Introduction:
Ascension Advisory facilitated a successful sale leaseback transaction on behalf of a leading provider of artificial lift products, technologies, and services. The transaction enabled the company to unlock capital tied up in its real estate, supporting its growth and operational goals while maintaining long-term occupancy in its mission-critical facility.
Client Objective:
The Company, a premier global manufacturer with over 1,250 employees across 50+ facilities, sought to monetize the value of its industrial real estate in Texas MSA. Given the facility's strategic importance as the center of the company's Automation division, as well as serving as the company's Corporate Headquarters, the Company was happy to sign a long-term lease at this location as part of the sale leaseback transaction.
Solution:
Ascension Advisory designed and executed a tailored sale leaseback solution to meet the client's strategic objectives.
Key elements of the transaction included:
- Long-term operational control: A long-term triple-net (NNN) lease agreement ensured the client retained full control of the property while transferring real estate ownership to a qualified landlord.
- Strategic buyer selection: Ascension leveraged its extensive network to create a competitive process and ultimately identified a local investor with deep expertise in the Houston industrial market. The buyer recognized the value of the facility to the broader business, and was attracted to the mission-criticality of the property.
- Streamlined transaction process: Ascension worked closely with all stakeholders to ensure alignment from start to finish, facilitating a quick and efficient closing.
The sale leaseback transaction unlocked capital for the client at attractive economics and the lease provided significant flexibility for the operating business. With the strategic support of Ascension Advisory, the client achieved a fantastic outcome with this sale leaseback transaction. This case study underscores Ascension Advisory’s expertise in crafting tailored financial solutions for clients in capital-intensive, industrial industries.
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