STI stirling products limited

going forward

  1. 1,398 Posts.
    Back of envelope calculation:
    Sale and leaseback of pharma plant.

    Say landlord is looking at 10 year lease and 10% return.
    Rent $2,000,000 pa x 10 = $20,000,000
    Lease $2,000,000 pa x 10 = $20,000,000
    -----------------------------------------------------
    That should value the plant at $30,000,000 WITH a guaranteed 10 year lease.

    This would provide enough funds to go forward for the next 10 years IMHO.

    Cheers
 
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