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 ?
Most such "Syndics" were appointed by property developers, when investors were buying leasebacks off-plan.
"We are pleased to have mandated Standard Chartered for the sale and leaseback of three B737-800s from 2014-15.
AI, which has seven aircraft on leaseback and has been offered five more through that process, now plans to turn to the outright purchase scheme for the remaining 15.
"Our newly launched leaseback scheme for showhomes will add to this offering.
The announced sale and leaseback arrangement concerns the first two aircraft.
"Since the existence of valid Leaseback Agreement was admitted by both parties, its provisions should be properly observed.
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.
Sale and leaseback is an option available to companies that own their own vehicles or fund via Hire Purchase and Finance Lease.
Another four stores will be sold to an annuity fund managed by Prupim in a pounds 109m sale and leaseback deal.
last week closed their sale leaseback agreement, made in principle in February of this year, for AG's 55.27-acre Seattle headquarters and distribution facility.
The hot market for property has seen businesses rushing to cash in the value of their buildings in sale and leaseback deals.