Introduction:
Ascension Advisory is proud to announce the successful completion of a 3-building sale leaseback transaction for Jtec industries, a leading manufacturer of material handling equipment solutions. The transaction involved three of their operational manufacturing assets located in Illinois, serving as the company’s mission-critical footprint for the entirety of their operations.
Client Objective:
Jtec aimed to unlock capital tied up in its real estate assets to provide nondilutive liquidity for the business and its principals. This strategic move was designed to redeploy capital into a higher and better use for the company and its owners, while maintaining the business's operational stability and growth trajectory at the subject properties.
Solution:
Ascension Advisory leveraged their extensive investor universe to procure an investor who was well-versed in the material handling equipment industry. The Ascension team ran a competitive bidding process, attracting multiple offers. The chosen buyer appreciated the strategic value of the subject portfolio, totaling over 200,000 square feet on 18 acres of land. This buyer submitted a competitive offer that reflected the strategic importance of these assets to the business. Additionally, the investor agreed to fund the future expansion project that was contemplated on site at one of the subject properties. Ascension worked closely with the buyer and Jtec to navigate due diligence and lease negotiations, aligning all parties and addressing any challenges that arose during the process, ensuring a seamless transaction.
Conclusion:
The 3-building sale leaseback transaction provided Jtec with a creative liquidity solution for the business, without giving up any operational control. With Ascension Advisory’s expertise and strategic approach, Jtec successfully unlocked substantial value from its real estate assets, generating meaningful proceeds that the company could use to further the business's future growth plans.
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