The Situation
Governments often face political difficulty when trying to finance new sports arenas, arts and cultural facilities, school modernizations, office buildings, infrastructure, or other improvements that would revitalize underdeveloped areas or update existing facilities to modern standards.

In these instances, a sale-leaseback agreement on government-owned real property can provide needed funding while serving as a complement to public debt financing and other financing options. It can be used to supplement funding for new projects or to provide new capital without impacting debt ceiling limits.

How Primum Can Help
Transactions through Primum allow our partners to unlock their embedded equity and monetize the value of their real property assets to fund vital projects. Through the use of triple-net, sale-leaseback agreements, projects that have seen funding reduced or eliminated by budget constraints can move forward.

The use of proceeds remains flexible, and the benefits are significant:

• Operating control over the asset remains with the seller
• Transactions provide renewable leases and repurchase options
• Proceeds can be used for existing assets or new construction
• Structure allows for small or non-metropolitan cities to participate on an equal footing with urban and suburban cities