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Is owning legal title essential for core, owner-occupied real estate? Or is it significantly more efficient to occupy those core assets under long-term leases, use the cash proceeds for other purposes, and leave the risk of real estate to others?
For most companies that own and occupy real estate, their financial success depends upon meeting the following objectives:
- to make the most efficient use of assets
- to obtain the lowest cost of capital
- to focus on its core business operations
Long-term net lease transactions help to meet these objectives by:
- realizing 100% of the current real estate value
- monetizing assets at a low cost of capital
- removing assets from the balance sheet
- providing unrestricted use of proceeds for expansion, stock buy-back programs, debt restructuring, acquisitions and other core business opportunities shifting real estate risk
- assuring long-term control over core assets
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