Alta Real Estate Fund Announces Sale-leaseback Program

USA, March 2023 - Alta Real Estate Fund, a leading Cannabis real estate lender, announces the launch of the Cannabis sale-leaseback program. This program is created to help Cannabis businesses to unlock their real estate assets' value by selling their property and leasing it back from the company at a competitive rate.

The Cannabis sector is rapidly expanding, and many firms are struggling to meet the increased demand. This expansion has resulted in a scarcity of suitable real estate, which may be a substantial hurdle for firms trying to expand. Alta Real Estate Fund's sale-leaseback program provides Cannabis businesses with a flexible financing option that makes them realize the value of their real estate assets and reinvest the cash back into their business.

Our Cannabis sale-leaseback program is a game changer for Cannabis firms eager to develop and expand. These companies may get financial help to grow their operations and capitalize on new possibilities by releasing the equity in their real estate holdings.

Benefits of the sale-leaseback program

Generates immediate cash

The seller enjoys the quick cash facility through the sale-leaseback program. The corporation receives a lump sum payment for selling the property, which may be used to pay down debt, fund new initiatives, or invest in the business. 

Reduces debt

Many firms are in heavy debt, which may put a strain on their financial condition. Companies may pay off the existing debt by selling their assets through a sale-leaseback transaction. This can help to cut interest payments and increase the credit rating of the company, turning future funding more accessible.

Improves cash flow

A sale-leaseback program can enhance a company's cash flow to produce immediate cash. The corporation can avoid the upfront expenditures of acquiring or creating new real estate by leasing it back from the investor. Therefore, they may make lease payments over time, which is more manageable from a financial standpoint. This can free up funds for other aspects of the firm, such as marketing, R&D, or employing new personnel.

Provides flexibility

This program also provides flexibility to the seller. The corporation may unleash asset value by selling it without giving up ownership of the property. They can continue to operate their business from the location and make any necessary modifications to the property. Moreover, lease conditions can be arranged to allow further flexibility, such as the opportunity to extend the lease or buy the property back from the investor at a later date.

Lowers risk

For businesses, owning real estate may be a dangerous undertaking. Property prices change, and unanticipated maintenance or repair expenditures can eat into earnings. The corporation can pass some of the risks to the investor by selling the property and leasing it back. The investor is responsible for property maintenance, allowing the firm to focus on running its business.

Enhances focus on core business

A sale-leaseback program might provide an opportunity for enterprises that own and manage real estate assets to refocus on their primary business. They can free up time and resources that were previously allocated to property management by selling the assets. It allows the corporation to concentrate its efforts on areas like customer support, product development, and sales and marketing.

Provides tax benefits

Lastly, the seller may benefit from a sale-leaseback program. Lease payments to investors are often tax-deductible, which helps reduce the company's tax liability. Furthermore, by selling the property, the firm can avoid capital gains taxes that would otherwise be charged if the land was sold outright.

Alta Real Estate Fund's Cannabis sale-leaseback program is intended to be a flexible financing option. We recognize that each Cannabis business is unique, which is why we offer a variety of funding options that may be tailored to their exact requirements. Our team of experts has extensive experience in the Cannabis industry, and we are committed to helping businesses succeed. You can contact us by writing to ir@alta-financial.com or visiting our website.