New way of releasing property assets without losing operational control

Fast action needed to benefit from a new way of releasing your property assets without losing operational control CORPORATES WITH OVER GBP100 MILLION OF PRIME PROPERTY ASSETS ARE SITTING ON UNLOCKED VALUE OF THEIR PROPERTY PORTFOLIOS.

CMS Cameron McKenna has just completed a groundbreaking £335m property sale and leaseback securitisation for a leading UK retailer.

Are you under pressure to unlock the value of your property portfolio from shareholders? The introduction of cutting edge techniques now enable you to . . .

- make significant savings on your finance costs cheaper interest rates are possible in this type of financial structure securitisation along with potential tax benefits enables you to satisfy shareholders and to achieve a greater return on your assets.

- benefit from flexible asset management/flexible balance sheet management this structure allows you to unlock the value of your property portfolios in a more flexible way than traditional sale and leaseback transactions, with the option of substituting properties or developing the premises at a minimal transaction cost. Properties may be substituted in or out of the portfolio.

- provide greater certainty to your organisation's financial planning through fixing your rents rents are fixed, providing security for your organisation and for your investors.

IS IT FOR YOU?

This structure opens the door for corporates with property assets over £100m to access the capital markets utilising securitisation techniques. Leading corporates are waking up to the fact that their non-core prime assets are underperforming and are turning to cutting-edge securitisation techniques to unlock the value. This allows them to focus on core competencies - whilst still maintaining operational control.

But, be quick - stamp duty changes in July mean that you need to act fast to maximise the benefit from this type of securitisation structure. After this time the savings will be reduced.

WHY US?

We are the first law firm to have acted for a major retail occupier on this type of deal with significant savings. The team worked in conjunction with Clifford Chance who acted for the financier.

Our experience gained from structuring the first deal of this type, combined with our understanding of the property and securitisation markets, places us in a unique position to advise companies in the future. You will benefit from significant time and cost savings due to our accrued understanding.

We are very excited about the benefits this deal can offer to businesses and we anticipate that this new structure may well become the blueprint for other corporate organisations looking to unlock the value of their property portfolios.

WHAT DO YOU NEED TO DO NOW?

If you would like to know more about how this type of deal could be beneficial to your business and would like members of our team to meet with you to discuss this further in confidence please call/e-mail any of the contacts listed below or your usual CMS Cameron McKenna contact.

But, be quick, as stamp duty changes will affect the deals not started after mid April this year.

Ashley Painter Structured finance partner tel: 0207 367 3135 e-mail: [email protected]

Nick Brown Property partner tel: 0207 367 2103 e-mail: [email protected]

WHAT THE MARKET IS SAYING?

FT, 22 Feb 2000 Companies opt for a rethink on property "The disposal of corporate real estate is on everyone's agenda now in a way that is was not before . . . .it is being driven be companies wanting to concentrate on their core competencies, and, for many companies, operating real estate is simply not a core competency."

Legal Week, 30 March 2000 Camerons, CC opt for retail therapy "The structure enabled the creation of a capital markets debt instrument, while at the same time allowing Sainsbury to maintain full operational flexibility." "The transaction will produce significant savings for Sainsbury, which like other retailers has substantial property assets, the true value of which has not been realised in the past."

Retail Week, 10 March 2000 Sale and leaseback deal highlights capital trend "Sainsbury's had considered a conventional sale and leaseback of the portfolio . . . but the new structure holds a number of advantages"