leaseback


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Related to leaseback: sale and leaseback, Sale and Leaseback Agreement

Leaseback

A transaction that involves the sales of some property, and an agreement by the seller to lease the property back from the buyer after the sale.

Sale-Leaseback

The sale of a property in which the seller immediately begins to rent the property from the buyer. That is, the seller no longer has ownership of the property, but maintains residence and/or use for the duration of the rental agreement. A sale-leaseback gives the seller profit from the sale while the buyer is guaranteed income from the rental agreement in the medium or long-term. Sometimes, a sale-leaseback occurs in order to grant the seller access to capital to make improvement on the property; for example, the seller may use the proceeds from the sale to build a factory. A form of sale-leaseback, known as sukuk al-ijara, is a common structure for sukuk, or the equivalent of a bond, in Islamic finance. Sale-leaseback is also called simply leaseback.

leaseback

leaseback

an arrangement which involves the selling of an ASSET by the owner to another person or company on condition that the asset is then LEASED (rented back) to the original owner for a specified period of time at an agreed rental. Leaseback is used primarily as a means of raising finance from the sale of surplus properties while allowing the firm to continue its existing business operations. See LEASING.

leaseback

an arrangement whereby the owner of an ASSET agrees to sell it to another person or company on condition that the asset can be leased to its original owner for a fixed term at a prearranged RENT. Leaseback is normally undertaken to enable companies with large assets such as property to realize cash for use elsewhere in their business.

See LEASE, LEASING.

References in periodicals archive ?
TESCO Intends to generate [pounds sterling] lbn annually trom sale and leaseback deals, creating profits of [pounds sterling] 250m [pounds sterling] 350m per year.
A leaseback on its stores could raise up to pounds 250m, which would see it selling its stores in return for agreeing to pay rent to the new owner.
After a sale and leaseback, the shareholder's basis in the property will be its fair market value, which usually is higher than the price the corporation originally paid (if the land and building have gone up in value).
The investment market is becoming more sophisticated, and structured sale and leaseback opportunities are becoming more popular with both businesses looking to release poor performing capital for reinvestment, and investors with an appetite for investment opportunities.
Contact one of the French leaseback property experts on 0207 321 5858 or visit www.
The total rent is based on an average of 31 percent of the relevant total turnover for the 9 properties subject to the Sale and Leaseback, subject to a minimum guaranteed rental cost of 9.
Sale and leaseback secures the future of the Unwins Group under the current management team.
The constant rental amount is the amount that, if paid at the end of each rental period, will result in a present value equal to the present value of all amounts payable under the disqualified leaseback or long-term agreement as rent and interest.
467-3(c), the Service's determination of whether tax avoidance is a principal purpose for increasing or decreasing rental payments in a leaseback or long-term agreement is to be based on all the facts and circumstances.
Sale- leaseback financing is a common vehicle utilized by retail chains to finance the expansion of their retail outlets.
These special rules apply if the agreement is tax motivated and is either a disqualified leaseback (a leaseback to any person who had an interest in the property within the previous two years) or a long-term lease agreement (one with a lease term longer than 75% of the leased property's statutory recovery period).