The coronavirus crisis is having an enormous impact on the Belgian economy. All businesses are affected, from small self-employed companies to large established corporates. We are going through period of extreme uncertainty, as we cannot foresee the impact of this crisis on staff, customers and the financial health of our companies. What is certain, however, is the fact that your real estate has value!
We at Cushman & Wakefield want to use our knowledge and experience to enrich your business, so that your company can have more breathing space. If your company is in possession of commercial real estate (office, logistics, warehouse,...) you can use this to help bring new life into your operational business, and we can help!
We can assist you in setting up a real estate leasing or rental, a financing technique to strengthen the financial health of your company. One of the most common options is the Lease-In, Lease-Out (LILO), or better known as the Sale-and-Lease-back or Sale-and-Rent-back.
In this case, you sell your property to a professional real estate investor and on the basis of a tailor-made plan, the right of use is leased or rented back to you. You dispose of the property for an agreed period of time, after which you can regain full ownership by means of a purchase option. This allows your company to optimize the property in a tax-friendly way.
The financing will be based on your cash flows according to duration, pricing and repayment terms.
The advantages of such an operation are as follows:
o Increase of working capital
o Capital injection to strengthen operational business
o Release of cash to invest in other profitable projects
• Balance sheet structure
o Improving your solvency and liquidity ratios
• Fiscal benefits
• Simple transfer of real estate
• Purchase option
• Tailor made reimbursement
Other forms of real estate financing may also apply to your property. Cushman & Wakefield has a team of multi-disciplinary experts at your disposal who can provide you with information without obligation and look for the appropriate solutions to your real estate questions. Please do not hesitate to reach out with any questions.