However, if the standard comes into force, tenants have to place the obligation to pay rent over the entire-lease term on their balance sheets as a liability, which would "kill the whole sale and leaseback thing for companies like Tesco because it brings all of the debt back on to the balance sheet", explains a property insider.
Even if the likes of Tesco do find a way around the new accounting rules, some property pundits think that the appetite for supermarket sale and leaseback deals will eventually runout of steam.
And if changes to the accounting rules do come in, the latest wave of sale and leaseback activity could be rather shorter than hoped.
The Company's guidance also includes the estimated impact of the recently completed sale and leaseback
transaction, the anticipated debt repayment and the lower sales in its Knoxville-area stores as a result of adverse publicity concerning a Hepatitis A incident.
This press release and statements made by or on behalf of the Company relating hereto, including all statements concerning the Company's Refinancing Plan and its various components (including proposed debt financings, proposed sale and leaseback
transactions, and the proposed mezzanine financing), may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
These potential financing alternatives include mortgage financings, sale and leaseback transactions, and equity, equity linked, and mezzanine financings.
The Company has executed definitive agreements for the sale and leaseback of two communities in addition to those described above.
In addition, the Company is in advanced discussions (and in certain instances has entered into non-binding letters of intent) with several different parties relating to the refinancing and/or the sale and leaseback of up to ten additional communities.
In the past eight months alone, companies such as Qantas, Mitsubishi Motors Australia, and CSIRO have all successfully executed sale and leaseback
transactions funded through the debt capital markets, demonstrating the growing popularity of both "credit lease" and "commercial real estate-backed" securitizations in the Australian market," said Peter Eastham, associate, Structured Finance Ratings at Standard & Poor's.
The new program was launched with the signing of three sale and leaseback agreements for approximately $750,000 worth of aircraft.
Gilson, Chairman and CEO, commented, "We have been working with a major financial institution for several months now to develop a sale and leaseback program that made aircraft ownership more affordable and hassle-free.
The sale and leaseback program we have developed is advantageous to both parties.