In sale and leaseback transactions, the seller enters into a long-term lease agreement simultaneously with the sale of its share or real estate, which ensures the continuation of its business activities. The seller then usually invests the money earned from the sale in the further development of its business. This form of transaction is used mainly in periods of economic downturn when banks restrict lending.
DELTA legal performed a legal due diligence review and participated in the negotiation of transaction documentation. In addition to Pavel Fára, the transaction involved lawyers Veronika Chrobok, Lýdia Cadete, Renata Hurychová and Libor Vacek, who covers the area of financing, and Jiří Absolon for the corporate area.
“We are glad that we had the opportunity to work with CTP again on another interesting transaction,” Fára said. “It makes us even happier that everything was successfully completed even at a time when other M&A transactions were suspended. Despite the coronavirus-related restrictions, due diligence was completed and contracts concluded during the summer of 2020. This was possible thanks to professional cooperation with the CTP team led by Michal Felcman, in collaboration with Kateřina Zemánková, Nina Hradečná, Jana Nováková and Oliver Oros.”
“We are currently seeing the growing popularity of sale and leaseback transactions,” Fára continued. “We are seeing a demand for them both on the part of businesses owning industrial real estate and on the part of clients from investment funds, for whom the sale and leaseback transaction is an interesting opportunity to supplement the investment portfolio.”
The production plant of the international Petainer group producing beverage packaging for consumers started its activities in 1997 in Aš, Czech Republic. Thanks to its strategic location near the motorway and near the German border, this complex benefits primarily from the export of its products to Germany. The whole complex occupies more than 25,000 m² and offers more than 12,000 m² of leasable area of production and office premises.