Coffer Corporate Leisure

Many portfolios across the leisure sectors contain freehold or long leasehold property. We have advised numerous investors and operators on how to best extract value from these.

Sale and leasebacks can be structured taking into account the traditional way of assessing rental on a value per square foot basis. The more sophisticated property investors take into account the long term sustainability of rent by looking closely at the rent cover as a multiple of profits generated by the particular business operating out of the property. The more secure the income the more the rent cover can be optimised increasing the capital repayment to the operator from the landlord.

The underlying property value, the rent cover and the covenant are all crucial in achieving best value for the seller and a smooth transaction that is acceptable to the buyer and its funders.

Often value can be maximised by separating an operating company (opco) from a property company (propco). Coffer Corporate Leisure has been involved in a number of transactions where Joint Venture bidders have worked together to submit an “opco“ and a “propco“ offer for a business to maximise value.

Structuring to maximise property assets at rents and capital values which are acceptable to entrepreneurial property investors and operators can add significant value.