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What is a Sale-Leaseback?

Sale-Leaseback

A financial transaction where one sells an asset and leases it back for the long-term. The purpose of the transaction is to free up the original owner’s capital while allowing the owner to retain possession and use of the property. As a corporate treasury tool, a sale-leaseback takes the place of the debt and equity capital that a company would otherwise require to finance its real estate.

Hybrid Lease

For customers wishing to defer tax gains, STORE also has efficient structural financing options available that are designed to maximize after-tax proceeds while simultaneously offering the economic advantages of a sale-leaseback.

The Benefits of a Sale-Leaseback

  • STORE can maximize your return on equity
  • STORE can advance more than conventional debt
  • STORE can reduce contractual payment obligations
  • STORE offers leases with extended renewal options
  • STORE can absorb residual real estate valuation risk
  • STORE can deliver capital with no restrictive covenants
  • STORE can provide you with expanded financial flexibility
  • STORE can lock in rates for longer terms than traditional debt

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