SGC is well positioned, especially in tight credit markets, to fund triple net leases - a leasing arrangement in which a tenant is responsible for payment of rent on a property, and is also responsible for all other expenses associated with that property, including and not limited to maintenance and repairs, real estate taxes, etc. The tenant’s responsibility runs for the duration of the lease, allowing the owner of the real estate to “set it and forget it,” since the lease payments cover all property-related expenses.  If the tenant is an investment-grade rated entity, SGC can provide Monetization Financing and provide the owner with a lump sum payment equal to the present value of the future lease payments, at attractive fixed rates, without fees and without recourse to the owner. 

SGC is also well positioned to fund new construction and development when at least one of the partners in the deal is an investment-grade rated entity.  SGC has the ability to provide funding at competitive rates and even defer the start of repayment until the project is completed.  We will work with you to determine your capital requirements and the appropriate repayment schedule that translates to a present value equal to the capital requirements.  The agreement can be structured as a development, capital contribution or similar agreement with minimum required payments over time and as a result it will not be treated as debt on the books of the investment-grade rated Obligor.  Further, the funds are provided on a non-recourse basis to the borrower.

Sample Transaction : ABC Company is an investment-grade rated company with a division that specializes in construction of large commercial developments.  ABC Company has an option on a tract of land in a major US city that it wants to develop a 50 story office tower on.  They require $400MM to acquire the land and build the building.  ABC Company can enter into an agreement with SGC agreeing to make required minimum payments in the future, the present value of which is $400MM.  At closing SGC would provide ABC Company with the $400MM that they need to complete the acquisition and fund the construction.  There are many benefits to ABC Company utilizing Monetization Financing for this project.  In addition to low fixed rates, no fees or equity, nor the need to tap existing lines of credit, the repayment schedule can be set up so that repayments don’t commence until the project is near completion or completed.