Sale Leasebacks Present Financing Advantage to Property Owners . . .
May 17, 2024 – Commercial Real Estate Direct cited SLB Capital Advisors in a review of the sale leaseback market
Most companies would find the cost of conventional debt, be it from banks, the corporate bond market or other venues, at 9% to 10%, according to Scott Merkle, Managing Partner of SLB. In contrast, sale leasebacks would provide them with financing with an effective coupon of 7% to 8%. “It’s immediately accretive,” Merkle said, so companies are naturally exploring sale leasebacks.
“While it’s too early to predict whether M&A and sale leaseback volumes will increase this year, Merkle expects volumes in that market to improve incrementally from last year. That, in turn, could results in greater sale leaseback volumes
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