SRH is a financial institution approved by Bank of Algeria and approved by the Currency and Credit Council to carry out real estate leasing transactions (property leasing).

 

Real estate leasing is aimed at those who wish to invest directly in existing industrial, professional and commercial property, accompanied by an undertaking to sell. It is considered to be an effective financing solution dedicated entirely to real estate assets. Real estate leasing aims to:

 

- Provide the lessee with significant tax benefits;

- Optimise financial leverage; and

- Diversify financing resources for SME/SMI-type companies.

 

Introduction to Property Leasing

 

Property leasing is a product tailored to the current and future financing needs of economic operators:

*The structuring of the property leasing transaction allows the economic operator to benefit from customised rents with a choice of payment methods: degressive, linear or other forms deemed acceptable. Rents payable in advance can thus be adjusted according to the expected return on investment and the seasonality of cash flows.

* The term of the property leasing contract is heavily restricted by accounting and tax requirements, as well as by the economic life of the asset. Given the assets to be financed by property leasing, a long-term duration between 5 and 20 years is highly likely.

*The property lease agreement will end:

- When the lessee wishes to exercise the purchase option in accordance with the terms of the property lease agreement.

- When the agreement expires. The lessee may become the owner of the leased property at a price determined in the property lease agreement.

*Advantages for the lessee:

These advantages are numerous and can essentially be summarised as follows:

Full financing (100%) of investments where traditional credit requires an initial contribution;

Preserved cash flow: By offering total financing of the investment, property leasing allows the company to preserve its cash flow, enabling it to retain its equity capital to finance its operating needs.

Attractive tax treatment: The legislator has provided real estate leasing with an appropriate tax regime: deductibility of expenses, possibility of accelerated, declining balance or straight-line depreciation, VAT exemption on the acquisition of the property, exemption from registration fees for properties financed by lease-back type real estate leasing.

Great flexibility: Property leasing is notable for its flexibility in the drafting of the lease agreement. Thanks to customised scales, it allows the financing to be tailored to the characteristics of the company's professional activities (land, acquisition costs, construction, roads and utilities, fees, construction insurance, VAT, etc.) and the life cycle of the equipment to be financed.

A quick response: As the Company specialises in property financing, responses to financing requests are provided quickly.

 

*Eligible customers

Property leasing is intended to those who wish to invest directly in commercial, industrial or professional property (existing buildings):

 

   *Liberal professions

   *Clinics, medical practices

   *Office buildings

   *Commercial premises

   *Warehouses

   *Hotels

   *Industrial premises

   …

*Financing application

 

The financing application includes:

  * A customer identification form

  * An administrative file

  * A financial file

  * A legal file

 

*Financing transaction mechanism:

 

    1. The customer conducts the transaction with the supplier.

    2. The customer enters into a leasing contract with the company

    3. The company places the order with the supplier

    4. The supplier delivers the property to the customer, who accepts it (acceptance report)

    5. The supplier sends the invoice and the acceptance report to the company for payment

    6. The customer begins to pay the leasing fees to the company