Consulting
When a company grows, it often needs to invest in more space. What’s the best approach here: buying or renting? Conversely, at some point you may want to slow down, change course, or even dispose of your company. What happens with your commercial real estate in these circumstances?
We give you advice on the various options available to exploit real estate in a carefully thought out way. One the one hand, it means your company can accompany growth physically, and on the other it gives you enough financial headroom to further invest in your company. As a result, you can maximise the return from your accumulated assets.
Whatever growth phase your company is in, Oreon Properties will gladly assist you in exploiting your commercial real estate strategically at any time, entirely in function of your ambitions and needs as a businessperson.
Buy or rent?
Both options have their advantages. Which option is best for you depends on your situation and your ambitions as a businessperson.
If you are starting a business, it might be better to rent first. This option allows you to continue to invest in the further development of your company, because at this stage the future is often uncertain. Your company might grow very quickly straight away, or you may have to move to a different area.
If your company has already grown into a profitable concern, you have no ambitions to grow further in terms of employees or machinery, and you plan to stay at the same location for more than five years, then buying business premises could well be the best option. After all, it means you have been active for a few years, and have sufficient resources of your own to invest in business premises. You will need these resources, because banks never finance the full purchase cost.
Look for premises that suit your business activities and remain a good investment in the future. Take into account a wide range of factors, such as location, accessibility, the ease with which the premises can be rented out, etc.
Rent out part of your business premises for extra cash flow
Sometimes you find ideal business premises, but they are too big for your needs at the time. You might have various premises that are costing too much, or the growth of your company could be hindered by all kinds of circumstances. Empty space can cause costs to spiral unnecessarily. You can compensate these costs by renting out or selling part of the business premises.
Oreon Properties will gladly assist you in this process.
Sale and leaseback: financial headroom for your company
Your company can use the real estate it possesses, such as an office or warehouse, to keep your operational business ahead of the competition via a sale and leaseback transaction.
In a sale and leaseback transaction, you sell your property and then lease it back for a long period. This releases the equity tied up in real estate, and allows you to continue to invest in your company, finance acquisitions, or expansion.
Get good advice about financing and leasing conditions, and compare your options. Is your financier a real estate specialist, and familiar with the market and your sector? This could influence the conditions.
At Oreon, we aim to give you the very best advice and guidance in the search for a suitable investment company. We also draw up the sale and lease agreement.
What happens with real estate if you want to sell your company?
If you want to sell the company but keep the real estate, you can transfer the real estate to a new company. In other words, you sell the active company, but the real estate remains your property. You can then rent it out, and enjoy additional income.
There is also a range of solutions available if you want to sell both the company and the business premises. If the acquirer of your company is also interested in the business premises, you’re in a win-win situation; your real estate increases the value of your company. If the acquirer is only interested in the company, and not the property, then the best course of action is to place the property in a new company and sell it separately.
Whatever growth phase your company is in, you can exploit your real estate strategically at any time, entirely in function of your ambitions and needs as a businessperson. Oreon Properties will gladly assist you with this. Please don’t hesitate to contact us for more information.
In need of advice?
We would be happy to make time for you.
