Creating liquidity through Sale-and-Leaseback
Sale & leaseback solutions
In economically challenging times or when planning growth investments, companies often face a key question: How can they quickly access liquid funds without taking on new debt? A proven solution is the sale-and-leaseback approach—selling a commercial property and immediately leasing it back. This allows companies to convert tied-up capital from office spaces, warehouses, and industrial properties into liquid funds while continuing operations at their existing location without interruption.
The concept is straightforward: companies that own and operate their commercial properties sell the spaces to an investor. The sale is paired with a contractual agreement to lease the property back long-term. This allows the company to remain on-site while the proceeds from the sale become immediately available.
From analysis to transaction
We guide you through this clearly structured process in multiple steps, ensuring maximum security and efficiency.
First, the current market value of your commercial property is determined by our experienced specialists for the respective asset class. This valuation forms the basis for all subsequent negotiations and ensures that you can offer your property at a market-appropriate price.
This is where specialized advice proves its value. Not every investor is open to sale-and-leaseback, as some are concerned about credit risks or renovation liabilities. Engel & Völkers Commercial has an extensive network of financially strong, long-term investors who specifically seek sale-and-leaseback opportunities. Our experts understand the requirements of both parties and connect the right partners.
In parallel with the purchase agreement, a detailed lease agreement is negotiated. Key points include contract duration, rent level, extension options, maintenance obligations, and, where applicable, pre-emption rights. Lease terms typically span ten years or more, providing both parties with long-term planning security.
Following notarization, the property is transferred. You receive the sale proceeds, which can be used immediately—for investments, debt repayment, or to strengthen your liquidity reserves.
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For small and medium-sized enterprises, sale-and-leaseback is particularly effective when business development or expansion requires significant investment—such as keeping pace with digitalization or implementing automation. Instead of tying up capital in real estate, you can invest it where it generates the highest returns: in your core business.
Economic disruptions, supply chain issues, or seasonal fluctuations can strain cash flow. Sale-and-leaseback provides quick access to funds without the risks and interest costs associated with traditional debt financing.
A higher equity ratio improves your corporate rating and facilitates future financing on more favorable terms. By selling the property and repaying existing liabilities, you streamline your balance sheet and significantly increase your equity ratio.
Real estate assets often play a key role in succession planning, for example through hidden reserves on the balance sheet or potential inheritance tax liabilities. Sale-and-leaseback provides flexible solutions to free up liquidity and ease the burden on successors.
In dynamic real estate markets, sellers of logistics, production, or wholesale properties can particularly benefit from the property’s increasing value. You realize the current market value while simultaneously securing long-term use of the site.
Sale-and-leaseback also offers clear advantages for investors: the buyer acquires a tangible asset with potential for value appreciation and receives predictable, often long-term rental income. Investment risk is reduced, as the tenant is typically an established, creditworthy company already successfully using the property.
Contact us for a confidential consultation. Our on-site specialists will assess your situation and show how to optimally unlock tied-up capital.
Contact
Engel & Völkers Germany
Vancouverstraße 2a
20457 Hamburg, Germany
Tel: +49 40 361310