releaz is an innovative digital end-to-end marketplace which connects owners and investors by introducing the first residential sale & leaseback model in the Greek market. releaz’s purpose is to offer flexibility and liquidity to owners.
releaz is the ideal solution if you wish to monetize your property’s value without having to move out. You can use the releaz sale-leaseback programs to fund your business, to pay-off debts or to finance important life events.
Sale and leaseback concern the transfer of the property’s ownership from the owner to a third-party investor, with the original owner retaining its use through rental. This specific transaction constitutes a secure financial tool that is regularly used by companies for their financing or for the acquisition of investable assets. releaz offers private property owners the opportunity to make use of this financial tool for the first time.
Unlike typical/conventional sale and leaseback agreements, releaz digitally connects you to a number of registered investors through secure, direct and transparent processes. It also gives you the right to repurchase your property at any time you wish within five years from the transaction date at a pre-agreed price.
On the releaz platform you may list any property you own, such as:
- stand-alone buildings
- retail stores
- land plots
releaz does not purchase the properties, but brings you in contact with a number of private and institutional investors who have been registered in the releaz platform. Any investor can either submit an offer for your property in order to negotiate the price, or reserve instantly the property by paying the required down payment on the listed price. In the case of an offer submission, you can either accept or reject it at your sole discretion.
Through the releaz sale and leaseback programs you can acquire liquidity equal to up to 90% of the property’s value. Unlike bank lending, you have no obligation to repay the money you receive, while you retain the right to repurchase your property at pre-determined terms at your discretion. Furthermore, with releaz you gain access to higher liquidity, since bank lending (even when feasible) usually does not exceed 50-60% of the property’s market value.
releaz undertakes and ensures the transparent valuation of the market value of your property through independent RICS valuers, in order to ensure the objectivity and integrity of the valuation.
Once the property’s market value has been assessed, you select the cash proceeds that can reach up to 90% of the property’s value. Next, you determine the amount of the annual rent you will pay to the buyer. The rent should range from 4% to 6% on the cash proceeds per annum.
The amount of the property’s repurchase option is calculated based on the cash proceeds, the annual rent and the year of repurchase. The calculation has been designed in that way to offer the investor a reasonable return on investment. The repurchase option is not your obligation, and you can choose not to proceed with the repurchase at your discretion.
With releaz, the inflation and the property market appreciation work to your advantage. You have locked the rental price after the valuation and have pre-agreed the repurchase price with the buyer. So, as long the rents and property values go up, you benefit!
Your listing will be on the platform until the property is sold with a maximum stay of 12 months. In any case, until the completion of a transaction, you can, in consultation with the releaz team, change the amounts of the cash proceeds and the annual rent.
You can repurchase your property at a pre-agreed price within five years from the transaction. It is totally up to you whether you will exercise your repurchase option or not. If you terminate the leaseback prior to the end of the 5-year period or you default under the lease-back agreements, you forfeit automatically the repurchase option.
The repurchase option is included in the notarial sale and leaseback contract and can be exercised unilaterally by you within five years. The investor cannot sell or encumber your property in any way (e.g. mortgage, notice of mortgage etc.) until you decide whether to exercise or waive the repurchase option.
releaz charges a listing fee that covers the expenses for the legal and technical due diligence, professional photoshooting and property folder. The listing fee is equal to €250 plus €1 per m2 and is charged prior to listing. Upon completion of the transaction, releaz is entitled to a transaction fee of 2% (plus VAT) as a real estate services fee for the conclusion of the property’s sale and leaseback contract.