From the March issue: Companies seeking to free up capital and investors looking for stable sources of income to support commercial acquisitions have unleashed a wave of sale-leaseback deals in an indication that real estate remains a flexible industry adapting to shifting markets. Under pressure to restructure their struggling businesses and raise capital for developing their core assets, firms like Citigroup and Deutsche Bank have turned to sale-leaseback deals to unlock the value of their major assets. In a typical sale-leaseback deal, the tenant sells the building to a real estate investment group or other owner and agrees to lease back the building under a long-term agreement, usually 10 to 15 years.
Growing wave of sale-leasebacks
March 21, 2008 05:08PM
By David Jones
