Sale & Leaseback Investment Model is simply defined as a newly emerging type of property investment wherein corporate entities first sell real property assets of their own to a third party investor for a variety of reasons such as compliance with corporate policies, creating cash flows or supporting an executive decision of particular business investment and then lease them back from the same investor that originally bought them, without any interruption in the ownership status of the real property of concern in time of its sales.

This procedure provides an important amount of cash to the original realty owner, who becomes the tenant of the same, once after it is successfully delivered. It also provides a long term unbreakable lease agreement, to secure such intended use of the property throughout the term of lease. The Seller will continue to act as the Tenant of the realty in leasehold and as such carry out its operations therein, in order for the attainment of its business goals and objectives.

On the other hand, with the standpoint of the investor, a model comes to appearance which almost nullifies the risk factor but ascertains the time of return for the investment to be made. The investor acting as the buyer of such property thereby grabs the opportunity to not only fully enjoy tax advantages in connection with depreciation and aging but also secure a certain amount of income over a long term of realty’s possession by the designated tenant in leasehold.

Sale & Leaseback operations doubtlessly provide companies with the opportunity of disposing their tangible assets and converting them into broader scale investments or business borrowings in their particular areas of   operation for liberalization of their corporate capital thus further strengthening of working capital. Being a stand-alone property investment initiative and scheme, this process is totally free of any speculative risks.  What’s important here for the investor is that preference should be laid, by weight, upon securing investments that combine real property of highest quality with tenants possessing high credentials.