On May 4th2017, Norwegian announced the sale-leaseback
of eight new Boeing 737-800 aiarcraft to be conducted in the second quarter.
unlocked the full value of Flagler's real estate assets, allowing the company to invest its capital where it is needed most," Watson said.
These types of transactions can be structured in many different ways, but the leases in typical sale-leaseback
transactions are customarily long-term (for a term of at least 15-20 years, plus renewal options), and are true triple-net leases in which the tenant is responsible for all aspects of the property (including maintenance, all payment obligations, insurance, etc.
According to ILFC, the agreement provided for 15 previously ordered Boeing 737-800 Next Generation aircraft to be purchased by ILFC from American and immediately leased back to American under a sale-leaseback
investments in larger public companies, such as Walgreens stores or Family Dollar locations, typically come with corporate guarantees or sponsorship, and are typically easier transactions for the investor, with less risk and thus less return.
also can be an attractive alternative to refinancing" due to the costs and fees associated with a refinance.
The retail sector has seen an uptick in sale-leaseback
activity in recent years because a number of retailers have had substantial real estate holdings and the markets for the financing of those holdings has become more efficient, as earlier reported by HFN.
Depending on a company's specific needs, it may choose to divide a sale-leaseback
into separate leases with differing terms, rents and covenants.
Peck: Would you compare and contrast sale-leaseback
Citing ASA Investerings Partnership the IRS disregarded the transactions as a sham, holding that, in essence, they equated to a basic sale-leaseback
transaction between A and D.
This article examines gift-leaseback and sale-leaseback
transactions among family members and offers suggestions to avoid IRS attacks.