Our sale and leaseback
of the Denver Tech and Billerica properties enables us to further strengthen our balance sheet, while maintaining management of these outstanding properties," said Fred J.
The seller-lessee retains substantial risks of ownership in the property through the temrs of the leaseback
Retailers anticipating a future sale/ leaseback
should consider meeting this standard at the time of acquisition to avoid the costs and potential risks of having to fill in gaps in the environmental report later.
In the case of disqualified leasebacks
and long-term agreements, which are presumed in some respects to be "abusive," rent is accounted for using the constant rental accrual method.
If the rental agreement is a disqualified leaseback
or long-term agreement that has increasing or decreasing rents, a principal purpose of which is tax avoidance, the fixed rent for each rental period is redefined as the constant rental amount.
Some recent example of sale leaseback
transactions include Time Equities Inc.
We know of two British companies that have completed sale leasebacks
recently with subsidiaries in the United States and due to British Gap Accounting have recognized the gain in the year of the sale.
Larger companies that execute sale leasebacks
might do so to avoid the cost and expense of having internal facilities management staffs.
Meanwhile, Sainsbury's, another long-time exponent of sale and leasebacks
, is also poised to launch a new property divestment programme.
As corporate sale leasebacks
are now considered a legitimate source of capital, they are being considered with the same weight as any other source of equity or debt.
With more owner-occupiers changing their attitude towards freehold property, sale and leasebacks
are playing an increasingly important role in the property investment market.
This press release and statements made by or on behalf of the Company relating hereto, including all statements concerning the Company's recapitalization efforts, proposed equity financings, proposed sale and leaseback
transactions, potential payments pursuant to earn-out arrangements, and results of operations for future periods, may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.