Collaborating with Big Companies for Financial Flexibility


At Augustus Capital, we pride ourselves on our expertise in crafting sale & leaseback transactions for some of the world’s largest and most influential companies. This financial strategy allows businesses to unlock the value of their owned real estate, providing them with immediate capital while retaining the operational use of their properties through leasing agreements.


Over the years, we have successfully partnered with numerous Fortune 500 companies, enabling them to optimize their balance sheets, improve liquidity, and reinvest in core business activities. Our clients span various industries, and we have built a reputation for delivering tailored solutions that meet each business’s unique needs.


The Semiconductor Industry and Augustus Capital


One sector that stands to benefit significantly from our sale & leaseback expertise is the semiconductor industry. This industry encompasses companies involved in designing and fabricating semiconductors and semiconductor devices, such as transistors and integrated circuits. As the backbone of modern technology, the semiconductor industry is crucial for advancing various technological innovations.


The introduction of the CHIPS Act has further highlighted the importance of semiconductor manufacturing in the United States. According to Mike Schmidt, director of the Chips Program Office, “Because of the Chips Act, every company capable of producing leading-edge semiconductors at scale is now expanding in the United States, and we have bolstered our country’s supply chain resilience and national security.” This expansion comes with significant financial demands, and that’s where Augustus Capital steps in.


A significant semiconductor industry player is currently navigating the financial challenges associated with large-scale manufacturing growth. Recently, the WSJ reported that an activist investor has urged the company to slow its manufacturing expansion to enhance cash flows despite expectations of receiving grants under the CHIPS Act.


In this context, a sale & leaseback transaction facilitated by Augustus Capital can provide a strategic financial solution. The company can free up substantial capital without disrupting its operations by selling its real estate assets and leasing them back. This approach alleviates the immediate financial pressure and allows the company to continue expanding its manufacturing capabilities to meet growing demand. An Augustus Sale & Leaseback would deliver meaningful cash savings in debt service expense, approximating 30-40% of the asset cost, during the first ten years of the lease. Additionally, the sale & leaseback tenant would have a minimally priced repurchase option to recapture the asset at the end of the lease and retain essential tax benefits, such as deductions of depreciation and the interest portion of the lease. 

 

The Augustus Advantage


As the semiconductor industry continues to expand and innovate, companies can significantly benefit from the financial flexibility of sale & leaseback transactions. Augustus Capital stands ready to assist these industry leaders in unlocking the value of their real estate assets, ensuring they have the capital needed to drive growth and maintain a competitive edge.


If your company is looking to optimize its financial strategy and support its expansion plans, consider the advantages of a sale & leaseback transaction with Augustus Capital. Contact us today to learn more about how we can help you achieve your financial goals.

In the ever-evolving business landscape, maintaining financial health is crucial. One innovative strategy to enhance liquidity and operational control is through a sale & leaseback transaction. This economic solution involves selling owned property to an investor, represented by Augustus Capital Corporation, and leasing it back under specified terms. Here is how Augustus Capital Corporation can help your business thrive:

Benefits of Sale & Leaseback with Augustus Capital Corporation

  1. Improve Cash Flow: Converting owned real estate into immediate working capital boosts liquidity, allowing businesses to fund growth, reduce debt, or invest in critical areas without disrupting operations.
  2. Enhance Balance Sheets: By turning fixed assets into liquid assets, businesses can improve their debt-to-equity ratio and overall financial stability, making them more attractive to investors and lenders.
  3. Reduce Real Estate Ownership Costs: By utilizing a sale & leaseback service, you can diminish the capital outlay needed. Compared to Wall Street, you’ll be paying substantially less. This reduces the capital and cash required to service that capital within the initial ten years of the lease.
  4. Extract Liquidity from Dormant Assets: Unlock the value of dormant real estate assets, converting them into cash that can be strategically utilized.
  5. Retain Control and Reclaim Assets at a Substantial Discount: Businesses maintain operational control over the property and retain the option to recapture the asset at the lease term’s conclusion, ensuring long-term flexibility.

Why Choose Augustus Capital Corporation?

The leadership team of Augustus Capital Corporation boasts a track record of success with esteemed companies such as:

Augustus Capital Corporation provides expert guidance, flexible lease terms, and a long-term partnership to help businesses maximize their real estate assets. With a deep understanding of the market, Augustus ensures each sale & leaseback arrangement aligns with your financial goals.
A sale & leaseback with Augustus Capital Corporation offers a strategic way to improve cash flow, enhance balance sheets, reduce costs, and maintain control over critical assets. Unlock the potential of your real estate today. Contact Augustus Capital Corporation to learn more about our innovative financial solutions.

Are you a chief financial officer looking to unlock the value of your real estate assets while maintaining operational control? Look no further than sale & leaseback arrangements, a strategic financial solution gaining traction across industries. Sale & leaseback transactions involve selling a property and then leasing it back from the buyer simultaneously. This structure provides immediate capital infusion while allowing businesses to continue using the property for operations. This framework offers numerous benefits, creating a win-win scenario, and Augustus Capital is your trusted partner in navigating this terrain.

Why Choose Augustus Capital for Your Sale & Leaseback Needs?

  1. Tailored Solutions: Our team understands that each business is unique; we craft
    solutions tailored to your specific circumstances and objectives.
  2. Financial Flexibility: Gain access to much-needed capital without resorting to traditional loans or diluting equity. Our sale & leaseback structures offer financial flexibility to fuel growth and innovation.
  3. Cost Savings: Converting real estate assets into liquid capital optimizes your balance sheet and redirects resources towards core business activities, resulting in cost savings and enhanced competitiveness.
  4. Maximize Capital Value: Augustus Capital can offer premium prices for existing corporate office properties.
  5. Operational Control: Maintain complete control over your property, ensuring business continuity and preserving your brand identity.
  6. Tax Benefits: Sale & leasebacks can offer tax advantages, including potential deductions on lease payments and depreciation benefits. Our team works closely with tax advisors to maximize these benefits for your business.
  7. Transparent Process: At Augustus Capital, transparency is paramount. We guide you through every step of the sale & leaseback process, providing clear communication and comprehensive insights to empower informed decision-making.

Unlock the potential of your real estate assets with Augustus Capital’s sale & leaseback solutions. Experience financial freedom, operational agility, and peace of mind while driving your business forward. Contact us today to explore how we can tailor a sale & leaseback strategy to suit your needs and goals.

Collaborate With Augustus

Whether Firms are looking to reinvest in their core business, de-lever their balance sheet, or cost effectively finance capital intensive projects, Augustus is here to guide them through the entire process.