Bang & Olufsen offloaded its 16,400 sqm industrial premises in Kopřivnice to Palmer Capital in a sale and leaseback transaction. Bang & Olufsen signed a 15-years lease contract. CBRE, which brokered the deal, writes that sale and leaseback transactions are on the rise in the Czech Republic. Investors usually look at opportunities ranging from €1.5m to €15m, with yields between 8.5 and 10 percent.
“We believe that this is a new, growing trend by means of which businesses try to use money allocated in the ownership of property for investment in company development or new acquisitions,” says Richard Curran, managing director at CBRE. “Sale and leaseback as a tool for liquidity control helps businesses improve their financial indicators as well. The very good key financial indicators then contribute to the creditworthiness of the business. And with a better creditworthiness, the company may acquire additional funds to pursue its business activities.”
