There is no doubt that financial factors drive sale-leaseback deals. After all, the seller’s goal is to unlock liquidity by tapping into the equity tied up in real estate holdings. However, the seller is looking for more than just capital. Businesses want a smooth transaction process that will not disrupt business operations and a good relationship with their new landlord.
Net lease REIT W. P. Carey is a frequent buyer in sale-leaseback transactions, and this year, the firm has actively closed several sale-leaseback deals. It has managed to win these deals, despite strong competition, because it offers a strong balance sheet and the access to capital businesses need to secure liquidity and continue business operations. This is essential both to win deals and to form a lasting partnership between the tenant and landlord.
In this exclusive interview, W. P. Carey executive director Andrés Dallal talks about the firm’s recent sale-leaseback successes, what a seller looks for in a buyer and why the firm is bullish on sale-leaseback deals over the next year.