Corporate property developer sells building to real estate fund
Case Study9th Mar 2022
Contributors
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Our Client
A corporate property developer was approached to sell a building that had been constructed on land the company owned to a commercial real estate fund. The company shareholders wished to progress with the sale and contacted AAB for advice on the tax implications of this asset sale.
Our Approach
- Time was invested to determine the objectives of shareholder
- The proposed structure of the deal for the corporate property developer was reviewed and more efficient alternatives considered
- The tax implications of the proposed transaction were analysed and a more efficient deal structure to mitigate tax was also advised on
- The revised deal structure was proposed and agreed with the Purchasers
- AAB Wealth were introduced to our client to allow more objectives of the shareholders to be achieved
The Outcome
- The investment in understanding our client’s objectives allowed us to deliver a revised structure which better achieved their objectives and reduced the tax liability by > 33%, increasing the after tax cash received by each shareholder
- The introduction and liaison with AAB Wealth allowed shareholders to maximise the value created for them and their family from the transaction
- For some shareholders, we determined a strategy to harness tax reliefs to allow greater funds to be available for investing in their next commercial venture
