Sale and Leaseback

Unlock capital while retaining business continuity

A sale and leaseback can be an effective real estate strategy for owner-occupiers seeking to release capital from owned property while continuing to use the premises for their operations. 

By selling a real estate asset and entering into a lease agreement with the new owner, companies can convert property ownership into liquidity. This capital can then be redeployed to support business growth, reduce debt, improve financial flexibility or invest in core operations. 

For many businesses, sale and leaseback can also help reduce exposure to property ownership, simplify balance sheet management and shift selected real estate responsibilities to a specialist investor or landlord. Depending on the structure of the transaction, the new owner may also support maintenance, refurbishment, compliance works or future extensions. 

CBRE Luxembourg helps clients assess whether a sale and leaseback strategy is appropriate by considering the property, market conditions, occupancy requirements, lease terms, investor appetite and wider business objectives. Any transaction should also be reviewed with the company’s accounting, tax, legal and financial advisers. 

When sale and leaseback may be relevant

Sale and leaseback can be considered by companies looking to:

• Release capital tied up in owned real estate
• Retain operational control of the premises they occupy 
• Improve liquidity and financial flexibility
• Reinvest capital into core business activities
• Reduce debt or strengthen the balance sheet
• Transfer selected property management or capital expenditure obligations
• Secure long term occupational certainty through a tailored lease
• Attract institutional, private or specialist real estate investors

A structured process

To support a successful sale and leaseback transaction, CBRE follows a clear and structured process designed to align real estate, financial and operational priorities. 

Our approach includes:

• Assessing your objectives, occupancy needs and decision criteria
• Analysing the property, lease assumptions, balance sheet considerations and operational requirements
• Reviewing current market conditions and investor appetite
• Preparing a clear positioning strategy for the asset
• Identifying and approaching suitable prospective buyers
• Managing the transaction process, negotiations and investor engagement 
• Structuring lease terms that reflect your future business needs 
• Advising on key clauses, including lease duration, renewal options, rent review mechanisms, buy back rights, improvement works or extension possibilities where relevant 
• Coordinating with your legal, tax, accounting and financial advisers throughout the process

By combining Capital Markets expertise, investor relationships and local market knowledge, CBRE helps companies evaluate sale and leaseback opportunities with confidence and structure transactions that support both short term liquidity and long term business continuity.