Guy de la Porte has sold a property in Parow Industria for R 4.8 Million (Ex VAT) in a sale and leaseback transaction.
The Seller having received government orders, needed working capital to finance the materials for these orders. A Sale and Leaseback was the ideal vehicle which gave them the opportunity to use their property asset to help finance their business needs. The reasons sale and leasebacks can be attractive, is that they allow approximately 30% more capital to be unlocked than traditional mortgaging of the property and often, a much faster process than modern banking approvals allow. Bridging finance can be arranged to further speed up the access to capital. In this particular case the seller realized that he would receive a far greater return from the capital when employed in his operating business. than in the property. He would retain the usage of the property with a fully tax deductible rental expense to his business.
Guy de la Porte is an experience Cape Industrial Property deal maker.
