Page 9 - ANJ Capital Market Presentation

Sale and Leaseback

Sale and Leaseback

Lessee

Enables expansion of business
Improve company’s balance sheet Fair return on investment
Reduction in tax liability Regular stream of income
Limited risk

The Land Sterling Model

The proposed structure of SPV will be designed by a holding pattern in which the developer will
hold 28%, PE will invests 42% and the rest 30% will be deployed as debt. The value of SPV / shares
will be based on the market value of the assets that will be pooled under this SPV. The fair market
value will be assessed at the time of setting up the SPV.

The value of the SPV / instrument will be based on the performance of the properties which will be
based on the contracted leases for the agreed period of each lease and then based on the market
at any given point of time.

However, the structure proposes a sale and leaseback model with a buyback guarantee by the
developer at intervals of 5, 7 and 10 years from the time of incorporation. In such instance, the
transaction will be structured with a condition/ option that the buyback by the developer will be
at a minimum value which is equal to the market value assessed during the formation of SPV or
market price at the time of exit (whichever is higher).