If you’re sitting on real estate but not managing it, you are missing out on what it’s really worth.

I was recently speaking to a successful operator in the medical device space with dozens of specialized facilities, each with its own clean room, all owned outright.

Years ago, they didn’t want to lease and risk losing access to critical infrastructure, so they rolled their real estate assets into the business. It probably made sense at the time.

But now they’re carrying all that real estate on their books – assets that aren’t core to their mission.

So we proposed something simple: separate the real estate into its own HoldCo, lease it back, and unlock the value that’s been sitting quietly on the balance sheet.

That gives them the same control over their operations while turning a passive asset into a new, longer term yield-generating asset class, like infrastructure or income-producing debt.

This isn’t a revolutionary idea, but in this market – where capital is scarce and balance sheets are suffering – it’s the right strategy.

When value gets trapped on the balance sheet, our job is to redeploy it where it can actually create long-term profit.

Mark Lester, Principal LANDCO NEXA