Sale & Leaseback Transactions
Short course
In City Of London
Description
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Type
Short course
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Methodology
Inhouse
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Location
City of london
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Duration
1 Day
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Start date
Different dates available
Sale/leaseback arrangements – whereby a firm sells part or all of its property holdings and enters into a long-term net lease with its new owner – remain highly popular instruments through which businesses can cash in on their property assets.
These deals have been accelerating as property assets are increasingly perceived as decisive instruments in corporate valuation and strategy.
Through a range of detailed case studies, financial models and presentations from the standpoint of both corporate vendors and investors, this course reviews the process from start to finish.
Participants will learn the purpose and structure of sale and leasebacks, and will review the cost of capital and comparative cost-benefit techniques. Investor perceptions, legal and regulatory structures and risk management will also be discussed.
Additionally, delegates will learn the requirements and standards for international accounting and the importance of forecasting. By the end of the seminar, delegates should understand how to analyse a transaction using the assessment criteria, and be aware of the benefits and the pitfalls of undertaking this complex decision.
Participants are required to bring a laptop with a USB Port to the course.
Facilities
Location
Start date
Start date
Reviews
Subjects
- Sale arrangements
- Leaseback arrangements
- Structure
- Statistics
- Results
- Risk Management
- Discounted Cashflow
- Forecasting
- Alternative Methods
- Hybrid Financing
Teachers and trainers (1)
Former Practitioner
Contact us for details enquiries@redcliffetraining.co.uk
Course programme
What is sale and leaseback?
- Purpose
- Structure
- Results
- History
- Current Use
- Statistics
Case Studies: Le Meredien Hotels, Kingfisher, Tesco, Travelodge, IBM
Why use sale and leaseback?
- Cost of capital
- Comparative cost-benefit techniques
- Risk management issues
- Investor perceptions
- Impact on the balance sheet
- Legal structures (eg limited partnerships)
- Disadvantages of sale and leaseback techniques for vendors
- The position of the investor
Case Study: International Accounting Standards and sale and leaseback
Assessment criteria
- Role of discounted cash flow
- Alternative methods
- Optionality and sale and leaseback
- Importance of forecasting
- Risk assessment
Case Study: Hotel investment models
OpCo and PropCo
- What is the structure
- Why is it used
- Examples of use
Case Study: Sainsbury’s use of OpCo/PropCo
Financing the Deal
- Role of senior debt (including leverage level analysis)
- Junior and other subordinate debt (including PIK)
- Hybrid financing techniques
- Role of Equity
Sale & Leaseback Transactions