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Clifford Chance

Clifford Chance

Briefings

Easing liquidity concerns by unlocking capital from real Estate: Sale & Leaseback Transactions

26 May 2020

Heading into the COVID-19 crisis, demand from overseas investors for "trophy" real estate assets in the UK translated into significant sale and leaseback opportunities as businesses looked to alternative sources of finance. With liquidity becoming paramount in the face of the economic fall-out from COVID-19, we are seeing a steady increase in companies looking at sale and leaseback transactions as a possible way to unlock cash that is tied up within their real estate which can then be used to invest in their businesses, to discharge existing debt or to pursue alternative investments. Sale and leaseback deals may also offer tax advantages to the seller and strengthen its balance sheet.

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