Sale-Leaseback transactions are on the rise in real estate deals. So what are they. They are the simultaneous purchase of a property and a lease back to the seller. The lease portion of the transaction is generally long term. The seller-lessee in the transaction is converted from an owner to a tenant.
So what are the advantages to doing sale-leaseback transactions? Well that can be complicated, but in general it unlocks cash that you have tied up in a property to reinvest in other core business activities. Which can include further real estate investments. Gerry Levin has written a great article about the benefits and downsides to sale-leaseback transactions over here.