A sale-leaseback transaction: Is it right for your business?

William Jegher

Corporate Real Estate Journal, 2012, vol. 2, issue 2, 144-152

Abstract: A sale-leaseback is defined as the sale of an owner-occupied property to a real estate investor followed by leasing back space from the new owner. The goal for the vendor essentially is to raise capital while retaining use of the facility in question, while the purchaser is happy to acquire stable, long-term cash flow; however, sale-leasebacks are not this simplistic and, in fact, are not suitable for every corporation. It is key to understand, not only the company's real estate, but also its overall corporate strategy, before determining if such a transaction is suitable. Understanding whether a sale-leaseback transaction could work for a corporation requires a robust financial model, a look at the pros and cons, approach and rationale, and more.

Keywords: sale-leaseback; owned versus leased; unlocking value; transactions; financial modelling; market dynamics; corporate real estate (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/4217/download/ (application/pdf)
https://hstalks.com/article/4217/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:crej00:y:2012:v:2:i:2:p:144-152

Access Statistics for this article

More articles in Corporate Real Estate Journal from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().