow their
business and reduce some of the debt from their balance sheets;
investors seeking more stable and predictable returns are also
finding sale-leasebacks to be an attractive choice.
Hospital sale-leaseback transactions
to the real estate asset, given the limitations and lack of flexibility
that are inherent in a long-term lease. As a result, the seller may
want toconsider incorporating a repurchase option into the
lease, which allows the seller-tenant to either repurchase the
property or terminate the lease at a later time.
DLA Pipers Healthcare team offers experience in issues relating
to sale-leaseback transactions for healthcare industry
participants. Please contact us if you would like to more
information about how the sale-leaseback model might benefit
your business.