RKW
Sale-leaseback of a manufacturing facility triple-net leased to one of Germany’s leading manufacturers of plastic films. In line with W. P. Carey's commitment to sustainability, this facility leverages 100% renewable energy.
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An introduction to sale-leasebacks
What is a sale-leaseback?
In a sale-leaseback, a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control.
Benefits of a sale-leaseback
Immediate Access to Capital
Unlock capital to invest in your core business operations, including balance sheet recapitalization, new acquisitions and R&D.
100% Market Value Realization
Capture full market value from otherwise illiquid assets compared to debt alternatives.
Maintain Operational Control
Continue to operate your facility without disruption.
Potential Tax Benefits
Deduct 100% of rental payments rather than being subject to interest limitations for traditional debt as defined by tax law.
Alternative Capital Source
Access an alternative source of capital when conventional financing is limited.
Gain a Long-Term Partner
Secure a real estate partner with the capital to fund future expansions, build-to-suits, building renovations, energy retrofits and more.
Is a sale-leaseback right for your business?
You must own your real estate in order to sell it.
Sale-leasebacks work best for mission-critical facilities.
Most sale-leasebacks involve long-term leases of 10 or more years. If the property is strategically important to your business, you're likely a strong fit.
We work with public, private, sponsor-backed and sub-investment grade companies alike. You don't need to an investment-grade rating to pursue a sale-leaseback. What matters is having a solid financial track record or strong market position, so investors can evaluate your ability to support rent payments over a long-term lease.
Sale-leasebacks allow companies to unlock capital from otherwise illiquid assets and redeploy into higher-return opportunities.
Recent investments
Novus Foods
W. P. Carey completed the sale-leaseback of a 66,000-square-foot food processing facility in Ohio. The transaction also included a commitment to fund an expansion to the existing facility and a build-to-suit commitment for a new, Class-A distribution facility located on the same campus.
International Food Production Business
$104 million sale-leaseback of six mission-critical food production facilities located across the U.K., Czech Republic and Slovakia.
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The Ins and Outs of Sale-leasebacks
What Is a Sale-Leaseback? In a sale-leaseback (or sale and leaseback), a company sells its commercial real estate to an investor for cash and simultaneously enters into a long-term lease with the new property owner.
Is a Sale-leaseback Right for Your Business?
Economic uncertainty and restricted debt markets are leading more corporate occupiers to explore alternative financing options such as sale-leasebacks to secure funds.
What to Expect When Selling to W. P. Carey
W. P. Carey is a leading global real estate investment company, specializing in the acquisition of operationally critical, single-tenant properties in Europe and North America. With over 50 years of experience and a portfolio of over a thousand properties in 25 countries, W. P. Carey has an established track record of enabling companies to unlock the value of their real estate.