Sale & leaseback could answer refinance needs as rates rise

The current high-interest rate environment is generating new opportunities for some players particularly those who can fulfil resultant refinancing needs.

“I’m quite bearish on the economy,” said WP Carey executive director European investments Karolis Adlis. “When the cost of debt goes up so much, the market has to change and naturally the pricing of real estate transactions is changing as well.”

He said that his company’s sale and leaseback product can help clients who need to refinance debt. “We’re going to be here to provide them with that financing.”

He said that last year people were hesitant as they were not sure which way rates would go. “While we were ready to buy, there were quite a few sellers not willing to sell it because they were waiting for the market to suddenly become better.”

“I don’t think markets will become better,” he said. We have seen one of the longest bull markets in modern human history. “We have a generation of people who grew up in a low-interest environment and don’t realise that low interest is not the norm.

“I think now we’re returning to the norm, which is the high interest rate environment. This is going to be good for us to provide financing for people who need the money.”

Please click on the video above to watch the full interview or listen to the podcast below.