Simultaneous Closed Sale-Leasebacks (Real Estate)

A simultaneous closed sale-leaseback is a structured financial transaction where the sale of an asset (typically real estate) and its leaseback to the seller occur at the same time. This allows a company to convert an owned asset into cash while retaining operational control through a long-term lease agreement.

How It Works Sale Agreement – The owner of an asset (e.g., a business with real estate) agrees to sell it to a buyer (usually an investor or real estate firm).

Leaseback Agreement – Simultaneously, the seller leases the asset back from the buyer under pre-agreed terms.

Closing – The transaction closes with both the sale and leaseback happening at the same time, ensuring continuity of operations.

Benefits Immediate Capital – The seller unlocks cash from the asset without disrupting business operations.

Off-Balance Sheet Financing – In some cases, this can improve financial ratios by removing debt from the balance sheet.

Tax Advantages – Lease payments are often tax-deductible as business expenses.

Predictable Costs – The lease agreement provides fixed costs for property usage.

Common Uses Corporate Real Estate – Companies with valuable property assets use sale-leasebacks to free up working capital.

Retail Chains – Businesses like fast-food chains, gas stations, and supermarkets use this strategy to fund expansion.

Industrial & Logistics – Manufacturing and distribution centers leverage sale-leasebacks to focus on core operations.

M&A Acquisition Financing - Creating an arbitrage to finance your M&A acquisition.

Whether you own a business that owns its real estate or Acquiring a business with a real estate component and would you like help structuring a deal or understanding specific legal/financial aspects? Please email redacted to discuss.

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