Sale & Leaseback Transactions

Short course

In City Of London

£ 3001-4000

Description

  • Type

    Short course

  • Methodology

    Inhouse

  • Location

    City of london

  • Duration

    1 Day

  • 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

City Of London (London)
See map

Start date

Different dates availableEnrolment now open

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Reviews

Subjects

  • Sale arrangements
  • Leaseback arrangements
  • Structure
  • Statistics
  • Results
  • Risk Management
  • Discounted Cashflow
  • Forecasting
  • Alternative Methods
  • Hybrid Financing

Teachers and trainers (1)

Former  Practitioner

Former Practitioner

Contact us for details enquiries@redcliffetraining.co.uk

Course programme

Course Content:

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

£ 3001-4000