Ascension Advisory Blog

Industrial Sale Leaseback in Querétaro, Mexico

Written by Chelsea Mandel | Jan 8, 2024 4:10:38 PM

Introduction:

Ascension Advisory is delighted to announce the successful completion of an industrial sale leaseback transaction in Querétaro, Mexico, on behalf of a repeat private equity client. The sale leaseback was a strategic real estate move for one of their portfolio companies—a leading manufacturer of engineered metal products.
 

Client Objective:

The private equity firm, aimed to optimize the financial structure of one of its key companies and utilized the sale leaseback as part of their financial engineering. The primary objective was to unlock capital through a sale leaseback for the client's facility in Querétaro. The proceeds were used to pay down existing debt and strategically reinvest in the business.

Solution: 

Ascension Advisory, leveraging its market expertise and collaborative approach, spearheaded the industrial sale leaseback process for the private equity firm's portfolio company—a leading manufacturer of engineered metal products. The deal team, with its extensive experience in navigating complex transactions, ensured a seamless process that aligned with the financial goals of the private equity client.
 

The chosen buyer, meticulously evaluated by Ascension, demonstrated a profound understanding of the Querétaro market and recognized the unique operational needs of a leading manufacturer of engineered metal products. The negotiation process resulted in favorable terms that ensured a mutually beneficial agreement for both buyer and seller.

Outcome:

The industrial sale leaseback transaction generated meaningful proceeds for the private equity firm's portfolio company, enabling them to successfully pay down existing debt and fortify their financial position. By strategically reinvesting capital into the business, the company positioned itself for sustained growth and innovation in a competitive market.

Conclusion:

The successful sale leaseback transaction in Querétaro, Mexico, orchestrated by the Ascension Advisory Team, reflects the private equity firm's strategic vision for optimizing its portfolio company's financial structure. This move not only unlocked significant capital for debt reduction but also empowered the portfolio company to reinvest strategically for sustained growth and innovation. The collaborative efforts of the Ascension deal team exemplify the value of leveraging a knowledgeable team to optimize the outcome from both a proceeds and deal terms perspective.