Case Study: $16M Sale Leaseback Transaction for KTX GroupOverview

Ascension Advisory completed a sale leaseback for KTX Group's U.S. manufacturing facility in Toccoa, Georgia.

The transaction was executed in partnership with KTX's shareholder, AEQUITA, a Germany-based investment firm. The sale leaseback unlocked capital from a mission-critical manufacturing facility while allowing KTX to continue operating under a new long-term lease.

Headquartered in Germany, KTX manufactures injection-molded interior and exterior automotive components for global OEMs, with operations across Germany, the United States, Serbia, and Mexico. The Toccoa facility serves as the company's U.S. manufacturing hub, producing specialized plastic components for North American customers.

Transaction Approach

Ascension structured and executed the sale leaseback of KTX's 215,538-square-foot manufacturing facility in Toccoa, Georgia. The property was built between 2015 and 2017, sits on 32 acres, and the company has invested over $18 million into the facility and on-site equipment. Working closely with AEQUITA and KTX, Ascension positioned the asset around the strength of the U.S. operating business, the facility's role within KTX's North American manufacturing platform, and its strategic location serving the Southeast automotive market. The process highlighted the property's specialized manufacturing capabilities and high barriers to relocation.

The transaction resulted in a new long-term absolute triple-net lease with annual rent escalations, providing KTX with capital for reinvestment while maintaining uninterrupted operations for the operating company.

Outcome

The transaction unlocked capital for KTX while preserving long-term control of its U.S. manufacturing operations.

For AEQUITA, the sale leaseback converted owned real estate into accretive capital without disrupting day-to-day operations. For the real estate investor, it added a modern industrial asset leased to a global automotive supplier to its investment portfolio.

The transaction highlights Ascension Advisory's expertise in helping European investment firms unlock capital from their portfolio company real estate assets through highly-tailored sale leaseback transactions.