Who Are the Leaseback Buyers?

There are two major types of French Leaseback buyers: buyers buying brand new assets and buyers buying from the second-hand market. If you are trying to sell your asset, you are selling to second-hand buyers. Below is a quick outline regarding some of the basic information between the two different types of buyers:

 

Buyers Buying New Assets:

  • Never been used and/or have had a tenant

  • Sold by financial advisors with limited knowledge of the asset

  • More of a financial investment rather than a real estate investment

 

Buyers Buying Second Hand Assets:

  • Previously owned buildings or apartments under the Leaseback title

  • Opportunistic Investors

    • Buyers who will not use and live in the asset

    • Invest in a leaseback with a track record and attractive yield

  • Real Estate Users

    • Buyers who will also use and live in the asset

    • Willing to kick out the tenant depending on the property’s real estate value

 

This is important to understand before going into the market, whether as a buyer or a seller. As a seller, this is just one of the key steps required to sell a French Leaseback.