Pickalbatros sells + leases back Sharm hotel: Pickalbatros Hotels & Resorts Group has signed an agreement with Beltone Financial’s leasing subsidiary to sell and lease back one of its hotels, according to a joint press release (pdf) out yesterday. The EGP 750 mn agreement will see Beltone Leasing acquire the Laguna Vista Beach Resort in Sharm El Sheikh and lease it back to the company.

The rationale: Pickalbatros will use the proceeds to finance its working capital and expand its hotel portfolio, Chairman Kamel Abou Ali said. The company is planning to open a new 200-key hotel in Sharm before the end of the year.

What we don’t know: Information about the lease period and rental payments wasn’t made public.

EXPLAINER- The sale-leaseback agreement: It’s a transaction in which a company sells an asset, such as real estate, to a buyer (often a financial institution or a leasing company), and then immediately leases it back from the buyer. This allows the company to free up capital tied to the asset while still retaining use and operational control over it. This type of financial arrangement is often used by businesses to generate cash flow, reduce debt, or finance other business activities while maintaining the use of essential assets.

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