This option is used by strata to finance equipment related capital improvements on existing building(s).
Funds are utilized to finance capital equipment costs over a pre-determined period of time.
This strategy preserves strata's contingency fund and mitigates financial exposure.
Xpansion Leasing partners with you to achieve a strategic plan that fits both your needs and your budget. We are your solution provider that assists strata in achieving peak performance of their assets.
We are committed to assisting with your strata leasing needs and will set forth options that best serve you.
Capital Cost Picture of Leasing Options
Refrigeration System Upgrades
HVAC / Equipment Upgrades
Life Safety Systems
Replace and repair of HVAC systems at existing condominium
A 30 year old building needed to replace and repair the HVAC systems. Strata has constantly faced with competing objectives to keep common expense fees low while properly maintaining and repairing common elements. Xpansion Leasing was able to find financial solutions that not only met but exceeded these objectives.
The lease agreements included the cost of all equipment plus the labour fee for up to 25% of the total lease amount with a flexible term that is affordable to the tenants. Since the borrower is the strata, no personal guarantees of the unit owners were required as a condition of funding.
The strata was able to cover the cost of the HVAC replacement with a program that met their financial restrictions while allowing them to cover their other large annual expenses.
Energy audit, retrofit, and equipment replacement
A strata energy audit refers to an audit that looks at common area energy usage and costs. This work includes an analysis of building envelope, water, HVAC, lighting, and related controls and recommendations of energy conservation measures that meet the operational targets of the strata.
The energy audit identified several options to improve the energy efficiency of a 12 story multi-residential building. The recommendation was to design and optimize DDC systems, replace aging boiler and chiller, as well as improvements in the mechanical room and air ventilation systems. The lease was funded to cover the cost of the energy audit and the cost of high efficient equipment.
Benefits of Leasing
Conserve & Control Cash
Leasing allows the immediate acquisition of needed equipment, while retaining the use of working capital. Equipment leasing saves your working capital for day-to-day business expenses or unexpected construction or maintenance related expenses. Moreover, since a lease is independent from other sources of financing, it preserves operating and other credit lines should they be required for other purchases.
Tax Benefits & Improve Margins
Lease financing presents your business with potential tax benefits. Xpansion Leasing’s model not only lowers your initial capital requirement, but creates a vehicle for tax advantages on the annual lease payment. In addition, working capital intended for an equipment purchase can be retained in the business and invested to earn a higher rate of return. Lease often provide 100% financing with little or no down payment requirement.