Liquid Bricks
Business Finance reports: With many banks continuing their cautious ways -- about 40 percent of respondents to the Federal Reserve's Senior Loan Office Opinion Survey from April had tightened credit standards; none had eased them -- treasurers and other financial execs are looking at a range of financing options. One that's getting attention is sale-leaseback transactions.
As the term suggests, with a sale-leaseback, a company sells a property to an investor, which could be an investment fund, a real estate investment trust (REIT), or an individual, and gains the proceeds. The company then agrees to make ongoing lease payments and continues operating in the facility.
While the volume of commercial real estate transactions overall is down, the ratio of sale-leaseback deals has increased, reports Real Capital Analytics, a real estate research firm. Sale-leasebacks through May of this year accounted for 8.6 percent of all commercial real estate sales of $5 million and up. This compares with 7.3 percent for all of 2008 and is the highest percentage in the past 9 years, says Jessica Ruderman, senior market analyst with RCA.
View the full article on Business Finance: Liquid Bricks
Posted by: Nina Turner