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Many established trading companies have had considerable capital value locked into their operational properties. These properties have been identified as producing lower returns on invested capital than core business activities. Consequently, there has been a growing trend for the splitting of operational property from core business activity. This paper seeks to identify trends in sale‐and‐leaseback, which is the most common model in the UK.

This paper reviews, the existing literature and some past transactions in order to identify the motivations of both operational businesses and property investors in adopting the model. Some transaction case studies are also highlighted.

Identification of the motives behind this approach. Accounting, taxation and capital release are identified as the main drivers when the model first became widespread in the UK two decades ago. It is now driven by taxation and capital release. Originally adopted by leading companies, sale‐and‐leaseback has more recently been used by weaker covenants. The model has remained popular with investors, but there have been some recent failures.

This paper examines recent trends and seeks to identify how the sale‐and‐leaseback model may develop in the UK. Furthermore, the application of the model in the UK may give some insight into its application in other parts of the world, where it is either gaining further acceptance or may have greater potential application.

The purpose of this paper is to give an overview of the sale‐and‐leaseback transactions in The Netherlands over the past ten years, and to compare the rents and yields in those transactions with what is common on the market at that moment.

The method chosen is a straight mathematical calculation, the only possible way at this initial stage. A unique dataset provided by Vastgoedmarkt is used for this paper.

Of the sale‐and‐leaseback transactions, 60 percent are concluded against a higher rent than the market rent, and contract rent for the biggest areas is on average concluded at 17.4 percent above the market rent.

Because of the incompleteness of the reporting of the transactions and the lack of transparency in this area, further analysis is necessary.

When entering into a sale‐and‐leaseback transaction, the seller and the buyer in particular should be much more aware of the circumstances on the market.

Prior papers on sale‐and‐leaseback generally do not consider rents and there are almost no recent papers. This paper does focus on rents and uses data from the past ten years.

Aimed at senior corporate real estate decision makers and members of the corporate finance teams responsible for real estate portfolio strategy, this paper helps these professionals to identify opportunities for different types of lease finance. Readers will go through a brief history of the sale‐leaseback market and learn the factors which determine sale‐leaseback pricing. In addition, they will ascertain how recent changes in the debt markets impact their rental rates, as well as how changes in the equity markets have added a new supply of funds and lowered finance costs. Tenants will obtain a better understanding of the concerns, interests and motivations from a lessor’s perspective, as well as the factors they should consider when deciding whether to own or lease their real estate. This understanding of the lessor should enhance the corporate professional’s negotiating skills. Overall, the contents of this paper should help improve communication between the corporate finance team and the corporate real estate team as each understands better the other’s concerns and perspective on real estate.

This paper questions whether carrying out the ‘sale‐and‐leaseback’ of corporate real estate is compatible with achieving the flexibility and cost effectiveness that companies need in the operation of their facilities. It looks at the advantages and disadvantages of sale‐and leaseback transactions and analyses how these compare with achieving wider business planning issues. The paper also reports on new real estate techniques pioneered by corporate real estate partnerships (REPs) transactions in Europe and examines whether this form of outsourcing is more in harmony with the goals of the modern corporate.

Structured sale and leasebacks and corporate property asset outsourcing are often claimed to have benefits that seem to be inconsistent with financial theory. Eight such UK deals are analysed to investigate the impact on corporate value. The results show that impacts are contingent ‐ on the capital structure of the firm, on the use of the capital raised and on market attitudes towards management and the sector. Two apparently similar deals can have quite different outcomes: benefits to shareholders and bondholders cannot be simply assumed.

The purpose of this paper is to review the context, rationale, execution strategies and results of the biggest property sale and leaseback programme Barclays has yet undertaken.

The paper is a review and analysis of Barclays' project documentation plus report and accounts, interviews with key decisionmakers, analysis of external economic and property market data in order to set the strategy choices and results achieved into context.

The sale and leaseback programme released capital and supported business objectives at a material level for Barclays; it achieved sales values that were at cyclical highs; flexibility in execution allowed additional value to be delivered across changing market conditions; a mixed skills team was critical for success.

The paper documents why the sale and leaseback programme made sense for the organisation and what elements were key to success both as a strategy and through execution. It provides a case study for how a large organisation approached a recent and large‐scale sale and leaseback opportunity across a portfolio of 900‐1,000 properties.

This study hypothesises that sale and leaseback (SLB) cap rate is lower than the market cap rate in emerging economies, and the difference is due to institutional cost and vacancy risk. This study aims to provide a novel SLB-Cap-Rate Model to assess the performance of SLB transaction (SLBT).

SLBT data are generally not publicly available in developing countries. This study collected data from 31 SLBTs by conducting semi-structured interviews with stakeholders in Vietnam in 2019. The market cap rates were collected from consultants' reports. The hypotheses are tested by three regression models.

The results show that the SLBT cap rate is significantly less than the market cap rate in Vietnam, and most of the cap rate discount can be explained by institutional and risk factors. This suggests that SLBT helps to reduce search costs for tenants and vacancy risks. It explains why SLBTs are becoming more common in emerging countries.

The study has a strong practical implication for assessing the performance of SLBT for both buyers and sellers. It introduces a novel model for analysing the cap rates and potential risks of SLBT to facilitate property investment decisions.

This paper is one of the studies that contains new knowledge on SLBs in a developing country specifically Vietnam.

Suggests that the sale and leaseback of property provides a way for owner‐occupiers to redistribute capital invested in property with either the release of capital or its reinvestment in a more balanced property portfolio. Outlines a case study which shows how such a programme is carried out. Considers the strategy adopted, method of sale, legal considerations and market influences. Reveals that the degree of market interest reflected the strength of covenant being offered and the perception of an assured investment.

Existing approaches to the financial lease versus purchase decision assume, at least implicitly at the moment of the decision, that purchase entails ownership of the leasable asset over its entire remaining economic life. At any subsequent moment in time, however, if a firm already owns the leasable asset, it can retain long-term use of the asset by deciding to either retain ownership or enter into a sale and leaseback agreement. The purpose of this chapter is to detail the derivation of an innovative, yet intuitive, theoretical approach to analyze a firm's financial lease versus purchase decision in asset markets conducive to future sales and leaseback of owned assets.

Aurelia Dimas had been sent to investigate the various properties being offered by the State of California in the form of a sale-leaseback agreement. The opportunity was perfect for her firm, Orrington Financial Partners, which had recently expanded its fixed-income portfolio to include real estate. The wide range of offerings in the Golden State Portfolio provided both diversification and stability over a period of decades. She had spent the last week walking the halls of each and every building to see the offering first hand. Now the task of valuing the portfolio rested on her shoulders.

By reading and analyzing this case, students will be exposed to real estate valuation and understand the issues with a sale-leaseback investment. The objectives are obtained by requiring students to justify how and why they make adjustments to the cash flow forecasts provided to them by a real estate advisory firm, explain their methodology for arriving at a specific value for a piece (or a portfolio) of commercial property, and debate the pros and cons of a sale-leaseback structure.