Enhancing lease performance through structured finance | CRE – Our industry today, tomorrow & beyond

During the market uncertainty of the pandemic, structured finance solutions such as credit tenant leases (CTL) and asset leasing (AL) have provided businesses an attractive method to secure financing. These enable tenants to secure debt against their credit rating rather than against physical real estate, the model seen in more traditional structures.

So in terms of the emerging trends what we’re seeing in the corporate space particularly corporate capital markets is that corporates are looking more creatively at what products and structures they they execute going through the pandemic there’s been a need for corporate companies to raise cash and strengthen their balance sheet so a lot of what we do is

We support clients in saving leads back transactions and we’ve managed those transactions over the last 24 months so ultimately the salem lease bank is where the corporate sells assets that they own and what they do is they take a lease back for a duration of time that suits their business needs so that helps them raise cash and improve their balance sheets

Now because of the accounting treatment of those structures um and how they’re treated on balance sheet clients are now more interested in debt structures which uh we’re doing a lot of work on right now so things like credit tenant leases or asset leasing structures are at least coming onto the agenda and they’re at least being discussed and explored we don’t

See them executed in every sense but they’re certainly being explored in in more detail well the way colliers is partnering with its clients to address the challenges is by providing them advice strategic advice around the various options and products available to them but all of this is really driven by the financial and operational objectives so we really

Listen to the client in terms of what their business needs are and then that translates into the real estate strategy and execution that we need to deliver for them so that could be the sale of an asset it could be the refinancing of an asset really depending on whether the company is growing and expanding in a particular market or whether they actually need to

Contract or whether they need to raise capital so it really depends on the company’s objectives and what they need to do that then translates into the downstream transaction of where we support them in terms of responding to the need of the occupier what they need to do is to listen to the occupier and i think treat them as people so it’s not a company it’s

Actually what do the people need so a lot of our clients are really focused on the experience of their of their staff really to retain and attract top talent and a lot of what we do is real estate projects are secondary to the staff needs and the human needs so focusing on the human needs of their staff keeps talent it also attracts new talent and then out of

That will come real estate projects but really real estate projects are a downstream function of what their people need

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Enhancing lease performance through structured finance | CRE – Our industry today, tomorrow & beyond By Colliers EMEA