Corporate Real Estate Capital

Unlock the capital in your buildings.

Keep the site. Release the equity.

Danmar advises owner-occupier companies across Ontario on sale-leasebacks, surplus property sales and lease restructuring. We help you turn real estate into capital for growth, acquisitions or debt reduction, while you keep operating from the same site.

Transacted
$1B+
Lead advisor trained in law and finance
Ontario brokerage

Aggregate value of sale and lease transactions in which the principals have acted over their careers. Methodology on request.

When CFOs call us.

Tariffs or margin pressure are squeezing working capital.

You are funding an expansion, acquisition or buyout.

A loan maturity or covenant reset is coming.

The owners are planning succession.

You own more space than you use.

Your lease renewal is approaching and you want leverage.

Best fit: owner-occupied properties in Ontario.

What we do.

01

Sale-leaseback

Sell your building to an investor and lease it back on terms negotiated for your business.

  • Release most of the property's value as cash.
  • A long-term lease with renewal options, so you stay in place.
  • A competitive, confidential investor process.
02

Surplus and non-core property sales

Sell land or buildings you no longer need, without disrupting operations.

  • Pricing and timing analysis.
  • Confidential marketing to qualified buyers.
  • Negotiation through to closing.
03

Lease restructuring and renewals

Renegotiate the space you lease, before the landlord sets the terms.

  • Blend-and-extend and renewal negotiations.
  • Market rent analysis.
  • Relocation and consolidation options.
04

Buy, lease or expand

Decide whether to own or lease your next site, then execute.

  • Buy-versus-lease analysis with your finance team.
  • Site search and acquisition.
  • Lease or purchase negotiation.

Sale-leaseback or refinance?A fair comparison.

Both release capital from a building you own. They work very differently.

Point of comparisonSale-leasebackRefinance
Capital releasedUp to the full market value, less costsTypically 50% to 70% of value
Ongoing costRent, usually net, with set increasesInterest and principal payments
Lender covenantsNone from a bank; obligations sit in the leaseBank covenants and reporting
Balance sheetUnder IFRS 16, a lease liability is recorded. Private companies on ASPE may differ. Confirm with your auditor.Debt on the balance sheet
Future appreciationGoes to the new ownerYou keep it
Control of the siteLong-term lease with renewal optionsFull ownership
Tax on the transactionA sale can trigger capital gains and recapture of depreciationGenerally none

We compare both routes in every review. Danmar does not arrange mortgages or refinancing. Where refinancing is the better route, we refer you to a licensed mortgage brokerage. Speak to your accountant and auditor about tax and accounting treatment.

Estimate your capital unlock.

A quick, indicative comparison. No email required.

Adjust assumptions

Sale-leaseback$6,700,000

Refinance$3,500,000

Indicative rent: $650,000 a year ($54,000 a month), net.

Indicative only. Actual value, rent and terms depend on the property, the lease and the market. Before tax. Not financial, tax or legal advice. Refinancing figures are for comparison only; Danmar does not arrange mortgages.

How a capital review works.

01

Confidential capital review

A 45-minute call and a look at your property, financials and goals. Free. NDA on request.

02

Capital options memo

A written comparison of a sale-leaseback, refinancing (indicative, for comparison), an outright sale and holding.

03

Confidential market process

Qualified net-lease investors and buyers are approached without your company's name until you approve.

04

Negotiation

Price, rent, lease term, rent increases, renewal options, repair obligations and any buyback rights.

05

Closing

Your counsel and accountant handle their parts; we manage the process to close.

Your capital options memo.

Every review ends with a written memo your CFO can take to the board.

The market value range, and the rent your site can support.

Net proceeds under each option, before tax.

Proposed lease terms: length, rent increases, renewals and repairs.

The likely investor and buyer universe.

Tax and accounting points to raise with your advisers.

The timeline, and our fee, in writing.

Illustrative example, not a client transaction.

A GTA manufacturer owns a 60,000 sq ft plant worth $12M, with a $3M mortgage.

Refinance at 65% loan-to-value: about $4,800,000 of new capital ($7.8M loan, less the $3M payoff), before fees.

Sale-leaseback at market value: about $8,640,000 of capital ($12M sale, less about 3% in costs and the $3M payoff), before tax.

At a 6.5% cap rate, the company would pay about $780,000 a year in net rent.

The right answer depends on the rent the business can carry, the lease terms, and the after-tax result.

Sale-leaseback$8,640,000

Refinance$4,800,000

Indicative rent: $780,000 a year ($65,000 a month), net.

One advisor acrossthe whole transaction.

Daniel Sheikhan, Broker

Partner · Barrister & Solicitor · Attorney · Real Estate Broker/Danmar Empire Real Estate Corp., Brokerage

A finance degree, and a background in real estate investment and portfolio management.

A lawyer licensed in Ontario, New York and Minnesota. Danmar does not provide legal advice; we work alongside your counsel. The cross-border background helps when a US parent is involved.

How we are paid.

The capital review is free. If you proceed, our fee is success-based and set out in writing before any work begins. If there is no transaction, there is no success fee.

Questions CFOs ask.

What is a sale-leaseback?

You sell a property your business operates from to an investor and sign a long-term lease to stay. You receive the sale proceeds and keep using the site.

Do we lose control of our building?

You give up ownership but keep the right to occupy under the lease. We negotiate renewal options, permitted uses and alteration rights so operations are protected.

How long is the lease?

Terms are negotiated case by case. Longer terms usually support a higher sale price. We model several options in the memo.

Can we buy the building back later?

Buyback rights can be negotiated, but they can change the accounting treatment. Raise this with your auditor before agreeing to one.

What are the tax consequences?

Selling can trigger capital gains and recapture of depreciation on the building. We show proceeds before tax and work with your accountant on the after-tax result.

Will this affect our bank?

Sale proceeds usually repay the existing mortgage. Your lender may treat the lease as an obligation in its covenants, so speak to your lender early.

How confidential is the process?

Investors see an anonymized summary first. Your company is named only after you approve each party, and we sign NDAs on request.

Do you arrange financing?

No. Danmar does not arrange mortgages. Where refinancing looks better, we refer you to a licensed mortgage brokerage.

What does it cost?

The review is free. Our fee is success-based and agreed in writing before work starts.

Book a confidentialcapital review.

Tell us a little about the property. Daniel will reply personally.

What is driving this?

We use what you send to reply. We do not sell or share it, and you can withdraw consent at any time.

Danmar Empire Real Estate Corp., Brokerage. Information on this page is general and indicative. It is not legal, tax, accounting or financing advice. Danmar does not arrange mortgages. Figures in the estimator and illustrative example are estimates only.