What is a Sale-Leaseback?
A sale-leaseback, also known as a sale and leaseback or a leaseback, involves selling real estate you own and agreeing to lease it back from the new owner. The seller of the property becomes the lessee and the purchaser becomes the lessor. Details of arrangement, such as lease payments and lease duration, are made immediately after the sale of the asset.
For example, a manufacturing company owns their warehouse building and chooses to enter into a sale-leaseback agreement with a property investor. The investor buys the building from the manufacturing company and leases it back to them. As a result, the property investor now has an occupied building producing rent. The manufacturing company gets to keep the location of their warehouse and frees up capital that they can use to expand their business.
Want to Learn More About How to Invest?
At Equiton, we understand the importance of making informed investment decisions to maximize your investment portfolio.
Whether you are a seasoned investor looking to diversify your portfolio or a first-time investor seeking to explore the potential of real estate, we have tailored solutions to meet your unique needs. Our investment offerings encompass a diverse range of property types, such as residential, commercial and development.
Take the first step toward enhancing your wealth while practicing responsible investing. Seize the opportunity now to connect with our team of investment specialists by clicking the ‘Contact Us’ button below and start your journey towards achieving financial prosperity.