X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN JOSE-Investment firms are evaluating the real estate properties for technology companies as a way to turn profit in an economy where companies are being forced to downsize or go under, says CSFB Realty Corporation and Credit Suisse First Boston, its parent company.

After evaluating options for a technology company whose stock values had significantly decreased recently, CSFB says it became clear that the company’s real estate portfolio, which was on the books for a reported $200 million but valued at $800 million on the market, could save the company.

In cases like this, and many others in Silicon Valley, CSFB says it is becoming a trend to sell real estate properties and lease them back to maintain liquidity and pay off other debts. By doing this, says CSFB, the companies can gain the market value for the property, which increases their stock value, and enables the company to meet their financial goals.

Companies such as CSFB recommend that, while it may not be the best option for all companies, removing real estate assets from balance sheets and securing synthetic leases, may be an excellent way to improve a company’s financial situation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.