August 29, 2025 – SLB Capital Advisors provided perspectives to BioProcess International related to sale leasebacks in the biopharmaceutical industry
SLB Capital Advisors’ Partner Stephen Cheng provided perspectives to BioProcess International related to sale leasebacks in the biopharmaceutical industry
[A] capital source that is highly strategic but not yet in the biotechnology CFO’s toolkit is the sale leaseback
Raising capital from a sale leaseback is a particularly apt approach for two reasons. First, many biopharmaceutical businesses own their facilities – from R&D facilities to sites for good manufacturing practice (GMP) operations. Second, such facilities lie at the intersection of healthcare and industrial real estate, which are in demand among real estate investors. In the first quarter of 2025, those two sectors accounted for 56% of all sale leaseback transactions
Proceeds can support growth initiatives – e.g. funding pipeline R&D, building additional capacity, launching new products, and even making acquisitions, all without diluting existing equity.
In an era of rising borrowing costs, the sale leaseback has emerged as a compelling, nondilutive alternative for bolstering balance sheets
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