The lease is structured so that the Tenant in the sale-leaseback can
achieve operating lease treatment:
Off balance sheet financing
Frees up the equity trapped in the Company’s real estate portfolio
to redeploy in a more profitable manner
Improves financial ratios, particularly ROA, ROE, and and interest coverage
ratios
Lease payments are fully tax deductible as operating expenses
It is often the lowest cost real estate financing available. The SLB+
overall cost of capital are at a lower cost of financing than the Company’s
overall cost of capital.
Maximize valuation of asset
A bondable lease provides a long-term financing solution for a long-term
asset
Flexible to make alterations and tenant improvements to the property
to meet their changing needs
SLB+ structure allows the tenant to control the property with the reversion
of the property at the end of the ground lease term. This allows the tenant
to maintain control of the property. This program is specifically attractive
to companies that do not want to lose control of their strategic assets.
A regular sale-leaseback does not allow the tenant this privilege (ownership
reversion)
One-time, one-stop financing for construction and permanent loans
No loan-to-one-borrower limits
Access to large amounts of capital
Speed of execution
GALL’s proven track record
The biggest advantage of the SLB+ structure is the reversion of the property
back to the owner
