Quick Takeaways

  • Sale-Leasebacks are transactions in which an owner sells a property and then leases it back from the new owner.
  • Often businesses will use sale-leasebacks to bring liquidity back into their business finances.
  • Sale-leasebacks can be found in many commercial transactions, specifically in the hospitality, retail, and healthcare industries.

Source: What is a Sale-Leaseback Transcation? (Motley Fool, Oct. 20, 2022)

“A sale-and-leaseback, also known as a sale-leaseback or simply a leaseback, is a financial transaction where an owner of an asset sells it and then leases it back from the new owner. In real estate, a leaseback allows the owner-occupant of a property to sell it to an investor-landlord while continuing to occupy the property. The seller then becomes a lessee of the property while the purchaser becomes the lessor.” Often used as a financing alternative, sale-leasebacks offer financially struggling companies access to cash to pay down debt and improve the bottom line. Find out how sale-leaseback transactions have helped the balance sheets of hotel, restaurant, retail, and other businesses.

What is a Sale-Leaseback

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