leaseback

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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 ?
From the buyer's perspective, a sale leaseback can be an attractive investment in the real estate category as it requires less maintenance and administration than many multi-tenant real estate investments.
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.
In addition, the constant rental accrual method must be utilized for certain section 467 rental agreements, specifically a "disqualified" leaseback or a long-term agreement.
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.
That is, the seller-lessee records the sale, removes the asset from its balance sheet, classifies the leaseback in accordance with paragraph 6 of Statement no.
Some recent example of sale leaseback transactions include Time Equities Inc.
Market conditions are very favorable for tenants looking to sublease their space and those owners who are looking to raise capital through a sale and leaseback of their facilities.
We know of two British companies that have completed sale leasebacks recently with subsidiaries in the United States and due to British Gap Accounting have recognized the gain in the year of the sale.
We've purchased some single-tenant sale leasebacks for all of our REITs.
Since 1995, Klaff and Lubert-Adler have been partners in the business of acquiring designation rights of bankrupt retailers and completing sale leasebacks with retail tenants in need of capital.
NYSE:WYN) and executed long-term leasebacks on both properties with Wyndham.