{"id":3383,"date":"2023-06-13T10:59:05","date_gmt":"2023-06-13T16:59:05","guid":{"rendered":"https:\/\/advance-realestate.com\/adblog\/?p=3383"},"modified":"2025-05-20T13:14:10","modified_gmt":"2025-05-20T19:14:10","slug":"sale-and-leaseback-as-a-financing-strategy","status":"publish","type":"post","link":"https:\/\/advance-realestate.com\/adblog\/en\/sale-and-leaseback-as-a-financing-strategy\/","title":{"rendered":"Sale and leaseback as a financing strategy"},"content":{"rendered":"
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Owning real estate assets or a team for business operations guarantees safe liquidity to cover fixed expenses and commitments, but it can be a challenging process initially. In this type of situation, a sale and leaseback financing is a viable alternative to explore.<\/p>\n\n\n\n

What is sale and leaseback financing?<\/h2>\n\n\n\n

Companies can sell their real estate assets to a financial institution or a leasing society by employing this instrument.<\/p>\n\n\n\n

Then, a leasing contract is signed where the company stipulates that after selling their property, they agreed to pay a symbolic lease to the buyer to continue using the assets after selling them. <\/p>\n\n\n\n

This transaction includes two contracts: one for sale and the other for lease, with the latter having an estimated period of validity of 10 to 15 years.<\/p>\n\n\n\n

When the contract is about to expire, the seller can choose to acquire the immovable assets at a minimum cost (equal to 1% of the value invoiced at the bank1<\/sup>), renew the contract, or vacate the space to invest in another that better meets the company\u2019s needs.<\/p>\n\n\n\n

It is important to note that as a tenant, the property seller should cover all the expenses2<\/sup> derived from using the space. However, they will decide when to manage the maintenance and renovations of the property.<\/p>\n\n\n\n

How is this solution valuable for industrial development?<\/h2>\n\n\n\n

If applied to industrial space leasing<\/mark><\/strong><\/a>3<\/sup>, this financing model can be advantageous for the development of many sectors, providing a solution for companies that want to enjoy liquidity and solvency while maintaining control over the property.<\/p>\n\n\n\n

The sale and leaseback strategy grants other benefits, such as:<\/p>\n\n\n\n