Capitalize on the Value of Your Branch Real Estate
Capture your institution’s
fixed asset value by selling your  branch
and office properties to an investor and
subsequently leasing the assets back. The transaction
allows you to extract real estate value for shareholders
by transferring unrealized fixed asset value into
your institution’s Price-to-Earnings and
Price-to-Book ratios.
The BSG Financial Sale/Leaseback
process provides the optimal combination of the
following factors for a successful transaction:
analytics that reflect your own financial
institution-specific data; long-term
control of and operating flexibility over
your facilities; transaction execution expertise;
and the best possible price.
How
it works.
• Financial Institution (FI) sells location(s)
to investor;
• Investor leases same locations back to
FI on long-term basis (i.e., 10–20 years)
with renewal options;
• Real estate industry standard rent terms;
• FI enjoys right of first refusal on any
potential sale of the building(s);
• Operating lease provisions; and
• Other standard lease terms, as negotiated
between FI and investor.
| Benefits |
| • Increase
net income by converting non-earning,
depreciated assets into investable funds. |
| •
Allow Seller-Lessee FI to recognize
gain, if any, from sale/leaseback transaction
over lease term. |
| •
Eliminate remaining depreciation charges
related to sold property. |
| •
Generate current period “excess profit”
(Tier 1 Equity) in certain
circumstances. |
| •
Qualify for Operating Lease
accounting treatment. |
Contact Hank Thompson, Executive Vice President,
for a FREE analysis of your opportunity.
(866) 274-8900, ext 230 or by e-mail.
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