SALE-LEASEBACK FINANCING
WHAT IS IT?
The sale-leaseback is a form of financing in which a
university sells its real estate for cash and
simultaneously signs a long-term lease with Mantra.
Sale-leasebacks enable universities to realize 100% of the true market value for their facilities and re-deploy that capital into their core business — academics.
ADVANTAGES
• Immediate access to capital
• 100% market value realization of otherwise illiquid
assets
• Potential to keep transaction off balance sheet
• Continued funding for operational control of
facilities
• Increased return on assets
• Increased borrowing capacity through strengthened
balance sheet
USES
• Constructing new facilities
• Funding deferred maintenance
• Debt reduction
• Acquiring additional facilities, technology and
equipment to grow your campus
• Transition out of a synthetic lease, mortgage, or
other binding debt instrument — such as a tax-exempt
bonds
• Matching long-term assets with long-term liabilities
