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SALE LEASEBACK AND CREDIT TENANT LEASES

A sale leaseback or credit tenant lease program can be an effective way to reduce the negative impact of real estate ownership while simultaneously obtaining low-cost financing. Using this program, you “sell” your real estate to Wachovia, and we lease it back to you for a fixed period as the lessor/owner. You effectively control the property after the sale, and retain the right to buy back the property at a pre-agreed price.

Advantages of Sale Leaseback

  • Generates cash, improving liquidity
  • Provides off-balance sheet financing
  • Allows you to focus your assets on core operations
  • Provides more efficient utilization of real estate tax benefits, if your company has a net operating loss
  • Reduces the negative impact of depreciation and interest on your income statement
  • Improves financial and performance measurement ratios such as return on assets
  • Hedges against obsolescence
  • May help you avoid or reduce liability for minimum tax, because tax-oriented leasing, unlike ownership, does not create tax preference items

Wachovia can help you discover the right financing vehicle from a wide range of alternative strategies.

Wachovia Securities is the trade name for the corporate and investment banking services of Wachovia Corporation and its subsidiaries, including Wachovia Capital Markets, LLC ("WCM"), member FINRA/SIPC.

Debt and equity underwriting, trading, research and sales, loan syndications agent services, and corporate finance and M&A advisory services are offered by WCM.

Mezzanine capital, private equity, municipal securities trading and sales, cash management, credit, international, leasing and risk management products and services are offered by various non-broker dealer subsidiaries of Wachovia Corporation.

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