Sale-leaseback

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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.

Sale-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 ?
Harris specializes in financing commercial assets with a focus on triple-net lease and sale-leaseback transactions and will be responsible for overseeing Meridian's recently formed Arizona office.
A useful but infrequently used tool for raising cash for a small business is the sale-leaseback transaction.
The health-care sector will have very limited investment transactions this year, Corn said, but ones that do occur will take place as joint ventures or as large non-profits acquire smaller, regional hospitals or providers by executing sale-leasebacks to raise capital.
The study from CoreNet Global's Applied Research Center also found that portfolio sale-leasebacks, unlike deals for single pieces of property, have many similarities to capital market transactions and should be managed accordingly.
Whoever took over those companies, ended up doing sale-leasebacks to finance the acquisitions.
SALE-LEASEBACKS BETWEEN family members offer many of the same benefits and suffer many of the same IRS attacks.
The facility is being used for the sale-leaseback of nine locations in Texas, New Mexico, Ohio, Georgia, and Alabama.
A lot has changed in a year in the sale-leaseback space.
Sovereign Investment Company, one of the largest and fastest growing private equity investors providing sale-leaseback capital, today announced that it recently completed a $69 million transaction for Lone Star Funds.
According to Catterton, the ability of GE Capital Solutions, Franchise Finance to provide a comprehensive financing package, including sale-leasebacks to enable new unit development, convinced them to choose the lender.
The venture was formed by Business Property, a division of GE Real Estate, and is part of Business Property's growth strategy for its equity and sale-leaseback platform.