Financing a building by means of a sale-and-leaseback transaction – Review regime – Judgment of the Court of Justice of the European Union in Mydibel (H.v.J. 27.03.2019, C-201/18, Mydibel)
- Public limited company X has a concession agreement with company Y for the use of part of the public domain.
- To improve its liquidity position, X sets up a sale-and-leaseback structure with financial institution Z in respect of a building located on the concession land.
- X remains the owner of the building during the concession agreement and grants Z a long leasehold right.
- Z will make the enjoyment on the building available to X for 10 years and will acquire the building at a certain percentage of the venal value.
- The provision takes the form of classic financing in which the rent corresponds to the repayment of the investment plus interest.
- The DVB finds that the proposed transaction cannot be considered a subsequent amendment to the agreement if certain circumstances arise and they are confirmed by underlying agreements.
Source Ruling Commission – Annual Report 2022
See also
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