Sale and rent back

Increasing shareholder value by freeing up equity tied up in real estate

or

Why doesn't Hilton own the real estate of their hotels anymore and nobody cares?

Focus on core business

Free capital locked in real estate

Risk minimization

Improving financial ratios

Creating liquidity

- Financing of acquisition
- Financing of expansion
- Financing of capex

Increasing shareholder value through multiple arbitrage

There is usually a positive difference between private equity EBITDA multiples and rent multiples of sale and rent backs, which represents an arbitrage opportunity

Optimizing capital structure

- Increasing equity
- Repaying shareholder loans
- Covenant reset
- Repaying bank loans

Realization of hidden reserves

Holistic Transaction Support by Swiss Recap:

Valuation

01

Carefully prepared valuation of the property to determine the expected sales price as accurately as possible.

Documentation

02

Creation of detailed project documentation in order to generate investor interest. The investor's understanding of the tenant company is elementary to fully monetize the potential of a long term rent back.

Approaching Investors

03

Targeted market approach of selected investors with teaser, NDA and information memorandum to guarantee a high response rate.

Due Diligence Process

04

Coordination and management of the due diligence process between buyer and seller with the least possible administrative involvement of the seller.

Contract Negotiations

05

Negotiating the terms of the purchase and lease contracts with the buyer and at the same time maximizing the sale price.

Signing & Closing

06

Completion of the transaction. Complete support until receiving of the funds.