WEB Conference
Sale Leaseback transactions for financial institutions
Sale Leasebacks provide banks the opportunity to sell branches and other bank-owned real estate to an external investor while concurrently entering into a lease that allows the bank to have long-term operating control over the property. As part of their real estate services practice, Founders Investment Banking advises on and structures sale leaseback transactions that create substantial value for the bank.
· Benefits:
– Improve the bank’s liquidity and capital position;
– Use proceeds to invest in loans, securities or to retire debt;
– Improve earnings through the efficient allocation of capital;
– Convert non-earning assets to earning assets;
– Eliminate ownership without eliminating control;
– Improve valuation and shareholder value of the bank with dilution;
– Opportunity to realize an on-balance sheet gain over the term of the lease.