Hermes Healthcare Advisors

Sale-Leaseback & 1031 Exchange

Hermes Healthcare Advisors are experts at structuring sale-leaseback financing that is a cost-effective alternative to investing in commercial real estate.

Sales and Leaseback is a capital management tool that allows corporations to use and control essential real estate without employing vast sums of debt and equity capital in an illiquid, poorly perceived asset class. Properly executed, a sale-leaseback transaction can:

- Unlock corporate capital trapped in under-performing real estate.

- Provide longer-term capital (15-25 years) than is available from traditional debt sources

- Result in off-balance sheet treatment for generally accepted accounting principles (GAAP) purposes.

- Improve working capital, balance sheet strength and financial position of the business.

In today's financial economy, Hermes Healthcare Advisors can help corporations structure liquidity into their financial objectives limited by the lack of access, use or allocation of capital.

Corporate-owned real estate can be costly and erode profits. However, Hermes HCA can utilize its financial modeling techniques to help its clients unlock shareholder equity in Its real estate. Sale-leaseback transactions are an alternative method for raising capital especially in illiquid markets.

A sale-leaseback transaction allows a property to be sold and immediately leased back to the seller. After the transaction the seller is able to make use of the property in a more productive way. Tenants profit from the sale, while retaining full operating control of the property.

A sale-leaseback transaction is a form of off-balance-sheet financing; the major benefit of sale-leaseback financing and a 1031 Exhange structure is unlocking the capital bound by real estate ownership.

Hermes Healthcare Advisors utilizes intellectual property to structure a 1031 exchange within a Sale Leaseback structure so that the seller of the real estate, through the commitment of the lease, can defer the tax just as if they were purchasing the real estate. It can be a lucrative option for companies seeking to:

- Defer Tax.

- Convert debt to equity.

- De-leverage your balance sheet.

- Strengthen balance sheet.

- Provide an injection of liquidity.

- Unlock working capital.

- Increase financial ratios.

- Increase credit ratings.

- Reduce the cost of borrowing.

- Look to finance growth.

- Make an acquisition.

- Pay down debt.

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