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Natixis, leasing solutions for the long-term financing of your real-estate projects

Looking for an alternative solution to finance your company’s growth? Natixis will help you optimize your resources by financing your business property.

Real-estate leasing, a complementary source of financing

For companies that invest in growth projects, looking to upgrade their production tool or looking for specific property, real-estate leasing is an essential part of their global financing strategy.

In real-estate leasing, your project is financed by a leasing company that provides its support at every stage of your project (purchase, construction). Throughout the life of the contract, you are the lessee of the property and you pay a rent. At the expiry of the contract, you can exercise the option to purchase the property by accepting the unilateral promise to sell included in the contract. You then become the owner of the building.

Specific case: leaseback
In the case of a leaseback operation, a company that owns a business building, which is recorded in the fixed assets of the balance sheet, can sell this building to a lessor and immediately take out a real-estate lease and become lessee. For the company, this means no loss of economic ownership and the capacity to recover the legal ownership of the building at the expiry of the contract.

Advantages
Natixis’ lease solutions, which apply only to real-estate assets for a business use, meet the various needs of companies and have many advantages:

  • diversification of long-term financing resources;
  • readily available cash;
  • full financing of a real-estate transaction, including the acquisition of the plot, the financing of the construction, VAT, fees;
  • favorable taxation (see box below);
  • a tailored solution (from 7 to 15 years, rent adjusted to the expected profitability of the investment and seasonality of cash flows) that enables the company to freely manage development projects while controlling liquidities.

 

Note: Taxation will change from 2013!

The taxation applied to leaseback offers will no longer exist as of December 31, 2012. In view of the time needed to examine and set up such an operation, companies that are interested should consider it right now.

The capital gains resulting from the sale of property can be spread out in equal parts over the life of the lease contract (12 to 15 years), resulting in spread-out cash outflows.

 

The expertise of the best at your service

French No. 1 in real-estate leasing in 2011, Natixis Lease develops attractive solutions to finance business property.

Based on its 20 years’ expertise in real-estate – market and companies - and its multidiscipline knowledge (finance, legal, sector, wealth management, real estate, etc.), Natixis Lease adapts to the financial strategy and the wealth management policy of its clients. Natixis Lease offers tailored solutions (especially when the lease is in addition to a more global project => e.g.: interest-rate hedging) and the possibility of syndicating major projects.

 

Case study

Client need
A major household appliance manufacturer wishes to extend its premises to increase production capacity. Its production site is already under leasing at Natixis.

Natixis solution
Based on the first lease financing, Natixis designs a global solution that allows the client to refinance its second investment under more favorable terms.

Client benefit
The client optimizes cash management, increases production capacity and develops exports.

 

Any questions? Contact us right now!