A Sale & Leaseback is a financial arrangement where a company sells its owned property to an investor, such as Augustus Capital Corporation, which then leases it back for a specified period with defined terms.
This innovative solution allows businesses/developers to effectively convert owned real estate into working capital while maintaining operational control over key assets.
Why Choose Augustus for Sale & Leaseback?
We understand that every business is unique; our team collaborates closely with clients to craft a Sale & Leaseback solution that aligns with their specific goals and operational needs.
By unlocking the capital tied-up in their real estate, firms gain the flexibility to reinvest in core business operations, pay down debt, or pursue strategic growth initiatives.
Firms, in specific contexts, can expect to save 30% to 40% of the capital cost of the financed asset, when compared to traditional, corporate bond financing.
Traditional mortgage financing often requires firms to refinance after a set period, exposing them to interest rate and market volatility. Through Sale & Leaseback, firms enter long-term leases and lock in attractive long-term rental rates, insulating them from market uncertainties.
Unlike traditional property sales, a Sale & Leaseback allows the company to retain control and use of the property for extended periods of time, typically 30 to 80 years. Importantly, these leases can be structured in a variety of ways, based on the financial requirements of the client.
Our unique structure enables companies to be viewed as the owner for U.S Tax purposes, allowing firms to retain the bonus depreciation and other tax benefits coupled with a nominal, fixed-price option to repurchase the property. This will generally provide earlier - and hence more advantageous - tax deductions.
Our experienced professionals guide companies through every step of the Sale & Leaseback process with transparency and clarity, demystifying the complexities often associated with real estate transactions.
Collaborate With Augustus
Whether Firms are looking to reinvest in their core business, de-lever their balance sheet, or cost effectively finance capital intensive projects, Augustus is here to guide them through the entire process.
