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.