SLB Capital Advisors Successfully Advises Publicly Traded NYC-Based Community Bank Ponce Bank on Multi-Asset Sale Leaseback
SLB Capital Advisors successfully guided Ponce Financial Group in a significant sale leaseback transaction involving its Bronx headquarters and New York metro bank branches. This strategic move unlocked approximately $0.89 per share in book value and facilitated an additional $160 million in lending capacity. Ponce Bank aims to enhance community support while capturing the benefits of favorable market conditions for sale leasebacks. The transaction illustrates a trend where well-capitalized banks are leveraging real estate value to bolster their core business operations.
- Increased book value by approximately $0.89 per share.
- Enabled additional lending capacity of $160 million.
- Strengthened community support and local economic development.
- None.
Deal Demonstrates Value of Unlocking Capital and Material Impact on Book Value
Market Conditions for Sale Leasebacks Favorable for Well-Capitalized Banks
NEW YORK, May 24, 2022 /PRNewswire/ -- SLB Capital Advisors ("SLB") successfully advised Ponce Financial Group (the "Company" or "Ponce Bank") on the sale of its corporate headquarters in the Bronx and certain bank branches in the New York metro area. Concurrent with the transactions, Ponce entered into long-term leases for the properties with the new owners.
"The sale leasebacks unlocked significant book value and provided capital for us to redeploy, which allowed us in turn to put funds to work and support our communities," said Ponce Bank CEO Carlos Naudon. "The sale leaseback contributed materially to the increase in book value in 2021, approximately
Ponce Bank serves NYC metro communities by emphasizing the importance of personal banking and by promoting local economic development. "Our executives and staff mirror the diversity of the great local communities we serve," stated Ponce Bank CFO Frank Perez. "These strategic sale leasebacks enabled us to serve our communities better."
"Ponce is a top-tier Minority Depository Institution and Community Development Financial Institution," noted SLB Capital Advisors Principal, Stewart Riggs, "Those designations, combined with leading credit metrics, resonated with both public and private sale leaseback buyers."
Riggs continued, "Sale leasebacks of branches and other owned property enable corporations to re-allocate capital from real estate toward their core businesses."
Scott Merkle, Managing Partner of SLB, commented, "Now is an outstanding time for financial institutions, as well as any other corporate owners of real estate, to consider monetizing owned real estate." He noted that high corporate real estate demand and favorable pricing, combined with a long-term lease, drives value for sellers, and especially for well capitalized banks such as Ponce.
Merkle noted that sale leasebacks are increasingly viewed as a core financing strategic alternative. "The sale leaseback transaction sits at the intersection of corporate finance and real estate, and our team's expertise in both disciplines makes SLB Capital Advisors uniquely qualified to advise investors and corporate owners in this space."
About Ponce Bank:
Founded in 1960, Ponce Bank has earned a reputation for serving the needs of communities by emphasizing the importance of personal banking and by promoting local economic development. Ponce Bank is wholly-owned by Ponce Financial Group which is publicly traded on the NASDAQ and operates 13 branch locations and 5 mortgage loan offices throughout Metropolitan New York. The bank has the distinction of having been recognized as a Minority Depository Institution (MDI"), Community Development Financial Institution ("CDFI") and a certified Small Business Administration ("SBA") lender, allowing it to serve a broad spectrum of the diverse New York City metro population.
About
SLB Capital Advisors is a real estate advisory firm focused on sale leasebacks and M&A-related real estate transactions. SLB Capital Advisors leverages its expertise in sale leasebacks and corporate finance to help corporations and private equity groups recognize value arbitrage opportunities, enhance returns and strengthen balance sheets. SLB Capital Advisors is headquartered in New York City.
Learn more about SLB Capital Advisors by visiting www.slbcapitaladvisors.com or following us on LinkedIn.
Media Contact: | Company Contact: |
Tony DeFazio | David Rosenberg |
DeFazio Communications | SLB Capital Advisors |
Ph: 484-534-3306 | Ph: 646-971-8681 |
Email: dave@slbcapitaladvisorscom |
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SOURCE SLB Capital Advisors
