Sometimes the fastest way to close on a simple real estate sale is through a more complicated offshore equity structure.
- To dispose of Spectrum’s real estate and facility assets in a more tax efficient manner, we structured the sale as an equity transaction, allowing it to not only dispose of the asset, but also its corporate entity, which would have required a time consuming and costly liquidation process.
- To avoid complicated on-shore approvals, we structured an off-shore arrangement to simplify the transaction.
- As with many real estate disposals in China, multiple unexpected obstacles and challenges arose from different stakeholders and the transaction was much more complicated and difficult to bring to a close compared to a typical real estate deal. Patience and persistence were required until the final signature.