Purpose: To finance the purchase of property to Corporations.
Lease Amount: Minimum amount of LE 500,000.
Tenor: Up to 10 years.
Payment: Monthly or Quarterly in advance.
Percent of Financing: 90 % (subject to credit analysis)
Types of Real Estate Leasing
Build Lease and Transfer - CorpLease Egypt SAE can finance the construction progress of the company's premises. Disbursement of the lease can be structured on tranches to accommodate the progress payment to the contractor.
Purchase Existing Premises - CorpLease Egypt SAE can finance premises that a company wishes to acquire.
Sale and Lease Back of an Owned Premises- CorpLease Egypt SAE can refinance the company's existing premises
General Terms and Conditions
Land and/or building ownership must be in the name of CorpLease Egypt SAE.
Survey analysis to be conducted by 2 valuation firms appointed by Lessor to evaluate the premises whereby costs are borne by the Lessee.
Leased asset must be free and clear of any liens or mortgages, pledges, encumbrances, deeds of trust or similar.
Lessee will ensure that leased assets are maintained in excellent operating condition.
Lessee has the option to purchase the leased assets for LE 1.00 at the end of the lease term.
Lessee has the right to purchase the asset at any point of time during the leased period by paying the net present value of the remaining rents.
All leases are registered with GAFI.
According to Egyptian Accounting Standards all leases are recorded as off balance sheet for the Lessee.
Lessee must maintain an all risk insurance policy in favor of the Lessor stating the following conditions:
Download Leasing Application
F A Q
Q. Can CORPLEASE finance land and building in new industrial zones?
A. The essence of real estate leasing is to acquire the asset in the Lessor's name. If the ownership can be transferred and registered in the name of Lessor, then the lease will be valid.
Q. Can CORPLEASE finance renovation costs including furniture and fixtures?
A. In selective cases CORPLEASE can finance renovation costs depending on the company's cash flow and risk rating.
Q. What are the leasing documents required to close a leasing transaction?
A. The basic leasing documents are the following:
1. Lease Contract.
2. Transfer of title (sale contract).
3. Acceptance certificate.
4. Irrevocable debit instruction for the lease rent.
5. Other documents as maybe required or on a case by case basis.
Q. What are the corporate documents required?
A. The standard corporate documents are:
- Commercial Register (not older than 3 months).
- Copy of Tax Card.
- Copy of Authorized signatories ID or valid passport.
- Articles of Incorporation.
- Relevant Business licenses.
- Audited financial statements for the past 3 years and latest modified interims .
Q. What are the Lessee’s options at the end of the lease term?
A. In a finance lease the Lessee can either:
1. Acquire the asset by paying a nominal value of LE 1.
2. Return the asset to the Lessor.
3. To renew the contract (based on Lessor’s approval).
Q. Can the lease contract be terminated?
A. Yes the Lessee must pay the net present value of the future lease payments.
Q. Can there be a grace period in leasing?
A. Yes. This is based on the cashflow study of the project.
Q. What is the payment method?
A. The usual payment method is through an irrevocable standing order instruction on the Lessee's bank account to transfer lease rents to CORPLEASE.
Q. Who bears the insurance and maintenance costs?
A. The Lessee. These costs can be included in the Lessee’s monthly payment.