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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.


In a sale-leaseback arrangement -- also known as a leaseback -- an owner sells his or her property, and then immediately leases it back from the buyer as part of the same transaction.

This way, the seller gets the profits from the sale while keeping possession and use of the property, while the buyer is assured immediate long-term income on the property.

Sale-leaseback transactions are most commonly used in commercial real estate, but can also apply to commercial vehicles and other types of property.

References in periodicals archive ?
Norwegian offshore vessels operator Havila Shipping ASA said on Wednesday (5 December) that its subsidiary Havila Ships AS has signed a ship sale and leaseback agreement with Havila Ariel ASA.
Cyprus-registered Norwegian-controlled offshore supply vessels operator Deep Sea Supply Plc said on Wednesday (7 November) that it has signed a new sale and leaseback agreement with Ship Finance International Limited.
Under the terms of the definitive sale and leaseback agreements, Quotient will receive gross proceeds from the sale totaling GBP 14.
ARC) signed the sale and leaseback agreements for the buildings of the RWE Group Center in Essen yesterday.
New York (AirGuideBusiness - Business & Industry Features) Thu, Feb 27, 2014 - Sale and leaseback agreements of two Airbus 330 aircraft owned by Finnair have been finalized.