Case Study: Sale Leaseback of Auto Manufacturing Facility in Germany

Ascension Advisory advised its private equity client and one of its portfolio companies on the structuring and execution of a sale leaseback of a mission critical industrial facility located in Markdorf, Germany. The company is a leading provider of advanced motion control and actuator solutions serving the global automotive industry. The transaction enabled the business to unlock real estate capital while maintaining full operational control of a long-standing manufacturing site integral to its global production footprint. Proceeds from the sale leaseback were used to enhance liquidity and support broader strategic initiatives at the platform company.

Objective

Ascension Advisory identified an opportunity to unlock capital embedded in owned real estate while preserving operational continuity of a critical production facility. The asset’s long operating history, strategic importance to the company’s manufacturing operations, strong tenant credit profile, and long-term lease structure generated meaningful investor interest. Industrial manufacturing assets tied to essential automotive supply chains continue to attract institutional capital due to their operational stickiness and durable demand characteristics.

Solution

Ascension Advisory structured and managed a competitive investor process, highlighting:

• The mission critical nature of the facility to global operations
• The company’s decades-long operating history at the site
• Strong tenant credit and private equity sponsorship
• A long-term lease structure designed to provide stability and flexibility

The transaction required careful coordination across jurisdictions, as well as alignment between the sponsor, operating company, and investor to ensure seamless execution. Through proactive buyer engagement, detailed due diligence management, and disciplined negotiation, Ascension Advisory delivered competitive market terms for its client.

Outcome

Through the sale leaseback, the company was able to:

• Generate significant liquidity to reinvest into the business
• Reduce leverage and strengthen the balance sheet
• Retain full operational control of a mission critical facility
• Maintain long-term occupancy under a stable lease structure

This transaction demonstrates the effectiveness of strategically structured sale leasebacks as a capital solution for sponsor-backed industrial businesses seeking to enhance financial flexibility while supporting long-term growth.