leaseback


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Leaseback

A transaction whereby land is sold and subsequently rented by the seller from the purchaser who is the new owner.

leaseback

a property transaction in which the buyer leases the property to the seller.
References in periodicals archive ?
20 July 2017 - A subsidiary of Guernsey-based hotel company PPHE Hotel Group Ltd (LSE: PPH) has closed the sale and leaseback of Park Plaza London Waterloo, the company said.
Whitbread said in April that it is planning to carry out sale and leaseback transactions this year with proceeds of GBP 100m to GBP 150m.
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.
In 2000, Sainsbury's, which owned 65% of its property on a freehold basis, raised [pounds sterling] 566m from its first two sale and leaseback deals.
So what makes a French Leaseback property such a solid investment?
Banks will lend around 70% of the vacant possession value whilst a sale and leaseback structure can realise 100% of the investment value, hence releasing what could be double the amount of cash into the business.
A leaseback on its stores could raise up to pounds 250m, which would see it selling its stores in return for agreeing to pay rent to the new owner.
If the real property has been in service for many years, a sale and leaseback could generate a much larger rental expense deduction for the corporation than its current depreciation deduction.
Mullen: Sale-manageback developed partly as a result of REITs, which are forced to do a sale leaseback because of REIT requirements, pulling out of the market, and partly because public longterm care companies saw sale-manageback as a way of improving their stock values by getting their real estate properties off their books.
In addition, the constant rental accrual method must be utilized for certain section 467 rental agreements, specifically a "disqualified" leaseback or a long-term agreement.
M2 EQUITYBITES-June 30, 2017-PPHE Hotel Group Enters Sale, Leaseback Deal for Park Plaza London Waterloo
Unwins has dramatically pulled out of talks to sell its business and is pursuing a sale and leaseback strategy to raise funds instead.