Freedom, flexibility, and growth: unlock capital for sustainability, digital innovation, and a future-proof strategy
YOUR CREATIVE PARTNER IN LOGISTICS AND LIGHTINDUSTRIAL REAL ESTATE
Why choose a Sale and Leaseback?
Whether you aim to strengthen your balance sheet, optimize cash flow, or future-proof your business strategy, S&LB offers a smart and strategic solution.
Discover how this approach can empower your company to achieve longtermsuccess while keeping your business location intact.
1
SALE AND LEASEBACK
A Sale and Leaseback (S&LB) is one of the best solutions for entrepreneurs looking to unlock capital without compromising business operations. An S&LB is a financially smart strategy that has gained significant popularity in recent years. In this process, a company sells its real estate to an investor and then leases it back. The concept is simple: you sell your business property but retain the right to use it immediately through a lease agreement
This process enables the release of capital that is tied up in physical assets, such as buildings, without disrupting business operations. The freed-up capital can then be reinvested in (sustainable) business activities and (digital) growth strategies. with the new owner.
This process enables the release of capital that is business activities and (digital) growth strategies.
BENEFITS 2
A Sale and Leaseback offers a wide range of financial and strategic benefits. Here is an overview of the most common advantages:
1. Improved Liquidity
› Immediate access to capital through the sale of real estate.
› Freeing up working capital for business operations, debt repayment, or profitable projects.
› Higher sale proceeds due to the leaseback structure.
› Ability to finance 100% of the market value of the property, unlike a mortgage where only a portion can be financed.
› Freed-up capital can be invested in:
o Innovation and growth.
o Sustainability objectives.
o Digital transformation and other strategic projects.
2. Flexibility and Risk Diversification
› Future real estate risks, such as depreciation and maintenance costs, are transferred to the investor.
› Retention and control over your current property (no relocation costs).
› Preservation of operational flexibility, especially in case of changing space needs.
› Diversification of financing sources, reducing dependency on a single source.
› Immediate access to real estate expertise from professional investors.
› Ability to make strategic choices without waiting for lengthy financing processes.
3. Financial Optimization
› Improved balance sheet structure by converting real estate into liquid assets.
› Potential tax deferral on capital gains.
› Increased solvency and liquidity ratios, strengthening the company’s financial health.
› Reduction of debt burden through targeted use of sale proceeds.
› Lease payments are fully tax-deductible.
CONSIDERATIONS & CHALLENGES 3
While a Sale and Leaseback offers many benefits, there are also potential challenges to consider before entering such a transaction, including the loss of ownership, long-term costs and lease obligations, and dependency on the landlord.
A Sale and Leaseback provides many opportunities, but these considerations highlight the importance of a thorough analysis. It is essential to carefully review contract terms and long-term implications to ensure that this structure aligns with your business goals. We always recommend consulting a professional external advisor to determine whether this is the right choice for your situation.
PROPERTY VALUATION 4
A proper valuation of the underlying real estate is crucial for a successful Sale and Leaseback transaction. Heylen Warehouses considers various factors, with the most important being:
› Location and condition of the property: A favorable location (e.g., near ports, highways, rail, or airports) and good maintenance increase value.
› Lease agreement terms and type: The duration, annual rent, and costs play a significant role in property valuation.
› Financial status of the seller: Creditworthiness influences the attractiveness of the transaction for investors.
Heylen Warehouses determines valuation as follows: we subtract annual costs (such as maintenance, insurance, and taxes) from gross rental income to calculate net rental income. The net rental income is then multiplied by a return factor, depending on the risk profile of the property, tenant, and market conditions. The lower the risk, the higher the price we are willing to pay.
Due Diligence: Identifying Risks
A thorough due diligence process is essential to avoid surprises later. This process reviews all information provided by the seller and identifies risks related to:
› Legal status: Ensuring property rights and contracts are fully in order.
› Technical condition: Assessing structural soundness and environmental compliance.
› Financial feasibility: Verifying costs, revenue, and market value for realistic and profitable outcomes.
› Commercial attractiveness: Evaluating market demand and location potential.
› Tax implications: Understanding obligations and benefits and optimizing where possible.
› Regulatory compliance: Ensuring full adherence to applicable laws and regulations.
WHY PARTNER WITH HEYLEN WAREHOUSES?
A Sale and Leaseback transaction creates a partnership between buyer and seller, which is precisely what Heylen Warehouses stands for. Establishing a long-term, sustainable collaboration requires thorough discussion from both perspectives. This begins with a deep understanding of your specific needs and preferences, as well as ours. Key aspects include the lease period, lease terms, and how these translate into the sale price. With Heylen Warehouses, you choose a professional partner with extensive knowledge and experience in Sale and Leaseback transactions. Our focus is on providing tailored solutions that fit your specific situation, enabling you to enter a long-term partnership with confidence.
What we offer: ✔
› Fast and discreet: Smooth and confidential processing.
› Market-based price: A fair price without hidden costs.
› No broker fees: Save on brokerage costs.
› No financing contingencies: Quick execution without unnecessary conditions.
› Expertise, quality & service:
o Excellent industry reputation.
o Years of experience and expertise.
o Integrity and transparency in our business culture.
Heyen Warehouses is your professional partner with in-depth knowledge and experience in Sale and Leaseback transactions. Our focus is on providing tailored solutions that fit your specific situation, enabling you to enter a long-term partnership with confidence.
What’s in It for Heylen Warehouses?
For Heylen Warehouses, a Sale and Leaseback is an attractive strategy as it provides a stable and predictable investment. By eliminating the vacancy risk typically associated with acquiring an empty building, the leased-back property generates revenue from day one, making the investment less risky and more attractive.
In addition to medium-term lease agreements, Heylen Warehouses also offers short-term leases combined with future development opportunities. This model is appealing as it provides both immediate rental income and potential for redevelopment or repurposing of the property over time.
Short-term lease agreements with development opportunities
In addition to medium-term lease agreements, Heylen Warehouses also offers the possibility of short-term leases combined with future development opportunities. This model is attractive to us as we are not only looking for immediate rental income but also see opportunities in the redevelopment or repurposing of the property in the medium term.
With a short-term lease, the property is temporarily utilized while both parties retain the flexibility to implement new plans after the lease period ends. For us, this means we can strategically invest in locations with potential for value appreciation, whether through modernization, redevelopment, or even a complete transformation of the property.
This type of structure provides a balance between short-term returns and long-term value creation. It allows us to make optimal use of the property during the lease period while maintaining the flexibility to execute future plans in a targeted and efficient manner. This approach enables us to respond to changing market conditions and maximize the value of the property.
TRACK-RECORD 6
Heylen Warehouses has extensive experience in successfully executing various Sale and Leaseback transactions. We have built strategic partnerships and secured a strong real estate position. Some recent transactions include:
6.1 Project Welkenraedt - GXO
Acquisition and leaseback agreement with GXO.
6.2 Project Enschede – Apollo Tyres
A win-win sale and leaseback solution benefiting both parties.
6.3 Project Puttershoek - SHIPP21
Capital structure and property optimization with Cosun Beet Company.
WHY TAKE ACTION NOW?
In a constantly evolving world, flexibility is key to success. With a Sale and Leaseback, you retain control over your property and business while immediately benefiting from financial advantages.
Are you curious about what this could mean for your business? Contact us for a non-binding consultation.
