Global Resource Associates Inc.
FasTrack Finance™
Global Resource Associates Inc. / FasTrack™ Project Finance
Sale-Leaseback/PLUS™Financing Program
A Totally New & Unique Proprietary Triple-Net Operating Lease
The
Frees up funds invested in an existing low-return real estate facility. Secure the cash required to reinvest in a new high-return project or business venture. Regain ownership of the existing facility free and clear at the termination of the leasing period.
The PLUS in Sale-Leaseback/PLUS™
The Sale-Leaseback/PLUS™ program is a totally new and unique proprietary, patent-pending sale-leaseback structure that is offered exclusively by our financing group.
The PLUS program is an intelligent alternative to the standard triple-net bondable operating sale-leaseback and synthetic lease structures. It provides all the benefits of the standard sale-leaseback such as true sale of the facility, 100 percent of asset value at sale, off-balance sheet treatment, complete operational control of the asset, fully deductible lease payments, gain or loss for tax purposes, freeing up of cash invested in low-return facilities, and fast transaction turn-around time.
More importantly, the PLUS program also provides the following totally unique benefits:
üRegain Ownership of the facility free and clear.
üCapture Future Appreciation of the asset.
üRealize Cost of Funds substantially lower than standard triple-net transactions.
üAppropriate for strategic as well as non-strategic facilities.
The PLUS program has patent pending status, fully meets all new Financial Accounting Standards Board (FASB) requirements for off-balance sheet treatment, and has supporting legal, tax, and accounting opinions. The PLUS program should be considered by anyone seeking a standard sale-leaseback, using or considering a synthetic lease, or looking at debt or debt-equity financing. The PLUS program will provide significantly more competitive terms and benefits than other programs.
How Sale-Leaseback/PLUS™ Works
1. Purchase. Owner sells an existing real estate facility at true market value for a single cash payment.
2. Leaseback. Former owner leases back the existing facility for approximately 20-30 years, makes periodic lease payments, and pays tax, insurance, maintenance, and repair costs.
3. Financing. Former owner/lessee uses the cash payment from the sale of the existing facility to finance a new high-return project, to launch a business venture, or for any other purpose.
4. Ownership. At the end of the leasing period, former owner/lessee regains ownership of the existing facility free and clear.
The physical facility may be any type of infrastructure or real estate facility including power generating plants, large office complexes, hospitals, water treatment facilities, airports, industrial estates, corporate headquarter buildings, large manufacturing plants, refineries, retail stores of a large chain store, and so forth.
Program Requirements
Physical Facility. The existing real estate facility must have a market value of US$25 million or more (or US$50 million or more for a multi-facility transaction with no single facility smaller than US$10 million).
Lease. There must be a single lessee, and the leaseback must be for a period of approximately 20-30 years.
Credit Rating. The credit rating of the lessee must be investment grade for long-term debt (or there must be credit enhancement). The investment grade credit rating must be issued by Standard & Poor's, Moody's, or Fitch Ratings. Credit enhancement may be obtained from a bank, insurance company, or other entity with an investment grade credit rating for long-term debt.
Record of Success
Our financing group's principals have a proven track record in using sale-leaseback triple-net bond-type operating leases to assist Fortune 500 and other major clients free up funds invested in low-return facilities in order to reinvest those funds in high-return projects and business ventures. The principals' record of success, as advisors or principals, in completing transactions has exceeded US$7 billion over the past thirty years. Major sale-leaseback transactions successfully completed by the principals, representing approximately US$1 billion, include the following.
§BellSouth Telecommunications, Inc. US$110,000,000. Purchase and leaseback of corporate headquarters building.
§El Paso Natural Gas Company. US$110,000,000. Purchase and leaseback of corporate headquarters building.
§Wal-Mart Stores, Inc. US$300,000,000. Purchase and leaseback of retail stores.
§Kmart Corporation. US$125,000,000. Purchase and leaseback of retail stores.
§Albertson's Inc. US$100,000,000. Purchase and leaseback of retail grocery stores.
§Fred Meyer, Inc. US$110,000,000. Purchase and leaseback of retail stores.
§The Kroger Co. US$60,000,000. Purchase and leaseback of retail stores.
The Financing Group
Global Resource Associates and Global Equity Group have partnered to market and implement sale-leaseback programs in the
Global Resource Associates Inc. The company was organized in 1989 and specializes in marketing sale-leaseback programs for Global Equity Group. The principals and associates of GRA are responsible for client contact and service. The principals of GRA have over three decades of experience in marketing products and services worldwide. They received the
Global Equity Group. The company was organized in 1996 for the specific purpose of implementing sale-leaseback programs worldwide. The principals of GEG are responsible for structuring and closing each sale-leaseback transaction. They work directly with clients, investment bankers, and legal and financial advisors to structure each transaction to drive value to the client’s bottom line. The principals of GEG have over three decades of experience in sale-leaseback and other credit oriented transactions and have approximately 400 project facilities in their partnership portfolios. The principals have also acted as advisers to pension funds and other investing entities on the purchase of triple-net lease properties and served as the head of the bond departments of Shearson Hamill & Company and Upham Harris. They continue to maintain regular communications at a senior managing director level with the Wall Street investment banking community.
To Inquire
Additional information, supporting documents, and a proposal will be provided to pre-qualified clients during a personal presentation upon the signing of a confidentiality agreement. Please provide the following information.
1. Your Name and Title. Company and mailing address. Telephone. Fax. Email. Web address.
2. Existing Facility. Approximate market value – land, improvements. Facility type, age, useful life. Location (at this time the PLUS program is available in limited to the United States, Arab Emirates, Argentina, Australia, Belgium, Canada, Germany, Italy, Japan, Singapore, and United Kingdom). Entity owning land. Entity owning improvements.
3. Lessee. Name of entity that will lease back facility. Portion of facility to be subleased.
4. Credit Rating. Rating of lessee for long-term debt issued by Standard & Poor’s, Moody’s, or Fitch Ratings. If no credit rating, can an investment grade credit rating or credit enhancement be obtained? Please explain.
5. Financing Objectives. Objectives of entity selling/leasing facility.
6.Confidentiality Agreement. Signed confidentiality agreement protecting proprietary, patent-pending financing structure.
Contact Information
W. Gary Winget, Vice President
Global Resource Associates Inc. / FasTrack™ Project Finance
Tel +1-651-222-4206 / Fax +1-651-222-5263 / Email WGW@FasTrack-Finance.com / Web http://www.fastrack-finance.com/
Link http://www.FasTrack-Global.com
