LOS ANGELES-Astrum Investment Management has initiated a CRE private equity investment fund it calls Sale Lease-Back Buy-Back, or SLB3. It has already used the system to acquire five industrial properties in three states.
The fund's strategy works like this: AIM purchases properties directly from corporate owner-users. The property is then leased back to the former owner for 20 years, with the right to purchase it back at the end of five years at a pre-determined purchase price. The goal, Astrum claims, is to serve owner-users who want to own their corporate real estate over the long-term, but require liquidity to grow.
For investors, the SLB3 structure will seek to purchase real estate at what it terms “opportunistic prices,” deliver a high current income and long-term capital appreciation with reduced risk. AIM's investors will receive an 8.5% preferred return and claims it anticipates earning an average cash-on-cash of 11.25%.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
