Why do companies that own a building sell the building and lease a space in it? Ex: CBS with television city

286 views

Why do companies that own a building sell the building and lease a space in it? Ex: CBS with television city

In: 9

8 Answers

Anonymous 0 Comments

Short term gains.
You have just bought say, Woolworths, loaded the debt onto the company.
You then sell off the freeholds and rent them back.
Bang, huge profits for the new owners .
Run it into the ground, go bankrupt but walk away a lot richer.

You are viewing 1 out of 8 answers, click here to view all answers.