Raising capital from real estate

Abstract

Purpose

The purpose of this paper is to review the range of options available to corporates to raise capital from their real estate.

Design/methodology/approach

The paper provides a brief description of alternative capital raising capital options and their costs and benefits.

Findings

There are many options available to corporates to raise capital other than a sale and leaseback with different potential proceeds and costs of capital depending on the objectives of the corporate and the lease term they are prepared to sign.

Originality/value

This paper provides an introduction to alternative methods to raise capital from property including fixed and strip income investment models, raising debt against corporate property, the opco/propco model as well as the traditional sale and leaseback.

Citation

Evans, M. (2013), "Raising capital from real estate", Journal of Property Investment & Finance, Vol. 31 No. 3, pp. 220-222. https://doi.org/10.1108/14635781311322193