Sale Leasebacks Offer Grocers Growth Capital, Options
December 19, 2022 – SLB Capital Advisors shared thoughts with Today’s Grocer regarding the utility of sale leasebacks in the grocery space
Malik Franklin, Partner at SLB Capital Advisors, shared thoughts with Today’s Grocer regarding the utility of sale leasebacks in the grocery space.
“Some grocers use the proceeds [from a sale leaseback] as a de-levering tool to pay off debt which reduces interest expense. Other grocers invest the proceeds in growth opportunities, such as enhancing online offerings or building out new locations.”
“Grocers often struggle with the thought of giving up control of an owned property that is core to the business. However, a long-term lease offers owners essentially the same control they have in an owned-store scenario.”
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