Involve the parties in opposite roles (buyer, seller) in more than one transaction - The party that leases the property (HIP) sells back to the owner of the building the property that owned and occupied before moving to the new rented building (a sale-leaseback with a twist) - Advantage of this option is that it allowed the seller of the building HIP to link a benefit associated with its lease of the Devon-owned building (6 million free rent) with the sales price of its building to Devon - Similar logic can be applied in a straight sale-leaseback transaction. Therefore, having more than one transaction between two parties, where they are involved in opposite roles, allows for
linked inter-transaction benefits or
composite benefit package linked to both transactions
Determine sales price in both direct and indirect monetary benefits - HIP’s benefit from selling its property to Devon is determined in multiple forms, such as direct monetary benefit of 12 million and “indirect” monetary benefit in the form of a concession in the lease agreement between HIP and Devon - this trick allowed HIP to achieve an
above market price benefit from the sale of its property (18 million) by getting 12 million in direct monetary benefit and 6 million in “indirect monetary” benefit (free rent).
Maximize use of time element to get highest possible price from the market by using the option tool - This option allowed HIP to receive all extra sales proceeds above the 12 million in case a higher bidder could be found.
