Partial Sale-Leasebacks Rising in Popularity
Thursday, March 12, 2009
Source: GlobeSt
GlobeSt reports: Global information technology firm Unisys Corp. sold a 356,000-square-foot suburban Philadelphia office property in a $19.5-million sale-leaseback that closed late last year. But unlike your traditional sale-leaseback transaction, in which the seller continues to occupy the entirety of a facility, Unisys leased back only about half of the space at the Malvern, PA asset.
Such partial sale-leasebacks aren’t an entirely new phenomenon, but they appear to be on the rise, at a time when increased interest in sale-leasebacks in general is anticipated.
Partial or whole, market experts predict that sale-leasebacks will be an increasingly used corporate real estate strategy this year as companies look for ways to shave costs, raise capital and otherwise strengthen their balance sheets.
New York City-based market research provider Real Capital Analytics notes in its February Capital Trends Monthly reports that owner/occupiers are likely to be parties to an increasing share of transactions this year, both as buyers and sellers. On the sell side, "the increase in dealmaking stems not only from dispositions of excess/vacant property, but also from sale-leasebacks," RCA notes. "For some companies, sale-leaseback may be the preferred--or only--method for raising capital at present."
View the full article on GlobeSt: Partial Sale-Leasebacks Rising in Popularity
Posted by: Matthew Stone