One obstacle to large bulk sale-leaseback
transactions is that public real estate investment trusts usually prefer to minimize risk by diversifying in a number of properties.
Paragraphs 32 and 33, however, say a seller-lessee should follow sale-leaseback
accounting (that is, the seller should remove the asset and any related liabilities from the balance sheet and recognize the sale) for sale-leaseback
transactions involving personal property.
Realty Income said it believes there is significant demand from high-quality tenants in Europe for sale-leaseback
capital on reasonable terms and believe Realty Income is uniquely positioned to capitalise on this opportunity utilising its scale and cost of capital.
In a typical sale-leaseback
deal, the tenant sells the building to a real estate investment group or other owner and agrees to lease back the building under a long-term agreement, usually 10 to 15 years.
This EITF issue, Impact of an Uncollateralized Irrevocable Letter of Credit on a Real Estate Sale-Leaseback
Transaction, considers the effect of a letter of credit on sale-leaseback
accounting under FASB Statement no.
Global Banking News-November 23, 2018-Mesirow Financial appoints new VP of business development to expand sale-leaseback
(NYSE: WPC) said it has acquired a Class A office building in Sunderland, England in a sale-leaseback
transaction of USD50.6 million (EUR32.5 million).
(NYSE: NHI) has closed a USD 67m purchase of three senior living communities in North Carolina, Indiana and Tennessee in a sale-leaseback
transaction with affiliates of East Lake Capital Management, the company said.
However, a sale-leaseback
transaction does not come without its disadvantages for the seller (and eventual tenant).
Generally, under a sale-leaseback
arrangement, the owner of a residence sells the property to a junior family member or to a partnership comprised of junior family members.
Some believe the lessee should account for these transactions as a sale-leaseback
under FASB Statement no.