German Operating Lease

German Operating Leases (‘GOL’) are a popular structure to finance commercial equipment and real estate in the German market for lessees and equipment around the world. A GOL is a leveraged operating lease comprised of an equity investment and secured debt. The GOL market is one of the largest with up to $100 billion annually in asset volume. Many lessees in the German market turn to a GOL Lessee Advisor, usually a boutique financial advisor to structure, arrange and place the GOL. Unlike most other leasing markets, equity in German leases is sold mainly to retail investors through banks and other distribution networks in Germany. Lessees are usually high credit quality air, rail and shipping companies or tenants in real estate leases.

Lessees are attracted the GOL market due to high purchase prices paid by investors as well as favorable lease rates. The transactions on commercial equipment have lease terms of 7 – 12 years, often with lease financing economics that are often more attractive than lessees can achieve in other markets.

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