Eureka or Trojan horse? Owners / users of offices and industrial space are frequently approached by the various real estate consultants for the sale & leaseback of their properties. This often resembles the practices of pension and mortgage advisers who find their own commission especially important. Sale & leaseback can, however, make a major contribution to business operations. However, the many dimensions of sale & leaseback require serious consideration of all business interests.
Step-by-step plan for sale & leaseback:
- Make an inventory of the rental obligations and properties.
- Make the trade-off on sale & leaseback with regard to your business strategy and make it part of your annual budget round.
- Formulate the objectives of sale & leaseback for your organization with regard to flexibility, liquidity, balance sheet position, etc. Discuss this with your accountant.
- Determine the preconditions for the lease / rental agreement.
- Determine the lease form that suits your objectives.
- Have the consequences tested on and legal aspects.
- Provide a valuation or appraisal.
- Make an inventory of buyers / lease companies that meet the set preconditions.
- Determine the bidding procedure and invite selected providers.
- Make final choice of provider and negotiate conditions.
- Check contract terms against the objectives of point 3.
- Conclude contracts in consultation with advisers.
- Take care of handover and organize aftercare.
- Enter a new agreement in the Management Information System.