Sale Leaseback on Behalf of Te Creemos Headquarters in Mexico City

Introduction:

Ascension Advisory successfully closed a sale leaseback transaction on behalf of PC Capital's portfolio company, Te Creemos. The subject property serves as the company's corporate headquarters in Mexico City. This transaction provided Te Creemos with substantial capital to reinvest in its operations while securing long-term control of its mission-critical operation.

Client Objective:

Te Creemos, a leading financial services provider in Mexico, sought to unlock capital from its real estate assets and was searching for a liquidity solution that also provided operational continuity for the business. Unlocking the capital through a sale leaseback of the company's HQ facility perfectly aligned with the company's goals, and was accretive to its private equity firm's investment strategy as well.

The company’s headquarters is a mission-critical location for the operations and the company has operated here for over 20 years. In 2019, the company invested significant capital into property upgrades to meet the latest operational standards, further reinforcing the business's long-term commitment to the location.

Solution:

The Ascension team ran an efficient investor outreach process focused on private investment groups with a deep understanding of the local real estate market in CDMX. A local investor was ultimately selected, offering attractive financial terms and a flexible long-term lease structure that aligned with Te Creemos’ operational needs.

The successful execution of the transaction allowed Te Creemos to monetize its headquarters real estate while maintaining long-term occupancy of its key location. The proceeds from the sale were reinvested into the business to drive continued growth.

Conclusion:

This transaction underscores the attractiveness of the sale leaseback option in generating liquidity in a short period of time and in providing operational flexibility for the operator. By unlocking capital through the sale leaseback, Te Creemos is well-positioned to accelerate its growth plans while maintaining full operational control of its headquarters.